Study guide chapter 5 Flashcards
Requirement for an office:
(Pg 68) Must be of stationary construction. Motor home does not qualify as an office.
Office Registration
(pg 68) Main office is transferable. Branches require a new registration when moving. A Branch may move to the new location as long as the registration is still valid.
A blind Ad
A blind Ad is an ad that is placed without disclosing the Name of the Broker /brokerage.
It is an illegal Ad in violation of Florida License law. Disclosing Motivated Seller is breach of confidentiality and also constitutes a violation of the law.
Receiving a postdated check as deposit:
(pg 70-72) Licensee must immediately give the check to the employing broker and get permission from the seller.
Commingling
A broker may only keep $1000 cushion money on a sales/purchase account and may not mix personal or business funds with escrowed funds at any time. This is considered “Commingling” which is a violation of FS 475 and it is considered a form of fraud.
Approved depositories for earnest money deposits:
(pg 71) Title Companies, Savings &
Loans, Finance Companies, Credit Unions. The account must be held in a Florida Bank.
Procedure for disputed deposit:
(pg 73) Broker must notify FREC within 15 days.
Eg A broker may return the deposit to a buyer as long as the cancellation is due to a contingency not meeting contract requirements-Subject to appraisal and the appraisal not reaching the Purchase Price.(Any contract contingency applies)
what should a broker do when they receive a deposit?
When a broker receives a deposit, the name of the escrow agent must be disclosed on
the contract and the listing agent should make a written verification request within 10
days of the due date and submit verification to the seller. (pg 74)
Procuring Cause of Sale:
(pg 75) The agent who produces the buyer who is ready-Willing and Able to close. When producing a buyer with no contingencies the broker has earned the commission. Brokers are entitled to a compensation for professional services when they have performed as agreed and by which they were employed to perform.
Referral Commission:
(pg 78) A referral commission may be paid to a licensee who refers a buyer or seller as long as the referring agent does not participate in the sale.
sharing commission
A licensee sharing part of all the commission with parties in the transaction is an acceptable arrangement as long as it is fully disclosed. (pg78)
What should a sales associate do if he didn’t get his commission?
A sales associate who is not compensated as agreed upon by the employing broker may
only file a suit against the employing broker who failed to pay. Pg 79
Bill of Interpleader
Bill of Interpleader is a when the broker chooses not to claim part of the deposited being disputed by the parties in a litigation dispute resolution process (Pg 73)
Licensing requirement in a brokerage partnership:
(pg 80) Each partner who Will be
performing real estate services must be license as a broker.
what should a licensee do against the broker if he didn’t receive his commission?
A licensee can only bring lawsuit against the broker who withheld a commission that was
rightfully earned, even if the licensee resigns, they can only make a claim against the broker who failed to make payment. (Pg 79)
Licensees responsibility to notify FREC:
10 days: Change of address of home and employer and 60 days when moving out of
state and becoming a non-resident.
partners at a brokerage partnership
If partners in a brokerage partnership intend to provide real estate services to the public
they all must be licensed as active brokers.
Limited Partnerhip:
May be registered (pg 81)
A General Partnership
A General Partnership is formed simply by the agreement of the parties. (pg 81)
Joint Venture:
A business relationship form by one or more people who agree to combine efforts for a single business transaction. ( pg 82)
Corporation for profit
Corporation for profit may be registered to do business as a brokerage in Florida. (pg 83)
Brokerage Corporation:
Brokerage Corpora on: Required registration and at least one partner must be a
broker. (pg 83)
The corporate name to a Corporation for Profit
The corporate name to a Corporation for Profit must include the Word “company”,
“incorporated” or its abbreviation “Corp, Inc or Co”. No business shall have the name
Company unless it is legally incorporated.
