Unit 5: Real Estate Brokerage Activities and Procedures

Question 1

Antitrust Laws

Answer 1

State and Federal Laws designed to maintain and preserve business competition

Question 2

Arbitration

Answer 2

The act of having a third party render a binding decision in a dispute between two parties

Question 3

Blind Advertisement

Answer 3

An advertisement that provides only a telephone number, PO Box, and/or address without the licensed name of the brokerage firm.

Question 4

Commingle

Answer 4

To mix together money or a deposit with personal funds; combine; intermingle

Question 5

Conflicting Demands

Answer 5

When different parties each make claims that are inconsistent with one another

Question 6

Corporation

Answer 6

An artificial or fictitious person formed to conduct specified types of business activities

Question 7

Declaratory Judgement

Answer 7

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

Question 8

Deposit

Answer 8

Earnest money or some other valuable consideration given as evidence of good faith to accompany an offer to purchase or rent.

Question 9

Earnest Money

Answer 9

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

Question 10

Escrow Account

Answer 10

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

Question 11

Escrow Disbursement Order (EDO)

Answer 11

A course of action for determining the disposition of a contested deposit

Question 12

General Partnership

Answer 12

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.

Question 13

Good-Faith Doubt

Answer 13

A broker’s uncertainty as to which party should receive the escrowed property

Question 14

Immediately

Answer 14

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

Question 15

Interpleader

Answer 15

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.

Question 16

Kickback

Answer 16

Payment of money from someone other than the buyer or the seller associated with real estate business.

Question 17

Limited Liability Community (LLC)

Answer 17

An alternative, hybrid business entity with the combined characteristics and benefits of both a limited partnerships and S corporations.

Question 18

Limited Liability Partnership (LLP)

Answer 18

A business entity that features protection from personal liability but with fewer legal restrictions compared with other business entities.

Question 19

Limited Partnership

Answer 19

A business entity consisting of one or more general partners and one or more limited partners.

Question 20

Litigation

Answer 20

A lawsuit; the act of carring on a lawsuit; a case before a court of law.

Question 21

Market Allocation

Answer 21

An agreement between brokers to split up competitive market area among themselves and not compete in each other’s areas.

Question 22

Mediation

Answer 22

The act of having a third party attempt to reconcile a dispute between two parties.

Question 23

Ostensible Partnership

Answer 23

One or more parties cause a third party to be decieved into beliveing that a business relationship exists when so such arrangement exists.

Question 24

Personal Assistant

Answer 24

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.

Question 25

Point of Contact Information.

Answer 25

Any means by which to contact the brokerage firm or individual licensee, including mailing addresses, physical addresses, email addresses, telephone numbers or facisimlle numbers.

Question 26

Price-fixing

Answer 26

Competing brokers conspire to establish a standard commission rate rather than let the rate be set by the open market.

Question 27

Professional Association (PA)

Answer 27

A business corporation consisting of one or more individuals engaged in a primary business that provides a professional service (e.g. lawyer, doctor)

Question 28

Sole Partnership

Answer 28

Dealing as an individual in business

Question 29

Team Advertising

Answer 29

The name or logo used by one or more licensees who represent themselves to the public as a team or group

Question 30

Telephone Solicitation

Answer 30

The initiation of a telephone call for the purpose of encouraging the purchase of, or investment in property, goods or services

Question 31

Trade Name

Answer 31

Any adopted or ficticious name used to designate a business concern

Question 32

Trust Funds

Answer 32

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