Unit 5 - 12 State - Brokerage Activities and Procedures

Question 1

Unit 5
Advertisement of sales associate must always include

Answer 1

brokerage firm

Question 2

Unit 5
How long after a business transaction may a sales associate solicit their past customer?

Answer 2

18 months after business transaction

Question 3

Unit 5
Timeline of Escrow Deposits

Answer 3

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

Question 4

Unit 5
Conflicting Demands

Answer 4

buyer and seller disagree in escrow funds disbursement
notify FREC within 15 days and institute settlement procedure within 30 days of receiving conflicting demands

Question 5

Unit 5
Arbitration

Answer 5

3rd party decides how to disburse escrow funds
BINDING JUDGMENT

Question 6

Unit 5
Escrow disbursement order (EDO)

Answer 6

*Commission orders what to do with escrow funds
*If dispute is settled before EDO given, notify FREC within 10 business days

Question 7

Unit 5
Chapter 475, Part III (repeat from Unit 2)

Answer 7

Commercial Real Estate Sales Commission Lien Act
*gives broker lien rights on seller’s net proceeds from sale of commercial property

Question 8

Unit 5
Can any unlicensed individual receive $ for performing real estate services?

Answer 8

*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

Question 9

Unit 5
Who pays licensed personal assistant commission?

Answer 9

Broker, NOT sales associate
Sales associate can pay salary

Question 10

Unit 5
Are Branch office registrations transferrable?

Answer 10

No, if you move the branch office moves locations then they must reregister the new branch office loation

Question 11

Unit 5
Temporary Shelter

Answer 11

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

Question 12

Unit 5
Broker Office sign must contain

Answer 12

1. Trade name (if one is used)
2. Broker’s name
3. “Licensed Real Estate Broker”

Question 13

Unit 5
Blind Advertisements

Answer 13

illegal
does not list brokerage firm

Question 14

Unit 5
Even if on the national do not call list:

Answer 14

1. may call FSBO if have interested buyer
2. contact past customer up to 18 months
3. 3 months after inquiry

Question 15

Unit 5
CAN-SPAM Act

Answer 15

Federal law that sets national standards for commercial emails
Must provide an unsubscribe option that is honored within 10 business days

Question 16

Unit 5
Escrow/Trust Accounts
earnest money, good-faith deposits, binder deposits

Answer 16

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

Question 17

Unit 5
Postdated checks

Answer 17

seller’s approval must be obtained before accepted
broker secures until the date and then immediately deposits

Question 18

Unit 5
Money to maintain escrow account

Answer 18

$1000 own or brokerage funds
$5000 for property management escrow account

Question 19

Unit 5
How long to keep records (retention)?

Answer 19

5 years (more if subject to litigation)

Question 20

Unit 5
Escrow Account Management rules

Answer 20

*Brokers signatory of own escrow account
*Broker must review, sign, and date monthly reconciliation statements

Question 21

Unit 5
Title Company and Escrow Accounts

Answer 21

1. indicate name, address, telephone of title company on sale contract
2. Buyer’s broker must make written request within 10 business days to provide written verification of the deposit
3. Within 10 business days, buyer’s broker provide seller’s broker with copy of verification or written notice that no verification was received

Question 22

Unit 5
Exceptions to Settlement Procedures

Answer 22

1. Gov’t owned (HUD), then they will settle it
2. buyer of residential condo timely delivers written notice of intent to cancel contract, return escrow
3. financing falls through, return escrow

Question 23

Unit 5
Sell Rental Lists

Answer 23

75% back if do not find a place
100% back if not current or inaccurate

Question 24

Unit 5
What penalty if sell inaccurate or not current rental lists

Answer 24

1st degree misdemeanor

Question 25

Unit 5 What 2 prohibited acts with Antitrust laws?

Answer 25

Main idea: keep brokers competitive with one another 1. No price-fixing (setting commission rate) 2. No market allocation (cannot split competitive markets)

Question 26

Unit 5 Chapter 475, Part III vs Part IV

Answer 26

``` III = lien on net proceeds IV = lien on property Both = must disclose to seller and both for COMMERCIAL properties ```

Question 27

Unit 5 Kickbacks

Answer 27

\*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)

Question 28

Unit 5 Which business entities may register as Broker and which cannot?

Answer 28

Yes Corp General partnership Limited partnership LLC LLP Sole proprietorships No Corp Sole Joint Venture Business Trusts Coop Associations Unincorporated Associations

Question 29

Unit 5 Sole proprietorship

Answer 29

one owner must be broker owner liable do not need to register with the state

Question 30

Unit 5 General partnership

Answer 30

1. register with DBPR 2. at least one partner 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)

Question 31

Unit 5 Limited Partnership

Answer 31

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

Question 32

Unit 5 ostensible partnership aka quasi partnership

Answer 32

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

Question 33

Unit 5 Corporation

Answer 33

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

Question 34

Unit 5 How to replace a broker

Answer 34

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

Question 35

Unit 5 Business arrangements/entities that may not register as broker

Answer 35

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