Unit 5 Real Estate Brokerage Activities and Procedures

Question 1

Know the office requirements for brokers.

Answer 1

All active Florida real estate brokers are required to have an office and to register the office with the Department of Business and Professional Regulation (DBPR).
* Consist of at least one enclosed room in building of stationary construction that will provide privacy.
* Must display an official sign on either the exterior or interior of the entrance to their principal office and all branch offices.
(Trade name (if one is used)
(Broker’s name)
(The words “Licensed Real Estate Broker” or “Lic. Real Estate Broker”

Question 2

Understand the requirements related to advertising.

Answer 2

All advertisements must include the name of the brokerage firm.
If licensee inserts a personal name in the ad, the licensee’s last name as registered with the DBPR must also be included.

Question 3

Who may use the term REALTOR?

Answer 3

National Association of REALTORS (NAR)
REALTOR are members of a local board (association) of REALTORS.
A real estate licensee may not use the term REALTOR unless the licensee is a member of the association of REALTORS.

Question 4

Know the rules regarding the Florida’s telemarketing law.

Answer 4

• 10,000 fine possible per call Violating “Do not call list”
• Important Federal Law exceptions:
  1. ) A sales associate representing a potential buyer may call the FSBO seller only if the associate has an actual buyer interested in the property and for purposes of negotiating a sale.
  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.
  3. ) Sales associates may contact a customer for three months after a business inquiry or application. (Example customer registered for open house or inquired on house to sales associate)

Question 5

Define “immediately regarding escrow deposits.

Answer 5

Sales associate must deliver deposit to broker no later than the end of the “next” business day.
Brokers must place funds into an escrow account “immediately” which means no later than the end of the third business day after their sales associate has received it.

Question 6

Describe the settlement procedures regarding conflicting demands on an escrow deposit held by a broker.

Answer 6

“MALE”
1.) Mediation: is an informal, nonadversarial process intended to reach a negotiated settlement. 90 days to reach settlement.
2.) *Arbitration: is a process whereby, with the prior written consent of all parties to dispute, the matter is submitted to a disinterested third party.
Third party makes binding judgement which parties must agree to.
3.) Litigation: To resolve a dispute in the court of law.
Two court procedures
a. Interpleader
b. Declaratory judment
4.) Escrow disbursement order (EDO). When broker requests FREC “Commission” a determination of who is entitled to the disputed funds.
10 days to notify FREC if case resolved before doing this.

Question 7

Identify the time period for change in current mailing address.

Answer 7

Licensees must notify the DBPR in writing within 10 days of a change in current mailing address.
Subject to a citation and $500 fine if not done.

Question 8

Be familiar with the requirements for a real estate brokerage limited partnership.

Answer 8

• The limited partnership must register with the DBPR under the limited partnership name.
• General partners who will deal with the public and perform services of real estate must be licensed as active brokers.
• At least one general partner must be licensed as an active broker
• All other general partners must register with the DBPR for identification purposes.
• Sales associates and broker associates may not be general partners in a real estate brokerage limited partnership; however, they may be limited partners
• Limited partners are not required to register with the DBPR