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Terms in this set (143)
licensees require expert knowledge of the following areas
property transfer, valuation and market conditions, and marketing
concentrate on one type or style of property or a particular neighborhood
manage income-producing properties on behalf of absentee owners
highly specialized service, generally requiring more knowledge and experience than the other specializations
-The sales of any improved residential property of 4 units or fewer
-Unimproved property intended for 4 units or fewer
-Agricultural properties of 10 acres or less
-include leases with options to purchase all or a portion of improved property of 4 or fewer residential units, and disposition of business interests involving property of 4 or few residential units.
opinion of value
fee is based upon the difficulty of the assignment and the time required performing the assignment
Uniform Standards of Professional Appraisal Practice (USPAP)
appraisals used by federally regulated lenders in federally related transactions must be performed by a registered, licensed, or certified appraiser and developed
Mortgage loans can be obtained through a variety of sources, including
mortgage companies, commercial banks, savings and loans, credit unions, life insurance companies, trusts, and individuals
mortgage loan originators
do not make loans; they arrange loans between a borrower and a lender
Speculative building (or building on spec)
a builder builds on his or her lot before securing a buyer
a type of spec building where the developer uses model homes
Custom (contract) building
building on the customer's lot according to their plans and specifications
member of NAR
Local Association of REALTORS®
membership also provides membership in FAR, NAR, and access to the multiple listing service (MLS).
planning and zoning, property taxation, building and health codes, and building moratoriums
real estate licensing, statutes, and rules, developments of regional impact (DRI) and other factors that affect multiple jurisdictions impacted at the state level
legislation affecting the lending institution and monetary policy adopted by the Federal Reserve System
The first Florida Real Estate Commission (FREC) was created in
A Florida license is required when performing a service of real estate under the following simultaneous conditions:
Performing a service of real estate (A BAR SALE: Appraising, Buying, Auctioning, Renting, Selling, Advertising, Leasing, or Exchanging)
In the state of Florida
may answer questions concerning a listing from which the answer must be obtained from the licensed employer
Attorneys and certified public accountants acting within the scope of their practice
Attorneys-in-fact operating under a power of attorney
Court appointees (trustees, receivers, masters in chancery, and court-appointed appraisers) if they are paid a fee or salary, but not a commission
Salaried employees of government agencies, railroads, rural electric cooperatives, or public utilities, performing real estate services for their employer
Salaried employees of property owners, or of a registered broker for an owner, working in an offsite rental office of an apartment community in a leasing capacity
Individuals performing services for themselves
Partnership owners who receive no more than their pro rata share of profits
Corporations that sell, exchange, or lease its own property
Salaried employees of individuals, partnerships, or corporations who own real estate, performing services on behalf on their employers, receiving salary only
Persons who deal strictly in personal property transactions (a mortgage is personal property; MLOs require a mortgage license)
Cemetery lot salespeople
Persons renting lots in mobile home parks and recreational vehicle parks
Salaried managers of condo or coop complexes if rentals are for one year or less
Radio, television, or cable enterprise employees performing services on behalf of their employer that relate to the sales, lease, or transfer of the FCC license to broadcast (not the building or land)
Full-time graduate students enrolled in a FREC-approved appraising degree program under the supervision of a licensed or certified appraiser
Owners of one or more timeshare periods for the owner's use and occupancy
Timeshare exchange companies
Appraisers who are registered, license, or certified to perform appraisals under F.S. 475, Part II, or who appraise under the unit-rule method of valuation of a railroad or railroad terminal company
Persons or entities renting or advertising for transient occupancy (hotels, motels, rooming houses)
Property management firm or an owner for paying a finder's fee of up to $50 to an unlicensed person for referring tenants to the complex
Dealers registered with the SEC selling businesses to accredited investors
nonresidents of Florida who have been actively licensed in another state to bypass the pre-licensing course requirements when obtaining a Florida real estate license
pass a 40-question law exam, which qualifies the licensee for an initial Florida license.
Mutual recognition states
Alabama, Arkansas, Connecticut, Georgia, Illinois, Mississippi, and Nebraska
The head of the DBPR
appointed by the governor, subject to Senate confirmation
secretary of DBPR
The head of the DRE
appointed by the secretary
members of the FREC
four brokers who have been actively licensed for five years
one broker, broker associate, or sales associate who has been actively licensed for two years
two lay members.
one member must be at least 60
4 year terms
publishing books and newsletters, investigating complaints, and fostering the education of applicants and licensees.
enacting rules regulating the practice of real estate and for the FREC's own internal affairs.
how to make FREC rules effective
must be filed with the secretary of state
what power does the FREC have to authenticate proceedings, records, and acts.
certificates authenticated by the seal
disciplanary authority of the FREC
a reprimand, an administrative fine up to $5,000 per offense, be placed on probation, have their license suspended for up to ten years or revoked.
A right granted a sales associate or broker associate to work various properties owned by affiliated entities under one owner developer.
Licenses held by a broker in two or more real estate brokerage firms.
changing employers without notifying the FREC may result in
an invalid license
what is necessary to remedy a late renewal
a late fee 14 hr CE and a 28 hr reactivation course
one authorized by the principal to execute specific acts
A listing agent under a __________ listing is a special agent acting on behalf of the seller to locate a purchaser on behalf of the owner.
continuing relationship with the principal but is empowered to perform acts limited to a specific trade of business.
A sales associate or broker associate is a ___________ of his or her broker or owner-developer for the transaction of real estate.
authorized under agency law to act for and represent the principal in all matters, without limitation.
An individual with power of attorney for another may represent and sign for that person on all matters.
real estate licensee in Florida may enter into a brokerage relationship with potential buyers and sellers as a
transaction broker, single agent, or operate in a no brokerage capacity
A principal is defined in 475, F.S.
as the party with whom a broker has a single agency relationship. A single agent represents either a buyer or a seller, but never both.
A sales associate or broker associate is a ___________ of the broker and a ___________ of the broker's principals
general agent, subagent
loyalty, obedience, full disclosure, and confidentiality
There are no fiduciary duties owed in a ____________ or __________ relationship
transaction broker, no brokerage
broker who represents, as a fiduciary, both the prospective buyer and the prospective seller in a real estate transaction.
not allowed for real estate agents
broker who represents, as a fiduciary, both the prospective buyer and the prospective seller in a real estate transaction.
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.
It is presumed that all licensees are operating in the capacity of a transaction broker unless a single agency or a no broker relationship __________
is established in writing
Real estate licensees (unless exempt or transaction brokers) are required to provide to any potential seller or buyer at first contact,
appropriate notice regarding their relationship to consumers.
The Consent to Transition to Transaction Broker notice
single agency relationship may be changed from a single agent to a transaction broker provided the agent first obtains the seller or buyer's written consent.
No Brokerage Relationship Notice
must be given to the buyer or seller before the showing of property
Designated Sales Associate
In any real estate transaction other than a residential sale, but only if the buyer and seller have assets of $1 million or more, the broker at the request of the customers may designate sales associates to act as single agents for different customers in the same transaction.
both customers must sign a disclosure
broker entitled to commission
The broker who successfully performs by locating a willing, ready, and able buyer is said to the the procuring cause of the sale
effect a sale
locating a ready, willing and able purchaser, and obtaining a binding contract at the listed price and terms.
broker gets compensated at closing
find a purchaser
the broker who finds such a purchaser is entitled to compensation whether or not a sale is finalized.
determined by agreement and is based upon a percentage of the sales price. If the amount was not specified, a customary rate would be based on the type of property and the fee the broker would normally charge.
failure to account
A licensee is unable or unwilling to produce funds held in trust for another at the appropriate time
out of state deals
The out-of-state or foreign broker may accompany the customer to Florida but may not participate in the transaction in any manner. If the out-of-state or foreign broker comes into Florida and provides real estate services within the transaction, no referral fee or commission can be paid.
broker office requirements
must consist of at least one enclosed room in a building of stationary construction
Sales associates may be registered at either the broker's main office or a branch office at the discretion of the broker
name of the firm, name of at least one broker, and Licensed Real Estate Broker
under who's name is advertising
An advertisement that fails to reveal that the advertiser is an agent and not a principal or does not contain brokers name
acting as a broker
sales associate advertising in their own name
According to the FREC where must the brokerage firm's name appear
immediately above, below, or adjacent to the point-of-contact information
Sales associates must deliver escrow deposits to the broker __________, which means by the ____________.
immediately, end of the next business day
escrow can be placed in
a Florida bank, savings association, credit union, or title company
escrows must be deposited by the broker
by the end of the third business day from the receipt of the deposit
the broker does not claim an interest in the deposit
the broker does claim an interest in the deposit
brokerages may not operate as a
corporation sole, unincorporated association, cooperative association, or business trust
brokerages may operate as
sole proprietor, corporation for profit, corporation not for profit, general partnership, limited partnership, limited liability company, or limited liability partnership
broker and sales associates may operate as
professional corporation, limited liability company, or professional limited liability company
owned by stockholders and managed by directors acting through the officers
causes for dissolvement of a corporation
failure to file the annual report, failure to pay the annual fee, by stockholder vote to dissolve it, or by court order
all officers of brokerage corporations must be ________
one general partner and one limited partner
this partnership must file wit the Department of State
formed to conclude a single or predetermined number of transactions
loss or misuse of money or property belonging to another
failure to account
broker fails to pay his or her sales associate or if the broker fails to pay another broker according to their agreement
notice of noncompliance
initial offense of a listed minor violation (F.A.C. 61J2-24.003). Failure to take corrective action within 15 days may result in a citation or regular disciplinary proceedings.
issued when there is no substantial threat to the public health, safety, and welfare or when the threat has been removed The subject of the citation has 30 days from the date the citation becomes a final order to pay the fine.
$5,000 for each offense
third degree felony, punishable by a criminal fine of up to $5,000 and/or imprisonment of up to five years
unlicensed practice of the law
third degree felony
violation of FS 475
second degree misdemeanor punishable by a criminal fine not to exceed $500 and or imprisonment for up to 60 days
violation of rental info agreement
first degree misdemeanor, punishable by a criminal fine of up to $1000 and/or imprisonment not to exceed one year.
Summary (emergency) suspension
immediate, serious danger to the public
probable cause panel
can be filed by anyone
A case number is assigned and an investigator is appointed.
The DBPR can issue a subpoena if requested by the investigator
the investigator submits a report to the DRE that cannot contain any personal opinions or recommendations of the investigator.
probable cause panel
Prosecutors from the legal section review the investigative report
The panel has 2 FREC members, 15 days to request info, and 30 days to dismiss
filed against the individual who is the subject of the complaint, referred to as the respondent
The respondent has 21 days to file an Election of Rights form
stipulation, which is a negotiated settlement where the respondent agrees to the imposition of a disciplinary action
informal hearing, where the respondent is entitled to present testimony to explain any mitigating circumstances that could reduce the punishment. The FREC will impose discipline based on the statutes or rules that were violated.
If the respondent disputes material facts, the case will be scheduled for a formal hearing before an administrative law judge (ALJ) from the Division of Administrative Hearings (DOAH). The respondent must be given not less than 14 days notice of a formal hearing
A final order panel of the FREC reviews the ALJ's recommended order together with any exceptions.
petition for review may be filed with the Florida District Court of Appeals within 30 days of the final order
stay of enforcement
If granted, stops the enforcement of a suspension or revocation in the final order pending the outcome of the appeal process.
writ of supersedeas
supersedes the action of the FREC and allows the licensee to continue to practice until the case can be heard on appeal
writ of mandamus
reverses final order
broker notification of responsibility
after probable cause
If a broker has failed to direct, control, or manage a sales or broker associate employed by such broker, he or she may be subject to disciplinary action by the FREC.
reimburse the public for actions of a real estate licensee
reimburse licensee when
broker who complied with an escrow disbursement order (EDO) and is later sued in court or is defrauded by another licensee
payment from recovery fund
recovery from at fault's assets first
payments limited to 50,000 from one and 150,000 for multiple
Upon payment from the fund, the license must be
suspended until the fund is repaid in full plus interest (an exception occurs if a licensee is following an EDO)
civil rights act of 1866
prohibits discrimination based on race
1968 Fair Housing Act
prohibited discrimination on the basis of race, color, religion, sex, and national origin
1988 Amendment to the Fair Housing Act
added handicap and familial status as categories of people against which discrimination is prohibited
Exceptions to the 1968 Act
religious institutions, private clubs, and owner-occupied dwellings of up to four families, if the services of a broker or discriminatory advertising are not used
complexes occupied 100% by persons 63 years of age or older and complexes that have at least 80% of the units occupied by one person 55 years of age or older
Inducing sellers to list or sell on the basis that the neighborhood is deteriorating or becoming transitional due to an influx of minority persons
Directing buyers into or away from neighborhoods based on race, color, religion, or national origin
Refusal by a lender to approve a mortgage loan based on a property being located in a certain geographical area, age of the property, income level of the residents, or racial composition of the area
HUD Fair Housing Poster
Real estate brokers must display poster in all places of business
Florida Residential Landlord & Tenant Act
A landlord must:
bargain in good faith
provide certain types of maintenance
make clear provisions for handling deposit money or advance rent that is intended to be held for longer than the next immediate rental period
notify the tenant in writing of the manner in which the landlord is holding any security deposit or advance rent within 30 days of receipt of any such moneys
if a landlord commingles tenant money with other funds they must
post a surety bond with a county clerk of the circuit court for $50,000 or the total holdings, whichever is less
or 250,000 for 5 or more properties
If the landlord deposits the money in a noninterest-bearing account
the money must be kept in a Florida account separate from any account (or accounts) the landlord maintains for rental receipts and operating expenses.
If the landlord deposits the money in a n escrow account
The tenant shall receive 75% of the interest payable on this account, if any
The landlord may enter the property
at any time for purposes of protecting or preserving the premises
Return of Security Deposit
15 days after termination of a lease to return any security deposit with interest or 30 days to give a claim to the tenant, the tenant as 15 days to object
Do not call list
Real estate licensees must search the national registry before making a telephone solicitation
FSBO on do not call list
FSBOs on the list may be called to make an appointment for a prospective buyer, not to solicit a listing
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