FREC IStudy Guide to Sales Associate End-of-Course ExamstBased on Florida Real Estate Principles, Practices & Law, 41edition

Unit 1 The Real Estate Business Define the term “farm area”  Farm Area: to select one specific portion of a city and to become an expert in that particular portion. Distinguish among the various sales specialties.  Residential, Commercial, Industrial, Agricultural, Business Explain how appraisers are compensated.  Appraisers charge a fee based on time and difficulty of the appraisal assignment. Distinguish among the three categories of residential construction.  Speculative: build lots without prospective buyers  Custom: build home to their liking but within the guidelines  Tract: speculative lots with designated floor plans Unit 2 License Law and Qualifications for Licensure Distinguish among the various statutes important to real estate.  F.S. 20: Executive branch of the government  F.S. 120: Administrative procedure act- decide and implement  F.S. 455: Department of Business and Professional Regulations (DBPR)  F.S. 475: Real Estate Professional Practice Act o Part 1: Real Estate Agents and Brokers o Part 2: Real Estate Appraisals o Part 3: Commercial Sales Lien Act o Part 4: Commercial Leasing Lien Act  F.A.C. 61J2: Florida Real Estate Commission (FREC) rules Review the license application information concerning completing background information.  You must be truthful and explain each guilty verdict and include nolo contendere as well. Define the term “reciprocity” as it applies to a Florida license.  Reciprocity: practice of mutual exchanges of privileges. You must pass license law of 40 questions. Identify the FREC rules regarding resident of Florida.  Resident of Florida: a person who resides in Florida for four or more calendar months within the preceding year. Identify why the social security number is required on the license application.  The social security is used to determine whether applicants are in compliance with child support obligations. Review the exemptions for post-license education.  Individuals who received a four-year degree or higher in real estate Review the experience requirements for broker applicants.  Pre-license 72 hour, Post-license 60 hour, Continuing education 14 hour in addition to holding a real estate license for at least 2 years in the preceding 5 years. Distinguish between broker and broker associate registration requirements.  Broker has an office and employs associates, broker associate has an employing broker Recognize individuals who are exempt from real estate licensure.  owner exemptions,  salaried employees,  exemptions based on career,  court and legally appointed persons Unit 3: Real Estate License La