FLORIDA Real Estate Pre-license Exam Review Flashcards

FLORIDA Real Estate Pre-license Exam Review Flashcards In the state of florida, if no broker relationship is disclosed it

is presumed that:

The agent is a transaction broker.When it comes to land rights, what is riparian rights and littoral rights?Riparian = "River" associated with land abutting moving waterLittoral = "ocean" associated with land abutting to tidal bodies of water What are owners guaranteed under Homestead? Protection of FamilyProtection of Homestead: credit card debt cant effect the homesteadTax exemptionsize of homesteadpersonal property Who may use the term REALTOR?REALTOR and real estate licensee are not synonymous.REALTORS are members of a local board of realtors (privately run organization).What is the "1-1-1-1" Rule?The is only 1 violation, that is a misdemeanor of the 1st degree, is subject to a fine of up to 1000$ and/or imprisonment for up to 1 year.What are the various forms of lease agreements? Gross LeaseNet LeasePercentage leasevariable leaseground lease How long does a sales-associate have until they have to turn trust money over to a broker?end of the next business day.How long does a licensee after receiving a citation to accept or reject allegations?30 days Who are the seven members of the Florida Real Estate Commission (FREC)?

7 professional members that are unpaid:-4 being real

estate brokers who have held active licenses during the 5 year preceding-1 must be real estate broker or associate who has held a active license during the 2 year preceding.-2 are consumer(unlicensed) members If a license has been involuntary inactive for 12 moths or more, what must they do to reactivate?28 hours of a Commission prescribed education course.When conducting appraisals, must follow what set of guidelines?Uniform Standards of Professional Appraisal Practice (USPAP) (Best Practices) If a seller presents a verbal offer on a property, must an agent disclose this to the buyer?Yes, a real estate agent must disclose any and all offers even though it is not enforceable until written on a contract.What is a primary market?is the market where securities or goods are actually created.In general business dealings, what is an agent? The person entrusted with another business.What is the difference between erosion and reliction?Erosion is gradual loss of land due to natural forces.Reliction is gradual receding of water uncovering more land.Can a real estate broker / sales associate appraise a property for compensation?Yes, but CANNOT say they are state certified, registered trainee, or licensed appraisers.How would one figure out the acreage from SE1/4 of the NW1/4 and NE1/4 of the SW1/4?1) Multiply Denominators4*4= 16/640 ~ 40and4*4=16/640 ~ 402) add = 80 acres

When it comes to licensure fees, who can be waived?Military Veterans. ***This fee waiver applies to ALL licenses issued by Department of Business and Professional Regulation (DBPR).If a student fails course pre-licensure exam, how long must one wait until one can re-take the exam? How many times can one re-test before having to retake the entire course?Applicant must wait 30 days, and is allowed to re-test one time before having to retake the course.How long does a licensee have to respond to a final order?30 days After completing the post-license education, what must the applicant do?Active and Inactive licenses must biennially take 14 hours of continuing education. ***a licensee may substitute three CE credits (classroom hours) only one time per renewal cycle (2-years).In broker property management, deposits and advance

trust funds must be:

deposited into a brokers escrow account by the end of the third business day after receipt of trust fund.If a license has been involuntary inactive for 12 months or less, what must they do to reactivate?14 hour of FREC-approved continuing education.what are the characteristics of value?DUSTDemandUtilityScarcityTransferability Civil Rights Act of 1866prohibits any type of discrimination based on race in any real estate transaction without exception.A judge submits a recommended order to the FREC about a case, what can the FREC do?FREC doesn't have to abide by "recommended" penalty How can a single agent for a seller change to assist both the seller and the prospective buyer?The state of Florida allows the agent to change from a single agent, to transaction broker.what is an over improvement?occurs when and owner invests more money in a structure than the owner can reasonably expect to recapture.How much money is the broker allowed to place in an escrow account as a "cushion?" 1000$ of personal monies Who is exempt from a RE license?Property OwnersCorporations, Partnerships, Trusts, & Joint VenturesSalaried Employees***court approved individuals***apartment property owners that pay a finders fee (asking tenants to find clients to fill vacancies) no more than 50$ What is a agency relationship?When a person delegates authority to someone to act on his or her behalf.What did the Servicemans Readjustment Act and Dept. of Veterens affairs give to WW2 vets?partial guarntee of mortgage loans.In the state of Florida, can an agent be a dual agent?No, it is illegal.What does the statue of limitations say? designates the period of time which the terms of a contrace may be enforced-written contract: 5 yearsoral contracts: 4 years What is the difference between a rental agent and a property manager?Rental Agent: find a tenant & collect fee.Property Manager: continue to manage property after tenant is secured.What are the powers and duties of the FREC? Executive Powers: regulate and enforceQuasi-Legislative: to enact and revise administrative

rules/regulationsQuasi-Legislative: administer penalties.

(FINE/SUSPEND/REVOKE)

What are remedies for a breach of contract? specific performanceliquidated damagesrecission: cancel contractcompensatory damages What is a stipulation?is an agreement as to the facts of the case and the penalty reached between the attorneys for the DRE and licensees attorneys.Applicants should be familiar with these laws an rules and

their respective subsections:

(F.S. = Florida Statute)F.S. 20F.S. Chapter 475-Part 1.pertains to real estate brokerage-Part 2. pertains to real estate appraisers-Part 3. Commercial Real Estate SALES Commission Lien Act (Lien is only on owners net proceeds)-Part 4. Commercial Real Estate LEASING Commission Lien Act. (Gives broker lien rights)F.S.455Chapter 61J2 Who created the MLS (Multiple Listing Service) database?National Association of Realtors.***Who does the commission for a BPO, or for any service of real estate, go to?a)broker associateb)sales associatec)broker ***C. Compensation can not be paid directly to associates.In a transaction broker relationship, is the buyer responsible for the actions of the licensee?No.What is a Farm Area?When brokers/sales associate become an expert in one portion of the city.Real Estate BrokerageIs the bringing together of buyers and sellers, owners and renters and completing real estate transactions.What types of agents can one be in a agency relationship?UniversalGeneral (Sales-Associate)Special Agent

Real Estate BusinessIs composed of many specialization's:- (1)Details of

Property Transfer-Knowledge of:(2)market

conditions(3)how to market real estate business(4)how to analyze buyers needs(5)laws that pertain to real estate What are the three types of law that regulate agency relationships?

Common law (unwritten law): based on usage, general

acceptance, and custom.Statutory law: written law enacted

by legislatureAdministrative law: FREC's rules and

regulations (code of ethics) **How can a agent maintain good standing with clients?(After title closing)** **Follow Up. This will result in a good reputation and FUTURE REFERRALS and word-of-mouth advertising.** What does the statute of frauds say?any contract must be in writing and signed to be enforceable Jones V. Mayercourt upheld civil rights act of 1866 How soon must a licensee notify DBPR of a change of address?within 10 days of change of mailing address. otherwise are subject to citation and 500$ fine.What will cause a license to become voluntary inactive?If a licensee fails to renew before expiration date.What is a corporation sole?is a ecclesiastical or church organization and should not be confused with a corporation for profit. (soul) What is the difference between a multiple license and a group license?A multiple license is issued to a broker (multiple agents under him or her) who qualifies as a broker for more than one business entity. {holds more than one brokers license}A group license is sometimes issued to a

sales-associate or broker associates who are registered under a owner-developer.What is a defeasance clause?"defeats" prior action