1. © 2009 by South-Western, Cengage Learning SAMIRLANDER Chapter 1

2. Florida Real Estate: Principles, Practices and License Law Chapter 1 The Real Estate Business © 2009 by South-Western, Cengage Learning

3. Key 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

4. © 2009 by South-Western, Cengage Learning Introduction to the Real Estate Business Individual housing Commercial space Manufacturing space Institutional needs

5. © 2009 by South-Western, Cengage Learning Other Professions that Rely on the Real Estate Business Real estate agent Attorney Certified public account Title company Architect/engineer

6. © 2009 by South-Western, Cengage Learning Real Estate and the Nation’s Economy Compensation % of sales price Fee for service Other valuable consideration Must be licensed Broker Sales Associate

7. © 2009 by South-Western, Cengage Learning Real Estate and the Nation’s Economy Florida residential transaction Transaction broker No representation / facilitator Single agent Seller Buyer Landlord Tenant

8. © 2009 by South-Western, Cengage Learning Real Estate and the Nation’s Economy Commercial transaction Greater than 4 units More than 10 acres Zoning classifications Residential transaction as defined by lenders

9. © 2009 by South-Western, Cengage Learning Brokerage Specialty Types Single family Town homes Multifamily Cooperative Condominium Rental

10. © 2009 by South-Western, Cengage Learning Brokerage Specialty Types Office Office Retail Retail Professional/medical Garage/parking

11. © 2009 by South-Western, Cengage Learning Brokerage Specialty Types Heavy industrial Heavy industrial Light manufacturing Light manufacturing Loft / storage Loft / storage

12. © 2009 by South-Western, Cengage Learning Brokerage Specialty Types Flex properties Flex properties

13. © 2009 by South-Western, Cengage Learning Real Estate Brokerage Sales Leasing Owner/ Occupant Investor

14. © 2009 by South-Western, Cengage Learning Real Estate Brokerage Residential Commercial Industrial Agricultural Business Brokerage

15. © 2009 by South-Western, Cengage Learning Real Estate Brokerage Small firm: 1-5 Boutique: 6 – 19 Mid-size: 20 – 100 Large: 100 +

16. © 2009 by South-Western, Cengage Learning Real Estate Brokerage Specialty area of expertise Geographic Services

17. © 2009 by South-Western, Cengage Learning The Sales Process and the Sales Licensee Step 1 – Canvassing for Product Step 2 – Canvassing for the Product Buyer/User Step 3 – Showing the Property

18. © 2009 by South-Western, Cengage Learning The Sales Process and the Sales Licensee Step 4 – Submission and Negotiating of the Offer Step 5 – Execution of a Sales Contract Step 6 – Closing of the Sales Contract

19. © 2009 by South-Western, Cengage Learning The Sales Process and the Sales Licensee Step 7 – Recording Activities

20. © 2009 by South-Western, Cengage Learning Property Management Absentee owners 2 Primary functions Operations Financial reporting Cash flow operations Compensation

21. © 2009 by South-Western, Cengage Learning Appraisal Opinion of value based on facts USPAP: Uniform Standards of Professional Appraisal Practice Standards for completing assignments Federally related transactions CMA : Competitive Market Analysis

22. © 2009 by South-Western, Cengage Learning Financing and the Real Property Transaction Mortgage Brokers are licensed in Florida Sales associates should understand the costs

23. © 2009 by South-Western, Cengage Learning Development and Construction Subdividing: division and planning Zoning permits Plat map Dedication Restrictive covenants

24. © 2009 by South-Western, Cengage Learning Development and Construction Speculative homes Tract homes Custom homes

25. © 2009 by South-Western, Cengage Learning Government’s Role Federal Government Interest rates Income tax policies State Government Documentary stamps on the deed Documentary stamps on the note Intangible tax on new mortgage money

26. © 2009 by South-Western, Cengage Learning Government’s Role Local Government Property tax Zoning regulations Building permits

27. © 2009 by South-Western, Cengage Learning Professional Organizations Seminars Newsletters Ethics courses Continuing education Lobbying services