The National Association of Realtors (NAR), is a trade association of real estate professionals. It has a code of ethics, first adopted in 1913, and was one of the first codifications of ethical duties adopted by any business group.
The code ensures that consumers are best served when NAR members co-operate with each other to further clients’ best interests.
The leadership of the NAR has devised the code and it is frequently revised and updated.
It is not the result of any legislation, nor subject to approval by any legislative body.
In the cost-depreciation approach to valuation, the quantity survey method involves a detailed inventory of:
- all materials & products
- indirect costs
plus the builder’s profit, required to reproduce the building.
A tenancy at sufferance is a nonfreehold estate where the tenant has possession of the property with no agreement with the landlord
A common example of a tenancy at sufferance is where a tenant remains in possession of the property after a lease has expired
A tenancy at sufferance can be terminated by either by the landlord or tenant without notice in which case the tenant would owe the landlord the fair market rent for the period of occupancy
Mutual recognition is the way that the Florida Real Estate Commission (FREC for short) recognizes the education that a licensee has completed in another state.
In order to qualify for mutual recognition an individual must:
- be licensed in one of the states that Florida has entered into an agreement with
- be a non-resident of Florida
- take a 40 question law-specific examination
An escrow dispute occurs when there are conflicting demands regarding the disbursement of escrow funds
In the event of an escrow dispute, the broker must:
- notify the FREC within 15 business days of receiving the conflicting demand
- choose one of the four settlement procedures within 30 days of receiving the conflicting demand
A broker who qualifies as the broker for more than one business entity can be issued additional licenses
Such an individual is said to hold multiple licenses
Sales associates and broker-associates may not hold multiple licenses
There are four legal rights of ownership of real property; these are known as the bundle of rights:
- Disposition – the right to sell the property
- Use – the right to quiet enjoyment of the property (that is, its use) without being disturbed and the right to determine how the property is used
- Possession – the right to occupy the property
- Exclusion – the right to prevent others from using the property
Each of these rights can be transferred independently; for example if an owner grants a lease to a third party, the right to possession is being transferred for the duration of the lease