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Florida Real Estate Sales Associate Post-License Course Reicon Publishing Real Estate As a Career 3 FLORIDA REAL ESTATE SALES ASSOCIATE POST-LICENSE COURSE 3RD EDITION Gold Coast School of Real Estate Copyright © 2017 by Reicon Publishing, LLC. All rights reserved. ISBN 978-0-9984395-9-4 This material may not be reproduced in any form or by any means, electronic or mechanical, including photocopying, recording, or by any information storage and retrieval system or used for teaching purposes without the express, written permission of Reicon Publishing, LLC. Printed in the United States of America This material is designed to provide accurate and authoritative information in regard to the subject matter covered. It is provided to students of Gold Coast School of Real Estate with the understanding that the school and its employees are not engaged in rendering legal, accounting, or other professional services. If legal advice or other expert assistance is required, the services of a competent professional should be sought. References to Florida statutes and rules of the Florida Real Estate Commission, Florida Real Estate Appraisal Board and the Florida Administrative Code are included in this text between brackets indicating the appropriate statute or rule. PREFACE Congratulations on attaining your Florida real estate license, and selecting Gold Coast as your school of choice to renew your license. Gold Coast is Florida’s leading real estate, insurance, and construction school, and has helped hundreds of thousands of students like you since 1970. You worked hard to get your license. Florida law requires that you complete the 45-hour course and pay your renewal fees prior to your license expiration date. Failure to do so will render your license void. Don’t take that chance. We highly recommend that you complete the 45-hour course well in advance of your license renewal date. While your pre-license sales associate course focused heavily on passing the end of course and state exams, the 45-hour post-license course is intended to be more of an application oriented course. You should recognize many of the concepts from your pre-license course, but this course will cover the concepts from an application or real life point of view. This course does not require a state examination, but it does require an end-of-course examination. All of the concepts covered on your end-of-course examination are covered throughout the practice questions in the course. Please take the time to read the book and answer all of the questions. You must obtain a passing grade of 75% on the end-of-course exam to complete the course. This book is intended to serve as an educational resource. It is not intended as a substitute or replacement for the rules or statutes of the state of Florida. The authors do not intend to give legal or accounting advice. If you are involved in a situation or transaction that requires a legal or accounting opinion, we recommend that you seek the advice of a properly licensed attorney, accountant, or professional. This edition of the book is the culmination of the efforts of many people over a number of years. Gold Coast would like to recognize and thank the following people for their input, hard work, and dedication: Wayne Hasse, Debby Hancock, Toni Golden, Melodee Ashby, Tim Haines, Jack Bennett, Barb Byrne, and Mike Byrne. I want to personally thank you for choosing Gold Coast and wish you the best with your real estate career. If you have any suggestions to improve this material or course, I would like to hear from you. Please contact me at [email protected]. Feedback from previous students is invaluable for future students. Thank you, John Greer, EdD Director, Gold Coast School of Real Estate i This Page was Left Blank Intentionally. ii TABLE OF CONTENTS Chapter 1 Real Estate as a Career ............................................ 1 Chapter 2 Real Estate Laws and Rules ................................... 29 Chapter 3 Evaluating and Pricing Property .............................. 51 Chapter 4 Working with Sellers ................................................ 77 Chapter 5 Financing Programs ...............................................113 Chapter 6 Working with Buyers ...............................................155 Chapter 7 Basic Residential Product Knowledge ................... 191 Chapter 8 Fair Housing Laws ................................................. 213 Chapter 9 Closing Real Estate Transactions ......................... 233 Chapter 10 Foreclosures, Short Sales, and Auctions .............. 271 Chapter 11 Condos, Coops, and Timeshares ........................... 287 Chapter 12 Real Estate Investing and Taxation ........................ 303 Chapter 13 Becoming a Broker or Manager ..............................329 Real Estate Forms .......................................................................349 Answer Key ...............................................................................401 Index ...............................................................................403 iii This Page was Left Blank Intentionally. iv CHAPTER REAL ESTATE AS A CAREER OVERVIEW Real estate is a truly dynamic industry with numerous opportunities and professional specialties for the practitioner. “Under all is the land,” says the preamble to the REALTOR® code of ethics. It’s easy for real estate professionals to forget that they deal in what is seen by most people as one of the most valuable commodities on earth - land upon which all else is built. Real estate professionals are privileged to help people realize the true American dream of home ownership on a daily basis. The opportunities in real estate are endless and the future looks bright. Not only does Florida have a booming population to work with, but people from all over the world come to Florida daily to buy and sell real estate. As licensed real estate professionals, we are in an enviable position to benefit directly from this dynamic real estate market. Everyone needs to live somewhere, work somewhere, and shop somewhere. The potential for success in Florida real estate is truly unlimited. This chapter will provide information about the vast array of specializations available in this field, discuss the role that education and technology play in a real estate career, and offer tips for planning your real estate career. OBJECTIVES After completing this chapter, you should be able to do all of the following: x Identify various specializations available to real estate professionals x Know the definition for a residential sales transaction x Identify types of professional organizations available to real estate licensees x Know the purpose of the NAR Code of Ethics x Explain the skills necessary for a successful real estate career x Know the key technological tools for a successful business x Identify important elements in planning your business 1 SELECTING A SPECIALIZATION WITHIN THE REAL ESTATE PROFESSION 2 3 The real estate profession offers a wide variety of choices of activities in which 4 licensees may specialize. These choices are either directly related to a specific type of 5 real estate or relate to support services that real estate professionals provide to the 6 general public. The following are some examples of specialization that illustrate the wide 7 variety of opportunities in the real estate profession. 8 9 Residential Sales or Rentals 10 11 Residential sales or rentals can provide a rewarding career for new or experienced 12 real estate professionals. The overwhelming majority of real estate licensees are 13 involved in residential sales. 14 Many licensees will concentrate on one type or style of property or on one particular 15 neighborhood, a practice called farming. Finding and specializing in a particular 16 neighborhood or type of property is considered one of the best ways to succeed in 17 residential sales. 1 2 Chapter 1 1 A residential transaction is defined in F.S. 475.278(5)(a) as the sale of any: 2 3 x Improved residential property of four units or fewer, including condominium units; 4 x Unimproved property intended for four units or fewer; 5 x Agricultural properties of ten acres or less; 6 x Leases with options to purchase all or a portion of improved property of four or 7 fewer residential units; and 8 x Dispositions of business interests for property of four or fewer residential units. 9 10 Commercial Sales or Leasing 11 12 Commercial properties include apartment buildings, strip malls, office space, and 13 shopping centers. Real estate licensees who specialize in commercial real estate must 14 have extensive knowledge of business property. They must be capable of analyzing the 15 past and future potential income derived from investment property. 16 Commercial real estate practitioners must also have a basic knowledge of tax laws 17 that affect income earned from commercial property as well as the tax consequences of 18 buying and selling investment property. 19 20 Industrial Sales or Leasing 21 22 Industrial properties include warehouses and manufacturing facilities. Industrial sales 23 and leasing generally involve user/owners, rather than investors. Industrial real estate 24 practitioners seek to locate properties that meet the future owner's requirements. 25 Knowledge concerning government regulations of land use, environmental 26 considerations, transportation, labor costs, and utility charges are all important when 27 attempting to meet the requirements of such purchasers. 28 29 Timeshare/Vacation Ownership Sales 30 31 A timeshare property is a condominium unit that is subdivided into ownership time 32 periods. Timeshare
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