Florida Real Estate Principles - Chapter 5 - Key Terms

Front 1

Advance Fees

Back 1

Up-front money collected by a broker for the listing of real property.

Front 2

Arbitration

Back 2

The act of having a third party render a binding decision in a dispute between two parties.

Front 3

Blind Advertisement

Back 3

And advertisement of a principle's property providing only a telephone number, a P.O. Box, and/or an address without the licensed name of the brokerage firm.

Front 4

Commingle

Back 4

To mix together money or deposit with personal funds; combine; intermingle.

Front 5

Conflicting Demands

Back 5

When different parties each make claims that are inconsistent with one another.

Front 6

Conversion

Back 6

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

Front 7

Corporation

Back 7

And artificial or fictitious person formed to conduct to specified types of business activities.

Front 8

Deposit

Back 8

Earnest money or some other valuable consideration given as evidence of good faith to accompany an offer to purchase or rent. (See also Binder and Earnest money.)

Front 9

Earnest Money Deposit

Back 9

A type of money that a broker may handle for others in the ordinary course of business; also referred to as good-faith deposit or binder deposit.

Front 10

Escrow Account

Back 10

An account in a bank, title company, credit union, savings Association, or trust company used solely for safekeeping customer funds and not for deposit of personal funds; impound account or trust account.

Front 11

Escrow Disbursement Order (EDO)

Back 11

A course of action for determining the disposition of a contested deposit.

Front 12

General Partnership

Back 12

An association of two or more persons for the purpose of jointly conducting a business, each being responsible for all the debts incurred in the conducting of that business.

Front 13

Good Faith

Back 13

A party's honest intent to transact business, free from any intent to defraud the other party; each party's faithfulness to one's duty or obligation set forth by contract.

Front 14

Interpleader

Back 14

A course of action when two contesting parties cannot reach an arbitrated agreement; 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 who is the rightful claimant.

Front 15

Kickback

Back 15

Payment of money from someone other than the buyer or seller associated with the real estate business.

Front 16

Limited Liability Company (LLC)

Back 16

And alternative, hybrid business entity with the combined characteristics and benefits of both limited partnerships and S corporations.

Front 17

Limited Liability Partnership

Back 17

Any business entity that features protection from personal liability but with fewer legal restrictions compared with other business entities.

Front 18

Limited partnership

Back 18

A business entity consisting of one or more general partners and one or more limited partners.

Front 19

Mediation

Back 19

The act of having a third party attempt to reconcile a dispute between two parties.

Front 20

Ostensible Partnership

Back 20

One or more parties cause a third party to be deceived into believing that a business relationship exists when no such arrangement exists.

Front 21

Point of Contact Information

Back 21

Any means by which to contact the brokerage firm or individual licensee including mailing address(es), physical street address(es), e-mail address(es), telephone number(s), or facsimile telephone number(s).

Front 22

Policy Manual

Back 22

The notebook of written rules and regulations that set desired standards and procedures in office.

Front 23

Puffing

Back 23

Comments or opinions not made as representations of fact and thus not grounds for misrepresentation.

Front 24

Soul Proprietorship

Back 24

Dealing as an individual in business.

Front 25

Telephone Solicitation

Back 25

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