Florida Real Estate Broker's Guide / Edition 1

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Florida Real Estate Broker's Guide is your complete source for broker prelicense education. You'll find all the information you need, with topics that build on the knowledge you've gained during your career.
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Product Details

  • ISBN-13: 9780793160617
  • Publisher: Kaplan Publishing
  • Publication date: 4/15/2003
  • Edition description: Revised
  • Edition number: 1
  • Pages: 600
  • Product dimensions: 8.88 (w) x 10.60 (h) x 1.10 (d)

Table of Contents

Introduction viii
Part I Getting Started in the Real Estate Brokerage Business 1
Chapter 1 Becoming a Licensed Real Estate Broker 3
Key Terms 3
Overview 3
Introduction 4
Requirements for Licensure 4
Postlicensing Education 11
Continuing Education 11
License Renewal 12
Individuals Who Are Exempt From Licensure 16
Summary 18
Review Questions 20
Chapter 2 Opening a Real Estate Office 25
Key Terms 25
Overview 25
Business Structures That May Be Registered as Brokerage Entities 26
Other Business Forms That May Not Register 34
Fictitious Name Act 35
The Real Estate Office 36
Advertising and Self-Promotion 40
Summary 46
Review Questions 47
Chapter 3 Owning, Managing, and Supervising a Real Estate Office 51
Key Terms 51
Overview 51
Developing a Realistic Business Plan 52
Capital and Start-Up Costs 54
Estimating Income and Expenses--Factors to Consider 56
Franchise vs. Independent Firm 62
Tax Considerations 64
Staff and Sales Personnel 66
Summary 79
Review Questions 80
Chapter 4 Escrow Management 85
Key Terms 85
Overview 85
Establishing Escrow Accounts 86
Broker's Records 90
Escrow Disbursement Dispute Process 94
Notification and Settlement Procedure Requirements for Special Types of Properties 99
Summary 100
Review Questions 104
Chapter 5 Office Inspections and the Disciplinary Process 109
Key Terms 109
Overview 109
Division of Real Estate Authority and Responsibility 110
Disciplinary Procedures 111
Summary 123
Review Questions 124
Case Study 127
Part II Valuing Real Property 129
Chapter 6 Overview of Real Estate Valuation 131
Key Terms 131
Overview 131
Introduction to Appraisal 132
Value Definitions For Real Property Appraisal 135
Principles of Value 137
The Appraisal Process 143
Types of Appraisal Reports and Reporting Formats 147
Summary 148
Review Questions 149
Chapter 7 Sales Comparison, Cost Depreciation, and Income Approaches 153
Key Terms 153
Overview 153
Sales Comparison Approach 154
Cost-Depreciation Approach 165
Income-Capitalization Approach 171
Summary 177
Review Questions 178
Chapter 8 Comparative Market Analysis 183
Key Terms 183
Overview 183
Introduction 184
Preparation of a Comparative Market Analysis 184
Case Study--Comparative Market Analysis 189
Summary 192
Review Questions 193
Chapter 9 Basic Business Appraisal 197
Key Terms 197
Overview 197
Fundamentals of Business Appraisal 198
Understanding and Using Financial Statements 200
Valuation Methods 208
Summary 210
Review Questions 211
Case Study 215
Part III Listing and Selling Real Property 217
Chapter 10 Brokerage Relationships 219
Key Terms 219
Overview 219
Law of Agency 220
Agency Relationships in General Business Dealings 220
Brokerage Relationships in Florida 221
Summary 232
Review Questions 238
Chapter 11 Contracts 241
Key Terms 241
Overview 241
Entitlement to Commissions 242
Purchase and Sale Contracts 246
Electronic Signatures in the Global and National Commerce Act 247
Documents Necessary to Prepare the Contract Seller Documents 247
Provisions of Real Estate Contracts 248
Disclosure 261
Other Contracts 265
Summary 267
Review Questions 269
Chapter 12 Financing Real Estate 275
Key Terms 275
Overview 275
Mortgages, Notes, and the Rights and Obligations of the Parties 277
Conventional, FHA, and VA Mortgage Loans 280
Mortgages by Method of Payment 288
Mortgages by Payment or Yield Variability 288
Mortgages by Purpose 291
Other Techniques Used in Financing Real Estate 294
Federal Consumer Protection Legislation 296
Residential Loan Underwriting 300
Summary 307
Review Questions 308
Chapter 13 Closing Real Estate Transactions 313
Key Terms 313
Overview 313
The Broker's Role in Closing 314
Preliminary Steps to a Closing 314
Prorating Procedures 319
Preparation of the Closing Statement 323
Summary 336
Review Questions 337
Chapter 14 Federal Income Tax Laws Affecting Real Estate 341
Key Terms 341
Overview 341
Income Tax Treatment--Principal and Second Homes 342
Special Rules 346
Sale of Principal Residence 347
Income Tax Treatment--Real Estate Investment Operations 349
Tax Incentives For Low-Income Housing 354
Sale of Investment Real Estate 355
Methods of Deferring Taxes Upon Disposition (Special Rules) 356
Summary 361
Review Questions 362
Case Study 366
Part IV Specialties 369
Chapter 15 Investment Real Estate 371
Key Terms 371
Overview 371
Matching Investment Properties with Investor Needs 372
Site Description 374
Structural Characteristics of Income Property Buildings 375
Leases and Lease Terminology 376
Mortgages 380
Investment Analysis 383
Case Study--Timberlane Office Suites 386
Summary 399
Review Questions 400
Chapter 16 Zoning and Planning, Subdividing of Land, and Special Issues 405
Key Terms 405
Overview 405
The Evolution of Land Use Planning in Florida 406
Zoning Regulations 407
Florida Uniform Land Sales Practices Law 410
Federal Laws Regarding Land Use 413
Summary 413
Review Questions 414
Chapter 17 Environmental Concerns Affecting Real Estate Transactions 417
Key Terms 417
Overview 417
Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) 418
Asbestos 422
Radon 423
Lead-Based Paint 425
Summary 430
Review Questions 431
Chapter 18 Property Management 435
Key Terms 435
Overview 435
Introduction 436
Property Management Markets 438
Skills Required of a Property Manager 440
The Rental Process 440
The Lease Agreement 446
The Owner-Manager Relationship 452
Staffing and Employee Relations 453
Applicable Federal and State Laws 454
Summary 457
Review Questions 459
Practice Final Exam 467
Appendix 489
Glossary 502
Index 513
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