Chapter 1-4 Key Point Review Flashcards Preview

Real Estate State Test Prep > Chapter 1-4 Key Point Review > Flashcards

Flashcards in Chapter 1-4 Key Point Review Deck (78):
1

Broker

A person who, for another and for compensation or other consideration (or anticipation of compensation or other consideration), performs real estate services.

2

Broker Associate

An individual who meeets the requirements of a broker but who chooses to work (operate) in real estate under the direction (employ) of another broker.

3

Caveat Emptor

A policy of let the buyer beware (buyer is responsible for own knowledge in real estate transactions).

4

Compensation

Anything of value or valuable consideration, directly or indirectly paid, promised, or expected to be paid or received.

5

License

A written document issued by the DBPR that serves as prima facie evidence (valid on its face) that the person is licensed on the date shown.

6

Moral turpitude

Conduct contrary to honesty, good morals, justice, or accepted custom.

7

Mutual recognition Agreement

A transactional agreement between Florida and another state that provides for two state to recognize each other's real estate prelicense education.

8

Nolo contendere

A plea of no contest entered in a criminal court of law. The defendant does not admit or deny the charges, though a fine  or sentence may be imposed by the court.

9

Owner-developer

An unlicensed entity that sells, exchanges, or leases its own property.

10

Prima facie evidence

A legal term used to refer to evidence that is good and sufficient on its face to establish a given fact or prove a case.

11

Real Estate Services

Real estate services include any real estate activities involving compensation for performing the service for another.

12

Reciprocity

The pratice of mutual exchanges of privileges. Some states have reciprocal arrangmeents for recognizing and granting licenses to licensed real estate professionals from other states.

13

Registration

The official placement of real estate business or individual into the DBPR's records (database)/

14

Resident

Resident of Florida, for applicantion and license purposes, is a person who has reided in Florida continuously for a period of 4 calendar months or more within the preceding year, regardless of whether the person resided in a recreational vehicle, hotel, rental unit, or other temporary or permanent location.

15

Sales Associate

A person who performs real estate services for compensation byt who does so under the direction, control, and management of an active broker or owner-developer.

16

Witthhold Adjudication

Occurs when the court determines that a defendant is not likley to again engage in a criminal act and that the ends of justice and the welfare of society do not require the defendant suffer the penaly imposed by law. After such determination, the court may withhold adjudication of guilt, stay (stop) the imposition of the sentence, and place the defendant on probation.

17

Active license

Status required to engange in real estate services. Sales associates achieve active status by finding an employer and registering with the DBPR under the employing broker or owner-developer.

18

Address of Record

The licensee's current mailing address or e-mail address to which the DBPR sends official communication.

19

Canceled

To become void without disciplinary action.

20

Cease to be in force (or ceased to be in effect)

When certain events occur, such as a broker cahnging a business address, the licensee cannot conduct business until the DBPR receives notification of the change.

21

Current Mailing address

The current residential address licensee uses to receive mail through the U.S. Postal Service.

22

Executive Power

Powers of the Florida Real Estate Commission (FREC) include the power to regulate and enforce license law.

23

Group License

Issued to a sales associate or broker associate employed by an owner-developer (real estate developer) who owns properties in the name of various entities and entitles the licensee to work for the separate sales projects owned by the owner-developer.

24

Ineffective

A license that exists, but the licensee cannot use it because it is either inactive or has been suspended.

25

Involuntary Inactive Status

Status due to a license which was not renewed at the end of the license period.

26

Ministerial duties

Duties of the Division of Real Estate (DRE) involve record keeping

27

Multiple Licenses

When a broker holds more than one broker's license

28

Promulgate

To enact an publish rules and regulations

29

Quasi-judicial

Powers of FREC include the power to grant or deny license applications, to determine license law violations, and to administer penalties.

30

Quasi-legislative

Powers of FREC include the power to enact administrative rules and regualtions and to interpret questions regarding the practice of real estate

31

Void

To no longer exist

32

Voluntary Inactive

The license status that reults when a licensee has applied to the DBPR to be placed on inactive status.

33

Agent

A person entrusted with another's business; the person authorized by the principal to act on the principal's behalf.

34

At arm's length

Means that people conduct negotioations on their own behalf without trusting the other's fairness or integrity and without being subject to the other's control or influence.

35

Customer

A member of the public who is or may be a buyer or a seller of real property and may or may not be represented by a real estate licensee in an authorized brokerage relationship.

36

Designated sales associates

Two real estate licensees from the same brokerage company designated to represent the buyer and the seller as single agents in nonresidential transactions

37

Dual agent

Refers to a broker who represents as a fiduciary both the buyer and the seller in a residential real estate trnasaction; dual agency is illegal in Florida.

38

Fiduciary 

Occurs when a broker is in a relationship or trust and confidence with the broker as agent and the seller or the buyer as principal.

39

Fraud

the intent to misrepresent a material fact or to deceive to gain an unfair advantage or to harm another person.

40

General agent

Authorized by the princiapl to handle the affairs related to a business or trade, or to handle all the business at a certain location; for example, a property manager.

41

Misrepresentation

The misstatement of fact or the omission or concealment of a factual matter.

42

No brokerage relationship

An arrangement where the broker does not represent either the buyer or the seller, but instead the broker works to facilitate the transaction.

43

Principal

the seller (or buyer, but not both) in a single agent relationship; the principal authorizes teh agent to act on the principal's behalf; while the princiapl is responsible for the actions of the agent.

44

Residential sales

Defined in Florida license law to mean the sale of improved residential property of four or fewer units, the sale of unimproved residential property intended for use of 4 or fewer units, or the sale of agricultural propery of ten or fewer acres.

45

Single Agent

Broker who represents either the buyer or the seller (but not both) and has a fiduciary relationship with the party represented

46

Special Agent

Authorized by the buyer or the seller to handle only a specific business transaction or to perform a specific act; a broker who has a single agent relationship is a special agent with limited power or authority.

47

Subagent

A person authorized to assist and represent the agent and whose duties are delegated by the original agent

48

Transaction broker

Broker who provides limited representation to a buyer, a seller, or both in a real estate transaction, but who does not represent either party in a fiduciary capacity or as a single agent.

49

Universal agent

Authorized by the principal to perform all acts that the principal may personally perform and that may be lawfully delegated.

50

Arbitration

Process whereby, with the prior written consent of all parties to the dispute, the matter is submitted to a disinterested third party who makes a binding judgement.

51

Blind advertisemenet

Advertising that fails to disclose the licensed name of the brokerage firm and that provides only a post office box number, telephone number, and/or street address.

52

Commingle

the illegal pratice 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.

53

Conflicting demands

occur when the buyer and seller make demands regarding the disbursement of escrowed property that are inconsistent and cannot be resolved.

54

Conversion

The unauthorized use or retention of money or property that rightfully belongs to another person.

55

Corporation

an artificial person or legal entity created by law and consisting of one or more persons that is formed by filing articles of incorporation

56

Declaratory judgment

declaratory judgment is filed with the judge in a court of law if the broker believes that she is entitled to a portion of the disputed escrow funds.

57

Deposit

a sum of money, or its equivalent, delivered to a real estate licensee as earnest money, payment, or partial payment in connection with a real estate transaction.

58

Earnest money deposit

Good-faith deposit or binder deposit

Money given as good faith to accompany an offer to purchase or lease real property.

59

Escrow account

an account for the deposit of money held by a 3rd party in trust for another for safekeeping

60

Escrow disbursement order (EDO)

a determination by the FREC of who is entitled to dispute funds.

61

General partnership

an assocaition of 2 or more persons for the purpose of jointly conducting a business together and each to share the profits and losses of the business.

62

Good faith

A party's honest intent to transact business, free from any intent to defraud the other party, and generally speaking, each party's faithfulness to his or her duties or obligations as set forth by contract.

63

Immediately 

how soon trust funds must be deposited into an escrow account according to Chapter 475, F.S.

64

Interpleader

A legal proceeding whereby 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.

65

Kickback

occurs when a broker receives money from someone other than the buyer or the seller, such as for referrin a buyer or seller to a particular vendor for services

66

Limited Liability Company (LLC)

A form of business organization that offers the best features of a corporation and a partnership; members of  LLC are protected from personal liability as in a corporate form of ownership and tax advantages of a partnership.

67

Limited Liability Partnership (LLP)

features protection from personal liability in much the same way as a limited partners in a limited partnership

68

Limited partnership

consists of one or more general partners and one or more limited partners

69

Litigation

One of the settlement (escape) procedures that provides for the matter to be resolved in a court of law when there are disputing parties regarding escrow funds.

70

Mediation

an informal, nonadverarial process intended to reach a negotiated settlement that is not binding

71

Oestensible partnership (or quasi partnership)

exists where the parties do not form a real partnership but act or do business in such a manner that the public, having no knwoledge of the private relations of the parties, would reasonably be deceived into believing that a partnership exists. (Note: Brokers may share office space provided they make true status known on signs, telephone listings, advertising, and so forth)

72

Point of contact information

Any means by which to contact the brokerage firm or individual licensee including mailing address(es), physical stree address(es), e-mail address(es), telephone number(s), or fascimile (FAX) telephone number(s); the brokerage firm's name must be above, below, or adjacent to the point of contact information.

73

Policy manual

Collection of office rules and regulations created to inform sales assocaites and employees of the standards and procedures in that particular office.

A policy manual is an important document in brokerage office regardless of size.

74

Puffing

Term used to describe a licensee's boasting of a property 's benefits

75

Sole proprietorship

a business owned by one person with no legal separation between owner and the business

76

Telephone solicitation

hte initiation of a telephone call for the purpose of encouraging the purchase of, or investment in, property, goods, or services

77

Trust Funds

cash, checks, money orders, or other items that can be converted to cash and that are held by a third party in connection with a real estate transaction

78

Trust liability

The sum total of all deposits received, pending, and being held by the broker at a point in time