1. Sales Associate
Pre-license Workshop

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. 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. Getting a License
Application through State
www.MyFloridaLicense.com
Fingerprinting required
www.pearsonvue.com
1-877-238-8232

5. Getting Started
The Course
Internet based approved by FREC
Corresponding Textbook
Live Workshop

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. Textbook
 Corresponding Textbook
 Approved by FREC
 Contains answer key

8. Live Workshop
Not required, tutorial only
Great Review
Q & A
No test

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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. Chapter Twelve Review
 Advantages:
 Good return
 Tax advantages
 Leverage
 Equity build-up
 Disadvantages:
 Illiquidity
 Management expense
Continued

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. 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. 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. Chapter Thirteen Review
 Taxable Income:
 Net Income
 +Reserves
 -Interest
 -Depreciation
 = Taxable Income
 Like-kind exchanges and installment sales
defers taxes

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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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