Study guide chapter 5

Question 2

Requirement for an office:

Answer 2

(Pg 68) Must be of stationary construction. Motor home does not qualify as an office.

Question 3

Office Registration

Answer 3

(pg 68) Main office is transferable. Branches require a new registration when moving. A Branch may move to the new location as long as the registration is still valid.

Question 4

A blind Ad

Answer 4

A blind Ad is an ad that is placed without disclosing the Name of the Broker /brokerage.
It is an illegal Ad in violation of Florida License law. Disclosing Motivated Seller is breach of confidentiality and also constitutes a violation of the law.

Question 5

Receiving a postdated check as deposit:

Answer 5

(pg 70-72) Licensee must immediately give the check to the employing broker and get permission from the seller.

Question 6

Commingling

Answer 6

A broker may only keep $1000 cushion money on a sales/purchase account and may not mix personal or business funds with escrowed funds at any time. This is considered “Commingling” which is a violation of FS 475 and it is considered a form of fraud.

Question 7

Approved depositories for earnest money deposits:

Answer 7

(pg 71) Title Companies, Savings &
Loans, Finance Companies, Credit Unions. The account must be held in a Florida Bank.

Question 8

Procedure for disputed deposit:

Answer 8

(pg 73) Broker must notify FREC within 15 days.
Eg A broker may return the deposit to a buyer as long as the cancellation is due to a contingency not meeting contract requirements-Subject to appraisal and the appraisal not reaching the Purchase Price.(Any contract contingency applies)

Question 9

what should a broker do when they receive a deposit?

Answer 9

When a broker receives a deposit, the name of the escrow agent must be disclosed on
the contract and the listing agent should make a written verification request within 10
days of the due date and submit verification to the seller. (pg 74)

Question 10

Procuring Cause of Sale:

Answer 10

(pg 75) The agent who produces the buyer who is ready-Willing and Able to close. When producing a buyer with no contingencies the broker has earned the commission. Brokers are entitled to a compensation for professional services when they have performed as agreed and by which they were employed to perform.

Question 11

Referral Commission:

Answer 11

(pg 78) A referral commission may be paid to a licensee who refers a buyer or seller as long as the referring agent does not participate in the sale.

Question 12

sharing commission

Answer 12

A licensee sharing part of all the commission with parties in the transaction is an acceptable arrangement as long as it is fully disclosed. (pg78)

Question 13

What should a sales associate do if he didn’t get his commission?

Answer 13

A sales associate who is not compensated as agreed upon by the employing broker may
only file a suit against the employing broker who failed to pay. Pg 79

Question 14

Bill of Interpleader

Answer 14

Bill of Interpleader is a when the broker chooses not to claim part of the deposited being disputed by the parties in a litigation dispute resolution process (Pg 73)

Question 15

Licensing requirement in a brokerage partnership:

Answer 15

(pg 80) Each partner who Will be
performing real estate services must be license as a broker.

Question 16

what should a licensee do against the broker if he didn’t receive his commission?

Answer 16

A licensee can only bring lawsuit against the broker who withheld a commission that was
rightfully earned, even if the licensee resigns, they can only make a claim against the broker who failed to make payment. (Pg 79)

Question 17

Licensees responsibility to notify FREC:

Answer 17

10 days: Change of address of home and employer and 60 days when moving out of
state and becoming a non-resident.

Question 18

partners at a brokerage partnership

Answer 18

If partners in a brokerage partnership intend to provide real estate services to the public
they all must be licensed as active brokers.

Question 19

Limited Partnerhip:

Answer 19

May be registered (pg 81)

Question 20

A General Partnership

Answer 20

A General Partnership is formed simply by the agreement of the parties. (pg 81)

Question 21

Joint Venture:

Answer 21

A business relationship form by one or more people who agree to combine efforts for a single business transaction. ( pg 82)

Question 22

Corporation for profit

Answer 22

Corporation for profit may be registered to do business as a brokerage in Florida. (pg 83)

Question 23

Brokerage Corporation:

Answer 23

Brokerage Corpora on: Required registration and at least one partner must be a
broker. (pg 83)

Question 24

The corporate name to a Corporation for Profit

Answer 24

The corporate name to a Corporation for Profit must include the Word “company”,
“incorporated” or its abbreviation “Corp, Inc or Co”. No business shall have the name
Company unless it is legally incorporated.