Chapter 5 Flashcards
Sales associate can be stockholders in a brokerage corp but may not be
Officer or director
If branch office is closed and later reopened same location. Must be same
2 year license period
A real estate brokerage corp must have at least one active broker serving as an
Officer
Sole titleholder
The party who holds title to corp sole property is called
Sales associates and broker associates must report any changes of employer or address to the DBPR within
10 days
When a broker has conflicting demands by the buyer and seller for funds held in escrow, broker must report to FREC within
15 business days
If licensee wants his or her name in the advertisement, must use
Last name
Post dated checks are considered to be promissory noted and can be accepted as earnest money with the approval of the
Seller
Approved depositories for earnest money. Best way to deposit is in?
Bank within the state of Florida
A broker who feels he or she is entitled to some or all of escrowed funds may be submit the dispute to the court by filing an action for
Declaratory decree
A broker who intermingles or commingles business or personal funds with business funds
Form of fraud called commingling
The monthly reconciliation must be review, signed and dated by the
Broker
Subject of or has served as evidence in litigation, file must be retained for
2 years after conclusion of litigation
Demand from buyer or seller to release fund is called
Escrowed dispute
Culpable negligence?
A broker Operating in a careless, reckless, excessively negligent manner (a sales associate who forgets to collect an escrow deposit, as specified in a sales contract, may be charged with culpable negligence)
Rental information violations are considered a
misdemeanor of the first degree
Conversion?
When a broker uses or makes available to his or her personal business use funds or other property belonging to another
Concealment?
Fails to disclose information to a party such as report or rumors concerning the transaction to the principal.
Failure to account
When a broker cannot or will not produce the money or property belonging to another.
Misstatement or omission of facts
Misrepresentation
A broker cannot render an oral or written opinion that the title of the property being sold is good or merchantable
Opinion title
Which business forms cannot register to conduct real estate transactions
Corporation sole
If a commission dispute arises prior to closing, the broker
May retain the exact amount of the disputed commission in the escrow account until the dispute is settled
If the broker requested an escrowed disbursement order, and the dispute settled or goes to court before the order is issued, the broker shall?
Notify FREC within 10 business days
If the rental information provided under a contract is not current or accurate in any material aspect, you may demand within 30 days a return of your?
Full fee paid (100% back)
If you do not obtain a rental, you are entitled to receive a return of?
75 percent of the full fee paid within 30 days of the contract date
Two or more persons agree to share profits or losses of a business. Don’t need to be registered with the state. Partnership interest are not required to Be equal. They can be sued separately.
General partnership
Is a temporary business involving a single transaction or a preterm ones number of transactions. Don’t need to be registered with the Secretary of State.
Joint venture
Is formed under common law principles for religious purposes. Not required to file documents with the state. Can buy and sell real estate for its own use. Title is held by a person and it is known as sole titleholder
Corporation sole
Must be registered with the DBPR. Must have at least on active broker. Inactive brokers or unlicensed persons can be partners but cannot perform real estate, must be registered with the DBPR. Sales and broker associates cannot be partners.
Real estate brokerage partnership
