FL Real Estate Laws Rules Flashcards

FL Real Estate Laws & Rules Flashcards Chapter 18Summary of Tax ExemptionsChapter 18A development company purchased 1,000 acres of land from a foreign seller for $2,850,000. Federal law requires the buyer to withhold from the seller and pay to the IRS approximately how much?Governing Powers - Summary of StatutesStatutes and Rules Governs- Chapter 20, Florida Statute Executive branch of Florida government- Chapter 61J2, Florida Administrative Code Florida Real Estate Commission rules- Chapter 120, Florida Statute Procedural process for all governmental entities authorized under the Florida Constitution- Chapter 455, Florida Statute Department of Business and Professional Regulation and the professions under the department- Chapter 475, Part I, Florida Statute Real estate brokers, sales associates, and schools Square feet available for lots per acre × number of acres in tract = total available square feetTotal available square feet ÷ minimum square feet per lot = number of buildable lots in tract100 acres x 43,560 sq ft = 4,356,000 sq ft (.75 (25% designated public area)) = 3,267,000 / 9000 = 363 lots Chapter 2Which savings association is federally chartered?$427,500. The IRS requires that buyers withhold 15% of the gross sale price. The buyer must report the purchase and pay the IRS the amount withheld.Chapter 18The Value Adjustment Board is composed of Chapter 61J2 - Rules of the Florida Real Estate Commission A set of administrative rules developed by the Florida Real Estate Commission, pursuant to the rule making process outlined in Chapter 120, Florida Statutes. Administrative rules are published in the Florida Administrative Code (FAC). The FREC promulgates these rules to expand upon the statutory provisions of Chapter 475, Florida Statutes, by addressing in greater detail, the principles of practice for the real estate profession (appraisal rules are in Chapter 61J1 of the FAC).Chapter 18If a request for a property tax adjustment is denied, what is the property owner's next step?File a petition with the Value Adjustment Board 2%. The just value of homesteaded property may be increased either 3% annually (based on the assessed value for the previous year) or by the percentage change of the Consumer Price Index for the preceding year, whichever is LESS.Chapter 18Tax advantages of homeownership do NOT include The right of survivorship is an attribute of several types of joint ownership of property, most notably joint tenancy and tenancy in common. When jointly owned property includes

a right of survivorship, the surviving owner automatically absorbs a dying owner's share of the property.How to calculate principal and interest on a mortgage loanA lender quotes a mortgage loan of $265,000 at 4.5% interest. The monthly payment is $1,342.72. How much of

the second monthly payment will apply to the principal reduction?Florida Statute Chapter 475;The "Real Estate Professional Practice Act" This statute establishes the legal rights and responsibilities of real estate licensees and real estate appraisers. It is

divided into 4 parts:- Real Estate Brokerage (licensees

should know this content). The Florida Real Estate Commission (FREC) implements, interprets, and enforces the regulatory provisions of Chapter 475.- Real Estate Appraisers - sets forth the requirements for licensed and certified appraisers according to federal statute. The Florida Real Estate Appraisal Board (FREAB) regulates state-certified, licensed, and registered trainee appraisers.The FREAB functions very similarly to the Florida Real Estate Commission (FREC). Both quasi-judicial bodies follow the same procedures for disciplining licensees.- Commercial Real Estate Sales Commission Lien Act - gives a broker lien rights for earned commission. Applies only to commercial property, not residential property. The lien is only against the owner's net proceeds (personal property) from the sale and does not attach to the commercial real property- Commercial Real Estate Leasing Commission Lien Act - gives a broker lien rights for earned commission associated with a brokerage agreement to lease commercial real estate Florida Statute 20 Chapter 20, Organizational StructureEstablishes the structure of the executive branch of Florida's government. The Florida Constitution provides for the legislative, executive, and judicial branches of government. The executive branch executes the programs and policies adopted by the Legislature. The policies are implemented by the departments of the executive branch, including the Department of Business and Professional Regulation (DBPR). The Division of Real Estate (DRE) provides support services to the Commission. The DRE is under the Department of Business and Professional Regulation (DBPR) reprimand, fine, or otherwise discipline licenseesWhich variable does NOT influence demand?A)Availability of mortgage creditB)Income of consumersC)Availability of construction loansD)Consumer tastes and preferences

• Divide your interest rate by the number of payments

you'll make in the year (interest rates are expressed annually). So, for example, if you're making monthly payments, divide by 12. 2. Multiply it by the balance of your loan, which for the first payment, will be your whole principal amount.4.5%/12 = .00375 x 265,000 = $993.75 = amount to interest on first paymentbal to principal, so

265000- (1342.72-993.75) = 348.97 to principal first payment... deduct from original mortgage of $265k = bal of mortgage $264,651.00375 x $264351.03 =

$925.231342.72 - $992.44 = $350.28

The Florida Real Estate Commission is empowered by law toA)levy fines up to, but not exceeding, $500.B)reprimand, fine, or otherwise discipline licensees.C)assess damages resulting from breach-of-contract suits.D)impose prison sentences up to 60 days.Additional Knowledge Sources- The Bureau of Education and Testing's Candidate Information Booklet for Sales Associates Examination lists