Section 4: Real Estate Brokerage Operations Flashcards Preview

Real Estate Exam Florida > Section 4: Real Estate Brokerage Operations > Flashcards

Flashcards in Section 4: Real Estate Brokerage Operations Deck (37):

Antitrust laws

State and federal laws designed to maintain and preserve business competition



A process whereby, with written prior consent from all parties, the matter is submitted to a disinterested 3rd party


Blind advertisement

Advertising that fails to disclose the licensed name of the brokerage firm and only provides a P.O. Box Number, telephone number, and/or street address



The illegal practice 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


Conflicting demands

When the buyer and the seller make demands regarding the disbursement of escrowed property that are inconsistent and can not be resolved.



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


Declaratory judgment

Filed with the judge in a court of law if the broker believes that she is entitled to a portion of the disputed escrowed funds



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


Earnest money deposit

Also referred to as a good faith deposit.
It is money given as good faith to accompany an offer to purchase or lease real property


Escrow account

An account for the deposit of money held by a third party


Escrow disbursement order

Determination by the FREC of who is entitled to disputed funds


General partnership

an association 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


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 a contract



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



Is 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


Limited liability company (LLC)

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


Limited liability partnership

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


Limited partnership

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



is 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


Market allocation

Is an agreement between brokers to split up competitive market areas among themselves and not compete in each other's areas



an informal, nonadversarial process intended to reach a negotiated settlement that is NOT binding


Ostensible 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 knowledge of the private relationship, would reasonably be deceived into believe that a partnership exists.


Personal assistants

Individuals hired by a licensee to perform administrative tasks associated with real estate transactions. The tasks performed by a personal assistant determines whether the assistant must be a real estate licensee


Point of contact information

Refers to any means by which to contact the brokerage firm or individual licensee including mailing addresses, physical addresses, email addresses, telephone numbers, or facsimile telephone numbers, the brokerage firm's name must be above, below or adjacent to the point of contact information


Policy manual

is a collection of office rules and regulations created to inform sales associates and employees of the standards and procedures in that particular office



Occurs when competing brokers conspire to establish a standard commission


Sole proprietorship

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


Telephone solicitation

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


Trust funds

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


How many brokers must be signatories on an escrow account?

At least 1


What are the 3 exceptions to notice requirements?

-Escrow deposits concerning a residential sale contract utilized by HID in HUD-owned property

-Buyers of residential condos who timely deliver written notice of their intent to cancel the contract

-Buyers who in good faith fail to satisfy the terms specified in the financing clause of a contract for sale and purchase


What refund is a tenant entitled to if using a rental list?

75% refund within 30 days of contract or list receipt


What can a sales associate pay a personal assistant to do?

Administrative work if they are licensed


What must be obtained before accepting a post date check?

Seller approval


What information about a title company must be on the sales contract?

-Company Name


Who can not be in general partnerships?

Sales associates and broker associates if they are registering as a real estate broker


What are joint ventures used for?

completing a single or fixed number of business transactions