Chapter Star Highlights Flashcards
Farming
A form of marketing where a licensee Specializes in a particular
neighborhood or type of property to increase their chances of success.
what is the value of a business
The Value of a business is known as GOING CONCERN VALUE. (Includes Income, Tangible and intangible Assets, Goodwill (reputation on) plus and real estate property)-
Requirements for License:
Have a Social Security #, Be 18 year of age or older, Have a high school diploma or GED. An applicant does NOT need to be a U.S. Citizen nor be a Florida Resident (the applicant may have residency in another state and apply to have a Florida non-resident license.
Broker Licensing Requirements:
Have an active sales associate license for 24
months in the past 5 years and successfully pass the state test for 72 hourpre-licensing course.
Pre-licensed requirements for sales associates
63 hour course
Pass 70% or higher
Course completion certificate
State exam
Pass75% or higher 
Broker associate employment
Broker associate. An applicant for a broker license may choose to continue employment and a sales associate capacity with the current employer, subsequent to passing the state broker examination. If so, the applicant will be registered as a broker associate after passing the broker examination. 
Application, denial
If an application to take the state exam is denied by the department the applicant will be notified in writing. The notification identified the reasons for denial and advised the applicant that they have 21 days from the date of receipt to request a formal hearing before an administrative law, judge in accordance with FS 120 the administrative procedure act 
Does an owner – developer need to be licensed and registered?
Oh no developers are only registered
One of the Individuals who are exempt from licensure
Attorneys in fact, are persons who are granted authority, and a power of attorney to act for others, in some capacity, such as sign in documents
Powers of the department (DBPR)
The department does not have the authority to issue injunctions against unlicensed persons, but may seek injunction from the courts for failure to follow a department order 
Who is in charge and can exercise the executive powers in the florida real estate commission?
The commission’s specific powers include The executive powers, it can be exercised by the chairperson acting alone, or can be delegated by quorum vote to any other commission member 
What happens to a licensee who is found guilty of a violation?
A licensee who is found to be guilty of a violation may receive one of the following disciplinary actions, be issued a reprimand or an administrative fine up to 5000 per offense, be placed on probation or have their license suspended for up to 10 years or permanently revoked F.S 475 
What should a licensee do at his first renewal?
For the first renewal, following an initial license, licensees must renew by completing the post licensing requirements prior to the expiration of the initial license. Failure to do so will result in a null and void license status.
What is special agent?
A special agent is authorized under an agency law by the employer to perform a single act. The employment contract between the employer and agent establishes the limit of authority granted.
What is a principal
A principal is the party with whom the real estate licensee has entered into a single agent relationship. A customer becomes the principal wants a single agency relationship has been established. 
Presenting offers
A broker has a duty to transmit any and all offers to the employer, including oral offers or offers made with without a binder deposit. Failure to present an offer could be consideredconcealment or a breach of trust, and could result in disciplinary action against the broker. 
Special agent - principal and client
An agency relationship is created when a broker accepts employment and their a single agency agreement. A broker may represent a seller or a buyer. Any attempt to represent both parties in the transaction would create an illegal dual agency. F. S. 475.
In a single agency relationship, the employer becomes the principal who authorizes the broker as an agent to perform certain services on their behalf 
What are the principl’s responsibilities in an agency relationship?
The principal in an agency relationship, whether they are a buyer, or seller may be responsible for the actions and statements of a licensee who is registered with the broker, while acting on their behalf. For example, if a licensee, who is acting as an agent of the broker, makes a statement about a sellers property the seller(principal) could inevitably be responsible for those actions or statements
What are principal office requirements for brokerage?
Each active broker is required to open and maintain an office, which must be registered with the department of business and professional regulation. The office must consist of at least one enclosed room in a building of stationary construction where negotiations and the closing of real estate transactions can be conducted with privacy.
What is the requirement to reopen a brokerage branch?
If a branch office is closed, and then later, reopened in the same location during the same 2 year license. A reissue of the license may be requested without the need to pay an additional fee.
Are post dated checks acceptable?
Post dated checks are considered to be promissory notes and can be accepted as earnest money with the sellers approval
Where should escrow account be held?
Escrow account must be held in a title company, banking institution credit union or savings and loan association account that is located and doing business in Florida
When should a broker report a escrow dispute to the commission?
If a broker receives conflict and demand for escrow funds, or if the broker has good faith, doubt as to which person is entitled to the escrow property, the broker must give written notification to the commission within 15 business days from the date of the last parties demand
What is brokers commission?
Brokers are entitled to compensation for professional services, when they have performed that which they were employed to perform
Is a broker entitled to a commission when they find a buyer and makes an offer in accordance with the terms of the listing agreement?
When a broker is employed to find a purchaser that are entitled to compensation, when ready, willing and able buyer has met all the sellers requirements. This is accomplished when the buyer makes an offer in accordance with the terms of the listing agreement, whether or not a sale is consummated.
What is RESPA?
Real Estate Settlement Procedures Act (RESPA): A federal law that requires that borrowers be informed of all settlement costs involved in the purchase of a home when funds are obtained from a federally regulated lender. The lender must provide the Loan Estimate disclosure no later that 3 days following the loan application , the lender is required to disclose any change in interest rate or the cost before closing. Note:
Servicing Disclosure Statement is NOT part of RESPA
Who is liable for a sales associates compensation?
A sales associate, who is not compensated as agreed upon by their employer, may not file suit against anyone, other than the employer
Real estate brokerage partnership requirements
Each partner who provides real estate services to the public, either directly or indirectly, must hold an active brokers license. A sales associate or broker associate cannot be a partner in a real estate broker partnership.
What is a joint venture?
A joint venture or joint adventure is similar to a partnership and some respects. The participants at a joint venture are jointly and severally liable. However, a joint venture is a temporary business that involves a single transaction or predetermined number of transactions. Since their relationship is temporary, the participants cannot bind one another to any new transactions. Joint venture can be formed either orally or in writing. No documents must be filed with the secretary of state to create a joint venture.
What should be included in the name of a corporation for profit?
The corporate name must include the word corporation, Company, Inc., or the abbreviation Corp. Inc., Or co. No business is allowed to use the word company in its name unless it is formed legally as a corporation or unless the words not inc are added. 
How should a real estate brokerage corporation be formed?
The corporation, and the names of all the officers and directors of the corporation must be registered. At least one corporate officer must have an active real estate brokers license. 
What is a sole proprietorship?
A sole proprietorship is a business formed by an individual. The individual is personally liable for their actions and can be suit individually. asole proprietor is also liable for the acts of their employees when the acts are within the scope of the employee’s employment. 
a sole proprietor, can buy and sell real estate for using their own business.
real estate is held in the personal name of the sole proprietor 
