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56 Cards in this Set
- Front
- Back
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What type of advertising showcases the firm, its services, management and staff? |
Institutional Advertising |
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A complaint is legally sufficient if it contains facts indicating that a violation of any of the following have occured? |
- Florida Statue - Any existing, legally enacted DBPR Rule - Any existing, legally enacted FREC Rule |
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What are the first four steps in a complaint against licensee process? |
1. complaint filed 2. investigation of the complaint 3. probable cause determined 4. formal complaint is issued if probable cause is found |
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When is a licensee placed on automatic suspension? |
When pay out is made by the Recovery Fund (must be paid back in full, plus interest) |
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How many days does a licensee have to accept or reject an alleged violation for a specific citation? |
30 Days |
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What happens if a licensee fails to provide accurate and current rental information when charging a fee? |
First-degree misdemeanor Fine not more than $1,000 and/or up to 1 year in jail. |
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Which brokerage relationship duties include Confidentially Obedience Loyalty Disclosure |
Single Agent |
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How do you calculate inventory turnover ratio? |
Cost of goods divided by ending inventory
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Which accounting method recognizes income when a sale is made & expenses when incurred rather than collecting cash or when paid? |
Accrual basis accounting |
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Which accounting method recognizes income when it actually is received and expenses actually paid? |
Cash basis accounting |
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What are the three catagories of comparable in preparation of CMA? |
Properties - Sold within previous 12 months - current on market -expired during previous 12 months |
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Occupancy cost, salaries, maintenance, furniture rental are all examples of what type of business expense? |
Fixed Expense |
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With regards to the National Do Not Call Registry, violators of the federal may be fined up to how much for each call? |
$11,000
Note: Florida Fine is $10,000 |
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What are the most common services of real estate? |
Appraising Buying Auctioning Renting Selling Advertising Leasing Exchange |
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What are the first 4 steps in the complaint process? DRE |
1. Complaint filed 2. Investigation 3. Probable cause determined 4. Formal Complaint |
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Under the Fair Housing Act, the protected classes are what? |
Race Color Religion Sell National Origin Handicap Family status |
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What are the four Escrow Settlement procedures? |
Mediation (non-binding) Arbitration (binding) Litigation Escrow Disbursement Order |
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What is the requirement for a broker who fails to complete post-license requirement who reverts back to sales associate? |
14 hour CE within 6 months Immediately following expiration of the brokers license |
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What three methods to estimate building cost do appraisers use? |
1. Quantity Survey Method (most detailed) 2. Unit in Place Method (Insurance companies) (cost of materials & labor for each component, ie, driveway, roof, walls) 3. Comparative Unit Method (Multiplies cost per sq ft or cubic ft of recently built comps x sq ft subject)
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Capitalization rate & Value Formula |
NOI divided by Market Value = Cap Rate |
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GIM Formula (Gross Income Multiplier) |
Comparable sales price divided by Annual Gross Income = GIM |
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GRM Formula (Gross Rent Multiplier) |
Comparable sales price divided by Gross Monthly Rent = GRM |
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Accrued Depreciation Formula |
Effective Age divided by Economic Life multiplied by Reproduction or Replacement New Cost equals Accrued Depreciation |
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The appraiser makes any necessary adjustments for financing and conditions of sale first to determine what? |
a normal sale price |
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Market Conditions Adjustments Formula
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Release price minus initial price equals difference in price divide initial sale price equal percentage change divide number of months between sales equal monthly rate of change |
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The value of a property based on a specific use that may not represent the property's maximum use (highest and best use) is its? Example...Florida's Greenbelt Law.
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Value in use |
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A type of value based on a property's current use that does not take into consideration the property's highest and best use is referred to as? |
Value in Use |
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What is the first step in the appraisal process? |
Step#1 Define the Problem rights to be valued, type an definition of value (purpose), legal description of property, effective date of value estimate, conditions |
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Name the four characteristics of value? |
Demand Utility Scarcity Transferability |
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Brokers must retain records for how many years? |
At least 5 years and at least 2 years beyond conclusions of civil action or appellate proceedings |
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A cooperative association is permitted to conduct commercial business and to convey, sell or buy its own property, can it register as a real estate brokerage entity? |
NO |
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A Corporations Sole is what type of business? And can it register as a business brokerage entity? |
Church and NO |
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True or False: A sales associate and broker associate may not be an officer or director in a real estate brokerage corporation? |
True, they may not be an officer or director |
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True or False: Sales associate and broker associates may be shareholders of a real estate brokerage corporation? |
True, they may be stockholders |
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If a Real estate brokerage general partnership only has one active broker and the broker dies, resigns or is removed as a general partner, within how many days must the broker be replaced? |
14 days |
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If the brokerage entity is a partnership, corporation, LLC or LLP the sign must contain what information? |
Name of the firm or corporation (trade name) Name of at least one active broker The words "Licensed Real Estate Broker" or "Lic. Real Estate Broker" |
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Which Fair Housing Act would it be illegal to advertise properties as being for adults only or to indicate a preference for a certain number of children allowed? |
Familial Status |
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Other FHA Loan program that is simular to the 203 (b) FHA Loan insures condominiums mortgages is what section? |
Section 234 (c)
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Other FHA Loan program section 245 helps buyers in what way?
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Insures graduated - payment mortgages for buyers who expect incomes to increase in next 5-10 yrs.
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Current maximum guarantee of VA loan (reminder VA does not make loan, it guarantees)?
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$104,250 Current max guarantee amount (a veteran who has not used any benefit can obtain a VA Loan up to $417,000 ($104,250 ÷ .25 = $417,000) |
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Adjustable-rate Mortgage - The rate changes peridoically, does the margin change?
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No, Interest rates is an adjustable-rate changeing periodically. Rate is determined by adding a margin to reconize index. Index changes, the MARGIN remains the same over the loan. Margins don't change!
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Unless otherwise negociated, who does the day of closing charged to?
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Buyer |
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Documentary stamps on the deed are taxes based on sale price and normally paid by seller. What is the cost of doc stamps on the deed? |
$.70 per $100 (ex...$260,000 (sold price) ÷ 100 = 2,061 (round up) x $.70 = $1,820.70
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Documentary stamps on the note are taxes based on sale based on note amount normally paid by the buyer. How much are doc stamps on the note? |
$.35 per $100 (ex...$208,535 (note amount) ÷ 100 = 2,086 (round up) x $.35 = $730.10
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Stamp taxes on a note are collected on new debt. (never assume or subject to). What is the the tax amount charged?
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$.002 of the note amount. The loan is not rounded. (ex...$208,535 x $.002 is $417.07)
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What is the most common remedy available to a seller when a buyer defaults and seller has entitlement to the earnest money deposit? |
Liquidated damages |
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Ownership by husband and wife, treated as one owner. Survivability, property belongs to the marriage, no valid lien against the marital property. One spouse dies, other owns immediately. |
Tenancy by Entireties |
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Ownership of single, unmarried, divorced or widowed. Owner's death, property is inheritable by will, interstate or decent. |
Sole owner - aka owner in severalty |
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Type of ownership if one party dies, the other owns the property immediately and the property does not become part of estate? |
Joint tenancy with right of survivorship |
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Type of ownership if owner dies, the share is distributed according to will or if no will than state laws. Probate laws take control of estate, paying all rightful debts before estate is distributed to the heirs? |
Tenant in common - inheritability |
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Mortgage provision that requires the lender to look only to the property in case borrower defaults. |
Exculpatory Clause |
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Sets rules for both automatic termination and borrower cancellation of PMI on home mortgages. Does not apply to FHA & VA or lender paid PMI. |
Homeowners Protection Act of 1998 |
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LTV Ratio |
Loan amount ÷ Property Value (price) |
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Loan used to buy, construct or improve homes. Up to$1 million in debt qualifies for home mtg interest reduction__________(amount) if the owner is married and filing separately. |
Home acquisition loan ($500,000) |
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Loan used for any other purpose, qualifying home equity debt is limited to the lesser of what? And is what type of loan? |
$100,000 ($50,000 if married, filing separately) Home Equity Loan |
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Taxpayer Relief Act of 1997 made substantial tax savings available to homeowners. What is the rule? |
Single filer exclude tax on up to $250,000 of gains on principal residence. Married couples filing jointly may exclude up to $500,000. |
