FL RE Broker flashcards

32 cards. Read the term and the definition here. The deck at the top of this page is optional.

Transaction broker default

Florida's default brokerage relationship unless the parties agree otherwise in writing; owes limited representation, honesty, disclosure of known material facts, and accounting, but no loyalty or confidentiality.

Escrow deposit deadline

Broker must deposit trust funds into a trust account within three business days of receipt, unless the buyer and seller instruct in writing that the deposit be held by a title company or attorney.

Designated sales associate

Appointment used in nonresidential transactions when both principals are represented; requires written consent from both parties, and the broker remains a disclosed transaction broker or single agent.

Single agent duties

Full fiduciary duties owed to one principal: loyalty, confidentiality, obedience, full disclosure, accounting, and reasonable care and skill; confidentiality survives termination of the relationship.

No brokerage relationship

Licensee owes honesty and fairness, disclosure of known facts materially affecting value, and accounting for funds, but no fiduciary duties; must be disclosed in writing before substantive contact.

Broker registration deadline

Broker must register an associated sales associate with DBPR within 45 days of the associate's association with the brokerage; the associate may not perform brokerage activity until registered.

Trust account reconciliation

Broker compares the bank balance to the sum of individual ledger balances; property management accounts are reconciled monthly, and all other escrow accounts at least quarterly.

Escrow record retention

Broker must retain escrow records for at least three years from the date of receipt and brokerage transaction records for at least two years from the date of the transaction.

FREC disciplinary fine cap

The Florida Real Estate Commission may impose administrative fines up to $5,000 per violation, or up to $10,000 for violations involving real estate fraud, plus probation, suspension, or revocation.

Independent contractor agreement

Written agreement between broker and associate specifying independent contractor status, commission splits, and duties; IRS common-law factors control, not license law alone.

Broker supervision duty

Broker must supervise all associated associates, maintain a written office policy manual, verify license status, and ensure disclosures and approved contract forms are used.

Vicarious liability

Broker may be liable for the acts of associated associates within the scope of employment; independent contractor status does not relieve the broker of license-law supervision duties.

Listing agreement elements

Florida listing agreements must be in writing, contain a definite expiration date, and state a definite commission; types are exclusive right of sale, exclusive agency, and open listing.

Contract for deed

Installment land contract where the seller retains legal title until final payment while the buyer holds equitable title; buyer should record a memorandum to protect the interest.

Option contract

Gives the optionee the right, not the obligation, to purchase within a stated period at a stated price; consideration is required and the exercise period must be definite.

RESPA Loan Estimate

Lender must deliver the Loan Estimate within three business days of application and the Closing Disclosure at least three business days before consummation for federally related mortgage loans.

Deed documentary stamp tax

Florida charges $0.70 per $100 of consideration on deeds, rounded up to the next $100; Miami-Dade adds a surtax on the portion above $100.

Note documentary stamp tax

Florida charges $0.35 per $100 of the promissory note amount, rounded up; intangible tax on mortgages was repealed and is no longer collected.

Proration convention

Taxes and other annual items use a 365-day year, rent uses a 30-day month; the seller is typically charged through the day of closing unless the contract provides otherwise.

Net to seller

Sale price minus commission, mortgage payoff, closing costs, and seller-paid prorations, plus credits such as prorated rents and earnest money applied to the seller.

Qualifying ratios

Front-end ratio is PITI divided by gross monthly income; back-end ratio is total monthly debt divided by gross monthly income; conventional guideline 28/36, FHA 31/43.

Loan-to-value ratio

Loan amount divided by the lesser of purchase price or appraised value; PMI generally required above 80% LTV and must terminate at 78% based on the original amortization schedule.

Sales comparison approach

Appraisal method for residential property that adjusts recent comparable sales for differences in location, size, condition, and features to indicate market value.

CMA versus appraisal

Comparative market analysis is prepared by a licensee to price a listing; an appraisal is prepared by a state-certified or licensed appraiser and is required for federally related loans.

RESPA escrow cushion

Lender may hold no more than one-sixth of the total annual escrow disbursements as a cushion; surplus over $50 must be refunded to the borrower.

Easement appurtenant

Easement that benefits a dominant parcel and burdens a servient parcel; it runs with the land and transfers automatically with the dominant property.

Florida homestead protection

Protects up to one-half acre within a municipality or 160 acres outside from forced sale, subject to exceptions for taxes, mortgages, and mechanics' liens.

Save Our Homes cap

Limits annual increases in assessed value of a homestead to 3% or the change in the Consumer Price Index, whichever is less; the benefit may be portable.

Nonconforming use

A use that existed lawfully before a zoning change and may continue, but generally cannot be expanded or resumed after discontinuance for a specified period.

Fair housing protected classes

Federal law protects race, color, religion, sex, national origin, familial status, and disability; Florida adds age and marital status to its fair housing law.

Reasonable accommodation

A change in rules, policies, or services needed for a person with a disability to use and enjoy housing; requests are evaluated individually, and service animals must be allowed.

Antitrust per se violations

Price fixing, group boycotts, and market allocation among competitors are automatically illegal; brokers may not collectively discuss commission rates or split agreements.