© 2009 by South-Western, Cengage Learning

SAMSAMIRLANDERIRLANDER

Chapter 1Chapter 1

Florida Real Estate:Florida Real Estate: Principles, Practices and Principles, Practices and

License LawLicense Law

Chapter 1Chapter 1

The Real Estate BusinessThe Real Estate Business

© 2009 by South-Western, Cengage Learning

© 2009 by South-Western, Cengage Learning

Key TermsKey Terms

Absentee owners

Agricultural/farm area

Appraisal

Brokerage

Commercial transaction

Comparative Market Analysis

Dedication

Plat map of subdivision

Real estate brokerage

Residential transaction

Restrictive covenants

USPAP

© 2009 by South-Western, Cengage Learning

Introduction to the Real Introduction to the Real Estate BusinessEstate Business

Individual housing

Commercial space

Manufacturing space

Institutional needs

© 2009 by South-Western, Cengage Learning

Other Professions that Rely on Other Professions that Rely on the Real Estate Businessthe Real Estate Business

Real estate agent

Attorney

Certified public

account

Title company

Architect/engineer

© 2009 by South-Western, Cengage Learning

Real Estate and the Nation’s Real Estate and the Nation’s EconomyEconomy

Compensation% of sales price

Fee for service

Other valuable

consideration

Must be licensedBroker

Sales Associate

© 2009 by South-Western, Cengage Learning

Real Estate and the Nation’s Real Estate and the Nation’s EconomyEconomy

Florida residential transaction

Transaction broker

No representation / facilitator

Single agentSeller

Buyer

Landlord

Tenant

© 2009 by South-Western, Cengage Learning

Real Estate and the Nation’s Real Estate and the Nation’s EconomyEconomy

Commercial transactionGreater than 4 units

More than 10 acres

Zoning classifications

Residential transaction as defined by lenders

© 2009 by South-Western, Cengage Learning

Brokerage Specialty TypesBrokerage Specialty Types

Single familySingle family

Town homesTown homes

MultifamilyCooperativeCondominiumRental

© 2009 by South-Western, Cengage Learning

Brokerage Specialty TypesBrokerage Specialty Types

OfficeOffice

Retail Retail

Professional/medical

Garage/parking

© 2009 by South-Western, Cengage Learning

Brokerage Specialty TypesBrokerage Specialty Types

Heavy industrialHeavy industrial

Light manufacturingLight manufacturing

Loft / storageLoft / storage

© 2009 by South-Western, Cengage Learning

Brokerage Specialty TypesBrokerage Specialty Types

Flex propertiesFlex properties

© 2009 by South-Western, Cengage Learning

Real Estate BrokerageReal Estate Brokerage

SalesLeasingOwner/

OccupantInvestor

© 2009 by South-Western, Cengage Learning

Real Estate BrokerageReal Estate Brokerage

ResidentialCommercialIndustrialAgriculturalBusiness

Brokerage

© 2009 by South-Western, Cengage Learning

Real Estate BrokerageReal Estate Brokerage

Small firm: 1-5

Boutique: 6 – 19

Mid-size: 20 – 100

Large: 100 +

© 2009 by South-Western, Cengage Learning

Real Estate BrokerageReal Estate Brokerage

Specialty area of expertise

Geographic

Services

© 2009 by South-Western, Cengage Learning

The Sales Process and the Sales The Sales Process and the Sales LicenseeLicensee

Step 1 – Canvassing for Product

Step 2 – Canvassing for the Product Buyer/User

Step 3 – Showing the

Property

© 2009 by South-Western, Cengage Learning

The Sales Process and the Sales The Sales Process and the Sales LicenseeLicensee

Step 4 – Submission and Negotiating of the Offer

Step 5 – Execution of a Sales Contract

Step 6 – Closing of the

Sales Contract

© 2009 by South-Western, Cengage Learning

The Sales Process and the Sales The Sales Process and the Sales LicenseeLicensee

Step 7 – Recording Activities

© 2009 by South-Western, Cengage Learning

Property ManagementProperty Management

Absentee owners

2 Primary functionsOperations

Financial reportingCash flow operations

Compensation

© 2009 by South-Western, Cengage Learning

AppraisalAppraisal

Opinion of value based on facts

USPAP: Uniform Standards of Professional Appraisal Practice

Standards for completing assignments

Federally related

transactions

CMA: Competitive Market Analysis

© 2009 by South-Western, Cengage Learning

Financing and the Real Financing and the Real Property TransactionProperty Transaction

Mortgage Brokers are licensed in Florida

Sales associates should understand the costs

© 2009 by South-Western, Cengage Learning

Development and ConstructionDevelopment and Construction

Subdividing: division and planning

Zoning permits

Plat map

Dedication

Restrictive covenants

© 2009 by South-Western, Cengage Learning

Development and ConstructionDevelopment and Construction

Speculative homes

Tract homes

Custom homes

© 2009 by South-Western, Cengage Learning

Government’s RoleGovernment’s Role

Federal GovernmentInterest rates

Income tax policies

State GovernmentDocumentary stamps on the deed

Documentary stamps on the note

Intangible tax on new mortgage money

© 2009 by South-Western, Cengage Learning

Government’s RoleGovernment’s Role

Local Government

Property tax

Zoning regulations

Building permits

© 2009 by South-Western, Cengage Learning

Professional OrganizationsProfessional Organizations

Seminars

Newsletters

Ethics courses

Continuing education

Lobbying services