Unit 5

Question 1

ADVERTISING

Answer 1

Florida law states: advertising is considered a broker activity. Therefore, all advertising must be in the name of the brokerage and under the supervision of the broker.

Question 2

TELEPHONE SOLICITATION

Answer 2

A sales associate may contact individuals with whom the associate has had an established business relationship, even if those customers’ numbers are on the national registry. For example, The company that previously listed the property may contact the former customer to solicit new business for up to 18 months after the business transaction has been concluded.

Question 3

ESCROW OR TRUST ACCOUNTS

Answer 3

Broker’s must place trust funds into an escrow account IMMEDIATELY, which is defined in rule as no later than the end of the 3rd business day, following receipt (by the broker or an agent of the broker) of the item to be deposited. The first day of the three-business-day period is the day that the sales associate must deliver the deposit to the broker.

Question 4

NOTICE OF SETTLEMENT PROCEDURES
Conflicting Demands

Answer 4

If a broker who maintains an escrow account receives conflicting demands on escrowed property, the broken must notify the FREC in writing within fifteen business days of receiving the conflicting demands unless specifically exempt.

Question 5

SETTLEMENT PROCEDURES
“Arbitration”

Answer 5

Arbitration is a process whereby, with the prior written consent of all parties to the dispute, the matter is submitted to a disinterested third party. Each side presents its case to a third party who makes a binding judgment in favor of one side or the other.The party’s must agree in advance to abide by the arbitrator’s final decision.

Question 6

Escrow Dispersment Order
(EDO)

Answer 6

(EDO) is a determination of who is entitled to the disputed funds.
If informed in writing that the commission will not issue an EDO, the broken must use one of the other settlement procedures. In such an instance, the broke must notify the commission. Which settlement procedure will be used. FREC rules require a broker to notify the commission within 10 business days if the dispute is settled between the parties or if the matter goes to court before the EDO is issued.

Question 7

Kickbacks

Answer 7

Kickbacks or rebates are not permitted to accept for licensees. However, Florida license law does provide that a property management firm or the owner of an apartment complex may pay a finder’s fee or a referral fee of no more than $50 to an unlicensed person who is a tenant of the apartment complex for the referral of a prospect who becomes a tenant of the apartment complex.

Question 8

PERSONAL ASSISTANTS
Rules:

Answer 8

Some sales associates prefer to use licensed personal assistants because license assistance can perform services of real estate, including showing listed properties. A licensed personal assistant must be registered under the employing broker, and the broker must pay the assistant for brokerage activities. A sales associate may pay the licensed personal assistant for nonbrokerage activities on a salaried or an hourly basis. A sales associate may not compensate a personal assistant for brokerage activities that require a license.