Test 1 Flashcards
(110 cards)
1
Q
Can a real estate licensee conduct appraisals on a federally related or backed transaction?
A
NO
Real estate licensees may NOT conduct appraisals on a federally related or backed transaction.
2
Q
Does an applicant for a Florida sales associate have to be a citizen or a resident of Florida?
A
NO
An applicant for a Florida sales associate license does NOThave to be a citizen or a resident of Florida.
3
Q
Is a student with a four-year degree in real estate exempt from a pre-licensing course?
A
YES
Someone who has a four-year degree in real estate is exempt from the pre-license course.
4
Q
What happens if a sales associate does not complete the 45 hour post-license course prior to the first renewal?
A
IT WILL BE VOIDED
If a sale associate does not complete the 45 hour post-license course prior to the first renewal, the sales associate’s license would be void.
5
Q
What happens if an applicant lies on a licensure application?
A
DENIED
An applicant for licensure will most likely be denied a license if the applicant lied on the license application.
6
Q
A sales associate perform acts of real estate under whose direction?
A
BROKER
A sales associate performs acts of real estae under the direction of a real estate broker.
7
Q
What age must an applicant be, in order to be considered for licensure.
A
18
If an applicant is 18 years of age, the applicant will be considered for licensure.
8
Q
One FREC member must be at least what age?
A
60
At least one member of the FREC must be at least 60 years of age.
9
Q
The FREC has how many members?
A
7
The Florida Real Estate Commission (FREC) has seven members.
10
Q
A licensee is considered a __________ __________ if hired for one specific transaction like finding a home for a buyer or finding a home for a seller.
A
SPECIAL AGENT
A licensee is considered a SPECIAL AGENT if hired for one specific transaction like finding a home for a buyer or finding a home for a seller.
11
Q
T/F
An agent discloses his agency duties to a principal or customer in a residential transaction.
A
TRUE
An agent would disclose his agency duties to a principal or customer in a residential transaction.
12
Q
Is the duty of compassion a single agent’s fiduciary duty to a principal?
A
NO
The duty of compassion is NOT a single agent’s fiduciary duty to a principal.
13
Q
T/F
An agency disclosure is required on 10 acres or less of land.
A
TRUE
An agency disclosure is required on 10 acres or less of land.
14
Q
Does the duty of confidentiality apply to finance terms agreed to by the parties to the transaction?
A
NO
The duty of confidentiality does NOT apply to finance terms agreed to by the parties to the transaction?
15
Q
Dual Agency
A
To prevent dual agency, a single agent for a seller would have to refer a potential buyer of the agent’s listing to an agent of another firm.
16
Q
If a potential buyer walks into an open house of a single angent and wants to put an offer on the house, the single agent would have to give the buyer what type of disclosure?
A
NO BROKERAGE RELATIONSHIP DISCLOSURE
If a potential buyer walks into an open house of a single angent and wants to put an offer on the house, the single agent would have to give the buyer a No Brokerage Relationship disclosure.
17
Q
What type of location is required for the brokerage firm?
A
The brokerage must be located in a fixed location, NOT in an RV or boat.
18
Q
If a brokerage is only dissemenating information and not transacting business as a location, what would the location be considered as?
A
TEMPORARY SHELTER and NOT a branch office.
As long as you are not transacting business as a location and only disseminating information, the location is considered to be temporary shelter and not a branch office.
19
Q
What is it called when a brokerage does not not add their name to the advertisements?
A
BLIND AD
All advertisements must contain the name of the brokerage. Otherwise, it will be cosidered a BLIND AD.
20
Q
What must all team advertising display in their ads?
A
BROKERAGE NAME
All team advertising must display the name of the name of the BROKERAGE in the ad.
21
Q
Are post-dated checks legal in Florida?
A
YES THEY ARE LEGAL
Post-dated checks ARE LEGAL in Florida and can be accepted if the seller is agreeable.
22
Q
Brokers may have ____________ escrow account(s) where sales deposits and rental deposits may be depositedas long as the broker does not have more than $____________ of the brokers own money in the account.
A
JUST 1 ACCOUNT / $5000
Brokers may have JUST 1 ACCLUONT escrow account(s) where sales deposits and rental deposits may be depositedas long as the broker does not have more than $5000 of the brokers own money in the account.
23
Q
An owner of real property may prepare their own deed in a sale as long as they have _____________ _____________ in the real property.
A
OWNERSHIP INTERST
An owner of real property may prepare their own deed in a sale as long as they have OWNERSHIP INTERST in the real property.
24
Q
T/F
A real estate licensee may receive legal kickbacks as long as the kickback is disclosed to all parties to the transaction.
A
TRUE
A real estate licensee may receive legal kickbacks as long as the kickback is disclosed to all parties to the transaction.
25
If a real estate licensee is not concerned with liability and is looking for ease of creating a business entity, a licensee would consider a ___________ ____________.
SOLE PROPRIETORSHIP
If a real estate licensee is not concerned with liability and is looking for ease of creating a business entity, a licensee would consider a sole propritorship.
26
A _______ ________ is a temporary arrangement between brokers looking to work together to make money.
JOINT VENTURE
A JOINT VENTURE is a temporary arrangement between brokers looking to work together to make money.
27
T/F
Real estate sales associates may advertise real estate services in their own names.
FALSE MAY NOT
Real estate sales associates may NOT advertise real estate services in their own names.
28
T/F
Adding the name of a sales associate or broker associate is required to be placed on the office sign.
FALSE IS NOT
Adding the name of a sales associate or broker associate IS NOT required to be placed on the office sign.
29
What is the DBPR
DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION
30
What happens if the DBPR issued an applicant a license by mistake?
REVOKE
If the DBPR issued an applicant a license by mistake, they would revoke the license without prejudice which means the revocation will not be permanent. All the applicant will have to do is pass the state exam to get their license back.
31
What happens if the DBPR revokes a license due to disciplinary action?
If the DBPR revokes a license due to disciplinary action, the revocation will be permanent, and the previous licensee will never be able to get a license again.
32
What notice is issued by an investigator on-site for a first-time minor violation, such as the office sign missing the words "Licensed Real Estate Broker."
NONCOMPLIANCE
A notice of NONCOMPLIANCE is issued by an investigator on-site for a first-time minor violation, such as the office sign missing the words "Licensed Real Estate Broker."
33
Is a single-family home sold by an owner who resides in the home covered under Fair Housing?
NO
A single-family property sold by an owner who resides in the home is not covered under Fair Housing
34
Is blockbusting legal or illegal?
ILLEGAL
Blockbusting encourages panic selling in a neighborhood and is ILLEGAL.
35
Jones v. Mayer
The Jones v. Mayer court case made the prohibition of racial discrimination applicable to public and private real estate transactions.
36
Are lot sales by individuals covered by the Interstate Land Sales Full Disclosure Act?
NO
Lot sales by individuals are not covered by the Interstate Land Sales Full Disclosure Act, and the individual lot buyer is not entitled to a property report.
37
What are the bundle of legal rights?
Remember D E E P C
D - DISPOSITION
E - ENJOYMENT
E - EXCLUSION
P - POSSESSION
C - CONTROL
The bundle of legal rights include disposition,enjoyment, exclusion, possession, and control.
38
Which right, from the bundle of leagal rights, allows an owner to sell or give away property?
DISPOSITION
The right of disposition allows an owner to sell or give away property.
39
What must a tenant do if they wish to keep their trade fixtures?
If a tenant wishes to keep their trade fixtures, they must remove the trade fixtures prior to the expiration of the lease.
40
A tenancy at sufferance occurs when...
A tenancy at sufferance occurs when a tenant had a valid lease, and the lease expired, and the tenant remained in possesion of the property and didn't pay rent to the owner.
41
T/F
Mandatory membership in a homeowners' associate does not require a homeowners' association disclosure.
FALSE
Mandatory homeowners' association REQUIRES a homeowners' association disclosure.
42
What is a fee simple estate?
Land owned in fee simple is owned completely, without any limitations or conditions.
43
T/F
A fee simple estate is an ownership estate.
TRUE
A fee simpl estate is an ownership estate.
44
How many business days does a buyer have to review the condiminium documents if buying from a developer?
15 DAYS
The buyer will have 15 business days to review the condiminium documents if buing from a developer.
45
When the water in a lake evaporates during a drought, the uncovered land belongs to the land owner. What is this called?
RELICTION
When the water in a lake evaporates during a drought, the uncovered land belongs to the land owner. This is called RELICTION
46
When someone cuts down a large tree on their property, they are changing real property into personal property by ____________.
SEVERENCE
When someone cuts down a large tree on their property, they are changing real property into personal property by SEVERENCE.
47
Recording a document into the public records requires a(n) ____________ which verifies that the grantor is acting freely with no undue pressure.
ACKNOWLEDGMENT
Recording a document into the public records requires an ACKNOWLEDGMENT which verifies that the grantor is acting freely with no undue pressure.
48
What is the purpose of insuring the title against defects?
Insuring the title against defects protect the property from unforseen issues concerning the title at a future date.
49
To aquire property by ___________ ____________, one must pay the property taxes for seven consecutive years.
Adverse Possesion
To acquire property by Adverse Possesion, one must pay the property taxes for seven consecutive years.
50
What are the first items paid at a foreclosure?
SPECIAL ASSESSMENTS AND REAL ESTATE TAXES
SPECIAL ASSESSMENTS AND REAL ESTATE TAXES are the first items paid at a foreclosure.
51
For a property to transfer to a buyer, the seller must sign the ________.
DEED
For a property to transfer to a buyer, the seller must sign the DEED.
52
An owner can transfer an ownership interest by using a __________ _________.
QUITCLAIM DEED
An owner can transfer an ownership interest by using a QUITCLAIM DEED.
53
Owners of retail shops usually use what type of lease?
PERCENTAGE LEASE
Owners of retail shops usually use a percentage lease.
54
Parcels of land are numbered on a tax map, which is basesd on a recorded plat map. What are these numbers called?
PARCEL ID NUMBERS
Parcels of land are numbered on a tax map, which is based on a recorded plat map. These numbers are called PARCEL ID NUMBERS.
55
LEGAL DESCRIPTIONS
PRACTICE THE DIAGRAMS UNIT 10
56
How many feet are in an acre?
43,560
There are 43,560 feet in one acre of land.
57
How may acres are worked with when dealing with legal descriptions?
640
640 acres are the base number to work with when dealing with land descriptions.
58
Diagram repersents 30 acres.
To solve this problem, you would write out the legal description below. You always start with the smallest square and work your way out to the largest square.
SE1/4 of the SE1/4 of the NE1/4 and N1/2 of the NE1/4 of the SE1/4 is how would you write this out. This describes two seperate parcels that you must add together.
Here is the math
(+)
640 ac ÷ 4 ÷ 4 ÷ 4 = 10 ac and 640 ac ÷ 2 ÷ 4 ÷ 4 = 20 ac
10 ac + 20 ac = 30 ac
59
A surveyor always starts at the point of beginning and ends at the __________?
POINT OF BEGINNING
A surveyor always starts at the point of beginning and ends at the POINT OF BEGINNING.
60
This legal description describes how many square feet of land?
N 1/2 of the NW 1/4 of the NW 1/4
1. 640 ac ÷ 2 ÷ 4 ÷ 4 = 20 ac
2. Now convert acres to square feet
20 ac x 43,650 sq ft = 871,200 sq ft of land
61
A plat map is recorded in the county courthouse under the ___________ name by book and page number.
SUBDIVISION
A plat map is recorded in the county courthouse under the SUBDIVISION name by book and page number.
62
Could an agent be charged with fraud for telling a buyer that no land development will occur behind property knowing that it is a lie?
YES
An agent who tells a bbuyer that no development will occur behind property knowing that this is a lie COULD BE CHARGED WITH FRAUD.
63
T/F
A broker who does not know what the agents are doing can not be charged with culpible negligence.
FALSE
A broker who does not know what the agents are doing COULD BE CHARGED with culpable negligence.
64
The phrase "Love and Affection" in a contract is not considered Valuable Consideration. The phrase would be considered _________ __________.
GOOD CONSIDERATION
The phrase "Love and Affection" in a contract is not considered Valuable Consideration. Tha phrase would be considered GOOD CONSIDERATION.
65
Consideration is legally understood to be part of a...
VALID CONTRACT
Consideration is legally understood to be part of a VALID CONTRACT because it shows that both parties acknowledge and agree to the terms of the contract.
65
Consideration is legally understood to be part of a...
VALID CONTRACT
Consideration is legally understood to be part of a VALID CONTRACT because it shows that both parties acknowledge and agree to the terms of the contract.
66
An ________ contract allows one party the option to buy. The party is not required to buy.
OPTION
An OPTION contract allows one party the option to buy. The party is not required to buy.
67
Exclusive Agency Agreement
An Exclusive Agency Agreement allows the seller to sell the property without having to pay a commission if the seller finds the buyer. The seller can only list with one broker, and if the broker finds the buyer, the seller would owe the broker a commission.
68
What happens to the buyers earnest money deposit if the seller does not accept an offer.
THE BUYER GETS THEIR EARNEST MONEY DEPOSIT BACK
If a seller does not accept an offer, the buyer is entitled to GET THEIR EARNEST MONEY DEPOSIT BACK.
69
Are real estate agents required to disclose the presence of environmental hazzards to buyers?
YES
Real estate agents must to disclose the presence of environmental hazzards to buyers.
70
Could lead-base paint, on the exterior of a home, contaminate the soil around a home over the years?
YES
Over the years, lead-based paint on the exterior of a home COULD CONTAMINATE the soil around the home.
71
What must be included in the contract for it to be considered valid?
The SALES PRICE must be incuded in a contract for it to be considered valid.
72
Implied Contract
An IMPLIED CONTRACT is created by the actions of the perties. A real estate agent and a For Sale Buy Owner (FSBO) seller could have created an implied contract where the agent feels the seller owes the agent a commission even though no written document specifies this.
73
The _________ __________ __________ specifies that certain contracts must be in writing and signed to be enforcable in a court of law.
STATUTE OF FRAUDS
The STATUTE OF FRAUDS specifies that certain contracts must be in writing and signed to be enforcable in an court of law.
74
T/F
A buyer buying a property subject to an encumbrance like an existing mortgage is not liable to repay the mortgage if there is a default.
TRUE
A buyer buying a property subject to an encumbrance like an existing mortgage is not liable to repay the mortgage if there is a default.
The previous owner who originally took out the loan is the only one liable in case of a default when the new buyer buys the property subject to the existing mortgage.
75
The ______________ ______________ in a mortgage allows a lender to accelerate all of the remaining payments due and payable when a borrower is in default.
ACCELERATION CLAUSE
The ACCELERATION CLAUSE in a mortgage allows a lender to accelerate all of the remaining payments due and payable when a borrower is in default.
76
A homeowner owns a home with a market value of $375,500. The homeowner's loan has a balance of $225,000. The home is listed for $390,000.
What is the homeowner's equity?
A homeowner owns a home with a market value of $375,500. The homeowner's loan has a balance of $225,000. The home is listed for $390,000.
What is the homeowner's equity?
~ Market Value - Loan Balance = Equity
~ $390,000 - $225,000 = $150,500
77
A home was purchased with a down payment of $80,500 and a loan of $250,000 at a rate of 3% for a term of 30 years. Monthly payments are $1,074.
What is the LTV?
A home was purchased with a down payment of $80,500 and a loan of $250,000 at a rate of 3% for a term of 30 years. Monthly payments are $1,074.
What is the LTV?
LA/Value = LTV
$250,000 / ($250,000 + $80,500) = .76 or 76%
78
When a new lender is purchasing a loan from the original lender, the new lender gets an ______________ certificate from the original lender that shows the loan balance, the rate, and the remaiining term of the loan.
ESTOPPEL
When a new lender is purchasing a loan from the original lender, the new lender gets an ESTOPPEL certificate from the original lender that shows the loan balance, the rate, and the remaiining term of the loan.
79
One discount point is equal to _____ % of the loan ammount. Two discount points are equal to _____ % of the loan ammount. Each discount point is equal to _____ % of the loan amount.
1%
2%
1%
One discount point is equal to 1% of the loan ammount. Two discount points are equal to 2% of the loan ammount. Each discount point is equal to 1% of the loan amount.
80
Does the due on a sale clause prevent a new buyer from assuming a loan or buying the property subject to the mortgage?
YES
The due on a sale clause prevents a new buyer from assuming a loan or buying the property subject to the mortgage.
The current loan must be paid off at closing, and the new buyer must get a new loan unless paying cash for the property.
81
If a borrower is in default, have they breached the mortgage contract?
YES
If a borrower is in default, then they have breached the mortgage contract?
82
Can a deed in lieu of foreclosure prevent a foreclosure?
YES IF THE LENDER ACCEPTS IT
A deed in lieu of foreclosure can prevent forclosure if the lender accepts the deed in lieu.
83
If an elderly person who needs additional income may be a good fit for a _________ annuity mortgage.
What age must the person be?
REVERSE ANNUITY MORTGAGE 62 years old
An elderly person, 62 or older, who needs additional income may be a good fit for a REVERSE ANNUITY MORTGAGE .
84
A lender's profit's from interest are protect by what clause within the note?
LOCK-IN-CLAUSE
A lender's profit's from interest are protect by a LOCK-IN-CLAUSE in a note.
85
ECOA
Equal Credit Opportunity Act
The ECOA is like Fair Housing for the lending industry.
86
Can a lender ask a borrower if they are divorced, if they plan on having children in the future, or if they receive alimony?
NO NOT WHATS RECEIVED - ONLY WHATS PAID OUT
The ECOA, which is like Fair Housing for the lending industry, DOES NOT allow a lender to ask if the borrower is divorced, or whether children are planned for the future, or whether alimony is received, but the lender can ask whether the borrower pays child support since that is considered a debt that could affect the loan qualification.
87
A lender must provide a loan estimate to a borrower who has signed a loan application within _________ business days.
3
A lender must provide a loan estimate to a borrower who has signed a loan application within 3 business days.
88
Seller X prepaid a year's property taxes for the home that buyer Z is purchasing from her. The closing date is August 15.
How many days are in the prepaid period (that is, the period for which the seller already paid but will not own the property)? Use the 365-day method.
4 MONTHS and 17 DAYS
Seller X prepaid a year's property taxes for the home that buyer Z is purchasing from her. The closing date is August 15.
How many days are in the prepaid period (that is, the period for which the seller already paid but will not own the property)? Use the 365-day method.
~Prepaid is the day of closing forward in time
~Sept + Oct + Nov + Dec is 4 months + (August 15 through Augist 31) 17 days
~The answer would be 4 MONTHS and 17 DAYS
89
The sale of property A will close on September 14, but the owner has already collected rent for the entire month. The rent for this property is $875 per month. Thus, the seller owes the buyer how much rent? Use the 365-day method to solve.
$495.83
The sale of property A will close on September 14, but the owner has already collected rent for the entire month. The rent for this property is $875 per month. Thus, the seller owes the buyer how much rent? Use the 365-day method to solve.
~#days x rent ÷ days in month
~Rent is prepaid - count day of closing through the last day of September
~17 days x $875 rent ÷ 30 days in month of September = $495.83
90
The sale of property C will close on January 20. The month's total interest is $725, and the seller owes interest for January 1 through January 20. What dollar amount will be debited from the seller at closing? For this calculation, do not find a yearly amount; instead, use the monthly interest amount to find the daily rate (and use the exact number of days in the month).
$444.35
The sale of property C will close on January 20. The month's total interest is $725, and the seller owes interest for January 1 through January 20. What dollar amount will be debited from the seller at closing? For this calculation, do not find a yearly amount; instead, use the monthly interest amount to find the daily rate (and use the exact number of days in the month).
~# days x interest ÷ days in the month
~ 19 x $725 ÷ 31 days (in January) = $444.35
91
If a seller owes money at closing, will their debits be more than their credits?
YES
If a seller owes money at closing, then their debits ARE MORE than their credits.
92
On the closing disclosure, the buyer's total debits are $135,860.32, and their total credits are $15,615.00.
Based on these numbers the buyer will owe $________________.
$120,245.32
On the closing disclosure, the buyer's total debits are $135,860.32, and their total credits are $15,615.00.
~ Based on these numbers the buyer will owe $120,245.32.
~ $135,860.32 - $15,615.00 = $120,245.32
93
A purchaser is buying a home for $255,625 and assuming a second mortgage of $15,650 from the seller. The purchaser is getting a new first mortgage of $200,125.
What are the total transfer taxes due to the state?
$2,945.80
A purchaser is buying a home for $255,625 and assuming a second mortgage of $15,650 from the seller. The purchaser is getting a new first mortgage of $200,125.
What are the total transfer taxes due to the state?
ꟷ S SP x .007 = Deed tax on Sales Price (Must round up to next even hundred)
• $255,700 x .007 = $1,789.90
ꟷ I LA x .002 = $400.25
• $200,125 x .002 = $400.25
ꟷ N LA x .0035 = Documentary Note Tax on New loans (must round up to next even hundred if it is not already even hundred)
• $200,200 x .0035 = $700.70
ꟷ N LA x .0035 = Documentary Note Tax on Assumed loans (must round up to next even hundred if it is not already even hundred)
• $15,700 x .0035 = $54.95
ꟷ Add total from each part to find transfer taxes due to state
•$1,789.90 + $400.25 + $700.70 + $54.95 = $2,945.80
94
Situs is the term that refers to people's preferences for a certain location due to a number of factors, including...
WEATHER , JOB OPPORTUNITIES, AND TRANSPORTATION .
Situs is the term that refers to people's preferences for a certain location due to a number of factors, including WEATHER CONDITIONS, JOB OPPORTUNITIES, AND TRANSPORTATION FACILITIES.
95
An appraiser is using the cost-depreciaition approach to estimate the value of a home that has 1,750 sq ft. The reproduction cost new is $40 per sq ft. The site is valued at $40,000. The home is 12 years old with an effective age of 9 years and has an estimated economic life of 30 years. What is the value of the property?
TOTAL VALUE $89,000
An appraiser is using the cost-depreciaition approach to estimate the value of a home that has 1,750 sq ft. The reproduction cost new is $40 per sq ft. The site is valued at $40,000. The home is 12 years old with an effective age of 9 years and has an estimated economic life of 30 years. What is the value of the property?
• Cost ꟷ Depreciation + Land Value = Total Value
• Cost 1,750 sq ft x $40 sq ft = $70,000
• ꟷDepreciation (Effective Age÷Economic life x Cost)
9 ÷ 30 x $70,000 = $21,000 (-$21,000, because it is depreciation it is a negative)
• + Land Value $40,000
• = Total Value $89,000
96
To use as comparables in preparing a comparitive market analysis, an appraiser selects three properties that sold within the last 12 months. The subject property has 1,700 sq ft, no pool, and a one-car garage. Comparable Property A has 1,700 sq ft, no pool, a one-car garage and sold for $110,000. Comparable Property B has 1,800 sq ft, a swimming pool, a one-car garage, and sold for $100,000. Comparable Property C has 1,700 sq ft, no pool, a two-car garage, and sold for $105,000. What is the value of the subject property if the adjusted sale prices of the comparable properties are averaged instead of reconciled?
$100,500
To use as comparables in preparing a comparitive market analysis, an appraiser selects three properties that sold within the last 12 months. The subject property has 1,700 sq ft, no pool, and a one-car garage. Comparable Property A has 1,700 sq ft, no pool, a one-car garage and sold for $110,000. Comparable Property B has 1,800 sq ft, a swimming pool, a one-car garage, and sold for $100,000. Comparable Property C has 1,700 sq ft, no pool, a two-car garage, and sold for $105,000. What is the value of the subject property if the adjusted sale prices of the comparable properties are averaged instead of reconciled?
Assume that the value contribution for additional sq ft is $35 per sq ft, that the swimming pool is valued at $6,000, and each additional car garage unit is $4,000.
• A has no adjustments -Adj value = $110,000
• B $100,000 - $3,500 for SF - $6,000 for pool = $90,500
• C $105,000 -$4,000 for pool = $101,000
•$110,000 + $90,500 + $101,000 = $301,500
• $301,500 ÷ 3 comps = $100,500
97
Suppose you are appraising a 15-year-old building that has an estimated economic life of 40 years with an effective age of five years. The estimated reproduction cost is $35,000. What is the total accrued depreciation for this building?
$4,375
÷ •
Suppose you are appraising a 15-year-old building that has an estimated economic life of 40 years with an effective age of five years. The estimated reproduction cost is $35,000. What is the total accrued depreciation for this building?
• Depreciation = Effective Age ÷ Economic Life x Cost
• Depreciation = 5 ÷ 40 x $35,000 = $4,375
98
What is the Cost Approach formula?
COST APPROACH FORMULA; Cost ꟷDepreciation + Lnd Value = Total Value of the property.
Multiple questions require knowledge of this formula!
99
The Principle of Substitution
The Principle of Substitution states that a person will pay only as much for a property as he or she would pay to acquire a comparable property.
100
A single-family property sold for $315,500. The residential investment property earns a monthly rental income of $2,225. What is the property's GRM?
$141.80
A single-family property sold for $315,500. The residential investment property earns a monthly rental income of $2,225. What is the property's GRM?
• Gross Rent Multiplier (GRM) = Sales Price (SP) ÷ Rent
• $315,500 (SP) ÷ $2,225 (Rent) = (GRM) $141.80
101
Factors that influence appreciation (an increase in a home's value) include...
Factors that influence appreciation (an increase in a home's value) include supply and demand, location, and interst rates.
102
When interest rates rise, property values _________.
When interest rates rise, property values FALL and vice versa, if interest rates fall, property values rise.
103
An individual over the age of ________could qualify for an additional exemption of up to $_______________, depending on the county.
65, $50,000
An individual over the age of 65 could qualify for an additional exemption of up to $50,000, depending on the county.
104
For an owner to keep their property after a tax certificate has been issued, the owner would have to pay the __________ of the certificate plus any ____________.
FACE AMOUNT, ACCRUED INTEREST
For an owner to keep their property after a tax certificate has been issued, the owner would have to pay the FACE AMOUNT of the certificate plus any ACCRUED INTEREST.
105
County tax accessors value Owner X's property ar $250,000. If the real estate tax rate is 2.75%, what will Owner X's tax bill be for the year?
$6,875
County tax accessors value Owner X's property ar $250,000. If the real estate tax rate is 2.75%, what will Owner X's tax bill be for the year?
•$250,000 x 2.75% = $6,875
106
Planned Unit Developments (PUD's) have the follwing characteristics:
Planned Unit Developments (PUD's) have the follwing characteristics:
• The number of units is higher than that allowed for in a single-family zoning.
•Most of the units are considered multi-family.
•Units are usually clustered with green spaces in between.
•MOST PUDSs DO NOT INCLUDE INDUSTRIAL SPACE.
107
How many feet are in a linear mile?
5,280 linear ft
108
How many acres in a section of land?
640 acres in a section of land
109
State Transfer Taxes
In Florida, when ownership of property is transferred, three state taxes apply:
Documentary stamp tax on deeds
Documentary stamp tax on notes
Intangible tax on mortgages
Remember that Taxes are a SINN.
What are the tax percentages for each
The following might help you remember the formulas for calculating the state transfer taxes. Remember that Taxes are a SINN.
*State documentary stamp tax on deed = Sales Price X .007 Seller Pays
Tax is .006 if in Miami Dade.
Intangible tax on New Loans = Loan amount X .002 Buyer Pays
*Note documentary stamp tax on New Loans = Loan amount X .0035 Buyer Pays
*Note documentary stamp tax on Assumed = Loans Loan amount X .0035 Buyer Pays
*Round up the S and N (sales price or loan amount) if not an even 100, i.e., 101,201 rounds up to 101,300
