Section 5 Multiple Choice Flashcards
On Friday, Rosie Peach, a sales associate, gets a contract and earnest money check for her deal. The Seller accepts the offer that same day, but Monday is a holiday. What is the last day Rosie Peach can give the check to her Broker?
1) Monday
[A] 2) Tuesday
3) Wednesday
4) Thursday
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[Section 5C, Slides 14 & 15]
You sell Johnny a rental list that was to only include pet friendly rentals. Johnny found the list to be inaccurate and requested a refund in writing. How much is he entitled to as a refund?
[A] 1) 100%
2) 75%
3) 25%
4) 0%
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[Section 5E, Slide 20]
Which business entity may register as a real estate brokerage?
1) Joint Venture
2) Corporation Sole
3) A business trust
[A] 4) Nonprofit corporation
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[Section 5G, Slide 65]
Irving, the broker of Crustacean Realty, had conflicting demands from a buyer and a seller regarding an escrow deposit held by the brokerage. The settlement procedure Irving elects is to deposit the money with the court as he does not intend for the brokerage to make a claim on the deposit. Which of the following requests to the court would Irving make?
1) Request a declaratory judgment
[A] 2) Request an interpleader
3) Request a stipulation
4) Request a recommended order
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[Section 5D, Slides 77 & 78]
Which statement is TRUE regarding a title company holding the escrow funds?
1) The broker must be a signatory on the title company’s escrow account
2) Within 5 business days after the deposit is due, the broker must confirm that the deposit was made
3) If the buyer and seller make demands for the escrowed funds, the broker must make a timely report of conflicting demands to the DBPR
[A] 4) Within 10 business days after the date the broker requests written verification of receipt of the deposit, the broker must provide the seller’s broker with a copy of the verification
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[Section 5C, Slides 32-34]
Real estate agent Nancy Biggens is printing new business cards to advertise her real estate services. She is a broker who owns her own brokerage operating under her own name - but she is not a member of the National Association of REALTORS®. She may display her name on the cards in the following ways except which way?
1) Nancy Biggens, Broker
[A] 2) Nancy Biggens, REALTOR®
3) Nancy Biggens, Broker/Owner
4) Nancy Biggens
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[Section 5A, Slides 106 & 107]
Which of the following situations is not an example of an illegal kickback?
1) A manager of an apartment complex paying a tenant a $100 referral fee
2) A broker paying an unlicensed person a referral fee
[A] 3) A broker sharing part of the commission with the buyer
4) A broker paying a licensed mortgage broker a referral fee
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[Section 5F, Slide 43]
Which sales professional is allowed to use the phrase REALTOR® to describe his services?
1) A broker with an active real estate license that doesn’t belong to any associations as she engages only in referral activities to other agents
[A] 2) A sales associate who has joined his local board of REALTORS® and the National Association of REALTORS®
3) An agent with more than five years of active selling experience
4) Anyone who has passed the broker level exam
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[Section 5A, Slides 106 & 107]
The brokers of Greater Gulf Realty and Brackish Bay Realty agreed to only work with clients near their own offices to allow each to be able to get more fees per home sold. This is illegal and an example of what?
1) Redlining
2) Price fixing
[A] 3) Market allocation
4) Mutual agreement
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[Section 5F, Slide 11]
A licensed real estate sales associate and broker desire to open a new real estate brokerage firm as general partners. They may do which of the following?
1) Be registered as a joint venture
2) Register the partnership with the broker as the required active broker partner and the sales associate as a junior partner
3) Not register as a partnership. However, they can incorporate and register as a corporation with the sales associate as vice president and the broker as president
[A] 4) Not do so
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[Section 5G, Slide 52]
Jessi, an unlicensed real estate assistant, may not do which of the following activities?
1) Assemble documents for closing
2) Order items of repair as directed by the licensee
3) Place routine calls regarding late rental payments
[A] 4) Show listed property
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[Section 5F, Slides 63-71]
Broker Clarence wants to open a brokerage office in her home. What conditions for the office must be met?
1) a dedicated telephone line in one enclosed room
[A] 2) one enclosed room in a building of stationary construction and an entrance sign
3) a dedicated telephone line in one enclosed room with a locked filing cabinet
4) home offices are exempt from office requirements
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[Section 5A, Slide 25]
An owner of an apartment complex pays a previous tenant a $50 finder’s fee for referring a person who becomes a new tenant. What is this arrangement NOT considered to be?
1) An illegal kickback.
[A] 2) Legal unless the previous tenant has a real estate license.
3) An example of unlicensed activity under Chapter 475, Florida Statutes
4) Legal unless the new tenant is informed of the payment.
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[Section 5F, Slide 51]
A sales associate received an earnest money deposit on Tuesday. The sales associate forgot about the check and gave it late to his Broker on Thursday. By when must the broker make the deposit?
[A] 1) By the end of the day Friday
2) By noon on Friday
3) By end of day Tuesday
4) By end of day Monday
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[Section 5C, Slides 23-26]
Buyer Ralph didn’t like the results of an inspection report. He requested to cancel his contract and demanded his earnest money back. Seller Heather denied his request noting that he was one day past the time that was allotted to cancel the contract. Buyer Ralph claimed Seller Heather was miscounting the dates and both demanded that Broker Smith return the money to each of them. Broker Smith waited 15 days, hoping the situation would resolve, before notifying the FREC of the conflicting demands. How long does Broker Smith have left to implement a settlement procedure?
1) 5 days
2) 10 days
[A] 3) 15 days
4) 30 days
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[Section 5D, Slides 41 & 42]
