Chapter 5: Brokerage Operations Flashcards
Each active broker is required to maintain an office, which must be registered with the _____.
DBPR
A broker’s office must be of _____ construction.
stationary
A broker must maintain books, records, and files pertaining to transactions of others in the office for at least _____ years.
5
Branch office registration _____ be transferred.
cannot
Branch office registration _____ be reissued if an office is re-opened.
can
A _____ is an ad that does not contain the registered name or trade name of the broker.
blind ad
All advertising is legally in the name of, and under the supervision of, ______.
the broker
A broker operating as a sole proprietorship must have a sign containing: the broker’s trade name, if any, the name of the broker, and the words ______.
Lic./Licensed Real Estate Broker
A sales associate or broker associate that lists a property in their name only can be charged with _____.
acting as a broker
If a licensee’s name is included in an advertisement, their _____ last must be present and as registered with the Commission.
last
When dealing in personal transactions, licensees must make it known to the public that they’re licensed prior to _____.
entering into serious negotiations
When listing their own personal property, licensees may: advertise the property as an individual and make no mention of licensure, OR _____.
advertise through a registered brokerage office and follow the normal procedures.
A “good faith” deposit by the buyer is called
escrow money
Defauly by the buyer of escrow in favor of the seller is called _____
liquidated damages
Postdated checks are considered _____ and _____ be accepted as ernest money with the seller’s approval.
promissory notes
can
An agent _____ accept escrow checks made out in their name, endorsed to the broker.
can
An escrow account may be in a _____, _____, _____, or _____.
commercial bank
title company
credit union
savings association
A broker is authorized to maintain personal funds up to _____ in a sales escrow account and up to _____ in a property management escrow account for purpose of paying service charges.
$1,000
$5,000
Depositing the personal funds of another person in an escrow account is considered _____.
commingling
The misuse or spending of escrow funds is called _____.
conversion
If a broker cannot or will not produce funds that belong to another person when required is called _____.
failure to account
A sales associate must deliver escrow money to their broker immediately, or _____.
by the end of the next business day
A broker must deposit escrow funds by the end of the _____ business day following original receipt.
third
A broker’s books and records must be preserved no less than _____ years from the date escrow funds were received.
5
Broker’s records must be preserved for at least _____ years after conclusion of litigation.
2
Escrow funds become the property of the buyer until ______.
a binding contract is entered into
The broker has no rights in escrowed funds until the funds _____.
become property of the seller
true/false: A broker may retain in the escrow account the exact amount of claimed commission in a commission dispute until it is settled by agreement, arbitration, or court order.
true
If choosing court action to settle a dispute, a _____ would be filed if a broker is not claiming any of the escrow.
Bill of Interpleader
Conflicting demands for escrow money from both the buyer and seller is called an _____.
escrow dispute
If a broker feels they are entitled to part of the escrow in an escrow dispute, they would request a _____.
Declaratory Decree
An _______ is when FREC decides the outcome of an escrow dispute.
Escrow disbursement order
In settlements, _____ is binding and _____ is not.
Arbitration
Mediation
true/false: Buyers of condo units have a 3-day rescission period in which they can be refunded the escrow.
True
______ is when a sales contract is contingent upon financing. A broker may return the deposit without notifying FREC.
Financing contingency
A broker, in case of an escrow dispute, must notify the FREC within _____ days and institute an authorized settlement procedure within _____ days.
15
30
Customers are entitled to _____% refund on rental lists if no rental is obtained, _____% if it contains false information.
75%
100%
A broker is responsible for the actions of their partners and employees in a ______ suit, even if the broker had no knowledge of the actions.
civil
_____ is failure of a broker to disclose information.
Concealment
_____ is when a broker forms a scheme with another intending to defraud.
Conspiracy
_____ is when a broker operates in a reckless, careless, or excessively negligent manner.
Culpable negligence
_____ occurs when a broker uses another person’s funds for personal or business use.
Conversion
_____ is a form of conversion that occurs when a broker is required to produce another’s money or property and cannot or will not.
Failure to account
_____ is when a broker clouds title by filing false, void, or unauthorized documents.
Filing false documents
_____ is a misstatement or omission of facts.
Misrepresentation
A broker that promises they they will resell or repurchase property is guilty of _____.
promises to resell
true/false: Brokers can hold lotteries for property if there is no purchase required for entry.
True
Sales associates and broker associates are _____ an agent of the broker’s principal.
never
Sales associates and broker associates are only compensated by their _____.
broker
Sales associates and broker associates must report address changes with the DBPR within _____ days.
10
A _____ is a business formed by an individual where the individual is personally liable.
sole proprietorship
true/false: In a real estate brokerage partnership, unlicensed persons can be partners.
true
true/false: Sales associates or broker associates can be partners in a real estate brokerage partnership.
false
In the event that a partnership only has 1 active broker, and that broker resigns or dies, they must find another broker within _____ days. During this time, they can conclude business but not start any new business.
14
true/false: In a real estate brokerage limited partnership, anyone may be a limited partner, licensed or not. Limited partners may not partake in management of the business
true
true/false: In a limited liability brokerage partnership, partners are liable for acts and debts incurred by others.
false
A _____ is an artificial person created by the law.
corporation
true/false: One person in Florida can own a corporation and hold all board positons.
true
A corporation created under Florida law is a _____ corporation.
domestic
A corporation created under laws of another state is a _____ corporation.
foreign
A corporation created under laws of another country is a _____ corporation.
alien
A corporation _____ dissolved by bankruptcy.
is not
A sales associate or broker associate _____ be an officer in a real estate brokerage corporation.
can not
A church is an example of a corporation _____.
sole
A quasi- or not-true partnership is called an ______ partnership.
ostensible
