Unit 5 - 12 State - Brokerage Activities and Procedures Flashcards
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Advertisement of sales associate must always include
brokerage firm
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How long after a business transaction may a sales associate solicit their past customer?
18 months after business transaction
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Timeline of Escrow Deposits
Sales associate to broker = 1 business day
Broker to escrow account = 3 business days from sales associate receiving
Example: Friday to sales assoc., to Broker by Monday, to escrow account by Wednesday
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Conflicting Demands
buyer and seller disagree in escrow funds disbursement
notify FREC within 15 days and institute settlement procedure within 30 days of receiving conflicting demands
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Arbitration
3rd party decides how to disburse escrow funds
BINDING JUDGMENT
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Escrow disbursement order (EDO)
*Commission orders what to do with escrow funds
*If dispute is settled before EDO given, notify FREC within 10 business days
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Chapter 475, Part III (repeat from Unit 2)
Commercial Real Estate Sales Commission Lien Act
*gives broker lien rights on seller’s net proceeds from sale of commercial property
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Can any unlicensed individual receive $ for performing real estate services?
*pay finders fee no more than $50 to property management firm or owner of apartment complex if refers tenant (receive finders fee if tenant of apartment complex)
*Broker can share commission with buyer or seller
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Who pays licensed personal assistant commission?
Broker, NOT sales associate
Sales associate can pay salary
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Are Branch office registrations transferrable?
No, if you move the branch office moves locations then they must reregister the new branch office loation
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Temporary Shelter
Broker does not need to register a temporary shelter. It is NOT a branch office. If sales associates assigned there and need to close there, they will need to register the office and become a branch office
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Broker Office sign must contain
- Trade name (if one is used)
- Broker’s name
- “Licensed Real Estate Broker”
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Blind Advertisements
illegal
does not list brokerage firm
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Even if on the national do not call list:
- may call FSBO if have interested buyer
- contact past customer up to 18 months
- 3 months after inquiry
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CAN-SPAM Act
Federal law that sets national standards for commercial emails
Must provide an unsubscribe option that is honored within 10 business days
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Escrow/Trust Accounts
earnest money, good-faith deposits, binder deposits
account held by disinterested 3rd party that holds deposit of money delivered to real estate licensee as partial payment in connection with real estate transaction
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Postdated checks
seller’s approval must be obtained before accepted
broker secures until the date and then immediately deposits
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Money to maintain escrow account
$1000 own or brokerage funds
$5000 for property management escrow account
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How long to keep records (retention)?
5 years (more if subject to litigation)
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Escrow Account Management rules
*Brokers signatory of own escrow account
*Broker must review, sign, and date monthly reconciliation statements
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Title Company and Escrow Accounts
- indicate name, address, telephone of title company on sale contract
- Buyer’s broker must make written request within 10 business days to provide written verification of the deposit
- Within 10 business days, buyer’s broker provide seller’s broker with copy of verification or written notice that no verification was received
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Exceptions to Settlement Procedures
- Gov’t owned (HUD), then they will settle it
- buyer of residential condo timely delivers written notice of intent to cancel contract, return escrow
- financing falls through, return escrow
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Sell Rental Lists
75% back if do not find a place
100% back if not current or inaccurate
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What penalty if sell inaccurate or not current rental lists
1st degree misdemeanor
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What 2 prohibited acts with Antitrust laws?
Main idea: keep brokers competitive with one another
- No price-fixing (setting commission rate)
- No market allocation (cannot split competitive markets)
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Chapter 475, Part III vs Part IV
III = lien on net proceeds IV = lien on property Both = must disclose to seller and both for COMMERCIAL properties
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Kickbacks
*legal for services not dealing with real estate as long as all parties are aware of the kickback
*RESPA illegal to receive kickbacks from any real estate settlement services (es: title companies, title insurance, attorney services, appraisals, surveys, etc)
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Which business entities may register as Broker and which cannot?
Yes
Corp
General partnership
Limited partnership
LLC
LLP
Sole proprietorships
No
Corp Sole
Joint Venture
Business Trusts
Coop Associations
Unincorporated Associations
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Sole proprietorship
one owner
must be broker
owner liable
do not need to register with the state
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General partnership
- register with DBPR
- at least one partner active broker
- partners who deal with public and perform real estate services must be licensed active broker
- associates may not be general partners (no associates on business side)
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Limited Partnership
Limited partner just needs investment by money or property. Only liable for the parts they work with.
Same as first 4 from general partnership
1. register with DBPR
2. at least one active broker
3. partners who deal with public and perform real estate services must be licensed active broker
4. associates may not be general partners (no associates on business side)
5. limited partners not required to register with DBPR
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ostensible partnership
aka quasi partnership
illegal
two or more persons create “appearance” that a partnership exists (share building and looks like they work together. can be held liable for each other
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Corporation
owners are stockholders, stockholders elect board, president VP etc carry out directives of the board
same first 4 from general partnership
1. register with DBPR
2. at least one active broker
3. partners who deal with public and perform real estate services must be licensed active broker
4. associates may not be general partners (no associates on business side)
5. all officers and directors who are not licensed must register with DBPR
6. associates may be shareholders
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How to replace a broker
14 calendar days to replace
temporary can hold for 60 days
all inactive until broker appointed
no broker within 14 days makes brokerage registration automatic cancelation
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Business arrangements/entities that may not register as broker
Corporation Sole = Church
Joint Venture = temporary, 1 or a couple transactions and no more, each broker registered with own brokerage, if both doing real estate then both must be brokers
Business Trust
Cooperative Assoc
Unincorporated Assoc
