1.The Real Estate Business

1.1 INTRODUCTION TO THE REAL ESTATE BUSINESS

1.1.1 Real estate activities

1.1.2 Professional specialties

1.1.3 Property type specialization

1.2 REAL ESTATE BROKERAGE

1.2.1 Forms of specialization

1.2.2 Skills and knowledge

1.3 DEVELOPMENT AND CONSTRUCTION

1.3.1 Land acquisition

1.3.2 Subdividing and development

1.3.3 Construction

1.4 THE ROLE OF GOVERNMENT

1.4.2 Real estate license laws

1.5 PROFESSIONAL ORGANIZATIONS

Chapter 1 Overview: The Real Estate Business Snapshot Review

Quiz 1

Learning Objectives and Content

2.1 HISTORY AND PURPOSES OF REAL ESTATE LICENSE LAWS

2.1.1 History of Florida’s real estate license law

2.1.2 Purpose of regulation

2.1.3 Important Florida real estate statutes and rules

2.2 LICENSE CATEGORIES

2.2.1 Broker

2.2.2 Sales associate

2.2.3 Broker associate

2.3 GENERAL LICENSURE PROVISIONS

2.3.1 General qualifications

2.3.2 Required disclosures

2.3.3 Reasons for denial

2.4 APPLICATION REQUIREMENTS

2.4.1 Fees

2.4.2 Application form

2.4.3 Background checks

2.4.4 Application omissions

2.4.5 Application approval

2.4.6 Appealing denials

2.4.7 Application validity period

2.4.8 Nonresident Applications

2.4.9 Course Requirements

2.4.10 Education exemptions

2.5 SALES ASSOCIATE LICENSE REQUIREMENTS

2.5.1 General license Requirements

2.5.2 Prelicense course

2.5.3 State license Examination

2.6 BROKER LICENSE REQUIREMENTS

2.6.1 General license requirements

2.6.2 Experience requirement

2.6.3 Prelicense course

2.6.4 State license examination

2.7 NONRESIDENT LICENSE REQUIREMENTS

2.7.1 Florida resident defined

2.7.2 Nonresident application requirements

2.7.3 Mutual recognition

2.7.4 The Occupational Opportunity Act

2.8 LICENSE INFORMATION; REGISTRATION

2.8.1 License information

2.8.2 Registration

2.9 LICENSE RENEWAL EDUCATION

2.9.1 Post license Requirement

2.9.2 Continuing Education

2.9.3 Reactivation education

2.10 ACTIVITIES REQUIRING LICENSURE; EXEMPTIONS

2.10.1 Individuals required to be licensed

2.10.2 Individuals exempt from licensure

Cap 2 Real Estate License Law and Qualifications for Licensure Snapshot Review

Quiz 2

Learning Objectives and Content

3.1 DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION

3.1.1 Organizational structure

3.1.2 Definitions

3.1.3 Legislative intent

3.1.4 Department powers and duties

3.1.5 Licensing examinations

3.2 DIVISION OF REAL ESTATE

3.3 FLORIDA REAL ESTATE COMMISSION

3.3.1 Purpose of regulation

3.3.2 Rules governing internal organization and operation

3.3.3 General structure

3.3.4 Duties and powers

3.4 LICENSE RENEWAL & STATUSES

3.4.1 License renewal

3.4.2 License status

3.5 MULTIPLE AND GROUP LICENSES

Real Estate License Law and Commission Rules Snapshot Review

Quiz 3

Learning Objectives and Content

4.1 ESSENTIALS OF REAL ESTATE AGENCY

4.1.1 Historical perspective

4.1.2 Basic roles

4.1.3 Types of agency

4.1.4 Creating an agency relationship

4.1.5 Terminating an agency relationship

4.2 FIDUCIARY DUTIES

4.2.1 Fiduciary duties to the client

4.2.2 Agent's duties to the customer

4.2.3 Principal's general duties

4.3 BROKERAGE RELATIONSHIP DISCLOSURE ACT

4.3.1 Residential transactions

4.3.2 Disclosure notices

4.3.3 Nonrepresentation relationships

4.3.4 Single agency relationships

4.3.5 Transaction broker relationships

4.3.6 Transitioning to transaction broker

4.3.7 Designated sales associate

4.3.8 Documentation

Cap 4 Authorized Relationships, Duties, and Disclosure Snapshot Review

Quiz 4

Learning Objectives and Content

5.1 BROKERAGE OFFICES

5.1.1 Office requirements

5.1.2 Branch offices

5.1.3 Entrance sign requirements

5.1.4 Temporary shelters

5.1.5 Sales associate officing

5.2 GUIDELINES FOR ADVERTISING

5.2.1 Prohibitions

5.2.2 Wording of advertisements

5.2.3 Internet advertising

5.2.4 Telephone solicitation laws

5.2.5 Florida telemarketing laws

5.3 HANDLING DEPOSITS

5.3.1 Escrow account deposit requirements

5.3.2 Management of escrow accounts

5.4 RENTAL LISTS AND RENTAL COMPANIES

5.5.1 Requirements

5.5.2 Rental advertising penalties

5.6 REPRESENTING LICENSEE EXPERTISE

5.6.1 Offering an opinion of title

5.6.2 Offering a representation of value

5.6.3 Misrepresentation of value

5.6.4 Unauthorized practice of law

5.7 COMMISSIONS

5.7.1 Prohibitions

5.7.2 Kickbacks

5.7.3 Procuring cause

5.8 CHANGE OF EMPLOYER OR ADDRESS

5.8.1 FREC notification

5.8.2 Sales associate broker change

5.8.3 Change of address

5.9 BUSINESS ENTITY LICENSING & REGISTRATION

5.9.1 May register as brokerage

5.9.2 May not register as brokerage

5.10 TRADE NAMES

5.11 ETHICAL PRACTICES

5.11.1 Codes of ethics

5.11.2 Disclosure

5.11.3 Fraud and negligence

5.11.4 Brokerage cooperation

Real Estate Brokerage Activities & Procedures Snapshot Review

Quiz 5

Learning Objectives and Content

6.1 DEFINITIONS

6.2 DISCIPLINARY PROCEDURE

6.2.1 The complaint

6.2.2 DBPR investigation

6.2.3 Probable-cause panel

6.2.4 Formal/ administrative complaint

6.2.5 Stipulation

6.2.6 Voluntary relinquishment

6.3 COMMISSION MEETING

6.3.1 Informal hearing

6.3.2 Formal hearing

6.3.3 FREC-issued final order

6.3.4 Judicial review

6.4 VIOLATIONS AND PENALTIES

6.4.1 FREC authority

6.4.2 Violations and penalties

6.4.3 Penalties issued by court of law

6.5 REAL ESTATE RECOVERY FUND

6.5.1 Brokerage transactions

6.5.2 Persons unqualified to make claim

6.5.3 Payment for claims

6.5.4 Fund limit and fees

Violations of License Law, Penalties, & Procedures Snapshot Review

Quiz 6

Learning Objectives and Content

7.1 FAIR HOUSING AIMS

7.2 FEDERAL FAIR HOUSING AND OTHER LAWS

7.2.1 Civil Rights Act of 1866

7.2.2 Civil Rights Act of 1964

7.2.3 Civil Rights Act of 1968

7.2.4 Forms of illegal discrimination

7.2.5 Title VIII exemptions

7.2.6 Jones v. Mayer

7.2.7 Equal Opportunity in Housing poster

7.2.8 Fair Housing Amendments Act of 1988

7.2.9 Discrimination by the client

7.2.10 Violations and enforcement

7.2.11 Fair financing laws

7.2.12 Americans with Disabilities Act of 1990

7.2.13 Interstate Land Sales Full Disclosure Act

7.3 FLORIDA FAIR HOUSING AND LANDLORD-TENANT LAWS

7.3.1 Florida Fair Housing Act

7.3.2 Florida Americans with Disabilities Accessibility Implementation Act

7.3.3 Florida Residential Landlord and Tenant Act

Cap 7 Fed./State Laws Pertaining to Real Estate Snapshot Review

Quiz 7

Learning Objectives and Content

8.1 LAND, REAL ESTATE AND REAL PROPERTY

8.1.1 Real property definition

8.1.2 Real property components

8.2 REAL VS. PERSONAL PROPERTY

8.2.1 Property essentials

8.2.2 Fixtures

8.2.3 Differentiation criteria

8.2.4 Trade fixtures

8.2.5 Emblements

8.2.6 Factory-built housing

8.2.7 Conversion

8.3 BASIC PROPERTY RIGHTS

8.3.1 Bundle of rights

8.3.2 Separable rights

8.3.3 Water rights

8.4 INTERESTS AND ESTATES IN LAND

8.4.1 Interests

8.4.2 Estates in land

8.5 FREEHOLD ESTATES

8.5.1 Fee simple estate

8.5.2 Life estate

8.5.3 Conventional life estate

8.5.4 Legal life estate

8.6 WAYS OF HOLDING OWNERSHIP

8.6 WAYS OF HOLDING OWNERSHIP (cont)

8.6 WAYS OF HOLDING OWNERSHIP (cont)

8.7 LEASEHOLD ESTATES

8.7.1 Estate for years

8.7.2 Estate from period-to-period

8.7.3 Estate at will

8.7.4 Estate at sufferance

8.8 COOPERATIVES

8.8.1 Interests, rights and obligations

8.8.2 Organization and management

8.8.3 Cooperative disclosures

8.9 CONDOMINIUMS

8.9.1 Airspace and common elements

8.9.2 Interests and rights

8.9.3 Condominium creation

8.9.4 Organization and management

8.9.5 Owner responsibilities

8.9.6 Condominium disclosures

8.10 TIME-SHARES

8.10.1 Time-share lease

8.10.2 Time-share freehold

8.10.3 Regulation

8.10.4 Time-share disclosures

8.11 HOMEOWNERS’ ASSOCIATIONS (HOA)

8.12 COMMUNITY DEVELOPMENT DISTRICTS (CDD)

Cap 8 Property Rights, Estates and Tenancies Snapshot Review

Quiz 8

Learning Objectives and Content

9.1 CONCEPT OF TITLE

9.2 TRANSFER BY VOLUNTARY ALIENATION

9.2.1 Deeds

9.2.2 Wills

9.3 TRANSFER BY INVOLUNTARY ALIENATION

9.3 TRANSFER BY INVOLUNTARY ALIENATION (cont)

9.4 NOTICE OF TITLE

9.5 PROTECTION OF TITLE

9.5 PROTECTION OF TITLE (cont)

9.5 PROTECTION OF TITLE (cont)

9.6 DEEDS

9.6 DEEDS (cont)

9.6 DEEDS (cont)

9.6 DEEDS (cont)

9.7 GOVERNMENT OWNERSHIP LIMITATIONS AND RESTRICTIONS

9.8 PRIVATE OWNERSHIP LIMITATIONS AND RESTRICTIONS

9.8.1 Encumbrances

9.8.2 Deed restrictions

9.8.3 Easements

9.8.4 Encroachments

9.8.5 Licenses

9.8.6 Leases

9.8.7 Liens

9.8.7 Liens (cont)

9.8.7 Liens (cont)

9.8.7 Liens (cont)

Cap 9 Title, Deeds and Ownership Restrictions Snapshot Review

Quiz 9

Learning Objectives and Content

10.1 PURPOSES AND METHODS OF LEGAL DESCRIPTIONS

10.2 METES AND BOUNDS METHOD

10.3 GOVERNMENT ( RECTANGULAR) SURVEY SYSTEM

10.3.1 The survey grid

10.3.2 Sections of a township

10.3.3 Fractions of a section

10.4 LOT AND BLOCK (RECORDED PLAT) METHOD

10.5 DESCRIBING ELEVATION

10.6 ASSESSOR’S PARCEL NUMBER

10.7 PREPARATION AND USE OF SURVEYS

Cap 10 Legal Description Snapshot Review

Quiz 10

Learning Objectives and Content

11.1 CONTRACT ESSENTIALS

11.1.1 Definition of a contract

11.1.2 Preparation of contracts

11.1.3 Legal status of contracts

11.1.4 Criteria for validity

11.1.5 Validity of a conveyance contract

11.1.6 Enforcement limitations

11.1.7 UETA & electronic contracting

11.2 CLASSIFICATIONS OF CONTRACTS

11.3 CONTRACT CREATION

11.4 CONTRACT TERMINATION

11.5 EMPLOYMENT (LISTING) AGREEMENTS

11.5.1 Foundations in agency law

11.5.2 Types of listing agreements

11.5.3 Exclusive right to sell listing clauses

11.5.4 Exclusive buyer agency clauses

11.6 SALE CONTRACTS

11.6.1 Legal characteristics

11.6.2 Contract creation

11.6.3 Earnest money escrow

11.6.4 Contract contingencies

11.6.5 Default

11.6.6 Contract provisions

11.6.7 Required disclosures

11.6.8 FAR/BAR contract forms

11.6.9 Material defects affecting residential property value

11.7 OPTION CONTRACTS

11.8 INSTALLMENT SALES CONTRACTS

Cap 11 Real Estate Contracts Snapshot Review

Quiz 11

Learning Objectives and Content

12.1 MORTGAGE CONCEPTS

12.1 MORTGAGE CONCEPTS (cont)

12.2 ESSENTIAL LEGAL PROVISIONS OF MORTGAGES

12.3 COMMON MORTGAGE FEATURES

12.4 PURCHASING MORTGAGED PROPERTY

12.5 DEFAULT AND FORECLOSURE

12.5.1 Enforcement

12.5.2 Foreclosure

12.5.3 Deed in lieu of foreclosure

12.5.4 Short sale

Cap 12 Residential Mortgages Snapshot Review

Quiz 12

Learning Objectives and Content

13.1 CONVENTIONAL MORTGAGES

13.2 COMMON MORTGAGE TYPES

13.3 CUSTOM MORTGAGES

13.4 GOVERNMENT-INSURED FHA PROGRAM

13.5 VA LOAN GUARANTEE PROGRAM

13.6 QUALIFYING FOR A LOAN

13.6.1 Equal Credit Opportunity Ac

13.6.2 Loan application process

13.6.3 Loan underwriting

13.6.4 Qualifying the buyer

13.6.5 Loan commitment

13.7 PRIMARY SOURCES OF HOME FINANCING

13.8 SECONDARY MORTGAGE MARKET

13.9 MORTGAGE FRAUD

13.10 FAIR CREDIT AND LENDING LAWS

Cap 13 Types of Mortgages and Sources of Financing Snapshot Review

Quiz 13

Learning Objectives and Content

14.1 BASIC REAL ESTATE COMPUTATIONS

14.2 PRELIMINARY STEPS TO CLOSING

14.3 THE CLOSING EVENT

14.3 THE CLOSING EVENT (cont)

14.4 REAL ESTATE SETTLEMENT PROCEDURES ACT (RESPA)

14.5 FINANCIAL SETTLEMENT OF THE TRANSACTION

14.5.1 Settlement process

14.5.2 Selling terms and closing costs

14.5.3 Debits and credits

14.5.4 Prorated items

14.5.5 Computing prorations

14.6 STATE TRANSFER TAXES

14.7 OTHER CHARGES

14.8 RULES OF THUMB

14.9 CLOSING DISCLOSURE STATEMENT

14.9.1 Forms and procedures

14.9.2 Good faith

14.9.3 Types of charges

14.9.4 Applicable transactions

14.9.5 The H-25 Closing Disclosure form

14.9.5 Closing Disclosure PDF Example

14.10 CLOSING COST ITEMIZATION: CASE ILLUSTRATION

14.10 CLOSING COST ITEMIZATION: CASE ILLUSTRATION (cont)

Cap 14 Real Estate-Related Computations and Closing of Transactions

Quiz 14

Learning Objectives and Content

15.1 PHYSICAL CHARACTERISTICS OF REAL ESTATE

15.2 ECONOMIC CHARACTERISTICS OF REAL ESTATE

15.2.1 Real estate as an economic product

15.2.2 Relationship between supply, demand, and price

15.2.3 Supply factors

15.2.4 Demand factors

15.2.5 Market influences on supply and demand

15.2.6 Interpreting market indicators

Cap 15 Real Estate Markets and Analysis Snapshot Review

Quiz 15

Learning Objectives and Content

16.1 REGULATION OF APPRAISAL

16.1.1 Real property valuation

16.1.2 The Appraisal Foundation

16.1.3 FIRREA

16.1.4 USPAP

16.1.5 State licensed and certified appraisers

16.1.6 Appraisal service of real estate

16.2 CONCEPTS OF VALUE

16.2.1 Market cost/price/ value

16.2.2 Real estate value types

16.2.3 Fundamental value characteristics

16.2.4 Valuation principles

16.3 APPRAISING MARKET VALUE

16.4 THE SALES COMPARISON APPROACH

16.4.1 Steps in the approach

16.4.2 Identifying comparables

16.4.3 Adjusting comparables

16.4.4 Weighting comparables

16.4.5 Broker's comparative market analysis

16.4.6 Sales Comparison Approach Illustration

16.5 THE COST APPROACH

16.5.1 Types of cost appraised

16.5.2 Depreciation

16.5.3 Steps in the approach

16.6 THE INCOME CAPITALIZATION APPROACH

16.6.1 Steps in the approach

16.6.2 Gross rent and gross income multiplier approach

16.7 PREPARING A COMPARATIVE MARKET ANALYSIS (CMA)

Cap 16 Real Estate Appraisal Snapshot Review

Quiz 16

Learning Objectives and Content

17.1 INVESTMENT FUNDAMENTALS

17.2 REAL ESTATE AS AN INVESTMENT

17.3 TAXATION OF REAL ESTATE INVESTMENTS

17.4 INVESTMENT ANALYSIS OF A RESIDENCE

17.4.1 Appreciation

17.4.2 Deductibles

17.4.3 Tax liability

17.4.4 Gains tax exclusion

17.5 INVESTMENT ANALYSIS OF AN INCOME PROPERTY

17.5.1 Pre-tax cash flow

17.5.2 Tax liability

17.5.3 After-tax cash flow

17.5.4 Investment performance

17.6 BUSINESS BROKERAGE

17.6.1 Business brokerage vs real property brokerage

17.6.2 Transaction knowledge

17.6.3 Accounting

17.6.4 Determining a price

17.6.5 Business brokerage regulation

17.6.6 Steps in the sale of a business

Cap 17 Real Estate Investments & Business Opportunity Brokerage Snapshot Review

Quiz 17

Learning Objectives and Content

18.1 REAL PROPERTY TAXATION

18.1.1 Taxing entities

18.1.2 Ad valorem taxation

18.1.3 Exemptions from property taxes

18.1.4 Homestead exemption

18.1.5 Florida Greenbelt Law

18.2 SPECIAL ASSESSMENTS

18.3 TAX LIEN ENFORCEMENT

18.3 FEDERAL INCOME TAXES

Cap 18 Taxes Affecting Real Estate Snapshot Review

Quiz 18

Learning Objectives and Content

19.1 PLANNING AND ZONING

19.1.1 Goals of land use control

19.1.2 The master plan

19.1.3 Planning objectives

19.1.4 Plan development

19.1.5 Planning management

19.2 FLORIDA’S COMPREHENSIVE PLAN

19.3 PUBLIC LAND USE CONTROL

19.3.1 Zoning

19.3.2 Zoning administration

19.3.3 Subdivision regulation

19.3.4 Building codes

19.4 FLOOD ZONES

19.5 ENVIRONMENTAL CONTROLS

19.5.1 Areas of concern

19.5.1 Areas of concern (cont)

19.5.2 Major legislation

19.5.3 Responsibilities & liabilities

19.5.4 Landmarks in Environmental Control Legislation

Cap 19 Planning, Zoning, and Environmental Hazards Snapshot Review

Quiz 19

Real Estate Math

Real Estate Mathematics: Answer Key

63-Hour Pre-license Exam for FL Sales Associate

Instructions

DBPR Report Information