Unit 5 Key Terms Flashcards
antitrust laws
State and federal laws designed to maintain and preserve business competition.
arbitration
The act of having a third-party render a binding decision in a dispute between two parties.
blind advertisement
An advertisement that provides only a telephone number, a post office box, and/or an address without the licensed name of the brokerage firm.
commingle
To mix together money or a deposit with personal funds; combine; intermingle.
conflicting demands
When different parties each make claims that are inconsistent with one another.
conversion
Unauthorized use or retention of money or property that rightfully belongs to another person.
corporation
An artificial or fictitious person formed to conduct special types of business activities.
declaratory judgement
A course of action declaring rights claimed under a contract or statute intended to prevent loss or to guide performance by the party or parties affected.
deposit
Earnest money or some other valuable consideration given as evidence of good faith to accompany an offer to purchase or rent. See also binder and earnest money.
earnest money
A type of money that a broker may handle for others in the ordinary course of business; also called a good-faith deposit or binder deposit.
escrow account
An account in a bank, title company, credit union, savings association, or trust company used solely for safekeeping customer funds and not for deposit of personal funds; impound account or trust account.
escrow disbursement order (EDO)
A course of action for determining the disposition of a contested deposit.
failure to account or deliver
The act of failing to pay money to a person entitled to receive it.
general partnership
An association of two or more persons for the purpose of jointly conducting a business, each being responsible for all the debts incurred in the conducting of that business.
good-faith doubt
A broker’s uncertainty as to which party should receive the escrowed property.
immediately
The time period during which a broker must deposit escrow funds; no later than the end of the third business day after the broker’s sales associate or an employee has received the funds.
interpleader
A course of action when two contesting parties cannot reach an arbitrated agreement; a legal proceeding whereby the broker, having no financial interest in the disputed funds, deposits with the court the disputed escrow deposit so that the court can determine who is the rightful claimant.
kickback
A payment of money from someone other than the buyer or the seller associated with real estate business.
limited liability company (LLC)
An alternative, hybrid business entity with the combined characteristics and benefits of both limited partnerships and S corporations.
limited liability partnership (LLP)
A business entity that features protection from personal liability but with fewer legal restrictions compared with other business entities.
limited partnership
A business entity consisting of one or more general partners and one or more limited partners.
litigation
A lawsuit; the act of carrying on a lawsuit; a case before a court of law
market allocation
An agreement between brokers to split up the competitive market areas among themselves and not compete in each other’s areas.
mediation
The act of having a third party attempt to reconcile a dispute between two parties.
ostensible partnership
One or more parties cause a third party to be deceived into believing that a business relationship exists when no such arrangement exists.
personal assistant
An individual hired by a licensee to perform administrative tasks associated with real estate transactions. Whether a personal assistant must be a real estate licensee is determined by the tasks the assistant performs.
point of contact information
Any means by which to contact the brokerage firm or individual licensee, including mailing address(es) , physical street address(es), email address(es), telephone number(s), or facsimile telephone number(s).
price-fixing
Competing brokers conspire to establish a standard commission rate rather than let the rate be set by the open market.
professional association (PA)
A business corporation consisting of one or more individuals engaged in a primary business that provides a professional service (e.g., lawyer, doctor).
rental information list
A list of available rental properties offered to prospective tenants by a broker or sales associate for a fee.
sole proprietorship
Dealing as an individual in a business.
team advertising
The name or logo used by one or more licensees who represent themselves to the public as a team (or group).
telephone solicitation
The initiation of a telephone call for the purpose of encouraging the purchase of, or investment in, property, goods, or services.
trade name
Any adopted or fictitious name used to designate a business concern.
trust funds
Cash, checks, money orders, and items that can be converted into cash, such as deeds and personal property, that a person (broker) holds in trust for another person.
State and federal laws designed to maintain and preserve business competition.
antitrust laws
The act of having a third-party render a binding decision in a dispute between two parties.
arbitration
An advertisement that provides only a telephone number, a post office box, and/or an address without the licensed name of the brokerage firm.
blind advertisement
To mix together money or a deposit with personal funds; combine; intermingle.
commingle
When different parties each make claims that are inconsistent with one another.
conflicting demands
Unauthorized use or retention of money or property that rightfully belongs to another person.
conversion
An artificial or fictitious person formed to conduct special types of business activities.
corporation
A course of action declaring rights claimed under a contract or statute intended to prevent loss or to guide performance by the party or parties affected.
declaratory judgement
Earnest money or some other valuable consideration given as evidence of good faith to accompany an offer to purchase or rent. See also binder and earnest money.
deposit
A type of money that a broker may handle for others in the ordinary course of business; also called a good-faith deposit or binder deposit.
earnest money
An account in a bank, title company, credit union, savings association, or trust company used solely for safekeeping customer funds and not for deposit of personal funds; impound account or trust account.
escrow account
A course of action for determining the disposition of a contested deposit.
escrow disbursement order (EDO)
The act of failing to pay money to a person entitled to receive it.
failure to account or deliver
An association of two or more persons for the purpose of jointly conducting a business, each being responsible for all the debts incurred in the conducting of that business.
general partnership
A broker’s uncertainty as to which party should receive the escrowed property.
good-faith doubt
The time period during which a broker must deposit escrow funds; no later than the end of the third business day after the broker’s sales associate or an employee has received the funds.
immediately
A course of action when two contesting parties cannot reach an arbitrated agreement; a legal proceeding whereby the broker, having no financial interest in the disputed funds, deposits with the court the disputed escrow deposit so that the court can determine who is the rightful claimant.
interpleader
A payment of money from someone other than the buyer or the seller associated with real estate business.
kickback
An alternative, hybrid business entity with the combined characteristics and benefits of both limited partnerships and S corporations.
limited liability company (LLC)
A business entity that features protection from personal liability but with fewer legal restrictions compared with other business entities.
limited liability partnership (LLP)
A business entity consisting of one or more general partners and one or more limited partners.
limited partnership
A lawsuit; the act of carrying on a lawsuit; a case before a court of law
litigation
An agreement between brokers to split up the competitive market areas among themselves and not compete in each other’s areas.
market allocation
The act of having a third party attempt to reconcile a dispute between two parties.
mediation
One or more parties cause a third party to be deceived into believing that a business relationship exists when no such arrangement exists.
ostensible partnership
An individual hired by a licensee to perform administrative tasks associated with real estate transactions. Whether a personal assistant must be a real estate licensee is determined by the tasks the assistant performs.
personal assistant
Any means by which to contact the brokerage firm or individual licensee, including mailing address(es) , physical street address(es), email address(es), telephone number(s), or facsimile telephone number(s).
point of contact information
Competing brokers conspire to establish a standard commission rate rather than let the rate be set by the open market.
price-fixing
A business corporation consisting of one or more individuals engaged in a primary business that provides a professional service (e.g., lawyer, doctor).
professional association (PA)
A list of available rental properties offered to prospective tenants by a broker or sales associate for a fee.
rental information list
Dealing as an individual in a business.
sole proprietorship
The name or logo used by one or more licensees who represent themselves to the public as a team (or group).
team advertising
The initiation of a telephone call for the purpose of encouraging the purchase of, or investment in, property, goods, or services.
telephone solicitation
Any adopted or fictitious name used to designate a business concern.
trade name
Cash, checks, money orders, and items that can be converted into cash, such as deeds and personal property, that a person (broker) holds in trust for another person.
trust funds
