Brokerage Activities and Procedures (Chapter 5 - 12 questions)

Question 1

What are post dated checks considered to be?

Answer 1

A promissory note - and can be accepted as earnest money with the seller’s approval

Question 2

When a deposit is placed, or is to be placed, with a title company or an attorney, the licensee who prepared or presented the sales contract must indicate on that contract

Answer 2

name, address, and telephone number of the title company or attorney with whom the deposit was placed.

Question 3

Where must an escrow account or trust account be held?

Answer 3

in a commercial bank, title company which has trust powers, credit unions, or savings and load association located in Florida

Question 4

A broker must “immediately” place the earnest money deposit in an escrow or trust account. What does immediately mean

Answer 4

Within 3 business days. The day of receipt is Day 0. So if a deposit is received on Tuesday, it must be deposited by the end of Friday

Question 5

What must a broker do if he receives conflicting demands for the escrow funds or has good faith doubt which person (buyer or seller) is entitled to the escrowed property?

Answer 5

Give written notice to the Commission within 15 days from the date of the last party’s demand. And institute an authorized settlement procedure to resolve the dispute within 30 days of the last party’s demand

Question 6

Who can a sales associate file a law suit against if they are not compensated as agreed upon by their employer?

Answer 6

Their employer - the broker (and only their broker)

Question 7

How many days must a resident licensee who becomes a nonresident notify the Commission of the change to comply with nonresident requirements?

Answer 7

60 Days

Question 8

Which business formation requires each partner who provides real estate services to the public either directly or indirectly must hold an active broker’s license?

Answer 8

Real Estate Brokerage Partnership

Question 9

In a Real Estate Brokerage Partnership can a sales associate or broker associate be a partner?

Answer 9

NO

Question 10

A Real Estate Brokerage Partnership requires

Answer 10

at least one partner be an active licensed broker

Question 11

What is a temporary business that involves a single transaction or a predetermined number of transactions

Answer 11

a Joint Venture

Question 12

Name one business that may register with the Department to perform brokerage services

Answer 12

Limited Partnership