Section 4: Real Estate Brokerage Operations Flashcards
Antitrust laws
State and federal laws designed to maintain and preserve business competition
Arbitration
A process whereby, with written prior consent from all parties, the matter is submitted to a disinterested 3rd party
Blind advertisement
Advertising that fails to disclose the licensed name of the brokerage firm and only provides a P.O. Box Number, telephone number, and/or street address
Commingle
The illegal practice of mixing a buyer’s, seller’s, tenant’s, or landlord’s funds with the broker’s own money or mixing escrow money with the broker’s personal funds or brokerage funds
Conflicting demands
When the buyer and the seller make demands regarding the disbursement of escrowed property that are inconsistent and can not be resolved.
Corporation
an artificial person or legal entity created by law and consisting of one or more persons that is formed by filing articles of incorporation
Declaratory judgment
Filed with the judge in a court of law if the broker believes that she is entitled to a portion of the disputed escrowed funds
Deposit
Sum of money, or its equivalent, delivered to a real estate licensee as earnest money, payment, or partial payment in connection with a real estate transaction
Earnest money deposit
Also referred to as a good faith deposit.
It is money given as good faith to accompany an offer to purchase or lease real property
Escrow account
An account for the deposit of money held by a third party
Escrow disbursement order
Determination by the FREC of who is entitled to disputed funds
General partnership
an association of 2 or more persons for the purpose of jointly conducting a business together and each to share the profits and losses of the business
Good faith
A party’s honest intent to transact business, free from any intent to defraud the other party, and generally speaking, each party’s faithfulness to his or her duties or obligations as set forth by a contract
Immediately
How soon trust funds must be deposited into an escrow account according to Chapter 475, F.S.
Interpleader
Is 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 the rightful claimant
Limited liability company (LLC)
a form of business organization that offers the best features of a corporation and a partnership; members of a LLC are protected from personal liability as in a corporate form of ownership and the tax advantages of a partnership
Limited liability partnership
Features protection from personal liability in much the same way as limited partners in a limited partnership
Limited partnership
consists of one or more general partners and one or more limited partners
Litigation
is one of the settlement (escape)procedures that provides for the matter to be resolved in a court of law when there are disputing parties regarding escrow funds
Market allocation
Is an agreement between brokers to split up competitive market areas among themselves and not compete in each other’s areas
Mediation
an informal, nonadversarial process intended to reach a negotiated settlement that is NOT binding
Ostensible partnership
exists where the parties do not form a real partnership but act or do business in such a manner that the public, having no knowledge of the private relationship, would reasonably be deceived into believe that a partnership exists.
Personal assistants
Individuals hired by a licensee to perform administrative tasks associated with real estate transactions. The tasks performed by a personal assistant determines whether the assistant must be a real estate licensee
Point of contact information
Refers to any means by which to contact the brokerage firm or individual licensee including mailing addresses, physical addresses, email addresses, telephone numbers, or facsimile telephone numbers, the brokerage firm’s name must be above, below or adjacent to the point of contact information
Policy manual
is a collection of office rules and regulations created to inform sales associates and employees of the standards and procedures in that particular office
Price-fixing
Occurs when competing brokers conspire to establish a standard commission
Sole proprietorship
a business owned by one person with no legal separation between the owner and the business
Telephone solicitation
The initiation of a telephone call for the purpose of encouraging the purchase of, or investment in property, goods, or services
Trust funds
Cash, checks, money orders, or other items that can be converted to cash and that are held by third party in connection with a real estate transaction
How many brokers must be signatories on an escrow account?
At least 1
What are the 3 exceptions to notice requirements?
- Escrow deposits concerning a residential sale contract utilized by HID in HUD-owned property
- Buyers of residential condos who timely deliver written notice of their intent to cancel the contract
- Buyers who in good faith fail to satisfy the terms specified in the financing clause of a contract for sale and purchase
What refund is a tenant entitled to if using a rental list?
75% refund within 30 days of contract or list receipt
What can a sales associate pay a personal assistant to do?
Administrative work if they are licensed
What must be obtained before accepting a post date check?
Seller approval
What information about a title company must be on the sales contract?
- Name
- Address
- Company Name
Who can not be in general partnerships?
Sales associates and broker associates if they are registering as a real estate broker
What are joint ventures used for?
completing a single or fixed number of business transactions
