Florida Real Estate Flashcards

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Questions and Answers

What does Chapter 475 of the Florida Statutes outline?

Owner investor definitions

Regulatory agency functions

Requirements for real estate practice (correct)

Real estate transaction processes

What does FREC stand for?

Federal Realty Examination Committee

Florida Real Estate Commission (correct)

Federal Real Estate Certification

Florida Realty Enforcement Commission

What is the primary responsibility of the Division of Real Estate?

Enforces the rules and regulations imposed by the FREC

What is the role of the Department of Business and Professional Regulation?

Florida's licensing agency Signup and view all the answers

Define 'owner user'.

A person who holds property as a necessity or convenience for residential, personal, or business use. Signup and view all the answers

Define 'owner investor'.

A person who holds property for production of long-term benefits such as appreciation, tax shelter, and income from eventual sale of the property. Signup and view all the answers

What is a real estate broker?

Employed by the public to perform services of real estate as either a transaction broker, single agent, or in a no brokerage capacity. Signup and view all the answers

What is a transaction broker?

When a broker offers limited representation to one or both parties in a residential real estate transaction. Signup and view all the answers

What does a single agent do?

Owes fiduciary duties of obedience, loyalty, confidentiality, accounting, and full disclosure to the principal. Signup and view all the answers

Who is referred to as the principal in a real estate transaction?

An individual who has entered a single agent relationship with a broker. Signup and view all the answers

What is 'no brokerage'?

When a broker is not acting as an agent for others but must still disclose all known facts that materially affect the property value. Signup and view all the answers

Define 'owner employer'.

Can only perform real estate services involving the owner-employer’s property. Signup and view all the answers

What is a sales associate?

Must work under the supervision of a broker employer or owner employer. Signup and view all the answers

Define 'broker associate'.

Has completed broker education and licensing requirements and works under supervision. Signup and view all the answers

What is an appraisal?

Supported, defended estimate of the value of property rights. Signup and view all the answers

What is a comparative market analysis?

A report that provides information helpful in establishing a list price for a property. Signup and view all the answers

Define 'BPO'.

Broker price opinion; used to determine the probable sales price and marketing time of a property. Signup and view all the answers

What does USPAP stand for?

Uniform Standards of Professional Appraisal Practice. Signup and view all the answers

What is the function of FREAB?

Regulates Florida appraisers. Signup and view all the answers

Define 'subdividing'.

Converts a raw parcel of land into smaller parcels. Signup and view all the answers

What does 'development' involve?

Construction of improvements to parcels. Signup and view all the answers

Match the following construction types with their definitions:

Contract Construction = Improvements built at the customer's request to specifications. Speculative Construction = Improvements built without a specific buyer. Model Home Construction = Building homes from a variety of floor plans as examples. Custom Building = Tailored constructions to a client's specifications. Signup and view all the answers

What does a mortgage broker do?

Brings borrowers and lenders together for a fee. Signup and view all the answers

Define a mortgage banker.

Individuals or firms engaged in lending money on secured real estate. Signup and view all the answers

What is real estate counseling?

Provides skilled, independent guidance based on property ownership analysis. Signup and view all the answers

Define 'eminent domain'.

Gives states the power to condemn property for public use, compensating owners at fair market value. Signup and view all the answers

What does condemnation refer to?

Legal action used by state governments to take private property. Signup and view all the answers

What does the term 'caveat emptor' mean?

Buyer beware Signup and view all the answers

What are the sales associate requirements?

63 hrs education, 70% pass within two years, must be 18 and have a high school diploma. Signup and view all the answers

What is the primary task of the Department of Business and Professional Regulation?

To provide efficient and effective regulation of numerous industries. Signup and view all the answers

What are DBPR responsibilities?

Investigation, prosecution of complaints, administration of licenses. Signup and view all the answers

What does DRE stand for?

Division of Real Estate. Signup and view all the answers

Define inactive licensees.

Individuals not employed or supervised and not working with the public on real estate transactions. Signup and view all the answers

What are active licensees?

Sales associates or broker associates supervised by an employer. Signup and view all the answers

What does an ineffective license refer to?

Licenses that are suspended but not void. Signup and view all the answers

What is a voided license?

License that has expired or been revoked. Signup and view all the answers

When are multiple licenses issued?

Only when a broker wishes to be a broker for more than one company. Signup and view all the answers

Define group licenses.

Issued to active sales associates employed by owner-employers, allowing them to work from various properties. Signup and view all the answers

Study Notes

Florida Real Estate Statutes and Regulations

Chapter 475 defines the requirements for practicing real estate in Florida.
FREC (Florida Real Estate Commission) regulates and enforces state licensing laws.
The Division of Real Estate ensures compliance with FREC's rules and regulations.
The Department of Business and Professional Regulation is Florida's primary licensing authority.

Real Estate Roles and Relationships

Owner user holds property primarily for personal or business use while benefiting from long-term appreciation and tax shelter.
Owner investor holds property aimed at progressive value growth and potential income from sales.
Real estate brokers provide services to the public and can act in various capacities including transaction broker, single agent, or no brokerage.
A transaction broker offers limited representation in a residential deal without fiduciary duties.
A single agent owes fiduciary duties such as loyalty, confidentiality, and full disclosure to their principal, usually compensated by the client.
Principals are individuals in a singular agent relationship entitled to fiduciary protections.
No brokerage capacity occurs when a broker provides no agency representation while still disclosing relevant material facts.

Employment Structures in Real Estate

Owner employers can only conduct real estate services related to their own properties and are compensated solely by the owner.
Sales associates must operate under the direct supervision of a licensed broker or owner employer.
Broker associates have fulfilled educational and licensing criteria and work under the broker's supervision.

Property Valuation and Analysis

An appraisal is a defended estimate of a property’s value.
Comparative market analysis helps in determining a property’s listing price but is less comprehensive than an official appraisal.
BPO (Broker Price Opinion) estimates probable sales prices and the expected marketing duration of a property.
USPAP (Uniform Standards of Professional Appraisal Practice) provides guidelines for all appraisal services.
FREAB (Florida Real Estate Appraisal Board) oversees the regulation of appraisers in Florida.

Real Estate Development Processes

Subdividing transforms a large parcel of land into smaller lots for sale or development.
Development includes enhancing land with infrastructure improvements like utilities and drainage before constructing properties.
The three-part development process includes land acquisition, infrastructure development, and construction for sale or marketing.
Contract construction refers to customized building based on client specifications.
Speculative construction aims to sell properties built without a confirmed buyer, also known as "building on spec."
Model home construction provides examples of different home designs for prospective buyers, also called tract building.

Financing and Counseling in Real Estate

Mortgage brokers connect borrowers with lenders but do not make lending decisions; they earn fees upon loan approval.
Mortgage bankers actively lend on real estate and may hold the title to loans.
Real estate counseling offers analytical guidance regarding property ownership challenges and opportunities.

Legal Concepts in Real Estate

Eminent domain grants the state the right to condemn property for public use, requiring fair market value compensation to owners.
Condemnation is the process by which governments legally acquire private property.
"Caveat emptor" emphasizes buyer responsibility in property transactions.

Licensing and Regulatory Information

Sales associate requirements include 63 hours of education, passing rate of 70% within two years, minimum age of 18, and a high school diploma.
The Department of Business and Professional Regulation aims for effective oversight of various industries, including real estate.
DBPR responsibilities include complaint investigations, license administration, and financial management.
DRE manages the licensing and regulation of over 300,000 individuals and institutions within real estate, supporting FREC and FREAB.
Inactive licensees are not currently engaged in public real estate transactions.
Active licensees are supervised by employers and may operate under their purview or independently.
Ineffective licenses are suspended, whereas voided licenses are no longer valid, either expired or revoked.
Brokers can have multiple licenses when operating in different companies, while group licenses allow associates to work within multiple properties of the same employer.

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Description

Test your knowledge on key concepts from Florida's real estate regulations with these flashcards. This quiz covers essential terms such as the Florida Statutes and the Florida Real Estate Commission. Perfect for aspiring real estate professionals in Florida.