5- Brokerage Operations

Question 0

Six individuals decide to form a real estate brokerage partnership. All six are planning to be active in the real estate sales. Which of the following statements best applies?

Answer 0

The partnership must be registered with the commission, and all six partners must be active real estate brokers

Question 1

A sales associate licensed with a real estate brokerage can be:

Answer 1

A stockholder

Question 2

Which of the following statements is correct regarding a licensed broker associate who is with a real estate brokerage partnership?

Answer 2

The broker associate may make earnest money deposits with the broker’s permission

Question 3

Which of the following forms of business cannot register to conduct real estate transactions?

Answer 3

Corporation sole

Question 4

Which of the following statements regarding an ostensible partnership is correct?

Answer 4

It is not a true partnership

Question 5

Who has the right to inspect a broker’s escrow account records?

Answer 5

The Department of business and professional regulation or it’s authorized representatives

Question 6

Which business is not required to file documents with the state?

Answer 6

Corporation sole

Question 7

A location would be required to register as a brokerage branch office if:

Answer 7

Sales associates are permanently assigned to the location

Question 8

Which statement best describes the office sign requirements for a brokerage office?

Answer 8

Every active broker must maintain a sign at each brokerage office or branch office

Question 9

Which method is not an authorized alternative for a broker to use in order to resolve an escrow dispute?

Answer 9

Obtain an attorney’s opinion

Question 10

When a real estate brokerage firm advertises listed property, ______.

Answer 10

The name of the brokerage must be included

Question 11

Which of the following is an approved depository for earnest money?

Answer 11

A bank within the state of Florida

Question 12

What must a real estate sales associate do upon receiving an earnest money deposit?

Answer 12

Deliver the funds to his or her broker or owner developer

Question 13

What action should a broker take if a commission dispute arises prior to closing?

Answer 13

Retene the exact amount of the disputed commission in the escrow account until the dispute is settled

Question 14

What percentage of the fee paid may a prospective tenant receive as a refund when provided with an accurate information?

Answer 14

100%

Question 15

Which statement regarding the registration of real estate branch offices is true?

Answer 15

A brokerage branch office may be closed and reopened at the same location during the same license period by requesting a re-issue

Question 16

Where may a real estate brokerage office be located?

Answer 16

In at least one room in a fixed location wherein books and records may be retained and negotiations may be conducted

Question 17

In which of the following institutions may a broker place escrow deposits?

Answer 17

Title companies, banks, savings and loan associations, and credit unions

Question 18

A, B, C, and D wish to form a real estate brokerage partnership. All partners will work with buyers and sellers, show properties and take listings. Which statement best describes the necessary legal requirements?

Answer 18

All partners must be licensed as active brokers

Question 19

Three individuals decide to open a real estate brokerage office. Which statement best describes the legal requirements?

Answer 19

At least one officer must be an active broker

Question 20

A business legally formed and registered as Rich Real Estate, Inc. Is considered to be what type of organization?

Answer 20

Corporation

Question 21

A sales contract specifies that the buyer will pay a secondary deposit by May 15. The sales associate neglected to collect a deposit on time. Which of the following statements is correct?

Answer 21

By forgetting to collect the deposit, the sales associate may cause harm to the seller, and could be charged with culpable negligence

Question 22

If a sales associate receives a post dated check, which of the following actions is the most appropriate?

Answer 22

The sales associate should immediately give the check to her employing broker

Question 23

Which business structure may be registered to broker real estate?

Answer 23

Limited partnership

Question 24

When two or more parties participate together in one transaction where no formal paperwork or registration is completed, which type of business relationship has typically been formed?

Answer 24

Joint Venture

Question 25

If a broker has conflicting demands on money held in escrow, what is the first thing the broker should do?

Answer 25

Notify the Florida real estate commission in writing

Question 26

What may a real estate sales associate or broker who does not pay attention to detail and cause harm to another be charged with?

Answer 26

Culpable negligence

Question 27

A buyer drops off an escrow check on Tuesday. To avoid any trouble with the FREC, the broker must deposit the check by close of business day on which day?

Answer 27

Friday

Question 28

What should a sales associate do if a purchaser wishes to present a post dated check?

Answer 28

Obtain approval from the seller and then turn the check over to the broker by close of business on the next business day

Question 29

Which of the following escrow dispute settlement procedures involves the use of interpleader?

Answer 29

Litigation

Question 30

When asked about the size of a home, the sales associate quoted the home as containing 5300 sq ft. of living area. In reality the home was only 4300 sq ft.This is an example of:

Answer 30

Misrepresentation

Question 31

A residential developer offers a contest whereby each individual who tours a model home receives a treasure box key. If the key opens the door to a model, the individual wins the home. Which of the following statements is correct?

Answer 31

This promotional program is permissible since no purchase was required

Question 32

A sales contract contains the contingency which states "This contract is contingent upon the buyer receiving 80% financing within an interest rate not to exceed 6% any 30 year term." The buyer applied for financing and was turned down by three different lenders, resulting in his /her inability to close on the transaction. The sellers claiming breach of contract. Which statement is correct concerning the escrow deposit?

Answer 32

The broker may return the escrow money without notifying the FREC since the contract was subject to financing

Question 33

Hey buyer has agreed to purchase the sellers home. The contract calls for a deposit of $10,000, to be placed in the brokers escrow account. The sales associate forgot to collect the deposit. The sales falls through and the seller is claiming uncollected deposit as liquidated damages. What were the sales associate likely charged with?

Answer 33

Culpable negligence

Question 34

Which business organization can legally register as a real estate brokerage?

Answer 34

General partnership

Question 35

There is a dispute over an escrow deposit. The parties agree to have a third-party hear both sides and make the final decision. What settlement (escape) procedure is being used to settle the dispute?

Answer 35

Arbitration

Question 36

If the real estate licensee is involved in a personal real estate transaction, which of the following would be correct?

Answer 36

The licensee must disclose his or her license status prior to entering into any serious negotiations