Ch. 1-8 Flashcards Preview

FL Real Estate > Ch. 1-8 > Flashcards

Flashcards in Ch. 1-8 Deck (92):
1

What are property related functions?

creation/improvements
management
demo
investment ownership
regulation
transfer

2

What % of our economy is directly/indirectly linked to real estate activity?

25%

3

What is property transfer?

transfer permanent ownership by deed, will, inheritance

4

What is needed to know market conditions?

market saturation, how it can be financed, property sales, property value

5

How do you market real estate?

with pricing, relationships with other agents, service buyers and sellers.

6

What is farming?

scouting out one particular geographical area and ultimately specializing in that area.

7

What is a residential property?

home of single family, duplex, triplex, quad or vacant land zoned for <4 units, farm land < 10 acres

8

What is commercial property?

Income producing property >4 units

9

What is industrial property

(usually) manufactures or distributes products

10

What is agricultural property?

> 10 acres

11

Who can be a property manager?

licensed rel estate brokers

12

Fiduciary

Act on behalf of someone

13

What are the property managers duties?

preventative, routine, repair, and construction maintenance

14

How do you asses property value?

appraisal, brokerage price opinion (BPO), comparative market analysis

15

Comparative market analysis

recent home sales, homes on market, listed but not sold homes

16

MLS (multiple listing service)

database of homes >1 year old. Increase seller exposure and buyer options.

17

Assemblage

developer assembles small pieces of land to create one large

18

Subdivision plat map

visual of where each lot and street will go. *must allocate land for public use

19

What are land developer duties?

acquire land, subdivide and develop, plat map and recording, construction

20

What is the new license application process?

apply for assoc RE1 license, RE11 broker applies for assoc, 30 days to notify of any issues and 90 for approval/deny

21

Denial of licensure

Failure to pay, fingerprint, or pass exam. Incorrect application or under investigations

22

Requirements for post license course

required during first license period, 45 class hours with 90% attendance, score 75% or higher

23

When is a license null and void?

If not met requirements within 2 years

24

_______ is the executive branch of FL state government

Dept of Business and Professional Regulation

25

______ operates as consumer protection agency

Dept of Business and Professional Regulation

26

What are the DBPR three areas of enforcement?

1. Div of Professions
2. Div of Regulation
3. Bureau of Education & Testing

27

What are a few components of the Bureau of Education & Testing?

protects he safety & welfare of public by examining and licensing professionals. 5 exec directors, 8 offices, 2 satellite offices.

28

What is the FREC?

FL real estate commission; create rules for taking exams and licenses.

29

Who makes up the FREC?

7 volunteers; 4 licensed brokers (5+ yrs), 1 broker or assoc (2+ yrs), 2 consumers (1 60+ yrs old)

30

What are the actions of the FREC?

make rules that power as laws, publish, educate, investigate, impose disciplinary action, create certificates which hold up in court.

31

What is the administration arm of the FREC

Div of Real Estate

32

What are the services of the Div of Real Estate?

record keeping, examination, legal services, investigation

33

What is the broker license renewal period?

First renewal period: 18-24 mths then every 2 yrs. 60hrs of continuing education

34

What is the assoc license renewal period?

45 hours of post-license education, you are required to complete 14 hours of Florida real estate continuing education during every two-year license period thereafter.

35

What are the two ways your license inactive?

Voluntary: not renewed, paid, or continued ed
Involuntary: imposed by FREC- unpaid renewal fee or renew, incomplete education, works for inactive broker.

36

When is a real estate license effective?

Once notified by the Div of Real Estate

37

Who are the principal, agent, and customer?

p= client
a= broker
c= 3rd party (a prospect not represented by agent)

38

What is a listing agreement

authorizes broker to work for compensation. Governed by contract and agency law

39

Describe agency law

defines roles of all parties, fiduciary duties of agent, and agents scope of authority.

40

What is the broker's relationship act?

(1) Cannot be represented by a dual agency
(2) Disclosure of authorized forms of brokerage representation
(3) Single agents may represent either a buyer or a seller, but not both, in a real estate transaction
(4) Transaction brokers provide a limited form of non-fiduciary representation to a buyer, a seller, or both in a real estate transaction.
It was created to inform and educate the public regarding the types of authorities

41

Caveat Emptor

"Let the buyer beware"

42

Law currently on record is _____?

statutory law

43

Procedures set by precedent from previous cases?

common law

44

What are the 3 types of agency?

1. Universal (handles all delegated business of principal)
2. General (handles multiple transactions. Assoc is general agent)
3. Agency coupled with intrest (when licensee partners in ownership of property and represents partners)

45

What are 3 ways an agency relationship is created?

1. written
2. implied
3. ratification (two people meet, seller agrees to work with agent

46

4 types of agency relationships

1. no brokerage
2. single agent
3. transaction: rep transaction with no fiduciary responsibility
4. designated sales assoc: non-residential transactions

47

The result of failing to disclose

deny app for renewal, probation, suspend, fine up to $1,000,

48

How long must disclosure forms be kept?

5 years and 2 more after legal proceeding

49

What terminates an agency?

purchase/sale complete, listing agreement expired, quit/fired, mutual consent, change in property (zoning,etc), bankruptcy

50

Where do you register office?

with DBPR

51

What are the signage laws for an office?

sign at entrance or adjacent to door, each branch office needs sign, home office applies too: trade name, broker name

52

When do the funds get deposited into escrow?

within 3 days of receipt from the principal.
-10 days to get written verification of receipt of funds when the escrow agent is a title company, attorney, or not selected by seller

53

Who can access escrow account and when?

Only signatory broker and must be reconciled within 30 days of the last reconciliation. Up to $1,000 in each acct of his/her own money.

54

Can broker have an interest bearing escrow acct?

Yes, but name of receiver and date to distribute must be in writing.

55

what book keeping is required for an escrow acct?

Must be reconciled monthly with all deposits noted; deposit slips, books, statements, name(s), outstanding checks, itemized list of broker's liabilities,

56

What do you do when there is a dispute over the return of earnest money?

Broker has 15 days, from demand, to report to FREC. And if broker has good faith doubt then has 30 days to mediate, arbitrate, litigate.

57

What do you do when there is a dispute over the return of earnest money?

Broker has 15 days, from demand, to report to FREC. And if broker has good faith doubt then has 30 days to escrow disbursement order, mediate, arbitrate, litigate. 10 days to notify FREC, once settled.

58

what are the two terms of a refund on a rental property

75% of broker fee back if tenant does not find rental
100% broker fee back if information is inaccurate. Must be requested in 30 days.

59

What is "puffing"?

When a broker gives 'opinion of title' and talks up the property.

60

What types of commission can broker receive?

% of sale
flat fee
both

61

What is the Sherman Anti-trust Act?

Forbids price fixing and dividing broker territories by price or location. Fine can be up to 10yrs in jail or up to $1M in fines.

62

What are the stipulations on "kickbacks"

"ok" from laborer recommendation (i.e. carpet installer), but not a mortgage or title company.

63

What is RESPA?

Real Estate Settlement Procedures Act: Protects consumers against kickbacks and referral fees

64

What is required with broker change of address?

10 days to notify FRECwith DBPR form with address change and names of employees. Failure is ineffective licenses and fine.

65

What are the four types of real estate partnerships?

1. sole propriatership
2. general partnership (assoc cannot be partner)
3. limited partnership (must file with sec of state)
4. corporation

66

What are the sources of the standard ethics code?

1. federal & state legislation
2. state real estate licensing regulation
3. self regulation

67

what are the steps to remedy a complaint of ethics?

1. file with DBPR (FREC concludes guilt)
2. investigate
3. probable cause (30 days to "judge")
4. formal complaint
5. informal hearing
6. formal hearing
7. final order
8. judicial review

68

How long is probation?

90 days starting within 30 days of final order.

69

Civil Rights Act of 1866

discrimination in real estate

70

Civil Rights Act of 1964

discrimination in subsidized housing

71

Federal Fair Housing Act 1968

discrimination in housing against race, religion

72

Housing and Community Development Act of 1974

added discrimination against gender

73

Fed Fair Housing Amendment of 1988

added discrimination against mental or physical handicap

74

"Steering"

leading buyer away from an area

75

"redlining"

Lender outlining an area to avoid

76

"blockbusting"

panic selling

77

what is not covered in the discrimination acts?

age, marital status, and occupation

78

where do discrimination complaints get directed?

Federal district court or HUD

79

Landlord and Tenant Act

1. year to year- 60 days notice to vacate
2. qtr to qtr- 30 days notice to vacate
3. month to month-15 days notice to vacate
4. week to week- 7 days notics

80

What is included in land rights?

surface area, beneath surface, all things permanently attached to Earth.

81

"accretion"

land deposits of soil by water action

82

"errosian"

vearing away of land by flowing water

83

"avulsion"

sudden land loss by natural disaster

84

"alluvial plain"

soil deposited by river

85

"reliction"

increase in land due to receding water

86

What are riparian rights?

water rights for land bordering navigable water (river or stream)

87

What are littoral rights?

Water rights for land bordering a shore (ocean, delta, sea or lake)

88

"annexation"

changes personal (agricultural) property to real i.e. a tree planted

89

"Fructus industriales"

Growing crops are personal property. Crops are transferred as a part of real estate

90

"fructus naturales"

perennials that do not require cultivation are "real property"

91

Real vs. Personal property

Real is land and privileges and personal is readily movable

92

what is the bundle of rights that come with a real estate purchase

sale, use of, lease, encumber (borrow against), exclude (no trespassing signs), will, occupy, cultivate, share, trade, mortgage, dedicate