Sales Associate
Pre-license Workshop
Reasons to Become
a Real Estate Agent
 You are your own boss
 Minimal Start Up Cost
 Flexible Hours
 Freedom to work w...
Licensing Requirements
 Be eighteen years of age or older
 High School Diploma or equivalent (G.E.D.)
 Complete 63 hour...
Getting a License
Application through State
www.MyFloridaLicense.com
Fingerprinting required
www.pearsonvue.com
1-877-23...
Getting Started
The Course
Internet based approved by FREC
Corresponding Textbook
Live Workshop
Internet Based Course
 63 hour Pre-license Course
 FREC approved for CareerQuest
 Login-Logout No time requirement
 Au...
Textbook
 Corresponding Textbook
 Approved by FREC
 Contains answer key
Live Workshop
Not required, tutorial only
Great Review
Q & A
No test
Chapter One
Introduction to the Real Estate Business
 Describe various activities of real estate
brokerage
 Know the fiv...
Chapter One Review
 Farming is a great way to develop a real estate
business
 Property management is popular because of
...
Chapter Two
License Law & Qualifications
 Know qualifications for sales associate license
 Understand the application pr...
Chapter Two Review
 Associates can work for either brokers or owner-
employers
 Applicant must be 18 years old with high...
Chapter Three
License Law & FREC
 Know the composition of FREC
 Know the powers and duties of FREC
 Distinguish the dif...
Chapter Three Review
 7 members on FREC: 5 licensed & 2 unlicensed
 FREC appointed by Governor confirmed by state Senate...
Chapter Four
Property Rights
 Define real property
 Know physical components of real estate
 Know legal test for fixtur...
Chapter Four Review
 Real property is the land with everything attached and
the “bundle of rights”
 Personal property ma...
Session Four Review
 Own real estate in fee simple or life estate
 Homestead: protected from judgment
foreclosure
 Tena...
Chapter Five
Real Property Ownership
 Know methods of acquiring title to real estate
 Distinguish between constructive a...
Chapter Five Review
 Constructive Notice is recording on public record
 Licensees should not give opinions of title
 Ch...
Chapter Five Review
 Warrant of Seisen (declaring ownership) is not
found in Quit Claim Deed
 Police Powers include zoni...
Chapter Six
Legal Description
 Know the purpose of a legal description
 Know the 3 types of legal descriptions
 Underst...
Chapter Six Review
 Metes and Bounds is the most accurate and has a Point
of Beginning
 Government Survey divides state ...
Chapter Seven
Sales Associates and Brokerage Activities
 Know the requirements of a broker’s office
 Know the difference...
Chapter Seven Review
 Every broker must have an office somewhere
 Required information:
 Broker/brokerage
 Lic. Real E...
Chapter Seven Review
 Construction trailer is “temporary shelter”
 Broker ultimately responsible for all
advertising
 A...
Chapter Seven Review
 Settlement Procedures for Conflicting Demands:
mediation, arbitration, litigation, and Escrow
Disbu...
Chapter Eight
Agency Laws
 Understand provisions in Florida’s Agency Laws
 Know the differences between the 3 types of
a...
Chapter Eight Review
 Dual agency repealed
 Single Agency:
 Full fiduciary
 Work with either buyer or seller
 Disclos...
Chapter Eight Review
 No Brokerage (Non-Rep):
 No skill, care, and diligence
 Minimum obligations
 Disclose prior to s...
Chapter Nine
The Real Estate Market
 Know the physical characteristics of real
estate
 Understand how supply and demand ...
Chapter Nine Review
 Physical characteristics are:
 Immobile
 Heterogeneous
 indestructible
 Situs is the uniqueness ...
Chapter Nine Review
 Demand:
 People wanting housing
 Price goes up, demand goes down
 Supply:
 Product on the market...
Chapter Ten
Residential Product Knowledge
 Understand the various building codes
 Know the different types of lots
 Kno...
Chapter Ten Review
 Building Codes are local in nature
 Contractor’s license are obtained through the DBPR
 A Key Lot i...
Chapter Eleven
Real Estate Appraisal
 Know Federal & State regulations regarding
appraising
 Understand market value
 D...
Chapter Eleven Review
 Appraisals can only be done by individuals that
are State Certified
 Real estate licensees can pr...
Chapter Eleven Review
 Comparable sales approach: Robin Hood
 Cost depreciation approach: special purpose buildings
 In...
Chapter Twelve
Investment & Business Opportunity
 Know the advantages and disadvantages in
buying investment real estate
...
Chapter Twelve Review
 Advantages:
 Good return
 Tax advantages
 Leverage
 Equity build-up
 Disadvantages:
 Illiqui...
Chapter Twelve Review
 Risk:
 Business risk: income lower than expenses
 Financial risk: no funds available
 Business ...
Chapter Thirteen
Real Estate Taxes
 Distinguish among immune, exempt, and
partial exempt properties
 Know how property t...
Chapter Thirteen Review
 Ad Valorem taxes are real estate taxes calculated in
millage
 Government properties are immune
...
Chapter Thirteen Review
 Taxable Income:
 Net Income
 +Reserves
 -Interest
 -Depreciation
 = Taxable Income
 Like-k...
Chapter Fourteen
Real Estate Contracts
 Know the essentials of a contract
 Distinguish among the various types of
contra...
Chapter Fourteen Review
 The Statute of Frauds require certain contracts
to be in writing to be enforceable
 The Partial...
Chapter Fourteen Review
 Contracts with minors are voidable
 Must have offer, acceptance, a communication
back
 Breach ...
Chapter Fourteen Review
 Listing contracts:
 Open listing
 Exclusive listing
 Exclusive right to sell (best)
 Net lis...
Chapter Fifteen
Real Estate Finance
 Distinguish between lien and title theory
 Distinguish between notes and mortgages
...
Chapter Fifteen Review
 Lien theory: property owner has title while bank
has mortgage. Title theory bank has title to loa...
Chapter Fifteen Review
 Discount points are pre-paid interest. Increases
lenders yield 1/8% for each point charged
 “Ass...
Chapter Sixteen
Sources of Mortgage Money
 Know the components of the Adjustable Rate
Mortgage
 Understand the amortizat...
Chapter Sixteen Review
 Amortization is payments of principal and interest. More
interest than principal but changes each...
Chapter Sixteen Review
 Convention mortgages require private mortgage
insurance on the portion of the loan greater than 8...
Chapter Sixteen Review
 Real Estate Settlement Procedures Act
 Information booklet within 3 days of app
 Good-faith est...
Chapter Seventeen
Real Estate Closings
 Know how to calculate sales commissions
 Know how to calculate:
 Doc stamps on ...
Chapter Seventeen Review
 Debits: money owed
 Credits: money received
 Prorations are items shared
 Expenses are monie...
Chapter Eighteen
Planning and Zoning
 Understand the authority of the Planning Commission
 Understand Florida’s Comprehe...
Chapter Eighteen Review
 The planning commission is appointed by
government leaders and made up of ordinary
citizens. The...
Chapter Nineteen
State & Fed Real Estate Laws
 Understand the 1968 Fair Housing Act
 Know the significance of Jones vs. ...
Chapter Nineteen Review
 1968 Fair Housing Act prohibits discrimination
based on race, color, religion, sex, national
ori...
Chapter Nineteen Review
 Landlord/Tenant Act allows landlords to co-
mingle deposits into person accounts:
 Pay tenant 5...
Chapter Twenty
Violations, Penalties, & procedures
 Know how a complaint is filed
 Understand the disciplinary process
...
Chapter Twenty Review
 The complaint must be legally sufficient
 The investigation is a gathering of facts
 Chairperson...
Chapter Twenty Review
 A hearing can be formal or informal
 Recommended Order by ALJ with 10 days to
challenge
 Final O...
Chapter Twenty Review
 FREC can:
 Suspend up to 10 yrs; fine up to $5,000; revoke
license
 State Attorney can:
 Fine a...
Chapter Twenty-One
Math
 Common areas: acres in subdivision, number of
offices in a building
 Cost-depreciation in appra...
Chapter Twenty One Review
 Loan amortization
 Calculate commission
 Pro-ration: taxes and rent
 Closing calculations: ...
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REAL ESTATE SALES ASSOCIATE PRE-LICENSE COURSE (HYBRID) $279

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REAL ESTATE SALES ASSOCIATE PRE-LICENSE COURSE (HYBRID) $279

  1. 1. Sales Associate Pre-license Workshop
  2. 2. Reasons to Become a Real Estate Agent  You are your own boss  Minimal Start Up Cost  Flexible Hours  Freedom to work when and where you want  Can raise a family and work without sacrificing either  Unlimited Earnings Potential
  3. 3. Licensing Requirements  Be eighteen years of age or older  High School Diploma or equivalent (G.E.D.)  Complete 63 hours Sales Associate Prelicense Course  Pass Pre-license Course Exam with a minimum grade of 70%  Submit state application and fingerprints  Apply for and pass state exam with minimum grade of 75%
  4. 4. Getting a License Application through State www.MyFloridaLicense.com Fingerprinting required www.pearsonvue.com 1-877-238-8232
  5. 5. Getting Started The Course Internet based approved by FREC Corresponding Textbook Live Workshop
  6. 6. Internet Based Course  63 hour Pre-license Course  FREC approved for CareerQuest  Login-Logout No time requirement  Audio on most pages  End-of-chapter Quizzes 100% score  End of course exam timed for 3 hours  Download end of course report
  7. 7. Textbook  Corresponding Textbook  Approved by FREC  Contains answer key
  8. 8. Live Workshop Not required, tutorial only Great Review Q & A No test
  9. 9. Chapter One Introduction to the Real Estate Business  Describe various activities of real estate brokerage  Know the five major sales specialties  Know the difference between CMA and Appraisal  Know the 3 phases of construction
  10. 10. Chapter One Review  Farming is a great way to develop a real estate business  Property management is popular because of absentee ownership  Appraisers must be state certified and follow strict USPAP guidelines  Developers turn over roads and infrastructure to government through dedication  Spec building: to build with hopes of selling  Custom building: build to owners plans
  11. 11. Chapter Two License Law & Qualifications  Know qualifications for sales associate license  Understand the application process  Know the educational requirements  Distinguish the different license categories  Know the services of real estate  Know the exemptions  Understand Mutual Recognition
  12. 12. Chapter Two Review  Associates can work for either brokers or owner- employers  Applicant must be 18 years old with high school diploma or equivalent  Must disclose any convictions  Approved application is good for 2 years  Irrevocable Consent to Service for out of state licensees (60 days after move out)  2 License: broker and sales associate  Broker Associate is broker working as associate  BAR SALE
  13. 13. Chapter Three License Law & FREC  Know the composition of FREC  Know the powers and duties of FREC  Distinguish the difference between void and ineffective  Understand how a license becomes involuntary inactive
  14. 14. Chapter Three Review  7 members on FREC: 5 licensed & 2 unlicensed  FREC appointed by Governor confirmed by state Senate for 4-year term  Can’t serve more than 2 consecutive terms  Involuntary inactive: fail to renew or employing broker has license suspended or revoked by FREC  Broker fails to notify DBPR of office move within 10 days, license will “cease to be in force”  Multiple license held by brokers for more than on brokerage  Group license held by associates working for unlicensed owner
  15. 15. Chapter Four Property Rights  Define real property  Know physical components of real estate  Know legal test for fixtures  Understand what the “bundle of rights” are  Understand Florida’s Homestead Laws  Know the difference between condos and coops
  16. 16. Chapter Four Review  Real property is the land with everything attached and the “bundle of rights”  Personal property may become a fixture:  Intent  Method of attachment  Agreement  Adaptation  Bundle of Rights include Disposition, Enjoyment, Exclusion, Possession, and Control Continued
  17. 17. Session Four Review  Own real estate in fee simple or life estate  Homestead: protected from judgment foreclosure  Tenancy by Entireties: husband-wife  Joint tenancy: equal Possession, Interest, Time, and Title  Condo/Coop rescission: 15 day new or 3 business day resale  Time Share rescission is 10
  18. 18. Chapter Five Real Property Ownership  Know methods of acquiring title to real estate  Distinguish between constructive and actual notice  Know the difference between abstract and chain of title  Know the different types of deeds and their components  Know the difference between government and private restrictions  Distinguish among the various types of leases
  19. 19. Chapter Five Review  Constructive Notice is recording on public record  Licensees should not give opinions of title  Chain of title (ownerships) is part of the abstract  Grantor (giver) must be competent  Habendum clause identifies the type of estate  Failing to record a deed may cause a person to be “estopped” (prevented) from ownership Continued
  20. 20. Chapter Five Review  Warrant of Seisen (declaring ownership) is not found in Quit Claim Deed  Police Powers include zoning  Government limitation includes Eminent Domain  Private limitation includes Deed Restriction  Assignment of lease: give up everything  Mechanic’s lien is effective when materials were delivered. Can foreclose homestead
  21. 21. Chapter Six Legal Description  Know the purpose of a legal description  Know the 3 types of legal descriptions  Understand sections, townships and ranges  Understand how to subdivide sections
  22. 22. Chapter Six Review  Metes and Bounds is the most accurate and has a Point of Beginning  Government Survey divides state into checkerboard  Meridian line runs north and south  Base line runs east and west  Ranges are 6-mile bans running north and south  Townships (Tiers) are 6-mile bans running east and west  A Township contains 36 sq miles and 36 sections  There are 640 acres in a section  Lot and Block is used in subdivisions
  23. 23. Chapter Seven Sales Associates and Brokerage Activities  Know the requirements of a broker’s office  Know the difference between branch office and temporary shelter  Understand advertising regulations  Understand how escrow money is handled  Know how rental lists are handled  Know how an associate changes employers
  24. 24. Chapter Seven Review  Every broker must have an office somewhere  Required information:  Broker/brokerage  Lic. Real Estate Broker  Assoc may be on sign with proper identification  Branch offices are not transferable and registration is good for 2 years Continued
  25. 25. Chapter Seven Review  Construction trailer is “temporary shelter”  Broker ultimately responsible for all advertising  Ad without brokerage is “blind ad”  Fed “No Solicitation” prohibits cold calling FSBOs  Immediate means 3-business days to deliver EMD to escrow account Continued
  26. 26. Chapter Seven Review  Settlement Procedures for Conflicting Demands: mediation, arbitration, litigation, and Escrow Disbursement order  10 day to notify FREC of resolution  Rental Information Lists: info correct 75% refund, info incorrect 100% refund when demand is made within 30 days  General Partnerships: 2 or more persons, 1 active broker, associates cannot be GPs  Corporations: 1 active broker, associates cannot be officers or directors but can be stockholders
  27. 27. Chapter Eight Agency Laws  Understand provisions in Florida’s Agency Laws  Know the differences between the 3 types of agency relationships  Know the disclosure procedures required by law  Understand how to transition from a single agency to a transaction broker  Know how agency relationships are terminated
  28. 28. Chapter Eight Review  Dual agency repealed  Single Agency:  Full fiduciary  Work with either buyer or seller  Disclose prior to showing or prior to contract whichever comes 1st  Transaction Broker:  Limited obligations  Work with both buyer and seller  No disclosure required (presumed to be transaction broker) Continued
  29. 29. Chapter Eight Review  No Brokerage (Non-Rep):  No skill, care, and diligence  Minimum obligations  Disclose prior to showing  Transition to Transaction Broker:  Must be signed by client
  30. 30. Chapter Nine The Real Estate Market  Know the physical characteristics of real estate  Understand how supply and demand affect price  Know the difference between Buyers market and Sellers market
  31. 31. Chapter Nine Review  Physical characteristics are:  Immobile  Heterogeneous  indestructible  Situs is the uniqueness of location combined with immobility  Sellers vs Buyers markets: who ever is in the minority Continued
  32. 32. Chapter Nine Review  Demand:  People wanting housing  Price goes up, demand goes down  Supply:  Product on the market  Material prices go up, prices of housing goes up
  33. 33. Chapter Ten Residential Product Knowledge  Understand the various building codes  Know the different types of lots  Know the different types of roofs  Know the different types of windows  Understand who needs a contractors license  Understand the various environmental hazards in real estate
  34. 34. Chapter Ten Review  Building Codes are local in nature  Contractor’s license are obtained through the DBPR  A Key Lot is one that is better than adjacent lots and generally more expensive  A gable roof has 2 sloping sides where a hip roof has 4 sloping sides  The strength of insulation is defines by it’s “R” value  Environment hazards include asbestos, radon gas, lead paint, and urea formaldehyde
  35. 35. Chapter Eleven Real Estate Appraisal  Know Federal & State regulations regarding appraising  Understand market value  Distinguish among cost, price, and value  Know the 3 approaches to value  Understand how to prepare a CMA
  36. 36. Chapter Eleven Review  Appraisals can only be done by individuals that are State Certified  Real estate licensees can prepare Comparative Market Analysis  Market value is what the normal buyer under normal conditions would pay for a property  Cost, Price, Value may or may not be the same  Use that causes the greats value is highest and best use Continued
  37. 37. Chapter Eleven Review  Comparable sales approach: Robin Hood  Cost depreciation approach: special purpose buildings  Income approach: income div by rate = value (anticipation)  Assemblage is combining and Plottage is the increase in value  Comparative Market Analysis:  Sold  Currently on market  Expired
  38. 38. Chapter Twelve Investment & Business Opportunity  Know the advantages and disadvantages in buying investment real estate  Understand risks as they relate to returns  Know the difference between real estate brokers and business brokers
  39. 39. Chapter Twelve Review  Advantages:  Good return  Tax advantages  Leverage  Equity build-up  Disadvantages:  Illiquidity  Management expense Continued
  40. 40. Chapter Twelve Review  Risk:  Business risk: income lower than expenses  Financial risk: no funds available  Business Brokers must understand financial data  Liquidation Value Approach is unique to business appraisals
  41. 41. Chapter Thirteen Real Estate Taxes  Distinguish among immune, exempt, and partial exempt properties  Know how property taxes a formulated  Know how to appeal tax bills  Know how to calculate special assessments  Know how to calculate taxable income  Distinguish between installment sales and like-kind exchanges
  42. 42. Chapter Thirteen Review  Ad Valorem taxes are real estate taxes calculated in millage  Government properties are immune  Churches & non-profit properties are exempt  Homestead is partially exempt  Greenbelt laws favor agricultural properties with lower assessed value  Non-payment of property taxes cause tax certificate sale  Bidding starts at 18% and bids down  After 2 years holder of certificate can request tax deed through foreclosure Continued
  43. 43. Chapter Thirteen Review  Taxable Income:  Net Income  +Reserves  -Interest  -Depreciation  = Taxable Income  Like-kind exchanges and installment sales defers taxes
  44. 44. Chapter Fourteen Real Estate Contracts  Know the essentials of a contract  Distinguish among the various types of contracts  Know how contracts can be terminated  Know the remedies to a breached contract  Understand what the Statute of Frauds is  Know what disclosures are required
  45. 45. Chapter Fourteen Review  The Statute of Frauds require certain contracts to be in writing to be enforceable  The Partial Performance Doctrine an oral real estate contract to be enforceable part of the purchase price is paid and the buyer is allowed to move in and/or begin renovations  Contracting persons should be 18 years of age and mentally competent Continued
  46. 46. Chapter Fourteen Review  Contracts with minors are voidable  Must have offer, acceptance, a communication back  Breach of contract can be remedied by:  Liquidated damages give the seller  Specific performance  Unliquidated damages Continued
  47. 47. Chapter Fourteen Review  Listing contracts:  Open listing  Exclusive listing  Exclusive right to sell (best)  Net listing (can’t gouge seller)  Sales and Purchase Agreement  Seller has legal title up to closing  Buyer has equitable title up to closing  Required disclosures:  Radon gas  Lead based paint for homes built prior to 1978  Option Contracts are unilateral
  48. 48. Chapter Fifteen Real Estate Finance  Distinguish between lien and title theory  Distinguish between notes and mortgages  Know the components of a note and mortgage  Understand the foreclosure process  Be able to calculate the loan to value ratio  Know how to calculate discount points  Distinguish between “assumption of” and “subject to”
  49. 49. Chapter Fifteen Review  Lien theory: property owner has title while bank has mortgage. Title theory bank has title to loan is paid  Mortgagor is borrower, mortgagee is bank  Note is an I.O.U. and not recorded  Mortgage is security instrument and is recorded  LTV is the loan amount as it relates to the value expressed as a percentage Continued
  50. 50. Chapter Fifteen Review  Discount points are pre-paid interest. Increases lenders yield 1/8% for each point charged  “Assumption of” a mortgage buyer signs new note  “Subject to” a mortgage buyer does not sign new note  First step in a foreclosure is filing a Lis Pendens  Equity of Redemption is the right the owner has to pay off the loan and prevent the foreclosure
  51. 51. Chapter Sixteen Sources of Mortgage Money  Know the components of the Adjustable Rate Mortgage  Understand the amortization process  Distinguish among the different types of mortgages  Understand the underwriting process  Understand the secondary mortgage market  Know Federal laws that regulates the financial market
  52. 52. Chapter Sixteen Review  Amortization is payments of principal and interest. More interest than principal but changes each payment  Adjustable Rate Mortgage consists of an index (which changes) and margin (fixed)  Blanket mortgage covers more than on parcel of real estate and needs release provisions to sell individual lots  FHA is an insurance with underwriting guidelines of 31%mortgage payment and 43% total bills  VA is a guarantee based on loan amount Continued
  53. 53. Chapter Sixteen Review  Convention mortgages require private mortgage insurance on the portion of the loan greater than 80%  Banks are considered intermediaries because of savings and checking accounts  Open market operations is the most effective method the FEDs have to influence interest rates  FNMA was created to purchase the FHA mortgage Continued
  54. 54. Chapter Sixteen Review  Real Estate Settlement Procedures Act  Information booklet within 3 days of app  Good-faith estimate of closing cost within 3 days of app  HUD-1 Settlement Statement no later than closing. Borrower has the right to at lease one day prior to closing to review statement  Applies to federally related residential loans only
  55. 55. Chapter Seventeen Real Estate Closings  Know how to calculate sales commissions  Know how to calculate:  Doc stamps on deed  Doc stamps on note(s)  Intangible tax on new mortgages  Understand how to prorate items  Understand who pay closing costs and how that is determined
  56. 56. Chapter Seventeen Review  Debits: money owed  Credits: money received  Prorations are items shared  Expenses are monies owed outside closing  Doc stamp on deed: $0.70/per $100  Doc stamp on note: $0.35/per $100  Intangible tax: $0.002 x new mortgage  Mortgages are always debits to sellers and credits to buyers
  57. 57. Chapter Eighteen Planning and Zoning  Understand the authority of the Planning Commission  Understand Florida’s Comprehensive Plan and Growth Management Act  Know how Concurrency Rules affect future developments  Distinguish among the various zoning ordinances  Distinguish between a variance and special exception  Know the important features of a Planned Unit Development
  58. 58. Chapter Eighteen Review  The planning commission is appointed by government leaders and made up of ordinary citizens. They have a professional staff  Concurrency rules require the infrastructure to be part of the development plan  Residential zoning: density  Commercial zoning: intensity  Variance: relief in zoning  Special exception: new zoning for specific use  PUDs incorporate commercial, residential and other mixed uses
  59. 59. Chapter Nineteen State & Fed Real Estate Laws  Understand the 1968 Fair Housing Act  Know the significance of Jones vs. Mayer  Understand HUD’s role in the Fair Housing Act  Understand the Landlord/Tenant Act  Know the provisions of Florida’s Uniform Land Sales Practice Act
  60. 60. Chapter Nineteen Review  1968 Fair Housing Act prohibits discrimination based on race, color, religion, sex, national origin, familial status, or handicap status  Jones vs Mayer confirmed validity of 1866 Civil Rights Law  Steering: directing persons to or from  Blockbusting: inducing persons to sell Continued
  61. 61. Chapter Nineteen Review  Landlord/Tenant Act allows landlords to co- mingle deposits into person accounts:  Pay tenant 5% for use  Place surity bond in the amount of deposit with clerk of courts  Florida Uniform Land Sales Practice Act requires subdividers sell 50 lots or more to provide buyer with public offering statement giving 7 days to rescind
  62. 62. Chapter Twenty Violations, Penalties, & procedures  Know how a complaint is filed  Understand the disciplinary process  Know what penalties can be imposed by FREC  Know what penalties can be imposed by state attorney  Understand how the recovery fund operates  Distinguish a 1st degree from a 2nd degree misdemeanor
  63. 63. Chapter Twenty Review  The complaint must be legally sufficient  The investigation is a gathering of facts  Chairperson of FREC appoints 2 members for probable cause panel  Formal Complaint is outline of legal charges with 20 days to respond Continued
  64. 64. Chapter Twenty Review  A hearing can be formal or informal  Recommended Order by ALJ with 10 days to challenge  Final Order handed down by FREC with 30 days to appeal to DCA  Notice of Non-compliance is minor infraction with 15 days to correct Continued
  65. 65. Chapter Twenty Review  FREC can:  Suspend up to 10 yrs; fine up to $5,000; revoke license  State Attorney can:  Fine and/or incarcerate (violations are criminal)  1st degree misdemeanor up to $1,000 fine and/or 1 year in jail  2nd degree misdemeanor up to $500 fine and/or 60 days in jail  Recovery Fund:  $50,000 single judgment  $150,000 for multiple judgments
  66. 66. Chapter Twenty-One Math  Common areas: acres in subdivision, number of offices in a building  Cost-depreciation in appraising  Income approach: Uncle IRV  Gross rent multiplier: VRM  Percentage of profit: Made over Paid Continued
  67. 67. Chapter Twenty One Review  Loan amortization  Calculate commission  Pro-ration: taxes and rent  Closing calculations: doc deed, doc note, intangible  Underwriting: Housing expense ratio  Cost per acre and cost per front foot  Legal description: calculate sub-sections

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