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462 Cards in this Set
- Front
- Back
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what are the most common real estate services?
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A -Advertise B-Buy A-Appraise (nonfederally related transactions) R-Rent or provide rental info S-Sell A-Auction L-Lease E-Exchange |
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what must a real estate brokers' sign display? |
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what is a blind advertisement? |
does not include the name of the licensed broker |
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what are the 3 exceptions of Notice and Settlement procedures? |
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what are four settlement procedures during conflicting demands? |
M-Mediation A-Arbitration L-Litigation E-Escrow Disbursement Order |
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what is mediation? |
an informal non-adversarial process intended to reach a negotiated settlement |
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what is arbitration? |
a matter submitted to a disinterested 3rd party |
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what is litigation? |
a lawsuit filed that can involve either of 2 procedures: 1. interpleader 2. declaratory judgment |
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what is an EDO? |
Escrow Disbursement Order- broker requests FREQ to rule only when funds are held in broker's escrow account (does not apply when funds are held by an attorney or title company) |
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Does FREC have any jurisdiction over a title company? |
No |
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when do you need to complete your 45 hour post education if received your license on 2/15/15? |
9/30/16
must be completed on last renewal date (of March 31 or September 30) and prior to 2years |
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what's the difference between a rental agent and a property manager? |
a rental agent for a fee acts as an intermediary between a person seeking to lease housing and a property owner seeking to acquire a lease--paid per transaction and needs a license--if salaried they do not need a license
property manager manages properties for various owners. Primary duties are to secure and keep tenants, to provide financial records and accounts, and to provide upkeep and maintenance of the properties |
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a violation of Florida Statue 475 or any lawful order, rule, or explanation is legally a misdemeanor of the ___ (what) degree? |
2nd degree misdemeanor |
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how may licensees satisfy the education requirements they have been involuntarily inactive for 12 months or less? |
completing 14 hours of FREC approved continuing education |
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how may licensees satisfy the education requirements they have been involuntarily inactive for more than 12 months but less than 24 months? |
complete 28 hours of commission prescribed education course |
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if the a sales associates broker is disciplined and license suspended or revoked, what happens to the sales associate's license? |
it becomes voluntarily inactive until a new employing broker is chosen and filed with the DBPR |
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how long does licensee have to accept or reject a violation as specified in the citationi |
30 days
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what is maximum fine for each violation of Florida Real Estate Commission statutes 475 and 455? |
$5000 |
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what is the maximum period for which FREC may suspend a license? |
10 years |
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what is the most severe type of administrative penalty? |
revocation |
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what is a realtor? |
a member of the National Association of Realtors |
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what is involuntarily inactive? |
license status that results when a license is not renewed at the end of the license period prescribed by the Department |
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name 4 examples of grounds for denial of applicants request for licensure? |
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what is a stay of enforcement? |
stops the enforcement of a suspension or revocation in the final order pending the outcome of an appeal request |
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what is a judicial review? |
appeal |
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what is a final order in the complaint process? |
FREC's final decision as to innocence or guilt and the determination of the appropriate penaltynia |
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what is an informal hearing? |
normally held at a regular FREC meeting when licensee is given the opportunity to explain the details of the case with supporting evidence and/or witnesses--licensee must admit to alleged facts |
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what is a formal hearing? |
licensee can request or they can dispute allegations and the matter is held before an administrative law judge |
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what is another name for a formal complaint? |
administrative complaint |
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what is a formal complaint? |
an outline of allegations of facts and charges against the licensee |
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when does the complaint process begin? |
when complaint is filed with the DBPR |
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what is material fact? |
a piece of information that is relevant to a person making a decision and that affects the value of the real property (i,e: information such as known defects or code violations) |
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what are conflicting demands? |
occur when the buyer and the seller make demands regarding the disbursement of escrowed property that are inconsistent and cannot be resolved |
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what are acceptable depositories for a broker? |
an interest or non-interest bearing account in a Florida commercial bank, credit union or savings association |
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what is commingle of funds? |
the illegal practice of mixing a buyer's, seller's, tenant's, or landlord's funds with the broker's own money or of mixing escrow money with the broker's personal funds or brokerage funds |
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what is the definition of "immediately" regarding handling of earnest/escrow deposit? |
means brokers must place trust funds into an escrow account no later than the end d business day after their sales associate has received it.
(the first day of the three business day time limit coincides with the day the sales associate must turn over the deposit to the broker) |
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what is an escrow acct? |
account for the deposit of money a disinterested third party holds in trust (trust fund) for others |
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what is a deposit?
what is earnest money?
what is another name? |
deposit- a sum of money, or it's equivalent delivered to a real estate licensee
earnest money - payment or partial payment in connection with a al estate transaction
aka- good faith deposit or binder deposit |
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how long do you have to follow up with prospect who voluntarily surrendered their phone # if they are on the DO NOT CALL registery?
what about the time to follow up if you have handled previous business with them? |
up to 3 months if never done business before
up to 18 months if previously done business |
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what is concealment? |
withholding of information or a material fact |
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what is breach of trust? |
any violation or omission of a legal or moral duty also defined as breaking of a promise or obligation, either by an act of commission or omission, default, or nonperformance |
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can joint ventures register as brokerage business entity? |
No |
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what is an LLC? |
Limited Liability Corporation |
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what is an office policy manual? |
a collection of office rules and regulations created to inform sales associates and employees of the standards and procedures in that particular office |
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what is Limited Liability Partnership (LLP)? |
a partnership that enjoys protection from personal liability - not liable for obligations or liabiip arising from contract, errors, or omissions, negligence, malpractice, or wrongful acts committed by another partner or by an employee or representative of the partnership
must file with Florida Department of State |
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what is a corporation? |
an artificial person or legal entity created by law and consists of one or more persons
formed by filing articles of incorporation with the Florida Dept of State |
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what is a general partnership? |
an association of two or more persons for the purpose of jointly conducting a business
each general partner is responsible for all the debts incurred in the conducing of that usiness
created by a contract that is written, oral, or implied |
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what is a sole proprietor? |
a business owned by one person
personally liable for their own actions and those of any employees
must register with DBPR |
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what is a corporation sole? |
church |
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can a corporation sole register as a real estate broker? |
no |
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what is the fine if sales associates, brokers, and state certified appraisers represent themselves as licensed when it is inactive? |
$300 |
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what is RESPA and what is their function? |
Real Estate Settlement Procedures Act
prohibits the payment of a kickback or unearned fee associated with a settlement (closing) service, including title insurance, attorney services, surveys, credit reports, and appraisals |
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what is a kickback/rebate? |
an unearned fee paid to a licensee associated with a real estate transaction for non-real estate services |
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what is "lis pendens"? |
means action pending - a notice recorded in the public records of a pending legal action that involves real estate |
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when does price fixing occur? |
when competing brokers conspire to establish a standard commission rate rather than letting the rate be set by the open market |
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what is a personal assistant? |
a person hired by licensees to perform administrative tasks associated with real estate transactions
may be unlicensed if performing routine office activities such as mass mailings, writing ads, preparing market analyses
may not be paid commission or compensated on a transactional basis |
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who does the FL Residential Landlord and Tenant Act apply to? |
rental of dwelling units |
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what is the intent of the Interstate Land Sales Full Disclosure Act (ILSA)? |
intended to prevent fraudulent marketing schemes when land is sold without being seen by purchasers (usually out of state) |
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what 2 categories of housing does the Fair Housing Act cover? |
1. Single family homes
2. multifamily housing |
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what additional two classes were protected by the Fair Housing Amendments Act? |
familial status
handicap status |
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what is the Civil Rights Act of 1964 (titles II and III)? |
legislation that ended racial segregation in schools, the workplace, and public accommodations.
Title II - prohibits discrimination on basis of race, color, religion, and national origin
Title III - prohibits state and municipal governments from denying access to public facilities on the grounds of race, color, religion or national origin |
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what is "quid pro quo?" |
i want something you want something |
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what is the purpose of the Florida REal Estate Recovery Fund? |
to reimburse an individual or business entity judged by a Florida court tetary (compensatory) damages as a result of an act committed by a broker or sales associated who:
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what are the elements of a deed? |
C- Consideration E- Execution (signed by competent grantor and 2 witnesses) D- Description of property D- Delivery and acceptance I- Interest or estate being conveyed N- names of grantee and grantor G- granding and other appropriate clauses |
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what is a grantor? |
owner giving title |
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what is a grantee? |
new owner receiving title |
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what are the types of title insurance? |
Owner's policy Lender's policy |
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what is a title? |
evidence of ownership
p185 |
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what is an acknowledgement regarding recording a property? |
a formal declaration before a notary public by the grantor that the signing is a free act
p184 |
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what is a chain of tile? |
complete successive record of a property's ownership
p185 |
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what is a title search? |
an examination of all the public records to determine whether any defects exist in the chain of title
p185 |
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what is abstract of title? |
a summary report of what the title search found in the public record
p185 |
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define "actual notice?" |
direct knowledge acquired in the course of a transaction
p184 |
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what is an opinion of title?
who's function is it? |
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what is eminent domain? |
gives government the right to take land from an owner through a legal process called condemnation, as long as the taking is for a public purpose and govt pays a fair price for any land taken
p184 |
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what are types of involuntary alienation? |
when the true owner of record fails to maintain possession and the property is seized by another
p183 |
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what is adverse possession? |
occurs when true owner of record fails to maintain possession and the property is seized by another
p183 |
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what is escheat to the state? |
a form of involuntary alienation that provides for a government, normally state, to take the property of an owner who dies intestate and without any known heirs entitled to receive the property
p183 |
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what is a deed? |
a written instrument used to convey an interest in real property
p182 |
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what is a title? |
proves a person holds vested ownership rights in property
p182 |
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what is a will? |
legal instrument used to convey title to real and personal property after the person's death
p 182 |
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what is alienation? |
act of transferring ownership, title, or an interest in real property from one person to another
p182 |
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what are the 2 types of alienation? |
p182 |
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what are the types of voluntary alienation? |
p182 |
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what are the types of involuntary alienation? |
p182 |
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what are the two types of timeshare ownership? |
interval ownership
right to use |
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what is a proprietary lease? |
one who has the stock and the right to occupy the unit in a cooperative
p172 |
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what is a cooperative? |
a multi unit building that is owned by a corporation
p173 |
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what is a condominium? |
owners have a deed and are the outright owner of a unit plus have a partial interest in the common areas |
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how long does a buyer have to review condo docs and cancel contract to receive earnest money back? |
3days
p174 |
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does the owner of a condo own a deed?
does the owner of a timeshare own a deed?
does the owner of a co-op own a deed? |
Yes
Yes
No
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what is time sharing? |
ownership that involves an undivided interest in a living unit according to the number of weeks purchased
p175 |
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how are marital assets divided in Florida? |
divided equally according to Florida law
(marital assets include any property acquired during the marriage individually by either spouse or jointly by them)
p172 |
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what is separate property? |
property the husband or wife owned separately prior to the marriage and property acquired during the marriage by inheritance or gift
p171 |
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what is the amount of notice one must give for a:
- week to week tenancy at will?
- month to month tenancy at will? |
7 days notice
15 days notice |
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what is an "estate for years?" |
has a specific starting and ending date
establishes an interest in real property for the tenant (right to use, possession, and exclusion) but does not convey actual title
p168 |
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what is concurrent ownership? |
ownerr more persons at the same time
p169 |
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what is "estate in severalty?" |
title to property held by one person |
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what is tenancy at will? |
a lease agreement that has a beginning date but no fixed termination date
p169 |
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what are the protections and benefits of homestead? |
protection of the family protection of the homestead tax exemption size of homestead personal property
p168 |
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what is a leasehold (nonfreehold) estate?
what are the 3 types?
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an interest in real property that a tenant possesses but reverts back to property owner at end of lease.
estate for years tenancy at will tenancy at sufferance
p168 |
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what is a fee simple estate? |
holds the largest bundle of legal rights and is ownership interest with complete power to use, dispose of, and allow the property to descend to heirs
the highest type of real property interest recognized by law
p167 |
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what are the types of freehold estates? |
1. fee simple 2. life estate
p167 |
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what are freehold estates?
For how long? |
estates of ownership
indefinite length |
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what is the legal test for fixtures? |
I-Intent of the parties R-Relationship of the parties M-Method or degree of attachment A-Adaptation of the item |
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what is a trade fixture? |
an article that is attached by a commercial tenant as a necessary part of the tenant's trade or business and is personal property |
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what is a fixture? |
an item that was once personal property but has been permanently attached to or made part of real estate and is now legally considered to be real property |
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what are the two basic types of property? |
Real Property
Personal Property |
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what is accretion? |
process of land buildup from water-borne rock, sand, and soil
p164 |
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what is alluvion? |
new deposits of land as a result of accretion; alluvion deposits commonly occurring at the mouth of large rivers (the landowner is entitled to all new soil deposits)p164 |
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what is erosion? |
gradual loss of land due to natural for (a landowner may lose land through the natural process of erosion)
p164 |
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what is reflection? |
gradual receding of water uncovering additional land (the new land usually belongthe area that was previously covered by water)
p164 |
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what are the 4 water rights? |
Accretion
Alluvion
Erosion
Refliction |
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what are bundle of rights? |
real property ownership rights including
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what are improvements? |
addition that increases the value of real property (not repairs) |
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what are air rights? |
involve the space above a tract, extending up to a height established by law (i.e. building rights, easements, aerial navigation) |
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what are subsurface rights |
consist of an rights to underground minerals, petroleum, natural gas, and so forth, often called mineral rights |
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what are surface rights? |
land and water rights |
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what are the 2 types of surface rights? |
riparian rights - associated with land abutting moving water, such as the banks of a river or stream
littoral rights-associated with land abutting tidal bodies of water, such as an oceanor a sea. Littoral owners own land that abuts water that is not flowing, including ponds and lakes |
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define land |
refers to the surface of the earth but also to everything attached to it by nature, such a trees and lakes. also includes products of nature beneath the surface such as soil and limestone
land extends downward to the center of the er to infinity |
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what are the remedies for breach of contract? |
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what are the ways an offer is terminated? |
(remember WILD CARD) W-Withdrawl by offeror I-Insanity L-Lapse of Time D-Death C-Counteroffer A-Acceptance R-Rejection D-Destruction of the property |
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what is the statute of limitations on written contracts?
" " on oral contract? |
written - 5 years
oral - 4 years |
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what is a void contract? |
does not meet all the required elements of a valid contract, and therefor has no legal effect |
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what is a voidable contract? |
it is a contract, but because of the manner in which it was brought about one of the parties is permitted to avoid any contractual dutues (i.e. a minor) |
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what is a parol contract? |
an oral agreement (informal) |
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what is an enforceable contract? |
A legally binding contract that the courts will recognize
(remember COLIC) C-Competent Parties O-Offer and Acceptance (meeting of the minds) L-Legal purpose I-In writing and signed (statute of frauds) C-Consideration (valuable or good) |
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what are the essentials of a contract? |
Competent parties offer and acceptance legal purpose consideration |
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how many sq feet in one acre? |
43,560
(hint: 4 little old ladies driving 35mph in a 60mph zone) |
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how many acres in a section? |
640 acres in a section |
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what is intestate? |
without a will |
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what are the three superior liens? |
1. real estate (property) tax liens, which become a lien on January
2. special assessment lients
3. federal estate tax lien (at time of death) |
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what is the lien priority? |
when there are 2 or more liens the priority determines the order in which tisfied if the property must be sold.
superior liens take priority over all liens then junior liens based on the date of the rerding |
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what are the 5 types of lease agreements? |
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what is an easement by prescription? |
created by long time usage |
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what is an encroachment? |
the unauthorized use of another's property (i.e. a fence or garage beyond a legitimate boundary without the owners consent) |
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what is an easement by necessity? |
if a landowner subdivides land, conveying part of it a way that causes a parcel to be landlocked, the court may authorize creation of an easement by necessity to allow property owners to enter and exit their landlocked property |
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what is an easement appurtenant? |
benefits an adjacent parcel of land
allows an owner the use of a neighbor's property such as the right to cross parcel A to reach parcel B |
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what are the most important subcategories of government restrictions? |
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what are the 2 types of ownership restrictions? |
government restrictions
private restrictions |
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what are the four types of statutory deeds? |
Quitclaim deed Bargain and sale deed Special Warranty Deed General Warranty Deed |
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what are the types of deeds? |
statutory deeds
special purpose deeds
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what is a special warranty deed? |
in which the grantor does not warrant a title (assume any responsibility for the title) in any way or manner except against acts by the grantor or the grantor's representatives |
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what is bargain and sale deed? |
grantor does not covenant or warrant to defend the title against any future claims or attacks on title |
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what is a Quitclaim deed? |
deed in which the grantor quitclaims unto the grantee all of the grantor's rights, title, and interest of the property, if any |
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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
contains 3 unique covenants
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what is the "covenant of seisin?" |
a promise that the grantor has the right to convey title |
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how do you calculate how much the buyer will pay lender for discount points? |
discount points are based on the loan amount each point equals 1% |
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what is an escrow account regarding a mortgage? |
advance monthly payments for property taxes and hazard insurance (1/12 of estimated annual expenses) |
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what is interest? |
the cost for the use of borrowed funds |
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what is a commitment fee? |
a fee charged by the lender to a developer of a subdivision, shopping center, or apartment complex when developer obtains written commitment certifying that permanent financing will be provided when the project is complete |
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what is a take-out commitment fee? |
written commitment of the future permanent lender
when project complete lender advances amount committed to developer to pay construction lender |
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what is a servicing fee? |
charged by some lenders to handle the loan payment collection and recordkeeping for the mortgages they originate |
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what is an origination fee? |
a charge by the lender (typically 1-2% of the loan amount) for the expenses of obtaining credit reports, preparing loan docs, and processing mortgage application |
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what are discount points? |
a loan fee charged by lenders to increase the yield on a lower-than-market interest loan to make the loan more competitive with higher-interest loans |
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what is a covenant against removal? |
Mortgager promises not to remove the building or any part of the improvements that are pledged as security for the debt |
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what is a promise to repay? |
borrower promises to pay principle and interest according to the terms of the note |
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what is the defeasance clause? |
it defeats the prior action
The mortgage clause that provides that the conveyance of title to the lender is defeated when all of the terms of the agreement have been fulfilled
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what is foreclosure? |
a judicial process
enforcement of a mortgage lien |
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what is a short sale? |
a real estate transaction where the net proceeds at closing will not satisfy the payoff amount of mortgages and other liens on the property |
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what is "assumption" of a mortgage? |
obligates the buyer to assume liability of a debt |
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what is a contract for deed? |
double check this answer---a financing device that is used when a buyer does not have sufficient funds to make a down payment that is acceptable to the seller
Or a financing vehicle in which the lender holds title to the property until the buyer has met the stated obligation
Buyer makes a small downpayment and seller finances rest of purchase price
The vendor (owner) retains title and vendee (buyer) takes possession |
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what is a novation? |
an agreement in writing when seller wants to be completely free of the original mortgage obligation |
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1/8 of 1% as a general rule applies to what? |
a mortgage where you add 1/8% to the stated mortgage interest rate to estimate the lenders yield (return) |
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define lender's yield? |
lenders return on investment by 1/8 of 1% |
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what is hypothecation? |
pledging of property as security for payment of a loan without surrendering possession of the property
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define mortgagee? |
lender (bank, savings association, credit union) that provides money to the borrower |
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what is a constructive notice? |
a legal notice accomplished by recording the information in the public records |
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what is a subordination agreement? |
agreement where the holder of the first mortgage can voluntarily take a lower priority to a junior mortgage
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the priority of mortgage liens are normally determined by what? |
the order in which the liens are recorded (i.e. 1st , 2nd , 3rd mortgages) |
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what are the 2 theories of mortgage law? |
1. Lien Theory (practiced in Florida)
2. Title Theory
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what is lien theory? |
borrower retains title to the property
Lender is protected with a lien and may foreclose if buyer defaults |
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what is title theory? |
173 title to mortgaged property is conveyed (transferred) to the lender through a deed or to a trustee
Lender may take possession if default |
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what are the two parties in a mortgage? |
1. mortgagor (borrowor/debtor)
and
2. mortgagee (lender/creditor) |
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what is a mortgage? |
an instrument that pledges the property as security for a debt
A legal document that represents the lien on the real estate that secures the debt |
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how is the Loan-to-Value Ratio determined? |
loan amount divided by (/) value of home
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what is the right of "equity of redemption?" |
when a borrower who is in default on a mortgage is allowed to prevent the lender from foreclosing on the property by paying the mortgagee the delinquent principal and interest plus expenses the mortgagee incurred in attempting to collect the payment |
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what is an acceleration clause? |
when a lender declares all the unpaid balance due and payable as a result of default |
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what happens when a vendee buys "subject to the mortgage?" |
the vendee is not responsible for the note |
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define vendee? |
buyer |
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define vendor? |
seller/owner |
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what is satisfaction of a mortgage? |
a document that must be filed by the mortgagee on behalf of the mortgagor (buyer) when they make the final payment on their home
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what is a prepayment penalty? |
if the mortgagee does NOT want the mortgage to be paid ahead of schedule so they charge a fee |
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what is the primary purpose of an estopped certificate? |
to verify the loan balance, rate of interest, and date to which interest has been paid prior to agreement |
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what is a due-on-sale clause? |
when mortgagee is allowed to call due immediate payment in full of the outstanding loan balance plus interest |
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what is a promissory note? |
represents the borrowers promise to pay the lender according to the agreed upon terms |
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what is a note? |
legal evidence of a debt |
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what is a blanket mortgage? |
a mortgage covering a number of parcels, usually building lots |
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what is LTV? |
Loan-to-Value Ratio |
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what is equity? |
is the relationship between the amount borrowed and the appraised value (purchase price) of a property
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what is takeout commitment? |
the monetary interest the owner has in property over and above the mortgage indebtedness
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what are the two ways a buyer may choose to purchase a property that is encumbered by an outstanding mortgage loan? |
1. Subject to the mortgage –buyer is not personally obligated to pay debt in full Buyer takes title but seller is still responsible Buyer makes payment 2. assumption of an existing mortgage – obligates the buyer to assume liability for the debt Both buyer and seller equally liable if default
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how do you estimate the lenders yield (cost to borrower) for discount points? |
each discount point will increase yield by 1/8 of 1% (.00125) Then add to stated interest rate
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what two remedies does the mortgagee (lender) have if default on a mortgage occurs? |
1. Initiate a suit on the promissory note to sue and obtain a judgment against any real or personal property (except homestead)
2. initiate a foreclosure proceeding by accelerating the mortgage and sell at public auction |
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what is a nonconventional loan? |
FHA Insured
and
VA guaranteed |
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what is a conventional loan? |
one that is not insured or guaranteed by a govt agency |
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what is PMI? |
Private Mortgage Insurance
(required for conventional loans w/ 80% LTV ratio (20% down payment)
p 267 |
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what is amortization? |
rate at which you are paying a principle down
(to extinguish or deaden) |
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what is TOR? |
Total Obligations Ratio – a measure of a borrowers total monthly installment debt (expenses) divided by monthly gross income (expenses divided by/ gross income = TOR) |
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what is a balloon payment? |
single large financial payment including interest and unpaid principle due on the loan maturity date |
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what is the Housing Expense Ratio (HER)? |
used by FHA lenders to calculate by taking monthly housing expenses for principal, interest, taxes, and hazard insurance and the monthly mortgage insurance premium and dividing by the applicants monthly gross income |
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what is an ARM? |
Adjustable Rate Mortgage - ARM fluctuating interest rate over the life of the loan |
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what is TILA? |
Truth-in-Lending Act
also called Regulation Z |
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when does the truth-in lending disclosure need to be given? |
3 days after closing and before the 7th day |
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what are the required disclosures in the Truth in Lending Act? |
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what loans does the Three-day Right of Rescission apply? |
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what is RESPA? |
Real Estate Settlement Procedures Act p 282 |
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what RESPA disclosures must be given? |
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what is FRS? |
Federal Reserve System - central bank of the US p285 |
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what are the duties of the FED |
Central Bank of the US 1. Conducting nations monetary policy 2. Supervising and regulating banking institutions and protecting the credit rights of consumers 3. Maintaining stability of financial system1 |
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what are economic tools of monetary policy used by the FED? |
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what is open market operations? |
the FEDs principle and most effecplementing monetary policy involving the purchase and sale of US Treasury and federal agency securities |
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what is the discount rate? |
the 2nd most commonly used method of controlling the suplly of money which is the interest rate charged member banks for borrowing money from the FED |
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what are the reserve requirements? |
the 3rd method used by the FED to influence the supply of money
the amount of funds that an institution must hold in reserve against deposit liabilities |
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what does the Office of Thrift Supervision (OTS) regulate? |
regulates member federal savings associationses mortgage lending by the 12 regional Federal Home Loan Bank System (FHLBS) |
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what is the role of commercial banks? |
to hold demand deposits (checking accounts) |
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what are demand deposits? |
checking accounts |
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what is the Secondary Mortgage Market?
|
Fannie Mae Ginnie Mae Freddie Mac |
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what are the most common government sponsored enterprises? |
verify how question worded if applies to secondary market or not p 291
Fannie Mae Ginnie Mae Freddie Mac |
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what is the only mortgage backed securities to carry the full faith and credit guarantee of the US government? |
Ginnie Mae |
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what is Fannie Mae? |
Federal National Mortgage Association
keeps low-cost capital flowing to mortgage lenders across the nation
does not lend directly to homebuyers
provides large builders and real estate companies amounts of $25 million or more
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what is Ginnie Mae? |
Government National Loan Association
government owned and financed
to expand affordable housing in America by linking capital markets tot he nations marketplace
guarantor of mortgage backed secrities |
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what is Freddie Mac? |
Federal Home Loan Mortgage Coorporation
provides a secondary market for loans originated by Savings Associations
handle conventional loan
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what are the types of real estate investments? |
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what is a REIT? |
Real Estate Investment Trust
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what is immune from property taxes?
give examples |
city, county, state government properties exempt
i.e. public school, city hall |
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what is exempt from property taxes?
give examples |
property belonging to churches and nonprofit organizations |
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who may claim exempt for an additional $500 |
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who qualifies for a disabled vet exemption? |
military veterans who are at least 10% disabled by service-connected misfortune an additional $5000 exemption on homestead
military veterans who is totally and permanently disabled are entitled to a total exemption from property taxes on their homestead property |
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what is density? |
the number of units (homes) per acre as regulated by residential zoning |
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what is intensity? |
determined by the type and amount of pedestrian and vehicle traffic generated by a commercial enterprise
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what is an income statement? |
a 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 a company's financial position at a statement moment in time, i.e. the close of business on the date of the balance sheet |
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what is leverage? |
the use of borrowed funds to finance the purchase of an asset |
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what is intermediation? |
a process practiced by financial thrift institutions that serve as financial intermediaries (middleman) 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 is the Gross Income Multiplier (GIM) ? |
used with small incoming producing properties
sale price divided by gross annual income =gross income multiplier |
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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 and the owners are NOT able to get their money back in added value |
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what is the Gross Rent Multiplier (GRM)? |
lower is better
it is the sale price divided by the monthly rent |
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what is the Cost Depreciation Approach formula |
Reproduction cost of the building -accrued depreciation = indicated value of the building +estimated value of the site =indicated value of the property
methods used are : quantity survey method unit in-place method comparative square foot method |
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what is the Accrued Depreciation formula? |
effective age / (divided by) total economic life x (multiplied by) reproduction cost new = estimated total accrued depreciation |
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what is economic life? |
the useful life
the total estimated number of years that the structure is expected to contribute to the property's value |
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what is effective age? |
the age indicated by a structure's condition and utility |
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what is external obsolescence? |
a form of depreciation - any loss in value due to influences outside the boundaries of the property such as expressway adjacent to a residential subdivision or deterioration of the neighborhood |
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what is functional obsolescence? |
a cause of depreciation --anything that is inferior due to operational inadequacies, poor design, or changing tastes and preferences
(i.e. poor traffic pattern, too few bathrooms) |
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what is physical deterioration? |
a cause of depreciation - ordinary wear and tear caused by use, lack of maintenance, exposure to the elements, and physical damage
(i.e.. brittle roof shingles or worn out central air conditioning) |
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what is depreciation? |
the loss in value as wear and tear, poor design, or the structure's surroundings (proximity) |
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what is replacement cost? |
amount of money required to replace a structure having the same use and functional utility as the subject property |
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what is the principle of substitution? |
basis for all 3 approaches to market value
meaning that a prudent buyer or investor will pay no more for a property than the cost of acquiring, through purchase or construction, an equally desirable alternative property |
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what is highest and best use? |
the most profitable use to which a property may be put
use must be:
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what are the characteristics of value? |
(remember DUST)
D-Demand U-Utility S-Scarcity T-Transferability |
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what is exchange value? |
the monetary value of a good or service to many buyers and sellers at a particular time |
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what is reproduction cost? |
amount of money required to build an exact duplicate of the structure (think marble floors) |
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what does the stamp on the deed tax apply to? |
the price of the home |
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what is intangible tax? |
a tax only paid on new mortgages |
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what is the state transfer tax? |
taxes that apply to deeds, notes, and mortgages associated with the transfer of ownership of real property |
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when must a homeowner be in possession of a home before they can take a homestead exemption? |
must be in the house as of January 1 to claim the homestead exemption |
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what is paid "in arrears"? |
It is how Florida pays property taxes at the end of the year..billed in November to cover that current years property taxes |
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what is prorate? |
to divide various charges and credits between buyer and seller |
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what is a co-operative broker? |
it is the buyer's broker (the buyer is cooperating) |
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who is represented by the listing office? |
seller |
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who is represented by the selling office? |
buyer |
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what is an investment? |
the outlay of an investor's money in anticipation of income or profit |
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what is assessed value? |
the value of a property established for property tax purposes |
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what is just value? |
the fair and reasonable value based on objective valuation methods |
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what is ad velorem? |
a tax according to value |
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what are the components of the property tax schedule in Florida? |
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what are the protest procedures for property taxes? |
step 1 - seek adjustment by unty property appraiser office
step 2 - if request rejected file an appeal
step 3 - final step is litigation |
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what is a special assessment? |
one time taxes levied on properties to help pay for some public improvement that benefits the property |
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what is the Amount Realized formula? |
sale price - expense of the sale = amount realized |
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what is the Adjusted Basis formula? |
original purchase price + purchase expenses and capital improvements = adjusted basis formula |
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what is the Capital Gain (or Loss) From Sale formula? |
amount realized - adjusted basis =capital gain (or loss) |
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what does the IRS require when purchasing real property from a foreign resident?
why? |
that buyers withhold 10% of the gross sale price (including cash paid and any debt assumed by the buyer)
to prevent foreign sellers from avoiding the payment of taxes due on the sale of real property |
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what are three types of income classification? |
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what is passive income? |
income from activities in which the taxpayer does not participate (i.e. rental property income) |
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what is portfolio income? |
income from interest, stock dividends, capital gains, royalties, and annuity income |
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what are deductions from gross income? |
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what is risk? |
the chance of losing all or part of an investment |
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what is a PUD? |
Planned Unit Development - a type of special land use allowed under most zoning ordinances - see p425 |
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what is legally lnonconforming use? |
if a property's use was lawfully established but no longer conforms to the use regulations of the zone in which it is located because of the enactment of a new zoning ordinance |
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what is variance? |
allows a property owner to vary from strict compliance with all or part of a zoning code because to comply would force an undue hardship on the property owner
* must show a hardship exists * zoning board must use the same established criteria to judge the validity of all requests for a variance |
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what is intangible? |
something of value lacking physical substance
i.e. goodwill |
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what is tangible? |
anything of substance; personal and real property
i.e. cash, building, equipment, land |
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what is negative leverage? |
if the borrowed funds cost more than they are producing |
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what is positive leverage? |
if the benefits of borrowing exceeds the cost |
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what is purchase power risk? |
related to inflation
in an inflationary period, the ability of a property to produce a good yield may be offset by a corresponding loss of purchasing power because of inflation |
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what is a dynamic risk? |
a risk that arises from the continual change in the business environment |
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what is static risk? |
a risk that can be transferred to an insurer (i.e. fire damage) |
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what is a characteristic of real estate? |
it is slow to respond --see pg 407 |
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what are variables that influence demand? |
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what are variables that influence supply? |
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does land ever depreciate? |
never |
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what is cease to be in force? |
refers to a license that cannot be used until the DBPR has been notified (i.e. sales associate moves to a new broker) |
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when is a license considered ineffective? |
when a license exists but the licensee cannot use it due to :
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what is does it mean to voluntary relinquish or cancel one's license ? |
a person who no longer wants to engage in the real estate business provided there is no investigation or discipline pending against the licensee |
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define mortgagor? |
the person who borrows money to help pay for the purchase of real property (buyer)
mortgagor ---prospective owner who needs to borrow money to complete a property purchase |
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what is foreclosure? |
enforcement of the mortgage lien |
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what is market value? |
also called fair market value is based on the theory that in any open market there will be a number of buyers and sellers
it is the most probable price that a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assumieng the price is not affected by undue stimuli |
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what is scarcity? |
determined by the availability of goods or services in relation to present or anticipated demands |
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Scarcity - (minus) higher demand = ? |
Value |
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|
what are the main Florida state taxes that apply in real estate? |
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|
Division of Administrative Hearings (DOAH) |
govt entity that hears all formal hearings resulting from an administrative complaint against a licensee |
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Method of Annexation |
a |
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what is a prospectus? |
a |
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what is a proprietary lease? |
a |
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what is a cooperative? |
a |
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what is elective share? |
concerning property owned that is excluded from deceased spouses' will |
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what is homestead? |
primary residence |
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what is Tenancy At Will? |
lease agreement with no fixed termination date |
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what is a Leasehold estate? |
tenant possesses estate during lease period |
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Name the 3 types of leasehold estate? |
1. Estate for Years 2. Tenancy at Will 3. Tenancy at Sufferance |
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what is Tenancy At Sufferance? |
when a tenant stays in possession beyond the ending date of the lease without the consent of the landlord (squatter) |
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What is Joint Tenancy? |
type of tenancy where: interest is equal to 50/50%
right of survivorship when the share of deceased co-owner goes to surviving co-owner and not to heirs (i.e - if I die, my share will go to Dre and not Deonna) |
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What is Tenancy By The Entirities? |
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what is Tenancy in Common? |
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What is estate in severalty? |
meaning one owner |
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What are the 3 types of concurrent ownership? |
1. Tenancy in Common 2. Joint Tenancy 3. Tenancy by the Entireties |
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what is a Freehold estate?
give examples? |
an ownership interest for an indefinite period
i.e. |
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what is a Life estate? |
owner owns property until death (throughout their natural life) |
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define personal property? |
movable items not attached to real property
(i.e. if you tip he house upside down everything that falls out is personal property) |
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what is reliction? |
gradual receding of water, uncovering additional land |
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what is erosion? |
a |
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what is TILA?
what is it's purpose? |
Truth-in-Lending Act
purpose is that borrowers are given information with respect of the cost of credit |
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what are triggering terms?
give an example? |
terms where TILA requires creditors to disclose fine print of advertised deals |
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what is a Special Information Booklet?
when is it given and by whom? |
a booklet of consumer information that RESPA requires lenders to give that contains information regarding closing costs the borrower may incur |
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what is a Service Disclosure Statement?
when is it given and by whom? |
disclosure statement given to borrowers that discloses whether the lender intends to service the loan or sell it |
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what is a GFE? |
Good Faith Estimate - RESPA requires lenders to provide to loan applicants a good-faith estimate of the listing charges buyer will likely pay at closing |
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what is Familial Status? |
Familial status is a protected class defined in the Fair Housing Act as one or more individuals under age 18 living with a parent or legal guardian and preg women |
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|
what is the Fair Housing Act?
|
The Fair Housing Act created protected class of people and prohibits discrimination when selling or renting residential property based on: 1. Race 5. National Origin 2. Color 6. Familial Status 3. Religion 7. Handicap Status 4. Sex
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what year was the Fair Housing Act enacted? |
a |
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what year was the Fair Housing Act amended? |
1964 to include familial status and disabled |
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|
what is the Civil Rights Act of 1866?
what law does it pertain to? |
A federal act that prohibits any type of discrimination based on race in any real estate transaction sale or rental without exceptions
Federal Fair Housing Law |
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what is a summary suspension? |
emergency or immediate action against a licensee to protect the public |
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what is a notice of noncompliance? |
issued by the DBPR in the case of a minor rule violation that does not endanger the public health, safety, or welfare |
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who issues a notice of noncompliance? |
DBPR |
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what is moral turpitude? |
an act of corruption vileness or moral depravity a disgraceful action or deed |
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what is a formal hearing? |
a session in which testimony and arguments are presented, especially before an official |
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what is an informal hearing? |
a respondent who does not dispute allegations of material fact in the administrative complaint may request an informal hearing before the FREC for final action on the complaint |
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what is culpable negligence? |
inadequate attention to duties and obligations by those who know or should know what is required of them |
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what is market allocation? |
a agreement between brokers to split up competitive market areas among themselves and not compete in each others areas |
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what is a limited partnership? |
a business entity consisting of one or more general partners and one or more limited partners |
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who must maintain a real estate license in a limited partnership? |
the general partner |
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who must maintain a license in a general partnership? |
at least one general partner |
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what is interpleader? |
a course of action when 2 contesting parties cannot reach an arbitrated agreement
broker can be excused and case settled in court |
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what is arbitration? |
the act of having a 3rd party rending a binding decision in a dispute between 2 parties |
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what are antitrust laws? |
state and federal laws designed to maintain and preserve business competition |
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what is a designated sales associate? |
two real estate licensees designated to represent the buyer and the seller as single agents in a nonresidential transaction
*buyer and seller must have asset of buyer and seller must have asset of $1,000,000 or more and they sign disclosures stating assets meet requirements
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what is cease to be in force? |
when a licensee cannot perform real estate services because certain events occur such as a broker changes business address
cannot be used until the DBPR has been notified
(i.e. sales associate moves to a new broker) |
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|
when is a license considered ineffective? |
a license exists but the licensee cannot use it due to : 1. inactive 2. suspended-discipline |
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what does it mean to voluntarily relinquish? |
voluntary cancel one's license - when a person who no longer wants to engage in the real estate business provided there is no investigation or discipline pending against the licensee |
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what is promulgate? |
the formal act of announcing a statute or administrative rule
(The FREC may promulgate rules and regulations) |
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what is ministerial duties? |
duties of the division of real estate that involve recordkeeping |
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what is involuntarily inactive? |
license status that results when a license is not renewed at the end of the license period |
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what is ineffective? |
status of a license when it is inactive or has been suspended |
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what does it mean to withhold adjudication? |
when court determines defendant is not likely to again engage in a criminal act and defendant is not required to suffer penalty imposed by law |
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what is reciprocity? |
practice of mutual exchange of priviledges |
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what is prima facia evidence? |
requiring no further proof |
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what is an owner-developer? |
unlicensed entity that sells exchanges or leases its own property |
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what is nolo condendre? |
a pleading of "no contest" by a defendant which does not admit guilt but can subject the defendant to punishment |
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what is mutual of recognition agreement? |
transactional agreement between FL and another state that provides for both states to recognize each state's real estate license |
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what is caveat emptor? |
"let the buyer beware" |
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|
what is real estate brokerage? |
a part of the real estate business that is concerned with bringing together buyers and sellers and owners and renters to complete a real estate transaction |
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what is property management? |
the leasing, managing, marketing and overall maintenance of property for others |
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|
what is a property manager? |
a person who manages property for various owners.
primary duties are to secure and keep tenants, to provide financial records and accounts and to provide upkeep and maintenance of properties |
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what is dedication? |
an offer of land for some public use, by an owner, together with acceptance by or on behalf of the public |
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what is an appraisal? |
the process of developing and communicating an opinion of a property's value as of a certain date |
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|
who can perform appraisals? |
real estate brokers and sales associates may perform appraisals for compensation but they must not present themselves as state-certified or licensed
must follow USPAP guidelines |
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who can perform BPO's?
who gets paid for performing a BPO? |
a broker or sales associate but may not call it an appraisal
compensation is only payable to broker |
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what is real property? |
land and anything permanently attached to it |
|
|
what is the objective of Florida's Fair Housing Act |
to provide for fair housing throughout the state (it's similar in scope to FHA-Fair Housing Act) |
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|
what are the 3 general areas of responsibility for FREC? |
check wording on answer vs government bodies of FREC
Judicial Executive Legistlative |
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who does antitrust laws protect? |
the competition |
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what are the consequences of advertising real property information or liss that are not current or are materially inaccurate? |
it is illegal and could be guilty of a misdemeanor in the 1st degree and subject to a fine of up to $1000 and/or imprisonment up to one year, AND subject to license suspension or revocation |
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how much must the broker repay if the information provided to the prospective tenant is not current or is inaccurate in any material?
how long does prospective tenant have to request and how must the request be received? |
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|
what is the Straight Line Depreciation Formula? |
p397 |
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|
if a prospective tenant does not obtain a rental after purchasing a rental list w/I 30 days of the contract/receipt date, how much are they entitled to be refunded? |
75% |
|
|
what is good faith? |
a term used to describe a party's honest intent to transact business, free from any intent to defraud the other party (each parties faithfulness to the duties or obligations set forth by the contract) |
|
|
what are the 3 exceptions to the notice and settlement procedures for sales escrow account? |
escrow may be returned w/o initiation one of the four settlement procedures when:
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how much of their own personal or brokerage funds are allowed to be placed in the brokers sales escrow account?
what about a property management account? |
up to $1000 of personal or brokerage funds
no more than $5000 if property mgmt and sales escrow accounts are combined |
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how long must records be kept from the date of receipt of money, funds, deposits, or checks, entrusted to the broker?
how long for any executed agreement either oral or verbal (including broker agreements, listing agreements, offer to purchase, rental property, lease) |
at least 5 years in both cases |
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|
what procedures must be followed if the broker's escrow account is an interest bearing account? |
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if a broker requests an EDO and the escrow dispute is either settled or goes to court before the EDO is issued, what must be done? |
broker must notify the FREC w/I 10 business days |
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|
when must brokers institute one of the settlement procedures regarding conflicting demands or having a good faith doubt? |
w/i 30 days of receiving conflicting demands |
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|
when must brokers notify the FREC of conflicting demands or of a good faith doubt?
how must the FREC be notified? |
|
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|
what is a binder deposit also called? |
a good faith deposit or earnest money |
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|
where may escrow funds be held if the broker chooses not to open an escrow account? |
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where may a broker open an escrow account? |
broker may maintain either an interest-beating or noninterest-bearing escrow account in a Florida bank, savings association, or credit union |
|
|
what's the major difference between the state and federal telemarketing laws? |
Florida law exempts real estate licensees who solicit listings in response to a "for sale" yard sign
Federal law exceptions:
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|
who administers Florida's telemarketing law?
what is the fine for violations of Florida's Telemarketing Act? |
Department of Agriculture and Consumer Services
$10,000 fine per call |
|
|
what is the fine for violators of the federal law regarding the DO NOT CALL registry? |
$11,000 fine for each illegal call |
|
|
who is exempt from the federal law regarding DO NOT CALL registry? |
|
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|
what does NAR require of member REALTORS who advertise unlisted real property for sale or lease in which they have an ownership interest? |
that the owner/landlord disclose their status as REALTORS |
|
|
who mandates that the disclosure be documented when the owner/seller is also a licensee?
where must the disclosure be documented? |
NAR - National Assn of Realtors Standards of Practice
disclosure must be documented on the sale contract |
|
|
when adding a licensees phone number to an advertisement what must be indicated to differentiate the number from that belonging to a brokerage firm? |
it should indicate cell, mobile, direct or something similar |
|
|
what is advertising considered to be under Florida law? |
a broker activity |
|
|
does FREC have jurisdiction over the title company or an attorney when handling escrow funds? |
No - FREC only has jurisdiction over broker's escrow accounts |
|
|
what rules require brokers to be a signatory on all of their brokerage escrow accounts? |
FREC rules |
|
|
what is active income? |
a |
|
|
what constitutes a first degree misdemeanor and what is the fine? |
failing to provide accurate and current rental information for a fee
the fine is not more then $1000 and/or up to one year in jail |
|
|
what constitutes a third degree misdemeanor and what is the fine? |
for a person to perform real estate services for compensation without a real estate license
the fine is not more then $5000 and/or up to five years in jail |
|
|
what are the three types of penalties that may be imposed for violations of the real estate license law? |
|
|
|
give examples of administrative penalties? |
denial of license application or renewal notice of noncompliance citation probation fine suspension revocation letter of reprimand |
|
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how much can citations issued from the DBPR be? |
ranging from $100 to $500 |
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what is a suspension and what is the maximum time a license can be suspended? |
it is a temporary penalty for violation of Florida law depending on seriousness
maximum is 10 years |
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what is the most severe type of administrative penalty the FREC is authorized to impose? |
revocation of a license - this is permanent
can also impose a $5000 fine |
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when can civil penalties be imposed? |
when a person has performed any real estate services without a license. court may rule no commission is due |
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how long does licensee have to accept or reject a violation as specified in the citation? |
30 days |
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what are the seven steps involved in the process of dealing with complaints of alleged violations? |
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Civil Rights Act of 1968 (Fair Housing Act) |
contained in Title VIII which prohibits dis basis of race, color, religion, sex, and national origin when selling or renting residential property |
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The Fair Housing Act of 1968 was amended to include two additional protected classes. What were they? |
1. Familial status
2. handicap status |
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what are the conditions that must be met when a home is involuntarily alienated by adverse possession? |
H- Hostile possession of the property w/o owners consent O-Open possession with no attempt to conceal occupancy T-Taxes paid on the property by the adverse possessor during all the years of possession C-Claim of title exist A-Adverse possession must continue for seven or more consecutive years without the consent of the owner N- Noorious and flagrant public possession of the property |
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regarding involuntary alienation, what is descent? |
when a person dies intestate (without a will) all the property deceased owned at the time of death passes (descends) to the legal descendants |
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what is interval ownership with regard to time-sharing? |
fee simple ownership and contains the same rights as any other property conveyed by deed |
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what is the right-to-use ownership with regard to time-sharing? |
rights granted with the right-to-use forms of time-sharing are temporary in nature |
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what is a remainder estate ?
what is a vested remainderman?
what is a contingent remainderman? |
occurs when property goes to a 3rd party
refers to someone whose legal name is provided
refers to someone whose legal name is not specified (i.e. first born child) |
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how and when must the DBPR be notified when a sales associate has a change of employer? |
must file a change of status for sales associates & broker sales associates form disclosing the name/address of the new employer
within 10 days |
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what is the fine for licensees for representing themselves as REALTORS when they are not current NAR members? |
$300 |
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what business entities may not register as a real estate broker? |
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what type of business entities may register as a real estate broker? |
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can sales associates and broker associates be general partners in a real estate brokerage partnership?
can they be limited partners in a limited partner relationship? |
No
Yes |
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how long does the broker of record need to be replaced in the event of death, resignation, or moving from office? |
within 14 calendar days |
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what is the result of failing to timely appoint another active broker in a partnership? |
automatic cancellation of the partnership registration and...
the licenses of all people associated with the partnership will become involuntarily inactive |
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what is a tort? |
wrongful act |
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who must a real estate limited partnership register with?
real estate brokerage general partnership?
limited liability partnership?
corporation? |
DBPR
DBPR
Florida Department of State
Florida Department of State |
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what is a foreign corporation? |
a corporation organized under the laws of another state but that does business in Florida |
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what is a domestic corporation? |
incorporated in the state of Florida and do business in Florida |
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who must be licensed as an active broker in a real estate brokerage corporation? |
at least one of the officers or directors must be licensed as an active broker |
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in a real estate brokerage corporation can active Florida brokers, inactive Florida brokers, and unlicensed people serve as officers and directors? |
yes, but they must be licensed as active brokers if dealing with the public and performing services of real estate |
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how must all officers and directors who are not licensed register with the DBPR for identification purposes? |
in the information section of the brokerage corporation application and include each individuals: name residence address office held percentage of ownership |
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can inactive brokers and unlicensed individuals perform managerial functions for the brokerage coporation? |
yes, managerial functions such as administrative matters, book keeping and accounting may be performed |
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can sales associates and brokers associates be an officer or director in a real estate brokerage corporation? |
no, they can be issued a citation and fined |
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how long does a vacancy need to be filled if the only active broker of a brokerage corporation dies, resigns, or is removed from office? |
14 calendar days |
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what is a business trust? |
a form of business entity that may be created to engage in transactions involving its own real property
can not be registered as a real estate broker |
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what is a cooperative association? |
a business entity permitted to conduct commercial business and to convey, sell, or buy its own property
but cannot register as a real estate broker |
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what are unincorporated associations? |
groups of people associated for some noncommercial common purpose
(i.e. group of property owners in subdivision who organize for maintenance, landscape, and trash removal) |
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what is a trade name? |
a business name other than the legal name of the person doing business |
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what is the method of degree of attachment? |
if removing the item would result in damage to real property, the article is classified as a fixture
(a set of built-in storage cabinets in the utility room would normally be considered a fixture if removing it would damage the wall) |
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what is adaptation of the item |
if the item is adapted or custom built to fit the property, it will likely be considered a fixture even though it is movable
(i.e. hurricane shutters are considerd fixtures because they are custom-made to fit specific windows even though they are not on the windows at all times |
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what is the right of disposition? |
the right to sell, mortgage, dedicate, give away, or otherwise dispose of all or a portion of the property |
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what is the right of quiet enjoyment? |
the right to enjoy and use the property without interference |
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what is the right of exclusion? |
the right to keep others from trespassing by entering or using the property without permission |
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what is the right of possession |
the right to occupy the property in privacy. an owner acquires the right of possession of a property on the day the owner has legal title even though the owner may not have set foot on the land itself |
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what are liquidated damages? |
a remedy for breach of contract usually the earnest money to be paid in case of default |
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what is rescission? |
a remedy for breach of contract to rescind is to cancel or annul the contract |
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what is compensatory damages? |
a remedy for breach of contract by a lawsuit for damages |
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what is specific performance? |
a remedy for breach of contract where the wronged party may sue for specific performance to have the courts force the other party to perform as the contract specifically states (also called a relief in equity) |
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what is a formal contract? |
historically it was in written form and under seal
the word seal or the letters L.S. illi or "place of the seal") appears after the signatures of parties signing the contract |
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what are junior liens? |
mortgage liens judgment liens vendor's liens income tax (IRS) liens
to be settled after superior liens |
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what is a gross lease? |
the tenant (lessee) pays a fixed base rent and the landlord (lessor) pays all expenses associated with the property including taxes, utilities, insurance and repairs |
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whati s a net lease? |
typically used on commercial properties where the tenant (lessee) pays a fixed rent plus property costs such as maintenance and operating expenses (taxes, insurance, and utilities)
triple net is used in commercial real estate |
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what is a percentage lease? |
the tenant pays rent based on gross sales received by doing business on the leased property. common with large re, especially in shopping centers (can be gross or net) |
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what is a variable lease? |
tenant pays specified rent increases at set future dates
usually tied to an index such as consumer price index (CPI) |
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what is a ground lease? |
tenant leases the land only and erects a building on the land
long term leases that run for terms up to 99 years |
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what are the most important subcategories of government restrictions? |
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what is the premises section of a deed? |
names the parties to the deed and the date of the deed and the granting caused used to convey property |
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what is the habendum clause of a deed? |
"to have and to hold" either forever (fee simple) or for the life of the grantee (life estate)
also lists any restrictions or limitations on the properties use |
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what is an assignment of mortgage? |
when ownership of a mortgage is transferred from one company or individual to another |
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what is a mill? |
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what is Florida's Green Belt Law |
authorizes county property appraisers to assess agricultural land by a more favorable method than that used for other properties |
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What is the Save Our Home amendment? |
a part of the Florida Constitution that caps how much the assessed value of homesteaded may increase in a given year |
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review math problems and formulas |
see handout |
