Level 1 - 2026 FL Real Estate

Using AceableAgent, October 2026, Pre-licensure course. Chapters 2-6 (1 is intro to the study software)

real estate brokerage

the businesses of overseeing consummating, and completing real estate transactions and business by bringing together the parties to a transaction

Residential Homeowners

sells primary residences to homeowners

Residential Investments

Sells residential property to investors

Commercial Sales

Sells commercial property to tenants (including offices, industrial spaces, PUDs, and retail)

Commercial Leasing

Leases commercial property to tenants (including offices, industrial spaces, PUDs, and retail)

Property Manager

Someone who is hired by a property owner to market, maintain, and oversee the day-to-day operation of a property - typically a rental property. Leases and manages residential investment property on behalf of the owner (for a fee).

Agricultural

Sells farm land and other agricultural properties

Unimproved Land

Sells unimproved land to investor or subdividers

Residential Leasing or Apartment Broker

Leases residential properties for landlords or helps residential tenants find homes to rent

Foreclosure, Short Sale, or REO Specialist

Sells distressed properties in short sales or helps buy distressed properties in short sales or foreclosure actions

Seller’s Market

There is not a lot of supply, but there is a high demand. Favors the seller. The challenge becomes making sure the buyer can get an offer accepted without going much higher than the listing price.

Buyer’s Market

There is a high supply and lower demand. Favors the buyer. The buyer is able to get a better deal on a piece of real estate due to the lack of buyers and the excess of properties.

Broker Definition

Person who runs a brokerage, OR the actions taken to fulfill a real estate transaction

Brokerage Definition

the businesses of overseeing, consummating, and completing real estate transactions and business by bringing together the parties to a transaction.

Brokerage Duties

Sales and leasing

Counseling clients and customers

Property management

Value and financing

Development and construction

These duties are carried out by constantly searching for new people to work with, whether they be sellers, buyers, or third parties.

And by perpetual solving of problems to get a transaction to closing.

Agent-Client Contract

Should always be in writing, and if it’s in the contract, it has to be done.

Seeking out the other party

If an agent is selling a house, they’ll need to find a buyer. ** If they have a BUYER who needs a house, they’ll need to help find a seller who fits their client’s wants.

Providing Appropriate Advice

Advising clients appropriately and directing clients to seek legal advice when needed is an important brokerage duty.

Confidentiality

Brokers always have the responsibility of protecting their clients’ confidentiality.

Compliance

Brokers are not exempt from the law. This means everything must be carried out in accordance with the law.

Business Broker

a broker who specializes in selling businesses in Florida

business opportunity

a real estate transaction involving a business that already exists and includes both tangible and intangible assets

farm area (target market)

a specific area a real estate associate chooses to specialize and become an expert in; aka target market

follow-up

the contact a sales associate makes with a buyer or seller after closing a real estate transaction

multiple listing service (MLS)

a database in which local member brokers share listings so that fellow member brokers can procure buyers for those properties

community association manager (CAM)

a type of property manager that manages a community association for properties like condos, co-ops, timeshares, manufactured housing parks, and PUDs.

property management

the vocation of renting or leasing someone else’s real property on their behalf in exchange for compensation and in accordance with a property management employee contract

absentee owner

a property owner who does not occupy the property in question and therefore often utilizes a property manager’s services.

marketing plan

should include a market analysis, a budget, and an outline of chosen marketing tactics.

marketing analysis

analysis of the property, its region, and the neighborhood.

fair marketing

can’t pick and choose tenants based on factors like race or gender. Include EQUAL HOUSING logo in marketing graphics.

Property Specialization

industrial, special-purpose, residential, or commercial.

Industrial Property Note

Industrial property includes the facilities that manufacture products or materials. This is relevant because an auto manufacturer will need different facilities to a hockey stick manufacturer.

Special-Purpose Property Note

These are commercial properties, but are neither industrial nor classic retail. For example a sports arena, and typically require niche knowledge.

Management Agreement / Property Management Contract

Written contract between a property owner and a property manager to establish all duties of the property manager, including operation and leasing activities. Should ALWAYS be signed.

Common Elements of Management Agreements

• identification of parties

• property description

• scope of authority

• management fees

• etc

Management Percentage Fee

fee paid to property manager based on the effective gross income (EGI) of the building, which comes from rent plus additional revenue streams.

Management Flat Fee

base commission, fixed fee paid per unit not based on a percentage of the income.

Rental Agents

Type of property manager specifically tasked with the duty of finding tenants to rent units in a property and handle leasing affairs. Usually commission or fee per tenant.

Property Management Licensure

In Florida, property managers only require a real estate license if they are receiving commissions.

appraisal

an official valuation given to a property by a licensed appraiser

• impartial qualified appraiser’s opinion of value

• applies to a specific property as of a specific date

• supported by relevant market information

appraiser

an individual who is trained and licensed to perform appraisals, which estimate the value of real property

• may play the role of multiple different roles while preparing a report. Including broker, surveyor, economist, and even accountant.

Uniform Standards of Professional Appraisal Practice (USPAP)

an agency charged with overseeing, regulating, and promulgating real estate appraisals and appraisal practices

broker price opinion (BPO)

a broker’s opinion of the value of a piece of real property, given in writing

comparative market analysis (CMA)

a report that compares the prices of recently sold or listed homes (“comparables“) in order to estimate the market value of a similar property (the “subject property”) located in the same area

• NOT an appraisal, and may not be represented as one. As such, they don’t need to adhere to USPAP standards.

• If a sales associate charges a fee for preparing a CMA, the fee must be paid to the employing broker and not directly to the sales associate.

• USUALLY done for free, and is less detailed and less reliable than an appraisal

Valuation Products

• appraisal - most accurate and reputable

• CMA

• BPO - least accurate and formal

FREAB

Florida Real Estate Appraisal Board - states a real estate licensee may perform an appraisal and receive compensation for doing so in all non-federal transactions, otherwise an appraisal certification/license is the only one who can appraise federally related transactions.

AQB

Appraiser Qualifications Board of the Appraisal Foundation

Creating a CMA

1. evaluate the neighborhood

2. evaluate the subject property

3. find comparables

4. compare and adjust selected comparables

5. establish a listing price range

It’s like working from the outside in to determine value.

Broker’s Price Opinion (BPO or BOV - broker’s opinion of value)

More common in commercial real estate

• may not be represented as appraisals

• Sales associates may perform a BPO but only under the supervision of their employing broker

• Compensation must be given to broker

• USPAP regs don’t apply to BPOs

• Attractive when money is tight because they are mostly used in foreclosure processes. Relocation companies or lenders undergoing a short sale or similar process would likely utilize a BPO.

Written broker’s opinion of the value of a piece of real property.

Third Party Financing

• Mortgage brokerage companies

• Credit Unions

• Savings Associations

• Commercial Banks

Mortgage Loan Origination

The multi-step process through which a borrower obtains a mortgage loan from a lender.

MLO

Mortgage Loan Originator - can be an institution/individual that takes a borrower through a rigorous multi-step process that should culminate in a loan agreement.

An MLO license is needed to operate as a mortgage loan originator. A real estate license alone does NOT qualify a person to originate mortgages.

Loan Origination

The multi-step process through which a borrower obtains a loan from a lender.

subdivision plat map

the proposed map of a to-be-developed subdivision indicating proposed lots, streets, and other important organizational information, created according to the layout of the existing parcel of real property

• needs to be approved by board or commission

• Includes…

  • size and location of proposed lots

  • streets

  • water and sewer lines

  • public utilities

  • other important information

dedication

a gift of land tot he government for public use, gifted by the property owner

Phases of Development and Construction

1. Acquiring land

2. Subdividing and developing the land

3. Recording the subdivision plat map

Acquiring the Land

• What do we want to build and what do we need to complete those constructions?

• How do we get our project plans approved by the city?

• What costs and fees will we need to plan for?

Development Fees

Initial phase:

• Engineering and development plans

• Consultations with attorneys

• Surveys

• Applications

Subdividing

Process of dividing parcel of land into smaller units or lots.

Developing land

Involves improving the land and making it usable and productive.

Developing Land Steps and Approval

You need approval to develop land, even if you own it. You need to comply with governmental regs, zoning laws, and review boards that control your area

• Initial Planning Stage

  • Land needs to be surveyed, and a plat needs to be made and planned on paper.

• City Review and Approval

  • city ensures the plan adheres to the overall urban plan and subdivision regulations of the city. If modifications or changes are needed, the developer is notified and allowed to submit changes as required by the city.

• Final Planning Stage

  • all initial planning has met approval, details are finalized, and the final subdivision plat is turned over to the authority with jurisdiction for final approval.

• Purchasing the Property

  • After final approval, the subdivision plat is filed at the county records office and the developer is given a certificate from the city. It is at this point that the developer may now purchase the property. Financing should hopefully already be secured.

• Startup Stage

  • Final stage is called the Startup or Disposition Stage. Actual construction starts here, infrastructure is put into place, and lots are now ready to be disposed of (sold) and are ready for the new owners to begin building their homes.

Dedication

Gift of land to the government for public use, gifted by the property owner. Some are philanthropic, others are from the process of development and construction. Example: a developer gifts the streets and gutters of their development to the government.

Types of Residential Construction

Speculative (spec) homes

• Homes built without an identified buyer. Built on the speculation that they will be bought once they are constructed.

Tract Homes

• A type of spec home, thought of as the cookie cutter homes in a subdivision that all look alike or similar. Some serve as model homes that potential buyers can tour before other spec homes are done.

Custom Homes

• Built to the customized specifications of a specific buyer

Zoning

The division of land within a jurisdiction into separate districts within which uses are permitted, prohibited, or permitted with conditions and it regulates the use of land.

Done by creating zoning ordinances.

Zoning Ordinances

local laws that control how land is used and what structures can be built in a designated district.