Chapter 7: Sales associate Guide to Brokerage Activities Flashcards
Advance Fee
Collection of a fee prior to a transaction actually closing. The funds are typically utilized for advertising or marketing expenses.
Blind Advertisement
An advertisement of a principal’s property providing only a telephone number, a post office box and/or an address without the licensed name of the brokerage firm
Commingle
To mix together money or a deposit with personal funds; combine
Conflicting Demands
When the buyer and seller make demands for a deposit
Conversion
An unauthorized act of using the funds or property of another for one’s own use
Corporation
An artificial or fictitious person formed to conduct specified types of business activities
Earnest Money Deposit
Money given as evidence of good faith to accompany an offer to purchase or rent
Escrow Account
A depository account in a bank, title company, credit union, savings association or trust company used solely for safekeeping customer funds and not for deposit of personal funds; impound account
General Partnership
Two or more parties in business together, each to share the profits and losses of business
Good Faith Doubt
When circumstance creates the overwhelming belief that a dispute may occur
Interpleader
A legal proceeding where the disputed money is deposited with the Court and the Judge decides who should receive the money
Kickback
A portion of monies received because of an agreement for referring a party to a particular vendor for services
Limited Liability Company
A business entity that may operate a real estate brokerage having characteristics similar to a partnership and a subchapter “S” corporation
Limited Liability Partnership
An alternative, hybrid business entity with the combined characteristics and benefits of both limited partnerships and S corporations
Limited Partnership
A business entity consisting of one or more general partners and one or more limited partners
Ostensible Partnership
A partnership formed, not by agreement, but by the representations or conduct of two or more parties that cause others to believe that a partnership exists. The parties become liable for the actions of the other
Point of Contact Information
Any means by which to contact the brokerage firm or individual licensee including mailing address (es), physical street address (es), e-mail address (es), telephone number(s) or facsimile telephone number(s)
Sole Proprietorship
Operating as an individual in business
Trade Name
Any adopted or fictitious name used to designate a business concern
Officers of a real estate corporation must be either active brokers or:
Registered
By definition, a real estate broker’s office:
Must be of stationary construction with an enclosed room where negotiations can take place and records are kept
The official sign on or about the entrance to a real estate brokerage must include all of the following except:
A Name of the broker B Name of the sales associates, if any C Name of the brokerage entity, if any D Licensed (or Lic.) real estate broker
Name of the sales associates, if any
A blind advertisement is a real estate advertisement that does not include which of the following:
A The address of the subject property B The price of the subject property C The name of the real estate brokerage D The address of the real estate brokerage
C The name of the real estate brokerage
Broker Alan accepts an earnest money deposit from a buyer. Instead of depositing the money in his escrow account, Alan deposits the money into his personal account. Alan could be criminally charged with which of the following:
A Failure to account and deliver B Conversion C Misrepresentation D False pretenses
B Conversion
Sales associate Sandy receives an earnest money deposit from a buyer on Monday. What is the deadline for the broker to properly deposit the funds into an escrow account?
End of the day Thursday
After a broker has received conflicting demands for escrowed funds, the broker must notify the Florida Real Estate Commission within how many days?
15 business days
What must a broker do if they want to move their branch office location?
Acquire a new branch office registration and pay the appropriate fee to the Division of Real Estate
Who is ultimately responsible for advertising placed by a real estate brokerage?
The broker
In Florida, corporations are created through which state agency?
Department of State
PRIOR TO CONTRACT, a buyer directs a broker to move an earnest money deposit from a non-interest bearing account to an interest bearing account. How should the broker respond?
Move the deposit to an interest bearing account, even without the seller’s consent
Violation of rental list rules is a first degree misdemeanor. What are the maximum penalites for this type of crime?
Up to 1 year in in jail and/or up to a $1,000 fine
In order to resolve a dispute over an earnest money deposit, a broker can request an Escrow Disbursement Order from which of the following:
Florida Real Estate Commission
Ed purchased a rental list from a Florida broker for $100.00. After visiting all the rental properties stated on the list, Ed decided not to move from his present apartment. The next day, Ed verbally requested a 100% refund. Which of the following statements best describes Ed’s legal rights?
A Ed is entitled to a 100% refund
B Ed is entitled to no refund if the list was
accurate
C Ed is entitled to a 75% refund
D Ed is entitled to a 50% refund
Ed is entitled to a 75% refund
In addition to his principal office, Broker Gary temporarily works out of a trailer parked in front of a subdivision Gary is listing. At the trailer, Gary greets buyers and writes up offers and contracts. What notice, if any, must Gary provide the DRE about the trailer?
Register the trailer as a branch office
All of the following are authorized to operate as a real estate brokerage, except:
A Partnership B Limited partnership C Corporation D Joint venture
D Joint venture
If a buyer makes an earnest money deposit payable to a broker associate, how should the broker associate handle this situation?
The broker associate should endorse the check and deliver it to their broker immediately
Sales associate Bob sees a “For Sale By Owner” sign on his way to work. When he arrives at the office, Bob calls the owner to try and get them list the property with Bob’s brokerage firm. When Bob identifies himself as a real estate licensee, the owner gets angry and tells Bob that he shouldn’t be calling because the owner’s name is on the Federal “No Solicitation List”. Has Bob broken the law by calling the owner?
While it is not a violation of Florida Law, it is a violation of federal Law. The licensee should have checked both the Federal and State Do no t call lists.
Which of the following may appear on a brokerage official sign?
All of the above
