Real Estate

The purpose of this chapter is to discuss in detail the FLorida Real Estate Commission and its composition and powers. The chapter also explains license requirements, including active and inactive status, license activation, and void and ineffective licenses.

This chapter begins with a general explanation of the law of agency and then details the various types of brokerage relationships practiced in Florida. The chapter also explains the licensee's duties and obligations to principals and customers. The terms misrepresentation and fraud are defined, and fraudulent activities are discussed. This chapter concludes with a section about professional ethics.

This chapter concerns the day-to-day operations of a real estate office. Statutory requirements detail principal office and branch office regulations as well as rules governing signs, advertising, record keeping, and conduct. This chapter discusses the broker's role as an expert and the proper handling of escrow funds, fees for rental information or rental lists, and compensation. The chapter also describes the various forms of business entities that may be encountered and that are permitted to

This chapter details the step-by-step procedures for investigations and hearings via the complaint process. The chapter describes many types of violations of the laws and rules governing real estate activities and the possible consequences that may result. Finally, the Real Estate Recovery Fund is explained regarding its function when damages are suffered in a real estate transaction owing to a wrongful act of a Florida licensee.

For many families the purchase of a home is the largest single investment they will make during their lifetime. The federal government and all state governments have enacted laws to ensure that the public interest in real estate is adequately protected. This chapter highlights some of the laws most important to Florida real estate practitioners. Licensees should study these laws to make certain they comply with the laws to better serve the public.

This chapter begins with a description of the physical components of real property. It goes on to discuss various types of estates and the rights that are included in each type of estate. It describes multiple ownership interests as well as special ownership interests, including the constitutional homestead. The chapter concludes with a thorough presentation of cooperatives, condominiums, and time-shares.

This chapter concerns the legal instruments and methods used to transfer title to real property. The Chapter also discusses the following concepts regarding title to real property: voluntary and involuntary alienation, title insurance, the two types of notice to title, the essential elements of a valid instrument of conveyance, certain covenants found in deeds, and governmental and private restrictions on ownership.

This chapter introduces the various methods used to lacate and describe the boundaries of real property. Basic to the real estate business ia a working knowledge of legal land descriptions. Unless property can be located accurately, the best contracts and the combined efforts of the most knowledgeable brokers in the world will be defeated. Purchasers (and title companies and lenders, if applicable) want to be certain of the exact location, size, and shape of the property to be conveyed. In addit

Nearly every business transaction is based on a contract. Key to every contract is the promise. In a real estate contract, the seller promises to convey title to the real estate, and the buyer promises to pay the purchase price. Contract promises are enforceable by law, provided the contract meets certain requirements. A contract defines the parties' legal relationship and spells out their rights and duties.

Because most real property transactions involve some type of financing, real estate licensees must understand this aspect of the business. Fluctuating interest rates, deregulation of financial institutions, and varying rates of inflation have in the past created shock waves among institutional lenders and mortgage specialists. As a result, new practices and variations of former lending procedures evolved. Licensees must keep current in the real estate finance area.

This chapter discusses the money supply; primary and secondary markets; the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA); and potential borrowers. The very strong three that connects all of the these individuals, institutions, and agencies is money, in the form of mortgage loans.

Real estate brokers and sales associates must understand closing statements and should be capable of computing the various simple arithmetic problems to be solved in arriving at the figures entered on the closing statements provided to the contracting parties. Many adults have had little or no occasion to work with fractions, decimals, percentages, and the like for years. The first section of this chapter assumes little or no prior knowledge about these subjects and their application.

To appraise real property means to estimate its value. Appraising is considered to be an art, not a science, because although the appraisal process involves mathematical calculations, appraisers also use their own judgement when appraising real property. There are many reasons for appraising real property. Local communities hire appeasers to estimate the value of property for assessment of property taxes (chapter 18) and to determine the amount of compensation in a condemnation proceeding that i

Real estate professional should have general product knowledge. Understanding basic construction methods and familiarity with common building materials and techniques are invaluable when working with customers.

Investors consider different factors in their attempt to achieve various investment objectives according to their individual financial status, income tax bracket, motives for investing, and access to credit. Different types of real estate offer various abilities to meet investor objectives. Experience indicates that investors are motivated by one or a combination of objectives: (1) safety of principal, (2) protection against inflation, (3) liquidity, (4) increased income (current and/or future),

City, county, school board, and numerous special tax districts are empowered to impose taxes directly on real property in Florida as part of the powers delegated to them by the state government. The U.S. Constitution prohibits the federal government from taxing real property, passing that right on to the state and local governments. Florida is one of the states, however, that does not tax real estate at the state level.

The word market has many meanings, depending on usage. It can mean a place where farmers and tradespeople display their produce and products for buyers. It can mean a place where securities are exchanged, such as the commodities market or the stock market. Regardless of difference in form, the basic principles of market operation hold true for all. A market can function only when sellers and buyers interact. Many markets use intermediaries to facilitate activity between seller and buyer, and the

In a residential community located in a fashionable area, homes are meticulously landscaped with rose bushes and beautiful fountains. It is a neighborhood of executives and their families. Across the street from one of the fashionable homes is a small candy factory, and farther down the street is a soft-drink bottling company. This is just one example of what happens when community planning and land-use control are absent.