Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

FRE - Associate Pre-licence > Chapter 05 - Real Estate Brokerage Activities and Procedures (P01) > Flashcards

Chapter 05 - Real Estate Brokerage Activities and Procedures (P01) Flashcards

1
Q

Office type that a broker must open, maintain, and register with the DBPR

A

Principal Office

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Requirements for a broker’s principal office

A

Must:

  • Registered with the DBPR
  • Consist of at least one enclosed room
  • Be in a building of stationary construction
  • Provide privacy in negotiations and closings
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Additional offices from which the broker conducts business other than the principal office

A

Branch Office

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Office where licensed sales associates and broker associates may be licensed

A

Either the principal office or a branch office

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Requirements for a branch office

A

Registered individually with the DBPR with the appropriate fee paid

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Brokerage office that is transferable to a new location

A

Principal Office (Branch offices are not transferable)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Conditions under which a broker may have a principal or branch office in his or her home

A

When it is not in conflict with the local zoning ordinances

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Conditions under which a branch office may be closed and reopened with a license reissue of the original license

A

If the closed branch office is reopened at the same location within the same two-year license period, the license may be reissued without additional fees

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Time period for which a broker must maintain all books, records, and files

A

Five years

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Office Sign Location at principal and branch offices

A

Required office sign must be:

  • Located on or about the entrance (interior or exterior)
  • Easily observed and read upon entering
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Advertising Requirements

A

Must include the broker’s registered name or trade name of the brokerage firm and be under the supervision of the broker

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Office sign content

A

Must contain:

  • Broker’s trade name, if any
  • Broker’s name
  • The words “Licensed (or Lic.) Real Estate Broker”
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Sales associates names on the office sign

A

Located beneath and clearly separated from the required text and include the license status of each name listed

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Ads containing sales or broker associate names

A

All ads must include the last name exactly as registered with the FREC

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Responsibility for all advertising no matter who created it

A

Broker

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Internet advertisements

A

Must include the brokerage firm’s name or trade name placed adjacent to, immediately above, or below the point of contact information:

  • Address
  • phone number
  • e-mail address, etc.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Escrow deposit alternate names

A

Deposit, earnest money deposit, or good faith deposit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Real estate advertisement that does not contain the registered or trade name of the broker or for which there is doubt that the ad is that of a real estate broker

A

Blind ad (which is illegal)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Action that should be taken by a licensee who is conducting a personal real estate transaction for their own benefit

A

Licensees should disclose their license status prior to entering any serious negotiations (but does not need to be disclosed in advertising)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Fraudulent act that a licensee is guilty of when using a name or insignia of an organization in an ad, when the licensee is not a member of that organization

A

False advertising

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Broker actions required when placing a deposit with a title company or attorney

A

Selling broker must:

  • Include the name, address, and phone number of the title company or attorney
  • Request written verification of deposit receipt with 3 business days
  • Provide a copy of written verification to seller or seller’s broker within 10 business days
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Disposition of the deposit when a buyer defaults on the contract

A

Deposit is typically forfeited in favor of the seller (liquidated damages)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Time period within which a sales associate or broker associate must deliver a deposit to the broker

A

By end of the next business day following receipt (Saturdays, Sundays, and legal holidays are not considered business days)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Disposition of the deposit if no contract results

A

Deposit is returned to the buyer

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Possible forms of deposit

A

Money, personal property, real property, or anything of value that can be converted to cash

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Postdated check as a deposit

A

Requires seller’s approval (considered a promissory note)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Escrow or Trust Account placement

A

Commercial bank, title company which has trust powers, credit union, or savings and loan association in the state of Florida

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Placement of deposit funds and a broker’s personal funds in the same account

A

Commingling

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Escrow funds in an interest-bearing account

A

Written authorization of all interested parties with an agreement as to who shall receive the interest earned

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Escrow reconciliation by the broker

A

Broker must prepare and sign a monthly written report comparing the (escrow account) trust liability with the bank statement and reconciling any differences.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Sales or property management escrow account personal funds exceptions

A

Up to $1,000 in a sales escrow account and up to $5,000 in a property management escrow account

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Broker who either cannot or will not produce money or property belonging to another when required

A

Failure to Account

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Fraudulent misuse, commingling, or failure to account for funds or property entrusted to a licensee

A

Conversion

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Time period within which a broker must place the earnest money deposit in an escrow or trust account

A

“immediately”, defined as no later than the end of the 3rd business day following receipt (from the buyer)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Escrow dispute time constraints

A

15 business days to notify FREC, 30 business days to select a settlement procedure

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Person or entity who owns the escrow funds before a contract has been entered into

A

Buyer

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Escrow Reconciliation

A

Broker must prepare and sign a monthly written report comparing the (escrow account) trust liability with the bank statement and reconciling differences

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Person or entity who owns the escrow funds after a contract has been signed but before the transaction closes

A

Buyer and seller jointly own the funds, with the broker, title company, or attorney holding the funds in trust

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Escrow dispute settlement procedures

A
  • Mediation
  • Arbitration
  • Litigation
  • Escrow Deposit Order
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Escrow dispute

A

Both the buyer and seller demand that the escrow funds be released to them (conflicting demands), or the broker has good faith doubt as to which person is entitled to the dispursement

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

Settlement procedure initiated when the broker requests that the FREC determine the party entitled to escrow dispursement

A

Escrow Dispursement Order (EDO)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

Settlement procedure that is binding on the parties following a hearing in which both parties had an opportunity to be heard

A

Arbitration (conducted by an arbitrator who issues an award that can be enforced in a civil law suit)

26
Q

Conditions of an EDO issued by the FREC

A

By law, the broker must follow the order for dispursement of the funds

26
Q

Dispute settled by the parties before the EDO is issued by FREC

A

Broker should notify FREC within 10 days

26
Q

Law suit filed in civil court to resolve an escrow dispute

A

Litigation (court action)

26
Q

Double jeopardy situation for the broker upon successful appeal of the EDO by the parties

A

Should an appeal be upheld, the broker could be subject to civil damages for dispursing the funds according to the original EDO, that he or she was required to dispurse. (Broker may be reimbursed from Real Estate Recovery Fund)

26
Q

Arbitration conditions

A
  • Written consent by all parties
  • Agreement in advance by contract to abide by the Arbitrator’s decision
26
Q

Court action taken by a broker who does not claim any rights to the deposit under dispute

A

Bill of Interpleader (broker may still be awarded court costs and attorney’s fees)

27
Q

Dispute between a broker and a party regarding the commission for the transaction

A

Civil court action (this is not an escrow dispute)

27
Q

Settlement procedure where the parties appoint a 3rd person to assist in reaching an agreement

A

Mediation (conducted by a mediator who has no power to impose a decision on the parties)

27
Q

Conditions for mediation

A
  • Written consent by all parties
  • If not successfully completed within 90 days, broker must promptly employ one of the other settlement procedures
27
Q

Broker requests to participate in the settlement proceeds in the court’s decision

A

Declaratory decree

27
Q

Escrow dispursement circumstances under which broker may dispurse funds without notifying FREC or utilizing one of the escape procedures

A
  • Within 3-day rescission period for condo resale upon receipt of buyers’ written notice to withdraw from contract
  • When a sales contract is subject to financing and financing cannot be obtained
  • When HUD purchase, as directed by HUD contract
28
Q

Rental list violations penalties

A

First degree misdemeanor, punishable by up to one year of imprisonment and/or a fine of up to $1,000

28
Q

100% - refund entitled to an individual who paid for and received rental list information that was not current or accurate in any material aspect

A

Rental list refund - errors or misleading information

29
Q

Licensee neglects to collect an escrow deposit stated in the contract

A

Culpable Negligence

29
Q

75% of fee paid, if refund is requested within 30 days of the contract date

A

Rental list refund - rental not selected

30
Q

Liability for the actions of partners, sales or broker associates under a brokers employment

A

The broker regardless of whether the broker knew about the actions

30
Q

Compensation and rules for sales associates employed and working under a broker or owner-developer

A
  • May not accept money or property except in the name of the employer
  • May only perform activities authorized by the employer
  • May only work for one broker or owner-developer at a time
30
Q

Compensation for sales or broker associates

A

A sales associate or broker associate may ONLY be compensated by their employing broker or owner-developer and NEVER by a member of the public

30
Q

Individual(s) that a sales associate may file suit against for failure to pay agreed upon compensation

A

ONLY the employing broker or owner-developer who failed to pay the commission

30
Q

Change of employer notification requirements

A

Report change of employer to the FREC within 10 days of changing employers

31
Q

Method by which a sales associate’s commission is determined

A

By agreement with the sales associate’s employing broker or owner-developer

32
Q

Two or more individuals agree to share the profits or losses of a business and are each personally and severally liable for all debts and liabilities of the business

A

Partnership (may buy and sell real estate in the name of the partnership)

32
Q

Partnership dissolution

A
  • Death, withdrawal, or addition of a partner
  • Agreement of the partners
  • Bankruptcy of any partner or the partnership
  • Court order
33
Q

Upon employment terminations, the criminal charge associated with the taking of original listings, records, papers, or contracts without the employer’s permission

A

Larceny (also a breach of trust)

33
Q

A business that is formed by an individual who is personally liable for his or her actions and the actions of employees within the scope of their employment

A

Sole Proprietorship (may sell real estate for use in his or her own business)

33
Q

Real Estate brokerage partnership offering real estate services to the public

A
  • At least one partner must hold an active broker license
  • Each partner who provides real estate services to the public must hold an active broker license
  • Sales associates and broker associates may not be partners
  • Register with the DBPR in the name of the partnership
33
Q

Mailing address change notification requirements

A

Licensees must report a change of mailing address to the DBPR within 10 days

34
Q

Sole proprietor may offer real estate services to the public

A

Sole proprietor broker must:

  • Hold a current, active, and valid broker license
  • Register with the DBPR under personal name or trade name
35
Q

Resignation or death of the only active broker in a real estate brokerage partnership

A

Vacancy must be filled within 14 calendar days

35
Q

Limited Partner restrictions

A

May not take part in the management or control of the business; if they do, they become a general partner with personal liability

36
Q

One general partner and one limited partner where the limited partners’ liability is limited to their investment

A

Limited Partnership

37
Q

Restrictions on sales and broker associates in a real estate brokerage limited partnership

A

Sales associates and broker associates may not be general partners (but may be limited partners)

37
Q

Joint venture conditions

A

Must be composed of separate real estate brokers (not required to register the business with the DBPR, since the brokers are already licensed)

38
Q

Temporary business formation that involves a single transaction or a predetermined number of transactions

A

Joint Venture (or Joint Adventure) (may be formed orally or in writing, no documents must be filed)

38
Q

An artificial person created by law

A

Corporation (for profit) (may buy and sell real estate for its own purposes but not for members of the public)

38
Q

Type of partnership business formation in which partners are only jointly and severally liable for acts and debts incurred with partnership business and are not liable for acts or of debts of other individual partners

A

Limited Liability Partnership (LLC) (Must be filed with the Secretary of State)

39
Q

Legal protection of corporate officers and board of directors against individual liability for actions in connection with corporate business

A

Corporate Veil (can be “pierced” to allow action where fraud or civil wrongdoings have occurred)

39
Q

Practices for licensees who share office space (and may share the expense of a secretary) to avoid creating an ostensible partnership

A

Clearly indicate separate status with separate desks, telephones, and stationary, business signs, and advertising

40
Q

Form a Corporation under Florida law

A

Charter (or articles of incorporation)

40
Q

A corporation created under Florida law

A

Domestic Corporation

41
Q

Type of business formation where all members render the same professional services permitted by their licensure

A

Limited Liability Company (LLC)

41
Q

A corporation organized under the laws of another state

A

Foreign Corporation

41
Q

A corporation organized under the laws of another country

A

Alien Corporation

41
Q

May buy, sell, and lease real estate in limited amounts for its own use

A

Not-for-profit corporation

41
Q

Sales and broker associates restrictions in a real estate brokerage corporation

A

Sales associates and broker associates may not be an officer or director

41
Q

Corporation name display

A

Must include the word “Corporation”, “Company”, “Incorporated”, or the abbreviation “Corp.”, “Inc.”, or “Co.”

41
Q

Conditions under which a corporation may operate as a real estate brokerage corporation, providing services of real estate to the public

A
  • The corporation and names of all officers and directors must be registered with the DBPR
  • At least one corporate officer must have an active real estate broker license
  • All corporate officers and directors who provide real estate services to the public must hold an active real estate broker license
42
Q

Business formed for religious purposes

A

Corporation Sole (may NOT register as a real estate brokerage corporation)

42
Q

Two or more parties, such as brokers, who act or operate in a manner that deceives or misleads someone into believing that a partnership exists, when in fact, it does not

A

Ostensible Partnership (not a true partnership)

42
Q

Titleholder for property owned by a corporation sole

A

The appropriate clerical personage takes title (upon his or her death, title passes to the successor in the office)

42
Q

A group of businesses that wish to market or promote a specific product

A

Cooperative Association (may buy, sell, and lease real estate for its own use, but may NOT register as a real estate brokerage corporation)

43
Q

Ostensible Partnership risk

A

The parties may be liable for the acts of the other parties as if a true partnership exists; the FREC can also take disciplinary action

43
Q

Business created by filing a declaration of trust with the secretary of state where units in the trust are sold to the public as securities

A

Business Trust (May NOT register as a real estate brokerage corporation; anyone who transacts real estate on behalf of the trust must have an active real estate license)

43
Q

Individuals group together for some purpose without creating one of the other business formations

A

Unincorporated Association (may NOT register as a real estate brokerage corporation)

44
Q

Name under which a person transacts business other than the person’s legal name

A

Trade Name (or Fictitious Name)

45
Q

Individuals or entities that may conduct business under a trade name

A

A broker, partnership, or corporation (a sales associate may NOT use a trade name; they must register under their true name only)

46
Q

Organization formed for the purpose of real estate investment, such as investment trusts

A

Real Estate Syndicate (buying shares of stock in a corporation that invests in real estate is a common form of syndication)

47
Q

Businesses that MAY register with the DBPR to perform real estate brokerage services

A
  • Sole proprietorship
  • Corporation
  • Not-for-profit corporation
  • Limited liability Company
  • General Partnership
  • Limited Partnership
  • Limited liability partnership
48
Q

Businesses that MAY NOT register to broker real estate

A
  • Corporation Sole
  • Cooperative Association
  • Business Trust
  • Unincorporated Association
  • Joint Venture
49
Q

Businesses that provide protection from personal liability and are required to file documents with the secretary of state

A
  • Corporation (For Profit)
  • Not-for-profit corporation
  • Limited liability company
  • Cooperative Association
  • Limited Partnership
  • Limited Liability Partnership
  • Business Trust
50
Q

Businesses whose participants are jointly and severally liable and do NOT have to file documents with the secretary of state

A
  • Sole proprietorship
  • General Partnership
  • Joint Venture
  • Corporation Sole
  • Unincorporated Association

FRE - Associate Pre-licence (19 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions