Questions and Answers
How many days does the FREC have to notify Kaitlyn of any errors or omissions in her application?
30 days
If a title is to be marketable, it should be clear of all _____ that might prevent a purchaser from selling the property.
encumbrances
What is common law?
Customs and precedent established by court decisions
Which of these situations BEST describes a buyer assuming a mortgage?
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What is one way lenders prevent other liens from hopping ahead of them in the debt priority line?
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What can Jamie expect to result from an increase in the number of building permits being issued in her town?
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How is real estate different from real property?
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Why does each party in a designated sales associate transaction have two disclosures to sign?
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In what kind of in-house transaction can there be two parties with licensees providing fiduciary levels of representation?
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What percentage did Ozzy put down on the house?
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What is one advantage of residential property over commercial property?
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What is a multiple offer situation?
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Study Notes
FREC Notification Period
- FREC (Florida Real Estate Commission) has 30 days to identify and notify applicants of errors or omissions in their license applications.
Marketable Title
- A marketable title is free from significant encumbrances or defects, such as liens, that could hinder a buyer's enjoyment or resale of the property.
Common Law
- Common law is based on historical customs and precedents established by court decisions over centuries in England.
Mortgage Assumption vs. Subject-To
- In "subject to" agreements, the buyer takes on the property without the lender's knowledge, while the original seller remains responsible for the loan's payments.
- In an assumption, the lender officially transfers the loan to the buyer, who takes over payments with the lender's approval.
Lender's Tax Lien Prevention
- Lenders collect property taxes through an escrow account to prevent tax liens from becoming a priority over their loans in case of borrower default.
Impact of Building Permits on Market
- An increase in building permits typically indicates an increase in supply, contributing to a thin market where fewer buyers and sellers are active.
Real Estate vs. Real Property
- Real estate includes only land and improvements, while real property encompasses land, improvements, and the associated bundle of rights.
Designated Sales Associates
- Designated sales associates allow a brokerage to provide fiduciary representation to both parties in a nonresidential transaction, contingent on both having financial assets of at least one million dollars.
In-House Transaction Requirements
- Nonresidential in-house transactions with two parties require both to have assets equal to or exceeding one million dollars, facilitating fiduciary representation.
Down Payment Calculation
- The percentage down on a property can be calculated using the formula: Down payment ÷ Purchase price. For example, a down payment of $85,000 on a house priced at $320,000 results in a 26.5% down payment.
Residential Property Advantages
- Although large residential properties require more management, they offer more stability in comparison to the more volatile commercial property market.
Multiple Offer Situations
- Multiple offers occur when several parties submit offers for a single property, common in competitive markets, which can lead to bidding wars.
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Description
This quiz covers essential Florida real estate concepts, including FREC notification periods, marketable titles, common law, and mortgage assumptions. Test your knowledge of real estate fundamentals and legal aspects that impact property transactions in Florida.
