FREC I - SALES ASSOCIATE PRE-LICENSING COURSE
CLASS SYLLABUS

Course Title: FREC I Pre-License Sales Associate's Course
Text Book Title: Florida Real Estate Principles, Practices & Law
(Dearborn Real Estate Education)
Course Hours: 63 Total (60 classroom and 3 class exam)

Chapter 1 The Real Estate Business 3 class hrs.

Learning Objectives:

The purpose of this chapter is to introduce the reader to the real estate business. Real Estate brokerage and development and construction activities are discussed.

Once completing this chapter, a student should be able to:

a. Define farm area;
b. Identify reasons why property management has grown in importance;
c. Define absentee owner;
d. Define residential real estate;
e. Describe the appraisal process;
f. Identify the reasons for the method of compensation for appraisal services; and
g. Distinguish among the three categories of residential construction.

Chapter 2 License Law and Qualifications for Licensure 3 class hrs.

Learning Objectives:

The purpose of this chapter is to give the reader a historical perspective of real estate license law in Florida and to describe in detail the requirements for obtaining a real estate license. Real estate services that require a license are discussed and exemptions from licensure are identified.

Once completing this chapter, a student should be able to:

a. Define Sales Associate, broker-Associate, and broker;
b. List the academic requirements for Sales Associate and broker licenses;
c. List the application requirements for Sales Associate and broker licenses;
d. Identify services of real estate requiring licensure:
e. Recognize exemptions from licensure; and
f. Distinguish between post-licensing education and continuing education.

Chapter 3 License Law and Administration 3 class hrs.

Learning Objectives:

The purpose of this chapter is to discuss in detail the Florida Real Estate Commission and its composition and powers. An explanation of license requirements, including active and inactive status, license activation, and void and ineffective licenses, is also presented.

Once completing this chapter, a student should be able to:

a. Describe the composition and member qualifications of the Florida Real Estate Commission;
b. Explain how members of the Commission are appointed;
c. Distinguish between active and inactive license status;
d. Explain the purpose of multiple and group licenses;
e. Distinguish between void licenses and ineffective licenses;
f. Identify situations that cause a license to cease to be in force; and
g. Identify situations that cause a license to be canceled.

Chapter 4 Agency and Ethics 3 class hrs.

Learning Objectives:

This chapter begins with a general explanation of the law of agency and then details the various types of agency and nonagency relationships practiced in Florida. The licensee's duties and obligations to principals and customers are also explained. The terms misrepresentation and fraud are defined, and the activities that are considered fraudulent are discussed. The chapter concludes with a section regarding professional ethics.

Once completing this chapter, a student should be able to:

a. Distinguish between the terms general agent and special agent;
b. Describe which provisions apply only to residential real estate sales;
c. Describe the purpose and requirements of the No Brokerage Relationship Notice;
d. List the no brokerage relationship duties;
e. Describe the duties and disclosure requirements that single agents have to their principals;
f. Define dual agent;
g. Describe the duties and disclosure requirements of a transaction broker;
h. Describe the process of transition from a single agent to a transaction broker;
i. Identify actions that will terminate an agency; and
j. Recognize activities that are considered to be fraudulent.

Chapter 5 Real Estate Brokerage Operations 3 class hrs.

Learning Objectives:

This chapter concerns the day-to-day operations of a real estate office.

Once completing this chapter, a student should be able to:

a. Identify the requirements for broker's office(s);
b. Explain what determines whether a temporary shelter must be registered as a branch office;
c. List the requirements related to sign regulation;
d. List the requirements related to the regulation of advertising by real estate licensees;
e. Explain the term immediately as it applies to earnest money deposits;
f. Describe the four settlement procedures available to a broker who has received conflicting demands or has a good-faith doubt as to who is entitled to disputed funds;
g. List the rule requirements for the handling of advance fees;
h. Explain the rule regarding the advertisement of rental property information or lists or negotiation of rentals;
i. Describe the obligations placed on a Sales Associate who changes employers; and
j. Contrast the features of the various types of business organizations.

Chapter 6 Complaints, Violations, and Penalties 3 class hrs.

Learning Objectives:

This chapter details the step-by-step procedures for investigations and hearings via the complaint process. Many types of violations of the laws and rules governing real estate activities are presented, and the possible consequences that may result are discussed. Finally, the Real Estate Recovery Fund is explained regarding its function when damages are suffered in a real estate transaction owing to a wrongful act of a Florida Licensee.

Once completing this chapter, a student should be able to:

a. Explain the procedures involved in the reporting of violations, the investigation of complaints, and the conduct of hearings;
b. Describe the elements of a valid complain;
c. Describe the composition of the probable-cause panel;
d. Describe events that would cause a license to be denied;
e. Recognize actions that would cause a license to be subject to suspension or revocation;
f. Identify individuals who would be eligible to seek reimbursement from the Real Estate Recovery Fund; and
g. Describe the monetary limits imposed by law on the Real Estate Recovery Fund.

Chapter 7 Federal and State Housing Laws 3 class hrs.

Learning Objectives:

For many families the purchase of a home is the largest single investment they will make during their lifetimes. The federal government and all state governments have enacted laws to ensure that the public interest in real estate is adequately protected. This chapter highlights some of the laws most important to Florida real estate practitioners. Licensees should study these laws to make certain they comply with the laws to better serve the public.

Once completing this chapter, a student should be able to:

a. Describe the features of the Civil Rights Acts of 1866 and 1968;
b. Recognize examples of steering, redlining, and blockbusting;
c. Describe the features of the Truth-In-Lending Act, the Equal Credit Opportunity Act, and the Real Estate Settlement Procedures Act; and
d. Describe the provisions of the Florida Residential Landlord and Tenant Act.

Chapter 8 Property Rights: Estates, Tenancies, and
Multiple Owner Interests 3 class hrs.

Learning Objectives:

This chapter begins with a description of the physical components of real property. Various types of estates and the rights that are included in each type of real estate are discussed. Multiple ownership interests also are described. Special ownership interests, including the constitutional homestead, are discussed. The chapter concludes with a thorough presentation of cooperatives, condominiums, and time-shares.

Once completing this chapter, a student should be able to:

a. Define real property based on the definition in Chapter 475, F.S.;
b. List and explain the physical components of real property;
c. Explain the four tests courts used to determine if an item is a fixture;
d. Distinguish between real and personal property;
e. Describe the bundle of rights associated with real property ownership;
f. List the principle types of estates (tenancies) and describe their characteristics;
g. Describe the features associated with the Florida Homestead law;
h. Distinguish between cooperatives, condominiums, and time-shares; and
i. Describe the four main documents associated with condominiums.

Chapter 9 Titles, Deeds, and Ownership Restrictions 3 class hrs.

Learning Objectives:

This chapter concerns the legal instruments and methods used to transfer title to real property. Additional concepts regarding title to real property that are discussed include voluntary and involuntary alienation, title insurance, the two types of notice to title, the essential elements of a valid instrument of conveyance, and certain covenants found in deeds. Governmental and private restrictions on ownership also are discussed.

Once completing this chapter, a student should be able to:

a. Differentiate between voluntary and involuntary alienation;
b. Explain the various methods of acquiring title to real property;
c. Describe the conditions necessary to acquire real property by adverse possession;
d. List and describe the various types of governmental and private restrictions of real property;
e. Distinguish between actual notice and constructive notice;
f. Distinguish between an abstract of title and a chain of title;
g. Explain the different types of title insurance;
h. Describe the essential elements of a deed; and
i. List and describe the four types of statutory deeds.

Chapter 10 Legal Description 3 class hrs.

Learning Objectives:

This chapter introduces the various methods used to locate and describe real property. Basic to the real estate business is a working knowledge of legal land descriptions (often shortened by practitioners to legals). Unless property can be located accurately, the best of contracts and combined efforts of the most knowledgeable brokers in the world will be defeated. Purchasers (and title companies and lenders, if applicable) want to be certain of the exact location, size, and shape of the property to be conveyed. In addition, once a property has been located accurately, that particular parcel must then be described to prepare deeds, mortgages, and other instruments affecting transfer of ownership.

Once completing this chapter, a student should be able to:

a. Explain the necessity for legal land descriptions;
b. List and explain the various methods of describing real property;
c. Calculate the number of acres in a parcel described by the government survey system;
d. Identify the location of a township by township and range number; and
e. Number the sections of a township.

Chapter 11 Real Estate Contracts 3 class hrs.

Learning Objectives:

Nearly every business transaction is based on a contract. Many definitions of a contract have been advanced through he years. Common to all contracts in the promise: In a real estate contract, the seller promises to convey title to the real estate and the buyer promises to pay the purchase price. Another significant feature of contracts is that the promises are enforceable by law, provided the contract meets certain requirements. A contract is the legal relationship in terms of the rights and duties of the contracting parties.

Once completing this chapter, a student should be able to:

a. List and describe the essentials of a real estate contract;
b. Describe the differences between formal contracts and parol contracts;
c. Distinguish among bilateral, unilateral, implied, express, executory, and executed contracts;
d. Describe the various ways in which an offer is terminated;
e. Describe the various methods of terminating a contract;
f. Explain the remedies for breach of a contract;
g. Describe the effect of the statute of frauds and the statute of limitations;
h. Describe the elements of an option; and
i. Differentiate among the various types of listings.

Chapter 12 Real Estate Finance 3 class hrs.

Learning Objectives:

Because almost every real property transaction involves some type of financing, understanding this aspect of the business is critical to the real estate licensee. Fluctuating interest rates, deregulation of financial institutions, and varying rates of inflation have in the past created shock waves among institutional lenders and mortgage specialists. As a result, new practices and variations of former lending procedures evolved. Licensees must keep current in the real estate finance area.

Once completing this chapter, a student should be able to:

a. Distinguish between title theory and lien theory doctrines;
b. Distinguish between the mortgage instrument and the note;
c. Explain the provisions of the various mortgage clauses;
d. Differentiate among FHA, VA, and conventional mortgages;
e. Describe the features of amortized, adjustable, package, and purchase-money mortgages;
f. Explain the purpose of an estoppel certificate;
g. Calculate the loan-to-value (LTV) ratio, given the purchase price and down payment amounts; and
h. Calculate the down payment, given the purchase price and LTV ratio.

Chapter 13 The Mortgage Market 3 class hrs.

Learning Objectives:

This chapter discusses the money supply; primary and secondary markets; the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA); and potential borrowers. The very strong thread that connects all of these individuals, institutions, and agencies is money, in the form of mortgage loans. The total amount of existing mortgages is estimated to be more than $3 trillion! Compare this amount with the federal debt (nearly $5 trillion), and you begin to appreciate the amount of money invested in mortgages! The professional real estate person must be familiar with the institutional lending picture to advise and assist potential borrowers in their search for a loan.

Once completing this chapter, a student should be able to:

a. Distinguish between factors that influence the supply and demand for mortgage funds;
b. Distinguish between the primary and secondary markets;
c. Distinguish between commercial banks, savings associations, mutual savings banks, and life insurance companies;
d. Distinguish between a mortgage banker and a mortgage broker;
e. Describe the three methods the Fed uses to control the supply of money in circulation;
f. Describe the function of Fannie Mae, Ginnie Mae, and Freddie Mac; and
g. Calculate the cost of discount points and the approximate yield resulting from discounts.

Chapter 14 Computations and Title Closing 3 class hrs.

Learning Objectives:

Real estate brokers and Sales Associates must understand closing statements and should be capable of computing the various simple arithmetic problems to be solved in arriving at the figures entered on the closing statements provided to the contracting parties. Many adults have had little or no occasion to work with fractions, decimals, percentages, and the like for years. The first section of this chapter assumes little or no prior knowledge about these subjects and their application.

Once completing this chapter, a student should be able to:

a. Compute a sale commission;
b. Calculate the percent of profit or loss, given the original cost of the investment, the sale price, and the dollar amount of profit or loss;
c. Amortize a level-payment plan mortgage when given the principal amount, the interest rate, and the monthly payment amount;
d. Prorate the buyer's and seller's expenses using either the 30-day-month method or the 365-day method;
e. Calculate the dollar amount of transfer taxes on deeds, mortgages, and notes; and
f. Allocate taxes and fees to the proper parties and compute individual costs.

Chapter 15 Estimating Real Property Value 3 class hrs.

Learning Objectives:

To appraise real property means to estimate its value. Appraising is considered to be an art, not a science, because although the appraisal process involves mathematical calculations, appraisers also use their own judgment when appraising real property. There are many reasons for appraising real property. Local communities hire appraisers to estimate the value of property for assessment of property taxes (Chapter 18) and to determine the amount of compensation in a condemnation proceeding that involves a taking by eminent domain. The most prevalent use of an appraisal, however, is to secure a mortgage to finance the purchase of real property.

Once completing this chapter, a student should be able to:

a. Differentiate among the terms price, cost, and value;
b. Describe the four characteristics of value;
c. Differentiate among the three approaches to estimating the value of real property;
d. Describe the three types of depreciation and recognize examples of each type; and
e. Apply the steps in the various approaches to estimating value when given an appropriate scenario.

Chapter 16 Product Knowledge 3 class hrs.

Learning Objectives:

Real estate professionals should have general product knowledge. Understanding basic construction methods and familiarity with common building materials and techniques are invaluable when working with customers.

Once completing this chapter, a student should be able to:

a. Contrast pier and slab-on-grade foundations;
b. Distinguish among the three types of frame construction;
c. Identify various roof styles;
d. Explain how a basic electrical system works;
e. Describe basic residential plumbing and mechanical systems; and
f. Identify the various window types.

Chapter 17 Real Estate Investment Analysis and
Business Opportunity Brokerage 3 class hrs.

Learning Objectives:

Investors consider different factors in their attempt to achieve various investment objectives according to their individual financial status, income tax bracket, motives for investing, and access to credit. Different types of real estate offer various abilities to meet investor objectives. Experience indicates that investors are motivated by one or a combination of objectives; (1) safety of principal, (2) protection against inflation, (3) liquidity, (4) increased income (current and/or future), and (5) tax advantages.

Once completing this chapter, a student should be able to:

a. Identify the advantages and disadvantages of investing in real estate;
b. Distinguish among the various types of risk;
c. Explain the concepts of liquidity and leverage;
d. Describe the similarities and differences between real estate brokerage and business brokerage;
e. Describe the types of expertise required in business brokerage;
f. Distinguish among the methods of appraising businesses; and
g. Describe the steps in the sale of a business.

Chapter 18 Taxes affecting Real Estate 3 class hrs.

Learning Objectives:

It is important to understand the role each level of government plays in the area of taxes affecting real property. City, county, school board, and numerous special tax districts are empowered to impose taxes directly on real property in Florida as a part of the powers delegated to them by the state government. The U.S. Constitution prohibits the federal government from taxing real property, passing that right on to the state and local governments. Florida is one of the states, however, that does not tax real estate at the state level.

Once completing this chapter, a student should be able to:

a. Distinguish between immune and exempt or partially exempt properties;
b. Calculate the total tax exemptions on a property, given a scenario;
c. Describe the various personal exemptions available to qualified owners of homestead property;
d. Compute the property tax on a specific parcel, given the current tax rates, assessed value, and eligible exemptions;
e. List the steps involved in the tax appeal procedure;
f. Describe the purpose of Florida's Green Belt Law;
g. Calculate the cost of a special assessment, given the conditions and amounts involved; and
h. List tax advantages resulting from home ownership.

Chapter 19 The Real Estate Market 3 class hrs.

Learning Objectives:

The word market has many meanings, depending on usage. It can mean a place where farmers and trades people display their produce and products for buyers. It can mean a place where securities are exchanged, such as the commodities market or the stock market. Regardless of difference in form, the basic principles of market operation hold true for all. A market can function only when sellers and buyers interact. Many markets use intermediaries to facilitate activity between seller and buyer, and the real estate market is one such market.

Once completing this chapter, a student should be able to:

a. List factors that influence supply and demand fro real estate;
b. Describe the five characteristics unique to the real estate market; and
c. Distinguish between buyer's and seller's markets.

Chapter 20 Planning and Zoning 3 class hrs.

Learning Objectives:

In a residential community located in a fashionable area, homes are meticulously landscaped with rose bushes and beautiful fountains. It is a neighborhood of executives and their families. Across the street from one of the fashionable homes is a small candy factory, and farther down the street is a soft-drink bottling company. This is just one example of what happens when community planning and land-use control are absent.

Once completing this chapter, a student should be able to:

a. Distinguish among the six types of background studies;
b. Distinguish among zoning ordinances, building codes, and health ordinances;
c. Explain the purpose of a variance, a special exception, and a nonconforming use;
d. Calculate the number of lots available for development, given the total number of acres contained in a parcel, the percentage of land reserved for streets and other facilities, and the minimum number of square feet per lot; and
e. Describe the characteristics of a planned unit development.

Chapter 21 Case Studies In Real Estate 3 class hrs.

Learning Objectives:

Discussions and questions regarding real-life examples of Florida Real Estate License Law as well as learned principles and practices.

3 hour class test.