Real Estate Licensing Flashcards
(125 cards)
1
Q
List Real Estate’s 5 major sales specialties
A
Residential, Commercial, Industrial, Agricultural, Businesses
2
Q
Approximately how much of the United State’s wealth is invested in real estate?
A
75%
3
Q
If an association has more than ten units, or an annual budget greater than $100,000 the manager must hire a…
A
CAM (Community Association Manager)
4
Q
What is the USPAP?
A
The Uniform Standards of Professional Appraisal Practice (USPAP) is a strict guide for appraisers in the performance of their duties.
5
Q
What is a CMA?
A
Comparitive Market Analysis (CMA) will include asking prices of other comparable listed homes, the sale prices of other comparable properties for a likely appraisal value, and the offered price of expired listings to show overpriced homes.
6
Q
What are most real estate associates classified as for tax purposes?
A
1099 - Independent Contractor
7
Q
Standards for houses in a neighborhood regarding style, size, and construction are in the
a. restrictive covenants
b. zoning codes
c. recorded plat map
d. county building code
A
a. restrictive covenants
8
Q
Local Government affects primarily the use and taxation of real estate in areas such as…
A
subdivision plat approval, land use planning, building codes, building permits, zoning codes, and property taxes
9
Q
State Government influences real estate through…
A
coastal setback lines, endangered lands, collection of documentary stamp and intangible taxes on real estate transactions, and regulation of real estate agents, mortgage brokers, title closing agents, contractors, property insurance, and surveyors
10
Q
The Federal Government influences real estate through its monetary and fiscal policies in the…
A
Federal Reserve Board (FRB), Consumer Financial Protection Bureau, Dept of Housing and Urban Dev’t (HUD), Dept of Veterans Affairs,Environmental Protection Agency (EPA), and Internal Revenue Service (IRS)
11
Q
Which Florida Statute covers real estate license law?
A
Florida Statute 475
12
Q
List 4 parts of FL Statute 475
A
Part I - establishes FREC
Part II - establises the FL Real Estate Appraisal Board
Part III - Commercial Real Estate Sales Commission Lien Act
Part IV - Commercial Real Estate Leasing Commission Act
13
Q
What law lays out the rules of the FREC?
A
Chapter 61J2, FL Administrative Code
14
Q
Requirements for Real Estate License Applicants (7)
A
Age (18yo)
Education (High School Diploma)
Background Disclosures (any arrests)
Citizenship (not required to be US Citizen)
Residency (Not required to be FL resident)
Immigrant status
SSN (required)
15
Q
Florida Real Estate Commission is primarily a…
A
Consumer Protection Agency
16
Q
True or False A person who knowingly signs a false affirmation when applying for a license has committed perjury.
A
TRUE
17
Q
An application for a real estate license expires in…
A
two years.
18
Q
Who is exempt from the broker pre-license education requirements?
A
Members of the FL Bar and those with a 4-year degree in Real Estate.
19
Q
A licensee applicant who lives in a state that has mutual recognition agreement with FL must complete which requirements?
A
Pass the 40-question exam on FL laws.
20
Q
What are the eight (8) services a real estate agent provides?
A
advertise real estate services, appraise, auction, buy, exchange, lease, rent, or sell
21
Q
Unlicensed persons who perform one of the eight services of real estate for another person for compensation is guilty of…
A
a 3rd degree felony.
22
Q
Caveat Emptor means…
A
“Buyer Beware”
23
Q
The maximum fine that can be levied by DBPR is…
A
$5,000
24
Q
The Secretary of the DBPR is…
A
appointed by the governor and approved by the Senate.
25
The FREC has the power and duty to...
adopt a seal, foster education, conduct or approve real estate educational courses, enact rules and regulations, inspect and audit, discipline licensees, report criminal violations of Chapter 475 to the State Attorney, and inform the Div. of FL Land Sales, Condominiums, and Mobile Homes when disciplinary action is taken against its licensees.
26
Members of the FREC may serve a maximum of...
two four-year terms.
27
The FREC is comprised of...
4 licensed brokers with 5+ yrs experience, one licensed broker or sales associate with 2+ yrs experience, two members who are not and have never been licensed, and at least one of these 7 members must be 60+ years of age.
28
What are the real estate license expiration/renewal dates?
March 31 or September 30
29
What if your license has been involuntarily inactive for more than 12 months?
Must complete a 28-hour reactivation education course
30
What if you fail to renew your license before the renewal date?
Your license goes to involuntary inactive status and the person has only two years before the license becomes void.
31
Agents perform fudiciary duties for...
the principal/client.
32
Dual Agency
Practice of a broker representing both the buyer and the seller in the same transaction. Florida law prohibits dual agency.
33
The law defines "residential sales" as the sale of...
improved residential property of four units or less, unimproved residential property intended for 4 units or less, and agricultural property of 10 acres or fewer.
34
If a broker wants to establish a brokerage relationship, the three relationships authorized by FL law are...
single agent, transaction broker, and designated sales associate
35
All licensees have three basic duties to customers, regardless of who they represent...
fair and honest dealing, disclosure of known facts that affect property value, and accounting for all funds
36
Florida law presumes licensees are working as...
transaction broker.
37
To have a No Brokerage relationship the licensee must...
give the person a no brokerage relationship notice before showing a property or entering into an agreement for representation.
38
Single Agent duties... (9)
dealing honestly and fairly
loyalty
confidentiality
obedience
full disclosure
accounting for all funds
skill, care, and diligence in the transaction
presenting all offers in a timely manner
disclosing all known fact affecting value
39
Legal requirements for Designated Sales Associate status are that...
non-residential property, buyer and seller sign statement that he/she has assets in excess of $1 million, buyer and seller request this form of representation, give parties designated sales associate notice and a single agent notice.
40
Disclosure documents under the Brokerage Relationship Disclosure Act must be retained by the broker for...
5 years.
41
Broker Office Requirements
Entrance sign, principal office registered with DRE, must be permanent, and have at least one enclosed room
42
In regards to the immediate deposit of funds, "Immediately" means...
by the end of the next business day.
43
Broker must immediately deposit funds into the escrow account. "Immediately" in this context means...
no later than end of 3rd business day after the customer first gave the funds.
44
In situations where a broker has good-faith doubt, or there are conflicting demands on the escrowed funds, broker must give written notice to the FREC within...
15 business days.
45
FREC Settlement Procedures
MEAL (Mediation, Escrow Disbursement Order, Arbitration, and Litigation)
46
8 Steps in the DBPR Disciplinary Process
1. Filing the complaint
2. Investigation
3. Probable Cause
4. Formal complaint
5. Informal proceeding
6. Formal hearing
7. Final Order
8. Judicial Review (appeal)
47
A broker has notified the FREC about conflicting demands for funds in the broker's trust account. If the parties agree, the broker may submit the matter to a nonjudicial procedure that will result in a decision that will be legally binding on all parties, called...
arbitration
48
Which is correct about a brokerage firm that changes its address?
a. Must notify FREC within 5 days
b. Must stop operating until the FREC has been notified of the move.
c. Must notify FREC within 15 days.
d. Must dotify FREC within 30 days.
b. Must stop operating until the FREC has been notified of the move.
49
A notification of noncompliance requires...
the infraction to be corrected within 15 business days.
50
Citations must be...
paid or disputed within 30 days.
51
Falsifying an application for real estate license is...
a third degree felony.
52
The maximum term for suspension is...
10 years.
53
A sales associate works for a broker whose license has just been suspended. The sales associate's license status is...
(involuntary) inactive.
54
Payments from the Real Estate Recovery Fund are a maximum of...
$50,000 from any one transaction
$150,000 from multiple judgments/transactions for one licensee.
55
Brokers who want to form a corporation should consider the income tax effects of this choice
C Corporation
56
Ostensible partnerships are also called
quasi-partnerships
57
A sales associate who leaves the employ of a broker has how long to report this change to DBPR?
10 days
58
Business entities that may be registered as brokerage firms include...
sole proprietorship, general partnerships, limited partnerships, corporations, limited liability companies, and limited liability partnerships.
59
For first-time, minor violations, DBPR will issue...
a notification of noncompliance.
60
Citations require payments of what amount, due in how much time?
$250-$1,000 paid in 30 days
61
Which Act expanded the law to prohibit discrimination in housing based on disability or on family status?
1988 Fair Housing Amendments Act
62
Parking areas should have one accessible space for every ___ total regular parking spaces.
25
63
When is it acceptable for a owner to commingle funds for security deposits/advance rent?
if he/she posts a surety bond w/ the clerk of court for the total amount of the deposits and advanced rents (or $50,000, whichever is less), and pays the tenant 5% annual simple interest. Option is only for owners...not brokers.
64
When a tenant vacates a property, how long does the landlord have to return the security deposit?
15 days
65
If a landlord intends to impose a claim on the deposit, they must notify the tenant in writing within how many days?
30 days
66
67
What is a 'writ of possession'?
document issued by the clerk which allows the Sheriff to evict a tenant.
68
Within how many days must a landlord notify an active military service member who applies for a rental that the application was either approved or denied?
7 days
69
What is the statute of limitations for persons filing a discrimination complaint with HUD?
One year.
70
A ramp is designed to be three feet high. How many total feet of length must the ramp have?
36 feet
71
Definition of real property or real estate.
any interest or estate in land and any interest in business enterprises or business opportunities, including any assignment, leasehold, sublease hold, or mineral right; does not include cemetery lots or mobile homes and mobile home lots.
72
Real Property
Real property is land and improvements on the land. If an item is not real property it is personal property.
73
Personal Property
Personal property usually consists of items having a limited life, and which are easily movable from one place to another. Also called chattel or personality.
74
When a contract doesn't state whether an item is to be considered real property or personal property, and the parties disagree about whether it should be included, sometimes the courts apply these four tests.
IRMA
Intent of Parties
Relationship /agreement
Method of attachment
Adaptability of the item
75
What does IRMA stand for?
Intent of the Parties
Relationship or agreement of the parties
Method of Attachment
Adaptability of the item
76
The three criteria for determining whether an item is a fixture are...
intent, method of attachment, adaptation
77
What is a freehold estate?
Ownership of the land, often called fee, fee simple, and fee simple absolute.
78
What is a voluntary life estate?
A life estate conveys only for the life of the owner. At the owner's death, the property goes either to a remainderman or reverts to the grantor (who would have a "reversion estate".)
79
If a child deeds a home to their parents to live in until their end death, and then the home reverts back into the child's ownership. What type of Estate is this?
Reversion estate
80
Person who benefits from a voluntary life estate that is not set up as a reversion estate is called...
remainderman
81
What are the three types of co-ownership?
Tenancy in common
Joint tenancy
Tenancy by the entireties
82
What is Joint Tenancy?
exists when one or more persons have an undivided interest in a property. When one partner dies, his/her share automatically passes to the other parties on the deed.
83
In order to have Joint Tenancy, all parties on the deed must have...
the same right of possession, the same degree of interest, purchase made at the same time, all parties on the same title (deed), and specific wording on the deed providing survivorship.
84
What is Separate Property?
property owned by a person before marrying, or inherited by a person before marriage.
85
What is a Legal Life Estate?
If the sole owner of a homestead dies without a will (interstate), the spouse is not on the deed and there are children the spouse will receive a Legal Life Estate.
86
What is Tenancy by Entireties?
property ownership by marriage. Neither owns the property. The death of one party makes the spouse the immediate owner of the property through survivorship. If the deceased has willed the property, it will have no effect.
87
Name the three categories of leasehold estates...
tenancy for years
tenancy at will
tenancy at sufferance
88
How are cooperatives organized?
As corporations. Buyers receive stock of ownership and proprietary lease to occupy the property.
89
What is a buyer's right of recision?
Buyers of new coops may cancel within 15 business days. Buyers of resale coop properties have 3 business days to cancel.
90
Private party sellers (resale) must provide these documents to the buyer of a co-op property.
current copy of the articles of incorporation, the bylaws, the rules of the association, and the Q&A sheet.
91
What are Common Elements?
common areas are undivided fractional shares of the structure and land owned by each unit owner. Examples are lobby, swimming pool, elevators, gym, etc.
92
Do condominium buyers have the right of recission after signing a purchase contract?
Yes. 15 days for new construction, 3 days for existing
93
What are the required disclosures for condominium sales?
for developer of condo with 20+ units, they must give buyers: a prospectus and an estimated operating budget.
For private party sellers (resale) they must give buyers the most recent year-end financial reports, rules of the condo assoc., and a governance form describing board of directors and owners' rights.
All must provide: declaration of condo, articles of incorporation, bylaws of condo assoc., and FAQ sheet
94
What are the three types of Timeshare ownership?
Time share estate (get deed)
Time Share license (get lease)
Club membership (rights to reserve)
95
when two parties enter a contract to sell/purchase real estate the seller has _______ title, and the buyer has ________ title until all requirements of the contract are fulfilled.
seller has legal title
buyer has equitable title
96
The bundle of rights that evidence ownership of real property are called the...
title.
97
A transfer of ownership rights is called...
alienation.
98
The person who dies with a will is said to have died...
testate.
99
Name the ways an owner may lose title to real property involuntarily
descent
escheat
eminent domain
adverse possession
100
Descent
When a person dies intestate (no will), FL probate law controls how the property is to be distributed to the heirs.
101
Escheat
When an unmarried person dies intestate without being survived by any relative, the property escheats to the state.
102
Eminent Domain
the power of the government to take private property for public use by paying the owner a fair price.
103
Legal description
a method of describing the exact location of real estate.
104
Surveys provide 4 crucial pieces of information...
Locate boundaries
Develop Legal description
Identify encroachments
Calculate area of the land
105
The term metes refers to
distance
106
What is the maximum number of degrees in a Legal description?
90 degrees
107
The first call of a Legal description is always...
North or South
108
How large is a section of a township?
1 sq. mile,
640 acres
43,560 sq. feet
109
Who is able to prepare deeds, mortgages, promissory notes or other legal documents?
Attorneys
110
If a real estate agent prepares a promissory note for their client, they have...
committed a 3rd degree felony.
111
A contract for illegal purposes is considered...
void.
112
What is an agreement and what must there be?
An agreement is a meeting of the minds. There must be an offer, an acceptance, and communication of the acceptance.
113
Bilateral contracts
requires both parties to perform. Contract for the sale of real estate is a bilateral contract.
114
When may a buyer withdraw their offer?
At any time before the seller accepts it and communicates the acceptance to the buyer.
115
(8) Ways an offer is Terminated
Acceptance
Rejection
Counteroffer
Withdrawal by offeror
Lapse of time
Insanity
Death
Destruction of property
116
(4) Methods of Terminating Contracts
Performance
Impossibility of performance
Rescission
Operation of law
117
When one of the parties to a contract fails to perform as promised, that party has...
breached the contract
118
(4) Legal remedies for breach of contract are...
Rescind the contract
Require specific performance
Sue for compensatory damages
Sue for liquidated damages
119
When may a broker accept an offer for their client?
if they have power of attorney
120
When a listing agreement requires the broker to effect a sale, this means...
the broker must not only find a ready, willing, and able buyer, but the sale must close for the broker to be entitled to a commission.
121
If the listing is in writing, the broker must give the seller a copy within...
24 hours.
122
Normally the seller agrees to pay the broker either a percentage of the sale price or a fixed dollar amount. This type of listing is called...
a Net Listing.
123
124
Speculative (SPEC) Building means
the builder will build a house based on his/her best guess of what buyers will want.
125
