Florida Real Estate Broker

Key Concepts

Definitions and status (475.01) - "Commission" means the Florida Real Estate Commission — 475.01(1)(c); "Department" means DBPR — 475.01(1)(e). - "Involuntarily inactive status" is the status resulting when a license is not renewed at the end of the license period prescribed by the department — 475.01(1)(g). - "Real property"/"real estate" includes interests in land, leaseholds, mineral rights, and business enterprises or opportunities, but not cemetery lots or rights of burial, nor the renting of a mobile home or RV lot in a mobile home/travel park — 475.01(1)(i).

Key Concepts

Appraisal and reports. An appraisal is an opinion of value; an appraisal report is defined in Florida statute as an oral or written communication of an appraisal relating to the nature, quality, value, or utility of a specified interest in real property. If the report concerns a federally related transaction, it must be written and conform to USPAP (Unit 6 — Appraisal Defined; Types of Appraisal Reports).

Two written report options. A restricted appraisal report may be used only when the client is the exclusive intended user, and must carry a prominent use restriction at or near the beginning warning that the rationale may not be properly understood without additional information in the appraiser's work file. Both…

Florida Real Estate Broker exam

Key Concepts

Scope of the Brokerage Relationship Disclosure Act (ss. 475.2701–475.2801) - The authorized brokerage relationships in ss. 475.2755 and 475.278 apply in all brokerage activities; the disclosure requirements of s. 475.278 apply only to residential sales as defined in s. 475.278(5)(a) (s. 475.274, F.S.). - Residential sale = improved residential property of four or fewer units, unimproved residential property intended for use as four or fewer units, or agricultural property of 10 or fewer acres (s. 475.278(5)(a), F.S.). - Disclosure requirements do not apply to: nonresidential transactions; rental or leasing of real property unless an option to purchase all or a portion of property improved with four or fewer residential units is given;…

Key Concepts

Listing agreements - Every written listing agreement must contain a definite expiration date, and "shall contain no provision requiring the person signing the listing to notify the broker of the intention to cancel the listing after such definite expiration date" — s. 475.25(1)(r), F.S. A self-renewal provision is grounds for discipline. - The broker must give the principal(s) a legible, signed, true and correct copy within 24 hours of obtaining the written listing — s. 475.25(1)(r), F.S. A faded, largely unreadable photocopy fails the "legible" requirement. - Unit 11 (Written documents): the listing must identify the property, price, terms and commission, be signed by owner and broker, may not renew automatically, and a copy must be delivered…

Florida Real Estate Broker Exam | Unit 12 — Financing Real Estate

Key Concepts

Promissory note vs. mortgage (Unit 12 — Promissory Note; Mortgage) - A promissory note is a promise to pay a sum of money in the future; it is the borrower's personal promise to repay the debt. A note without collateral is an unsecured note; a secured note is backed by collateral. - Essential elements of the note: the amount of the debt, the interest rate, the amount and time of each payment, and the loan term. - Notes are not witnessed or acknowledged because anyone who signs at the end of a note becomes a cosigner personally liable for the debt. Also, unlike a mortgage,…

Florida Real Estate Broker Exam

Key Concepts

Closing Disclosure (CD) basics. For federally related residential mortgage loans applied for after October 3, 2015, the TILA-RESPA Integrated Disclosure Closing Disclosure replaced the HUD-1 Settlement Statement and the Truth-in-Lending disclosure (FL Broker's Guide 8th, Ch. 13). The lender prepares it; the Loan Estimate is a separate form given at application and recapped on the CD.

CD page map (Closing Disclosure, CFPB sample): - Page 1 — Closing Information, Transaction Information, Loan Information, Loan Terms (loan amount, interest rate, monthly P&I, whether each can increase, prepayment penalty, balloon payment), Projected Payments, Costs at Closing; recaps the Loan Estimate. - Page 2 — Closing Cost Details under two headings: Loan Costs (origination charges,…

Florida Real Estate Broker, Unit 14

Key Concepts

2018 Tax Cuts and Jobs Act (effective January 1, 2018) — Unit 14 – 2018 Tax Cuts and Jobs Act - Corporate rates were cut by 40%, from 35% of taxable income to 21%; distributed income is taxed again at the shareholder level as dividends. - Individuals may generally deduct 20% of qualified business income from partnerships, S corporations, and sole proprietorships, with a phaseout based on income level. - Long-term capital gains rates remain 0%, 15%, and 20%, depending on the taxpayer's ordinary income. - The standard deduction was nearly doubled; the estate exclusion was doubled to $11 million ($22 million for married couples), top estate rate 40%.

Key Concepts

Matching investors with properties. The investor interview collects the existing asset portfolio, liabilities, contingent liabilities, risk preferences, earning potential, management capability, investment goals, and the investor's experience/reputation/ego. Contingent liabilities are future cash needs — retirement income, college education for children, a daughter's wedding, or care for an elderly parent — and are distinct from existing liabilities such as installment debt, automobiles, alimony, child support, and mortgages (Unit 15, Basic Investor Situation).

Types of risk (Unit 15, risk sections): - Business risk — the property fails to achieve the required return because of unforeseen changes in capital requirements, gross income, vacancies, operating expenses, or value at sale. It has two types: static risk (fire, storm, flood, theft, liability…

Key Concepts

Florida's Community Planning Act (CPA) - Under the CPA, sanitary sewer, solid waste, drainage, and potable water are the only public facilities and services subject to the concurrency requirement on a statewide basis. (Ch. 16 — Florida's Growth Policy and Community Planning Act; Unit 16, p. 444) - State-mandated concurrency is no longer required for transportation facilities, schools, and parks and recreation. Local governments have the discretion to implement additional concurrency provisions as optional elements, or to delete existing regulations through a plan amendment. (Unit 16, pp. 444–445) - In 2011 the Florida Legislature made major revisions to Florida's growth management laws; the revised statute is titled the Community Planning Act. The CPA shifted state oversight to…

Florida Real Estate Broker | Unit 17: Environmental Concerns Affecting Real Estate Transactions

Key Concepts

CERCLA and the National Contingency Plan (Chapter 17, Comprehensive Environmental Response, Compensation, and Liability Act) CERCLA directed the federal government to publish the National Contingency Plan (NCP), which sets out the guidelines and procedures to be followed when hazardous substances are released or threaten to be released. Distinguish three look-alikes the exam uses: - National Priorities List (NPL) — the separate list of serious contaminated sites eligible for Superfund remedial money. - Environmental impact statement (EIS) — arises under NEPA for federally funded projects. - Model Accreditation Plan — governs training of asbestos professionals.

Key Concepts

Florida Residential Landlord and Tenant Act (Ch. 83, Part II, F.S.) — entry for repairs. The landlord must give the tenant at least 12 hours' notice before entering to make repairs, and the repairs must be made between 7:30 am and 8:00 pm. Separately, 7 days is the period a landlord has to cure a material noncompliance after written notice from the tenant. (Unit 18 — Florida Residential Landlord and Tenant Act, Ch. 83, Part II, F.S.)

Security deposits — surety bond. $50,000 is the maximum surety bond a landlord may post in lieu of maintaining separate deposit accounts. (Unit 18)

Florida Real Estate Broker exam Subtopics: characteristics of the real estate market · basic real estate math · supply and demand variables

Key Concepts

Demand defined. Demand is the desire and the ability to purchase or rent goods and services — in real estate, the amount and type of real estate desired for purchase or rent in a given market at a given time. Desire alone is not demand, and a description of what is offered for sale describes supply, not demand. (The Real Estate Market — Demand)