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Chapter 5
Brokerage Operations
| Question | Answer |
|---|---|
| office sign | on or about the entrance; easily observed & read upon entering; brokers trade name; brokers name; licensed real estate broker |
| office location & files | principal or branch office registration may be in home; cannot conflict with local zoning ordinances; books, records & files must be maintains for 5 years |
| branch office requirements | must be registered; cannot transfer registration (good for 2 yrs) close office, move back before registration expires; use remaining time on original registration |
| principal office requirements | each broker must open & maintain an office; office must be registered with DBPR (good for 2yrs) must contain one enclosed room; in a building of stationary construction; where negotiations & closings can be conducted in privacy |
| advertising | must include brokers trade name; licensees last name in ad; internet advertising must include brokers trade name; adjacent or immediately above brokers contact information |
| blind advertising | frec rule 61J2 any ad that omits the brokers registered or trade name; licensees last name must appear as registered with the commission if her personal name is used |
| licensee personal transactions | fs 475/ frec rule 61J2 licensee must disclose their license status; disclosure must be made before serious negotiations; not required in advertising |
| escrow account | no commingle; personal funds up to 1,000 in sales & 5,000 in property management; may keep in commercial bank, savings, credit union must be in Fl |
| title company escrow account | funds can be kept with tittle company or att; sell broker must include name, address, phone of title comp or att; broker must request written verification of deposit in 3 days; selling broker must provide a copy of written verification 2 seller in 10days |
| timely deposit of escrow funds | licensee delivers escrow to broker by the end of the next buss day; broker must deposit no later then 3 bus days; 3days is defined as immediately; broker must deliver to tittle company same time frame |
| escrow reconciliation | frec rule 61J2 broker compares her account with the monthly bank statement; report must reconcile differences; must be signed by broker; kept in file for 5yrs |
| post dated checks | can be accepted as escrow deposit with sellers approval |
| non sufficient funds escrow check | broker is not responsible for bounced chks; as long as broker deposited within the 3 business days |
| escrow funds ownership | broker holds funds in trust for buyer & seller; buyer controls the funds until seller accepts contract; contract fully executed, buyer & seller control escrow jointly |
| escrow dispute | conflicting demands are when both buyer & seller make a claim for the escrow deposit |
| good faith doubt | when a broker receives conflicting demands from the buyer & seller or has good faith doubt as to one of the parties intentions, or has doubt as to which party is entitled to the escrow property |
| dispute settlement procedures | mace mediation, arbitration, court action, escrow disbursement order (EDO) |
| mediation | parties agree 2 3rd party by written consent; parties arent bound by this decision;if isnt settled in 90 days broker must select one of the other procedures |
| arbitration | with written consent the parties agree in advance to be bound by the arbitrators decision. the award is binding & can be enforced in a court of law |
| court action (litigation) | the parties initiate action in court; bill of interpleader- broker files this action with court if she makes no claim; declaratory decree- broker files this action with court if she makes a claim for fees |
| escrow disbursement order | the broker requests FREC settle the dispute; broker must follow FREC instructions; parties settle the dispute before FREC rules; Broker must notify FREC within 10 business days |
| rental information violations | any licensee in violation of rental information is guilty of a misdemeanor of the 1st degree FREC may also impose disciplinary action |
| concealment | failure to disclose information to a party |
| conspiracy | two or more licensees acting together to defraud a 3rd party |
| culpable negligence | licensee operating in a reckless, careless & excessively negligent manner for which she can be held accountable |
| conversion | licensee takes funds collected from others & appropriates (converts) the funds to their own use |
| failure to account | a licensee is unable or unwilling to produce funds held in trust for another at the appropriate time |
| filing false documents | a broker may not encumber real property unless it is expressly permitted by contractual agreement |
| misrepresentation | misstatement or omission of facts |
| lotteries | a licensee who uses lotteries or trading schemes involving selling of certificates or chances to induce any person to buy real estate is guilty of fraud; licensee may give chances away |
| properties with liens | if known, licensees must disclose the existence of any & all liens encumbering a property |
| change of employer | licensees must notify DBPR within 10 days of a change of employer or change of address |
| real estate brokerage limited partnership | min of 1 general partner; min of 1 limited partner; licensees may be limited partner; licensees cannot be general partners |
| sole proprietorship | a business formed by an adividual |
| real estate brokerage partnership | licensees cannot be partners. partners providing real estate services to the public directly or indirectly must be licensed brokers |
| limited partnership | min of 1 general partner; min of 1 limited partner; limited partner may contribute, money or property but not services |
| real estate brokerage corporation | corp, officers & directors must be regis; min of 1 corp officer must be licensed as active real estate broker; registered to perform real services for others; real corp may buy & sell its own real estate but may not provide services |
| corporation sole | corporation formed for religious purpose; can buy & sell real estate for its own use; cannot be registered as a real estate brokerage corporation |
| ostensible partnership | not a true partnership; 2 or more parties act in a manner that gives the impression a partnership exists; brokers may become liable for the actions of others |
| fictitious names act | trade name or fictitious name must be registered with the DBPR |
| businesses that can perform real estate services | sole proprietorship; corp for profit; corp for not for profit; limited liability company; general partnership; limited partnership; limited liability partnership |
| business that cannot register to perform real estate services | corporation sole; cooperative association; business trust; unincorporated association; joint venture |
| rental information | info is not current or accurate tenant may demand a refund with in 30 days; rental not obtained within 30days may refund 75% |
| opinion of title | a licensee cannot render any opinion as to whether the title to property being sold is good or merchantable. the licensee is directed by statue to advise a prospective purchase to consult attorney as condition of title |
| false or misleading advertising | licensees may not give any false information for the purpose of a sale, leasing or renting any real estate in the state of florida doing so would be a second degree misdemeanor |
Created by:
dmboo
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