GOLD COAST REAL ESTATE EXAM

GOLD COAST REAL ESTATE EXAM Farming when a licensee focuses on one type or style of property or one particular neighborhood farm area target market; one of the best ways to succeed in real estate Areas of expert knowledge required for all real estate licensees 1. Property Transfer 2. Valuation and Market Conditions 3. Marketing (consider MLS; Multiple Listing Service) Residential Transaction F.S 475 The sale of any improved residential property of 4 units or fewer. Unimproved property intended for 4 units or fewer. Agricultural properties 10 acres or less Tract Building when a developer acquires a large tract of land, records a subdivision plat map, and uses a model center from which sales may be made. Moratorium a temporary suspension of activity; an authorized delay for a building project What does the term "Commission" refer to? Florida Real Estate Commission (FREC) Deals with all things real estate in Florida What does the term "Department" refer to? Department of Business and Professional Regulation (DBPR) Issues every and any license Broker A person who performs services of real estate as a n agent for another and receives compensation for those services either directly or indirectly. Can a sales associate be compensated directly from the customer? No, they can only receive their compensation directly from their employing broker What are the requirements for a sales associate to become a broker? The sales associate must have been employed under one or more actively licensed brokers for at least 24 months within the preceding 5 years before becoming eligible to take broker examination (licensure under an owner-developer does not satisfy this requirement) Broker Associate An individual who is qualified to be issued a broker's license but who operates as a sales associate in the employ of another broker. Glorified sales associate. Does an applicant for the Florida Real Estate license have to be a resident of the state or country? No [F.S. 455. 10] What is the first question in the application for the Sales Associate license? "Have you ever been convicted or found guilty of, or entered a plea of solo contenders (no contest) or guilty, regardless of adjudication, a crime in any jurisdiction, or are you currently under criminal investigation?" Is a DUI a major traffic offense? Yes, and it must be disclosed upon application What are the four parts of application denial? 1. Application is denied by the DEPARTMENT (DBPR) 2. You are notified in writing 3. You have 21 days from day of receipt 4. to request a formal hearing from an administrative law judge How many hours of a FREC I course must one complete in order to take state exam? 63 hours including the final examination How many hours of a FREC II course must a sales associate complete in order to be eligible to become a broker? 72 hours including end-of-course examination Can a sales associate work for more than one broker or developer at a time? No Does an owner-developer receive a real estate license upon registering with the department? No Sales associate first renewal Sales associate must complete a 45 hour post license course prior to the expiration of their initial license period. Failure to complete this requirement will result in licensee being out of business and void. Continuing Education (CE) All licensees, active or inactive, must complete 14 hours of commission-approved CE and pay a renewal fee during each renewal period, excluding the first (post-license). If these requirements are not met, the licensee's license status will be changed to INVOLUNTARY INACTIVE. Attorneys-in-fact persons who are granted authority under a power of attorney to act for others in some capacity, such as signing a document. Can an unlicensed resident of an apartment receive compensation for referring a new tenant to their same apartment complex? Yes, they can receive up to $50 dollars, personal property, or credit toward rent for the referral of a new tenant in same apartment complex Power of the Department Department CAN seek out an injunction from a court against a licensee for failure to follow Department orders. Department CAN NOT issue injunctions against an unlicensed individual but may seek an injunction from the court FREC Exectutive Powers The executive powers can be excercised by the chairperson acting ALONE or can be delegated by quorum vote to any other Commission member. Violation of F.S. 475 Penalty 1. Reprimand (slap on the wrist) 2. Administrative fine of up to $5000 per offense 3. License suspension for up to 10 years 4. Total revocation What happens when a broker's license is suspended, revoked, or void/ineffective? The licenses of all persons who are employed under such broker become automatically inactive Who can cancel your real estate license? only YOU Group License A single real estate license that can be obtained if the sales associate or broker associate works for one owner-developer with affiliated organizations, which provides real estate services in different geographic areas. Who can have multiple licenses? only the broker, they must show that the licenses are necessary for legitimate business reasons Do administrative agencies have the authority to levy monetary fines for laws they have administered? Yes Special Agent Single agency. Authorized under agency law by the employer to perform a SINGLE act. subagent a subagency is not a type of agency, rather an extension of another agency a party who has been granted authority to act on behalf of another agent a subagent has the same duties to the principal as the agent who was empowered by the principal A sales associate is a subagent to the broker they work for What are the 4 terms that connect to single agency? 1. Special Agent 2. Represents 3. Fiduciary 4. Principal If the word principal comes up in a question with LIMITED REPRESENTATION, then... make sure your answer is transaction broker as opposed to single agency Single agent A broker who represents, as a fiduciary, either the buyer or seller but not both in the same transaction. Principal the party with whom the real estate licensee has entered into a single agent relationship. A customer becomes the principal once a single agency relationship has been established Transaction Broker A broker who provides limited representation to a buyer, a seller, or both in a real estate transaction, but does not represent either in a fiduciary capacity or as a single agent. Presenting Offers A broker has a duty to transmit any and all offers to the employer including oral offers or offers made without a binder deposit. Illegal Dual Agency Any attempt to represent both parties in a transaction, violation of 475 What are the three totems of Non-representation? 1. Deal Honestly and Fairly 2. Account for all funds 3. Disclose all known facts that affect value of property Principal Office Requirements Must consist of at least one enclosed room in a building of stationary construction where negotiations and the closing of real estate transactions can be conducted with privacy. How much is it to register a principal office? $2100 for two years, must be rented every two years Is the registration for a principal office transferable if you switch the offices location? Yes, if it is done within the two year period Branch Office Requirements A branch office must be owned, maintained, and operated only by the licensed broker to whom the branch office license is issued. A branch office must be under the direct supervision of the broker to whom the license is issued. Also enclosed space, stationary How much is it to register a branch office? Similar to the principal office, a registration for a branch office costs $2100 for a two year period. How does registration transfer work for branch offices? If a branch office is closed and then later reopened in the same location during the same two=year license period, a reissue of the license may be requested, without the need to pay an additional fee Office Signs A broker is required to have a sign on or about the entrance to the office and all branch offices, where it can be easily observed and ad by persons entering the office. Placed on either exterior or interior. Guidelines for Advertising 1. The advertisement must be worded so that a reasonable person knows that the advertiser is a real estate licensee 2. The brokerage name must also be clearly identified. 3. If a licensee includes their personal name in the ad, the licensee's last name must appear exactly as it is registered with the Commission Blind Ads an illegal advertisement that does not contain the registered or trade name of the broker, or for which there is doubt that the ad is that of a real estate broker. Licensees selling their property by owner Associates are entitled to deal in real property for personal benefit. Licensees should make clear they are dealing on their own behalf and not others. Licensees should make known their status as licensees to members of the public. This should be disclosed prior to entering serious negotiations (money money) Escrow funds Money held by third party for needed payments in the future, such as taxes, insurance, and required work on the property. Earnest Money Deposit money pledged by a buyer to show good faith when making an offer to buy a home. Goes into escrow account If no contract results, the deposit is returned to the buyer. Should it become a contract, the deposit serves to protect the seller in the event the buyer defaults. Postdated Checks a check with a future date on it. Considered promissory notes and can be accepted as earnest money WITH the seller's approval pg 71 lines 8-13 Where can and can't an escrow account be held? Commercial bank, title company which has trust powers, credit union, or savings and loan association located in the state of Florida. Cannot be held in a stock or bond brokerage house. commingle The act of mixing the client's funds with the broker's own funds How much is a broker required to place (and maintain) into sales escrow account? up to $1000 of personal or business funds How much is a broker required to place (and maintain) into a property management escrow account? put to $5000 of personal or business funds Depositing escrow funds Broker needs to deposit immediately no later than the end of the third business day following receipt Escrow Disputes Conflicting requests in which both the buyer and seller demand that the broker release escrowed funds How long does the broker have to notify the Commission if there are conflicting demands for escrowed funds? 15 business days from the date of the last party's demand Arbitration Dispute settlement procedure Settling a dispute by agreeing to accept the decision of an impartial outsider, legally binding Litigation Dispute settlement procedure A suit in court can be used to resolve the escrow dispute. two methods available: 1. bill of interpleader 2. A declaratory decree