Chapter 5: Brokerage Operations (FITB & MC)

Question 1

A trade name must be registered with the ____ ____ ____ at the Department of State.

Answer 1

Division of Corporations

Question 2

Sales associates can be stockholders in a brokerage corporation but may not be ____ or ____.

Answer 2

officers or directors

Question 3

A real estate brokerage corporation must have at least ____ active broker serving as an ____.

Answer 3

one officer

Question 4

Anyone licensed or not can be a ____ ____ in a real estate brokerage limited partnership.

Answer 4

limited partner

Question 5

Two or more brokers that share office space but do not maintain their separate status as independent brokers could be charged as being ____ ____.

Answer 5

ostensible partners

Question 6

The party who holds title to corporation sole property is called the ____ ____.

Answer 6

sole titleholder

Question 7

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.

Answer 7

10 days

Question 8

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.

Answer 8

service, license, advised

Question 9

When a broker has conflicting demands for funds held in escrow, he or she must report such conflict to the FREC within ____ days.

Answer 9

15 days

Question 10

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 ____ ____.

Answer 10

declaratory decree

Question 11

A broker who intermingles or commingles business or personal funds with escrowed funds has committed a form of fraud called ____.

Answer 11

commingling

Question 12

Licensees that fail to reveal something material to a buyer’s decision may be charged with ____.

Answer 12

concealment

Question 13

Brokerage firms that operate under a fictitious name are required to register the name with the ____ ____ ____ ____ ____ ____.

Answer 13

Department of Business and Professional Regulations

Question 14

Fraud can occur ____ or ____.

Answer 14

inadvertently, accidentally

Question 15

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.

Answer 15

100%, 30 days

Question 16

Operating in a careless, reckless, excessively negligent manner may result in a broker being charged with ____ ____.

Answer 16

culpable negligence

Question 17

A licensee should advise a customer to obtain an ____ or an ____ ____ ____ from an attorney whenever a question of title arises.

Answer 17

abstract, attorney’s title opinion

Question 18

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

Answer 18

b. a stockholder

Question 19

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.

Answer 19

The partnership must be registered with the Commission, and all six partners must be active real estate brokers.

Question 20

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.

Answer 20

can make earnest money deposits

Question 21

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

Answer 21

c. corporation sole

Question 22

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

Answer 22

b. group

Question 23

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.

Answer 23

c. Sarah may be the only active broker in both corporations by requesting multiple licenses.

Question 24

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.

Answer 24

b. is not a true partnership

Question 25

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

Answer 25

b. the Department of Business and Professional Regulation or its authorizes representatives

Question 26

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

Answer 26

c. corporation sole

Question 27

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.

Answer 27

d. sales associates are permanently assigned to the location.

Question 28

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.

Answer 28

c. Every active broker must maintain a sign at each brokerage office or branch office.

Question 29

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

Answer 29

d. obtaining an attorney’s opinion

Question 30

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.

Answer 30

b. name of the brokerage must be included.

Question 31

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.

Answer 31

a. bank within the state of Florida.

Question 32

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

Answer 32

b. deliver the funds to his or her broker or owner-employer.

Question 33

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.

Answer 33

c. may retain the exact amount of the disputed commission in the escrow account until the dispute is settled.

Question 34

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

Answer 34

a. 100%