What are Specific Liens?

1. Property Taxes & Special Assessments

2. Mortgages

3. Vendor 

4. Construction Lien

What are the Duties of a Broker?

7 DUTIES

1. Deal Honestly and Fairly
2. Accoutn for All funds
3. Use skill, care and dillegence
4. Disclose ALL known facts
5. Present ALL offeres and counterofferes in a timely manner
6. Exercise limited confidentiality
7. Perform any additional duties that are mutually agreed upon.

What does USPAP state about an appraiser's compensation?

UNDERSTAND VA LOANS

VA does not make loans.  They guarantee mortgage.OTHER FEATURES

• Intrest Varies
• NO Down Payment 
• Borrower Pays 1/12 of estimated annual property tax with (PITI)
• DOES NOT REQUIRE Mortgage Insurance Premium(MIP)
• 30 Max loan period
• Can Prepay WITHOUT penalty

What does a TOWNSHIP with 36 sectors look like?

What is legally nonconforming use?

What is an Assignment of Mortgage?

How do landlords handle deposits and rents?

Accountable in three ways.

1. Hold Money is a seperate non-interest bearing account & no comingling
2. Hold Money in an interest account and pay tenant 75% of any annualized average interest or 5%
3. Post a security bond with circut court clerk for amount of security deposit and advance rent or $50,000, whicever is less & pay 5% interest per year

What can planning commission decide final authority on?

• Sub-division plat approval
• Site Plan Approval
• Sign control

What is Functional Obsolesence?

Anything inferior due to operational

inadequacies, poor design or change of

tastes and preferences. 

What is a jalousie window?  

Know the Federal Reserve’s duties

1. Conducting nations monetary policy

2. Supervising and regulating banking institutions and protecting the credit rights of the consumers

3. Maintaining the stability of our financial system.

Homestead MUST be filed by what date?

MARCH 1

What is a group license?  

License  that is issued to a sales associate or broker associate who are registered under an owner-developer.

Know about non-real estate company escrow account.  

Either have a Florida-based title company that has trust powers or a Florida attorney can escrow the fund.  IN EITHER CASE LISTING BROKER IS RESPONSIBLE.

What is speculation building?

What does Hypothecation mean?

What is Condemnation?

What is a first degree criminal violation of Chapter 475?  

Failing to provide accurate and current rental

information for a fee.  PENALTY for misdemeanor is a FINE

NOT MORE than $1,000 and/or up to 1 year in jail!

What Escape Proceedures are in an escrow Dispute?

NO M.A.L.E

Notify F.R.E.C within 15 Days

• Mediation
• Arbitration
• Litigation
• Escrow Disbursment

What is a government lot?

Fractional piece of land less than a full quarter section located along the banks of lakes and streams.  Gov. lots were identified by specific lot numbers which is the legal description for that parcel.

Differences with

Tennancy in Common,

Joint Tennancy,

Tennancy by the entireties.

Common = 2 or more people wish to share ownership of a single property, TENANTS IN COMMON.

                (not married)

Joint Tenancy-Similar to Common, but is characterized by right of survivorship. Share of a co-owner ho has died goes to the surviving co-owner and not heirs.  CAN ONLY EXIST WHEN 4 "unities" of possession, interest, title & time" are present.

Tennance by the entireties- joint tenancy between husband and wife. 4 unities must exist, must be             married at time they take title. 

What is the Telemarketing law?

• No Solicitation calls registry
•  Calls restricted to 8 am- 9pm
• $10,000 fine ( FL) $11,000 Federal fine , FSBO (for sale by owner) exception (FL) - NO FSBO exception Federal

What are the statutes of limitations on contracts?

• Written 5 years
• Oral 4 years
• Written & Oral - 5 years on written part 4 on oral part

What happens to advance rents and security deposits when a leased property is sold?

What is static risk?

What is the requirements of lead based paint disclosure.

1. Disclose the presence of known lead-based paint in property built before 1978
2. Sales contract must include the disclosure about the lead-based paint
3. EPA pamphlet regarding the danger must be given to buyers prior to sale of property
4. Seller must allow homebuyer 10 days to conduct an inspection for the presence of lead-based paint. (Seller NOT obligated to pay)

What is the difference between exempt and immune?

• Immune are city, county, state and federal ( courthouses, etc.) 
• Exempt are properties belonging to churches and nonprofit organizations. (Still subject to taxation, but owner released of obligations)

RESPA required what to be given to a loan applicant by a loan officer?

• Special information booklet (HUD) describing the buying process
• Good Faith Estimate (GFE) of closing costs
• Servicing Disclosure Statement- which discloses wether the lender intends to service the loan or transfer it.

What is a LIFE ESTATE?

• Owns the property for ONLY the period of the lifetime of an individual ( the owner of other individual).
• The owner must maintain the property and must pay all taxes and insurances and preserve the property.

Why is a T-intersection lot usually undesirable?

• Inconvenience of car headlights shining into the home
• Danger of a speeding "runaway" cars.

Who is exempt from a real estate licensure?

ANYONE GETTING A SALARY - NO COMMISSION SALES

EXAMPLES

• Property owner
• People selling cemetery lots
• person granted rights under a court order
• Attorneys at law when acting within the scope of their duties

How does an appraiser adjust for Market Conditions?

How can Tennant in Common shares can be 

• Sold
• willed to heirs

Florida Building Energy-Efficiency Rate Act?

• Requires that buyers , before signing, receive an information brochure notifying the purchaser of the option for an energy-efficiency rating on the building.
• The Act also created a uniform statewide energy efficiency rating system.

What items are required to calculate the Effective Gross Income (EGI)?

Formula is:

(PGI) - Vacancy & collection losses + Other Income=EGI

• Potential Gross Income (PGI)
• Vacancy & Collection Loss
• Other Income

What is an agreement between the DRE attorneys and a broker’s attorney is called.  

Stipulation- an agreement as to the

facts of the case and the penalty

reached between the attorneys for the

DRE and the licensee attorney.

What license doe a FEE waiver apply to?

COMPUTE Acres given a legal desription.

• 1 acre = 43,560 sq. ft
• 1 sq. mile = 640 acres
• L x W = sq. ft

What 5 things influence the demand of real estate?

• Price of Real estate
• Population numbers $ household composition
• Income of consumers
• Availability of mortgage credit
• Consumer Taste & Prefferences

Know the 4 characteristics of value

D. U. S. T

• Demand
• Utility
• Scarcity
  
• Transferability
  

How do you respond to a question that is in violation of the Fair Housing Act?

What are the definitions associated with water rights

• Accretion- The process of land buildup from water-borne rock, sand and soil.
• Alluvion- New deposits of land as a result of accretion; alluvion deposits commonly occurring at the mouth of large rivers ( Land owner is entitled to all new soil deposits)
• Erosion - Gradual loss of land due to natural forces (landowner may lose land through natural process of erosion)
• Reliction - Gradual receding of water, uncovering additional land (The new land usually belongs to the landowner of the area that was previously covered by water)

When does Title convey from seller to buyer?

When the deed is signed, delivered AND accepted

What expenses are tax deductable and which are not?

What is the Real Estate Recovery Fund?

IRS requires the buyer to withhold what percent of sale price when purchasing property from a foreign seller?

Know the difference between all the  different brokerage relationships

Transaction Broker - 7 Duties

Deal honest, Disclose, account for $, Use skill and care, Present all offers and counteroffers, limited confidentiality, Additional duties (final two are not on Single Agent)

Single Agent- 5 Duties + 4 more

 Additional are: C.O.L.D

CONFIDENTIALITY, OBEDIENCE, LOYALTY, FULL DICLOSURE

Who is Ginnie Mae? What do they do?  

GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA)

Part of HUD, They are guarantors of mortgage backed securities.  They allow lenders to get better prices for the loans in the secondary market.

Specific Performance- court make other party perform according to contract

Liquidate Damages- Amount of $ (escrow), if buyer breaches contract, seller claims the $$

Rescission - Cancellation of the contract & restoration of the parties to their original positions.

Compensatory Damages - Lawsuits to recover the amount of the actual loss.

CREDIT                                   DEBIT

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The money (credit) will always go to the smiley face, and paying (debit) will always go to the sad face.

Understand the Statute of Frauds

 Contracts that convey an interest in real

property and are not being performed within 1

year of the date created, must be in writing and

signed to be enforceable. 

What governs the Commercial Real Estate Sales Commission Lien Act?  

Chapter 745 PART III

When must a broker have an escrow check in the bank?  

By the end of the third business day

Know how to transfer a branch office license.  

Can't move or transfer a branch License. Must

let license run out and reapply.  Each branch has

a separate license.

Know what information that must be disclosed to buyers about properties.  

All known fact that materially affect the value of

the residential real property and are not readily

available.

What is conversion?

The misuse of of a clients (customer) monies.

Broker cannot use earnst monies for personal use.

Compute an IRS Straight-Line method depreciation deduction.

FORMULA for method (27.5 is IRS est.)

Depreciable basis ÷ 27.5 years ( 39 years for

commercial)  = Annual Depreciaiton

Know what information is required on the brokerage entrance sign.

3 items 

(1)TRADE NAME,

(2) Broker Name

(3) " Licensed Real Estate Broker"

Know what a proprietary lease is. 

 An written agreement between the owner-

corporation and the tenant-stockholder in a

cooperative apartment. 

Understand a metes and bounds compass

What is Wattage?

What is the defininition of Chapter 475s on residenitial property?

Property intended for use as 4 or

fewer units or the sale of

agricultural property of 10 or

FEWER acres.

Know the tools the FED uses to Influence the Money Supply.  

3 Economic Tools

• (1) Open-market operations- buy and selling of U.S Treasury securities, 
• (2) Discount Rate- Interest rate that the Fed charges banks to borrow money,  
• (3) Reserve Requirements - Change the amount of funds a bank must hold in reserves.

What do discount points do to the interest rates?

FORMULA

Loan(new mortgages) x .002 (two mills/ two-tenths of one %)

What type of evidence will prove a case?

Prima Facie Evidence.

Evidence that is good and sufficiant at its face value.

(real estate card as an example)

Time frame for acting on an escrow dispute?

No M.A.L.E

• Notify F.R.E.C 15 days of getting complaint.
• Institute a settlement within 30 business days

Know how to compute Net Operating Income (NOI).  

FORMULA 

Effective Gross Income (EGI) - Operating expenses = Net Operating Income ( NOI )

What is the differences between bargain-and-sale and quitclaim deeds.  

Quitclaim  No PROMISE OF  

Covenant of seisen -(They own the property)

What type of debts does homestead protect us from?  

Personal loans, credit cards and so forth.

Know the elements of a valid real estate contract. 

4 Elements  

• Competent Parties
• Offer and acceptance
• Legal purpose
• Consideration

Know how FREC members are paid. 

$50 a day for each business day and

expenses

Know what a DBPR investigator is authorized to do in cases of first-time minor offenses. 

 Issue a Notice of noncompliance

Know the difference between

Title Theory and Lien

Theory.  

Lien Theory- Legal concept that

regards a mortgage as just claim on

specific property pledged as security for

a mortgage debt.

Title Theory-  Concept that vests title to

mortgage property in the mortgagee (lender)

or a 3rd party

Know the difference between a fixture and personal property. 

• Personal property are things like saving account, jewelry ect. 
• Fixture are objects that were personal property but have been permanently attached to a part of real estate.

Know about offers and counter offers. 

Offers are made one party and the response can

be acceptance or a counteroffer.

• Inactive- chose not to work in industry ( Voluntary Inactive),
• Fails to renew license (involuntary Inactive)
•  Suspended 

Requirements to get license through mutual recognition

• Do not be a resident of Florida
• Apply before you come to the state.

What is the difference between base industry and service industry?

• Base industries attract outside money to the area ( film studios, citrus industry)
• Service Industries are things like grocery stores, barber shops and retail stores.

Understand CBS- CIA

Know what activities are prohibited under the Fair Housing Act. 

3 Activities

• Steering,
• Redlining 
• Blockbusting   

Know what Equity is regarding an investors’ money

Equity means the investors own money

Who insures mortgages and who guarantees mortgages

FHA is the largest government insurer

of mortgages.

What clause allows the mortgagee to advance the due date of the unpaid balance.  

Acceleration Clause

What are trigger words? 

"amount of down payment" 

"number of payments" ,

"Term of payment"

words or phrases that are misleading

Means " for the life of the guarantee"

How someone owns the property ( LIFE ESTATES)

Understand the experience requirements for broker applicants. 

• Hold a valid and active sales associates license under a broker for 24 months
• 45 hour post licensing course

Compute the new rent in a variable lease when given old rent and old index and new index

Current Rent = % x New Rate

Original Rate

Compute Percent of Profit

Made = % profit

Paid

Prorate Rent

• Amount of rent ÷ days of month = amount per day
• Amount per day x days left in month = $ due to buyer
• Amount of rent - $ due to buyer = $ earned by seller

Compute Vacancy & Collection Loss

A deduction from PGI ( Potential Gross Income)

(1) current or unexpected future space not rented

(2) Loss from uncollected rent due

Know how to compute the monthly principal payment on a mortgage

Principle Balance x Annual Interest ÷ 12= First month payment

Month mortgage-first month interest=Payment on Principal 

Begining Principle - Pricipal Payment = New Principle balance

Know how to compute housing expense ratio

FORMULA 

PITI (Principle, Interest, Taxes, Insurance)

PITI ÷ Monthly Gross Income = Housing Expense Ratio (HER)

Know how to compute deed stamps, mortgage stamps and intangible tax. 

• DEED STAMP is $.70 for each $100 of Full purchase price
• Mortgage Stamps = $.35 per $100 on the face value of the mortgage (promissory note)
• Intangible Tax = $.002 per $ 1 of debt.