Real Estate Course Full Set

A real estate agent must be competent in the following 3 areas:

Knowledge of property transfers, market conditions, and how to market real estate

Farm area (in real estate)

Geographic area or a specific type of residential property where the associate collects data and education of that particular area or type of property

Selecting a farm area allows a sales associate to…

Focus and target to better align their business in one area, rather than trying to take on too much information

Special purpose property meaning and some examples

Properties that require repurposing or a knowledge of the consumer's desires in order to sell (one-of-a-kind types of properties). Examples include schools, churches, nursing homes, post offices, and hospitals

Absentee owners

Persons who own, but do not reside in the property

Property manager agreement

A document that is signed by a property manager and the owner of the property that outlines the specific duties that the property manager agrees to complete

Fiduciary

A person having a duty to act primarily for another's benefit. Involves duties such as good faith, trust, special confidence, and candor

What makes a community association manager (CAM) different from a property manager?

A CAM is licensed through the state to manage the functions of an association of 10+ units or that has an annual budgeter of over $100,000

What must a property manager agreement include? (10)

-Name of address of the property owner
-Name of address of the property manager and brokerage
-Address and legal description of the property
-Start and end date of the agreement (must have both)
-Specific services to be rendered
-Extent of the property manager's authority
-Procedures for reporting on the status of the property
-Method and schedule of compensation
-Signature of the property owner
-Signature of the property manager/broker

-Name of address of the property manager and brokerage

-Address and legal description of the property

-Start and end date of the agreement (must have both)

-Specific services to be rendered

-Extent of the property manager's authority

-Procedures for reporting on the status of the property

-Method and schedule of compensation

-Signature of the property owner

-Signature of the property manager/broker

What are the 4 types of maintenance that a property manager must be familiar with conducting to keep the property pristine?

-Preventative maintenance
-Routine maintenance
-Repair maintenance
-Construction maintenance

-Routine maintenance

-Repair maintenance

-Construction maintenance

Preventative maintenance

Work done to maintain the property routinely, such as caulking windows and doors, adding oil and fluids to machinery and elevators, spot painting, rust removal, and changing air conditioning filters

Routine maintenance

Consists of lawn mowing, cleaning, inspections, pool cleaning, and other day-to-day tasks that keep the property prepared for tenancy

Repair maintenance

Involves the hiring of a specialist (plumber, electrician, heating, ventilation, and HVAC) to perform repairs beyond the preventative and routine maintenance that do not require a trade license

Construction maintenance

A total remodel or addition, such as adding a clubhouse or pool to help the property become more competitive in the market

Does a property manager have a fiduciary relationship with the tenant of the property?

No

What is the primary responsibility of any property manager?

To protect the owner's investment and maximize the owner's returns on their investment

Appraisal

An estimation of value, performed by a licensed appraiser, using specific techniques and criteria

What is the purpose of an appraisal?

To obtain a loan, obtain insurance value, obtain a divorce settlement, or determine capital gains on a soon-to-be-sold property

What are the 3 levels of appraisers for the State of Florida?

-Registered Trainee Appraiser (works under the guidance of a certified appraiser)

-Certified Residential Appraiser (may appraise residential properties only)

-Certified General Appraiser (may perform any type of residential or commercial appraisal)

Can a Florida licensed real estate broker, sales associate, or broker associate who is not a Florida certified or licensed real estate appraiser provide valuation services for compensation?

Yes, as long as they do not represent themselves as a certified appraiser and that they use the Uniform Standards of Professional Appraisal Practice (USPAP) as their guide

How must an appraiser be paid?

On a fee-per-job basis, not a percent of the value of the property

Broker price opinion

A quick opinion as to the value of a property based on recent sales in the market. Generally requested of a local expert who collects data and provides it in a specific format to the bank

Comparative market analysis (CMA)

A method to value homes based on recent home sales, homes currently on the market, and homes that were listed but did not sell. Usually used to determine things like listing price, offer price, and overall compare the value of one house by comparing it to similar others

What are some of the financing sources available to a buyer? (6)

-Banks
-Savings and loans
-Credit unions
-Mortgage bankers and mortgage brokers
-Insurance companies
-Private lenders (hard money lenders)

-Savings and loans

-Credit unions

-Mortgage bankers and mortgage brokers

-Insurance companies

-Private lenders (hard money lenders)

All mortgage loan originators, lenders, and those who bring lenders and consumers together (mortgage brokers) must be registered with what organization?

The Consumer Financial Protection Bureau (CFPB)

Counseling (in real estate)

A real estate service for a fee where a customer is advised through the couselor's analysis of trends for projects, providing advice based upon their knowledge of the real estate business. This requires extensive knowledge and expertise in the areas of advice

What are the steps that a develop must complete before the land development project can bre realized? (6)

-Land acquisition (purchase)
-Planning and conservation (through the local and state law requirements)
-Subdivision (includes recording of the plat map)
-Creating roads and utilities
-Development
-Construction

-Planning and conservation (through the local and state law requirements)

-Subdivision (includes recording of the plat map)

-Creating roads and utilities

-Development

-Construction

Assemblage

Assembling several small pieces of land to create a large piece

Subdividing

Creating smaller areas of land for different purposes

Subdivision plat map

A visual drawing of where each lot and block will be located, as well as streets, parks, and utilities. This is then submitted to the local planning department for consideration

Dedication

A developer or builder "dedicates" real property toward public use. Examples include parks, schools, hospitals, etc.

What are the 3 ways that residential construction may be created depending upon the builder's criteria

-Speculation or "spec" homes
-Tract homes
-Custom homes

-Tract homes

-Custom homes

Speculation ("spec") homes

New, move-in ready homes, built to show a builder's use of space and quality and without a specific buyer in mind

Production home

A special type of spec home, where if the buyer has some requirements, the builder will add those to the production within a community. For example, a buyer choosing a style, elevation, or different layout to their liking

Tract homes

Built to a certain set of guidelines used for a particular subdivision. Very similar in design to other homes in the subdivision and usually vary only nu the color of paint, carpet, etc. Often called "cookie cutter" homes

Custom home

A home built for a specific buyer using an architect's drawings as the foundational and building plans. These tend to be quite expensive as they are more "art" than building and also take longer to build

Role of local government in real estate (7)

-Zoning laws
-Occupancy permits
-Taxation of real property
-Business permits for professional offices and services based upon zoning
-Planning (the authority set to control growth, water, and roads)
-Building codes and oversight of plans
-Court records of communities, plats, condos, cooperatives, and HOAs Declarations and covenants

-Occupancy permits

-Taxation of real property

-Business permits for professional offices and services based upon zoning

-Planning (the authority set to control growth, water, and roads)

-Building codes and oversight of plans

-Court records of communities, plats, condos, cooperatives, and HOAs Declarations and covenants

Role of state government in real estate (5)

-Taxes for recording of deed, transfers of property
-Estate taxes and rules regarding inheritance
-Conservation guidelines specific to the state
-Overall building codes (overseen by the state and mandated for local building municipalities to follow)
-Professional licensing (for all individuals and entities whose business involves public trust in their skills or occupation and/or trades)

-Estate taxes and rules regarding inheritance

-Conservation guidelines specific to the state

-Overall building codes (overseen by the state and mandated for local building municipalities to follow)

-Professional licensing (for all individuals and entities whose business involves public trust in their skills or occupation and/or trades)

Role of federal government in real estate (4)

-Federal agencies such as: the Department of Housing and Urban Development (HUD), the Federal Housing Administration (FHA), the Consumer Financial Protection Bureau (CFPB), the Federal Reserve (FED), and the Department of Veteran's Affairs (VA)
-Laws such as Federal Fair Housing, the Real Estate Settlement Procedures Act (RESPA), the Truth in Lending Act, Americans With Disabilities Act, Consumer Telecommunications Protections Act (TCPA), Can SPAM Act, Sherman Anti-Trust and Clayton Acts, and Environmental Protection Act (EPA)
-Taking of land for national parks wildlife, and wetland areas
-Federal taxes that may attach to property

-Laws such as Federal Fair Housing, the Real Estate Settlement Procedures Act (RESPA), the Truth in Lending Act, Americans With Disabilities Act, Consumer Telecommunications Protections Act (TCPA), Can SPAM Act, Sherman Anti-Trust and Clayton Acts, and Environmental Protection Act (EPA)

-Taking of land for national parks wildlife, and wetland areas

-Federal taxes that may attach to property

NAR Certified International Property Specialist (CIPS)

Individuals who desire to work with foreign investors and commercial properties to include apartments, warehouses, land, and businesses

NAR Graduate Realtor Institute (CRI)

Showcases the understanding of real estate practices in residential and commercial listings, sales, and property management. Includes taking courses for this designation to be awarded

NAR C2EX--Commitment to Excellence

A program provided through NAR to supplement their commitment to fair housing, ethics, quality service, and leadership

NAR CRE--Couselors of Real Estate

For commercial REALTORS with 10 years of experience. Members may also be nominated for membership by their peers

NAR Green Resource Council

Supports environmentally friendly buildings and developments

NAR Real Estate Business Institute (REBI), formally REBAC

Oversees training and education for REALTORS to ensure that qualifications meet current business trends and changes

NAR Residential Real Estate Council (RREC)

Oversees residential specialization for the industry

NAR Realtors Land Institute (RLI)

Endorses and supports REALTORS who wish to specialize in land sales

NAR SRES Council

Oversees the Senior Real Estate Specialist program and protects the rights of those over a certain age and the supporting agencies in education

NAR Women's Council of REALTORS

National, state, and local membership and education and networking designed to enhance women's leadership in real estate. Although they advocate for women's leadership, they are open to all sexes

American Real Estate Society (ARES)

A think tank society that encourages processes to improve the real estate industry. They are more aligned for higher education studies of real estate for real estate college and legal students

Association for Real Estate License Law Officials (ARELLO)

This international organization works as a trade association of many state real estate regulators

Real Estate Education Stakeholders (REEA)

Includes instructors, trainers, regulators, schools, authors, and others in the real estate education industry. Continually provides the latest tools and techniques for effective adult real estate education

An agriculture property in Florida is a property that has more than ____ acres

10

A seller who finances more than one home in a two-year period may be required to register as a _________________

Loan originator

Mission statement of the DBPR

To "license efficiently and regulate fairly"

Division of Real Estate

Part of the DBPR; responsible for the oversight of examination, licensing, and regulation individuals, corporations, real estate schools, and instructors while verifying the integrity of real estate salespersons and brokers

Florida Real Estate Commission (FREC)

Enforcer of real estate rules and laws through applied discipline and education

Who appoints members of the Florida Real Estate Commission

The governor

Caveat emptor

Latin for "let the buyer beware" and reflects an as is buying style that applies to individuals who buy and sell real estate without a licensed professional

Chapter 20 Florida Statute

Created the organizational structure for the state to support its residents by authorizing the DBPR

Chapter 120 Florida Statute

Provides rulemaking authority to components of the DBPR and extends that authority to the FREC