You need to know – Who needs a real estate license in Florida?

YouNeedToKnowWeb500In Florida, a real estate license is required by an individual when ALL of the following conditions are met:

There are a number of situations where an individual is exempt from holding a real estate license

Click here to learn about the exemptions

You need to know – What is real property?

YouNeedToKnowWeb500The law categorizes property into 2 broad areas:

  1. Real property which cannot be moved and includes land and any improvements made to it (such as buildings); this is also commonly referred to as real estate
  2. Personal property which is not attached to real property can be moved and includes furniture, clothing, motor vehicles; this is sometimes referred to as chattels

The Florida Statute 475 definition is:

“Real property” or “real estate” means any interest or estate in land and and any interest in business enterprises or business opportunities, including any assignment, leasehold, subleasehold, or mineral right; however, the term does not include any cemetery lot or right of burial in any cemetery; nor does the term include the renting of a mobile home lot or recreational vehicle lot in a mobile home park or travel park

Real property includes the legal bundle of rights to own and use the property

You need to know – What is an owner-employer?

YouNeedToKnowWeb500An owner-employer (also known as an owner-developer or home-dealer) is an individual or entity that is in the business of buying, owning and or developing real estate

An owner-employer is registered with the Florida Department of Business and Professional Regulation but does not receive a license

An owner-employer who is registered may hire real estate licensees

What is the difference between Gross and Net?

Gross means before any deductions

Net means after deductions

Gross and net are often used in describing leases

A gross lease is one where the the landlord receives his return in the form of rent before payment of any expenses; the tenant pays a fixed amount of rent per month.  The landlord then pays all the expenses of the property from his gross rent

A net lease is one where the landlord receives his return in the form of rent after payment of expenses; the tenant pays a fixed amount of rent per month AND an additional amount in respect of the expenses of the property (often termed a CAM payment in commercial leases).  The landlord then pays the expenses of the property from the contributions received from his tenants

What is property management?

English: Greenhaven Property Management - Brad...

English: Greenhaven Property Management – Bradford Road (Photo credit: Wikipedia)

Property Management is a service dedicated to leasing, managing, marketing and the overall maintenance of investment properties

Property Management services will be used by owners who choose to not participate in the day-to-day activities related to their investment properties

These owners are often referred to as absentee landlords

What is an absentee landlord?

Boarded up house in Mid-City New Orleans with ...

Boarded up house in Mid-City New Orleans with inscription on boards “Keep Out — This Owner Don’t Care — The Block Do!” “This really says it all about the problems of blighted property and absentee landlords in our neighborhood” (Photo credit: Wikipedia)

An absentee landlord (sometimes known as an absentee owner) is an individual or entity that does not participate in the day to day activities of their investment property