State Laws Referrals & Commissions True/False Flashcards
A New York cabbie refers friend to a Florida Broker. Friend purchases property in Florida through broker. Broker may give a referral fee to cabbie if cabbie holds a real estate license in New York.
True
Broker advertises to give 10% of broker’s commission to a lawyer for any closed referrals. According to Florida law this is a violation because the lawyer needs a real estate license to practice real estate.
True
A broker may split commissions with an attorney ONLY IF the attorney holds a broker license.
True
Buyer asks broker to refer a contractor. Broker gives buyer the contact information & later contractor pays broker a referral fee. This is legal as long as buyer was made aware of the fee before the transaction occurred.
True
A foreign broker refers a prospective buyer to Florida broker. The prospect ends up purchasing. A commission CANNOT be paid to the foreign broker.
False:
Foreign broker can be paid unless in violation of Florida laws
Sales associate refers buyer to a title insurance company. The title insurance company offers sale associate a trip to Caribbean. It is acceptable for Sales Associate to accept the trip as long as all parties are made aware in advance.
False:
Unearned compensation for title services is a violation of RESPA
At closing sales associate receives the commission check & deposits into sales associate’s personal account. The next business day sales associate pays broker her share. This is perfectly legal.
False:
Illegal conversion of funds
Sales associate sells a property listed by a different broker. The listing contract will have a provision for the commission to be paid to the selling sales associate.
False:
Listing broker
Broker executes a contract & broker & seller have a dispute over the commission. Broker must distribute funds but may withhold the disputed commission amount.
True
