Real estate

What is the practice of concentrating on a specific type of property or neighborhood in real estate called?

Farming

What are the areas of expert knowledge required for real estate licensees?

Property Transfer, Valuation and Market Conditions, Marketing

What is tract building in real estate?

When a developer acquires a large tract of land, records a subdivision plat map, and uses a model center for sales.

What are local governments responsible for in real estate?

Planning and zoning, property taxation, building and health code regulations.

What is the minimum employment requirement for a broker applicant in Florida?

Must have been employed under one or more actively licensed brokers for at least 24 months within the preceding five years.

What must broker applicants complete to obtain an initial broker license in Florida?

All broker pre-licensed requirements, including a 72-hour course and 60 hours of post-license education.

What is a broker associate?

An applicant for a broker license who chooses to continue employment as a sales associate after passing the broker examination.

What are the general qualifications for obtaining a Florida real estate license?

Must be at least 18 years old, have a high school diploma, and possess a social security number.

What must an applicant disclose when answering background questions for a real estate license?

Any criminal convictions, including felonies, misdemeanors, and DUI.

What happens if an application to take the state exam is denied?

The applicant is notified in writing and has 21 days to request a formal hearing.

What is the employment restriction for sales associates in Florida?

They can only work for one broker at a time.

What is required for the first renewal of a sales associate license in Florida?

Completion of a 45-hour post-licensing course prior to the expiration of the initial license period.

What happens if continuing education requirements are not met by the renewal date?

The license status changes to involuntary inactive.

Who is exempt from licensure in real estate?

Attorneys-in-fact and salaried employees of certain entities like government agencies and public utilities.

What is the role of the Department of Business and Professional Regulation (DBPR) in real estate?

Responsible for licensing and regulation of the real estate profession.

What powers does the DBPR have regarding unlicensed persons?

Can issue cease-and-desist orders but cannot issue injunctions directly.

What is the Florida Administrative Code (F.A.C.) 61J2?

Contains Commission rules that apply to real estate licensees.

What is required for all active or inactive licensees during each license renewal period?

Completion of 14 hours of Commission-approved continuing education and payment of a renewal fee.

What happens to a license if continuing education is not completed within two years?

The license becomes null and void.

What is the definition of a cease-and-desist order?

A demand for a recipient to immediately stop an illegal activity.

What must a sales associate do if they fail to complete their post-licensing requirements?

Their license will become null and void, and they must retake the 63-hour Sales Associate course.

What is the difference between being registered and licensed in real estate?

Registered means the entity is recognized but not licensed to perform real estate services.

What is the consequence of not completing continuing education by the renewal deadline?

The licensee's status will change to involuntary inactive.

What is the definition of a broker in the context of real estate?

A licensed sales associate who has met additional requirements to operate independently.

What is the significance of the 21-day period after application denial?

It allows the applicant to request a formal hearing regarding the denial.

What is the primary function of the Florida Real Estate Commission (FREC)?

To regulate the real estate profession in Florida, including licensing and discipline.

How many members are on the Florida Real Estate Commission?

Seven members, including one chairperson.

What are the executive powers of the FREC?

Promulgation of publications, investigation of complaints, and delegation of powers.

What disciplinary actions can the FREC impose on licensees?

Reprimand, administrative fines, probation, license suspension, or permanent revocation.

What is the maximum administrative fine the FREC can impose per offense?

$5,000.

What is required for the first renewal of a real estate license in Florida?

Completion of a 45-hour post-licensing course.

What happens if a licensee fails to renew their license on time?

The license becomes involuntarily inactive.

What is the duration of involuntary inactive status before a license is null and void?

Two years after the last renewal.

What is a group license in real estate?

A single license for a sales associate or broker associate working for one owner-developer with affiliated organizations.

Who can be issued multiple licenses in Florida real estate?

Only brokers, not sales associates or broker associates.

What is the role of a special agent in real estate?

To perform a single act or transaction.

What is the difference between a single agent and a transaction broker?

A single agent provides full representation to either the buyer or seller, while a transaction broker provides limited representation to both.

What is a subagent in real estate?

An agent acting on behalf of another agent, with the same duties to the principal.

What is the duty of a transaction broker regarding offers?

To present all offers to the employer, including oral offers.

What must be included in all real estate advertisements?

The registered name or trade name of the brokerage firm.

What constitutes a blind ad in real estate?

An advertisement that does not include the registered or trade name of the broker.

What is the requirement for a principal office in Florida real estate?

Must consist of at least one enclosed room in a building of stationary construction.

What happens to the licenses of employees if a broker's license is suspended?

All licenses of persons employed under that broker become automatically inactive.

What is the maximum time a license can be suspended?

Up to 10 years.

What is the consequence of failing to complete post-licensing requirements?

The license status becomes null and void.

What is the difference between voluntary and involuntary inactive status?

Voluntary inactive status is chosen by the licensee, while involuntary inactive status occurs due to failure to renew.

What is required for a branch office in Florida real estate?

Must be registered individually with the DBPR and pay the appropriate fee.

What must a broker do to move their principal office?

File a 'change of address' form with the DBPR.

What is the duty of a broker in a no brokerage relationship?

To deal honestly and fairly, account for all funds, and disclose known facts affecting property value.

What is the consequence of not presenting an offer as a transaction broker?

It may result in concealment or a breach of trust, leading to disciplinary action.

What is the purpose of the Department of Business and Professional Regulation?

To oversee various professional regulations, including real estate in Florida.

What must licensees disclose when selling their own property?

Licensees must make clear they are dealing on their own account and not on behalf of others.

When should licensees disclose their status to the public?

Disclosure should occur prior to entering serious negotiations.

What is an earnest money deposit?

A deposit showing good faith on the part of the buyer, usually accompanying an offer.

What is the timeframe for verifying earnest money deposits?

Verification is required within 10 business days after each deposit is due.

What types of accounts can hold an escrow account in Florida?

An escrow account may be held in a commercial bank, title company, credit union, or savings and loan association.

What is prohibited regarding personal funds and escrow accounts?

Brokers cannot commingle personal funds with escrow or trust funds.

What is the maximum amount a broker can deposit in a sales escrow account?

Up to $1,000 for maintaining the account.

What is the maximum amount a broker can deposit in a property management escrow account?

Up to $5,000 for maintaining the account.

What is the timeframe for a sales associate to deposit earnest money?

Deposits must be made by the end of the next business day following receipt.

What actions must a broker take if they receive conflicting demands for escrowed funds?

The broker must notify the Commission (FREC) within 15 business days.

What are the three dispute settlement procedures for escrow disputes?

Mediation, Arbitration, and Litigation.

What is a bill of interpleader?

Litigation filed by the broker if they do not claim rights to the deposit under dispute.

What is the exemption regarding sales contracts and appraisals?

A broker may refund the deposit if the appraisal is less than the agreed price or financing is disapproved.

What is Florida's stance on listing contracts?

Florida is a 'Find a purchaser' state, and commission is due whether or not a sale is consummated.

What is required for a broker to earn a commission?

The sale must close to earn the commission.

What is prohibited regarding kickbacks in real estate?

Brokers cannot accept or give fees or kickbacks for referrals of settlement services in federally related mortgage loans.

What does RESPA allow regarding referral fees?

RESPA allows brokers to pay referral fees between real estate agents and brokers without disclosure.

What must a Florida broker do if an out-of-state broker provides real estate services in Florida?

No referral fee or commission can be paid if the out-of-state broker provides services.

What must a sales associate do if not compensated as agreed?

They may not file suit against anyone other than their employer.

What must a resident licensee do if they become a non-resident?

Notify the Commission of the change in residency within 60 days.

What is required for a Real Estate Corporation to operate?

At least one corporate officer must have an active real estate broker's license.

What is a Real Estate Brokerage Corporation allowed to do?

They can buy and sell for their own account and broker transactions between buyers and sellers.

What types of business formations can register as real estate companies?

Corporations, Limited Partnerships, General Partnerships, Sole Proprietorships, Limited Liability Companies, Limited Liability Partnerships.

What types of business formations cannot register as real estate companies?

Joint Ventures, Corporate Sole, Business Trusts, Cooperative Associations, Unincorporated Associations, Not-for-profit corporations.

Who must control brokerage entities?

Those in control must be brokers (active or inactive) and unlicensed registered persons.

What is required for each brokerage entity?

Each must have at least one active broker in control.

Can a sales associate or broker associate be a partner in a real estate brokerage?

No, they cannot be a partner in a real estate brokerage relationship.

What is a general partnership?

A business formation where two or more people share the profits or losses of a business.

How can a partnership agreement be formed?

It can be expressed or implied, orally or in writing.

What is a joint venture?

A temporary business arrangement for a single transaction or predetermined number of transactions.

Can participants in a joint venture bind each other to new transactions?

No, participants cannot bind one another to new transactions.

What must a corporate name include?

It must include 'corporation', 'company', 'incorporated', or their abbreviations.

What is the penalty for a second-degree misdemeanor in license law violations?

Up to $500 and/or imprisonment for up to 60 days.

What constitutes a third-degree felony in license law violations?

Acting as a broker or sales associate without a valid and current active license.

What is concealment in real estate fraud?

When a broker fails to disclose information to a party, such as material defects.

What is culpable negligence?

Excessive negligence by a broker, such as forgetting to collect an escrow deposit.

What is misrepresentation in real estate?

Mistreatment or omission of facts regarding a property or transaction.

What is the purpose of the Florida Real Estate Recovery Fund?

To compensate individuals who suffer financial losses due to misconduct by licensed real estate professionals.

What is blockbusting?

Inducing an owner to sell based on the fear of neighborhood deterioration due to minority influx.

What does steering or channeling refer to?

Directing individuals into or away from neighborhoods based on race, color, religion, sex, or national origin.

What is redlining?

Refusal by a lender to approve a mortgage based on geographical area, property age, income level, or racial composition.

What does the Americans with Disabilities Act (ADA) require from property owners?

To remove barriers limiting access for individuals with disabilities.

What are the three ways a landlord can account for security deposits in Florida?

1. Non-interest escrow account, 2. Florida interest-bearing account, 3. Commingled funds with a surety bond.

What is the time frame for a landlord to return a security deposit?

15 days after the tenant vacates the premises if there are no claims for damages.

What is the federal law regarding telephone solicitation calls?

Prohibits calls before 8 am and after 9 pm.

What is real property?

Physical land and improvements, along with legal rights to own or use the property.

What are riparian rights?

Rights of an owner whose property borders a flowing waterway, such as a river or stream.

What is accretion in relation to land?

An increase in land area as moving water deposits soil in a new location.

What is erosion?

The process of land being worn away, opposite of accretion.