Unit 12: State and Federal Laws Flashcards
State, federal and international Anti Trust laws
Amount of commission is NEGOTIABLE
Brokers can not conspire in price fixing. Even discussing commission.
Commission flows through ___________
Brokers
- Sellers, buyers and principals may only pay Brokers
- Sales Associate needs consent from broker and must accept everything in the brokers name
-
Brokers may only pay
- Their Sales Associates
- An authorized professional corp, LLC, or professional liability co formed by sales associate
- Other FL Brokers
- Foreign brokers who do not perform ANY real estate services in FL
- Parties to the transaction (with disclosure)
Kickback and Rebates
Are unearned fees (no service performed) paid to a licensee with a real estate transaction for services rendered by others
RESPA prohibits - CAATTS
collection or payment for referral fees for settlement services including: - Credit Report - Attorney - Appraisal - Title Search - Title Insurance - Survey CAATTS!!!
Brokers may receive kickbacks IF ________ or _________
- Does not violate Real Estate Settlement Procedures Act
- Full disclosure to all involved
- Flows throught the broker
Residential Property Managers or owners may pay up to ____________
to a tenant for a referall of a new tenant.
Residential Property Managers or owners may pay up to ____________
$50 to a tenant for a referall of a new tenant.
Trust Funds
you can hold my money because I TRUST you!
- Funds received on behalf of any person - because you TRUST them!
- Includes Earnest Money Deposit, Binder Money, Good Faith deposit
- Includes moneys on other down payments,
- rents for clients
- tax and insurance escrow payments, and damage deposits.
When counting days, for example, pick up of an escro check.
EXAM!!!
- The day the sales associate touches it, it counts as the broker touching it.
- The day the sales associate touches it is DAY ZERO.
- Then count the next day as day 1
When counting days, for example, pick up of an escrow check.
EXAM!!!
- The day the sales associate touches it, it counts as the broker touching it.
- The day the sales associate touches it is DAY ZERO.
- Then count the next day as day 1
Civil Rights Act of 1866
Prohibits discrimination based on race
Federal Fair Housing Act / Civil Rights Act 1968 and 1988
Protected classifications
- Race
- Religion
- Color
- Sex
- National origin
- Familial status (1988)
- People with kids
- Handicap/disability
- A Physical or mental problem that hinders one or more mahor life activities - alcoholism, AIDS, mental illness
Federal Fair Housing Act / Civil Rights Act 1968 and 1988
Protected classifications
- Race
- Religion
- Color
- Sex
- National origin
- Familial status (1988): People with kids
- Handicap/disability
- A Physical or mental problem that hinders one or more major life activities - alcoholism, AIDS, mental illness
Prohibitions - for protected class
- Refuse to show, rent, sell, negotiate or deal
- If asked to discriminate, cancel deal
- Offer different terms
- Advertise limited liability
STEERING is the channeling of prospective buyers or renters to or from certain neighborhoods based on protected categories
1 Only a violation if licensee selects and shows ONLY properties in a particular area based on race or national origin
TRICKY Because there is no way to know the complete population of a neighborhood!
NOT A violation if BUYER PICKS HOUSE
You give them all the OTHER
Blockbusting - Bust up the block
PANIC SELLING when licensee predicts the influx of minorities into a neighborhood and forecasts lower property values, school ratings, higher crime, & Other undesireable stuff
Red Lining - red line around a certain area, descriminate against those .
Refusal, for illegally discriminatory reasons, to make loans or provide insurance coverage on properties located in a particualr neighborhood because of the race or ethnicity of its residents.
Exemption to Do Not Call
Even if on registry, brokers and SAs may call:
1. A person with whom they have now or previously had a relationship
2. Prospective Buyer who registered at an open house
3. In response to an ad, yard sigh, or other, ON BEHALF OF A POTENTIAL BUYER BUT NOT IN AN ATTEMPT TO OBTAIN A LISTING
Can’t call FSBO in attempt to solicit a listing.
Florida Statute Chapter 475
Real Estate Professional Practice Act
Chapter ______
Administrative Rules of the FL Real Estate Commission
FL Statute Ch. ___
Powers of the Department of Business and Professional Regulation
Chapter 61J2 - within 475_
Administrative Rules of the FL Real Estate Commission
- Expands ch 475, goes into the RULES
FL Statute Ch. 455
Powers of the Department of Business and Professional Regulation - big umbrella - 13 divisions, - we care about FREC -
FL REAL ESTATE COMMISSION - FREC
- Comprised of 7 Governor- Appointed members
5 licensees, 2 without licenses - Meet Montly and recevie ____ per diem
- Adminsters and enforces ch 475
- Promulgates (enacts) rules Chapter 61J2 to implement statutes
- Grants licenses, determines license law violation, administers penalties
Deposit Requirements -
Sales associate must deliver check immediately next day to broker - ONCE SA touches the check, it;s the same as if broker touches the check
FL REAL ESTATE COMMISSION - FREC
Purpose is to protect the public
- Comprised of 7 Governor- Appointed members
5 licensees, 2 without licenses - Meet Montly and recevie _$50__ per diem
- Adminsters and enforces ch 475
- Promulgates (enacts) rules Chapter 61J2 to implement statutes - Quasi legislative power
- Grants licenses, determines license law violation, administers penalties
QUASI JUDICIAL POWERS - mimic
Deposit Requirements - Sales Associate
Sales associate must deliver check immediately next day to broker - ONCE SA touches the check, it;s the same as if broker touches the check
Deposit Requirements - Broke has how many biz days to deposit? From when?
Broker Must deposit Check IMMEDIATELY 3 BIZ DAYS after SA touches it
Deposit Requirements - What does broker need from title or attorney?
If deposited at title co or with attorney, broker must get receipt of deposit
Deposit Requirements - What can be deposited?
Only legal tender can be deposited
Money held by title insurance co or lawer
Not governed by RE license law
On sales contract, SA must indicate title co or attorney
Name, address, phone
If a title co is named by BUYER, within __Biz days, what must happen>
10 biz days after each deposit is due, licensee’s broker must request verification of receipt of deposit
Within __-biz days after broker makes written request for verification of deposit, what must happen?
10 days, buyers broker mus provide seller’s broker with a copy of verification
The verification of deposit is waived if
placed with title co or attorney of seller
Deposit (Binder) belongs to who?
Buyer until acceptance, then both.
Distribution
- Parties must agree
- Failure to agree is conflicting demands
Chapter 475 conflicting demands
Broker must have it resolved in 30 days.
- Commission - within 15 days request that FREC issues disbersment
- . Arbitrate
- Mediate
- litigate
Conflicting Demands resolved?
Tell FREC within 10 days
Broker may return deposits without notifying the commission or employing one of the procedures to remedy if______ Or ____
- Condo cancellation with staturory time frame
2 Financing contingency
Commingling
Can;t mush everyone’s funds together
Conversion
Stealing - using trust funds for personal things
Money broker can keep in escrow
$1000 - sales trust
$5000 - prop managment trust
Puffing
Boasting or embellishing, creative description, not illegal
Deceptive Acts
Offering lotter, raffle or scheme for real property
Concealing info
Conversion of items that belong to other for SAs personal use
Culpable Negligence - stuff you should have known as a licensed professional
Failure to account for and deliver funds
Larceny and embezzling funds
If asked by broker to do unlawful act
- Refuse
2. Report
FSBO can discriminate
4 or fewer units
Owner occupies one unit of 4 or fewer
Anyone with brokers services can not
Broker must display
Fair Houseing Poster
- Shift burden of proof to broker in alleged discrimination complaint
- must be in each office or place of business
CH 720
HOA
3 day right of recision to review docs of HOA
Can not waive right
