Section 4: Real Estate Brokerage Operations

Question 1

Antitrust laws

Answer 1

State and federal laws designed to maintain and preserve business competition

Question 2

Arbitration

Answer 2

A process whereby, with written prior consent from all parties, the matter is submitted to a disinterested 3rd party

Question 3

Blind advertisement

Answer 3

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

Question 4

Commingle

Answer 4

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

Question 5

Conflicting demands

Answer 5

When the buyer and the seller make demands regarding the disbursement of escrowed property that are inconsistent and can not be resolved.

Question 6

Corporation

Answer 6

an artificial person or legal entity created by law and consisting of one or more persons that is formed by filing articles of incorporation

Question 7

Declaratory judgment

Answer 7

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

Question 8

Deposit

Answer 8

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

Question 9

Earnest money deposit

Answer 9

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

Question 10

Escrow account

Answer 10

An account for the deposit of money held by a third party

Question 11

Escrow disbursement order

Answer 11

Determination by the FREC of who is entitled to disputed funds

Question 12

General partnership

Answer 12

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

Question 13

Good faith

Answer 13

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

Question 14

Immediately

Answer 14

How soon trust funds must be deposited into an escrow account according to Chapter 475, F.S.

Question 15

Interpleader

Answer 15

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

Question 16

Limited liability company (LLC)

Answer 16

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

Question 17

Limited liability partnership

Answer 17

Features protection from personal liability in much the same way as limited partners in a limited partnership

Question 18

Limited partnership

Answer 18

consists of one or more general partners and one or more limited partners

Question 19

Litigation

Answer 19

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

Question 20

Market allocation

Answer 20

Is an agreement between brokers to split up competitive market areas among themselves and not compete in each other’s areas

Question 21

Mediation

Answer 21

an informal, nonadversarial process intended to reach a negotiated settlement that is NOT binding

Question 22

Ostensible partnership

Answer 22

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.

Question 23

Personal assistants

Answer 23

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

Question 24

Point of contact information

Answer 24

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

Question 25

Policy manual

Answer 25

is a collection of office rules and regulations created to inform sales associates and employees of the standards and procedures in that particular office

Question 26

Price-fixing

Answer 26

Occurs when competing brokers conspire to establish a standard commission

Question 27

Sole proprietorship

Answer 27

a business owned by one person with no legal separation between the owner and the business

Question 28

Telephone solicitation

Answer 28

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

Question 29

Trust funds

Answer 29

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

Question 30

How many brokers must be signatories on an escrow account?

Answer 30

At least 1

Question 31

What are the 3 exceptions to notice requirements?

Answer 31

• 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

Question 32

What refund is a tenant entitled to if using a rental list?

Answer 32

75% refund within 30 days of contract or list receipt

Question 33

What can a sales associate pay a personal assistant to do?

Answer 33

Administrative work if they are licensed

Question 34

What must be obtained before accepting a post date check?

Answer 34

Seller approval

Question 35

What information about a title company must be on the sales contract?

Answer 35

• Name
• Address
• Company Name

Question 36

Who can not be in general partnerships?

Answer 36

Sales associates and broker associates if they are registering as a real estate broker

Question 37

What are joint ventures used for?

Answer 37

completing a single or fixed number of business transactions