Chapter 7: Sales associate Guide to Brokerage Activities

Question 1

Advance Fee

Answer 1

Collection of a fee prior to a transaction actually closing. The funds are typically utilized for advertising or marketing expenses.

Question 2

Blind Advertisement

Answer 2

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

Question 3

Commingle

Answer 3

To mix together money or a deposit with personal funds; combine

Question 4

Conflicting Demands

Answer 4

When the buyer and seller make demands for a deposit

Question 5

Conversion

Answer 5

An unauthorized act of using the funds or property of another for one’s own use

Question 6

Corporation

Answer 6

An artificial or fictitious person formed to conduct specified types of business activities

Question 7

Earnest Money Deposit

Answer 7

Money given as evidence of good faith to accompany an offer to purchase or rent

Question 8

Escrow Account

Answer 8

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

Question 9

General Partnership

Answer 9

Two or more parties in business together, each to share the profits and losses of business

Question 10

Good Faith Doubt

Answer 10

When circumstance creates the overwhelming belief that a dispute may occur

Question 11

Interpleader

Answer 11

A legal proceeding where the disputed money is deposited with the Court and the Judge decides who should receive the money

Question 12

Kickback

Answer 12

A portion of monies received because of an agreement for referring a party to a particular vendor for services

Question 13

Limited Liability Company

Answer 13

A business entity that may operate a real estate brokerage having characteristics similar to a partnership and a subchapter “S” corporation

Question 14

Limited Liability Partnership

Answer 14

An alternative, hybrid business entity with the combined characteristics and benefits of both limited partnerships and S corporations

Question 15

Limited Partnership

Answer 15

A business entity consisting of one or more general partners and one or more limited partners

Question 16

Ostensible Partnership

Answer 16

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

Question 17

Point of Contact Information

Answer 17

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)

Question 18

Sole Proprietorship

Answer 18

Operating as an individual in business

Question 19

Trade Name

Answer 19

Any adopted or fictitious name used to designate a business concern

Question 20

Officers of a real estate corporation must be either active brokers or:

Answer 20

Registered

Question 21

By definition, a real estate broker’s office:

Answer 21

Must be of stationary construction with an enclosed room where negotiations can take place and records are kept

Question 22

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

Answer 22

Name of the sales associates, if any

Question 23

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

Answer 23

C The name of the real estate brokerage

Question 24

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

Answer 24

B Conversion

Question 25

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?

Answer 25

End of the day Thursday

Question 26

After a broker has received conflicting demands for escrowed funds, the broker must notify the Florida Real Estate Commission within how many days?

Answer 26

15 business days

Question 27

What must a broker do if they want to move their branch office location?

Answer 27

Acquire a new branch office registration and pay the appropriate fee to the Division of Real Estate

Question 28

Who is ultimately responsible for advertising placed by a real estate brokerage?

Answer 28

The broker

Question 29

In Florida, corporations are created through which state agency?

Answer 29

Department of State

Question 30

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?

Answer 30

Move the deposit to an interest bearing account, even without the seller’s consent

Question 31

Violation of rental list rules is a first degree misdemeanor. What are the maximum penalites for this type of crime?

Answer 31

Up to 1 year in in jail and/or up to a $1,000 fine

Question 32

In order to resolve a dispute over an earnest money deposit, a broker can request an Escrow Disbursement Order from which of the following:

Answer 32

Florida Real Estate Commission

Question 33

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

Answer 33

Ed is entitled to a 75% refund

Question 34

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?

Answer 34

Register the trailer as a branch office

Question 35

All of the following are authorized to operate as a real estate brokerage, except:

    A     Partnership
B	Limited partnership
C	Corporation
D	Joint venture

Answer 35

D Joint venture

Question 36

If a buyer makes an earnest money deposit payable to a broker associate, how should the broker associate handle this situation?

Answer 36

The broker associate should endorse the check and deliver it to their broker immediately

Question 37

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?

Answer 37

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.

Question 38

Which of the following may appear on a brokerage official sign?

Answer 38

All of the above