Opening a Real Estate Office

Question 1

What are some faces about a sole proprietorship brokerage.

Answer 1

Does not have to register with the secretary of state

Sole Proprietor brokerage firm must be the broker.

Make it on your own loose it on your own.

Must register with the the DBPR

Must register trade name with DBPR if applicable

Question 2

What are some facts about a general partnership

Answer 2

Each partner is totally and individually liable for the debts and torts of partnership.

Does not have to register with the department of state.

Two or more persons are involved.

At least one partner must be a broker.

Question 3

What is an Ostensible Partnership

Answer 3

Quasi Partnership - exists when there is no real partnership.

Ostensible partnerships are considered fraudulent and deceitful.

Both brokers are responsible if no disclosure.

If disclosed, only 2nd broker responsible.

Question 4

Can a sales associate or broker associate be general partners in a limited partnership?

Answer 4

Sales associates and broker associates can not be general partners is a real estate brokerage limited partnership however they can be limited partners.

Limited partners are regarded as stockholders in a corporation. They do not make the business decisions for the firm.

Question 5

What is a foreign corporation

Answer 5

a corporation formed out of the state of Florida

Question 6

What is an alien corporation.

Answer 6

a corporation formed outside of the united states.

Question 7

What is a domestic corporation

Answer 7

a corporation formed in the state of Florida.

Question 8

What are the advantages and disadvantages of a corporation.

Answer 8

Advantages
Limited personal liability.
(FREC can pierce the vail of a corporation)

Disadvantages
Double taxation.

Remember corporations are registered and people are licensed.

Question 9

What type of corporation can not be registered as a real estate brokerage.

Answer 9

A corporation sole can NOT be a registered real estate brokerage entity.

A corporation sole is an ecclesiastical or a church organization.

Question 10

What is a Joint Venture

Answer 10

temporary form of business relationship. For a single or predetermined number of transactions. I.E. a coop sale.

Question 11

Can a cooperative association register as a real estate brokerage?

Answer 11

No, it can conduct commercial business and it may convey, sell, or buy its own property but it can not perform real estate services for others and cannot be register as a real estate brokerage.

Question 12

How do you know if an office is a branch office or a temporary shelter?

Answer 12

1) Do you advertise to buyers to go directly to the location. If so it is a branch office.
2) Do you advertise to buyers to call the office directly. If so it is a branch office.
3) Do you keep your permanent records at the office. If so it is a branch office.

If any of the above three are completed it is a branch office.

Question 13

What is required on entrance signage for a brokerage firm?

Answer 13

Must be displayed on the interior or exterior of the entrance door. The sign must contain the following.

1) Easily observed and read.
2) Trade name (if used)
3) Brokers Name
4) the words “ Licensed Real Estate Broker” or “Lic. Real Estate Broker”.

Optional:
Listing the sales or broker associates.

Question 14

What is a blind advertisement

Answer 14

an advertisement that is NOT worded so that a reasonable person would know they are dealing with a real estate licensee.

Question 15

What is FRECs preferred way to advertise?

Answer 15

Full Name
Company Name
Office Phone #
Personal Phone #

Question 16

What is point of contact information.

Answer 16

refers to any means by which to contact the brokerage firm.

Question 17

When advertising financing what must be included.

Answer 17

Specific finance information such as amount of money required for down payment must be accompanied by the exact amount required down, terms of repayment, and the APR.

If you use one detailed amount of information you have to use it all. Regulation Z ( Triggering Terms)

Much easier to just use generic terms such as owner will finance.

Question 18

What are some facts about the Fair Housing Act

Answer 18

It is a false statement if the seller in writing instructs you not to show a house based on a persons ethnic backgrounds.

Question 19

When dealing with fair housing act issues when should you continue and when should you withdrawal.

Answer 19

Withdrawal
When race is discussed in general terms

When to continue
A polish buyer goes to a polish broker who has a listing with a polish seller in a polish neighborhood. If the polish buyer wants to see the house what do you do? Assume he likes the architectural structure of the house. Not based on race.

Question 20

What are some facts about rental lists and the sale of rental lists.

Answer 20

must give notice in 10 point bold or larger font that a prospective tenant who does not obtain a rental by purchasing a rental list is entitle to 75% of fee back if requested within 30 days of receipt.

If the list is inaccurate in ANY way then the broker must give a 100% refund.

Penalty for advertising rental property information or lists that are not current is illegal and a first degree misdemeanor which is subject to a fine up to $1000 and/or imprisonment for up to 1 year.