Melodee's Highlights Flashcards
(173 cards)
1
Q
The real estate professional brings to the transaction expert knowledge regarding:
A
valuation, marketing and property transfer
2
Q
Being able to discern important differences and properly understand how they translate into value is:
A
valuation
3
Q
Knowing where and how to ___ property is knowledge the licensed professional brings to the transaction.
A
market
4
Q
The overwhelming majority of real estate licensees are involved in:
A
residential brokerage
5
Q
A RESIDENTIAL transaction is defined as:
A
- The sale of any improved residential property of four units or less.
- Unimproved property intended for four units or less.
- Agricultural properties of 10 acres or less.
- Leases with options to purchase all or a portion of improved property of four or less residential units.
- Dispositions of business interests involving property of four or less residential units.
6
Q
Concentrating on one type or style of property or on one particular neighborhood is a practice called:
A
farming
7
Q
The art of estimating the value of real property is called:
A
appraising
8
Q
Appraisers must present a ___ defensible ___ of ___.
A
non-biased, defensible opinion of value
9
Q
Appraisal fees are based on the ___, ___ and ___ involved for completion of the assignment.
A
time, effort and expense
10
Q
Appraisal fees are NOT based on the ___ of the ___.
A
value of the property
11
Q
Appraisals used in a ___ ___ ___ must be prepared in compliance with USPAP by appraisers registered, licensed or certified under Part ___ of F.S. 475.
A
federally related transaction, Part II of F.S. 475
12
Q
A federally related transaction is one in which a loan is made by a federally regulated lending institution with a transaction value greater than $___.
A
$250,000
13
Q
USPAP stands for:
A
Uniform Standards of Professional Appraisal Practice
14
Q
___ ___ ___ can perform an appraisal under the real estate license law if the appraisal is not to be used in a federally related transaction, the transaction value is $___ or less and is prepared in accordance with ___.
A
Real estate licensees, $250,000, USPAP
15
Q
Real estate brokers and sales associates typically prepare CMAs, also known as a:
A
comparative market analysis
16
Q
A ___ may not be referred to as an appraisal.
A
comparative market analysis
17
Q
___ is a highly specialized service and requires a greater level of knowledge and experience than any other facet of the real estate profession.
A
counseling
18
Q
The ___ ___ ___ ___ awards the designation “CPM,” Certified Property Manager.
A
Institute of Real Estate Management (IREM)
19
Q
CPM stands for:
A
Certified Property Manager
20
Q
A developer that acquires a large tract of land and builds a model center from which sales may be made is called:
A
tract building
21
Q
The transfer of ownership of streets and sidewalks from developer to the city or county upon completion of a subdivision is referred to as:
A
dedication
22
Q
___ is when a contractor builds on their own land with the hope of locating a purchaser after construction has completed.
A
speculative building
23
Q
When a contractor is employed to build on an owner’s land to the owner’s specifications, it is called:
A
custom building
24
Q
Zoning, property taxation, building and health codes, and regulations and building moratoriums affecting development are done at the:
A
local level
25
A broker who is working for an employer is said to be an:
agent
26
The Real Estate License Law was officially designed Chapter ___ of the Florida Statutes in ___.
475, 1941
27
Applicants for a Florida real estate license are NOT required to be a ___ of Florida or a ___ of the U.S.
resident, citizen
28
Applicants for a Florida real estate license must be ___ or older, with a ___ education or equivalent.
18, high school
29
Members of the ___ ___ are exempt from taking the 63-hour prelicense course for sales associate.
Florida Bar
30
If an application to take a state examination is denied by the Florida Real Estate Commission, the applicant is allowed ___ days to file for a formal hearing before an ___ ___ ___.
21 days, administrative law judge
31
Sales associates may be licensed under a ___ or ___.
broker or owner-employer (such as a developer)
32
Owner-employers are ___ with the ___ but are NOT licensed.
registered with the DBPR
33
All sales associates, whether active or inactive, must complete a ___-hour post licensing course prior to the expiration date of their ___ ___ ___.
45-hour, initial licensing period
34
Failure to complete the required post licensing course will cause the license to become ___.
void (sorry, start over)
35
Only licensees who have received a 4-year degree in real estate are ___ from taking the ___ ___ ___.
exempt, post licensing course
36
Licensees, whether active or inactive, must complete ___ hours of ___ ___ PRIOR TO renewal during every ___ year license period.
14, continuing education, 2
37
Florida does not have ___ with any other state with regard to real estate licensing.
reciprocity
38
Currently, Florida has ___ ___ agreements with real estate commissions of eight states.
mutual recognition
39
If ___, "He who collects, pays his own debts."
unlicensed
40
The most common services of real estate are (hint: A BAR SALE)
```
Appraising
Buying
Auctioning
Renting
Selling
Advertising Real Estate Services
Leasing
Exchanging
```
41
Persons granted authority under a power of attorney to act for others are known as:
attorneys in fact
42
Persons appointed by a court of law to perform services of real estate are known as:
court appointees
43
Court appointees may perform services of real estate, but only for a ___ or ___, NOT a ___.
fee or salary, NOT a commission
44
The Florida Real Estate License Law requires a sales associate or broker associate to be employed as an ___ of either a broker or owner-employer before performing real estate services for ___.
agent, compensation
45
Sales associates and broker associates both act as a broker's ___ and can only work for ___ broker at a time.
agents, one
46
An ___ is an individual or entity that is in the business of buying, owning and/or developing real estate and is registered with the ___.
owner-developer, DBPR
47
F.S. ___ created the Department of Business and Professional Regulation (DBPR).
455
48
The DBPR is authorized to issue ___ and ___ orders, administer ___, take ___, issue ___ and adopt ___ concerning violations that may be submitted for ___.
cease and desist orders, administer oaths, take depositions, issue subpoenas, and adopt rules
49
The Department does NOT have the authority to ___ ___ against unlicensed person but may seek one from the ___.
issue injunctions, courts
50
For specified offenses by a licensee, the DBPR may issue a ___ ___ ___ or ___.
notice of noncompliance or citation
51
The DBPR DOES have the power to issue a ___ ___ ___ ___ against an UNLICENSED party, and citations may be issued with an administrative fine not to exceed $___ per ___.
cease and desist order, $5000 per offense
52
The DBPR may act as a plaintiff in a ___ ___, in which case a civil penalty of not less than $___ or more than $___ may be imposed.
civil action, $500 or more than $5000
53
There are ___ members on the Florida Real Estate Commission.
seven
54
Members of the FREC are ___ by the ___, subject to confirmation by the ___.
appointed by the Governor, Senate
55
___ members must be actively licensed ___ ___ ___, licensed in Florida for at least ___ years prior to their FREC appointment.
Four members, real estate brokers, 5 years
56
___ member of the FREC may be any actively licensed real estate licensee, licensed in Florida for at least ___ years prior to their appointment.
ONE, 2 years
57
The ___ members of the FREC who cannot hold or ever have held a real estate license are known as ___ ___.
TWO, lay members
58
One member of the Commission must be at least ___ years of age.
60 years of age
59
FREC members are appointed for a ___-year term and may not serve more than ___ consecutive terms.
4-year term, 2 consecutive terms
60
FREC members have ___ ___ number of years they may serve, as long as no more than two terms are consecutive.
no maximum number of years
61
The FREC is an ___ ___, delegated certain powers under F.S. ___.
administrative agency, F.S. 475
62
The publication of books, keeping licensees and the public informed of changes in the law or rules governing real estate and furthering the education of potential and current licensees, as well as investigating complaints falls under the ___ ___ of the FREC.
executive powers
63
The power to make and pass rules regulating the operation of licensees and the real estate profession fall under the FREC's ___ ___.
quasi-legislative powers
64
A ___ vote of the Commission is required enact rules and do not require ___ of any agency or the legislature.
quorum vote, approval
65
Rules enacted by the FREC do not become effective until ___ days after they have been filed with the ___ ___ ___.
20 days, filed with the Secretary of State
66
Licensees may be issued a ___ or ___ ___ of up to $___ per offense, placed on ___, ___ for up to ___ years or permanently ___.
reprimand or administrative fine, $5000 per offense, placed on probation, suspended for up to 10 years or permanently revoked.
67
Upon passing the state examination, an applicant received an ___ license status.
inactive
68
All real estate licenses expire on ___ or ___ of the appropriate year.
March 31st or September 30th
69
A licensee who fails to renew a license at expiration, in OTHER THAN the initial license period, automatically becomes ___ ___ and can remain in this status for ___ years.
involuntarily inactive, 2 years
70
Once the DBPR has received a completed ___ ___, a licensee becomes active and may begin performing services of real estate for compensation.
transaction form
71
An individual that does not request renewal, pay the required fees or maintain their continuing education requirements will ___ be placed in an ___ ___ status.
automatically, involuntarily inactive
72
Inactive real estate licensees ___ legally perform or be compensated for real estate services.
CANNOT
73
A sales associate or broker associate may have only ___ registered employer at a time.
ONE
74
One owner-developer with affiliated organizations providing real estate services in different geographic locations requires a ___ ___.
group license
75
A broker can be issued additional licenses in two or more capacities by requesting ___ ___.
multiple licenses
76
___ law is enforced by ___ ___.
Statutory law is enforced by criminal courts.
77
A ___ agent is authorized by the employer to perform a ___ ___.
special agent, single act
REMEMBER: one transaction. S.A. can do an S.A.
78
Sales associates and broker associates are always ___ agents of their broker.
general
79
A ___ agent is authorized to act for and represent the ___ in ___ ___, without limitation, generally authorized by power of attorney.
universal agent, principal in ALL MATTERS.
REMEMBER: universALL.
80
A real estate sales associate is a ___ ___ of the broker and automatically becomes a ___ of all the broker's principals.
general agent, subagent
81
A transaction broker provides ___ ___ to a buyer, a seller or both.
limited representation
82
Anyone not represented in a single agency relationship is a ___.
customer
83
A ___ ___ is a broker who represents, as a fiduciary, either the buyer or seller but NOT both in the same transaction.
single agent
84
A ___ is the party with whom a real estate broker has entered in a single agent relationship.
principal
REMEMBER: principal is represented, customer is not.
85
A consent to ___ to ___ ___ is the ONLY brokerage relationship form that MUST be ___.
transition to transaction broker, signed
86
A ___ ___ ___ notice must be described and disclosed IN WRITING ___ showing a property.
no brokerage relationship notice, before showing a property
87
A broker is presumed to be acting as a ___ ___ unless a single agency or no brokerage relationship has been established by a written agreement with a customer.
transaction broker
88
A transaction broker has a duty not to discuss ___, ___, ____ or other information that may harm a party's bargaining position.
price, motivation, terms
89
An ___ ___ is created when a broker accepts employment under a single agency agreement.
agency relationship
90
As an agent of the principal, a broker is obligated to obtain the ___ ___ and ___ possible for that principal.
best price and terms
91
The ___ ___ relationship is the ONLY one that establishes a ___ relationship and requires the principal's ___ and ___.
single agency, fiduciary, trust and confidence
92
If an agent breaches fiduciary duties owed to their principal, the principal can bring ___ ___ against the agent for ___.
civil action against the agent for damages
93
The only duties owned to a customer with a no brokerage relationship are dealing ___ and ___, ___ all known facts, and accounting for all ___ entrusted to the licensee.
honesty and fairly, disclosing all known facts, and accounting for all funds
94
A broker has a duty to transmit ___ and ___ offers to the employer including oral offers or offers made without a binder deposit.
any and all
95
Failure to present any offer may be considered ___ or ___ ___ ___ and could result in disciplinary action against the broker.
concealment or breach of trust
96
A broker earns a right to compensation by ___.
performance
97
___ + ___ + ___ = compensation
employment, performance, active and valid license
98
An out-of-state or foreign BROKER may be paid a referral fee or commission, but may NOT ___ in the transaction in any manner.
participate
99
The terms "caveat emptor" and "buyer beware" are synonymous with an ___ ___ relationship.
arm's length
NOTE: Licensees may NEVER deal with anyone at arm's length since the law requires the fair and honest treatment of all persons.
100
A licensee assigned by a broker to act as a single agent of a buyer or seller in a nonresidential transaction is title a ___ ___ ___.
designated sales associate
101
Planning has the four basic goals of creating an optimal ___ and ___ environment, reducing the cost of ___ both in the ___ and ___, allowing the ___ number of properties to achieve their ___ and ___ use, and to prevent ___ ___ ___ by limiting the potential encroachment of ___ ___.
social and economic environment / growth both in the present and future / maximum number / highest and best use / losses in value / incompatible uses
102
The review and approval of sites plans, signs and subdivision plans falls under the authority of:
the planning commission
REMEMBER: "I sighted a sub with a sign!"
103
A ___ study examines trends over the past 20 or 30 years and the path of development and movement of people over time.
population study
104
Soil types and the load-bearing capacity of the land are studied through a ___ study.
physiographic
105
A study of local business activity is called an:
economic base analysis
106
Basic industries or businesses are also called ___.
export
107
___ ___ is an attempt to zone by the criteria of preventing low-income or minority land users from buying in a certain area and is illegal.
exclusionary zoning
108
Residential zoning is based on ___.
density
109
___ limits the number of dwelling units allowed per acre.
density
110
A request for ___ is a request to differ from specific or literal interpretation from the ordinance.
variance
EXAMPLE: Minimum of 7500 square feet to develop. Owner only has 7400 but can apply and most likely receive a variance allowing construction.
111
A variance may be granted when an ordinance imposes an ___ ___ on an owner.
undue hardship
112
A ___ ___ is a request to depart from the use provide for by the zoning ordinance.
special exception
EXAMPLE: A church in a residential neighborhood
113
A ___ ___ predates current zoning and typically is granted legal permission to continue as such – termed as grandfathering.
nonconforming use
114
___ ___ establish standards under which buildings must be designed and constructed.
building codes
115
PUD stands for:
planned unit developments
116
Planned unit developments are also known as ___ ___.
cluster zoning
117
PUDs must include a portion of land reserved for ___ ___ usage.
common area
118
To compensate developers for serving land for common use, PUDs can include smaller than normal lots or "___ ___ ___" and patio homes to be built.
zero lot line
119
A buyer must be given a copy of the ___ ___ ___ form prior to purchasing a property located within a PUD.
Homeowner's Association Disclosure form
120
The restriction that does not allow a building permit to be issued until adequate infrastructure is provided is a requirement of the ___ ___.
concurrency rules
121
Zoning is derived from governmental authority originating from ___ ___.
police powers
122
The four factors of production are (Hint: CELL)
capital, entrepreneurial ability, land, labor
REMEMBER: You've gotta have the money, wanna be in the business, find the land then the people to build on it
123
The demand for real estate relates to (Hint: PIC POC)
price, income, credit, population, consumer preferences
124
When there are more buyers than sellers, a ___ market exists.
sellers' market
125
When there are more sellers than buyers, a ___ market exists.
buyers' market
126
When the vacancy ratio is about 5%, ___ and ___ in the residential market are thought to be reasonably in balance.
supply and demand
127
___ and ___ are inversely related.
price and demand
128
Demand will typically increase as prices ___.
rise
129
The availability of ___ is said to be the barometer of the real estate market.
credit
130
Each parcel of land is ___ or ___ in some way from all others.
unique or different
131
Real estate is not a ___ product. It is ___.
homogenous, heterogenous
132
Compared to other markets, real estate is ___ and ___.
unorganized and inefficient
133
The real estate market is ___ in nature.
local
134
Situs means:
"customer preference" or "fixed as to location (latin)" or "Where do you prefer to be seated? SIT US there, please."
EXAMPLE: a principal that MUST live in that neighborhood because of the good schools within it.
135
Combining two or more parcels of real estate under the ownership of one party is known as:
assemblage
REMEMBER: assemblage is combining. plottage value is the combined value of that combination if its value is greater
136
If combined parcels of real estate have a greater value together than they did as separate parcels, the increase in value is known as:
plottage value
137
Improvements to land are relatively ___.
permanent
138
The real estate market is ___ to ___ to changes in supply and/or demand.
slow to respond
139
Highest and best use of a parcel is met by four criteria: use must be ___ permissible, ___ possibly, ___ feasible and maximally ___.
legally permissible
physically possible
financially feasible
maximally productive
140
An economic term used to identify value resulting from the location of a parcel of land is:
situs
141
Physically, real estate is characterized as being ___, ___ and ___.
indestructible, immobile and heterogenous
142
Real estate taxes are ___ ___ taxes, which means "___ ___ ___".
ad valorem, "according to value"
143
The estimate of value determined by the county property appraiser is called the ___ ___ and must be based on the concept of ___ ___.
assessed value, based on the concept of just value
NOTE: just value means the "fair value"
144
Owners can protest a property assessment by requesting an ___ conference with the ___ ___ ___.
informal conference, with the county property appraiser
145
Qualifying properties can be entitled to a homestead tax exemption of up to $___.
$50,000
146
To qualify for the homestead tax exemption, one must own the property AND be a ___ on or before ___ 1st and file before ___ 1st each year.
resident, January 1st and file between that and March 1st EACH year.
147
The property must be the owner's ___ ___ to qualify for homestead tax exemption.
primary residence
148
The assessed value of homestead property is limited as to the amount of increase the county property appraiser may assign to the lesser of ___% or the percentage change in the ___ ___ ___.
3% or the percentage change in the Consumer Price Index (CPI).`
149
As of 2009, the annual cap on non-homestead properties is ___%.
10%
150
Property owned by churches and nonprofit organizations receive a ___ ___ ___ from payment of property taxes.
100 percent exemption
151
Property owned by local, state and federal governments are ___ and ___ assessed for subject to taxation when used to provide government services.
immune and not assessed
NOTE: Government owned buildings that are leased to private businesses ARE subject to real estate taxes.
152
___ ___ are tax levies to pay for specific public improvements that add value to the property.
special assessments
EXAMPLES: paving a street, central water or sewer connection, street lighting, etc.
153
If the property owner does not pay property taxes before ___ 1st of the year following the assessment, the taxes become ___.
April 1st, delinquent
154
Real estate property taxes are ___ as an expense when calculating federal income taxes for homeowners who file itemized returns.
dedutible
155
Taxpayers can deduct ___ interest paid for acquiring, constructing or substantially improving a principal or secondary residence.
mortgage
156
Married couples who have owned and use the principal residence for a least ___ of the previous ___ years prior to sale may exclude up to $___ of gain on the sale from taxation.
2 of the previous 5 years, $500,000 of gain
157
The maximum rate of interest on a tax certificate is ___%.
18%
158
Agricultural properties are limited in assessed value as a result of ___ ___.
greenbelt laws
159
Entries on closing statements are identified as ___ and ___.
debits and credits
160
Closing statements reflect the financial relationship of the seller and buyer as of the moment of closing, and is only valid on the ___ of ___.
day of closing
161
Rent is usually paid in ___.
advance
162
The seller is ___ for the amount of rent that applies to the buyer's period of ownership.
debited
163
___ is the amount actually paid in a real estate transaction.
price
164
The four elements that interact to create or affect the value of real estate are (HINT: DUST)
demand, utility, scarcity and transferability
165
___ value is the amount remaining after all assets of a business have been sold in a hurried but not forced sale and all liabilities have been paid.
liquidation
NOTE: can also be used to estimate the minimum value of a profitable business
166
The principle of ___ recognizes that no one would pay more for a property than the amount necessary to acquire an acceptable substitute.
principle of substitution
NOTE: If the buyer can pay less and get the same, he will!
167
The principle of ___ focuses on the affect of changes in supply and demand.
competition
168
The principle of ___ applies when a higher-priced property is constructed in an area of lower-priced properties.
regression
169
The principle of ___ applies when a lower-priced property is built in an area of more expensive property.
progression
NOTE: The lower-priced property PROGRESSES in value TOWARDS the level of the more expensive properties.
170
The principles of ___ and ___ tend to create price conformity within an area.
progression and regression
171
The three categories of depreciation are: ___, ___ and ___.
physical deterioration, functional obsolescence, and external obsolescence
172
___ obsolescence is considered to be incurable.
external
173
The income capital approach is based on the appraisal principles of ___ and ___.
substitution and anticipation
NOTE: Future income is converted into a present value
