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