Real Estate Sales Course
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The process of appraising the value of a business is complex.
Appraisal
The process of estimating the value of real estate.
What is the federal governments role in real estate?
1 - Overseeing the financial institutions and consumer safety, 2 - Implementing environmental regulations under the Environmental Protection Agency (EPA) 3 - Maintaining construction standards under the Department of Housing and Urban Development (HUD) 4 - Prohibiting discrimination under the Federal Housing Administration (FHA)
What are the 7 requirements for both brokers and sales associates in the state of Florida?
1. 18 years old 2. HS Diploma 3. Honest, trustworthy, good moral character 4. Disclosures (Convictions, Aliases, Revoked licenses, etc.) 5. US SSN
Raising the professional and ethical standards of real estate licensees is one goal of the:
National Association of Realtors
What do property managers provide that CAMs can not?
Real estate professionals may provide property management services, which means managing aspects of property for absentee owners such as collecting rent, arranging for maintenance, cleaning, and paying operating expenses and taxes.
Subdivision Plat Map
A map that shows the dimensions of all the lots in a planned subdivision and indicates where there will be sidewalks, roads, and other infrastructure and amenities.
Example of individuals who are exempt from licensure?
1. An owner selling his or her own property. 2. A timeshare owner who offers a timeshare period for sale. 3. A full-time graduate student who is enrolled in a FREC-approved degree program may act as an appraiser under the direct supervision of a licensed broker or certified appraiser as part of his or her studies. 4. A person who is acting as an Attorney-in-Fact or Trustee under the power of a trust, will, or court order and other court-appointed individuals. 5. An employee of a public utility, rural electric cooperative, railroad, or state or local government who is involved in the purchase, sale, exchange, auction, or lease of any property that is for use by the employing entity. 6. A person, partnership or corporation, that leases transient property such as vacation rentals, hotels, motels, and lodges. 7. A salaried employer of a registered broker who works onsite in the rental office of an apartment building or community and is only involved in leasing units. 8. A salaried employee who manages a cooperative apartment or condominium complex and who as part of his or her duties leases units, provided the lease is for no more than one year. 9. A property manager or management company may pay a finder's fee for leasing referrals if the fee does not exceed $50. 10. Individuals, corporations, partnerships, and other business entities may sell, exchange, and lease their own property. 11. A person, partnership, corporation or other entity may for compensation sell, offer to sell, advertise for sale, buy, attempt to buy, or negotiate the sale or purchase of a radio, television, or cable enterprise that is licensed by the Federal Communications Act. 12. Someone selling or exchanging cemetery plots. 13. Unlicensed partners performing real estate services in connection with property owned by the partnerships.
For all subsequent 2-year renewal periods following post-licensure education, what must sales associates and brokers complete?
14 hours of continuing education
How long is an initial application valid for after received by the DBPR?
2 years
How many days does the applicant have from the date they receive a denial notice from the FREC to request an appeal hearing?
21 days
How long is the license reactivation course?
28 hours
How many days does the DBPR have to notify an applicant if his or her application contains any errors or ommissions?
30 days
How long must someone live in Florida to qualify as a Florida resident?
4 months during the previous or current year.
What are some exemptions for the 63-hour real estate course?
4-year undergraduate or graduate degrees in real estate and active members of the Florida Bar
How long is a brokers post-licensure training?
60 hours
What score must you get on the 63-hour end-of-course examination?
70% or higher
How long is the brokerage license course?
72-hours
How many days does the DBPR have to approve or deny an application that has been properly completed?
90 days
Owner-Developer
A person or company that owns and develops land, building residential subdivisions, shopping centers, industrial and commercial parks, and so forth.
Special-Purpose Property
A property built for a specific purpose and having unique characteristics.
What is required during continuing education?
A 3-hour core law course, a 3 hour ethics in business practice course, and an additional 8 hours in your specialty area.
What does a real estate broker sales associate do?
A broker sales associate has a broker's license but chooses to work as a sales associate with another broker.
Broker's Price Opinion (BPO)
A broker's or licensed real estate professional's opinion of the value of a property. At least three similar properties are usually used for comparison and these are exempt from USPAP.
What does a real estate broker do?
A licensed real estate broker auctions, sells, exchanges, buys and/or rents property "for another, and for compensation." A broker maintains an office and employs sales associates to support these activities.
What does a real estate sales associate do?
A licensed real estate sales associate performs real estate services under the management or direction of a licensed broker or owner-developer.
Commercial Property
A property which it is expected an income will be derived from the sale of goods and/or services.
Expungement
A record of an alleged crime for which a person was not convicted may be possible through a court order. If granted, the Clerk of Courts, State Attorney, local police department, and the FDLE are ordered to destroy the record and it is as if it never existed.
Multiple Listing Service (MLS)
A software that allows REALTORS® to connect with one another to exchange listing information and agree to shared commissions.
How much of the nation's real GDP is generated by real estate?
About one-third
What statute defines the organizational structure of the Florida Executive Branch of Government?
Chapter 20, F.S.
What are the 10 mutually recognized states?
Alabama, Arkansas, Connecticut, Georgia, Illinois, Kentucky, Mississippi, Nebraska, Rhode Island and West Virginia.
Appraiser
An appraiser completes appraisal reports. State-certified, licensed, and general appraisers are regulated by the Florida Real Estate Appraisal Board (FREAB). Real estate sales associates may appraise property but must not represent themselves as licensed appraisers and must comport with the Appraisal Board's standards (USPAP). To qualify as a real property appraiser in the US, real estate appraisers take the National USPAP Course.
Tom's clients and customers appreciate his expertise in explaining property taxes and the homestead exemption, as well as helping them find financing. Tom is a(n):
An expert in residential real estate.
Follow-up
An important aspect of marketing. Referrals from past customers are an excellent source of future business and are key to maintaining a professional reputation and good relationships.
Absentee Owner
An owner that does not live on or near his or her property and often ask real estate brokers to manage their property in their absence.
Federal-related Transaction
Any real estate-related financial transaction...that the Board or any regulated institution engages in, contracts for, or regulates
Compensation
Anything of value that is paid or received.
How long must brokers be sales associates before taking the 72-hour course?
At least 24 months during the previous 5 years
What Florida Statute ensures that individuals who engage in certain professions are licensed, including those in the real estate profession?
Chapter 455, F.S.
What are the 3 sales related licenses?
Broker Sales Associate Broker Sales Associate
What does "caveat emptor" mean?
Buyer beware
What Florida Statute ensure that agencies regulating businesses (such as FREC and the Florida Division of Real Estate) adopt and adhere to rules disclosing their methods of operation to the public, following a model established by the Administration Commission?
Chapter 120, F.S.
What statute establishes the legal rights and responsibilities of real estate sales associates, brokers, and appraisers?
Chapter 475, F.S.
What chapter sets forth administrative rules developed by the Florida Real Estate Commission following the rulemaking process outlined in Chapter 120?
Chapter 61J2, F.A.C.
What are some sources of financing for real estate proeprties?
Commercial banks, savings and loan associations, credit unions, private mortgage companies, and seller financing
What does CAM stand for?
Community Association Manager
What are 2 alternatives to appraisal that sales associates can perform under the discretion of a broker?
Comparative Market Analysis (CMA) and Broker's Price Opinion (BPO)
Which area of real estate requires the highest degree of expertise? - Appraising - Commercial building sites - CMA reports - Counseling
Counseling
What is the DBPR?
Department of Business and Professional Regulation
When does a sales associate or broker have to complete post-licensure education?
During their first license renewal, 2 years after obtaining the license.
What is the FREC responsible for?
FREC is responsible for: a. Educating members of the profession b. Administering the Florida Real Estate Education & Research Foundation c. Enacting bylaws for its own governance d. Making rules for the practice of real estate e. Deciding questions of real estate practice f. Establishing licensing fees g. Creating a seal to be used on official documents
True or False: BPOs and CMAs are subject to USPAP?
False
True or False: US Citizenship is required to obtain a real estate license.
False
True or False: Applicants must speak English in order to obtain a Florida real estate license.
False, the exam is offered in English and Spanish.
Who regulates licensing and requirements for appraisers in Florida?
Florida Real Estate Appraisal Board (FREAB)
What is the FREC?
Florida Real Estate Commission
What is a dedication?
The developer who creates the subdivision will enhance the area with streets, curbs, sidewalks, and other improvements that are usually dedicated to the local government.
Karen's sales specialty involves the knowledge of regulated land use, environmental considerations, transportation, labor costs and utility charges. Her field of specialty is:
Industrial
What 3 fields of expertise must all real estate professionals have?
Knowledge of property transfer Knowledge of market conditions Knowledge of how to market real estate
What are the 4 phases of development & construction?
Land Acquisition Subdividing and Development Plat Map Submission Construction
What are real estate counselors typically used for?
Large investments, developments, and redevelopments
How long can a license be inactive before having to reactivate?
Licensees who have allowed their licenses to go past the renewal period by 12 months may reactivate their license by taking the CE course. If the lapse is between 12 and 24 months, the license holder is required to take a 28-hour reactivation course.
What is the local governments role in real estate?
Local governments are responsible for taxation, planning, zoning, and building code regulation for real estate improvements. They may also issue occupancy permits for tenants.
What are the 2 services property managers provide?
Managing income & managing expenses
What is farming in real estate?
Many brokers and sales associates work within a certain geographic area and may specialize in a certain type of property. Target marketing involves expertise in locating prospects for these areas.
What are some license fee exemptions?
Military veterans, surviving spouses of military members who died in active duty, and low-income residents are all eligible for waivers.
What does MLO stand for?
Mortgage Loan Officer
What does "nolo contendere" mean?
No contest
What does "prima facie" mean?
On the first appearance
What is the service of analyzing existing or potential projects and providing advice regarding the purchasing of real estate and investment opportunities?
Real Estate Counseling
What are the four parts of Chapter 475, F.S.?
Part 1: concerns real estate brokers, sales associates, schools, and appraisers. Part 2: concerns real estate appraisers and establishes the requirements for licensed and certified appraisers according to federal statute. Part 3: the Commercial Real Estate Sales Commission Lien Act, which gives a broker the right to place liens for earned commission. Part 4: the Commercial Real Estate Leasing Commission Lien Act, which gives a broker the right to place property liens for earned commission related to a brokerage agreement to lease commercial real estate.
What 4 real estate activities require appraising services?
Property Financing Selling a Property Buying a Property Other claims and transfers
What are the five major sales specialties?
Residential, Commercial, Industrial, Agricultural, Business
What are the 3 types of residential cosntruction?
Speculative Homes Tract Homes Custom Homes
USPAP
Standards that set forth the generally recognized standards for appraisers in the United States and was adopted by the US Congress in 1989 to assure that appraisers follow certain ethical and performance standards.
What is the Division of Real Estate?
The Division of Real Estate is housed within the DBPR and protects the public by regulation of real estate and appraisal licensees pursuant to Chapter 475, Florida Statutes. This Division is responsible for the examination, licensing and regulation of individuals, corporations, real estate schools and instructors.
Mutual Recognition Agreement
The FREC recognizes licenses from ten other states with similar licensure requirements. No educational course is required, but the applicant must submit fingerprints, pay a fee, and pass a 40-question state exam. The applicant must also not be a legal Florida resident (per the definition above) when he or she takes the test and must submit a current certification of license history from the state from which they are claiming.
What is the nation's largest trade and professional association?
The National Association of Realtors (NAR)
Who must MLOs and Mortgage Bankers be licensed by?
The Nationwide Multistate Licensing System & Registry (NMLS) as prescribed by the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (the SAFE Act)
Real Estate Brokerage
The business of bringing together buyers and sellers of property.
Adjudication withheld
The defendant consents to the payment of fines and a term of probation in exchange for the state's agreement to withhold adjudication, or to not issue a judicial verdict in the case. Once the term of probation is successfully completed, the court is divested of jurisdiction and there is no adjudication of guilt.
What is the state governments role in real estate?
The state government is responsible for real estate licensing and education of market participants, the transfer of property, and management of protected lands and environmental impacts.
Comparative Market Analysis (CMA)
They research the recent prices of similar properties in the same area, those currently for sale, pending sales, or properties sold in the past 90 days. It is an especially useful tool for determining a listing price for a property and is exempt from USPAP.
Real Estate Services
To appraise, auction, sell, exchange, buy, rent, or offer, attempt or agree to appraise, auction, or negotiate the sale, exchange, purchase, or rental of business enterprises or business opportunities or any real property or any interest in or concerning the same, including mineral rights, for compensation or valuable consideration.
What is the primary purpose of the FREC?
To protect the public
True or False: A real estate broker must hold a sales license in addition to their broker's license?
True
True or False: Anyone who performs real estate services for another and receives compensation must be licensed unless exempted by law.
True
True or False: Applicants must also provide electronic fingerprints from a FDLE-certified Livescan provider.
True
What guidelines must all appraisers follow?
Uniform Standards of Professional Appraisal Practice (USPAP)
When can you refer to yourself as a REALTOR?
When you are an active member of the National Association of Realtors (NAR)
License/registration
While licensed sales associates and brokers are registered with the DBPR, they are referred to as licensed.
Reciprocity
a person holding a license from another state could simply practice real estate in Florida using that state's license. Florida does not have this.
USA Bank contacted Aubrey, a sales associate with Blue Skies Realty, to do a Broker Price Opinion (BPO). The fee for the BPO was small so the bank paid Aubrey directly. This is: - perfectly legal per Chapter 475, F.S. - illegal, since sales associate violated Chapter 475, F.S. - illegal, since broker of ABC Realty has violated Chapter 475, F.S. - allowed under Chapter 475, F.S. because BPO's are paid by a set dollar amount rather than commission.
illegal, since sales associate violated Chapter 475, F.S.
When a sales associate is authorized to negotiate a property sale, he or she has the authority to: - alter the legal instructions provided by their broker's principal. - legally obligate their broker's principal to a real estate contract without proper authorization. - alter the price or conditions of a listed property. - operate as directed by a broker or, in certain cases, under an owner-developer.
operate as directed by a broker or, in certain cases, under an owner-developer.
A property manager generally does all of these except: - renting the property. - collecting rents. - supervising its maintenance. - representation of the tenant
representation of the tenant
What are other real estate associations that Florida agents can be a part of?
the Florida Association of REALTORS and local associations of boards
In the real estate industry, property management has become more popular because of: - a lower demand for commercial properties. - a higher demand for rentals. - the increase in absentee owners. - higher regulations on real estate transactions
the increase in absentee owners
The product that all real estate professionals sell is:
their expert knowledge
A licensed appraiser is compensated for an appraisal:
with a flat fee