Chapter 5 Flashcards
Which brokerage offices must have a sign?
All brokerage offices must have a sign
What is required to be on all brokerage office signs?
Trade name, (if one is used) broker’s name, and the words, “Licensed Real Estate Broker”
Is advertising isa service of real estate and must be done in the name of whom?
The broker
In advertising, can the team’s name be in larger print than the brokerage firm’s name?
No
What makes an advertisement “blind”?
A blind advertisement fails to disclose the name of the brokerage firm
Are blind ads permitted?
No
Can a licensee include their personal information, like their name and phone number on advertising?
Yes, provided the name of the brokerage firm is also included
Can a licensee sell his or her property by owner?
Yes, provided they disclose they are licensees before entering into serious negotiations
Can a licensee be punished for calling someone on the do-not-call list, even if it was an accident?
Yes
What are the five words that mean escrow?
Escrow, earnest money, binder deposit, good faith deposit, and trust funds
In Florida, are brokers required to hold escrow?
No.Many brokers decide to hold escrow, but many brokers do not hold escrow andinstead use a title company or attorney to hold escrow funds
If a broker does choose to hold escrow, can that broker hold the escrowed funds in another state other than Florida?
No
Can a broker hold escrow money in a stock brokerage company?
No
When does a broker have to deposit escrow into the escrow account?
Immediately
How does the state define, “immediately”?
Immediately is defined as by the end business on the third business day, not including the day of receipt.
If a broker chooses to hold escrow, is he required to be a signatory on the account?
Yes
Can the broker allow someone else, like an administrative assistant, to be a signatory on the escrow account?
Yes
If the broker is going to hold/move escrow into an interest-bearing account, what is required?
To hold/move escrow money in an interest-bearing account, the broker must have written authorization from BOTH parties.
How much of his own money can a “property manager” broker hold in his escrow account to maintain it and it not be considered commingling?
$5,000
How much of his own money can a broker hold in his escrow account to maintain it and it not be considered commingling?
$1,000
How long is a broker required to keep/maintain records?
Five years
If a title company or an attorney’s office is holding escrowed funds, what must be on the purchase and sales contract regarding the title company or attorney’s office?
The name, address, and phone number of the title company or attorney’s office
What is the first thing a broker is required to do in the event of an escrow dispute?
Contact FREC within 15 business days in writing
What is the second thing a broker must do in the event of an escrow dispute?
Within 30 days, he must institute one of the four settlement procedures.
What are the four settlement procedures available to a broker with an escrow dispute?
Mediation, arbitration, litigation, (court) Escrow Disbursement Order, (EDO)
Which of the four settlement disputes is said to be, “binding”?
Arbitration
If a broker orders an EDO, (Escrow Disbursement Order)and the dispute is resolved before the order is given by the FREC, how may days does a broker have to notify the FREC that the dispute has been settled?
10 days
If a sales associate sold a rental list to someone and the list had a mistake on it, how many days does thecustomer have to request a refund?
30 days
If a rental list had a mistake on it and the customer requested a refund within 30 days, (orally or in writing) how much of a refund is he entitled?
100%
If a rental list did not have any mistakes but the customer requested a refund within 30 days, how much of a refund is he entitled?
75%
What is the penalty for providing an out-of-date rental lists?
1stdegree misdemeanor
If two brokers conspire to set commission rates, what law is being broken?
Antitrust laws
Can a broker share a portion of his commission with someone that does not have a license because that person sent the broker a customer?
No
Can a broker share a portion of his commission with a party to the transaction, like the buyer?
Yes, provided all parties are fully informed
Can a general partnership register to broker real estate?
Yes
Can a sole proprietorship register to broker real estate?
Yes
Can a limited partnership register to broker real estate?
Yes
Can a business trust register to broker real estate?
No
Can a corporation sole register to broker real estate?
No
Can a joint venture register to broker real estate?
No
Can unlicensed personal assistants show property?
No
Can unlicensed personal assistants negotiate contract?
No
Who determines the commission split between a broker and a sales associate?
The commission split between a broker and a sales associate is determined by a negotiation between the broker and the individual sales associate.
Who determines the listing commission charged to a seller for the broker to list their house?
The listing commission that a broker charges a seller to list their house is a negotiation between the seller and the broker, (not the seller and the sales associate).
