Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

A1 Florida Real Estate Sales Associate License > Chapter 5: Brokerage Operations > Flashcards

Chapter 5: Brokerage Operations Flashcards

1
Q

Each active broker is required to maintain an office, which must be registered with the _____.

A

DBPR

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

A broker’s office must be of _____ construction.

A

stationary

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

A broker must maintain books, records, and files pertaining to transactions of others in the office for at least _____ years.

A

5

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Branch office registration _____ be transferred.

A

cannot

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Branch office registration _____ be reissued if an office is re-opened.

A

can

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

A _____ is an ad that does not contain the registered name or trade name of the broker.

A

blind ad

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

All advertising is legally in the name of, and under the supervision of, ______.

A

the broker

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

A broker operating as a sole proprietorship must have a sign containing: the broker’s trade name, if any, the name of the broker, and the words ______.

A

Lic./Licensed Real Estate Broker

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

A sales associate or broker associate that lists a property in their name only can be charged with _____.

A

acting as a broker

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

If a licensee’s name is included in an advertisement, their _____ last must be present and as registered with the Commission.

A

last

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

When dealing in personal transactions, licensees must make it known to the public that they’re licensed prior to _____.

A

entering into serious negotiations

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

When listing their own personal property, licensees may: advertise the property as an individual and make no mention of licensure, OR _____.

A

advertise through a registered brokerage office and follow the normal procedures.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

A “good faith” deposit by the buyer is called

A

escrow money

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Defauly by the buyer of escrow in favor of the seller is called _____

A

liquidated damages

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Postdated checks are considered _____ and _____ be accepted as ernest money with the seller’s approval.

A

promissory notes

can

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

An agent _____ accept escrow checks made out in their name, endorsed to the broker.

A

can

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

An escrow account may be in a _____, _____, _____, or _____.

A

commercial bank
title company
credit union
savings association

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

A broker is authorized to maintain personal funds up to _____ in a sales escrow account and up to _____ in a property management escrow account for purpose of paying service charges.

A

$1,000

$5,000

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Depositing the personal funds of another person in an escrow account is considered _____.

A

commingling

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

The misuse or spending of escrow funds is called _____.

A

conversion

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

If a broker cannot or will not produce funds that belong to another person when required is called _____.

A

failure to account

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

A sales associate must deliver escrow money to their broker immediately, or _____.

A

by the end of the next business day

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

A broker must deposit escrow funds by the end of the _____ business day following original receipt.

A

third

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

A broker’s books and records must be preserved no less than _____ years from the date escrow funds were received.

A

5

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

Broker’s records must be preserved for at least _____ years after conclusion of litigation.

A

2

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

Escrow funds become the property of the buyer until ______.

A

a binding contract is entered into

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

The broker has no rights in escrowed funds until the funds _____.

A

become property of the seller

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

true/false: A broker may retain in the escrow account the exact amount of claimed commission in a commission dispute until it is settled by agreement, arbitration, or court order.

A

true

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

If choosing court action to settle a dispute, a _____ would be filed if a broker is not claiming any of the escrow.

A

Bill of Interpleader

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

Conflicting demands for escrow money from both the buyer and seller is called an _____.

A

escrow dispute

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

If a broker feels they are entitled to part of the escrow in an escrow dispute, they would request a _____.

A

Declaratory Decree

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

An _______ is when FREC decides the outcome of an escrow dispute.

A

Escrow disbursement order

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

In settlements, _____ is binding and _____ is not.

A

Arbitration

Mediation

34
Q

true/false: Buyers of condo units have a 3-day rescission period in which they can be refunded the escrow.

A

True

35
Q

______ is when a sales contract is contingent upon financing. A broker may return the deposit without notifying FREC.

A

Financing contingency

36
Q

A broker, in case of an escrow dispute, must notify the FREC within _____ days and institute an authorized settlement procedure within _____ days.

A

15

30

37
Q

Customers are entitled to _____% refund on rental lists if no rental is obtained, _____% if it contains false information.

A

75%

100%

38
Q

A broker is responsible for the actions of their partners and employees in a ______ suit, even if the broker had no knowledge of the actions.

A

civil

39
Q

_____ is failure of a broker to disclose information.

A

Concealment

40
Q

_____ is when a broker forms a scheme with another intending to defraud.

A

Conspiracy

41
Q

_____ is when a broker operates in a reckless, careless, or excessively negligent manner.

A

Culpable negligence

42
Q

_____ occurs when a broker uses another person’s funds for personal or business use.

A

Conversion

43
Q

_____ is a form of conversion that occurs when a broker is required to produce another’s money or property and cannot or will not.

A

Failure to account

44
Q

_____ is when a broker clouds title by filing false, void, or unauthorized documents.

A

Filing false documents

45
Q

_____ is a misstatement or omission of facts.

A

Misrepresentation

46
Q

A broker that promises they they will resell or repurchase property is guilty of _____.

A

promises to resell

47
Q

true/false: Brokers can hold lotteries for property if there is no purchase required for entry.

A

True

48
Q

Sales associates and broker associates are _____ an agent of the broker’s principal.

A

never

49
Q

Sales associates and broker associates are only compensated by their _____.

A

broker

50
Q

Sales associates and broker associates must report address changes with the DBPR within _____ days.

A

10

51
Q

A _____ is a business formed by an individual where the individual is personally liable.

A

sole proprietorship

52
Q

true/false: In a real estate brokerage partnership, unlicensed persons can be partners.

A

true

53
Q

true/false: Sales associates or broker associates can be partners in a real estate brokerage partnership.

A

false

54
Q

In the event that a partnership only has 1 active broker, and that broker resigns or dies, they must find another broker within _____ days. During this time, they can conclude business but not start any new business.

A

14

55
Q

true/false: In a real estate brokerage limited partnership, anyone may be a limited partner, licensed or not. Limited partners may not partake in management of the business

A

true

56
Q

true/false: In a limited liability brokerage partnership, partners are liable for acts and debts incurred by others.

A

false

57
Q

A _____ is an artificial person created by the law.

A

corporation

58
Q

true/false: One person in Florida can own a corporation and hold all board positons.

A

true

59
Q

A corporation created under Florida law is a _____ corporation.

A

domestic

60
Q

A corporation created under laws of another state is a _____ corporation.

A

foreign

61
Q

A corporation created under laws of another country is a _____ corporation.

A

alien

62
Q

A corporation _____ dissolved by bankruptcy.

A

is not

63
Q

A sales associate or broker associate _____ be an officer in a real estate brokerage corporation.

A

can not

64
Q

A church is an example of a corporation _____.

A

sole

65
Q

A quasi- or not-true partnership is called an ______ partnership.

A

ostensible

66
Q

The broker must maintain a sign at the entrance of the principal office and each branch office. The sign must be:

A

noticeable and easy to read by any person about to enter the office. Each sign must contain the name of the broker, together with the trade name (DBA/Doing Business as Name) if any. And either the words “licensed real estate broker” or “lic. real estate broker” must also appear on the office entrance signs.” (No other abbreviations are allowed.) of the firm or corporation or trade name of the firm or corporation, together with the name of at least one of the brokers. And the words “licensed real estate broker” or “lic. real estate broker.”

67
Q

good Faith doubt pertaining to distribution of escrow must be reported To FREC within how many days?

A

It must be reported within 15 business days of the last party’s demand

68
Q

Within __ business days, the broker must institute one of the settlement procedures as set forth in Section 475.25(1)(d)1., Florida Statutes.

A

within 30 business days, the broker must institute one of the settlement procedures as set forth in Section 475.25(1)(d)1., Florida Statutes.

Settlement Procedures: Mediation, Arbitration, Litigation, or Request for Escrow Disbursement Order.

Also, within that same 30-day period, the broker must notify the Commission of which settlement procedure was instituted – unless the settlement procedure utilized was to request that the Commission issue an Escrow Disbursement Order, which would make the notification redundant.

69
Q

If the broker has requested an Escrow Disbursement Order (EDO), and as a result, the broker is notified in writing by FREC that no Escrow Disbursement Order will be issued by FREC, then the broker has another ____ days to institute a different settlement procedure and notify the Commission of the procedure chosen.

Or, if the broker has requested an Escrow Disbursement Order from the FREC and the dispute is subsequently settled between the buyer and seller or goes to court because one of them decided to sue before the order is issued, the broker must notify the Commission within ___ business days of such event.

A

If the broker has requested an Escrow Disbursement Order (EDO), and as a result, the broker is notified in writing by FREC that no Escrow Disbursement Order will be issued by FREC, then the broker has another 30 days to institute a different settlement procedure and notify the Commission of the procedure chosen.

Or, if the broker has requested an Escrow Disbursement Order from the FREC and the dispute is subsequently settled between the buyer and seller or goes to court because one of them decided to sue before the order is issued, the broker must notify the Commission within __10__ business days of such event.

70
Q

T/F - Escrow funds held by broker for HUD sale or held by Title company are not subject to notify FREC under the good faith doubt procedures.

A

True

71
Q

Three scenarios that may create good-faith doubt for funds in trust by a broker.

A

Situations that are Considered Good-Faith Doubt The following are three scenarios that may create good-faith doubt for funds in trust by a broker.

  • The transaction has closed, and the broker has not received any claim or request for the funds to be disbursed.
  • The transaction has not closed, and one of the parties has expressed a desire to back out of the transaction and the broker has not received any claim or request for the funds to be disbursed.
  • The broker has received a conflicting request for disbursement of the funds.
72
Q

T/F - Mediation is binding to all parties.

A

False

73
Q

If the prospective tenant fails to obtain a rental, the person is entitled to a __% refund if a request for the refund is made within __ days of having received the list. If the rental information list provided by the broker or sales associate to a prospective tenant is not current or accurate in any material respect, ___% shall be repaid to the prospective tenant upon demand.

A

If the prospective tenant fails to obtain a rental, the person is entitled to a 75% refund if a request for the refund is made within 30 days of having received the list. If the rental information list provided by the broker or sales associate to a prospective tenant is not current or accurate in any material respect, the full fee (100%) shall be repaid to the prospective tenant upon demand.

74
Q

Selling of rental lists that are not current or accurate would be considered illegal and a ___ which is punishable by?

A

The selling of rental lists that are not current or accurate; illegal and per Florida Statutes is a first-degree misdemeanor. This is punishable by up to one year of imprisonment and/or fine of up to $1,000.

75
Q

What is puffing?

A

Talking up the good points without misstating facts.

76
Q

What is exaggeration?

A

Representing something as being better or worse than fact.

Exaggerating or misrepresenting the value of the property by a licensee may result in both the licensee and the broker being found guilty of three charges: fraud, breach of contract, and breach of trust.

77
Q

What is misrepresentation?

A

Fraudulent, or negligent, or innocent misstatement, or failure to supply complete information regarding material facts.

Exaggerating or misrepresenting the value of the property by a licensee may result in both the licensee and the broker being found guilty of three charges: fraud, breach of contract, and breach of trust.

78
Q

The following activities are illegal per Antitrust laws:

A

The following activities are illegal per Antitrust laws:

  • Price Fixing - Fixing commissions or fees for services between brokerages.
  • Market Allocation - Splitting up market areas between brokerages to avoid competition.
79
Q

Violations of RESPA may result in a fine of up to $_____ and imprisonment for up to ___ year.

A

RESPA: The Real Estate Settlement Procedures Act - Section 8: Kickbacks, Fee-Splitting, Unearned Fees

80
Q

Licensees must notify the DBPR within __ days of change to current mailing address. Failure to notify the DBPR can result in a citation and fine of $___.

A

Licensees must notify the DBPR within 10 days of change to current mailing address. Failure to notify the DBPR can result in a citation and fine of $500.

81
Q

Entities That May Not Register as a Brokerage

A
  • Corporation sole – A type of ecclesiastical corporation
  • Joint venture – Not an actual business entity. Rather two or more businesses coming together to accomplish a business opportunity.
  • Business trust – A trust held by a business and managed by appointed trustees for the benefit of one or more beneficiaries.
  • Cooperative association – A group of people brought together to achieve a common goal such as maintaining jointly held property.
  • Unincorporated association – A group of people brought together to achieve a common goal, however, the entity is not legally incorporated.

A1 Florida Real Estate Sales Associate License (20 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions