Florida Real Estate Sales Associate
State Exam Prep Correct 100%
Spec Home - ANSWER a contractor who builds on their own lot in the hope of finding a
purchaser upon completion.
Residential Transaction - ANSWER The sale of any improved residential property of
four units or fewer,
unimproved property intended for four unit or fewer,
Agricultural properties of ten acres of less,
Leases with option to purchase all of a portion of improved property of four or fewer
residential units,
Dispositions of business interests involving property of four or fewer residential units
REALTOR - ANSWER a registered trademark of the National Association of
REALTORS (NARS) and my be used only by member of the organization
Broker - ANSWER Acts as an agent or intermediary between two or more people in the
negotiation of the sale, purchase, or rental of real estate.
Title XI of FIRREA - ANSWER The portion of the Federal Financial Institutions Reform,
Recovery, and Enforcement Act (FIRREA) was directed toward the appraisal profession
and required that appraisals utilized by federally regulated lenders in federally related
transactions be developed and reported in conformity with the USPAP.
Uniform Standards of Professional Appraisal Practice (USPAP) - ANSWER Developed
by the appraisal foundation.
Appraisals used in federally related transaction must be prepared in compliance with
USPAP by appraisers registered, licensed, or certified under part II of FS 475
Real Estate Licensee - ANSWER required to have expert knowledge in
Property Transfer
Valuation and Market Conditions
Marketing
Allowed to perform Valuations under the real estate license law if the valuation is not to
be used in a federally regulated transaction
Counseling - ANSWER the service of analyzing existing or potential projects and
providing expert advice to members of the public based on their personal judgment.
Real estate counselors are usually compensated on a flate fee, regardless or not the
advice is used.
Requires a greater level of knowledge and experience.
Requires detailed knowledge of alternative investments and strategies.
,Comparative Market Analysis - ANSWER An estimate of the value of property
developed by a real estate licensee for use in listing or selling property.
developed by using the same steps an appraiser uses in a sales comparison approach,
but employs less stringent methods.
Depending on a level of activity in the area, a period of 6-12 months should be
examined.
Sources of data for a CMA: MLS. the property appraisers office, & the clerk of courts.
Mortgage Loan Originator (MLO) - ANSWER Do not make Loans. They arrange loans
by taking mortgage applications and searching for lenders who offer the lowest interest
rate and easiest borrower qualifications.
Must have a seperate license.
Licensed by Florida Department of Financial Services.
Custom Building - ANSWER when a property owner employs a contractor to build
according to their individual specification
Dedication - ANSWER After completion of construction of a subdivision, the streets,
sidewalks, and common areas are conveyed to the city or county.
Appraising - ANSWER The process of developing an Opinion of Value
Going Concern Value - ANSWER The value of a business, includes its income, tangible
and intangible assets, and goodwill, in addition to the value of the real property.
Part I of FS 475 - ANSWER covers regulation and licensing of real estate practitioners
Part II of FS 475 - ANSWER covers registration, licensing, and certification of
appraisers in Florida
Goverment Regulation: Local Level - ANSWER planning and zoning, property taxation,
building & health codes and regulations, and building moratoriums that affect
development.
Plays a significant role in the cost and desirability of real estate.
Government Regulation: State Level - ANSWER Roads, waterways, and other factors
that affect multiple political jurisdictions are impacted at the state level.
At this level, DRI, DEP, and DEO all play an important part in real estate development
Government Regulation: Federal Level - ANSWER Legislation that affects the operation
of lending institutions has had an enormous effect on the real estate profession.
Monetary policy adopted by the Federal Reserve System has a daily influence on the
construction and real estate industries.
Individuals Who Are Exempt From Licensure - ANSWER Attorneys-In-Fact
,Attorneys-at-law
Certified Public Accountants
Court Appointees
Salaried Employees
Individuals
Partners in a Parternership
Corporations
Salaried Employees
Persons who deal strictily in personal property transactions.
Cemetery Lot salespersons
Appraisers
Dealers who are registered under the Securities and Exchange Act of 1934
ETC...
Part III of FS 475 - ANSWER The real estate SALES commission lien act; allows a
brokers to place a lien on an owners NET PROCEEDS(personal property) for
commissions earned during a sales transaction
Part IV of FS 475 - ANSWER The real estate LEASING commission lien act; allows a
broker who has earned a commission to place a lien on an owners real estate
INTERESTS in COMMERCIAL REAL ESTATE that has been leased.
Promissory Note - ANSWER Note or Bond;
Evidence of a personal debt, and contains the names of the parties, rate of interest,
amount of money borrowed, and the loan repayment terms.
Hypothecation - ANSWER the pledge of property as security for a loan
Lien Theory - ANSWER allows the borrower to retain ownership of the property during
the loan period;
owner is given the right to cure any default of mortgage payment
Title theory - ANSWER Oldest form of mortgaging.
borrower was entitled to temporarily convey ownership of the property to the lender for
the duration of the loan period
Deed of trust is used in title theory states
Deed of Trust - ANSWER used in title theory states.
temporarily conveys title to a property to a third party called a trustee until the mortgage
loan debt is repaid or until default occurs
borrower is the trustor
lender is the beneficiary
Mortgagor - ANSWER The PROPERTY OWNER.
The party that give the mortgage to the lender to secure the loan
owns the real property
, The _________ gives a mortgage to a mortgagee.
Mortgagee - ANSWER The LENDER;
The party who receives the mortgage from the property owner.
owns the mortgage(personal property) *
Mortgage - ANSWER accompanies a note and is security for repayment of a Debt
Must:
be in writing
be signed by the mortgagor
conform to the same requirement as any valid contract
contain the legal description of the property
be witnessed by two persons *
Satisfaction Of Mortgage - ANSWER When a loan has been paid in full in a lien theory
state, the mortgagor should receive a letter of satisfaction from the mortgagee within 60
days of the loan payoff.
Covenants - ANSWER also reffered to as clause
Cognovit Clause - ANSWER Gives a lender right to foreclose at its option by requiring a
borrower to admit any future default at the time a loan is obtained.
borrower is prevented from defending against a foreclosure, which results in a
automatic judgement in favor of the lender.
Defeasance Clause - ANSWER Provides protection for the borrower as it requires the
lender to acknowledge performance by the borrower
The only legally necessary clause in a mortgage
Due-On-Sale Clause - ANSWER Also called Alienation Clause;
in a loan or promissory note stipulates that the full balance may be called due on sale
upon transfer of ownership of the property used to secure the note.
Prevents any borrower from transferring any interest in the mortgaged property without
permission of the lender
Any borrower interested in assuming the existing loan would have to apply and be
approved by the lender
Escalation Clause - ANSWER allows a lender to increase the interest rate based on the
occurrence of an event such as change in the use of property or consistently late
payments
Exculpatory Clause - ANSWER Limits the lenders rights in a foreclosure to the amount
received from the sale of the foreclosed property.
lender cannot obtain an deficiency judgement for the unsatisfied amount (known as
nonrecourse financing
State Exam Prep Correct 100%
Spec Home - ANSWER a contractor who builds on their own lot in the hope of finding a
purchaser upon completion.
Residential Transaction - ANSWER The sale of any improved residential property of
four units or fewer,
unimproved property intended for four unit or fewer,
Agricultural properties of ten acres of less,
Leases with option to purchase all of a portion of improved property of four or fewer
residential units,
Dispositions of business interests involving property of four or fewer residential units
REALTOR - ANSWER a registered trademark of the National Association of
REALTORS (NARS) and my be used only by member of the organization
Broker - ANSWER Acts as an agent or intermediary between two or more people in the
negotiation of the sale, purchase, or rental of real estate.
Title XI of FIRREA - ANSWER The portion of the Federal Financial Institutions Reform,
Recovery, and Enforcement Act (FIRREA) was directed toward the appraisal profession
and required that appraisals utilized by federally regulated lenders in federally related
transactions be developed and reported in conformity with the USPAP.
Uniform Standards of Professional Appraisal Practice (USPAP) - ANSWER Developed
by the appraisal foundation.
Appraisals used in federally related transaction must be prepared in compliance with
USPAP by appraisers registered, licensed, or certified under part II of FS 475
Real Estate Licensee - ANSWER required to have expert knowledge in
Property Transfer
Valuation and Market Conditions
Marketing
Allowed to perform Valuations under the real estate license law if the valuation is not to
be used in a federally regulated transaction
Counseling - ANSWER the service of analyzing existing or potential projects and
providing expert advice to members of the public based on their personal judgment.
Real estate counselors are usually compensated on a flate fee, regardless or not the
advice is used.
Requires a greater level of knowledge and experience.
Requires detailed knowledge of alternative investments and strategies.
,Comparative Market Analysis - ANSWER An estimate of the value of property
developed by a real estate licensee for use in listing or selling property.
developed by using the same steps an appraiser uses in a sales comparison approach,
but employs less stringent methods.
Depending on a level of activity in the area, a period of 6-12 months should be
examined.
Sources of data for a CMA: MLS. the property appraisers office, & the clerk of courts.
Mortgage Loan Originator (MLO) - ANSWER Do not make Loans. They arrange loans
by taking mortgage applications and searching for lenders who offer the lowest interest
rate and easiest borrower qualifications.
Must have a seperate license.
Licensed by Florida Department of Financial Services.
Custom Building - ANSWER when a property owner employs a contractor to build
according to their individual specification
Dedication - ANSWER After completion of construction of a subdivision, the streets,
sidewalks, and common areas are conveyed to the city or county.
Appraising - ANSWER The process of developing an Opinion of Value
Going Concern Value - ANSWER The value of a business, includes its income, tangible
and intangible assets, and goodwill, in addition to the value of the real property.
Part I of FS 475 - ANSWER covers regulation and licensing of real estate practitioners
Part II of FS 475 - ANSWER covers registration, licensing, and certification of
appraisers in Florida
Goverment Regulation: Local Level - ANSWER planning and zoning, property taxation,
building & health codes and regulations, and building moratoriums that affect
development.
Plays a significant role in the cost and desirability of real estate.
Government Regulation: State Level - ANSWER Roads, waterways, and other factors
that affect multiple political jurisdictions are impacted at the state level.
At this level, DRI, DEP, and DEO all play an important part in real estate development
Government Regulation: Federal Level - ANSWER Legislation that affects the operation
of lending institutions has had an enormous effect on the real estate profession.
Monetary policy adopted by the Federal Reserve System has a daily influence on the
construction and real estate industries.
Individuals Who Are Exempt From Licensure - ANSWER Attorneys-In-Fact
,Attorneys-at-law
Certified Public Accountants
Court Appointees
Salaried Employees
Individuals
Partners in a Parternership
Corporations
Salaried Employees
Persons who deal strictily in personal property transactions.
Cemetery Lot salespersons
Appraisers
Dealers who are registered under the Securities and Exchange Act of 1934
ETC...
Part III of FS 475 - ANSWER The real estate SALES commission lien act; allows a
brokers to place a lien on an owners NET PROCEEDS(personal property) for
commissions earned during a sales transaction
Part IV of FS 475 - ANSWER The real estate LEASING commission lien act; allows a
broker who has earned a commission to place a lien on an owners real estate
INTERESTS in COMMERCIAL REAL ESTATE that has been leased.
Promissory Note - ANSWER Note or Bond;
Evidence of a personal debt, and contains the names of the parties, rate of interest,
amount of money borrowed, and the loan repayment terms.
Hypothecation - ANSWER the pledge of property as security for a loan
Lien Theory - ANSWER allows the borrower to retain ownership of the property during
the loan period;
owner is given the right to cure any default of mortgage payment
Title theory - ANSWER Oldest form of mortgaging.
borrower was entitled to temporarily convey ownership of the property to the lender for
the duration of the loan period
Deed of trust is used in title theory states
Deed of Trust - ANSWER used in title theory states.
temporarily conveys title to a property to a third party called a trustee until the mortgage
loan debt is repaid or until default occurs
borrower is the trustor
lender is the beneficiary
Mortgagor - ANSWER The PROPERTY OWNER.
The party that give the mortgage to the lender to secure the loan
owns the real property
, The _________ gives a mortgage to a mortgagee.
Mortgagee - ANSWER The LENDER;
The party who receives the mortgage from the property owner.
owns the mortgage(personal property) *
Mortgage - ANSWER accompanies a note and is security for repayment of a Debt
Must:
be in writing
be signed by the mortgagor
conform to the same requirement as any valid contract
contain the legal description of the property
be witnessed by two persons *
Satisfaction Of Mortgage - ANSWER When a loan has been paid in full in a lien theory
state, the mortgagor should receive a letter of satisfaction from the mortgagee within 60
days of the loan payoff.
Covenants - ANSWER also reffered to as clause
Cognovit Clause - ANSWER Gives a lender right to foreclose at its option by requiring a
borrower to admit any future default at the time a loan is obtained.
borrower is prevented from defending against a foreclosure, which results in a
automatic judgement in favor of the lender.
Defeasance Clause - ANSWER Provides protection for the borrower as it requires the
lender to acknowledge performance by the borrower
The only legally necessary clause in a mortgage
Due-On-Sale Clause - ANSWER Also called Alienation Clause;
in a loan or promissory note stipulates that the full balance may be called due on sale
upon transfer of ownership of the property used to secure the note.
Prevents any borrower from transferring any interest in the mortgaged property without
permission of the lender
Any borrower interested in assuming the existing loan would have to apply and be
approved by the lender
Escalation Clause - ANSWER allows a lender to increase the interest rate based on the
occurrence of an event such as change in the use of property or consistently late
payments
Exculpatory Clause - ANSWER Limits the lenders rights in a foreclosure to the amount
received from the sale of the foreclosed property.
lender cannot obtain an deficiency judgement for the unsatisfied amount (known as
nonrecourse financing
