Real Estate Sales Associate Review Flashcards

A comprehensive set of vocabulary flashcards covering Florida real estate principles, practices, and law based on practice exam materials.

Residential Property (License Law Definition)

Improved residential property of $4$ or fewer units, unimproved residential property intended for $4$ or fewer units, or agricultural property of $10$ acres or less.

Spec Building

A type of building where a contractor builds homes for sale on several vacant lots in an established subdivision without having buyers already lined up.

Absentee Ownership

A situation where a property owner does not reside on the property and relies on a property manager to manage the investment, which is the principal reason for the growth of the property management field.

CMAs and BPOs

Comparative Market Analyses and Broker Price Opinions; these are estimates of value or pricing aids used by licensees that cannot be legally referred to as appraisals.

USPAP (Uniform Standards of Professional Appraisal Practice)

The set of standards that any appraisal prepared by a real estate broker must follow when used in a federally-related transaction.

Subdivision Plat Map

A map showing the location and boundaries of individual lots, streets, and public utilities, though it typically does not contain restrictive covenants.

Farming

A licensee's practice of specializing in a specific neighborhood by visiting neighbors and sending direct mail pieces to cultivate future business.

Broker Associate

A person who holds a broker's license but chooses to work under the direction of another broker or an owner-developer.

DBPR (Department of Business and Professional Regulation)

The state department responsible for administering the Florida Real Estate license law.

Mutual Recognition

An agreement between Florida and other states allowing out-of-state brokers to qualify for a Florida license by passing a $40$-question Florida-specific exam.

Involuntary Inactive

The license status of an individual who fails to renew their license or complete the required education by the expiration date.

Quasi-judicial Power

The Florida Real Estate Commission's power to impose disciplinary penalties such as fines, license suspensions, or revocations.

Group License

A registration for sales associates and broker associates who work for an owner-developer with several affiliated business entities.

Fiduciary Relationship

A relationship of trust and confidence between a broker and a principal, characterized by duties such as loyalty, confidentiality, and obedience.

Single Agent

A brokerage relationship where a broker represents either the buyer or the seller, but never both in the same transaction, as a fiduciary.

Transaction Broker

The presumed brokerage relationship in Florida, where the broker provides limited representation to a buyer, seller, or both, but does not represent either in a fiduciary capacity.

Concealment

A form of fraud involving the failure to disclose known facts that materially affect the value of residential property.

Escrow Account

A trust account in a Florida commercial bank, savings association, or credit union used to maintain funds belonging to others; brokers may place up to $1,000$ of personal funds in a sales escrow account.

Commingling

The illegal act of mixing a buyer's good faith deposit with personal funds or the broker's business funds.

Conversion

The unauthorized use or retention of money or property belonging to another, such as a broker spending a client's deposit.

Bill of Interpleader

A legal action filed by a broker in an escrow dispute when the broker relinquishes any claim to the funds and asks the court to determine the rightful owner.

Ostensible Partnership

A situation where brokers share office space without informing the public they are separate firms, creating the appearance of a legal partnership.

Real Estate Recovery Fund

A fund established to reimburse members of the public who have been financially injured by a licensee's violation of Chapter $475$ and have an uncollectible judgment.

Legally Sufficient

A determination by the DBPR that a complaint contains facts indicating a violation of Florida statute, FREC rules, or DBPR rules.

Writ of Supersedeas

A court order that stays the enforcement of a final order from the FREC while an appeal is being processed.

Moral Turpitude

Conduct that is contrary to justice, honesty, or good morals, such as larceny or embezzlement, which can lead to license discipline.

Blockbusting

The illegal practice of inducing homeowners to sell their property by making representations that minorities are moving into the neighborhood.

Redlining

The illegal practice by lenders of refusing to provide financing or insurance in specific geographic areas based on the racial or ethnic demographics.

Accretion

The process of land buildup from water-borne rock, sand, and soil.

Reliction

The increase of land due to the uncovering of soil when water levels recede.

Estate for Years (Tenancy for Years)

A leasehold estate for a definite period of time.

Life Estate

A freehold estate where an individual owns a property only for the duration of the life of a specified person.

Remainder Estate

The interest in real property that is conveyed to a third party (the remainderman) at the termination of a life estate.

Fixture

An item of personal property that has been permanently attached to real estate so that it is now considered part of the real property.

Tenancy in Common

A form of co-ownership where owners have undivided interests but no right of survivorship; the interest passes to heirs upon death.

Joint Tenancy

A form of co-ownership requiring four unities (Possession, Interest, Time, Title) and featuring the right of survivorship.

Tenancy by the Entireties

A form of co-ownership between a married couple with the right of survivorship; upon divorce, it becomes a tenancy in common.

Habendum Clause

A clause in a deed that starts with words like "to have and to hold" and defines the bundle of legal rights being conveyed.

Seisin Clause

A clause in a deed where the grantor warrants they own the property and have the power to convey it.

Quitclaim Deed

A deed that provides the grantee with the least protection, often used to clear clouds on a title by conveying whatever interest the grantor may have.

General Warranty Deed

The most common and desirable deed for a grantee, as it contains the most comprehensive warrants from the grantor.

Net Lease

A lease where the tenant pays a fixed rent plus property expenses such as taxes and insurance.

Eminent Domain

The government's power to take private property for public use through a legal process called condemnation.

Constructive Notice

Notice to the world at large provided by recording a document in the public records.

Statute of Frauds

A law requiring that contracts for the sale of real property and leases for a period longer than $1$ year must be in writing and signed to be enforceable.

Statute of Limitations

Specific time periods during which a party can bring a legal suit for breach of contract ($5$ years for written contracts, $4$ years for parol contracts in Florida).

Novation

The substitution of a new party and/or new terms to an existing obligation, such as when a lender releases an original mortgagor and accepts a new one.

Lien Theory

The legal concept applied in Florida where the mortgagor (borrower) retains title to the property while the mortgagee (lender) holds a lien.

Ginnie Mae

A government-owned entity that guarantees mortgage-backed securities carrying the full faith and credit of the United States government.

External Obsolescence

A loss in value due to factors outside the property boundaries, such as a nearby noisy highway or a junkyard.

Plottage

The added value created by combining two or more small, contiguous lots into one large tract through assemblage.

Ad Valorem

A Latin term meaning "according to value," referring to property taxes.

One Mill

A unit of taxation equal to $1/1000$ of a dollar or $0.001$.

Concurrency

A requirement in Florida growth management that infrastructure, such as roads and utilities, must be in place before development is allowed.

A BAR SALE

Memory aid for the eight services of real estate: Advertise, Buy, Appraise, Rent, Sell, Auction, Lease, and Exchange.

IRMA

Memory aid for the four tests of a fixture: Intent, Relationship, Method, and Adaptation.

DEEP-C

Memory aid for the bundle of property rights: Disposition, Enjoyment, Exclusion, Possession, and Control.

PITTS

Memory aid for the requirements of Joint Tenancy: Possession, Interest, Time, Title, and Survivorship.

COLIC

Memory aid for the five essentials of a real estate contract: Competent parties, Offer and acceptance, Legality of object, In writing and signed, and Consideration.