FREC 1 Questions & Answers | 100% Correct Answers | Verified | Latest 2024 Version

FREC 1 Questions & Answers | 100% Correct Answers | Verified | Latest 2024 Version What does RESPA stand for? What does it mean? - Real Estate Settlement Procedures Act. Getting someone qualified Wha is real estate brokerage? - Real estate brokerage is the business of bringing together buyers and sellers and owners and renters and completing real estate transactions (paid a fee or a commission for services) 5 major sales specialties - "Residential"- 4 or fewer residential units OR agricultural property of 10 or fewer acres. "Commercial" - improved residential property of greater than 4 units. "Industrial" - must have technical knowledge of the needs of different industries. "Agricultural"- agricultural property of more than 10 acres (must be familiar with the operation of farms and related problems) "Business"- real estate licensees who engage in the sale,purchase,or lease of businesses are called business brokers. True or false business brokers need a license - TRUE What is property management? - A property manager who manages and maintains property for the property owner. Definition of "absentee owner" - Someone who doesn't reside on the property and rely on a professional property manager Appraising - The process of estimating the value of property. (Requires separate license) What does USPAP stand for? And what does it mean? - Uniform standards of professional appraisal practice. It's a set of guidelines to follow when providing appraisal services. What does CMA stand for? - Comparative market analysis. (Collecting information around the area e.g recent sales, property currently for sale) What does BPO stand for? - Brokers price opinion. (Written opinion of the value of real property) Are licensees allowed to prepare and charge for a CMA/BPO? - Yes. But it is not called an appraisal!!! When conducting appraisals real estate licensees must abide by the USPAP. True or false? - TRUE USPAP standards do not apply to CMAs and BPOs. True or false - TRUE What does subdividing mean? - Process of converting parcels of land into smaller units or lots. The gift of land by an owner to a governmental body for public use is called what? - Dedication What are the 3 types of construction? - 1. Speculation- involves purchasing one or more lots and constructing a home(s) without securing a buyer in advance of construction. 2. Custom - A custom builder constructs homes under contract with a buyer often using building plans provided by architects or buyers. 3. Tract Homes - tract homes are speculative. A new subdivision will typically feature several model homes buyers select a floor plan from the models and a lots on which to build in the new subdivision. What are the 3 roles of government in Florida real estate? - 1. Local government which supports infrastructure, roads, sewers, schools etc. 2. State government which collects documents and taxes on property sales. 3. Federal government which regulates fiscal and monetary policies. Federal agencies HUD, FHA, VA. EPA, IRS etc. Definition of MLS (multiple listing services) - Database allows a real estate brokers representing sellers under a listing contract to share information about properties with real estate brokers who may represent potential buyers. Which property is classified as residential real estate according to chapter 475 - Four or fewer residential units. Individuals who find tenets for property for a fee are called what? - Rental agents Definition of farm area - When a residential sales associate specializes in a particular location within a community. In what year did the Florida enact the real estate license law? - 1923 In what year did Florida legislature create the Florida real estate commission also known as FREC. - 1925 Chapter 475 establishes legal rights and responsibilities of real estate licensees what are they? - A) part 1, real estate brokerage (FREC) B) part 2, Real estate appraisal (FREAB) C) part 3, commercial real estate sales commission lien act D) part 4, commercial real estate leasing commission lien act Within what period of time must've passed the state license exam without having to retake the pre- license education course? - Two years The Latin term "caveat emptor" means .. - Let the buyer beware What does a broker associate mean? - A person who is broker qualified but who chooses to work under the direction of a broker.