Real Estate Brokerage Operations

Question 1

The act of having a third party render a blinding decision in a dispute between two parties.

Answer 1

Arbitration

Question 2

An advertisement that provides only a telephone number, a post office box, and/or and address without the licensed name of the brokerage firm.

Answer 2

Blind advertisement

Question 3

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

Answer 3

Commingle

Question 4

When different parties each make claims that are inconsistent with one another.

Answer 4

Conflicting demands

Question 5

Unauthorized use or retention of money or property that rightfully belongs to another person.

Answer 5

conversion

Question 6

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

Answer 6

Corporation

Question 7

Earnest money or some other valuable consideration given as evidence of good faith to accompany an offer to purchase or rent.

Answer 7

Deposit

Question 8

A type of money that a broker may handle for others in the ordinary course of business; also referred to as good-faith deposit or binder deposit.

Answer 8

Earnest money deposit

Question 9

An 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 or trust account.

Answer 9

Escrow account

Question 10

An association of two or more persons for the purpose of jointly conducting a business, each being responsible for all the debts incurred in the conducting of that business.

Answer 10

General partnership

Question 11

A party’s honest intent to transact business, free from any intent to defraud the other party; each party’s faithfulness to one’s duty or obligations set forth by contract.

Answer 11

Good faith

Question 12

1. John Anderson is a licensed real estate sales associate. Under which name may he register and be licensed?
   a. Complete Real Estate Sales Services
   b. John Anderson Brokerage
   c. John Anderson, LLC.
   d. John Anderson and Partners.

Answer 12

C

Question 13

3. Real estate brokerage trust funds may NOT be deposited into a
   a. federally insured bank
   b. credit union
   c. savings association
   d. life insurance company

Answer 13

D

Question 14

The time peril during which a broker must deposit escrow funds; no later than the end of the third business day after the broker’s sales associate or an employee has received the funds.

Answer 14

Immediately

Question 15

A course of action when two contesting parties cannot reach an arbitrated agreement; a legal proceeding whereby the broker, having no financial interest in the disputed funds,, deposits with the court the disputed escrow deposit so that the court can determine who is the rightful claimant.

Answer 15

Interpleader

Question 16

Payment of money from someone other that the buyer or seller associated with real estate business.

Answer 16

Kickback

Question 17

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

Answer 17

Limited liability company (LLC)

Question 18

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

Answer 18

Limited partnership

Question 19

A lawsuit; the act of carrying on a lawsuit; a case before a court of law.

Answer 19

litigation

Question 20

The act of having a third party attempt to reconcile a dispute between two parties.

Answer 20

mediation

Question 21

Dealing as an individual in business.

Answer 21

sole proprietorship

Question 22

The initiation of a telephone call for the purpose of encouraging the purchase of, or investment in, property, goods, or services.

Answer 22

telephone solicitation

Question 23

Cash, checks, money orders, and items that can be converted into cash, such as deeds and personal property, that a person (broker) holds in trust for another person.

Answer 23

trust funds