Chapter 5: Brokerage Operations (FITB & MC) Flashcards
A trade name must be registered with the ____ ____ ____ at the Department of State.
Division of Corporations
Sales associates can be stockholders in a brokerage corporation but may not be ____ or ____.
officers or directors
A real estate brokerage corporation must have at least ____ active broker serving as an ____.
one officer
Anyone licensed or not can be a ____ ____ in a real estate brokerage limited partnership.
limited partner
Two or more brokers that share office space but do not maintain their separate status as independent brokers could be charged as being ____ ____.
ostensible partners
The party who holds title to corporation sole property is called the ____ ____.
sole titleholder
Sales associates and broker associates must report any change of employer or address change to the DBPR with ____ days on a form prescribed for such use.
10 days
For a broker to legally be paid a kickback or rebate, he or she must have performed a ____, held an appropriate ____, and all parties must be ____ of the payment.
service, license, advised
When a broker has conflicting demands for funds held in escrow, he or she must report such conflict to the FREC within ____ days.
15 days
A broker who feels he or she is entitled to some or all of escrowed funds that are the subject of a dispute may submit the dispute to the court by filing an action for a ____ ____.
declaratory decree
A broker who intermingles or commingles business or personal funds with escrowed funds has committed a form of fraud called ____.
commingling
Licensees that fail to reveal something material to a buyer’s decision may be charged with ____.
concealment
Brokerage firms that operate under a fictitious name are required to register the name with the ____ ____ ____ ____ ____ ____.
Department of Business and Professional Regulations
Fraud can occur ____ or ____.
inadvertently, accidentally
If rental information is sold to a prospective tenant, and the information is found to be materially incorrect, the applicant may request a refund of ____, provided the request is made within ____ days of the date of the contract.
100%, 30 days
Operating in a careless, reckless, excessively negligent manner may result in a broker being charged with ____ ____.
culpable negligence
A licensee should advise a customer to obtain an ____ or an ____ ____ ____ from an attorney whenever a question of title arises.
abstract, attorney’s title opinion
A sales associate licensed with a real estate brokerage corporation can be
a. an officer
b. a stockholder
c. a director
d. an officer and a director
b. a stockholder
Six individuals decide to form a real estate brokerage partnership. All six individuals are planning to be active in real estate sales. Which best applies?
a. The partnership must be registered with the Commission, and all six partners must be active real estate brokers.
b. At least one partner must be licensed as an active broker.
c. Only two partners may have a real estate license.
d. A partnership cannot be formed as a brokerage business.
The partnership must be registered with the Commission, and all six partners must be active real estate brokers.
A broker associate licensed with a real estate brokerage partnership:
a. can be a member of the partnership.
b. can make earnest money deposits.
c. cannot manage the office.
d. cannot supervise licensed sales associates.
can make earnest money deposits
Which of the business forms listed below CANNOT register to conduct real estate transactions?
a. corporation for profit
b. corporation not for profit
c. corporation sole
d. limited partnership
c. corporation sole
A sales associate is licensed under an owner-developer that owns several affiliated organizations. Should the employer wish to have the sales associate provide real estate services for these various organizations, what type of license should the sales associate request?
a. multiple
b. group
c. corporate
d. branch office
b. group
Sarah is an actively licensed broker for XYZ Realty, a registered real estate brokerage corporation. She has an opportunity to buy an existing real estate corporation, BBD Realty, Inc., in a town 25 miles away and wants to become the only broker for both corporations. She does not wish to change the name or combine the two corporations. How may Sarah accomplish this?
a. The corporations will have to be merged into one entity as Sarah cannot be a broker within two different corporations.
b. Sarah may be the only active broker in both corporations by requesting a group license.
c. Sarah may be the only active broker in both corporations by requesting multiple licenses.
d. BBD should be registered as a branch of XYZ Realty, Inc.
c. Sarah may be the only active broker in both corporations by requesting multiple licenses.
An ostensible partnership
a. is required to file documents with the Secretary of State.
b. is not a true partnership.
c. cannot be created by real estate brokers.
d. will not be treated as though the participants were partners.
b. is not a true partnership
Who has the right to inspect a broker’s escrow account records?
a. the parties to a real estate transaction.
b. the Department of Business and Professional Regulation or its authorizes representatives
c. the state Attorney General
d. a public defender
b. the Department of Business and Professional Regulation or its authorizes representatives
Which business is NOT required to file documents with the state?
a. corporation for profit
b. corporation not for profit
c. corporation sole
d. cooperative association
c. corporation sole
A location would be required to register as a brokerage branch office if
a. tables and chairs are provided for sales associates and customers.
b. the location is used as a shelter to get out of the sun or rain.
c. literature is handed out containing the broker’s office address.
d. sales associates are permanently assigned to the location.
d. sales associates are permanently assigned to the location.
Which statement best describes the sign required for a brokerage firm?
a. Only one sign per firm is required regardless of the number of offices.
b. Each sales associated associated with the firm must have a separate sign.
c. Every active broker must maintain a sign at each brokerage office or branch office.
d. Office signs are permitted but not required by law.
c. Every active broker must maintain a sign at each brokerage office or branch office.
Which method is NOT an authorized alternative for a broker to use in resolving an escrow dispute.
a. seeking an escrow disbursement order from the Commission
b. submitting the escrow dispute to mediation or arbitration
c. seeking a court decision to resolve the escrow dispute
d. obtaining an attorney’s opinion
d. obtaining an attorney’s opinion
When a real estate brokerage firm advertises listed property, the
a. name of at least one sales associate must be included.
b. name of the brokerage must be included.
c. ad is not allowed to be prepared by sales associates.
d. names of sales associates are not allowed to be included.
b. name of the brokerage must be included.
Approved depositories for earnest money include a
a. bank within the state of Florida.
b. stock brokerage firm.
c. broker’s personal checking account.
d. safe in a real estate office.
a. bank within the state of Florida.
A real estate sales associate that has received an earnest money deposit must
a. deposit the funds in an insured bank account.
b. deliver the funds to his or her broker or owner-employer.
c. deposit the funds in an escrow account.
d. deposit the funds with the FREC
b. deliver the funds to his or her broker or owner-employer.
If a commission dispute arises prior to closing, the broker
a. may retain the entire amount of escrowed funds until the dispute is resolved.
b. must withdraw the amount of commission from the escrow account.
c. may retain the exact amount of the disputed commission in the escrow account until the dispute is settled.
d. must deliver the entire amount of the escrowed funds at closing.
c. may retain the exact amount of the disputed commission in the escrow account until the dispute is settled.
What percentage of the fee paid may a prospective tenant receive as a refund when provided with inaccurate information?
a. 100%
b. 75%
c. 25%
d. none
a. 100%
