Chapter 5: Brokerage Operations

Question 1

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

Answer 1

DBPR

Question 2

A broker’s office must be of _____ construction.

Answer 2

stationary

Question 3

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

Answer 3

5

Question 4

Branch office registration _____ be transferred.

Answer 4

cannot

Question 5

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

Answer 5

can

Question 6

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

Answer 6

blind ad

Question 7

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

Answer 7

the broker

Question 8

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 ______.

Answer 8

Lic./Licensed Real Estate Broker

Question 9

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

Answer 9

acting as a broker

Question 10

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

Answer 10

last

Question 11

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

Answer 11

entering into serious negotiations

Question 12

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

Answer 12

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

Question 13

A “good faith” deposit by the buyer is called

Answer 13

escrow money

Question 14

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

Answer 14

liquidated damages

Question 15

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

Answer 15

promissory notes

can

Question 16

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

Answer 16

can

Question 17

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

Answer 17

commercial bank
title company
credit union
savings association

Question 18

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.

Answer 18

$1,000

$5,000

Question 19

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

Answer 19

commingling

Question 20

The misuse or spending of escrow funds is called _____.

Answer 20

conversion

Question 21

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

Answer 21

failure to account

Question 22

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

Answer 22

by the end of the next business day

Question 23

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

Answer 23

third

Question 24

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

Answer 24

5

Question 25

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

Answer 25

2

Question 26

Escrow funds become the property of the buyer until ______.

Answer 26

a binding contract is entered into

Question 27

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

Answer 27

become property of the seller

Question 28

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.

Answer 28

true

Question 29

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

Answer 29

Bill of Interpleader

Question 30

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

Answer 30

escrow dispute

Question 31

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

Answer 31

Declaratory Decree

Question 32

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

Answer 32

Escrow disbursement order

Question 33

In settlements, _____ is binding and _____ is not.

Answer 33

Arbitration | Mediation

Question 34

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

Answer 34

True

Question 35

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

Answer 35

Financing contingency

Question 36

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

Answer 36

15 | 30

Question 37

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

Answer 37

75% | 100%

Question 38

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.

Answer 38

civil

Question 39

_____ is failure of a broker to disclose information.

Answer 39

Concealment

Question 40

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

Answer 40

Conspiracy

Question 41

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

Answer 41

Culpable negligence

Question 42

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

Answer 42

Conversion

Question 43

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

Answer 43

Failure to account

Question 44

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

Answer 44

Filing false documents

Question 45

_____ is a misstatement or omission of facts.

Answer 45

Misrepresentation

Question 46

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

Answer 46

promises to resell

Question 47

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

Answer 47

True

Question 48

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

Answer 48

never

Question 49

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

Answer 49

broker

Question 50

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

Answer 50

10

Question 51

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

Answer 51

sole proprietorship

Question 52

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

Answer 52

true

Question 53

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

Answer 53

false

Question 54

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.

Answer 54

14

Question 55

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

Answer 55

true

Question 56

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

Answer 56

false

Question 57

A _____ is an artificial person created by the law.

Answer 57

corporation

Question 58

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

Answer 58

true

Question 59

A corporation created under Florida law is a _____ corporation.

Answer 59

domestic

Question 60

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

Answer 60

foreign

Question 61

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

Answer 61

alien

Question 62

A corporation _____ dissolved by bankruptcy.

Answer 62

is not

Question 63

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

Answer 63

can not

Question 64

A church is an example of a corporation _____.

Answer 64

sole

Question 65

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

Answer 65

ostensible