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Unit 5 Summary
Brokerage Operations
| Term | Definition |
|---|---|
| They are required to have an office registered with the DBPR | active brokers |
| MUST be at least one enclosed room in a building of stationary construction | brokerage offices |
| Broker's books, records, and real estate transaction files must be kept in the: | brokerage offices |
| They are NOT required by law to have a telephone, desk, escrow o rbusiness checking account | brokers |
| Provided the entrance sign is displayed and local zoning permits business in residence, a brokerage office may be in: | broker's residence |
| They MUST be registered and work out of the broker's office or branch office and may NOT open their own offices | sales associates |
| They may have an office or offices in another state, provided the broker agrees in writing to cooperate with any investigation initiated under Chapter 475, F.S. | broker |
| MUST contain trade name, broker's name, "licensed Real Estate Broker", optional: sales associates and broker associates' names and title separated by a line or space | brokerage office sign |
| Fails to disclose the license name of the brokerage firm and provides only a post office box, telephone, and address | blind advertising |
| Information provided on the internet for contacting a brokerage firm or licensee, mailing address, street address, email, phone, fax including brokerage's firm name above, below, or adjacent to: | point of contact information |
| Those who include their personal name in advertisements MUST use their last name as registered with the DBPR | Licensee |
| Licensees place calls to encourage property purchase, investment, good and services. | phone solicitation |
| Before making telemarketing calls MUST search the: | National Do Not Call Registry |
| Violators of the federal Telephone Consumer Protection Act may be fined up to | $11,000 per call |
| Violators of the Florida's Telemarketing Act is | $10,000 per call |
| Account to deposit the money of a 3rd party for safekeeping | escrow account |
| May open escrow account in a FL bank, savings association, or credit union. | broker |
| MUST be a signatory on the: | escrow account |
| The funds may be held by a title company or attorney's trust account If the broker chooses not to open an escrow account, | escrow account |
| Those who MUST deliver binder deposits to their broker no later than the end of the next business day: | sales associate |
| Those who MUST deposit the funds into their escrow account no later than the end of the 3rd. business day after the brokerage received the funds | brokers |
| If the broker's account is interest-bearing, they may receive the interest; however,before placing the funds into the account, the broker MUST get this document from all parties and specify who is entitled to interest earned: | written permission |
| Regardless of whether escrow funds were pledged or 2 yrs. after litigation, brokers MUST maintain records of real estate transactions for: | 5 years |
| Illegal practice of mixing buyer's, seller's, tenant's or landlord's funds with the broker's own money or mixing escrow money with the broker's personal or brokerage funds | commingle |
| Broker's are allowed to deposit personal or brokerage funds in a sales escrow account up to | $1,000 |
| Broker's are allowed to deposit personal or brokerage funds in a property management escrow account up to | $5,000 |
| Brokers MUST notify the FREC in writing of conflicting demands or of a good-faith doubt within | 15 business days |
| Brokers MUST institute one of the settlement procedures when receiving conflicting demands or of having a good-faith doubt within | 30 business days |
| Mediation, Arbitration, Litigation, Escrow disbursement order | settlement procedures |
| Some real estate brokerage entities offer a list of properties available for rent to: | prospective tenants |
| Few brokerages charge a fee for rental information and MUST outline 2 refund options to the tenant. MUST be verbal/written requests within 30 days of purchase: 100% refund if information is in error and 75% refund if tenant is unable to find a rental. | receipt |
| Failure to provide accurate and current rental information for a fee is penalized with a fine of up to $1,000 and/or up to 1 yr. in jail and is a: | 1st degree misdemeanor |
| When broker receives money from someone other than the buyer or seller and they MUST be fully informed before the payment: | kickback |
| FL law prohibits a real estate licensee from paying money to an unlicensed person for a: | business referral |
| FL law allows sharing of part of the commission to the buyer or seller in a transaction, provided THIS is disclosed to all parties: | rebate |
| Sole proprietorship, general partnership, limited partnership, limited liability partnership, corporation, and limited liability company are business entities that may register as a: | brokerage |
| When the actions of two or more persons create the appearance that a business relationship exists: | ostensible partnership (quasi) |
| Licensees who operate as ostensible partners may be subject to | license suspension |
| May NOT be member of the board of directors or officers of a real estate brokerage corporation | sales and broker associates |
| Are NOT allowed to register as general partners of a real estate brokerage general or limited partnership | sales and broker associates |
| The broker MUST pay the fees to register each one of these: | branch offices |
| A subdivision being sold by a broker and intended only for the protection of customers and sales associates is not a branch office, it is a | temporary shelter |
| If sales associates are assigned there, necessary sales supplies are on hand, and sale transactions are concluded there, then the temporary structure must be registered as a | branch office |
| Registrations issued to branch offices are NOT: | transferable |
| Sales associates are assigned to a new subdivision under construction. The associates work and conduct sales in a model center. The broker is required to register the model center as a branch office. | branch office |
| A broker may reopen a branch office in the same location during the same license period without paying an additional fee by requesting a reissue of the branch office license active real estate brokers MUST display an | branch office license |
| Active real estate brokers MUST display on either the exterior or interior of the entrance to their principal office and all branch offices, an | office sign |
| These MUST be easily viewed and read by anyone entering the office. | office sign |
| The trade name (if one is used), broker's name, and "Lic, or Licensed Real Estate Broker" MUST be contained in an | office sign |
| If this entity is a partnership, corporation, limited liability company (LLC), or limited liability partnership, the sign must contain: Name of the firm, corporation or trade name, name of at least one active broker, 'Lic. or Licensed Real Estate Broker" | brokerage |
| A person may NOT induce a person to purchase, lease, or rent real estate by providing | false information |
| Anyone who advertises or represents that they are providing real estate services is acting as a | real estate broker |
| It is considered under Florida law to be a broker activity. | advertising |
| MUST be in the name of the brokerage and under the supervision of the broker. | advertising |
| May not advertise real estate services in their own names. | sales associates |
| Accountable for all advertising, regardless of who actually prepares the advertisement. | broker |
| All advertisements must include the name of the | brokerage |
| If a licensee inserts a personal name in the ad, this must also be included? | last name |
| Licensees may use their nickname in advertisements provided they also include their: | legal name |
| These are NOT required to be included in the advertisement | brokerage address & phone |
| FREC rules mandate that real estate advertisements must NOT be fraudulent, false, deceptive, or: | misleading |
| Spacious 4BR, 3BA home in Crystal Pines Subdivision. New roof July 2013. Home is on wooded lot. Call Alfonzo "Fonzie" Lombardi, Excellent Realty, 333-222-4444. | misleading ad, should make clear the phone is the licensee's personal number and not the brokerage's number. |
| Spacious 4BR, 3BA home in Crystal Pines Subdivision. New roof July 2013. Home is on wooded lot. Excellent Realty. Call Alfonzo "Fonzie" Lombardi, (mobile) 333-222-4444. | better constructed advertisement |
| When advertising on an internet site, this must appear adjacent to or immediately above or below the point of contact information. | brokerage name |
| Means to contact the brokerage or licensee: mailing address, street address, email, telephone, or (fax). | point of contact information |
| Real estate licensees who own property and are selling the property "by owner" may place their own | classified advertisement |
| may include personal contact information in ads: home phone number, property"s street address | licensees |
| It is NOT necessary for a licensee to indicate in the advertisement that the seller is a real estate . | licensee |
| Because a licensee has superior knowledge and expertise in real estate, to reduce liability the "by owner" licensee-seller should disclose and document in the contract PRIOR to entering into a negotiation, that the seller is a: | real estate licensee |
| NAR requires that member REALTORS® who advertise unlisted real property for sale or lease in which they have an ownership interest disclose their status as owners (or landlords) and as REALTORS®. | NAR |
| Licensees selling property they own "by owner" should consult their | broker |
| Some brokers expect the licensee to list the property through the | brokerage |
| Federal law concerning telephone solicitations. Established a National Do Not Call Registry for consumers who wish to avoid telemarketing calls. | The Telephone Consumer Protection Act of 1991 (TCPA) |
| The initiation of a telephone call for the purpose of encouraging the purchase of, or investment in, property, goods, or services. | telephone solicitation |
| Calls restricted to the hours of 8:00 am to 9:00 pm. | telemarketing |
| Exempts 1) political solicitations 2) telephone surveys 3) charitable solicitations | Florida's telemarketing law |
| Administered through the Dept. of Agriculture and Consumer Services. | Florida's telemarketing law |
| Violators of the telemarketing federal law may be fined up to | $11,000 per call |
| Florida law exempts real estate licensees who solicit listings in response to a: | "For Sale" yard sign |
| Federal law does not exempt calls: | "For Sale By Owners" (FSBOs) |
| The Federal Communications Commission (FCC) ruled that sales associates may not call FSBOs and homeowners with expired listings to solicit listings if the owners' names are listed on the | National Do Not Call Registry |
| No solicitation calls registry, calls 8a-9p, $10,000 fine, FSBO exception | Florida Telemarketing Law |
| Nat'l Do Not Call Registry, calls 8a-9p, $11,000 fine, No FSBO exception | Federal Telemarketing Law |
| FCC rules mandate that it is unlawful to send without the recipient's permission unsolicited ads to a | residential or business fax |
| MUST have a business relationship, written consent, recipient volunteered fax number, state on ad the right to opt-out, MUST honor opt-outs received fwithin 30 days of receipt. | unsolicited fax ads |
| Sum of money given o licensee to show that buyer is serious about purchasing the property. | deposit |
| Payment related with a real estate transaction. | earnest money (faith deposits or binder deposits) |
| Account to deposit money trusted to broker, earnest money, rent deposit, security deposit | escrow account |
| Cash, checks, money orders, deeds and personal property are: | Trust funds |
| Sales associates receiving a binder deposit MUSTdeliver it to their broker-employer no later than the end of the next | business day |
| Brokers must place trust funds immediately into an | escrow account |
| The sales associate receives a deposit on Tuesday, and has until the end of the next business day (Wednesday) to deliver the deposit to the | broker |
| The broker has until the end of the third business day (Friday) to deposit the: | funds |
| The sales associate should immediately endorse the escrow check and include "For Deposit Only to the (name of the escrow account)" and turn it over to the | broker |
| Considered a promissory note or an earnest money deposit, it requires the seller's approval before accepting a: | postdated check |
| Brokers may maintain in a Florida commercial bank, credit union, or savings association an interest-bearing or noninterest-bearing: | escrow account |
| FREC requires brokers on all of their brokerage escrow accounts to be a: | signatory |
| Must be properly reconciled each month, and the broker must review, sign, and date the monthly bank reconciliations. | escrow accounts |
| Florida law ensures compliance with Florida license law by the brokerage firm's escrow accounting procedures reviewed by the: | broker |
| 1) indicate title co/attorney name, address, phone 2) 10 days after deposit due, request written receipt of deposit. If held by title co/attorney, verification is waived 3) 10 days after written request, broker gives verification/notice to seller broker | deposit procedure title company/attorney |
| Real estate license law governs only broker's: | escrow accounts |
| must deliver the funds to the escrow agent no later than the end of the third business day after the deposit was received by the brokerage. | broker |
| Broker MUST get written permission from all parties before depositing funds, specify who is entitled to interest earned [broker may receive the interest earned only all parties agree] | interest-bearing escrow account |
| Brokers MUST keep business records, books, accounts available for audit by the DBPR for at least: | 5 years |
| If broker's records are subject to litigation or served as evidence for litigation, the records MUST be preserved beyond the conclusion of the proceeding | 2 years |
| Broker may open THIS in a Florida bank, savings association, or credit union. | escrow account |
| Broker MUST review, sign, and date the monthly: | reconciliation statements |
| Broker MUST review the company's: | escrow accounting procedures |
| Brokers MUST maintain records of real estate transactions regardless of whether escrow funds were pledged (or two years after litigation if beyond the five-year period.) for: | 5 years |
| The funds may be held by a title company or an attorney's trust account If the broker chooses no to open an | escrow account |
| It is advisable that brokers keep property management escrow funds separate from: | sale escrow funds |
| A broker is allowed to place in the sales escrow account personal or brokerage funds for an amount up to: | $1,000 |
| Brokers may keep their own monies in a property management escrow account up to: | $5,000 |
| If a broker maintains sales and property management escrow funds in a single escrow account, the amount of personal or brokerage funds cannot exceed: | $5,000 |
| Florida law does NOT require separate sales and property management: | escrow accounts |
| A broker who maintains an escrow account MUST be a: | signatory |
| Brokers may not intermingle or commingle (mix) other types of funds with: | escrow deposits |
| Illegal practice of mixing a buyer's, seller's, tenant's, or landlord's funds with the broker's own money or mixing escrow money with the broker's personal funds or brokerage funds. | commingle funds |
| Misappropriation of another's property will expose the broker to charges of: | conversion |
| All deposited trust funds MUST be kept in THIS account until the transaction is closed: | escrow account |
| Unauthorized control or use of another person's personal property. | conversion |
| The deposit belongs to the depositor (buyer) until another party (seller) accepts the offer and acquires interest in the funds, when a broker is an | escrow agent |
| The broker must NOT deliver the deposit to the other party until the transaction is: | closed |
| When the buyer and the seller make demands regarding the disbursing of escrowed property that are inconsistent and cannot be resolved. | conflicting demands |
| The broker MUST notify the FREC, in writing, within 15 business days of receiving the: | conflicting demands |
| the broker must institute one of the four settlement (or escape) procedures within 30 business days from the time the broker received the: | conflicting demands |
| M Mediation (nonbinding) A Arbitration (binding) L Litigation E Escrow disbursement order (EDO) | settlement procedures |
| Informal, nonadversarial process to reach a negotiated settlement | mediation |
| If mediation is not completed, the licensee MUST employ other settlement procedures withing: | 90 days |
| The matter is submitted to a third party who makes a final decision. | arbitration |
| If disputing parties cannot agree, a party may file a lawsuit so that it can be resolved in a court. | litigation |
| Interpleader and declaratory judgment are: | litigation procedures |
| If the broker does not have a financial claim to the disputed escrow funds, the broker can deposit the funds with the court registry. The broker is then excused from the case, and the disputing parties argue their case in court. | interpleader |
| Brokers who believe they are entitled to a portion of disputed funds can file a court action. The judge declares each party's rights to the disputed escrow funds. | declaratory judgment |
| a determination of who is entitled to the disputed funds. | EDO (Escrow Disbursement Order) |
| An EDO procedure is only available if the funds are held in a brokerage escrow account. | brokerage escrow account |
| The FREC will NOT issue THIS, if the funds are held in an attorney's escrow account or are being held by a title company. | EDO |
| If the broker is informed in writing that the Commission will not issue an EDO, the broker mu MUST use other: In such an instance, the broker | settlement procedures |
| If the dispute is settled or igoes to court before the EDO is issued, the broker MUST notify the Commission which settlement procedure will be used within: | 10 business days |
| 4 settlement procedures | M Mediation (nonbinding) A Arbitration (binding) L Litigation E Escrow disbursement order (EDO) |
| 1. Earnest money deposit for sale of HUD-owned property 2. Written notice of buyer's intent to cancel the contract 3. Buyer in good-faith fails to satisfy the contract's financials | Exceptions to notice & settlement procedures |
| Licensee MUST Obtain written permission of all parties to release: | escrowed funds |
| If a broker has a good-faith doubt as to which party should receive the escrowed property, the broker must notify the FREC in writing and use one settlement procedures within: | 15 and 30 days |
| Party's honest intent to the contract's obligations | good faith |
| 1. Closing date has passed: no escrow disburse instructions 2. Closing date is has not passed: no escrow disburse instructions 3. One party in failed transaction does not respond to escrow disbursement inquiry 3. | good faith doubts |
| Sales associates must deliver escrow deposits to their broker by the end of the: | next business day |
| Brokers must deposit escrow funds by the end of the: | third business day |
| Brokers must notify the FREC in writing of conflicting demands or a good-faith doubt within: | 15 business days |
| Upon receiving conflicting demands or having a good-faith doubt, brokers MUST institute one of the settlement procedures within: | 30 business days |
| If a broker requests an EDO and the escrow dispute is either settled or goes to court before the EDO is issued, the broker must notify the FREC within: | 10 business days |
| Broker has no obligation to report an escrow dispute to the FREC or to institute a settlement procedure if a title company or an attorney is the | escrow agent |
| If broker receives commission or partial compensation before completing the real estate service, the funds MUST be placed into escrow or trust until the services are completed and transfer the funds into the: | broker's operating account |
| Prohibits a real estate licensee from collecting an advance fee for the listing of a time-share unit. | Time-Share Act |
| A broker or sales associate who furnishes rental information to a prospect tenant for a fee MUST provide repayment conditions in a: | receipt (contract) |
| A prospect tenant who does not obtain a rental is entitled to 75% of the fee paid if requested within: | 30 days |
| If the information provided to the prospective tenant is inaccurate, the broker must repay: | 100% of fee |
| T/F Advertising inaccurate rental property information/lists is illegal, a first degree misdemeanor, a fine of up to $1,000 and/or imprisonment of up to one year, and license suspension or revocation. | TRUE |
| if the rental information under this contract is not current or accurate, you may demand a return of your full fee paid within: | 30 days of contract |
| If you do not obtain a rental, you are entitled to receive a return of 75% of the fee paid, if you make demand within: | 30 days of contract |
| 30 days of this contract | Antitrust laws |
| The Sherman Antitrust Act, the Clayton Antitrust Act, and the Federal Trade Commission deal with: | preserve competition and ensure restraint of trade |
| It is illegal for real estate brokers to | conspire to fix commissions or fees for the services |
| A violation of antitrust laws is a | criminal offense |
| Two prohibited acts by antitrust law: | price fixing and market allocation |
| when competing brokers conspire to establish a standard commission rate | price fixing |
| when brokers agree to split up competitive market areas among themselves and not compete | market allocation |
| Licensees should never these make statements the impression of price fixing: | "the going rate" or a "normal commission rate" |
| A broker's office must independently of any other brokerage establish a | commission rate |
| T/F The amount of commission is negotiated in an agreement between broker and client; otherwise a judicial determined commission applies. | TRUE |
| A broker may place a lien on real property for nonpayment of commission only if he is authorized to do so in a | contractual agreement |
| In Chapter 475, Part III, the broker may claim a lien against the owner's net sales proceeds for the broker's unpaid commission: | Commercial Sales Commission Lien Act |
| Chapter 475, Part IV, gives a broker lien rights for earned commission associated with a brokerage agreement to lease commercial real estate: | Commercial Leasing Commission Lien Act |
| All monies earned by sales associates for any real estate service must NOT be paid by buyer/seller but by their: | employer |
| Agreement between broker and sales associate for splitting commissions | independent contractor agreement |
| A blanket authorization cannot be give to a | closing agent |
| Under FL law, a sales associate many not operate as a | broker nor independently |
| All commissions and all listings are legally the property of the | broker |
| "rebate"; unearned fee paid to licensee for non real estate transactions (fee for referring customers to home improvement businesses) | kickbacks |
| Prior to the payment and receipt of the kickback, the buyer and seller must be fully informed of | all facts regarding the kickback. |
| The kickback must not violate the | RESPA (Real Estate Settlement Procedures Act) |
| In Florida, a real estate licensee must also be licensed as a mortgage loan originator to be legally paid a fee for referring prospective borrowers to a | mortgage lender |
| The person must be properly licensed, if a license is required to perform the service, to receive a | kickback |
| Licensees are prohibited from sharing a commission for real estate services with an | unlicensed person |
| FL law ALLOWS sharing part of the commission with the buyer or seller provided the rebate is disclosed to all interested parties and is called a | legal kickback |
| FL law PROHIBITS licensee from paying an unlicensed person for | referral of business |
| FL law ALLOWS a property management firm or apartment complex owner to pay a referral's fee of no more than $50 to an | unlicensed apartment tenant |
| The DBPR must be notified within 10 days after the change by filing a Change of Status for Sales Associates and Broker Sales Associates (DBPR RE 11) form, disclosing the name and address of the: | new employer |
| Sales associates may not perform real estate services until they are properly registered with their: | new employer |
| In Florida, to divert buyers or sellers or to use confidential information is both | unethical and illegal |
| A sales associate may have agreed | non-compete agreement |
| As a result of employment, the sales associate is prohibited from disclosing | confidential information |
| Because of the fiduciary relationship between sales associate and employer, the obligations of the sales associate do not end with | termination of employment |
| Is prohibited from doing anything that might discredit the former employer or damage the goodwill of the employer's business. | licensee |
| A sales associate who duplicates records, listings, or confidential information from the office of a former employer without consent is guilty of | breach of trust |
| If a sales associate takes the original records from an employer's office, as opposed to duplicating them, then the sales associate is exposed to administrative penalties by the FREC, civil action in court, criminal penalties and is guilty of | larceny (theft) |
| collection of office rules and regulations to inform sales associates (not brokers) the office standards, floor time, listing and sales quotas, vacation schedules, advertising, commissions | policy manual |
| Sales associates, brokers, and state-certified appraisers can be issued a $300 citation for representing themselves as such when their license status is | inactive |
| Licensees may be fined $300 when they are not current members of the NAR and represent themselves as | REALTORS |
| Sole proprietorships, partnerships (general and limited), limited liability partnerships, corporations, and limited liability companies may register as | real estate brokers a/o brokerage entities |
| business owned by one person; has unlimited liability for own and employees' actions; no formal requirement to create | sole proprietorship |
| 2 or more partners (not sales/brokers assoc); register DBPR; at least 1 licensed active broker partner; licensed active broker for public/services; share profits; each partner responsible for debt; broker replaced 14 days; broker ensures all have licenses | brokerage general partnership |
| register DBPR "limited" name; limited liability own part (not creditors);cash/property investment but NOT managerial services;sales/brokers assoc may be limited partners (not general),no DBPR registration; min 1 active licensed broker deals with public | limited partnership |
| protection from personal liability for acts of another partner or employee | limited liability |
| Can be foreign or domestic; is a separate legal entity from owners MUST file Articles of Incorporation, use "company" or "incorporated" in the name | corporations |
| Sales associates and broker associates may NOT be officers or directors of a | brokerage corporation |
| Broker associate MUST change status to broker before becoming an | officer or director |
| Chapter 475.01, F.S., defines a person who is a general partner, officer, or a director of a partnership or corporation that acts as a real estate broker as a | broker |
| Corporations sole, joint ventures, business trusts, cooperative associations, unincorporated associations may NOT register as a | broker |
| All real estate brokerage entities must register with the | DBPR |
| "quasi partnership"; when actions of 2 or more create "appearance" of partnership; law considers partnership to exist; liable for each others debts/torts (wrongful acts); licensees in this partnership subject to license suspension | ostensible partnership |
| brokers permitted to do business in the same building provided each has own sign and use | separate names, signs, phones |
| personal liability protection; file FL Dept of State; "registered LLP" name; liable for own obligations | LLPs (Limited Liability Partnerships) |
| artificial person/legal entity: one or more persons; file articles of incorporation; foreign corp laws of another state/ does business in FL; Domestic corps incorporated in FL/ does business in FL; owners are stockholders & elect board of directors | Corporation |
| Sales and broker associates may NOT be members of the board of directors or officer of a | brokerage corporation |
| Sales and broker associates are NOT allowed to register as general partners a | general or limited partnership |
| In Florida, a corporation may be formed as a real estate brokerage firm after providing proof of | legal corporate existence |
| register DBPR; corporation name; min 1 licensed active broker, replaced in 14 days; inactive brokers & unlicensed may serve as non real estate officers/directors reg DBPR; licensed active broker to deal with public; sales/broker assoc may be shareholders; | Corporation |
| No person shall operate as a broker under a | trade name |
| Organized as a corporation for profit; broker should consult tax advisor | Nonprofit corporation |
| offers best features of corporation and partnership; owners protected from personal liability for debts but IRS treats LLC as partnership for taxes; Income taxed only once; flexibility in income/deductions; formed under Chapter 608, F.S. | LLC (Limited Liability Companies) |
| church organization; headed by a bishop who hold title to church property;may NOT register as broker | Corporation Sole |
| A broker should obtain a written opinion from a lawyer who has experience in | Corporation Sole |
| Cannot be registered as a real estate broker | Corporation Sole |
| Fraudulent and deceitful if the public is deceived into believe that a | partnership exists |
| T/A "trading as"; business name other than legal name of person doing business | trade name |
| The name registered with the Dept of State | fictitious name |
| A broker/ brokerage may use it after it is registered with the DBPR | trade name |
| If a brokerage cop or partnership conducts business under a fictitious name, it MUST comply with the | FL Fictitious Name Act |
| Cannot be registered or operate under more than 1 trade name | Brokerage Entitiy |
| Temporary; participate in 1 or limited number of transactions; obligations restricted to the transaction; can be composed of separate real estate brokers; if services for compensation are provided, both MUST be licensed brokers; may NOT register as broker | Joint Venture |
| Transactions with own real property; any number of persons invest a stipulated amount to buy, develop, and/or sell real estate. Title in the name of a trustee or group of trustees; may NOT register as broker; licensed for transaction basis compensation | Business Trust |
| Commercial business; convey, sell, buy own property, but cannot be registered as a real estate broker. | cooperative association |
| groups for noncommercial purpose; NOT partners/ incorporated; (ie. group of owners in subdivision); each liable only for individual share of all debts; buy/sell their own property through board of trustees; may not register as brokers | Unincorporated associations |
| "doing business as." | D/B/A |
| Chapter 475 (license law) does not require a sole proprietor or brokerage entity to register with the Department of State a | trade name |
| Sales associates and broker associates must work under a | broker or owner-developer |
| Broker associates and sales associates must have their licenses issued in their | legal names |
| A real estate sales associate or broker associate may form a professional corporation, limited liability company, or professional limited liability company for | income tax purposes only |
| A broker/sales associate is allowed to form a professional corporation, limited liability company, or professional limited liability company and DBPR issues a license with the entity designation licensee's | legal name |
| T/F No person shall operate as a broker under a trade name unless it is noted in the Commission's records and the license, nor operate as a partnership/corporation/officer/manager unless person holds valid registration of the partnership/corporation | TRUE |
| hired by licensees to perform administrative tasks associated with real estate transactions | Personal Assistants |
| Licensees increase their customer base and improve service by using | personal assistants |
| help with routine office activities, such as mass mailings, writing ads, and preparing market analyses. | Unlicensed personal assistants |
| A sales associate who employs an unlicensed personal assistant must be certain that the assistant only performs tasks permitted by | law |
| May not be paid commission or compensated on a transactional basis. | Unlicensed personal assistants |
| Are considered employees of the sales associate who must comply with all state and federal employment laws. | unlicensed personal assistants |
| Perform services (ie. show listed property); MUST be registered under employing broker who must pay for brokerage activities; sales associate pays for nonbrokerage activities salary/ hourly and may NOT pay for brokerage activities that require a license. | licensed personal assistants |
| time for sales associates to turn funds over to broker | end of next business day |
| time for broker to deposit funds into escrow account | end of 3rd business day |
| Time to notify the FREC if broker requested an EDO and the escrow dispute is either settled or goes to court before the EDO is issue | ten business days |
| time to replace broker of record | 14 calendar days |
| time to notify FREC of conflicting demands or good faith doubt | 15 business days |
| time to institute settlement procedure after receiving conflicting demands | 30 business days |
| time to preserve broker's business records (2 years after litigation, if longer than 5 years) | 5 years |
| A real estate broker is required to open an office and register it with the DBPR to have | active status |
| Must contain (1) trade name (2) broker's name (3) "Licensed/Lic. Real Estate Broker." If desired, names of the sales/broker associates below broker's name(s) with title (sales/broker assoc); a line/space must separate brokers' & associates' names. | brokerage office sign |
| A telephone call placed for encouraging the purchase of, investment in, property goods, or services. | telephone solicitation |
| Telemarketers (including real estate licensees) must search the National Do Not Call Registry before making telemarketing calls. | |
| The penalty is $10,000 per call for violating the: | Florida's Telemarketing Act |
| May be fined up to $11,000 per call for violating the federal | Telephone consumer Protection Act |
| The broker must be a signatory on the: | escrow account |
| an account for the deposit of money held by a third party in trust for another for safekeeping. | escrow account |
| May open escrow accounts in a Florida bank, savings association, or credit union. | brokers |
| T/S If the broker chooses not to open an escrow account, the funds may be held by a title company or in an attorney's trust account. | TRUE |
| Must deposit the funds into their escrow account no later than the end of the third business day after the brokerage received the funds. | brokers |
| Must deliver binder deposits to their broker-employer no later than the end of the next business day. | sales associates |
| If it is an interest-bearing account, the broker must get written permission from all parties before placing the funds into the: | broker's escrow account |
| A written authorization must specify who is entitled to the interest earned in an | interest bearing account |
| The broker may receive the | interest |
| Must maintain records of real estate transactions for five years, regardless of whether escrow funds were pledged (or two years after litigation, if beyond the five-year period). | brokers |
| Within 30 business days of receiving conflicting demands or of having a good-faith doubt, brokers must institute | one of the settlement procedures |
| Brokers must notify the FREC within 15 business in writing of | conflicting demands or good-faith doubt |
| Some real estate brokerage entities offer a list of properties available for rent to | prospective tenants |
| Tenant must receive a receipt which outlines two refund provisions if brokerage charges a fee for: | rental information |
| (1) if the rental information is in error, there is a 100% refund; and (2) if the prospective tenant is unable to find a suitable rental, there is a 75% refund. | rental information refund provisions |
| Must be made verbally or in writing within 30 days following the day of purchase: | request for refund |
| Failing to provide accurate and current rental information for a fee is a: | first degree misdemeanor |
| The penalty is a fine of not more than $1,000 and/or up to one year in jail for a: | first degree misdemeanor |
| Occurs when a broker receives money from someone other than the buyer or the seller for referring them to a particular vendor for services. (Buyers and sellers must be fully informed before the payment) | kickback |
| Florida law prohibits a real estate licensee from paying money for the referral of real estate business to an: | unlicensed person |
| Florida law allows the sharing of part of the commission to the buyer or the seller in a real estate transaction, provided THIS is disclosed to all interested parties: | rebate |
| Informal, non-adversarial process to reach a negotiated settlement that is not binding | mediation |
| matter is resolved in a court when parties are disputing escrow funds | litigation |
| matter is submitted to a disinterest 3rd party whom makes a binding judgment with prior consent of all parties | arbitration |
| the FREC determines who is entitled to disputed funds | EDO (escrow disbursement order) |
| buyer and seller make demands regarding disbursement of escrowed property that are inconsistent and cannot be resolved | conflicting demands |
| unauthorized use or retention of money or property that rightfully belongs to another person | conversion |
| fails to disclose the licensed name of the brokerage firm and provides only a post office box number, telephone, street address | blind advertisement |
| illegal practice of mixing a buyer's seller's, | commingle |
| filed with judge in a court of law if the broker believes that she is entitled to a portion of the disputed escrow funds | declamatory judgment |
| "good-faith deposit", "binder deposit", money given as good faith to accompany an offer to purchase or lease real property | earnest money deposit |
| account for deposit of money held by 3rd party in trust for another for safekeeping | escrow account |
| sum of money delivered to licensee for transaction | deposit |
| how soon trust funds must be deposited into escrow account | immediately |
| legal proceeding where the broker, having no financial interest in the disputed funds, deposits with the court the disputed escrow deposit so that the court can determine the rightful claimant | interpleader |
| licensee's boasting of a property's benefits | puffing |
| sum total of all deposits received, pending, and being held by broker at a point in time | trust liability |
Created by:
XAYA