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129 Cards in this Set
- Front
- Back
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Who are multiple licenses issued to? |
A broker who qualifies as the broker for more than one business entity |
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What is blockbusting? |
To use the entry or rumor of entry of a protected class in a neighborhood to persuade owners to sell |
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What is a fudiciary relationship? |
Acts in a position of trust and confidence
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How long do licensees have to accept or reject a citation?
How must objections be filed? |
- 30 days
- written |
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What is stipulation? |
Agreement as to the facts of the case and penalties reached between the attorneys for DRE and licensees or licensees attorney |
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what is the writ of supersedeas"? |
an order issued by a court that supercedes the action of the commission and allows licensee to continue to practice until the case can be heard on appeal |
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what is administrative law? |
body of law created by administrative agencies in the form of rules, regulations, orders, and decisions |
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what is common law? |
also called unwritten law--it is a law based on usage, general acceptance, and custom |
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what is statutory law? |
written statues enacted by the legislature |
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who are exempt from license |
- salaried employees - government employees - court appointed persons |
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What is redlining? |
To deny loans or insurance coverage by a lender or insurer that present different terms or conditions for homes in certain neighborhoods |
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when is a license null and void? |
- when it is voluntarily inactive for more than 2 years
- when it is revoked due to discipline |
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when is a group license issued? |
to sales associates or broker associates who are registered under an owner developer |
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what is a citation? |
fines by the DBPR for minor violations in an investigation (fines range from $100-$500 per offense)
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when is a complaint considered "legally sufficient ?" |
when it violates:
- a Florida statue - any existing legally enforced DBPR Rule - any existing legally enforced FREC Rule
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What is DRE?
What are they responsible for? |
Division of Real Estate
Responsible for investigating functions related to real estate |
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What is an ostensible partnership? |
The conduct of two or more persons creating the appearance that a partnership exists
It is fraudulent and subject to license suspension |
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What is a special agent? |
an agent authorized by the principal to handle only a specific transaction or to perform only a specific act |
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what is a general agent? |
An agent authorized by the principal to perform acts associated with the continued operations of a particular job or a certain business of the principal
(All sales associates are general agents) |
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what is a universal agent? |
one authorized by the principal to perform all acts that the principal can personally perform and that may be lawfully delegated to another |
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what is "dealing at arm's length?" |
when people with adverse interests conduct negotiations on their own behalf without trusting the others fairness or integrity |
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what is steering? |
to channel homeseekers to or away from particular neighborhoods because they are members of a protected class |
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can the DBPR issue a subpoena? |
Yes |
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If a real estate agent sells a house to a customer, how long does he have to follow up? |
cannot be more than 18 months |
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when are the reporting deadlines for sales associates to turn in money to the broker? |
by the end of the next business day |
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how many members are in FREC? |
7 members (2 unlicensed and 1 over 60) |
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when are the reporting deadlines for the broker to deposit the funds in escrow account after receiving from buyer? |
broker has until the end of the 3rd business day
The clock starts beginning on the day the sales associate is required to deliver the funds to the broker |
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what is a spec home? |
a home a contractor builds without a buyer |
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Define residential real estate |
4-4-10 Rule -The sale of improved residential property for use as 4 or fewer units
- The same of unimproved residential property for use of 4 or fewer units
-The sale of agricultural property of 10 or fewer acres
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can the DBPR issue a temporary real estate license to a spouse of an active duty member of the armed forces assigned to duty in Florida?
When does it expire? |
Yes
It expires 6 months after the date of issue |
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What is a blind ad? |
An ad that has no brokerage name |
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active real estate brokers must display an official sign on either the exterior or interior of the entrance to their principal office and all branch offices. What must he sign contain? |
- Trade name (if any) - Broker's full name - Licensed Real Estate Broker or Lic. Real Estate Broker |
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Does a tenant at an apartment complex need a license if they are paid a referral fee of no more than $50? |
No |
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What items are NOT material facts and do not have to be disclosed per Florida Statute? |
- Homicide - Suicide - Death |
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what information does an open house advertisement need? |
the whole name |
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if a licensee has committed a crime, how long do they have to report to the DBPR? |
30 days |
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how many continuing education points are FREC meetings? |
3 points |
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What is a CMA? |
Comparative Market Analysis |
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What is a BPO?
Who can perform it? |
Broker's Price Opinion
Florida Real Estate Licensees |
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what procedures must be used when a deposit is placed with a title company? |
- the real estate licensee who prepared or presented the sale contract on the purchase and sale agreement must indicate the name, address, and phone number of the title company - licensees broker must request written verification of receipt of deposit w/I 10 days - w/I 10 days after the date the broker made the written verification of deposit, the broker must provide sellers broker with a copy of the written verification of deposit |
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what is conversion? |
a licensees personal use or misuse of client's money |
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can a broker reopen a branch office in the same location during the same license period by requesting a reissue of the branch office license without paying an additional fee? |
Yes |
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how many days should the DBPR be notified when: - a crime is committed by licensee? - licensee moves out of state? - licensee has an address change? |
- 30 days - 60 days - 10 days |
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what is a corporation sole?
can they register as a real estate broker? |
church
no |
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what are the 3 basic options licensees have in all real estate transactions concerning the role the real estate brokerage firm will assume for buyers and sellers? (hint: NAT-Options) |
- No brokerage relationship
- A Single Agent Relationship
- Transaction broker relationship
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what are the 3 types of agency relationships by the extent of authority delegated to an agent in general business dealings? (hint: UGS Agent) |
- Universal Agent
- General Agent
- Special Agent |
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What are the 3 bodies of government? (hint: JEL Govt) |
- Judicial
- Executive
- Legal |
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What are the 3 types of law of agency? (hint: CAS laws) |
- Common law
- Administrative Law
- Statutory Law |
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what is land? |
surface of the earth and everything attached to it by nature such as trees and lake |
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what is real estate? |
refers to the land and all improvements permanently attached to the land (i.e. human made things such as homes, fences, streets, sewers) |
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what is real property? |
all real estate plus the legal bundle of rights (legal interest, rights, and privileges associated) inherent in the ownership of real estate |
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who is a remainderman? |
occurs when property goes to a 3rd party |
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what are protections and benefits to the homestead? |
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what is a leasehold estate? |
tenancy which is an interest in real property that a tenant possesses for a fixed term
(also called nonfreehold estate) |
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what is tenancy at sufferance? |
occurs when a tenant stays in possession of the property beyond the ending date of a legal tenancy without the consent of the landlord
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what is the right of survivorship in tenancy in common? |
no right of survivorship for co-owner ..the heirs inherit
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what is the right of survivorship in tenancy in entireties? |
has right of survivorship-spouse inherits (marriage) |
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what is the right of survivorship in joint tenancy? |
has right of survivorship - goes to remaining coowner, not the heirs |
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what is the percentage of interest in tenancy in common? |
equal or unequal interest |
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what is the percentage of interest in joint tenancy? |
50/50 |
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what is the percentage of interest in tenancy of entirities? |
100/100 |
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what are the types of concurrent ownership? |
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what must the condominium of disclosure contain when buying a condo? |
must have:
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what is alienation? |
the act of transferring ownership, title or and interest in real property from one person to another |
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what is escheat? |
provides for government, normally a state government to take the property of an owner who dies intestate (without a will) and without any known heirs entitled to receive the property |
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what is constructive notice? |
putting in public record |
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what are the 2 types of title insurance? |
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who has to sign the deed? |
a seller and 2 witnesses |
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what is in the premises section of a deed |
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to be effective remember that a deed has to have what? |
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what is the covenant of seisen? |
a promise that the grantor owns the property and has the right to convey the title |
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what are the 3 unique covenants of a general warranty deed? |
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what is a general warranty deed? |
contains all the covenants and warranties available to give the grantee every possible future guarantee to title protection |
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what is a gross lease? |
the tenant (lessee) pays a fixed rent and the landlord (lessor) pays all expenses associated with the property, including taxes, utilities, insurance, and repairs |
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what is a triple net lease? |
used in commercial real estate indicating the tenant is assuming more and more of the expenses. tenant pays all operating and other expenses in addition to the rent
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what are the 3 types of superior liens? |
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what are junior liens? |
liens taken after superior liens are satisfied (junior to superior)
Examples:
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what is the statue of frauds? |
-requires that contracts conveying an interest in real property and contracts that are not to be performed within one year of the dae created must be in writing and signed in order to be enforceable Includes: purchase and sale contracts option contracts deeds and mortgage instruments lease agreements for a term longer than 1 yr listing agreements for a term longer than 1 yr deeds and mortgage instruments |
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what terminates an offer? |
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what are the remedies for a breach? |
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what is the power of attorney? |
a written legal document designating some other person as an attorney-in-fact (who may bargain and sign for the person what granted the power of attorney) |
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can a sellers agent sign acceptance offer of a buyer with power of attorney? |
yes |
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what is a net listing? |
an open, exclusive right of sale or exclusive agency listing in which the seller agrees to sell the property for a stated acceptable minimum amount |
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what is important about lead based disclosures? |
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regarding the homeowners association disclure, can the right to void the contract be waived by the buyer? |
NO |
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what is title theory? |
title to the property is conveyed to the lender through a mortgage deed--once fulfilled broker conveys title |
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what is lien theory? |
Florida is lien theory - in which the borrower reains title to the property and lender is protected with a lien (foreclosure) |
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what is the due on sale clause? |
allows mortgagee to call due the outstanding loan balance plus accrued interest |
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what is assignment of a mortgage? |
when ownership of a mortgage is transferred from one company or individual to another |
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what is an ARM? |
adjustable rate mortgage - fluctuating interest rate over the term of the loan |
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what is an index rate? |
linking the interest rate of an ARM with any recognized index such s the US Treasure securities |
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is a FHA loan government insured? |
yes - government insured |
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what is the down payment amount for an FHA loan? |
3.5 %
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what is the down payment amount for a VA loan? |
0% |
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Is VA loan a guranteed loan? |
yes - government guaranteed |
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what is the housing expense ratio (HER) by the FHA? |
31% |
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what are triggering terms? |
"bait and switch advertising"---terms that must include additional disclosures
(i.e. number of payments, amount or percent of downpayment, period of repayments, amount of any payment or finance charge) |
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what is RESPA? |
Real Estate Settlement Procedures Act - a consumer protection law administered by the consumer financial protection bureau intended to ensure that buyers are informed regarding the amount and type of charges they will pay at closing |
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what is the disclosure period by RESPA? |
within 3days |
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what is the FED discount rate? |
the interest rate charged member banks for borrowing money from the FED
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what is an open listing? |
open to any number of brokers who can work simultaneously to sell the owners property |
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what are the types of nonfreehold (leasehold) estates? |
estate for years - written lease agreement with specific start/end date
tenancy at will - oral agreement or one with no specific end date
tenancy at sufferance - when lease period ended and tenant is holdover |
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what are the types of freehold (ownership) estates? |
fee simple - absolute and inheritable
life estate - measured by natural life span (includes estate in reversion, remainderman estate, vested remainderman, contingent remainderman) |
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what is the most commonly used method of controlling the supply of money? |
FED discount rate
if discount rate is increased, member banks have to pay a higher interest rate for money borrowed |
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what is an important characteristic of the real estate market? |
the market is slow to respond to change in supply and demand |
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what is leverage? |
use of borrowed funds to finance the purchase of an asset |
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what is an income statement? |
concise summary of all income and expenses of a business for a stated period of time
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what is a balance sheet? |
shows companys financial position at a stated moment in time such as the close of business on the date of the balance sheet |
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what is density |
number of units per acre in residential zoning |
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intensity |
used in commercial zoning to determine the type and amount of pedestrian and vehicular traffic generated by a commercial enterprise |
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what is the disabled vet exemption |
$500 for less than 10%
$5000 if disabled 10% or more |
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who is exempt for an additional $500 exemption |
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what are immune properties? |
properties that are government owned are immune such as public school, city hall, military, government buildings |
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what properties are exempt from property taxes? |
properties belonging to churches and nonprofit |
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what is a REIT? |
Real Estate Investment Trust
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what are the types of real estate investments? |
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what is intermediation? |
process practiced by financial thrift institutions that serve as financial intermidiaries between depositors and borrowers |
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what is disintermediation? |
occurs when funds are withdrawn from intermediary financial institutions such as banks and savings associations and are invested in instruments yielding a higher return |
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what are Florida's three type of state property taxes that apply? |
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does surplus have value? |
No |
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what is market value? |
also called fair market value is the most probable price that a property should bring in a competitive open market under all conditions |
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what is GRM? |
Gross Rent Multiplier
relates sale price to monthly rental income only |
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what is GIM? |
Gross Income Multiplier
relates to the annual income of small incoming producing properties |
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what is curable depreciation? |
occurs when a building component has been added or repaired and the owners are able to get their money back in added value |
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what is incurable depreciation? |
occurs when a building component has been added or repaired but the owners are unable to get their money back in added value |
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what is economic life? |
the useful life |
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what is the effective age? |
age indicated by a structures condition and utility |
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what is the accrued depreciation formula? |
effective age / total economic life x reproduction cost new = estimated total accrued depreciation |
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what is the straight line method depreciation formula? |
depreciable basis / 27.5 yrs for residential = annual appreciation deduction
depreciable basis / 39 yrs for commercial = annual appreciation deduction |
