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REAL ESTATE SALES ASSOCIATE PRE-LICENSE (63-HOURS) COURSE SYLLABUS

FL Associate Requirements for licensure: 1. Successfully complete a FREC-approved pre-licensing course for sales associates consisting of 63 classroom- hours (60 hours of instructions and 3 hours for end-of-course examination with a grade of at least 70). The course is valid for licensure purposes for 2 years after the course completion date. 2. Submit a completed application, electronic fingerprints, and appropriate fee. 3. Pass the Florida Real Estate Sales Associate Examination with a grade of at least 75. 4. Activate the license, otherwise the license is issued in an inactive status. 5. Successfully complete a FREC-approved post-licensing course for sales associate consisting of at least 45 classroom-hours, prior to the expiration of the initial sales associate license. Textbook: Crawford, Linda L., Florida Real Estate Principles, Practices & Law (43rd Ed), (2020) Attendance: Students may not miss more than 8 hours of instruction. An instructional hour is 50 minutes (Section 475.17, F.S.). Any student who misses more than the allotted 8 hours MUST make up the missed time within 30 days of the End of Course examination date. Questions regarding makeup classes, class schedules, etc., should be directed to the school office at (904) 596-5947. End-of-Course Exam: The end-of-course exam consists of 100 questions that are worth 1 point each. A passing score of at least 70 is required. Three (3) hours is allotted for this exam. If a student fails the exam, they must wait at least 30 days from the date of the original examination before retesting. A student may only retest a maximum of one time. If a student fails the retest, the student must repeat the course before being eligible to retake the end-of-course examination (61J2-3.008, F.A.C.).

Course Topics and Learning Objectives: Unit 1: Course Overview: The  Describe the various activities of real estate brokerage;  Distinguish among the five major sales specialties;  Identify the role of managers and situations that require a CAM license;  Describe activities that require appraiser services, USPAP, state regulation of appraisers, and distinguish among a CMA, a BPO, and an appraisal;  Understanding the mortgage process and the role of the originator;  Explain the three phases of development and construction; and  Distinguish among the three categories of residential construction. Key Terms:  absentee owner  community association manager (CAM)   appraisal  comparative market analysis (CMA)   appraiser  dedication  real estate brokerage  broker price opinion (BPO)  farm area  REALTOR®  business broker  follow-up  rental agent  business opportunity  (MLS)  subdivision plat map  target market Unit 2: Real Estate License Law and Qualifications for Licensure  Distinguish among the federal and state laws and administrative rules important to real estate;  Distinguish among the three license categories;

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 Describe license application requirements;  Describe nonresident application requirements and explain mutual recognition agreements;  Identify the qualifications for a sales associate license;  Describe the education requirements for post-license education and continuing education;  Identify the qualifications for a broker license;  Distinguish between registration and licensure; and  Identify real estate services that require a real estate license and exemptions for licensure. Key Terms:  broker  license  real estate services  broker associate  mutual recognition agreement  reciprocity  compensation  nolo contendere/no contest  registration  expungement  owner-developer  sales associate  Florida resident  prima facie evidence  sealed  withhold adjudication

Unit 3: Real Estate License Law and Commission Rules  Describe the scope and function of the DBPR and the DRE  Describe the composition and member qualifications of the Florida Real Estate Commission (FREC)  Describe the Commission’s general powers and duties;  Distinguish between active/inactive license status, describe regulations of involuntary inactive status; and  Distinguish between multiple and group licenses. Key Terms:  active license  executive  probation  cancel  group license  promulgates  cease to be in force  involuntary active  quasi-judicial  current mailing address  ministerial duties  quasi-legislative  current status  multiple license  voluntary inactive  null and void  voluntary relinquish

Unit 4: Authorized Relationships, Duties and Disclosure  Distinguish among agency relationships in general business dealings;  Describe which legal provisions apply only to residential real estate transactions;  Describe the duties owed in a transaction broker relationship;  Describe the duties that single agents have to their principals;  Describe the duties owed in a no brokerage relationship (nonrepresentation);  Describe the disclosure procedures and the required content and format of the disclosure notices;  Describe the process of transition from a single agent to a transaction broker;  Describe the disclosure requirements for nonresidential transactions when buyer and seller have assets of $1 million or more; and  List the events that will cause a brokerage relationship to be terminated. Key Terms:

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 administrative law  designated sales associate  principle  agent  dual agency  residential sale  at arm’s length  fiduciary  single agent  caveat emptor  general agent  special agent  common law  limited representation  statutory law  consent to transition  no brokerage relationship  subagent  customer  nonrepresentation  transaction broker

Unit 5: Real Estate Brokerage Activities and Procedures  Identify the requirements for a broker’s office(s) and explain what determines whether a temporary shelter must be registered as a branch office;  List the requirements related to sign regulation;  List the requirements related to the regulation of advertising by real estate brokers;  Explain the term immediately as it applies to earnest money deposits;  Describe the four settlement procedures available to a broker who has received conflicting demands or who has a good-faith doubts to who is entitled to disputed funds;  Explain the rule regarding the advertisement of rental property information or lists or negotiation of rentals;  Describe the obligations placed on a sales associate who changes employers and/or address; and  Contrast the features of the various types of business organizations. Key Terms:  antitrust laws  escrow disbursement order (EDO)  market allocation  arbitration  general partnership  mediation  blind advertisement  good-faith doubt  ostensible partnership  commingle  immediately  personal assistant  conflicting demands  interpleader  point of contact information  corporation  kickback  price-fixing  declaratory judgement  limited liability company (LLC)  professional association (PA)  deposit  limited liability partnership (LLP)  sole proprietorship  earnest money  limited partnership  telephone solicitation  escrow account  litigation  trade name  trust funds

Unit 6: Violations of License Law, Penalties and Procedures  Distinguish among the legal terms presented in this unit;  Explain the procedures involved in the reporting of violations, the elements of a valid complaint, and the investigations of complaints;  Describe the composition of the probable-cause panel;  Describe the hearing process;  Recognize events that would cause a license application to be denied;  Distinguish among the various violations and administrative penalties;  Distinguish among the various penalties that may be issued by a court of law; and  Explain the provisions of the Real Estate Recover Fund.

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Key Terms:  breach of trust  failure to account for and deliver  moral turpitude  citation final order  notice of noncompliance  commingle  formal (administrative) complaint  probable cause  complaint  formal hearing  recommended order  concealment  fraud  stipulation  conversion  informal hearing  subpoena  culpable negligence  legally sufficient  summary (emergency)  Division of Administrative  material fact suspension order Hearings (DOAH)  misrepresentation  voluntary relinquishment for permanent revocation

Unit 7: Federal and State Laws Pertaining to Real Estate  Describe the features of the Civil Rights Acts of 1866, 1964, and 1968 and explain the significance of the Jones v. Mayer court case;  List the property exempt from the 1968 Fair Housing Act and describe the types of discriminatory acts that are prohibited under the Fair Housing Act;  Describe the objectives and major provisions of the Americans with Disabilities Act;  Describe the major provisions of the Interstate Land Sales Full Disclosure Act; and  Describe the provisions of the Florida Residential and Tenant Act. Key Terms:  blockbusting  familial status  public accommodations  Civil Rights Act of 1866  handicap status  redlining  Fair Housing Act  property report  steering

Unit 8: Property Rights: Estates and Tenancies; , Cooperatives, Community Development Districts, Homeowner Associations, and Time-Sharing  Define based on the definition in Chapter 475, F.S, and explain the physical components of real property;  Distinguish between real and personal property and explain the four tests courts use to determine if an item is a fixture;  Describe the bundle of legal rights associated with real property ownership;  List the principal types of estates (tenancies), describe their characteristics, and describe the benefits and protections associated with the Florida homestead law; and  Distinguish among cooperatives, condominiums, and time-shares and describe the main documents associated with condominiums.

Key Terms:

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 bundle of legal rights  freehold estate  real property  common elements  homestead  remainderman  concurrent ownership  joint tenancy  right of survivorship   land  riparian rights  condominium documents   separate property  cooperative  life estate  tenancy at sufferance  declaration of condominium  littoral rights  tenancy at will  estate for years  nonfreehold estate  tenancy by the entireties  estate in severalty  personal property  tenants in common  fee simple estate  proprietary  time-share  fixture  prospectus  trade fixture  real estate  undivided interest

Unit 9: Title, and Ownership Restrictions  Differentiate between voluntary and involuntary alienation, explain the various methods of acquiring title to real property, and describe the conditions necessary to acquire real property by ;  Distinguish between actual notice and constructive notice;  Distinguish between an abstract of title and a , and explain the different types of ;  Describe the parts of a and the requirements of a valid deed;  List and describe the four types of statutory deeds and the legal requirements for deeds; and  List and describe the various types of governmental and private restrictions on ownership of real property and distinguish among the various types of and liens. Key Terms:  abstract of title  encroachment  net lease  acknowledgement  equitable title  opinion of title  actual notice  escheat  owner’s policy  adverse possession  further assurance  percentage lease  alienation  general lien  police power  appurtenance  general warranty deed  quiet enjoyment  assignment  grantee  quitclaim deed  chain of title  granting clause  restrictive covenants  condemnation  grantor  seisin  construction lien  gross lease  specific lien  constructive notice  ground lease  sublease  deed  habendum clause  superior lien  deed restrictions  intestate  testate  easement  involuntary alienation  title  easement appurtenant  junior lien  title insurance  easement by necessity  lender’s policy  variable lease  easement by prescription  lien  voluntary alienation  easement in gross  lis pendens  warranty forever   mechanic’s lien

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Unit 10: Legal Descriptions  Describe the purpose of legal descriptions and understand the licensee’s role and responsibilities as it pertains to legal descriptions;  Describe the process of creating a legal description using the metes-and-bounds method;  Locate a township by township line and range;  Locate a particular section within a township and understand how to subdivide a section;  Calculate the number of acres in a parcel based on the legal description and convert acres to square feet; and  Explain the lot and block survey method and the use of assessor’s parcel numbers. Key Terms:  assessor’s parcel number  lot and block  range  base line  metes-and-bounds description  section  check  monument  survey  government survey system  point of beginning (POB)  tier  legal description  principle meridian  township  township line

Unit 11: Real Estate Contracts  List and describe the essentials of a contract, list the four types of contracts with which licensees may assist buyers and sellers, and describe the effect of the statute of frauds and the statute of limitations;  Distinguish among formal, informal, bilateral, unilateral, implied, expressed, executory, and executed contracts;  Describe the various was an offer is terminated;  Describe the various methods of terminating a contract and explain the remedies for breach of contract;  Differentiate among the various types of listings;  Describe the elements of an option contract;  Explain and describe the various disclosures required in a real estate sale contract; and  Recognize what constitutes fraud, misrepresentation, and culpable negligence. Key Terms:  assignment  fraud  procuring cause  attorney-in-fact  good consideration  statute of frauds  bilateral contract  homeowners association (HOA)  statute of limitations  buyer brokerage agreement  liquidated damages  unenforceable contract  community development district (CDD)  meeting of the minds  unilateral contract  competent  misrepresentation  valid contract  contract  net listing  valuable consideration  enforceable contract  novation  vendee  exclusive-agency listing  open listing  vendor  exclusive-right-of-sale listing  option contract  void contract

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 parol contract  voidable contract

Unit 12: Residential Mortgages  Distinguish between title theory and lien theory and describe the mortgage instrument and the promissory note;  Describe important mortgage provisions;  Describe the various features of a mortgage, including down payment, loan-to-value ratio, equity, interest, loan servicing, escrow account, PITI, discount points, and loan origination fee;  Calculate the loan-to-value ratio, explain the use of discount points, and calculate the approximate yield on a loan;  Explain assignment of mortgage and the purpose of an estoppel certificate;  Distinguish among the various methods of purchasing mortgaged property and other types of financing; and  Explain the process, distinguish between judicial and nonjudicial foreclosure, and describe the mortgagor’s and mortgagee’s rights in a foreclosure. Key Terms:  acceleration clause  estoppel certificate  mortgagor  assignment of mortgage  first mortgage  note  assumption  foreclosure  novation  blanket mortgage  hypothecation  partial release clause  buydown  interest  PITI  contract for deed (land contract)  junior mortgage  prepayment clause  deed in lieu of foreclosure  land development loan  prepayment penalty  default  lien theory  receivership clause  defeasance clause  lis pendens  right to reinstate  discount points  loan origination fee  satisfaction of mortgage  due-on-sale clause  loan servicing  short sale  equity  loan-to-value ratio (LTV)  subject to  equity of redemption  mortgage  subordination agreement  escrow  mortgagee  takeout commitment  title theory

Unit 13: Types of Mortgages and Sources of Financing  Describe the features of conventional mortgages;  Describe the features of an amortized mortgage and mortise a level-payment plan mortgage when given the principle amount, the interest rate, and the monthly payment amount;  Describe the mechanics of an adjustable rate mortgage and the components of an ARM;  Distinguish among the various types of custom mortgages;  Describe the characteristics of FHA-insured mortgages and common FHA loan programs;  Identify the guarantee feature of VA mortgage loans and the characteristics of VA loan programs;

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 Explain the process of qualifying for a loan, how to calculate qualifying ratios, and distinguish among the primary sources of home financing;  Describe the role of the secondary mortgage market and know the features of the major agencies active in the secondary market;  Recognize and avoid ;  Describe the major provisions of the federal laws regarding fair credit and lending; and  Describe the functions and tools used by the federal regulatory bodies. Key Terms:  adjustable-rate mortgage (ARM)  intermediation  partially amortized mortgage  amortized mortgage  level-payment plan  payment cap  annual percentage rate (APR)  lifetime cap  periodic cap  balloon payment  Loan Estimate  primary mortgage marker  biweekly mortgage  margin  principal  Disclosure  monetary policy  purchase mortgage market   mortgage broker (PMM)  conventional loan  mortgage fraud  reserve requirements  demand deposit  premium (MIP)  reverse mortgage  discount rate  mortgage lender  secondary mortgage marker  disintermediation  mortgage loan originator (MLO)  special information booklet  entitlement   teaser rate   nonconforming loan  triggering terms   open-market operations  Truth in Lending Act (TILA)  Ginnie Mae  package mortgage  up-front mortgage insurance  premium (UFMIP)  index

Unit 14: Real Estate Related Computations and Closing of Transactions  Compute the sale commission;  Calculate the percent of profit or loss, given the original cost of the investment, the sale price, and the dollar amount of profit or loss;  Define settlement and title closing and list the preliminary steps to a closing;  Prorate the buyer’s and seller’s expenses;  Calculate the dollar amount of transfer taxes on deeds, mortgages, and notes and computer individual costs, allocating the transfer taxes and costs to the proper parties; and  Explain the rules of thumb for closing statement entries. Key Terms:  arrears  debit  profit  credit  preclosing inspection  proration  title closing

Unit 15: The Real Estate Markets and Analysis

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 Describe the physical and economic characteristics of real estate;  Identify the factors that influence supply and demand for real estate; and  Distinguish among ways of interpreting market conditions and demonstrating understanding of the different market indicators. Key Terms:  buyer’s market  household  situs  demand  seller’s market  supply  vacancy rate

Unit 16:  Describe federal and state regulations pertaining to appraising, the appraiser’s fiduciary relationship, and the Uniform Standards of Professional Appraisal Practice (USPAP);  Distinguish among value, price, and cost; distinguish among the various types of value; define market value and describe its underlying assumptions; and describe the four characteristics of value;  Distinguish among the principles of value;  Differentiate among the three approaches to estimating the value of real property;  Estimate the value of a subject property using the sales comparison approach;  Estimate the value of a subject property using the cost-depreciation approach;  Estimate the value of a subject property using the income approach;  Reconcile the three approaches to establish the final value estimate;  Calculate value using gross multiplier analysis; and  Explain how to prepare a comparative market analysis (CMA), comparing and contrasting with the sales comparison approach. Key Terms:  appraisal  (GRM)  progression  assemblage   reconciliation  automated valuation model (AVM)  income approach  regression  cost  incurable  replacement cost  cost approach  investment value  reproduction cost  curable  market value  sales comparison approach  depreciation  net operating income (NOI)  subject property  economic life  overimprovement  Uniform Standards of  effective age  plottage Professional Appraisal  effective gross income (EGI)  potential gross income (PGI) Practice (USPAP)  federally related transaction  price  vacancy and collection losses  gross income multiplier (GIM)  principle of substitution  value

Unit 17: Real Estate Investments and Business Opportunity Brokerage  Define key investment terms and distinguish among the different types of real estate investments;  Identify the advantages and disadvantages of investing in real estate;  Distinguish among the various types of risk;  Describe the similarities and differences between real estate brokerage and business brokerage;

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 Describe the types of expertise business brokerage requires and distinguish among the methods of appraising businesses; and  Describe the steps in the sale of a business.

Key Terms:  appreciation  cash flow  liquidation analysis  asset  equity  liquidity  basis  going-concern value  real estate investment trust (REIT)  capital gain (or loss)  goodwill  risk  leverage  tax shelter

Unit 18: Taxes Affecting Real Estate  Discuss the city and county property taxation process and list the steps involved in the tax appeal procedure;  Distinguish among immune, exempt, and partially exempt property and describe the various personal exemptions available to qualified owners of homestead property;  Compute the on a specific parcel, given the current tax rates, assessed value, eligible exemptions, and transfer of assessment limitation difference (save our homes portability) if applicable, and describe the purpose of Florida’s Law;  Calculate the cost of a special assessment, give the conditions and amounts involved;  Describe the tax advantages of home ownership; and  Explain how to determine taxable income of investment real estate and distinguish between installment sales and like-kind exchange. Key Terms:  adjusted basis  debt service  just value  ad valorem  depreciation  like-kind exchange  assessed value  exempt  mill  assessment limitation (SOH benefit)  Green Belt Law  special assessment  boot  installment sale  tax rate  capital gain  immune properties  taxable income  taxable value

Unit 19: Planning and  Describe the composition and authority of the local planning agency and the purpose of land-use controls and the role of zoning ordinances;  Calculate the number of lots available for development, given the total number of acres contained in a parcel, the percentage of land reserved for streets and other facilities, and the minimum number of square feet per lot;  Distinguish among the five general zoning classifications, zoning ordinances, building codes, and health ordinances;  Explain the purpose of a variance, a special exception, and a nonconforming use and describe the

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characteristics of planned unit developments;  Understand the basic provisions of the national program and describe and describe the impact of the Comprehensive Environmental Response Compensation and Liability Act (CERCLA); and  Explain the various environmental hazards associated with real estate.

Key Terms:  asbestos  concurrency  nonconforming use  buffer zone  density  planned unit development (PUD)  building codes  development of regional impact (DRI)  R-value  building inspection  environmental impact statement (EIS)  special exception  building permit  health ordinance  special flood hazard area (SFHA)  certificate of  intensity  special purpose property  comprehensive plan  laissez-faire  variance  mixed land use  zoning ordinance

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