Florida Real Estate Exam Study Guide: Key Concepts & Definitions
PMI =Private mortgage insurance
Commission = Florida Real Estate
Commission (FREC)
Commission (FREC)
Department= The Department Of Business and Professional Regulation
Division= Division Of Real Estate (DRE)
A sales Associate can only work for one broker at a time.
An owner-Developer is registered with the Department but has no Real Estate License.
License & Registration: keeping records of the name and address of an individual or business.
Having a valid real estate license is considered Prima facie evidence
Sales Associate 1st Renewal – must complete the 45 hour postLicense if he fails he will be VOID.
continuing Education is only 14 hours if the licensee did not meet the dead line the license will be Involuntary Inactive
continuing Education is only 14 hours if the licensee did not meet the dead line the license will be Involuntary Inactive
Attorney in fact :has power of Attorney
Attorney at law : may perform legal services but not receive commission.
Quasi-legislative power:gives the commission the power to make and pass rules to regulate Real Estate.
Group License-only a sales agent or Broker associate can get this
Multiple Licence- only brokers can get this
Administrative Law- statutes can authorized the creation and operation, administer and enforce certain laws.
Special Agent – Authorized to perform on a single act.
General Agent- has the principals authority to act for him on continuing
Universal Agent-Authorized to act for the principal in all matters, generally by a power of attorney.
Single Agent is a broker who represents as a fiduciary to a seller or buyer but not both in the same transaction.
Transaction Broker provides limited representation to a buyer or seller or both but does not represents either in Fiduciary
Referral Fees can be paid to another person from out of state as long as they do not participate on the sale transaction.
Branch offices must be registered with the department, a broker must have a sign with his name and name of the branch.
Personal Transactions are allowed by licensee as long as they use disclosure of their license to the general public.
Earnest money deposit show a good faith from the buyer.
an Escrow account may be held in a commercial bank,title company ,credit union.
Limited Partnership consist of at least one general partner and one limited partner.
Limited Partnership consist of at least one general partner and one limited partner.
blockbusting is inducing an owner to list or sell on the basis of that neighborhood.
Steering is in-directing into away from a location.
Redlining is refused loan based on location and race. ADA act was passed in 1990.
Steering is in-directing into away from a location.
Redlining is refused loan based on location and race. ADA act was passed in 1990.
Real Estate is physical and immobile. Real Property is physical land
Riparian rights are property borders waterway such a river.
Littoral rights are rights of owners of property with non flowing water like a ocean,sea or lake. Erosion= loss of land… Accretion adds land by mother nature.
Littoral rights are rights of owners of property with non flowing water like a ocean,sea or lake. Erosion= loss of land… Accretion adds land by mother nature.
the 4 test by court are intent,relationship,method of annexation,adaptation(IRMA)
Freehold Estates is an estate involving ownership.Estate in severalty is one onwer, tenancy incommon has a co-owner or multiple owners, joint tenancy is right of survivalship.
Elective share is 30% of surviving spouse.
Homestead Rights- cannot be forced to sell the land if debt is owe.
Constructive noticed- recording documents in public records
Voluntary Alienation – separated by choice such as a deed or in a will.
Involuntary Alienation – no will and no kids. Escheat- returns to the GOVT
Adverse possesion- true owner failed to eject trespassers.
Premise Clause is a description of the deed
Quitclaim deed contains no warrants of any kind.
General warranty deed has everything and its the best one to have.
Eminant domain allows the government to take private property to make Govmt buildings.
Gross lease- Flat fee rent
Net Lease – rent , taxes,fees+insurance
Percent lease – Gives landlord a percent for selling from home
Real estate property taxes is also a super Lien
Metes and Bounds is the most accurate method
point of beginning is a primary reference of point.
a township is 6 miles square and contains 36 square miles. The checks have 24 miles.
Plat Method identifies the folio #..Assessors parcel number (APN) is a unique number of the property
Agreement- when a contract is reached.
consideration-a promise of future money
status of limitations are oral contracts action must be made within 4 years.
written contract has 5 years to enforce action.
Acceptance-offer is accepted by the parties be comes a contract
withdraw- an offer can be withdraw at any time
Exclusive right of sale listing- best way to sell
Exclusive agency listing- owner hires a broker to sell the property, but if the owner finds a buyer he does not need to pay the broker.
Contract for deed has conditions on the sale.
Promissory note – is a promise to repay the loan or debt with interest
Lien theory allows borrower to retain the ownership of the property during a loan period.
Equity of redemption is a way for a borrower to cure the default before foreclosure.
Conventional mortgage loans are not insured by an agency or government
Index can only go 2% per year
Binder deposit – when the contract was 1st entered the binder or earnest money deposit.
day of closing belongs to the seller or buyer depends on the prorate and closing date
liquidation value is the amount that remains after all assets of a business have been sold.
Principal of highest and best use is the best way to use the land.
External obsolescence is a loss in value caused by factors beyond the boundaries like effective age.
GRM gross rent multiplier is sales price divided by rent.