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210 Cards in this Set
- Front
- Back
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Registration |
The official placement of a real estate business or individual into the records of the DBPR |
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Active license |
A current, valid license registered with the DBPR. The status required to actively engage in the real estate business. |
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Current status |
Indicates whether the licensee is up-to-date with respect to the DBP r's licensure requirements |
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Broker |
A licensee who, for another and for compensation or other consideration, performs real estate services |
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Florida resident |
A Florida resident, for application and licensing purposes, is a person who has resided in Florida continuously for a period of 4 calendar months or more within the preceding year, regardless of whether the person resided in a recreational vehicle, hotel, rental unit, or other temporary or permanent location |
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Owner-developer |
An unlicensed entity that sells, exchanges, or leases its own property |
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Sales associate |
A licensed individual who performs real estate services for compensation under the direction, control, and management of an active broker or an owner-developer |
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Cancel |
When a license becomes void, effective as of the date approved by the commission, and does not involve disciplinary action |
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Executive powers |
The Florida Real Estate Commission (FREC) includes the power to regulate and enforce license law |
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Broker associate |
An individual who meets the requirements of a broker but who chooses to work in realestate under the direction (employ) of another broker |
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License |
A written document issued by the Department of Business and Professional Regulation (DBPR) that serves as prima facie evidence that the person is licensed on the date shown |
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Prima facie evidence |
A legal term used to refer to evidence that is good and sufficient on its face to establish a given fact or prove a case |
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Sealed |
Records that cannot be examined except by order of the court or by designated officials |
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Cease to be in force |
When certain events occur, such as a broker changes business address, the licensee cannot conduct business until the DBPR receives notification of the change |
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Group license |
A sales associate or broker associate employed by an owner-developer who owns properties in the name of various entities can be issued a group license that entitles the licensee to work for the separate sales projects owned by the owner-developer |
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Compensation |
Anything of value for a valuable consideration, directly or indirectly paid, promised, or expected to be paid or received |
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Mutual recognition agreement |
A transactional agreement between Florida and another state that provides for the two states to recognize each other's real estate license education |
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Real estate services |
Real estate activities involving compensation for performing the activities for another |
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Withhold ajudication |
When the court determines that a defendant is not likely to again engage in a criminal act and that the ends of justice and the welfare of society do not require that the defendant suffer the penalty imposed by law, the court may withhold adjudication of guilt, stay (stop) the imposition of the sentence, and placed the defendant on probation |
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Current mailing address |
The current residential address a licensee uses to receive mail through the United States Postal Service |
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Involuntary inactive |
The license status that results when a license is not renewed at the end of the license period |
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Expungement |
A process by which the record of a criminal conviction is destroyed or sealed after expiration of time |
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Nolo contendere/ No contest |
A plea of no contest entered in a criminal court of law - the defendant does not admit or deny the charges |
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Reciprocity |
The practice of mutual exchanges of privileges. Some states have reciprocal arrangements for recognizing and granting licenses to licensed real estate professionals from other states |
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Caveat emptor |
"Let the buyer beware" Buyer is responsible for their own knowledge in the real estate transaction |
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Promulgate |
The formal act of enacting a statute or administrative rule |
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Ministerial duties |
Ministerial duties of the Division of Real Estate (DRE) involve recordkeeping |
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Voluntary relinquish |
When a person no longer wants to engage in a real estate business, provided there is no investigation or discipline pending against the licensee |
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Common law |
Judge-made law manifested in decrees and judgments of the courts (case law) as opposed to statutory law |
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Quasi-judicial |
Powers delegated to the FREC include the power to grant or deny applications, to determine license law violations, and to administer penalties |
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Multiple licenses |
When a broker holds more than one broker's license at one time, the broker is said to hold multiple licenses |
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Administrative law |
A body of law created by administrative agencies in the form of rules, regulations, orders, and decisions |
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Consent to transition |
A written agreement to gain the principal's written permission to a change in brokerage relationship |
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Quasi-legislative |
Powers delegated to the FREC to enact rules and regulations and to decide questions of practice |
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Null and void |
Means to no longer exist |
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Agent |
A person entrusted with another person's business. An agent is authorized by the principal to act on the principal's behalf |
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Customer |
A member of the public who is or may be a buyer or a seller of real property and may or may not be represented by a real estate licensee in an authorized brokerage relationship |
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Voluntary inactive |
The license status that results when a licensee has met all the requirements for licensure, yet the licensee chooses not to engage in the real estate business and has requested that the license be placed in the status |
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Probation |
The licensee is allowed to continue to practice real estate under the guidance of the FREC for a period of time while completing conditions specified by the FREC |
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At arm's length |
People dealing at arm's length conduct negotiations on their own behalf without trusting the others fairness or integrity and without being subject to the other's control or influence |
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Escrow Dispersement Order (EDO) |
A determination by the FREC of who is entitled to disputed funds |
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Residential sale |
This sale of improved residential property of 4 or fewer units, the sale of unimproved residential property intended for use as 4 or fewer units, or the sale of agricultural property of 10 or fewer acres |
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Subagent |
A person authorized to assist and represent the agent. A subagent has the same duties as the agent |
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Blind advertisement |
An advertisement of a listed property that provides only a telephone number, a post office box, and/or an address without the licensed name of the brokerage firm |
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Limited representation |
A non-fiduciary representation to a buyer, seller, or both in a real estate transaction |
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Designated sales associates |
Two real estate licensees designated to represent the buyer and the seller as single agents in a non residential transaction. The buyer and the seller must have assets of $1 million or more and sign disclosures stating that their assets meet the required threshold |
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General partnership |
An association of two or more persons for the purpose of jointly conducting a business, each being responsible for all the debts incurred in the conducting of that business |
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Single agent |
A broker who represents either the buyer or the seller (but not both) and has a fiduciary relationship with the party represented |
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Transaction broker |
A broker who provides limited representation to a buyer, a seller, or both in a real estate transaction but does not represent either in a fiduciary capacity or as a single agent |
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Commingle |
The mixing of a buyer's, seller's, tenant's, or landlord's funds with the broker's own money or mixing escrow money with the broker's personal funds or brokerage funds |
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No brokerage relationship |
An arrangement in which the broker does not represent either the buyer or the seller but in which the broker instead works to facilitate the transaction |
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Dual agency |
A broker who's representing as a fiduciary both the buyer and seller in a residential real estate transaction; dual agency is illegal in Florida |
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Good faith doubt |
A party's honest intent to transact business, free from any intent to defraud the other party; each party's faithfullness to one's duty or obligation set forth by contract |
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Special agent |
One authorized by a principal to perform a particular act or transaction without contemplation of continuity of service as with a general agent |
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Antitrust laws |
State and federal laws designed to maintain and preserve business competition |
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Conflicting demands |
When the buyer and the seller make demands regarding the dispersing of escrowed property that are inconsistent and cannot be resolved |
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Nonrepresentation |
A no brokerage relationship |
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Fiduciary |
A relationship of trust and confidence with the broker as agent and the seller or the buyer as principal |
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Immediately |
The time frame when trust funds must be deposited into an escrow account, according to chapter 475, F.S. |
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Statutory laws |
Written statutes and rules enacted by the legislature |
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Arbitration |
A process whereby, with the prior written consent of all parties to the dispute, the matter is submitted to a disinterested third party who makes a binding judgment |
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Corporation |
An artificial person or legal entity created by law and consisting of one or more persons that is formed by filing articles of incorporation |
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Principal |
The seller or the buyer (but not both) in a single agent relationship. The principal authorizes the agent to act on their behalf; the principal is responsible for the actions of the agent |
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General agent |
A general agent is authorized by the principal to perform acts associated with the continued operations of a particular job or a certain business of the principal |
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Legally sufficient |
A complaint that contains facts indicating that a violation of a Florida statute, a DBPR rule, or a FREC rule has occurred |
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Notice of noncompliance |
Issued by the DBPR for a first-time, minor rule violation that does not endanger the public health, safety, and welfare |
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Professional association (PA) |
A business corporation consisting of one or more individuals engaged in a primary business that provides a professional service |
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Ostensible partnership |
Exists where the parties do not form a real partnership but act or do business in such a manner that the public, having no knowledge of the private relations of the parties, would reasonably be deceived into believing that a partnership exists |
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Limited partnership |
A business entity consisting of one or more general partners and one or more limited partners |
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Declaratory judgment |
Filed with the judge in a court of law by brokers who believe they are entitled to a portion of disputed escrow funds |
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Interpleader |
A legal proceeding whereby the broker, having no financial interest in the disputed funds, deposits with the court the disputed escrow deposit so that the court can determine the rightful claimant |
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Material fact |
A piece of information that is relevant to a person making a decision and that affects the value of real property |
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Probable cause |
Reasonable grounds to warrant prosecution |
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Sole proprietorship |
A business owned by one person with no legal separation between the owner and the business |
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Personal assistant |
Individual hired by a licensee to perform administrative tasks associated with real estate transactions. The tasks performed by personal assistant determine whether the assistant must be a real estate licensee |
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Litigation |
One of the settlement procedures that provides for the matter to be resolved in a court of law when there are disputing parties regarding escrow funds |
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Deposit |
A sum of money, or its equivalent, delivered to a real estate licensee as earnest money, payment, or partial payment in connection with a real estate transaction |
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Kickback |
When a broker receives money from someone other than buyer or the seller, such as for referring a buyer or a seller to a particular vendor for services |
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Misrepresentation |
An untrue statement of fact or an incorrect or false representation of the facts |
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Recommended order |
An administrative law judge's findings, conclusions, and recommended penalty |
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Telephone solicitation |
The initiation of a telephone call for the purpose of encouraging the purchase of, or investment in, property, goods, or services |
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Point of contact information |
Any means by which to contact a brokerage firm or individual licensee including mailing address, physical address, email address, telephone number. The brokerage firm's name must be above, below, or adjacent to the point of contact information |
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Market allocation |
An agreement between brokers to split up compared of market areas among themselves and not compete in each other's areas |
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Earnest money deposit |
Money given as good faith to accompany an offer to purchase or leased real property; also called a good-faith deposit or binder deposit |
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Limited liability company (LLC) |
A form of business organization that offers the best features of a corporation and a partnership; members of an LLC are protected from personal liability, as in a corporate form of ownership, and enjoy the tax advantages of a partnership |
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Moral turpitude |
Conduct contrary to honesty, good morals, justice, and accepted custom |
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Stipulation |
An agreement as to the penalty reached between the attorneys for the DRE and the licensee or licensee's attorney |
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Trade name |
A business name other than the legal name of the person doing business |
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Price-fixing |
Competing brokers conspire to establish a standard commission rate rather than let the rate be set by the open market |
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Mediation |
An informal, nonadversarial process intended to reach a negotiated settlement that is not binding |
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Escrow account |
An account for the deposit of money held by a third party in trust for another for safekeeping |
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Limited liability partnership (LLP) |
A business entity that features protection from personal liability in much the same way as limited partners in a limited partnership |
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Proprietary lease |
The document that entitles a shareholder in a cooperative to possession of a unit |
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Life estate |
A Freehold a state that ends with the death of a named person; ownership for an individual's natural lifespan |
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Time-share |
Ownership that involves an undivided interest in a living unit according to the number of weeks purchased |
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Tenancy at sufferance |
Exists when the tenant, after rightfully being in possession of the rented property, continues possession after the tenant's right has ended (a holdover tenant) |
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Remainderman |
The third party to whom property is transferred at the end of a life estate |
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Culpable negligence |
Negligent conduct that, while not intentional, involves a disregard for the consequences likely to result for one's actions |
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Unilateral contract |
An agreement that obligates only one party to perform |
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Liquidated damages |
The amount of valuable consideration specified in an agreement as a penalty for default |
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Community Association Manager (CAM) |
A person who holds a CAM license and manages community associations of more than 10 units or associations with an annual budget in excess of $100,000 |
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Acre |
A measure of land area = 43560 ft² |
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Special exception |
Permission to build or use property in apparent conflict with existing zoning ordinances |
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Follow-up |
What a sales associate does after a sale to maintain customer contact and goodwill |
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Wetlands |
Areas with groundwater levels at or near the surface for much of the year or areas that have aquatic vegetation |
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Legal description |
A series of boundary lines on the Earth's surface to identify the boundaries of a land parcel |
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Variance |
Allows property owners 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 |
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Government survey system |
A type of land description developed by the federal government for subdividing lands utilizing surveying lines |
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Laissez-faire |
Noninterference by government in trade, industry and individual action |
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Mixed land use |
More than one type of zoning, such as a condominium that has residential and commercial units |
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Building permit |
A document issued after local government has review of the architectural and engineering drawings and the energy calculations |
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Check |
Formed when two guide meridians and 2 correction lines intersect to form a 24-by-24-mile square |
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Subdivision plat map |
A plan of a tract of land subdivided into lots and showing required or planned amenities, streets, and utilities that is submitted to a local government agency |
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Environmental impact statements |
Statements that summarize the effect that proposed development will have on the surroundings |
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Health Ordinances |
Local codes that regulate maintenance and sanitation of public spaces |
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Asbestos |
A mineral fiber used until 1978 in a variety of building construction materials for insulation and as a fire retardant |
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Target market |
A specific group of prospects chosen because of its demographic, financial, and lifestyle characteristics |
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Net listing |
A listing created when a seller agrees to sell a property for a stated acceptable minimum amount |
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Community development district (CDD) |
An independent special district created by law to service the long term needs of its community |
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Planned unit development (PUD) |
A self-contained development planned under special zoning ordinances that allow maximum use of open space by reducing lot sizes and street sizes |
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Comprehensive plans |
Master plans for the future physical development of a city, county, or region |
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Voidable contract |
Allows one of the parties to avoid contractual duties |
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Building inspections |
Conducted by county officials during construction to confirm that the workmanship conforms to the building code |
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Base lines |
Imaginary lines running East and West and crossing a principal Meridian at a definite point; used by surveyors for reference in locating and describing land under the government survey system |
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Attorney-in-fact |
A person who is authorized to perform certain acts for another under a power of attorney |
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Valuable consideration |
The money or a promise of something that can be measured in terms of money |
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Valid contract |
Binding on both parties and is legally enforceable |
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Meeting of the minds |
To reach an agreement on all terms in a contract |
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Homeowners associations |
Responsible for the operation of a community in which the voting membership is made up of parcel owners |
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Assignment |
A transfer of rights and duties under a contract |
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Intensity |
The concentration of pedestrian traffic and the Hickie lower traffic used as a means of designating land for commercial zones |
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Building codes |
Government ordinances regulating construction practices and materials |
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Exclusive-agency listing |
Employment contract given to one realestate broker, but the seller reserves the right to sell the property without paying a commission |
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Title insurance |
A contract that protects the policyholder from losses resulting from defects in the title |
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Environmental due diligence |
The process by which a purchaser evaluates the likelihood of site contamination |
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Void contract |
Does not meet all the required elements of a valid contract and has no legal effect |
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Good consideration |
A promise that cannot be measured in terms of money, such as love and affection |
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Warranty forever |
A promise in a general warranty deed guaranteeing that the grantor will forever warrant and defend the grantee's title against all unlawful claims |
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Impact fees |
Charges by local governments to fund major off-site improvements |
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Buffer zone |
A strip of land separating one land use from another |
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Enforceable contract |
A legally binding contract that the law will recognize |
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Automated valuation models (AVMs) |
Data analysis compiled using a computer database of closed sales |
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Cost |
The amount to produce or acquire something |
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Purpose of appraisals |
To determine the problem to be solved and the type of value to be estimated |
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Reconciliation |
The process of weighting the estimates of value derived from the sales comparison, cost, and income approaches to arrive at a final estimate of market value |
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Progression |
Principle that states the value of an inferior property is enhanced by its association with superior properties of the same type |
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Principle of substitution |
Principle that states a prudent buyer or investor will pay no more for a property than the cost of acquiring and equally desirable substitute property |
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Depreciation |
Loss in value caused by things such as wear and tear, poor design, or the structures surroundings |
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Economic life |
The total estimated time in years that an improvement will add value |
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Reproduction cost |
Amount required to duplicate the property exactly |
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Sales comparison approach |
A method for estimating the market value of a property by comparing similar properties to the subject property |
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Replacement cost |
The amount of money required to replace a structure having the same use of functional utility as the subject property, using modern, available, or updated materials |
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Regression |
Principle stating that the value of a superior property is adversely affected by its association with an inferior property of the same type |
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Federally related transactions |
Any real estate-related financial transaction that a federal financial institution regulatory agency has either contracted for, or regulates, and requires the services of an appraiser |
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Gross income multiplier (GIM) |
The ratio between a property is gross annual income and its selling price |
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Vacancy and collection losses |
The expected income loss that will result from occasion a turnover of tenants and periodic vacancies as well as the likelihood that not all the rental income will be collective |
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Value |
The worth of something |
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Uniform Standards of Professional Appraisal Practice (USPAP) |
A set of guidelines to follow when conducting appraisal services |
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Subject property |
The property being appraised |
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Primary market |
A market where securities are created |
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Principal |
The unpaid balance of the debt |
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Purchase money mortgage (PMM) |
Any new mortgage accepted by the seller as part of the purchase price |
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Receivership clause |
Allows a receiver to be appointed to collect income from the property to ensure that it is used to make mortgage payments in the event of default |
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Appraisal |
And opinion of value based on supportable evidence and approved methods |
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Assemblage |
The combining of 2 or more adjoining properties into one tract; the process of consolidating properties |
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Reserve requirements |
The amount of funds that an institution must hold in reserve against deposit liabilities |
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Reverse mortgage |
A type of mortgage that enables elderly homeowners to borrow against the equity in their homes so they can receive monthly payments needed to help meet living expenses |
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Secondary mortgage market |
An investor market that buys and sells already existing securities |
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Special information booklet |
A booklet containing consumer information regarding closing costs that the borrower may be charged at closing |
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Cost approach |
A method for estimating the market value of a property based on the cost to buy the site and to construct a new building on the site, less depreciation |
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Curable depreciation |
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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Teaser rate |
A below-market interest rate usually offered for the 1st year on some adjustable-rate mortgages |
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Triggering terms |
Certain credit terms or specific financing information included in an advertisment, triggering terms include the amount or percentage of down payment, number of payments, period of repayment, amount of any payment, and the amount of any finance charges |
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Truth in lending act (TILA) |
A federal law that is part of the consumer credit protection act and implemented by the federal reserve board's regulation Z, the act ensures that borrowers and customers of consumer credit are given information regarding the cost of credit so that consumers can compare credit terms available |
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Up-front mortgage insurance premium (UFMIP) |
Hey one-time mortgage insurance fee paid at closing on FHA mortgage loans |
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Effective age |
The age indicated by structures condition and utility |
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Effective gross income (EGI) |
The resulting amount when vacancy and collection losses are subtracted from potential gross income |
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Fannie mae |
An institution in the secondary mortgage market that buys and sells mortgages |
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Freddie Mac |
A secondary mortgage market institution that buys and sells conventional, FHA, and VA loans |
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Mortgage lender |
A business entity that originates, cells, and then services mortgage loans |
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Ginnie mae |
A federal agency that is part of the department of housing and urban development |
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Mortgage insurance premium (MIP) |
A premium for mortgage insurance on FHA mortgages to protect the lender from loss in the event of a default |
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Index |
The rate to which an adjustable I fin rate loan is tied; at set adjustment periods, the borrower's interest rate moves up or down as the index rate changes |
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Intermediation |
Financial institutions serve as intermediaries between depositors and borrowers |
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Open market operations |
Purchase and sale of US Treasury and federal agency securities |
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Level-payment plan |
A mortgage in which the monthly payments are a fixed amount, but the amount applied to principal increases each month and the amount applied to interest decreases each month |
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Non conforming loans |
These loans exceed the Fannie Mae loan amount |
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Loan estimate |
A form that contains information about the lender, property, loan terms, projected payments, and total estimated cost at closing |
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Margin |
The percentage that is added to the index to calculate each interest rate change in an adjustable-rate mortgage |
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Periodic caps |
Limit the amount the interest rate may increase at any one time, usually a year |
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Monetary policy |
The actions undertaken by the Fed to influence the availability and cost of money and credit |
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Payment caps |
Limit the amount of monthly payments can increase during any adjustment |
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PITI |
The monthly principal, interest, taxes, and insurance payment charged on a mortgage loan |
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Takeout commitment |
A commitment by a permanent lender to "take out" the interim lender by paying off the construction loan, leaving the developer with a permanent long term loan once the project is complete |
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Note |
The legal instrument that represents the evidence of a debt and a promise to repay the debt |
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Title theory |
States consider the mortgagee to have legal title to the mortgaged property, and the mortgagor has equitable title until the debt is repaid |
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Novation |
The substitution of a new buyer and release of a former seller for an existing debt by mutual agreement and with approval of the mortgagee |
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Mortgage broker |
A person or business entity who conducts loan originator activities through one or more licensed mortgage loan originators |
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Entitlement |
The maximum amount for an individual veteran that the government will guarantee for a VA loan |
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Mortgage fraud |
The intent to materially misrepresent or omit information on a mortgage loan application to obtain a loan or to obtain a larger loan then would have been obtained if the lender or the borrower had the true facts |
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Assignment of mortgage |
A legal instrument that States that the mortgagee assigns or transfers the mortgage and the promissory note to the purchaser |
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Equity |
The property's value minus debt |
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Tax shelter |
An investment that shields income from payment of income taxes |
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Proration |
To divide various debts or charges and credits between buyer and seller; a proration is a shared expense between the buyer and the seller |
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Estoppel certificate |
A written statement signed by the borrower verifying the amount of the unpaid balance, the rate of interest, and the date to which the interest has been paid prior to the assignment |
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Interest |
The cost for the use of borrowed funds |
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Range |
A six-mile-wide vertical (North & South) strip of land enclosed between two range lines |
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Asset |
Anything of value |
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Leverage |
The use of borrowed funds to finance the purchase of an asset; the use of another's money to make more money |
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Lis pendens |
Notice of pending legal action; it is filed before initiating a lawsuit |
