Level 5

Front 1

Brokerage office requirements

Back 1

-Store records

-Be registered with the department of business and professional regulation DBPR

-Contain at least one room in a stationary building That will allow privacy while closing transactions

Front 2

How long must you keep records, accounts, and files for in the state of Florida after a transaction?

Back 2

5 years

Front 3

What is needed to open up a branch office?

Back 3

-Register each branch office

-Pay the registration fees

Front 4

What information goes on a promo sign?

Back 4

-The brokers name

-The words licensed broker or LIC

-The tradename if applicable

Front 5

What must be done in order to advertise with a fictitious name?

Back 5

You must advertise using the name on your license until you notify the DBPR and make the necessary changes.

Front 6

Blind Ad

Back 6

An ad in which a broker attempts to solicit real estate activity without disclosing that he is a license real estate broker

Front 7

Puffing

Back 7

Making an exaggerated claim in order to achieve a sale or some other objective

Front 8

Point of contact information

Back 8

Any way to reach the broker example; phone, address, email etc. Must appear below or around the brokers name when advertising.

Front 9

Telephone Consumer Protection Act (TCPA)

Back 9

Protects the consumers by regulating telephone calls and calls that solicit the participation in real estate transactions

Front 10

Do not call registry

Back 10

The registry mandates that if a customer does not want you to call them and they register themselves with the do not call registry your Brokeridge must remove their name from the brokerage call list within 31 days. Progress search the do not call registry before calling a customer.

Front 11

Unsolicited advertisement

Back 11

Advertisement that that has put upon another consumer without that person‘s permission, invitation or approval

Front 12

Can spam act

Back 12

-Passed in 2003 sets standards for Business use of email.

-Gives cuatomers the right to refuse emails.

-sets the penalties for businesses who violate its standards

Front 13

Can spam act

Back 13

Created to govern the use of email advertising

Front 14

Can spam act

Back 14

Controlling the assault of non-solicited pornography and marketing

Front 15

Deposit

Back 15

Payment made from party to another that shows a sencerity to fulfill the transaction. This is also called a binder deposit or a good faith deposit.

Front 16

Earnest money

Back 16

“Deposit” paid to confirm or commit to a contract. It provides proof that the party is earnest in their desire to follow through on the transaction and can be a full payment or a partial payment.

Front 17

Escrow account

Back 17

Accounts that allow for a process in which funds or documents are held by a disinterested third party on behalf of the other 2 parties of the real estate transaction until specific conditions are satisfied.

Front 18

Escrow accounts

Back 18

Also called trust accounts.

Front 19

Trust

Back 19

A legal entity where control Of some asset or property is transferred by a grantor to a third party to be held for the benefit of another.

Front 20

Commingling

Back 20

The illegal acts of mixing personal funds with a client funds

Front 21

Conversion

Back 21

“Stealing” occurs when funds (which have most likely been commingled) are actually spent on something.

Front 22

When does a sales associate have to turn in funds given to him?

Back 22

A sales associate needs to deliver their client funds to their employing broker by the end of the day the next business day.

Front 23

When are brokers required to deposit client funds into an escrow account?

Back 23

Brokers are legally required to place client funds into an escrow account immediately meaning by the end of the third business day after they have received the funds.

Front 24

5 years

Back 24

How long do you keep records of money deposits, check or funds you receive in real estate.

Front 25

5 years

Back 25

How long does record agreements need to be kept from the date the agreement is executed?

Front 26

2 years

Back 26

If your records are involved in a legal proceeding how long do you keep them after the proceeding ends.

Front 27

Conflicting demands

Back 27

Opposing or unresolvable demands that are made by the buyer and seller in a transaction regarding escrowed property disbursement. The broker needs to notify the FREC in writing within 15 business days of the conflicting demands.

Front 28

Good Faith Doubt

Back 28

A doubt that is honest, honors the business contract, is free of fraudulent motive and implies an intent to fulfill the contract. If a broker starts to have a good faith doubt they need to notify the FREC within 15 business days of this doubt.

Front 29

M.A.L.E.

Back 29

The options you have regarding conflicting demands.

Mediation: supervised discussion between the parties

Arbitration: parties dispute their conflict to a disinterested 3rd party and honor that 3rd parties judgement.

Litigation: Legal process of resolving a dispute in court.

Escrow disbursement order: FRECs decision regarding who is to recieve the escrow funds held in a brokerage escrow account.

Front 30

What are the penalties for false advertisement?

Back 30

-A year in jail

-A $1,000 fine

-Revocation of their license

Front 31

What must a broker do if charging a fee for rental information?

Back 31

They need to give the client a receipt that includes in writing that the client will be repaid: 75% of their fee if they do not get a rental from the listing. 100% if the broker provides out of date of false information.

Front 32

Vicarious Liability

Back 32

A person is liable for the actions of those acting with authority on that individual’s behalf. So pretty a brokerage has only one broker who assumes legal liability for the brokerages activities including what sales associate are doing.

Front 33

If a sales associate changes their broker or employer what must they do?

Back 33

-Notify the FREC within 10 days.

-Use the correct form.(you can’t just call the FREC up and leave them a voicemail)

Front 34

Which of the following is a commonly used tool for mitigating a brokerages vicarious liability?

Back 34

A brokerage office policy manual.

Front 35

A commission is usually a percentage of what?

Back 35

Sales price

Front 36

What should all licensees remember when it comes to how compensation and duties relate?

Back 36

Compensation does not equal duties

Front 37

In order to legally receive compensation from both parties in a real estate transaction a license holder should?

Back 37

-Fully disclose to all parties to the transaction that they are receiving compensation from both sides.

-receive informed consent in writing to the arrangement of joint compensation from both parties

Front 38

What does the broker negotiate when a listing broker takes on a client (seller) as a principal?

Back 38

-how compensation is earned

-what form compensation will

take

- Who will be eligible for compensation

Front 39

Lis Pendens

Back 39

A pending lawsuit on a particular piece of property.

Front 40

Lien

Back 40

Claim made by a creditor against real or personal property pledged by a debtor as collateral

Front 41

What happens if a client does not pay the agreed-upon commission?

Back 41

A broker can put a lien on the piece of real property.

Front 42

Commercial Real Estate Sales Commission Lien Act

Back 42

gives a broker Lien rights if their commission is not paid.

Front 43

What happens if the party who is supposed to pay the commission is a landlord and they refuse to?

Back 43

The lien is connected to the landlords interest in commercial property

Front 44

What do brokers need to disclose when creating a listing agreement with an owner?

Back 44

The Florida commercial real estate sales commission lien act provides that when a broker has earned a commission by performing licensed services under a brokerage agreement with you the broker may claim a lien against your net sales proceeds for the brokers commission the brokers lien rights under the act cannot be waived before the commission is earned.

Front 45

Antitrust

Back 45

Anti-trust laws are legislation aimed at promoting competition and preventing unfair trade practices and monopoly including: Collusion, Price fixing, Allocation of markets.

Front 46

What is the most important federal law governing antitrust?

Back 46

Sherman antitrust act

Front 47

Collusion

Back 47

This is an unlawful agreement between competitors to monopolize a market, disadvantage other competitors or otherwise undertake activities in violation of fair trade laws.

Front 48

What are Per Se violations?

Back 48

Acts that are considered inherit dentally illegal. They have been proven to be illegal time and time again.

Front 49

What is price fixing?

Back 49

Any effort made by competitors to jointly establish a fixed rate price or commission and it is considered an anti-trust violation.

Front 50

What is price fixing?

Back 50

Any effort made by competitors to jointly establish a fixed rate price or commission and it is considered an anti-trust violation.

Front 51

Market or customer allocation

Back 51

Violation of anti-trust law in which competitors agreed to portion the market amongst them selves

Front 52

Kickback

Back 52

Are payments made to a licensee for a service unrelated to the real estate transaction or a service that does not fall under the responsibility of the licensee. Kickboxer sometimes referred to as rebates.

Front 53

Business referral

Back 53

These are legal if the unlicensed person is also a tenant in the referred complex and the fee is no more than $50

Front 54

What protections do a sole proprietor personal asset have from their businesses losses and liabilities?

Back 54

None. Sole proprietors are personally liable for their business.

Front 55

Different forms of partnership

Back 55

General partnership

Limited partnership

Ostensible partnership (not allowed)

Front 56

General partnership

Back 56

A business entity consisting of 2 or more parties in which all co-owners actively share power, responsibilities and profit.

Front 57

How can a general partnership be created?

Back 57

-Orally

-In writing

-Through implied actions of the parties

Front 58

If a general partnership wishes to register as a real estate brokerage they must?

Back 58

-Register with the DBPR under the partnership’s name.

-Ensure at least one partner is a licensed broker.

-Ensure any partners providing real estate services are licensed as brokers.

-prohibit sales and broker associates from registering as general partners.

Front 59

Limited partnership

Back 59

A business entity composed of both general and limited partners. the general partners manage the business and assume most of the risk while the limited partners are passive investors with limited risk.

Front 60

If a limited partnership wishes to register as a real estate brokerage they must?

Back 60

-register with the DBPR under the partnerships name.

-ensure at least one general partner is a licensed broker.

-ensure all other general partners are registered with the DBPR.

-prohibit sales and broker associates from registering as general partners. They may be limited partners and are not required to register with the DBPR.

Front 61

What’s is the main difference between general and limited partnerships?

Back 61

Limited partners have less liability.

Front 62

Ostensible partnership

Back 62

The appearance that a partnership exists between 2 parties even though partenership was intentionally created. An ostensible partnership is not allowed in Florida.

Front 63

Coporation is considered what?

Back 63

It is consider a legal person.

Front 64

A business entity in which parties are protected against personal liability for business debts is a?

Back 64

A limited Liability Company (LLC) is a business entity in which party’s are protected against personal liability for business debt.

Front 65

If an active broker leaves the vacancy must be filled within how many days?

Back 65

14 calendar days

Front 66

Van a joint venture register as a brokerage?

Back 66

No but it is common for real estate brokers to come together and to create a Joint venture.

Front 67

What is a joint venture?

Back 67

When investors merge together their finances for one project or venture and when it is finished they part ways instead of continuing to do business together.

Front 68

Unincorporated association

Back 68

Groups of people who come together under a common purpose. They are typically recognized in their community or sphere even though they are not an official partnership or corporation.

Front 69

Business that can register as a brokerage

Back 69

Sole proprietor, general partnership, limited partnership, corporation, LLP, LLC

Front 70

Business that can not register as a brokerage

Back 70

Corporation sole, joint venture, business trust, cooperative association, unincorporated association

Front 71

PLLC

Back 71

A business designation or entity used by an individual licensed professional. Licensed real estate professionals can operate as a PLLC.

Front 72

PA

Back 72

A PA is a business entity or form that an individual license holder can take that allows their broker to payout commissions to the PA instead of the individual licensee. This is primarily done for the tax benefits.