Chapter 5 Flashcards
Broker Paul from ABC Realty and Broker Shawn from XYZ Realty meet to play golf at the country club. During their round of golf and at lunch, both discuss how the cost of business continues to rise. They agree that they should each increase their commission rates. This discussion is
- appropriate and timely.
- legal since the meeting was held in a public place.
- a violation of the Sherman Anti-trust Act.
- illegal since they should have taken the discussion for the Board of REALTORS ® to discuss.
a violation of the Sherman Anti-trust Act
Mixing business and personal money is called
- conversion.
- blending.
- commingling.
- intermingling.
commingling
The federal government department which regulates RESPA is the
- Department of Commerce (DOC).
- Consumer Financial Protection Bureau (CFPB).
- Department of Health and Human Services (DHH).
- Department of Housing and Urban Development (HUD).
Consumer Financial Protection Bureau (CFPB)
Broker Sally wants to work out of a trailer at a new home site. She will negotiate deals here and do closings. What is true about this situation?
- This location is a temporary site and does not need to be registered.
- New home trailers do not need to be registered as this is not a branch office.
- Because Sally conducts closings and negotiations here, this would be considered a branch office and must be registered with the FREC.
- No license or registration is necessary since this is a new home subdivision.
Because Sally conducts closings and negotiations here, this would be considered a branch office and must be registered with the FREC.
Three brokers get together and decide to form a corporation to sell real estate. They want to call their company “House of Brokers.” Each broker wishes to maintain contact with the public. What is necessary to do this?
- At least one of the brokers must be licensed as an active broker and the others may be inactive.
- All three brokers must be active brokers and the corporation must be registered.
- All three must be licensed, but no registration is necessary since this is a corporation.
- All three brokers must be active brokers, the corporation must be registered, and the trade name must be registered.
All three brokers must be active brokers, the corporation must be registered, and the trade name must be registered.
John, the actively licensed broker in a partnership, has died. The sales associate working for that partnership
- may continue as the FREC will appoint another broker.
- will become involuntarily inactive, as the partnership will be cancelled.
- will be suspended, as the whole firm will be suspended.
- will be revoked.
will become involuntarily inactive, as the partnership will be cancelled.
Which CANNOT register with the Department to perform real estate services to the public?
- A sole proprietor
- A corporation
- A partnership
- A corporation sole
A corporation sole
Which is NOT required on a broker’s entrance sign?
- The name of a sales associate registered with the firm
- The name of the partnership as registered
- The trade name if the firm operates under a trade name
- A broker’s name with the wording “licensed real estate broker”
The name of a sales associate registered with the firm
What must a broker do with his trust account?
- Reconcile monthly with a statement of any discrepancies.
- Reconcile every six months and files maintained two years.
- Reconcile once a year with the files maintained five years.
- Reconciling is not necessary if the files are kept five years.
Reconcile monthly with a statement of any discrepancies.
If the rental information provided by the broker or sales associate, for a fee, to a prospective tenant is not current or accurate in any material respect, the full fee shall be repaid to the prospective tenant upon demand. A demand from the prospective tenant for the return of the fee, or any part thereof, shall be made within_____ days following the day on which the real estate broker or sales associate had contracted to perform services to the prospective tenant.
- 90
- 75
- 60
- 30
30
How long does a sales associate have to deliver earnest money to the broker?
- Immediately
- 3 banking days
- 5 banking days
- 10 banking days
Immediately
A broker desires to keep an escrow account in an interest bearing account. Would this be legal?
- Yes, if both the buyer and seller agree in writing that it goes into an interest-bearing escrow account.
- Yes, if the buyer agrees in writing that the buyer’s funds may go into an interest bearing account.
- Yes, if the seller agrees in writing that the seller’s future funds go into an interest bearing account.
- Yes, if all parties to the transaction agree, in writing that the funds will go into an interest bearing account and who is to receive the interest.
Yes, if all parties to the transaction agree, in writing that the funds will go into an interest bearing account and who is to receive the interest.
A broker took earnest money from a buyer. He deposited the money in the trust account, but when his electric bill was due, the broker deposited the buyer’s money into the broker’s business account. What is this action called?
- Misrepresentation
- Puffing
- Commingling
- Conversion
Conversion
The principal statute(s) affecting the investigative and litigation activities of the Antitrust Division is/are the
- Statue of Frauds Act.
- Sherman and Clayton Acts.
- Statute of Agency Act.
- Truth in Lending Act.
Sherman and Clayton Acts.
