Chapter 1

Question 1

Econimist believe real estate represen

Answer 1

directly and indirectly 25% of US economy

Question 2

The real estate brokeage by deifnition

Answer 2

is that business which brings interested parties together to sell, lease, and rent or exchange real property.

Question 3

Real Estate Farming is

Answer 3

When professionals specialize in one particular geographic area or property type

Question 4

There are six major real estate specialties which are

Answer 4

Residential - in Florida is a family home that is a single family dwelling, a duplex, a triplex (3 units) or a quad (4 units), or vacant land that has been zoned for 4 units or less

Commercial

Industrial property

Agricultural property - ranch or farm land

Business opportunity

Special Purpose property - schools, churches, nursing homes, etc.

Question 5

In Florida, most owners are

Answer 5

Absentee property owners, who own but do not reside

Question 6

Fiduciary means

Answer 6

a person having a duty to act primarily for another’s benefit. It involves duties such as good faith, trust, special confidence and candor.

Question 7

A property management agreement must have

Answer 7

The name and address of the owner
The name and address of the property manager
An address and legal description of the property
The start and end date of the agreement
Specific services to be rendered
Extent of the property managers’ authority
Procedures for reporting on the status of the property
Method and schedule of compensation
Signature of owner
Signature of the property manager

Question 8

Four maintenance type that a property manager must perform

Answer 8

Preventative maintenance - is work done before expensive repair work is needed such as caulking windows and doors, changing furnace filters etc.

Routine maintenance is consists of lawn mowing, cleaning carpets and other day to day cleanup, which keeps the property in order for tenancy

Repair Maintenance involves fixing the broken water heater or dishwasher. A property in disrepair is hard to rent.

Construction Maintenance is a total remodel or addition.

Question 9

The property manager owes to the property owner

Answer 9

honesty
accuracy
disclosure of material facts

Question 10

An appraisal is

Answer 10

is an estimation of value. It is done by appraisers using specific techniques and is done for a variety of reasons including obtaining a loan, obtaining insurance value,

Question 11

An appraiser usually does is what called a

Answer 11

fee base appraisal

Question 12

There are three level of appraisals

Answer 12

Registered Trainee appraiser – must work under guidance of a Certified Residential Appraiser or a Certified General Appraiser;

Certified Residential Appraiser – Appraises residential properties;

Certified General Appraiser – may perform any type of commercial or residential appraisal.

Question 13

Appraisers are regulated by

Answer 13

The Florida Real Estate Appraisal Board (FREAB) is headquartered in Orlando and consists of nine members.

Question 14

Anyone who appraises property must conform to

Answer 14

the USPA (Uniform Standards of Professional Appraisal Practice

Question 15

USPA

Answer 15

Sets the standards to promote and maintain a high level of public trust in professional appraisal practice

Question 16

Broker price opinion is requested

Answer 16

1. From a local expert to collect data and provide it in a specific format to the requesting bank.
2. These opinions may be to determine a quick sale price for a short sale property, a foreclosed property which is to be listed, or a deed in lieu of foreclosure property which has been given to the company by a borrower.

Question 17

When land is prepared to be developed into subdivisions or commercial ventures, there are several steps that a developer must take

Answer 17

land acquisition
subdividing and development
subdivision plat map and recording
construction

Question 18

Assemblage is when

Answer 18

the developer is “repurposing” property for its highest and best use, he may assemble several small pieces of land to create a large piece;

Question 19

The subdivision plat map is

Answer 19

a visual drawing of where each lot and block will be located, as well as streets, parks and utilities. This is submitted to the municipality for consideration. When it is approved, the plat map is recorded in the county where the property is located.

Question 20

Many times as a condition of approval of the plat map, a sub-divider is required

Answer 20

to dedicate a certain portion of land for public use for such things as streets, parks, schools, or green areas. A builder buys the property and establishes subdivision covenants and restriction for use in that subdivision alone. The restrictions are private restrictions. Public restrictions

Question 21

In residential home construction, three types of homes are usually built.

Answer 21

“Spec” homes mean speculation homes, built without having a specific buyer in mind

Tract homes are built to a certain set of guidelines used for a particular subdivision.

A custom home is one that is built for a specific buyer

Question 22

Professional organizations for the Real Estate profession

Answer 22

National Association of REALTORS® (NAR), FloridaREALTORS® (FR), and the local Board (association) of REALTORS®