Gold Coast Real Estate Final Exam Study Guide (only contains highlights from Ch's 1, 2,3,4 and some of 11)

Real Estate Brokerage (Ch. 1) - Answer- A business in which real estate-related activities are performed under the authority of a licensed real estate broker Farming (Ch. 1) - Answer- concentrating on one type or style of property in one particular area of neighborhood Property Transfer, Valuation & Marketing (Ch. 1) - Answer- areas of expert knowledge that are required for all real estate licensees Residential Transaction (Ch. 1) - Answer- 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 (Ch. 1) - Answer- 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 Local Level of Government (Ch. 1) - Answer- control planning and zoning, property taxation, building and health code regulations also impose a moratorium or temporary delay for a building project building permits would be held until the situations are corrected Florida Real Estate License Law F.S 475 (Ch. 2) - Answer- the purpose is to protect the public Commission (Ch. 2) - Answer- Florida Real Estate Commission (FREC) Department (Ch. 2) - Answer- Department of Business and Professional Regulation (DBPR) Licensee (Ch. 2) - Answer- any person that has a permit, registration, certificate, or license that's issued by the Department Sales Associate (Ch. 2) - Answer- a person who performs real estate activities while employed by a licensed real estate broker Broker (Ch. 2) - Answer- a person who performs services of real estate for another and receives compensation for those services either directly or indirectly A sales associate who wishes to a broker must: (Ch. 2) - Answer- have been employed under one or more actively licensed brokers for at least 24 months within the previous 5 years Broker Associate (Ch. 2) - Answer- an applicant to become a "broker associate" may chose to continue employment in a sales associate position with current employer after passing the exam but will be registered under a "broker associate" after passing the exam an individual who meets the requirements of a broker but who chooses to work in real estate under the direction (employ) of another broker. An applicant for a Florida real estate license is not required to be a: (Ch. 2) - Answer- resident of Florida or be a citizen of the U.S The question that requires the disclosure of any criminal convictions, including felony or misdemeanor convictions or pleas (other than traffic offenses), regardless of adjudication (going to court) DUI must be disclosed (Ch. 2) - Answer- "Have you ever been convicted of a felony or found guilty of, or entered a plea of "nolo contendere" (no contest) or guilty to, regardless of adjudication ,a crime in any jurisdiction, or are you currently being investigated?" Application Denial (Ch. 2) - Answer- If an application to take the state exam is denied by the Department, the applicant will be notified in writing. The notification will identify the reasons for denial and advise the applicant that he or she has 21 days from the date of receipt to request a formal hearing before an administrative law judge in accordance with F.S. 120, The Administrative Procedure Act Florida real estate license law requires sales associates or broker associates to: (Ch. 2) - Answer- be employed as an agent of either broker or an owner-developer before performing real estate services for compensation. A sales associate may not be directly employed or compensated for real estate services by a member of the public. They may only be compensated by their employing broker or owner developer. Employment by a broker: (Ch. 2) - Answer- a sales associate or broke associate cannot receive compensation for performing real estate services for anyone other than his or her employing broker. A sales associate or broker can work for only (1) broker at a time. Broker are registered and licensed with the Department. Employment by an owner-developer (Ch. 2) - Answer- The owner developer must register with the department but does not receive a real estate license Post-License (First Renewal) Requirements [ F.S 475.17] (Ch. 2) - Answer- All licenses, whether active or inactive, must satisfactorily complete a Commission-prescribed post-licensing course prior to the first renewal expiry following initial licensure Sales associate first renewal (Ch. 2) - Answer- The license of a sales associate who fails to complete this requirement will become void and the license will be out of business Continuing Education (CE) (Ch. 2) - Answer- All active or inactive licensees, whether a broker or sales associate, must complete 14 hours of Commission-approved CE and pay a renewal fee during each license renewal period, excluding the first renewal period of their current license. If the CE requirement is not met within the renewal deadline, the licencee's license status will be changed to involuntary inactive. CE courses may be completed by classroom instruction or distance learning. Individuals who are exempt from licensure (Ch. 2) - Answer- "Attorneys-in fact"-person who are granted authority under a "power of attorney" to act for others in some capacity, such as signing documents. "Salaried employees" of an owner or of a registered broker for an owner, of an apartment community who work in an onsite rental office of the apartment community in a leasing capacity. "Individuals" may buy, sell or perform services of real estate for themselves without having a real estate license. Duties of the DBPR (The Department) (Ch. 3) - Answer- does not have the authority to issue injunctions against unlicensed persons, but may seek an injunction from the courts for failure to follow a Department order. The Department also has the power to issue a cease-and-desist order against an unlicensed party for violation of any rule or law under its administration. The Florida Real Estate Commission, Powers of the Commission (Ch. 3) - Answer- The executive powers can be exercised by the chairperson acting alone or can be delegated by quorum vote to any other Commission member Quasi-judicial powers (Ch. 3) - Answer- Allows the Commission to impose disciplinary action for violations of the laws or rules. Similar to the actions of a court. Can deny an application, reprimand, fine, or place a licensee on probation, suspend or revoke a license. Disciplinary Authority of the Commission (Ch. 3) - Answer- A licensee who is found guilty of a violation may be issued a reprimand or an administrative fine up to $5,000 per offense, be placed on probation, or have their license suspended for up to 10 years or permanently revoked. First renewal (Ch. 3) - Answer- For the first renewal following an initial license, licensees must renew by completing the post-licensing requirements prior to the expiration of the initial license. Failure to do so will result in a null and void license. Subsequent renewals (Ch. 3) - Answer- For all biennial renewal periods following the initial license, licensees must renew by completing the 14-hour CE requirements. Failure to renew a license prior to the expiration, in other than the initial license period, will put the license into "involuntary inactive" status. It can remain in this status for up to 2 years. Voluntary Inactive (Ch.3) - Answer- results in no longer wanting to practice real state personally, a license may remain in this status indefinitely Involuntary Inactive (Ch.3) - Answer- results in not requesting renewal of the license, paying the fee or maintaining CE requirements, cannot remain in status for more than 2 years. If a broker's license is suspended or revoked: (Ch.3) - Answer- all licenses of person employed under broker will automatically become inactive If a licensee decides to no longer practice real estate, they could return the license to the department and the license would be: (Ch. 3) - Answer- cancelled Group license (Ch. 3) - Answer- can be obtained if s.a or brkr works for one owner-developer with affiliated organizations performing real estate services in different geographic areas A broker can be issued addtl licenses in two or more capacities by: (Ch. 3) - Answer- requesting multiple licenses Multiple licenses are not available to: (Ch. 3) - Answer- sales associates or broker associates Special agent (Ch. 4) - Answer- authorized under agency law to perform a single act. A contract is formed between the employer and agent that establishes the limit of authority granted A sales associate or broker associate is considered what type of agent of their own developer (Ch. 4) - Answer- general agent A sales associate is a general agent of the broker and automatically becomes a: (Ch. 4) - Answer- subagent of all the brokers principals as an agent of the broker, a s.a has the same duties to the brokers principals, just like the broker Transaction Broker (Ch.4) - Answer- 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. Subagent (Ch. 4) - Answer- party that has been granted authority to act upon another agent Principal (Ch. 4) - Answer- party that a real estate licensee enters into a single agent relationship with Brokerage Relationship Disclosure Act (Ch. 4) - Answer- requires licensees to keep copies of disclosure documents for 5 years A broker has a duty to transmit any and all offers to the employer including: (Ch. 4) - Answer- oral offers and offers made without a binder deposit An agency relationship is created when: (Ch.4) - Answer- a broker accepts employment under a single agency agreement The broker represents the buyer and any attempt to represent both parties in a transaction would create an illegal dual agency In a single agency relationship, the employer becomes the: (Ch.4) - Answer- principal that authorizes the broker as an agent to perform certain services on ones behalf. The party that the broker does not represent as an agent is the brokers customer. A sales associate or broker associate is registered with the broker as ones agent but never an agent of: (Ch.4) - Answer- the brokers principal Fiduciary duties owed by a broker in a single agency relationship (Ch. 4) - Answer- Confidentiality, obedience, loyalty and full disclosure A significant departure is allowed in the law for brokerage offices in: (Ch. 4) - Answer- nonresidential transactions If both seller and buyer have assets of $1 million or more and request single agent representation, the broker may designate sales associates to be single agents for diff. customers in the transaction When a broker is employed to find a purchaser, he or she is entitled to: (Ch.4 ) - Answer- compensation when a buyer has met all requirements. It's done when an offer is made in accordance with terms in the listing agreement whether or not a sale is completed A broker earns a right to compensation by: (Ch.4) - Answer- performance when the broker has performed, the employer owes the broker a commission even if the transaction was not completed. In cases where the amount of compensation wasn't specified on contract, a customary commission will be due based on the type of property and fee the broker would normally charge. RESPA (Real Estate Settlement Procedures Act) (Ch.4) - Answer- allows the broker to pay referral fees without disclosure A Florida broker can pay a referral fee or share a commission with a broker that is licensed or registered with another state or foreign country. The foreign broker can accompany the customer to Florida but cannot participate in the transaction and if they do so they cannot be paid. The Florida broke is not allowed to compensate in any way to unlicensed individuals in exchange for referring business The sharing of compensation by a licensee with a party to the transaction with full disclosure to all interested parties is not a violation. Offer and Acceptance (Ch. 11) - Answer- offer and acceptance, agreement or meetings of the minds, a mutual understanding of the terms of the contract. Consideration (Ch. 11) - Answer- sufficient consideration, valuable or good consideration is sufficient, valuable consideration is money or anything of value that can be converted into money. Statue of Frauds (Ch.11) - Answer- requires certain contracts to be in writing Statute of Limitations (Ch.11) - Answer- gives time limits to allow parties to being legal action to enforce their rights to a contract Oral contracts (Ch.11) - Answer- if a contract is entirely oral, action must be brought within four years Implied contracts (Ch. 11) - Answer- A contract or agreement that creates obligations without verbally expressed terms Oral contracts are also known as: (Ch. 11) - Answer- Parol Contracts Void Contract (Ch.11) - Answer- unenforceable, can't be performed under the law