***Ch. 7 Sales Associate Guide to Brokerage Activities*** Flashcards
By definition, a real estate broker’s office
A. Must be located in Florida
B. Must be at least one enclosed room of stationary construction where negotiations take place and records are kept
C. May not be in the broker’s home
D. All of the above
B. Must be at least one enclosed room of stationary construction where negotiations take place and records are kept
The official sign on or about the entrance (readily and easily visible to anyone entering) to real estate brokerage must include all of the following except:
A. Name of the broker
B. Name of the sales associates, if any
C. Name of the brokerage entity, if any
D. Licensed (or Lic) real estate broker
B. Name of the sales associates, if any
Which of the following may appear on a brokerage official sign?
A. Name of the broker
B. Names of all sales associates
C. Names of all broker associates
D. All of the above
D. All of the above
What must a broker do if they want to transfer their branch office to another location?
A. Notify the FREC within 10 days
B. Submit a change of address from the DRE within 10 days
C. Acquire a new branch office registration and pay the appropriate fee to the DRE
D. Apply for multiple license with eh DRE within 10 days
C. Acquire a new branch office registration and pay the appropriate fee to the DRE
(branch office registration is non transferable, think of it as a license plate for a business)
In addition to his principal office, Broker Gary temporarily works out of a trailer parked front of a subdivision Gary is listing. At the trailer, Gary greets buyers and writes up offers and contracts. What notice, if any, must Gary provide the DRE about the trailer?
A. Register the trailer as a branch office
B. Register the trailer as a contemporary shelter
C. Register the trailer as a second principal
D. Gary does not have to provide notice since the trailer is temporary shelter
A. Register the trailer as a branch office
Violation of rental list rules is a first degree misdemeanor. What are the maximum penalties for this type of crime?
A. Up to 3 months in jail and.or a $500 fine
B. Up to 6 months in jail and.or a $500 fine
C. Up to 1 months in jail and.or a $1,000 fine
D. Up to 1 months in jail and.or a $5,000 fine
C. Up to 1 months in jail and.or a $1,000 fine
Who is ultimately responsible for advertising placed by a real estate brokerage?
A. The person placing the advertisement
B. The sales associate, but only if they actually placed the advertisement
C. The broker, but only if the broker actually placed the advertisement
D. The broker
D. The broker
A blind advertisement is a real estate advertisement that doesn’t not include which of the following:
A. The address of the subject property
B. The price the subject property
C. The name of the real estate brokerage
D. The address of the real estate brokerage
C. The name of the real estate brokerage
Sales associate Bob sees a “For sale by owner” sign on this way to work. When he arrives at the office, he calls the owner to request a listing appointment. When Bob identified himself as a real estate licensee, the owner gets angry and tells Bob that he shouldn’t be calling because the owner’s name is on the Federal No solicitation list. Has Bob broken the las by calling the owner?
A. Yes, Bob should’ve checked the no solicitation list before calling
B. Yes, it is always a violation for a licensee to call anyone that is on the no solicitation list
C. No, the no solicitation list rules do not apply to real estate licensees
D. No, the no solicitation list rules do not apply to for sale by owners that advertise their telephone number
A. Yes, Bob should’ve checked the no solicitation list before calling
Broker Alan accepts an earnest money deposit from a buyer. Instead of depositing the money in his escrow act, Alan deposits the money into his personal acct. Ala could be criminally charged with which of the following:
A. Culpable negligence
B. Conversion
C. Breach of fiduciary duties
D. Breach of trust
B. Conversion
PRIOR TO CONTRACT, a buyer directs a broker to move an earnest money deposit from a non-interest bearing escrow account to an interest bearing escrow account. How should the broker respond?
A. Tell the buyer the money must stay where it was originally deposited
B. Tell the buyer the money can be moved if the seller does not object
C. Move the deposit to an interest bearing account, even with out the sellers consent
D. Tell the buyer that earnest money deposits must be placed in a non-interest bearing account only
C. Move the deposit to an interest bearing account, even with out the sellers consent
Sales associate Sandy receives an earnest money deposit from a buyer on Monday. What is the deadline for the broker to properly deposit the funds into an escrow account?
A. End of the business day Monday
B. End of the business day Tuesday
C. End of the business day Wednesday
D. End of the business day Thursday
D. End of the business day Thursday
After a broker has received conflicting demands for escrowed funds, the broker must notify the FREC within how many days
A. 15 days
B. 15 business days
C. 30 days
D. 30 business days
B. 15 business days
In order to resolve a disputer over an earnest money deposit, a broker can request an Escrow Disbursement Order from which of the following;
A. Division of Real Estate DRE
B. Department of Business and Professional Regulation DBPR
C. Florida Real Estate Commission FREC
D. Florida Association of REALTORS
C. Florida Real Estate Commission FREC
Ed purchased a rental list from a Florida broker for $100,000. After visiting all the rental properties stated on the list, Ed decided not to move from his present apartment. The next day, Ed verbally requested 100% refund. Which of the following statements best describes Ed’s legal rights?
A. Ed is entitled to a 100% refund
B. Ed is entitled to no refund if the list was accurate
C. Ed is entitled to a 75% refund
D. Ed is entitled to a 50% refund
C. Ed is entitled to a 75% refund
If a buyer makes an earnest money deposit check payable to a broker associate, how should the broker associate handle this situation?
A. Deposit the check into the broker associate’s personal account and write a new check payable to the broker
B. Deposit the check into the broker associate’s trust account
C. The broker associate should endorse the check and deliver it to their broker immediately
D. Licensees are not allowed to accept earnest money deposit checks made payable to the licensee
C. The broker associate should endorse the check and deliver it to their broker immediately
All of the following are authorized to operate as a real estate brokerage, except:
A. Partnership
B. Limited partnership
C. Corporation
D. Joint venture
D. Joint venture
In Florida, corporations are created through which state agency?
A. Department of State
B. DBPR
C. Department of revenue
D. Office of the Attorney General
A. Department of State
Officers of a real estate corporation must be either active brokers or:
A. Licensed
B. Registered
C. Approved by DRE
D. Licensed sales associate
B. Registered
any advertisement that fails to indicate the licensed name of the brokerage firm (this type of advertisement is illegal)
Blind Advertisement
To mix together money or a deposit with personal funds; combine
Commingle
When a buyer or seller makes demands for a deposit
Conflicting demands
Money given as evidence of good faith to accompany an offer to purchase rent
Earnest money deposit
A depository account in a bank, title company, credit union, savings association or trust company used solely for safekeeping customer funds and not for deposit of personal funds; impound account
Escrow Account
Two or more parties in business together, each share the profits and losses of business. At least one partner must be an active real estate broker, and associate cannot be a partner.
General partnership
A legal proceeding where the disputed money deposited with the court and the judge decide who should receive the money
Interpleader
A portion of monies received because of an agreement for referring a party to a particular vendor for services
Kickback
A business entity that may operate a real estate brokerage having characteristics similar to partnership and a subchapter “S” corporations
Limited liability company
Alternative hybrid business entity with the combined characteristics and benefits of both limited partnerships and S corporations
Limited liability partnership
A business entity consisting of one or more general partners and one or more limited partners
limited partnership
A partnership formed, not by agreement, but the representations or conduct of two or more parties that cause others believe that a partnership exists. The parties become liable for the actions of the other. “You are what you appear to be”
Ostensible partnership
Operating as an individual in business
Sole proprietorship
Any adopted or fictitious name used to designate a business concern
Trade Name
does a temporary shelter need an official sign?
No
FSBO may be telephoned with out penalty under what calling list
Federal Do Not Call List
A broker may maintain to how much of personal or brokerage funds in property management escrow account or up to how much in a sales escrow account?
$5,000 of personal or brokerage funds
$1,000 in a sales escrow account
How many days does the associate have to deliver the earnest money deposit check to the broker?
How many days does the broker have to deposit the earnest money deposit?
immediately- by the end of the next business day excluding holidays
3 business days
Can you post-date check with the seller’s permission?
yes
Prior to acceptance of a bona fide offer to purchase real estate, the earnest money deposit belongs to who?
buyer (offeror)
Florida law allows the broker no more than how many days from the date of the last demand to resolve the dispute, otherwise one of four settlement procedures must be taken?
30 business days
1 of the 4 settlement procedures where FREC is requested to provide guidance concerning the delivery of disputed escrow money, and how many days must the broker notify FREC if issue is resolved
Escrow disbursement order, 10 days
1 of the 4 settlement procedures where a third party mediator meets with the parties and attempts to help them reach a voluntary settlement, if there is no resolution within how many days another settlement procedure must commence.
Mediation
90 days
1 of the 4 settlement procedures utilizing a trained arbitrator to consider the arguments of all parties and render a decision as to the disposition of the deposit.
Arbitration
1 of the 4 settlement procedures where the court system can be utilized to resolve the parties dispute over the deposit through the legal procedure. The broker is excused from the remainder of the case.
Litigation
Regardless of the settlement procedure utilized the broker must notify FREC within how many days and inform of the result?
10 Calendar days
What 3 rules must be followed under Florida Law to a broker or sales associate who attempts to negotiate a rental or who finishes a rental info list to a prospective tenant for a fee?
- tenant must be provided a receipt that states their right to refund
- if info contained is inaccurate tenant is entitled to 100% refund provided demand is made within 30 days
- tenant is entitled to 75% refund provided demand is made within 30 days of purchase tenant does not lease any properties
Out of the 3 which misrepresentation of value is the worst by a licensee?
A. Fraud if the misrepresentation was intentional
B. Breach of contract
C. Breach of fiduciary duty
A. Fraud if the misrepresentation was intentional
What act prohibits price listing among competitors; 2 or more brokers joining together to set commission rates in an anti competitive manner?
Sherman Clayton Anti Trust Act
4 conditions that make a kickback legal?
- must not violate any federal law
- all parties must fully informed
- person receiving kickback must performed the service
- receiver must be properly licesed
Sharing a commission with an unlicensed person is a 3rd degree felony punishable by what ?
up to 5 years in jail and or up to $5,000
Unauthorized removal of ORIGINAL documents from a previous employer is considered to be a crime of what?
Larceny
Who elects the board of directors in a corporation?
stockholders
A corporation that is domiciled in the state of Florida
domestic corp
corporation that is domiciled outside of Florida
foreign corp
To use a fictitious name, submit proof of publication to the clear of court, and submit an application to who and register fictitious name to who?
submit application to Department of State
register fictitious name to DRE
