Real Estate Principles, Practices & Law
Real Estate Industry defined by FS 475.
The industry or occupation whose activities involve rel property transactions handled by licesed rea estate professionals
Major Activities Real estae brokerage consists of activities that provide specialized service for others in return for a fee:
- Real Estate Brokerage
- Development and Construction
- Investment
Expertise Offered
- Details of Propety Transfer
- Knowledge of Market Conditions
- Knowledge of how to market real estae ot businesses
Brokerage (Sales or Leasing)
- Residential
- Commercial
- Industrial
- Agricultural
- Businesses
Residential real estate defined by Florida Statute 475 - 4 or fewer residential units, vacant land zoned for 4 or fewer units, and agricultural property of 10 or fewer acres
Property Management
- Objective is to produce the greatest possible income over the longest possible time
- Responsibilities and compensation
Appraising
- Process of estimating value of Property
- Standards and requirements regarding Federally related transactions
- Compensation
- 3 Approaches of Value
Financing
- 90% of all real estate purchases involve financing
Counseling
- Analyze existing or potenital problems and recommending courses of action
Development and Construction
- 3 Phases - Land acquistion, subdividing and development. amd constructio
- tract homes, custom homes, spec homes
- subdision plat maps, dedication of land
The Role of Government
- Local - property tax assessment and collection amd regulations
- State - Transfer tax. state owned land, and coastal land
- Federal - Monetary policy, federal agencies (HUD, FHA, VA, EPA,IRS)
Professional Organiztions
- Realtor Associations, Local, State, and National
- Realtor copyright designation
- Code of Ethics
- MLS services
COURSE ITINERARY
Session 1
The Real Estate Business
An Introduction to the Real Estate Business
Real Estate Brokerage
Development and Construction
The Role of Government
Professional Organizations
License Law and Qualifications for Licensure
Historical Perspective of Florida Real Estate License Law
General Licensing Provisions
Sales Associate Qualifications for Licensure
Broker Requirements
Registration and Licensure
Post-Licensing Education
Continuing Education
Real Estate Services
Individuals Who Are Exempt from Licensure
Session 2
License Law and Administration
Florida Real Estate Commission
Department of Business and Professional Regulation (DBPR)
Real Estate Regulation
Real Estate Education and Research Foundation
Brokerage Relationships and Ethics
Law of Agency
Brokerage Relationships in Florida
Misrepresentation and Fraud
Professional Ethics
Session 3
Real Estate Brokerage Operations
Brokerage Offices
Advertising
Escrow or Trust Accounts
Rental Lists and Rental Companies
Broker’s Role as an Expert
Broker’s Commission
Change of Employer
Membership in Organizations
Types of Business Entities That May Register
Trade Names
Business Arrangements and Entities That May Not Register as Brokers
Complaints, Violations, and Penalties
Procedures for Investigations and Hearings
Complaint Process—Eight Steps
Violations and Penalties
Types of Penalties
FREC Disciplinary Guidelines
Denial and Recovery of Compensation
Real Estate Recovery Fund
Legal Terms
Session 4
Federal and State Housing Laws
Federal Fair Housing Law
Federal Laws Regarding Land and the Environment
Federal Laws Regarding Mortgage Lending
State Law Regarding Mortgage Lending
State Housing and Land Sales Laws
State Laws Requiring Real Estate Disclosures
Property Rights: Estates, Tenancies, and Multiple Ownership
Interests
The Nature of Property
General Property Rights
Estates and Tenancies
Special Ownership Interests
Cooperatives, Condominiums, and Time-Sharing
Session 5
Titles, Deeds, and Ownership Restrictions
Title to Real Property
Acquiring Legal Title
Deeds
Ownership Limitations and Restrictions
Legal Descriptions
Purposes of Legal Descriptions
Types of Legal Descriptions
Session 6
Real Estate Contracts
Preparation of Contracts
Statute of Frauds
Statute of Limitations
Essentials of a Contract
Contract Categories
Contract Negotiation
Termination of Contracts
Contracts Important to Real Estate
Real Estate Finance
Legal Theories of Mortgages
Loan Instruments
Mortgage Clauses
Types of Mortgages
Methods of Purchasing Mortgaged Property
Other Types of Financing
Qualifying the Buyer
Session 7
The Mortgage Market
The Mortgage Market and Money Supply
Federal Regulatory Bodies
Primary Mortgage Market
Secondary Mortgage Market
Lender Charges
Computations and Title Closing
Computations
Closing Statements
Closing Statement Items
Sample Closing Statement Problem
Session 8
Estimating Real Property Value
Appraisal Regulation
Types of Value
Market Value
Approaches to Estimating Real Property Value
Data Sources
Comparative Market Analysis
Comparative Market Analysis: Case Situation
Product Knowledge
Lot Types
Structural Elements
Session 9
Real Estate Investment Analysis and Business
Opportunity Brokerage
Need for Real Estate Investment Analysis
Real Estate as an Investment
Analyzing Investment Properties
Assessment of Risks
Leverage
Business Brokerage
Expertise Required in Business Brokerage
Valuation of Businesses
Steps in the Sale of a Business
Taxes Affecting Real Estate
City and County Property Taxes
Federal Income Taxes
Session 10
The Real Estate Market
Three Key Questions
Characteristics of the Real Estate Market
Supply and Demand Factors
Planning and Zoning
History of Planning and Zoning
Local Planning Agency
The Planning Process
Zoning Laws and Code Enforcement
Appeals and Exceptions
Session 11
Review
Session 12
Practice Examination and Review
Session 13
Final Examination
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