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Broker Pre License
| Question | Answer |
|---|---|
| An individual applying for a FL St RE License MUST: | Have a HS Dipl or Equiv, Posses US SS#, Be honest, truthful, trustworthy or good character & have a good rep for fair dealing |
| FREC rules define a FL resident as: | a person who has resided in FL continuously for a period of four (4) calendar months or more in the preceding year |
| A FL Licensed Attorney is exempt from RE CE ... True or False | True |
| Experience Requirement for Broker Application: | applicant held an active sales assoc lic under one or more RE brokers for at least 24 months during the five -year period preceding application to become a RE Broker. The employment can be under a FL RE Broker or Broker lic in another St or Foreign juris |
| Armed Forces Renewal Exception: | licensee in good standing who is a member of the US Armed force is exempt from the renewal provisions during the licensees period of active duty and 6 months after discharge from active duty |
| The DBPR may issue a temporary RE Lic to the spouse of the active duty member who is assigned duty in FL. The Spouse must hold a valid RE Lic in another St or foreign jurisdiction but: | A temporary license expires six-months after the date of issue and IS NOT renewable |
| When a licensee has been inactive for 12 months or less: | Licensee may satisfy the education requirement by completing 14 hours of FREC approved continuing education |
| A Group License is sometimes issued to sales associates or broker associates who are; | registered under an owner-developer. An owner-developer may own properties in the names of various entities. If the entities are all connected so that ownership and control is with the same individuals sales assoc & assoc brokers may be issued a Group Lic |
| Individuals exempt from a Real Estate License include: | individuals who are managers of condominiums or cooperative apartment complexes who rent individual units for periods no longer than one-year and who ARE NOT PAID A COMMISSION |
| CH 475 of FL Statutes exempts the following individuals from holding a RE License: | Individuals who rent lots in mobile a home park or recreational park |
| With a Limited Partnership; | A certificate of Limited Partnership must be filed with the FL Dept of State |
| In a Limited Partnership; Sales Associates and Broker Associates; | may not be General Partners. However they may be limited partners |
| A Corporation Sole cannot be registered as a Real Estate Brokerage entity? True or False? | TRUE |
| Can a Cooperative Association be registered as a Real Estate Brokerage Entity? | NO, a cooperative association is permitted to conduct commercial business and to convey, sell, or buy it's own property BUT CANNOT BE REGISTERED AS A RE BROKERAGE ENTITY |
| Can a Temporary Shelter be considered a Branch Office? | A temporary shelter in a subdivision being sold by a broker IS NOT a branch office if the shelter is intended only for the protection of customers and sales associates |
| The names of sales associates and broker associates ARE NOT required on the entrance sign. However; | If the associates names appear on the sign, they must be placed below the name of the broker(s) and the appropriate license type (sales assoc or broker assoc) must appear next to each assoc's name |
| ADA Americans with Disabilities Act on New Construction and Renovation: | Public accommodations and commercial facilities must be newly constructed or renovated, if readily achievable, to meet accessibility standards |
| A RE licensee who furnishes rental information for a fee must provide a receipt that states; | that the prospective tenant who does not obtain a rental is entitled to be repaid 75% of the fee if requested within 30 days of the contract/receipt date |
| Advertisements and Religion; | Advertisements should refrain from an explicit preference, limitation, or discrimination on the basis or religion, such as "Jewish Home" or "No Christians" |
| Can a RE Licensee call a FSBO seller? | Yes, but only if the licensee has an actual buyer interested in the property and for purposes of negotiating the sale |
| What does institutional advertising describe? | The Firm, It's Personnel and it's Services |
| Although Sales Associates may use Licensed Personnel... | Only Broker's may pay them a commission |
| Company Dollar / Number of Transactions = | Average Company Dollar Per Transaction |
| Amount Needed (expenses + Profit) / Avg Company Dollar = | Number of Transactions Required Per MOnth |
| Explain a Graduated Commission: | The Sales Associate is paid at a low rate until a specified level of production has been achieved. Subsequent commissions are paid at higher rates that continue to rise as production increases to pre set limits |
| FREC rules require the broker to be a signatory on all Brokerage Escrow Accounts. If the Brokerage has more than one licensed Broker; | .. one of the Brokers may be designated as the signatory on the escrow account |
| In the ordinary course of business the Broker may designate another person, such as a bookkeeper, to sign checks on the account... True or False? | .. TRUE |
| Brokers MUST place Trust Funds into an Escrow Account IMMEDIATELY, which means; | No later than the end of the third business day after it has been received (from sales associate or employee). The First Day of the 3 business day period coincides with the day that the sales assoc must turn over the deposit to the broker |
| ESCROW DISPUTES; How many days does the Broker have to institute one of the FOUR (4) Settlement (or escape) procedures from the time the Broker received the conflicting demands? | ... 30 days (example; if a broker waits 10 days after receiving conflicting demands for escrow money, he only has 20 days remaining to implement one of the settlement procedures) |
| What is Mediation? | Mediation is the First of (4) Settlement Procedures; Mediation is an informal, non-adversarial process intended to reach a negotiated settlement (if all parties give consent, the dispute may be mediated) |
| What are the (4) Settlement Procedures? | Mediation (voluntary nego SIF), Arbitration (3rd party makes binding judgement), Litigation (Lawsuit, case decided by court), EDO - Escrow Disbursement Order (Broker requests FREC to make determine if funds are NOT held in atty ot Title Co escrow |
| What if the Broker requests an EDO (Escrow Disbursement Order) from the FREC and the escrow dispute is either settled or goes to court before the EDO is issued? | The Broker must notify the FREC within 10 days |
| What is the next step after a complaint is filed with the DBPR and the DBPR investigates the complaint? | Provided the complaint is legally sufficient, the Department prepares a written investigative report that is then submitted to the PROBABLE-CAUSE PANEL |
| Regarding Complaints to the DBPR and possible settlement; What is a Settlement Stipulation? | A STIPULATION is an agreement as to the facts of the case and the penalty reached between the attorney for the DRE and the licensee or licensee's attorney |
| At the conclusion of a Formal Hearing; what does an Administrative Law Judge prepare and submit to the FREC? | A Recommended Order that includes; Administrative Law Judges Findings, Conclusions and Recommended Penalty, if any, in accordance with the Commissions range of penalties |
| How long does a licensee have to correct a minor violation before being issued a citation or be subjected to a disciplinary proceeding? | ... 15 days after being notified of the violation |
| Licensees receiving a Citation have how long to accept or reject the alleged violation(s) as specified in the Citation? | ... 30 days . If the citation is not disputed the Citation Penalty will become effective , a final order issued, and the case will be closed |
| When a Real Estate Broker's license is suspended or revoked, what happens to all licenses issued to the sales associates who work for the penalized Broker? | All licenses issued to those sales associates are placed in an Involuntary Inactive Status until re registered under a different broker |
| Under Criminal Penalties; What is a Third-Degree Felony? | Unlicensed Activity, including providing real estate services for compensation without a real estate license |
| Failing to provide accurate and current rental information for a fee may be what type of penalty? | First Degree Misdemeanor (fine of no more than $1000 and up to 1 year in jail) |
| Real Estate Recovery Fund; The fund reimburses consumers who are financially injured by a licensee up 50k one judgement and 150k multiple judgements and does not include; | punitive damage and interest |
| With regard to legal claims made as a result of a Broker following an EDO (Escrow Disbursement Order); | No disciplinary action will be taken against a broker who had previously requested an EDO and followed it's instructions |
| If after following an EDO the broker is sued and loses he is eligible for reimbursement of reasonable attorney's fees and court costs and the plaintiff's reasonable atty fees and court cost, however: | In all cases punitive damages, treble damages and interest may not be recovered from the fund |
| What is the purpose of an Appraisal? | To determine the Problem to be Solved, and the Type of Value to be Estimated. An Appraiser must properly identify the problem to be solved |
| Define the "Intended User of an Appraisal"... | The Client and any other party, identified by name or type , as users of the appraisal report based on communication with the client at the time of assignment |
| Define "Intended Use of the Appraisal"... | How the Appraisal Report will be used.. ie, mortgage loan underwriting, assist buyer with buying decision, estate tax, etc |
| Define the "Type and Definition of Value used in the Appraisal"... | The Type and Value to be estimated must be identified. Many types of Value and each will result in a different Value Estimate |
| A Real Estate-Related Financial Transaction is any transaction involving the: | Sale, Lease, Purchase, Investment or Exchange of Real Prop incl interest of the property, 2. refi of real prop or 3. use of or int in real prop as security for a loan, investment incl mortgage backed securities |
| Unless the transaction has been specifically exempted from the requirement, Appraisals for real-estate related financial transactions require what? | ... a State Certified or State Licensed Appraiser |
| The USPAP (Uniform Standards of Appraisal Practices) is developed, interpreted and amended by who on behalf of the appraisal industry? | ASB (Appraisal Standards Board) |
| Price, Cost and Value... Define Price; | Price refers to the amount of money ACTUALLY PAID IN A TRANSACTION |
| DEfine "Going Concern Value"; | the value of an income producing property or business enterprise, characterized by a significant operating history |
| DEfine "Value In Use"; | The Value of a property based on a specified use that may not represent the properties maximum use (highest and best use) |
| MARKET VALUE is the consensus of the interactions of many buyers and sellers in a particular market. Market Value is the Value appraisers are most often concerned with, the conditions of which fall into 3 categories; | 1. the relationship, knowledge and motivation of buyer & seller 2. terms of the sale (cash, equivalent or other) 3. Conditions of the sale (exposure time in competitive market ) |
| Define "Over Improvement"; | Overimprovement occurs when more money is invested in a structure than the owner can reasonably expect to recapture |
| Define the "Principle of Conformity"; | The principle of Conformity suggest that property values are maximized when architectural homogeneity and uniformity of land use occur in a neighborhood |
| How does an appraiser determine a properties Highest and Best Use? | the appraiser estimates the development costs, projected net operating income, and overall rate of return under each alternative use, taking into account income stability |
| When is an Adjustment for Market Conditions required? | if property values have either appreciated or depreciated in a given market since the time of the comparable sales were transacted |
| How does an Appraiser determine a Normal Sales Price? | Appraiser makes any necessary adjustments to a comps transaction price for conditions of sale, financing terms, and sales concessions to determine a Normal Sales Price |
| Explain a Quantity Survey Method; | This method involves a detailed inventory of all labor, materials, products, and indirect costs plus the builders profit required to reproduce the building |
| Define incurable depreciation; | If the cost of repairing an item is greater than the value it adds to the improvement the depreciation is considered INCURABLE |
| Define Functional Obsolescence; | Anything that is inferior due to operational inadequacies, poor design, or changing tastes and preferences (poor traffic pattern, outdated design, too few baths, etc) is called FUNCTIONAL OBSOLESCENCE. |
| Define a structures TOTAL ECONOMIC LIFE; | the total estimated time in years that an improvement is expected to contribute to the properties value |
| what is the formula for arriving at ACCRUED DEPRECIATION? | effective age / economic life (60 years) x reproduction costs (ex: 4 (years) / 60 x $174k (repro cost) = $11,600 ACCRUED DEPRECIATION) |
| What is the formula for GIM (Gross Income Multiplier)? | Sales Price / Gross Annual Income = GRM (Gross Income Multiplier) |
| One of the items typically included in a Reconstructed Operating State is; | Vacancy and Collection Loss |
| What is the formula for Vacancy & Collection Loss? | PGI (Potential Gross Income) x Estimated Vacancy & Collection loss (ex: PGI $270,000 x .5 (5% Collection & Vacancy Loss) = $13,500 |
| DEfine Fixed Expenses? | Operating expenses that do not fluctuate with occupancy and must be paid whether or not the property is occupied are called FIXED EXPENSES 9ex: real estate taxes and building hazard insurance ) |
| What is the formula for Market Derived Capitalization Rate? | NOI (Net Operating Income) / Market Value = Capitalization Rate |
| Apply the Capitalization Rate to derive an indication of Value; | The appraiser divides the subject properties NOI (Net Operating Income) by the Market-Derived Capitalization Rate to obtain Capitalized Value (NOI / Capitalization Rate = Value) |
| What is the purpose of a CMA (Comparative Market Analysis)? | In the normal course of business, licensees are called upon to prepare a CMA for the seller or the buyer as a means to help make informed decisions on pricing property. |
| For the best results in marketing, where should the seller price the property? | just below the competition and just above recent sales |
| A review of properties sold within the previous 12 months shows sellers and buyers what? | the property's most likely appraisal value |
| A CMA is useful for sellers and buyers only if it fairly reflects the interaction of supply and demand for a specific property. For that reason; | it is important that all properties used in the report be similar to the subject property in: size, age, amenities and location. |
| It is important the licensee measure the home accurately. How is Gross Living Area Calculated? | by taking exterior measurements, eliminating the garage, porches and any workshops |
| Define Square Foot Adjustment; | If a comparable property has four bedrooms and the subject has only three, the square-foot adjustment probably will account for any difference |
| CBS is an acronym for; | Comparable Better - Subtract |
| CIA is an acronym for; | Comparable Inferior - ADD |
| Define a Company's Balance Sheet; | A Balance Sheet shows the company's financial position at an exact moment in time |
| Define a Company's Income Statement; | An Income Statement reflects the company's profitability over a previous accounting period |
| Of the two Inventory Costing Methods (LIFO - Last In First Out or FIFO - First In First Out) which is the most conservative? | LIFO (Last In Last Out) is more Conservative |
| Give an example of LIFO (Last In First Out) | If a clerk puts the new cheese in the front of the case (and the customer takes that first) The newer cheese will be charged at the newer (more expensive ) cost. |
| Define a Business's Liquidation Value; | the anticipated proceeds from the sale of its tangible assets less the firms liabilities |
| Is it legal in the State of Florida for a Real Estate Agent to operate as a Dual Agent? | No |
| Define a Residential Sale; | the sale of improved residential property of four or fewer units, the sale of unimproved residential property intended for four or fewer units or the sale of agricultural property of 10 acres or less. |
| Residential Transaction Disclosure Requirements DO NOT APPLY TO; | The rental or leasing of real property, unless an option to purchase all or a portion of the property improved with four or fewer residential units is given |
| Under Florida Law it is assumed licensees are operating as; | Transaction Brokers - unless another brokerage relationship is established. A written transaction broker notice is not required to be given to the buyer or the seller |
| What are Broker Bookkeeping Requirements regarding Brokerage Relationship Disclosures? | Brokers must retain relationship disclosure documents for five (5) years for all residential transactions that result in written contract to purchase and sell real property and all nonresidential transactions that use designation sales associates. |
| Define No Brokerage Relationship Duties; | Account for all funds, Disclose all facts that materially affect the value of residential real estate property that are not readily observable to the buyer., Deal honestly and fairly |
| How does Florida real estate license law define a Single Agent? | A Broker who represents, as a fiduciary, the buyer or the seller, but not both, in the same transaction |
| In a Transaction Broker Relationship what do the parties of a real estate transaction give up? | the parties to a real estate transaction are giving up their rights to the undivided loyalty of the licensee |
| A Single Agent Relationship may be changed to a Transaction Broker Relationship at any time during the relationship, providing the agent obtains what? | Written Consent to Transition to Transaction Broker Relationship |
| When can a Designated Sales Associate be used? | In a nonresidential real estate transaction where the buyer and the seller each have assets of $1 million or more |
| Written Listing Agreements must be signed by whom and delivered when? | Both the Owner and the Broker must sign the Listing Agreement and the Broker must give the Owner a copy within 24 hours |
| Are Net Listings Legal in Florida ? | Yes, but net listings create many problems and are illegal in some states. Licensees should avoid using them. |
| What Agreements and Contracts may Real Estate Brokers Prepare in the course of their business? | Real Estate Brokers may prepare: listing Agreements, Sale Contracts, Option Contracts and Lease Agreements (on Supreme Court -approved form). |
| The Statute of Frauds States that in order for a contract to be enforceable; | It must be in writing and signed by all parties bound by the contract |
| Does the Statute of Frauds apply to Partial Performance? | Usually the Statutes of Frauds doe not apply to partial performance contracts if two conditions are met: 1. Partial Payment or full payment has been made, 2. the buyer has either taken physical possession or made improvements to the subject property |
| Explain the legal consequences of the "time is of the essence" Clause in a Real Estate Contract; | Any party's failure to perform the promises made within the contract time limits is a default by the nonperforming party. This default could result in loss of deposit or other monetary damages and a right of cancellation by the other party. |
| Define a Sole Owner; | A Sole Owner, sometimes called an OWNER IN SEVERALTY can be single, unmarried, divorced or widowed |
| licensees must present all offers... | with or without a good-faith deposit |
| Sales tax on personal Property in a contract; The FL DEpt Revenue has made several rulings on the sales tax liability of personal property included in the sale of real property... | personal property itemized in the sales contract with a separately stated price for each is subject to sales tax. However, a sale contract that simply lists the property is a nontaxable sale |
| A Special Assessment is a lien the government places on property for work done that theoretically increases the properties value. Who pays the lien by the date of closing? | The seller usually must pay the lien if the improvement is completed (certified and confirmed by the governmental agency) by the date of closing. |
| What is a Stigmatized Property? | Properties that have been the scenes of murders, suicides or are alleged to be haunted are Stigmatized Properties. It is no longer required to disclose as a material fact and a RE Agent does not have to disclose |
Created by:
RDuke77
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