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Flashcards in Melodee's Highlights Deck (173):
1

The real estate professional brings to the transaction expert knowledge regarding:

valuation, marketing and property transfer

2

Being able to discern important differences and properly understand how they translate into value is:

valuation

3

Knowing where and how to ___ property is knowledge the licensed professional brings to the transaction.

market

4

The overwhelming majority of real estate licensees are involved in:

residential brokerage

5

A RESIDENTIAL transaction is defined as:

1. The sale of any improved residential property of four units or less.
2. Unimproved property intended for four units or less.
3. Agricultural properties of 10 acres or less.
4. Leases with options to purchase all or a portion of improved property of four or less residential units.
5. Dispositions of business interests involving property of four or less residential units.

6

Concentrating on one type or style of property or on one particular neighborhood is a practice called:

farming

7

The art of estimating the value of real property is called:

appraising

8

Appraisers must present a ___ defensible ___ of ___.

non-biased, defensible opinion of value

9

Appraisal fees are based on the ___, ___ and ___ involved for completion of the assignment.

time, effort and expense

10

Appraisal fees are NOT based on the ___ of the ___.

value of the property

11

Appraisals used in a ___ ___ ___ must be prepared in compliance with USPAP by appraisers registered, licensed or certified under Part ___ of F.S. 475.

federally related transaction, Part II of F.S. 475

12

A federally related transaction is one in which a loan is made by a federally regulated lending institution with a transaction value greater than $___.

$250,000

13

USPAP stands for:

Uniform Standards of Professional Appraisal Practice

14

___ ___ ___ 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 ___.

Real estate licensees, $250,000, USPAP

15

Real estate brokers and sales associates typically prepare CMAs, also known as a:

comparative market analysis

16

A ___ may not be referred to as an appraisal.

comparative market analysis

17

___ is a highly specialized service and requires a greater level of knowledge and experience than any other facet of the real estate profession.

counseling

18

The ___ ___ ___ ___ awards the designation "CPM," Certified Property Manager.

Institute of Real Estate Management (IREM)

19

CPM stands for:

Certified Property Manager

20

A developer that acquires a large tract of land and builds a model center from which sales may be made is called:

tract building

21

The transfer of ownership of streets and sidewalks from developer to the city or county upon completion of a subdivision is referred to as:

dedication

22

___ is when a contractor builds on their own land with the hope of locating a purchaser after construction has completed.

speculative building

23

When a contractor is employed to build on an owner's land to the owner's specifications, it is called:

custom building

24

Zoning, property taxation, building and health codes, and regulations and building moratoriums affecting development are done at the:

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

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