Chapter Star Highlights

Question 1

Farming

Answer 1

A form of marketing where a licensee Specializes in a particular
neighborhood or type of property to increase their chances of success.

Question 2

what is the value of a business

Answer 2

The Value of a business is known as GOING CONCERN VALUE. (Includes Income, Tangible and intangible Assets, Goodwill (reputation on) plus and real estate property)-

Question 3

Requirements for License:

Answer 3

Have a Social Security #, Be 18 year of age or older, Have a high school diploma or GED. An applicant does NOT need to be a U.S. Citizen nor be a Florida Resident (the applicant may have residency in another state and apply to have a Florida non-resident license.

Question 4

Broker Licensing Requirements:

Answer 4

Have an active sales associate license for 24
months in the past 5 years and successfully pass the state test for 72 hourpre-licensing course.

Question 5

Pre-licensed requirements for sales associates

Answer 5

63 hour course
Pass 70% or higher
Course completion certificate
State exam
Pass75% or higher 

Question 6

Broker associate employment

Answer 6

Broker associate. An applicant for a broker license may choose to continue employment and a sales associate capacity with the current employer, subsequent to passing the state broker examination. If so, the applicant will be registered as a broker associate after passing the broker examination. 

Question 7

Application, denial

Answer 7

If an application to take the state exam is denied by the department the applicant will be notified in writing. The notification identified the reasons for denial and advised the applicant that they have 21 days from the date of receipt to request a formal hearing before an administrative law, judge in accordance with FS 120 the administrative procedure act 

Question 8

Does an owner – developer need to be licensed and registered?

Answer 8

Oh no developers are only registered

Question 9

One of the Individuals who are exempt from licensure

Answer 9

Attorneys in fact, are persons who are granted authority, and a power of attorney to act for others, in some capacity, such as sign in documents

Question 10

Powers of the department (DBPR)

Answer 10

The department does not have the authority to issue injunctions against unlicensed persons, but may seek injunction from the courts for failure to follow a department order 

Question 11

Who is in charge and can exercise the executive powers in the florida real estate commission?

Answer 11

The commission’s specific powers include The executive powers, it can be exercised by the chairperson acting alone, or can be delegated by quorum vote to any other commission member 

Question 12

What happens to a licensee who is found guilty of a violation?

Answer 12

A licensee who is found to be guilty of a violation may receive one of the following disciplinary actions, be issued a reprimand or an administrative fine up to 5000 per offense, be placed on probation or have their license suspended for up to 10 years or permanently revoked F.S 475 

Question 13

What should a licensee do at his first renewal?

Answer 13

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 status.

Question 14

What is special agent?

Answer 14

A special agent is authorized under an agency law by the employer to perform a single act. The employment contract between the employer and agent establishes the limit of authority granted.

Question 15

What is a principal

Answer 15

A principal is the party with whom the real estate licensee has entered into a single agent relationship. A customer becomes the principal wants a single agency relationship has been established. 

Question 16

Presenting offers

Answer 16

A broker has a duty to transmit any and all offers to the employer, including oral offers or offers made with without a binder deposit. Failure to present an offer could be consideredconcealment or a breach of trust, and could result in disciplinary action against the broker. 

Question 17

Special agent - principal and client

Answer 17

An agency relationship is created when a broker accepts employment and their a single agency agreement. A broker may represent a seller or a buyer. Any attempt to represent both parties in the transaction would create an illegal dual agency. F. S. 475.
In a single agency relationship, the employer becomes the principal who authorizes the broker as an agent to perform certain services on their behalf 

Question 18

What are the principl’s responsibilities in an agency relationship?

Answer 18

The principal in an agency relationship, whether they are a buyer, or seller may be responsible for the actions and statements of a licensee who is registered with the broker, while acting on their behalf. For example, if a licensee, who is acting as an agent of the broker, makes a statement about a sellers property the seller(principal) could inevitably be responsible for those actions or statements

Question 19

What are principal office requirements for brokerage?

Answer 19

Each active broker is required to open and maintain an office, which must be registered with the department of business and professional regulation. The office 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.

Question 20

What is the requirement to reopen a brokerage branch?

Answer 20

If a branch office is closed, and then later, reopened in the same location during the same 2 year license. A reissue of the license may be requested without the need to pay an additional fee.

Question 21

Are post dated checks acceptable?

Answer 21

Post dated checks are considered to be promissory notes and can be accepted as earnest money with the sellers approval

Question 22

Where should escrow account be held?

Answer 22

Escrow account must be held in a title company, banking institution credit union or savings and loan association account that is located and doing business in Florida

Question 23

When should a broker report a escrow dispute to the commission?

Answer 23

If a broker receives conflict and demand for escrow funds, or if the broker has good faith, doubt as to which person is entitled to the escrow property, the broker must give written notification to the commission within 15 business days from the date of the last parties demand

Question 24

What is brokers commission?

Answer 24

Brokers are entitled to compensation for professional services, when they have performed that which they were employed to perform

Question 25

Is a broker entitled to a commission when they find a buyer and makes an offer in accordance with the terms of the listing agreement?

Answer 25

When a broker is employed to find a purchaser that are entitled to compensation, when ready, willing and able buyer has met all the sellers requirements. This is accomplished when the buyer makes an offer in accordance with the terms of the listing agreement, whether or not a sale is consummated.

Question 26

What is RESPA?

Answer 26

Real Estate Settlement Procedures Act (RESPA): A federal law that requires that borrowers be informed of all settlement costs involved in the purchase of a home when funds are obtained from a federally regulated lender. The lender must provide the Loan Estimate disclosure no later that 3 days following the loan application , the lender is required to disclose any change in interest rate or the cost before closing. Note: Servicing Disclosure Statement is NOT part of RESPA

Question 27

Who is liable for a sales associates compensation?

Answer 27

A sales associate, who is not compensated as agreed upon by their employer, may not file suit against anyone, other than the employer

Question 28

Real estate brokerage partnership requirements

Answer 28

Each partner who provides real estate services to the public, either directly or indirectly, must hold an active brokers license. A sales associate or broker associate cannot be a partner in a real estate broker partnership.

Question 29

What is a joint venture?

Answer 29

A joint venture or joint adventure is similar to a partnership and some respects. The participants at a joint venture are jointly and severally liable. However, a joint venture is a temporary business that involves a single transaction or predetermined number of transactions. Since their relationship is temporary, the participants cannot bind one another to any new transactions. Joint venture can be formed either orally or in writing. No documents must be filed with the secretary of state to create a joint venture.

Question 30

What should be included in the name of a corporation for profit?

Answer 30

The corporate name must include the word corporation, Company, Inc., or the abbreviation Corp. Inc., Or co. No business is allowed to use the word company in its name unless it is formed legally as a corporation or unless the words not inc are added. 

Question 31

How should a real estate brokerage corporation be formed?

Answer 31

The corporation, and the names of all the officers and directors of the corporation must be registered. At least one corporate officer must have an active real estate brokers license. 

Question 32

What is a sole proprietorship?

Answer 32

A sole proprietorship is a business formed by an individual. The individual is personally liable for their actions and can be suit individually. asole proprietor is also liable for the acts of their employees when the acts are within the scope of the employee's employment.  a sole proprietor, can buy and sell real estate for using their own business. real estate is held in the personal name of the sole proprietor 

Question 33

What is a limited partnership 

Answer 33

A limited partnership consist of at least one general partner, and at least one limited partner in a general partnerin a limited partnership is jointly and severally liable, just as a general partner, in a general partnership

Question 34

Name two of the businesses that may register with the department to perform broker services

Answer 34

Limited partnership Sole proprietorship 

Question 35

What is culpable negligence?

Answer 35

Negligence occurs if a broker operates in a reckless, careless and excessively negligent manner. Culpable negligence is negligence for which one can be held legally accountable. A sales associate who forgets to collect an escrow deposit as specified in a sales contract may be charged with culpable negligence.

Question 36

What does the department do when an applicant is denied?

Answer 36

The department must notify the applicant in writing give the reason for the denial and inform the applicant of their right to request a formal hearing to protest the denial within 21 days

Question 37

What is the definition of blockbusting?

Answer 37

Block Bustin consists of inducing an owner to list or sell on the basis that the neighborhood is deteriorating, or becoming transitional due to an influx of minority persons This usually has to do with sellers

Question 38

What is the definition of steering or channeling?

Answer 38

Steering or channeling an individual directly, or indirectly into or away from a neighborhood or location in the multi unit, building on the basis of race, color, religion, sex, or national national urgent. This usually has to do with buyers

Question 39

What is ADA?

Answer 39

Americans with disabilities act

Question 40

ADA - Americans with disabilities act compliance

Answer 40

For existing properties that do not comply with the ADA, the owners are required to make necessary modifications, whenever such changes are readily achievable and economically feasible, which means easy to accomplish without much difficulty or expense. ADA standards must also be considered for a new construction and renovation of public accommodations and commercial facilities.

Question 41

What is real property?

Answer 41

Real property includes the physical land and improvements(real estate) together with legal rights to own or use the property. An individuals property rights are guaranteed and protected by government 

Question 42

 What are the riparian rights?

Answer 42

It is one of two types of water rights Riparian rights are the rights of an owner whose property borders, a flowing waterway, such as a river or stream. The property owner is not considered to be the owner of the water flowing over or past the property, but has a right a reasonable use of the water. This includes fishing, swimming and so on but the property owner is not allowed to divert or pollute the water dust interfering with the right of others, who have a subsequent right to use the same water.

Question 43

What is accretion?

Answer 43

It is one of the natural processes related to water Equation is an increase in land area as moving water deposits, soil, and other than it’s original location. This is the opposite of erosion.

Question 44

What is an estate in severalty?

Answer 44

It is one of the two types of freehold Estates. An estate in severalty is sole ownership of the entire bundle of rights

Question 45

What is Tenancy in common?

Answer 45

Tenancy Is an estate in common that is a freehold estate. A tenancy in common ownership can be created by the same or different deeds at the same or different times with equal or any equal shares of ownership. All owners, however, have equal right of use and possession.

Question 46

What is distinctive characteristic of a joint tenancy??

Answer 46

the distinctive characteristic of a joint tenancy is the right of survivorship upon the death of a joint tenant, The interest of the descendant does not pass according to a will, or by descendent and distribution it passes instead to the surviving joint tenants. It is also a freehold estate

Question 47

What happens when a divorce happens in tenancy by the entireties?

Answer 47

In the event of a divorce, the ownership converts to a tenancy in common, unless otherwise dictated by a court. And Florida spouses are permitted to own property separately from the marriage property owned in one pass his name before the marriage are required by gift or inheritance during the marriage is considered separate property. This is also one of the types of freehold Estates

Question 48

What is tenancy estate for years?

Answer 48

A tenancy estate for years is a non-freehold estate with a tenant in lawful possession of the property under an agreement with a landlord for a specified period of time

Question 49

Protection title

Answer 49

There is no such thing as proof of title to property. There is only evidence to support the claim.To ascertain whether or not title is good and marketable the record of ownership must be traced back for a period of time necessary to assure that no outstanding or unresolved claims exist against the title. The time period at this assertion can be made is called the root of title. In Florida, the route of title extends back 30 years from the recording of the claim. The broker must immediately informed owner regarding the condition of the title (defect)

Question 50

What is eminent domain?

Answer 50

Eminent domain is the government right to take private property through a process called condemnation. Eminent domain is one of the involuntary methods title to property can be acquired by

Question 51

What are some of the requirements when transferring title?

Answer 51

1- a legal description of the property must be provided 2- the deed must be signed by the grantor and witnessed by two persons. The grantee is not required to sign the deed

Question 52

is a movie theater or shopping center a public property?

Answer 52

A movie theater or shopping center isn’t a public property 

Question 53

What is the definition of eminent domain?

Answer 53

Eminent domain allows local state or federal government, railroads, public utilities, and public housing authorities to obtain ownership to private property. This is called taken. The taken must only be for a public use such as to build highways schools, railroads or public projects the owner must be paid a just compensation for the property.

Question 54

What is a gross lease

Answer 54

A gross lease is defined as at least in which the tenant agrees to pay fixed rental amount, and the landlord pays all expenses related to the property such as real estate taxes, insurance and maintenance cost. A residential lease is usually a gross lease.

Question 55

What are the different junior liens?

Answer 55

Jr leaves take precedence from date of recorded in the public record: . Mortgage lien . Vendors lien. . Judgment lien . Construction lien

Question 56

What is the definition of point of beginning?

Answer 56

The survey begins by giving directions from the monument to the edge of the property, which is called the point POB

Question 57

What is a township?

Answer 57

A Township is 6 milies square and contains 36 square miles

Question 58

What is a plat method?

Answer 58

The plant or recorded plat method also known as the lot and block method is a method of legal description used to identify small parcels of property and subdivided areas and cities

Question 59

What is an assessors parcel number APN?

Answer 59

An assessors parcel APN is a number that is assigned to a parcel of real property by accounting property assessor do uniquely identify that property within the jurisdiction

Question 60

How many square feet in 1 acre?

Answer 60

43560 square feet

Question 61

How many acres in one section?

Answer 61

640 acres

Question 62

What is Offer an acceptance?

Answer 62

There must be an offer acceptance, agreement or meeting of the minds. A mutual understanding of the terms of the contract is which were an offer made by one party is excepted by another party and communicated to all parties. 

Question 63

What are the essentials of a valid contract?

Answer 63

Memory device colic C = competent parties O= offer acceptance L= lawful subject I= in writing C= consideration

Question 64

How can I write for an interest in land be enforceable under the statute of frauds

Answer 64

It requires a contract for the transfer of a right or interest in land to be in writing in order to be enforceable 

Question 65

What is the statute of limitations?

Answer 65

The statute of limitations provides time limits during which parties are allowed to bring legal action to enforce their rights and their contract 

Question 66

What is an assignment of contract?

Answer 66

The sale, transfer or subrogation of rights in a contract is called an assignment

Question 67

What is an implied contract?

Answer 67

An implied contract exist when some or all of the terms and conditions can be assumed by the nature of the agreement, or the words and actions of the parties and implied contract can be either oral or written, or could be an implied provision of another contract 

Question 68

What is a void contract?

Answer 68

A contract that is void is inherently unenforceable, avoid contract, cannot be performed under the law.

Question 69

What is a suit for specific performance?

Answer 69

It is one of the three basic remedies of a breach of contract. The party who is not in default, ask the court to require the other party to perform as agreed in the contract. This remedy is usually available in connection with the sale of real estate and is usually a remedy taken by the buyer.

Question 70

What are liquidated damages?

Answer 70

It is one of two types of damages. Liquidated damages are those that are specified and agreed upon in a contract the parties have agreed to the penalty to be imposed in the event of a breach by either party. This usually involves the seller retaining the deposit and event of a buyer default. 

Question 71

Does the use of an as is provision in a contract will leave the seller of his responsibility?

Answer 71

The use of an as is provision in a contract, does not relieve the seller of this responsibility 

Question 72

What is an exclusive right of sale listing?

Answer 72

An exclusive rate of sale listing is one of the types of list contracts. It is a bilateral contract in which the property owner promises to pay a commission, regardless of who sells the listed property . This is the most used type of listing contract.

Question 73

What is an option contract?

Answer 73

An option contract is a right to buy a property during a specified period of time at a specified price. It is not an obligation to buy the property, as is the case with a sales contract.

Question 74

What is the lien theory of mortgages?

Answer 74

Florida is a lien theory. State lien theory allows the buyer to retain the ownership of the property during the loan period

Question 75

What is a promissory note?

Answer 75

The promissory note is a legal instrument that includes the Borrower's promise to repay the loan with interest, according to the terms of the note

Question 76

What is satisfaction of mortgage?

Answer 76

Satisfaction of mortgage is when loan has been paid in full in a theory state, the mortgagor should receive a letter of satisfaction from the mortgagee within 60 days of the loan payoff

Question 77

What is a mortgagor and a mortgagee?

Answer 77

A mortgagor is the borrower, the mortgagee is the lender. The mortgage is the lien that secures that.

Question 78

What are the parties to a mortgage?

Answer 78

The parties to a mortgage are the property owner, the mortgagor is the Party who gives the mortgage to the lender to secure the loan. the lender. The mortgagee is the party who receives the mortgage from the property owner. the mortgagor pledges the property as security to the mortgagee. the mortgagor owns the real property while the mortgagee owns the mortgage which is personal property.

Question 79

What is an exculpatory clause?

Answer 79

The culpatory clause limits the lenders rights in a foreclosure to the amount receipt from the sale of the foreclosed property

Question 80

What is an equity of redemption?

Answer 80

An equity of redemption is the right of a borrower to cure the default before foreclosure, rather than lose the property. The borrower must pay the entire balance of the debt plus any interest in cost that has occurred since the default. equity of redemption exist in Florida up to the moment of foreclosure.

Question 81

What happens after all lien holders have been paid from the proceeds of a foreclosure?

Answer 81

If all lienholders have been paid from the proceeds of the foreclosure, sale and surplus funds remain, are paid to mortgagor.