Contact Info Matt@ProfWest.com 407-925-8261 Cell 407-678-9111 Work http://www.ProfWest.com
Estates and Tenancies:Freehold • Estate—the degree, quantity, nature, and extent of the bundle of rights • Freehold estate - an indefinite period • Fee simple – most comprehensive—can be inherited (also, fee, fee simple absolute) • Life estate - measured by a lifetime • Estate in reversion • Remainder estate owned by remainderman
Homestead Ch. 196, F.S. • Constitutional Homestead • Protection of the homestead • Tax exemption • Size restriction (160 acres or ½ acre) • Protection of the family • Elective share (30% of estate) • Exempt property (furniture, appliances, etc. up to $10,000, plus autos)
Severalty and Co-ownership • Severalty—one owner • Co-ownership—co-owners or concurrent owners • Tenancy in common • Joint tenancy • Tenancy by the entireties
Tenancy in Common • Any number of people • Equal or unequal shares (undivided) • Same or different times • Heirs inherit (No Right of Survivorship)
Joint Tenancy with Right of Survivorship • Right of survivorship—as co-owners die, interests go to the surviving co-owner(s), not to the heirs • Four unities • Possession—undivided • Interest—equal • Title—acquire title on same deed • Time—acquire interests at same time • Specific wording must provide for survivorship
Tenancy by the Entireties • Husband and wife • Co-owners must be married to each other at the time they take title • Four unities of a joint tenancy must exist • Right of survivorship
Nonfreehold Estate • Leasehold estate (tenancy)—measured in calendar time • Estate for years • Definite termination date • Created with an executed lease agreement • Tenancy at will (tenancy without specific term) • Tenancy at sufferance (tenant “holds over”)
Cooperative Ch. 719, F.S. • Characteristics • Corporation holds title • Owners purchase shares of stock • Property taxes assessed on each parcel • Owners can deduct real estate taxes and mortgage interest • Proprietary lease and right to occupy • Sell stock to a board-approved buyer or back to the corporation
Condominium Ch. 718, F.S. • Condo documents • Declaration • Bylaws • Survey (Map) • Conveyance • Question and Answer Sheet to buyers • Operating budget, fees, agreement for resale of a unit • Disclosure statement • Developer must give 15 days to cancel • 3 business days to cancel resale
Time-Sharing Ch. 721, F.S. • Units are divided into time segments of ownership, usually 52 weeks • Deeds are prepared for each ownership segment • Developer disclosure—10 days to cancel • Time-share ownership • Interval ownership—fee simple ownership • Right-to-use—leasehold interest
Mortgage Broker • Statutory definition • Natural person • 18 years of age • Application • 75 on mortgage broker state exam • 24 hours of classroom education. • Fingerprints
Mortgage Brokerage Business • Statutory definition • Unlicensed owner, CEO, or director • Acting like a broker • Does not make, close, commit, or service • No net worth requirement
Mortgage Brokerage Business • Commitments and lock in rates • good faith estimate • Principal Broker • One Year Requirement • Two year period • Six month inactive
Correspondent Lender • Statutory definition—Must be Formed Entity • August 31 of even numbered years • Inactive status for six month • net worth of $25,000 • $10,000 surety bond • Service mortgage loans for 4 months • Institutional Investors only
Mortgage Lender • Statutory definition—Must be Formed Entity • August 31 of even numbered years • Inactive status for six months • net worth of $250,000 • $10,000 surety bond • Service mortgage loans indefinitely • Institutional or Noninstitutional Investors
You can always work down the chain(Never Up) • Mortgage Lender | • Correspondent Lender | • Mortgage Brokerage Business
DFS Definition of Immediately Seven Business Days
Rules • Brokerage & Lending Transaction Journal • name, application date, disposition, and lender • Multiple Interests • Usury • High cost” • The APR exceeds by more than 8% • Points + fees payable exceed both 8% and $499
Rules • Investigation & Punishments • Pattern of misconduct • Subpoena duces tecum • non-mortgage related conviction = Restoration of Rights • mortgage-related conviction (Restoration + Rehabilitation)
Prohibited Practices • Advertising – 3 types of fraud • Federal government affiliation • Act as a licensee without a license • 3 types of Fraud • Net Worth Issues
The ABC’s of Record Keeping • Advertising 2 years • Books, accounts, records 3 years • Continuing education 4 years
Two Types of R E Licenses • Broker • A person who, for another and for compensation, performs real estate services • Sales associate • A person who performs real estate services under the direction, control, or management of another person • Broker Associate • A person who is broker-qualified but who desires to work under the direction of another broker is referred to as a broker-associate.
Sales Associate Education Requirements • Complete FREC Course I • 60 hours of instruction • 3 hours end-of-course exam • Passing score of at least 70 • State-administered Sales Associate Exam • Passing score of at least 75
General License Provisions (Go ahead—look at the outline) • Age • High school diploma or its equivalent • Honest, trustworthy • Disclose if convicted of crime or ever entered plea of nolo contendere • Disclose if ever declared mentally incompetent • Aliases-A/K/A • Disclose if denied, or had a license suspended or revoked in another state • Denied license or registration to practice a regulated profession • Guilty of any conduct or practice that would have been grounds for suspension or revocation under F.S. 475
Registered Trainee Appraiser • Successfully complete 100 classroom hours of Board-approved courses covering the topics required by the FREAB in subjects related to real estate appraisal. • Submit a completed application, electronic fingerprinting, and appropriate fee. • Submit a completed RE 2060-1 form with employment information.
Certified Residential Appraiser • Successfully complete 120 classroom hours of Board-approved courses with at least 15 hours of USPAP. • Submit a completed application, electronic fingerprinting, and appropriate fee. • Provide evidence of 2,500 hours of real property appraisal experience obtained over a 24-month period in real property appraisal by furnishing under oath a detailed statement of the experience for each year of experience claimed. • Pass the Florida Certified Residential Appraiser examination with a 75. • Submit a completed RE 2060-1 form with employment information.
Certified General Appraiser • Successfully complete 180 classroom hours of Board-approved courses with at least 15 hours of USPAP. • Submit a completed application, electronic fingerprinting, and appropriate fee. • Provide evidence of 3,000 hours of real property appraisal experience obtained over a 30-month period in real property appraisal by furnishing under oath a detailed statement of the experience for each year of experience claimed. At least 50% (1,500 hours) of the claimed experience must be in nonresidential appraisal work. • Pass the Florida Certified General Appraiser examination with a 75. • Submit a completed RE 2060-1 form with employment information.
Appraiser Instructor • Hold a License. • Pass the Appraiser Instructor Examination with a 75. • Submit a completed RE 2060-1 form with employment information.
Inspectors • There is no License • Certification possible • ASHI • NAHI
Metes-and-Bounds Descriptions • Metes refers to distance • Bounds refers to direction • Point of beginning • Starting reference point, POB, and then calls each boundary line in succession until the last boundary closes the parcel by returning to the POB • The POB should be a permanent marker located at one of the property corners and tied in, or referenced to a permanent monument
Government Survey System • Used in Florida but not the original 13 states • Also not used in Tennessee, Kentucky, West Virginia and Texas • 36 Principal meridians and base lines • Checks • Guide meridians and correction lines • Used to correct for earth’s curvature • 24 miles square
Range and Tiers • Range lines every six miles parallel to the principal meridian • North-south strip called range • Township lines every six miles parallel to the base line • East-west strip called tier or township • Six-mile-square called a township
Sections • Each township contains 36 sections • Numbering of sections within a township • Section, township and range • Locating sections • Subdividing sections • Calculating size
Lot and Block Numbers • Description by recorded plat • Blocks divided into lots • Lot divisions and street locations • Dedication of streets and parks • Dimensions of lots • Location of fixed monuments • Referenced to government survey system • Recorded by book and page number
Hazard Insurance • Home Owner's • Indemnifies loss resulting from physical damage to the property • Anti-coercion statement • Lender’s loss payable endorsement • $1,000 or 1% of face amount of policy.
Title Insurance Qualifications Ch. 626, F.S. • There is no License • Attorney can give “Opinion of Title” • An underwriter • The Statutes