Florida Real Estate Law: Key Points and Concepts

Florida Real Estate Commission (FREC)

• Purpose: Enforce real estate law and regulations (
• Ensures compliance with state laws.

Real Estate Practices

• Blockbusting: Illegal act of persuading owners to sell property cheaply by instilling fear of another racial or ethnic group moving in (
• Transaction Broker: Provides limited representation to both parties (

Florida Property Laws

• Homestead Exemption: Protection from certain types of creditors, not all taxes waived (
• Legal Description of Property: Detailed, using boundaries, measurements (

Handling Client Funds

• Deposits must be put into an escrow account timely (

Advertising Regulations

• Florida Deceptive and Unfair Trade Practices Act: Prohibits false advertising (

Deed Types

• General Warranty Deed: Guarantees property title (
• Quitclaim Deed: No title guarantees (

Flood Zone Disclosures

• Must disclose past flood damage and flood zone designation (

Real Estate Licenses

• Requirements for obtaining broker license: State-approved education, pass state exam (

Fiduciary Duties

• Ensure fair, honest treatment for both parties (

Ownership Types

• Tenancy by the Entirety: For married couples, joint tenancy with right of survivorship (
• Joint Tenancy: Right of survivorship preferred (

Real Estate Regulations

• RESPA: Disclosure of settlement services costs (

Property Issues and Disclosures

• Sinkhole Issues: Must disclose, legal recourse for buyers (
• Termite Infestation: Must disclose (

Americans with Disabilities Act (ADA)

• Prohibit housing discrimination based on disability (

Water Rights

• Riparian Rights: Use and enjoyment of waters adjacent to property (

Adverse Possession

• Acquiring title through open, notorious, continuous possession (

Conflict of Interest

• Legal action and license suspension for nondisclosure (

Fair Housing Act

• Prohibits discrimination based on race, color, religion, sex, national origin, familial status, or disability (

Escrow Accounts

• Temporary account for transaction-related funds (
• Reflects broker's fiduciary duties (

Dual Agency

• Without informed consent, it can lead to fines and license issues (

Wind Mitigation Inspections

• Optional, often recommended, not mandatory (
• Provides info about wind damage resistance (

Eviction Types

• Actual Eviction: Legal court proceedings (
• Constructive Eviction: Tenant leaves property due to uninhabitable conditions (

National Association of Realtors (NAR)

• Provides educational resources, upholds ethical standards (

Unpermitted Additions

• Must disclose existence (

Lead-based Paint

• Disclosure required for homes built before 1978 (

1031 Exchange

• Defers capital gains taxes, exchange investment properties (

Truth in Lending Act

• Full disclosure of lending terms required (

Market Agreements

• Right of first refusal gives tenants first chance to purchase property (

Broker Duties

• Represent both buyers and sellers fairly and honestly (

Environmental Regulations

• Wetlands regulations restrict development to protect the environment (

Real Estate License Maintenance

• Requires continuing education and periodic renewal (

Agent Certifications

• Florida Green Building Coalition offers green certifications for sustainable buildings (

Historical Properties

• Must consider restrictions on renovations and alterations in historical districts (

Mortgage Rules

• Due-on-sale clause requires mortgage to be paid in full at sale (

Types of Property

• Real Property: Land and buildings (
• Personal Property: Movable items (

Energy Efficiency

• Florida law mandates disclosure of energy efficiency rating (

Constructive Notice

• Information presumed provided through public records (

Environmental Sustainability

• Recent updates focus on energy efficiency, water conservation, sustainable materials (

Fair Housing Protections

• Florida Civil Rights Act adds protections against discrimination based on age and marital status (

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