Section 5 Review Flashcards
Each real estate brokerage must open and register a brokerage office with who?
DBPR
To physically qualify as an office, the location need only have what?
at least one enclosed room in a building of stationary construction.
FREC has a right to require the broker to register that location as a branch office and pay associated fees if?
Broker is giving the appearance that a location is a real estate office
Prior to registering an out-of-state office or branch office, the broker must first?
agree in writing to cooperate with any investigation by the DBPR, DRE, or FREC
Sales associates must be registered and work under direction and control of?
broker’s office or branch office.
A broker associate or sales associate can register as?
Individual/professional corporation (P.A.)
Limited liability company (LLC)
professional limited liability company (PLLC)
A broker associate or sales associate is not permitted to register or be licensed as?
general partner (GP) member (M) manager (M) officer (O) director of a brokerage firm (DBF)
Brokers must maintain a noticeable easy to read sign at the entrance of the principal office and branch offices. What 3 things must these signs contain?
Name of the broker
Business Name.
the words “licensed real estate broker” or “lic. real estate broker”
what is not deemed to be a branch office?
A mere temporary shelter where transactions are not closed and salespersons are not permanently assigned
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 Department of Business and Professional Regulation.
what is blind advertising?
unclear that a real estate brokerage is involved, and the real estate broker is not clearly identified. This is illegal
Licensees, that include their name in advertisements must also include what?
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 what kind of crime?
second-degree misdemeanor.
All internet advertisements must include what?
Brokerage name positioned adjacent to or immediately above or below the point of contact information.
if the licensee includes contact information in print advertisement the licensee must clearly indicate what?
that the contact information is for the licensee rather than the broker.
Faxes may only be sent to recipients for which the brokerage has an established business relationship. The fax number should have been provided voluntarily by the recipient for the purpose of receiving faxes. They must also contain what?
Clearly stated opt-out procedures. Requests for opt-outs must be honored within 30 days.
The Dept. of Agriculture & Consumer Services maintains what?
Florida’s Do Not Call Registry.
Can a Licensees contact a For-sale-by-owner that is on the Florida Do Not Call Registry for the purpose of soliciting a listing?
YES
The fine for contacting someone on the FloridaDo Not Call Registry is?
$10,000 per infraction.
Federal law prohibits for-sale-by-owners from being contacted if they are on the ?
Federal Do Not Call Registry for the purpose of soliciting a listing.
Fines are up to $_____ per call for breaking the Federal Do Not Call Registry.
$16,000
Per the Telephone Consumer Protection Act of 1991, brokerages must maintain company wide Do Not Call lists of consumers who have asked not to be called for how long?
five years
TCPA limits sales callsto residences to between what times?
8 a.m. and 9 p.m., local time.
A brokerage with which a consumer has an established business relationship may call for up to ___ months after the consumer’s last purchase or last delivery, or last payment.
18
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 __ months.
3 months
Per Florida statute, an escrow account must be held where?
title company having trust powers, bank, credit union or trust company, or a savings and loan association within the State of Florida.
Earnest money is not to be deposited where?
into a broker’s general operating account.
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 ?
end of the third business day following the date the LICENSEE received the deposit.
If a title company is to hold trust funds, it must be agreed upon on what document and what info must be included?
the purchase agreement
must include the name, address, and telephone number of the title company or attorney included on the contract.
the buyer’s broker shall make a written request to the title company (attorney) for verification of receipt of deposit within ____ business days after the deposit is due?
10
after buyer’s broker made written request, for verification of receipt of deposit, the buyer’s broker must provide the seller’s broker with a copy of written verification within ___ business days?
10
Escrow funds may be placed in either an _____ or a non______ escrow account.
interest-bearing or a non-interest-bearing escrow account.
All parties involved in the transaction involving an interest-bearing escrow account must sign an authorization of how?
the interest is to be distributed.
The broker must be a signatory on all ______ ____________accounts?
brokerage escrow accounts
A broker may place and maintain up to $____ of personal or brokerage funds into a sales escrow account.
1,000
A broker may place and maintain up to $____ of personal or brokerage funds into each property management escrow account.
5,000
A broker shall have ____ days 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 good-faith doubt in regards to claiming escrow funds, the broker must provide written notification to _____within _____days of the last party’s demand.
FREC
15 business days
Within ___ business days of good-faithdoubt, the broker must institute one of the settlement procedures as set forth in Section 475.25(1)(d)1., Florida Statutes: Mediation, Arbitration, Litigation, or Request for Escrow Disbursement Order.
30
Within 30 business days, the broker must notify ____ about the settlement procedure implemented.
FREC
If the broker is notified in writing by FREC that no Escrow Disbursement Order will be issued by FREC, then the broker has ____days to institute a different settlement procedure and notify the Commission of the procedure chosen.
another 30 days
The broker must notify the Commission within ____days if an EDO is no longer needed.
10 business days
Is mediation binding to the parties?
no
Because arbitration is binding, all parties must ____
agree to the arbitration procedure in advance and in writing.
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 ?.
Declaratory Judgment
Each broker who furnishes a rental information list to a prospective tenant -for a fee paid by the prospective tenant -shall provide such prospective tenant with ?
a contract or receipt.
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 __ days of having received the list.
75%
within 30
the full fee (100%) for a rental information list shall be repaid to the prospective tenant upon demand if what
If the rental information is not current or accurate in any material respect
Selling rental lists that are not current or accurate is what kind of crime?
first-degree misdemeanor
punishable by up to one year of imprisonment and/or up to $1,000 fine
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. Misrepresentation includes embellishing, obfuscation, omissions, and lying.
Misrepresenting the value of property by a licensee may result in what three charges to who?
licensee & broke
fraud
breach of contract
breach of trust.
Price Fixing and Market Allocation violates?
Antitrust laws.
In all cases, only the broker can be paid by a party for real estate services. The licensee may be paid based on a transaction, however, the pay comes from where?
directly from the broker not the principal.
A licensee may not sue a buyer or seller for ?.
compensation
Per the Commercial Real Estate Sales Commission Lien Act the broker may place a lien upon the owner’s ___________ from the sale of commercial real estate for any commission earned by the broker under a written broker’s agreement. However______…
NET PROCEEDS ONLY
IT DOES NOT create a lien right against the RE BEING SOLD
What must take place for a kickback to be legal?
All parties to the transaction must be fully informed about the kickback
it must not violate any other law, and it cannot involve the sharing of a commission unless the person receiving the kickback is the buyer or the seller in the transaction.
is It lawful to share a commission in the form of a rebate to a buyer or seller involved in the property transaction. ?
yes
It is also lawful to pay a $__ referral fee to a current tenant of an apartment complex for finding a tenant.
50
It is legal to share a sales commission with the buyer or seller involved with a transaction but what must happen?
full disclosure to all parties to the transaction.
It is unlawful for a licensee to pay who?
an unlicensed person for performing real estate services.
A sales associate must inform FRECwithin __ days whenever a change in employeris made.
10
Duplication of records from a previous employer constitutes ?
breachof trust and theft.
No licensee shall use an identification or designation of any association or organization having to do with real estate unless ?
entitled to use such identification or designation. Such as Realtor
Licensees must notify DBPR within __ days of the change to the current mailing address.
10
which entities may register as a brokerage with the DBPR?
Sole Proprietorship General Partnership Limited Partnership Limited Liability Partnership (LLP), Corporation Limited Liability Company (LLC) Professional Association (PA).
which entities may not register as a brokerage?
Corporation sole, Joint venture, Business trust, Cooperative association, and an Unincorporated association.
Licensees may not be issued a license in a what?
a trade name.
How long does lcensee have to turn over funds given to the for earnest money to their broker?
End of next business day
how long does a broker have to turn over earnest moeny to an escrow account?
3rd business day after receipt of fund to the licensee
