Section 5 Flashcards
Each real estate brokerage must open and register a brokerage office with
The DBPR
To physically qualify as an office, the location need only have
one enclosed room in a building of stationary construction
A broker associate or sales associate can register as
individual (Sole proprietor)
professional corporation (P.A.)
limited liability company (LLC)
professional limited liability company (PLLC)
If the name that is advertised is a trade name rather than the legal name of the broker, then that name must be registered with
the DBPR
If advertising is not clear that a real estate brokerage is involved, and the real estate broker is not clearly identified, the advertising is called
Blind advertisement
Blind advertisement is
illegal
Licensees that include their name in advertisements must include their
last name exactly as it is registered with the DBPR
False, deceptive, or misleading information in advertisements for real estate is
illegal and is a second-degree misdemeanor
Who maintains Florida’s Do Not Call Registry?
Dept. of Agriculture & Consumer Services
Licensees attempting to contact someone on the Florida Do Not Call Registry for the purpose of soliciting a listing may do so if
They are a FSBO
The fine for contacting someone on the FLORIDA Do Not Call Registry is
$10,000 per call
FSBO’s may not be contacted if they are on the
Federal Do Not Call Registry
The fine for contacting someone on the FEDERAL Do Not Call Registry is
$16,000 per call
TCPA limits sales calls to residences to between
8am and 9pm
Per the Telephone Consumer Protection Act of 1991, brokerages must maintain
a company wide do not call list
A consumer who has ask not to be called must remain on the internal do no call list for
5 years
A brokerage with which a consumer has an established business relationship may call for up to ____ _____ after the consumer’s last purchase or last delivery, or last payment.
18 months
If a consumer makes an inquiry or submits an application to the brokerage, all licensees within the brokerage may call the consumer for up to ____ ______
3 months
_____ ______ is not to be deposited into a broker’s general operating account.
Earnest Money
A real estate licensee who has been given an escrow deposit must deliver the deposit to the licensee’s
broker by
the end of the next business day
The broker must deposit the check in the escrow account no later than
the end of the third business
day following the date the LICENSEE received the deposit
the buyer’s broker shall make written request to the title company (attorney) for verification of receipt of deposit within
10 business days
after the broker made a written request, the buyer’s broker must provide the
seller’s broker with a copy of written verification within
10 business days
If an escrow fund is placed in an interest bearing escrow account, all parties involved must
sign authorization of how the interest is to be distributed.
the ______ must be a signatory on all brokerage escrow accounts.
broker
A broker may place and maintain up to $_____ of personal or brokerage funds into a sales escrow
account.
1000
A broker may place and maintain up to $_____ of personal or brokerage funds into each property
management escrow account.
5000
A broker shall have___ ____ from the date the last reconciliation statement was performed or should
have been performed to correct escrow errors if there is no shortage of funds and such errors pose no significant threat to economically harm the public.
30 days
When there is a good-faith doubt, the broker must provide written notification to FREC within __ _____ ___ of the last party’s demand.
15 business days
Within __ _____ ___ of good-faith doubt, the broker must institute one of the settlement procedures as set forth in Section 475.25
30 business days
the broker must notify FREC about the settlement procedure
implemented within
30 business days
If the broker is notified in writing by FREC that no Escrow Disbursement Order will be issued by
FREC, then the broker has a ___ ____ to institute a different settlement procedure and notify
the Commission of the procedure chosen.
30 days
if an EDO is no longer needed, the broker must notify the Commission within
10 business days
_______ is not binding to the parties as an EDO.
Mediation
Since it is binding, all parties must agree to the ______ procedure in advance and in
writing.
arbitration
Florida law provides for a broker who has chosen NOT to have a right to any of the deposit to
submit the matter to the courts and request an
interpleader
When the broker is making a claim on the deposit, the broker would request a
declaratory judgment
If the prospective tenant fails to obtain a rental, the person is entitled to a ___% refund if a request
for the refund is made within 30 days of having received the list
75
If the prospective tenant fails to obtain a rental, the person is entitled to a 75% refund if a request
for the refund is made within ___ days of having received the list
30
If the rental information list provided by the broker or sales associate to a prospective tenant is not
current or accurate in any material respect, ___% of fee shall be repaid to the prospective
tenant upon demand
100
Selling rental lists that are not current or accurate is a first-degree misdemeanor and punishable by
up to one year of imprisonment and/or fine of up to $1,000
Selling rental lists that are not current or accurate is a ____ ______ ___________and punishable by up to one year of imprisonment and/or fine of up to $1,000
first degree misdemeanor
Real estate licensees must not offer opinions of
title marketability
When marketing a property for sale or presenting it to a prospective buyer, licensees must take care
not to misrepresent the
value of the property
Misrepresenting the value of property by a licensee may result in both the licensee and the broker
being found guilty of three charges:
fraud, breach of contract, and breach of trust.
Price Fixing and Market Allocation violate
Antitrust laws
In all cases, only the _______ can be paid by a party for real estate services.
broker
A _______ may not sue a buyer or seller for compensation.
licensee/real estate agent
It is lawful to pay a $___ referral fee to a current tenant of an apartment complex for finding a
tenant
50
It is unlawful for a licensee to pay any unlicensed person for performing
real estate services
whenever a change in employer is made, A sales associate must inform FREC within
10 days
Duplication of records from a previous employer constitutes
a breach of trust and theft
Licensees must notify DBPR within ___ days of change to current mailing address
10
If advertising is not clear that a real estate brokerage is involved, and the real estate broker is not clearly
identified, the advertising is called
blind advertising
Mixing trust funds from another with the agent’s personal or business funds.
commingle
Both buyer and seller claim the right to earnest monies
conflicting demands
the appropriation of property belonging to another.
conversion
a down payment and part of the purchase price paid in cash up front, reducing the amount
of the purchase price, loan or mortgage
deposit
a sum of money given to bind the sale of real estate
earnest money
a sum of money given to ensure payment or an advance of funds in the processing of a loan
earnest money
a special account for the purpose of “escrowing” or placing the money in “trust.”
escrow account
a determination by FREC as to who is entitled to disputed funds.
escrow dismemberment order
When more than one person joins together to operate a business, they share in the profits and responsibilities including the legal and tax liabilities.
general partnership
when it is not clear which party should receive the escrowed property
good-faith doubt
a payment for doing a task related to a real estate transaction. However, the task itself
cannot be something that actually requires a real estate license to perform
kickback
the term used to describe proceedings initiated between two opposing parties to enforce or
defend a legal right.
litigation
the attempt to settle a legal dispute through active and neutral participation of a third party
mediation
the appearance of a partnership due to
how multiple individuals are presenting themselves to the public giving the appearance that they are a
partnership.
ostensible partnership
Brokerages agreeing among themselves to charge a certain set commission.
price fixing
Refers to 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).
point of contact information
