Unit 5: Real Estate Brokerage Activities and Procedures 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, PO Box, and/or 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
Corporation
An artificial or fictitious person formed to conduct specified 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.
Earnest Money
A type of money that the 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
General Partnership
An association of two or more persons for the purpose of jointly conduction 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 tow 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 claimaint.
Kickback
Payment of money from someone other than the buyer or the seller associated with real estate business.
Limited Liability Community (LLC)
An alternative, hybrid business entity with the combined characteristics and benefits of both a 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 carring on a lawsuit; a case before a court of law.
Market Allocation
An agreement between brokers to split up competitive market area 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 decieved into beliveing that a business relationship exists when so such arrangement exists.
Personal Assistant
An individual hired by a licensee to perform administrative tasks associated with real estate transactions. Whethera 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 addresses, physical addresses, email addresses, telephone numbers or facisimlle numbers.
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)
Sole Partnership
Dealing as an individual in 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 ficticious name used to designate a business concern
Trust Funds
Cash, checks, money orders, and items that can be converted to cash, such as deeds and personal property that are held in trust for another person
