Chapter 5

Front 1

A trade name must be registered with the __________________________________ at the department of state.

Back 1

division of corporations

Front 2

A sales associate can be a stockholder in a brokerage corporation but may not be an ________________ or ______________

Back 2

Officer of director

Front 3

Anyone, whether licensed or not, can be _________________________ in a real estate brokerage limited partnership.

Back 3

limited partnership

Front 4

Two or more brokers who share office space but do not maintain their separate status as independent brokers could be charged as being _________________________________

Back 4

Ostensible partners

Front 5

A sales associate and a broker associate must report any change of employer or address change to the department within __ days on a form prescribed for such use

Back 5

10 days

Front 6

When a broker has conflicting demands for funds held in escrow, he or she must report such conflict to the Commission within ___ days

Back 6

15 days

Front 7

A broker who feels he or she is entitled to some or all of escrowed funds that are the subject of a dispute may submit the dispute to the court by filing an action for a ________________________________

Back 7

declatory decree

Front 8

A broker who places business or personal funds with escrowed funds has committed a form of fraud called____________________

Back 8

commingling

Front 9

A brokerage firm that operates under a fictitious name is required to register the name with the __________________

Back 9

DBPR

Front 10

If rental information is found to be materially incorrect the application can request what percentage of refund within how many days?

Back 10

100% refund if within 30 days

Front 11

A sales associate licensed with a real estate brokerage corporation can be which of the following?

(a) An officer

(b) A stockholder

(c) A director

(d) An officer and a director

Back 11

(b) A stockholder

Front 12

Six individuals decide to form a real estate brokerage partnership. All six individuals are planning to be active in real estate sales. Which statement best applies?

(a) The partnership must be registered with the Commission, and all six partners must be active real estate brokers.

(b) At least one partner must be licensed as an active broker.

(c) Only two partners must have a real estate license.

(d) A partnership cannot be formed as a brokerage business.

Back 12

(a) The partnership must be registered with the Commission, and all six partners must be active real estate brokers.

Front 13

Which of the following statements is correct regarding a licensed broker associate who is with a real estate brokerage partnership?

(a) The broker associate may be a member of the partnership.

(b) The broker associate may make earnest money deposits with the broker's permission.

(c) The broker associate must hold an active broker's license.

(d) The broker associate may not provide real estate brokerage services to others.

Back 13

(b) The broker associate may make earnest money deposits with the broker's permission.

Front 14

All of the following business formations can register to conduct real estate transactions, EXCEPT:

(a) Corporation for profit

(b) Not-for-profit corporation

(c) Corporation sole

(d) Limited partnership

Back 14

(c) Corporation sole (religious house of worship)

Front 15

If a broker has conflicting demands on money held in escrow, what is the first thing the broker should do?

(a) Consult with a real estate attorney who is experienced in handling escrow problems.

(b) Refer the parties to FREC.

(c) Give the escrow money to the closing agent.

(d) Notify the Florida Real Estate Commission in writing.

Back 15

(d) Notify the Florida Real Estate Commission in writing. (within 15 business days)

Front 16

If a sales associate receives a post-dated check, which of the following actions is the most appropriate?

(a) The sales associate should deliver the check to her employing broker by the end of then next business day.

(b) The sales associate should refuse to submit the offer without a cashier's check.

(c) The sales associate should hold the check, and give the check to her employing broker when it becomes valid.

(d) The sales associate should cash the check, and deposit the funds into her broker's escrow account.

Back 16

(a) The sales associate should deliver the check to her employing broker by the end of then next business day.

Front 17

Which of the following statements regarding an ostensible partnership is correct?

(a) An ostensible partnership is required to file documents with the Secretary of State.

(b) An ostensible partnership is not a true partnership.

(c) An ostensible partnership cannot be created by real estate brokers.

(d) An ostensible partnership will not be treated as though the participants were partners.

Back 17

(b) An ostensible partnership is not a true partnership.

Front 18

Who has the right to inspect a broker's escrow account records?

(a) The parties to a real estate transaction

(b) The Department of Business and Professional Regulation or its authorized representatives

(c) The state Attorney General

(d) A public defender

Back 18

(b) The Department of Business and Professional Regulation or its authorized representatives

Front 19

All of the following businesses are required to file documents with the state, EXCEPT:

(a) Corporation for profit

(b) Not-for-profit corporation

(c) Corporation sole

(d) Cooperative association

Back 19

(c) Corporation sole (religious)

Front 20

Which condition would require a location to be registered as a brokerage branch office?

(a) Tables and chairs are provided for sales associates and customers.

(b) The location is used as a shelter to get out of the sun or rain.

(c) Literature which contains the broker's office address is handed out.

(d) Sales associates are permanently assigned to the location.

Back 20

(d) Sales associates are permanently assigned to the location.

Front 21

Which statement best describes the office sign requirements for a brokerage office?

(a) Only one sign per firm is required regardless of the number of offices.

(b) Each sales associate associated with the firm must have a separate sign.

(c) Every active broker must maintain a sign at each brokerage office or branch office.

(d) Office signs are permitted but not required by law.

Back 21

(c) Every active broker must maintain a sign at each brokerage office or branch office.

Front 22

All of the following are authorized alternatives for a broker to use in order to resolve an escrow dispute, EXCEPT:

(a) Seek an escrow disbursement order from the Commission.

(b) Submit the escrow dispute to mediation or arbitration.

(c) Seek a court decision to resolve the escrow dispute.

(d) Obtain an attorney's opinion.

Back 22

(d) Obtain an attorney's opinion.

Front 23

A real estate brokerage firm advertises a listed property. Which requirement is correct?

(a) The name of at least one sales associate must be included in the ad.

(b) The name of the brokerage must be included in the ad.

(c) The ad may not be prepared by sales associate.

(d) The names of sales associates may not be included in the ad.

Back 23

(b) The name of the brokerage must be included in the ad.

Front 24

Which of the following is an approved depository for earnest money?

(a) A bank within the state of Florida

(b) A stock brokerage firm

(c) A broker's personal checking account

(d) A safe located in a real estate office

Back 24

(a) A bank within the state of Florida

Front 25

What must a real estate sales associate do upon receiving an earnest money deposit?

(a) Deposit the funds in an insured bank account.

(b) Deliver the funds to his or her broker or owner-developer.

(c) Deposit the funds in an escrow account.

(d) Deposit the funds with the Florida Real Estate Commission.

Back 25

(b) Deliver the funds to his or her broker or owner-developer

Front 26

What action should a broker take if a commission dispute arises prior to closing?

(a) Return the deposit to the buyer or seller based on which party asks for it first.

(b) Withdraw the amount of the commission from the escrow account.

(c) Retain the exact amount of the disputed commission in the escrow account until the dispute is settled.

(d) Distribute the escrow funds according to the directions of the company attorney.

Back 26

(c) Retain the exact amount of the disputed commission in the escrow account until the dispute is settled.

Front 27

A prospective tenant pays a licensee to find a rental. What percentage of the fee paid may the prospective tenant receive if the licensee provides inaccurate information?

(a) 100%

(b) 75%

(c) 25%

(d) 0%

Back 27

(a) 100%

Front 28

Three individuals decide to open a real estate brokerage office. Which statement best describes the legal requirements?

(a) Sales associates are not permitted to own stock in the entity.

(b) All sales associates, broker associates, and brokers who are registered with the firm must be either officers or directors.

(c) If a sales associate wishes to be an officer or director, his or her license must be placed on inactive status.

(d) At least one officer must be an active broker.

Back 28

(d) At least one officer must be an active broker.

Front 29

A buyer drops off an escrow check on Tuesday. To avoid any trouble with FREC, the broker must deposit the check by close of business on which day?

(a) The following Monday.

(b) Wednesday.

(c) Thursday.

(d) Friday.

Back 29

(d) Friday.

Front 30

When two or more parties participate together in one transaction where no formal paperwork or registration is completed, which type of business relationship has typically been formed?

(a) Joint venture

(b) Corporation

(c) General partnership

(d) Limited partnership

Back 30

(a) Joint venture

Front 31

Which statement regarding the registration of real estate branch offices is true?

(a) A broker may conduct business from more than one unregistered office as long as the principal office is registered with the DBPR.

(b) A brokerage branch office may be closed and reopened at the same location during the same license period by requesting a reissue.

(c) When a registered branch office is moved, a fee must be paid, but a new application for registration is not required.

(d) A temporary shelter must always be registered as a branch office.

Back 31

(b) A brokerage branch office may be closed and reopened at the same location during the same license period by requesting a reissue.

Front 32

Where may a real estate brokerage office be located?

(a) A residential neighborhood which prohibits commercial properties

(b) In a motorhome

(c) In at least one room in a fixed location wherein books and records may be retained and negotiations may be conducted

(d) In a broker's car

Back 32

(c) In at least one room in a fixed location wherein books and records may be retained and negotiations may be conducted

Front 33

In which of the following institutions may a broker place escrow deposits?

(a) Title companies, banks, savings and loan associations, and credit unions

(b) Mortgage companies, savings and loan associations, finance companies, and credit unions

(c) Insurance companies, savings and loan associations, credit unions, and title companies

(d) Stock brokers, finance companies, banks, savings and loan associations, and mortgage companies

Back 33

(a) Title companies, banks, savings and loan associations, and credit unions

Front 34

Four individuals wish to form a real estate brokerage partnership. All partners will work with buyers and sellers, showing properties and taking listings. Which statement best describes the necessary legal requirements?

(a) All partners must be licensed as active brokers.

(b) The partners are not required to have real estate licenses, but the profits must be distributed equally amongst all four partners.

(c) The partnership must be registered with the Department of Business & Professional Regulation and at least one partner must be licensed as an active broker.

(d) At least one partner must be licensed as an active broker and the others may be licensed as sales associates, or brokers.

Back 34

(a) All partners must be licensed as active brokers.

Front 35

A business legally formed and registered as Rich Real Estate, Inc. is considered to be what type of organization?

(a) Joint venture

(b) Limited partnership

(c) General partnership

(d) Corporation

Back 35

(d) Corporation

Front 36

Which business structure may be registered to broker real estate?

(a) Trust

(b) Joint venture

(c) Limited partnership

(d) Unincorporated association

Back 36

(c) Limited partnership

Front 37

What should a sales associate do if a purchaser wishes to present a post dated check?

(a) Obtain approval from the seller and then turn the check over to the broker by close of business on the next business day.

(b) Check with the broker to make sure the broker agrees with the payment.

(c) Turn the check over to the broker by close of business the next business day.

(d) Return the check to the purchaser and ask them for a new one with the correct date.

Back 37

(a) Obtain approval from the seller and then turn the check over to the broker by close of business on the next business day.

Front 38

Which of the following escrow dispute settlement procedures involves the use of Interpleader?

(a) Broker asks FREC for an Escrow Disbursement Order

(b) Mediation

(c) Litigation

(d) Arbitration

Back 38

(c) Litigation

Front 39

A sales contract contains a contingency which states "this contract is contingent upon the buyer receiving 80% financing with an interest rate not to exceed 6% and a 30 year term." The buyer applied for financing and was turned down by three different lenders, resulting in his/her inability to close on the transaction. The seller is claiming breach of contract. Which statement is correct concerning the escrow deposit?

(a) The broker may return the escrow money without notifying the FREC since the contract was subject to financing.

(b) The agent should check with FREC before disbursing any money.

(c) The Broker may return the money provided there was a rescission period also documented in the Sales Contract.

(d) Escrow money is always nonrefundable.

Back 39

(a) The broker may return the escrow money without notifying the FREC since the contract was subject to financing.

Front 40

Which business organization can legally register as a real estate brokerage?

(a) Corporation Sole

(b) General Partnership

(c) Ostensible Partnership

(d) Joint Venture

Back 40

(b) General Partnership

Front 41

There is a dispute over an escrow deposit. The parties agree to have a 3rd party hear both sides and make the final decision. What settlement (escape) procedure is being used to settle the dispute?

(a) Mediation

(b) Arbitration

(c) Interpleader

(d) Escrow Disbursement Order

Back 41

(b) Arbitration

Front 42

If a real estate licensee is involved in a personal real estate transaction, which of the following would be correct?

(a) The licensee must disclose his or her license status in any advertising.

(b) The licensee must disclose the license status on any yard sign using terminology such as "owner agent."

(c) The licensee is not required to disclose his or her license status in a personal transaction.

(d) The licensee must disclose his or her license status prior to entering into any serious negotiations.

Back 42

(d) The licensee must disclose his or her license status prior to entering into any serious negotiations.

Front 43

Bob is a licensed sales associate, employed by broker Jerry. Jerry fails to pay Bob a commission, so Bob resigns and is hired by broker Sam. Bob decides to sue for his lost commission. Which of the following is accurate regarding this scenario?

(a) Bob cannot bring a legal action for the claimed commission against anyone other than broker Jerry.

(b) Broker Sam must sue broker Jerry for the commission due to Bob, since Bob is now employed by Sam.

(c) Sam assumed responsibility for the unpaid commission when he employed Bob.

(d) Bob may file a lis pendens against either Sam or Jerry for the commission due him.

Back 43

(a) Bob cannot bring a legal action for the claimed commission against anyone other than broker Jerry.

Front 44

What is a blind ad?

Back 44

An advertisement that does not contain the registered trade name of the broker, or for which there is doubt that the ad is that of a real estate broker.

Front 45

WHen you have a real estate license and you are selling your house, when do you have to let the other party know?

Back 45

the discolsure should take place prior to entering into serious negotiations

Front 46

What is an escrow fund?

Back 46

Funds held by a third party on behalf of two parties in a transaction until it receives the appropriate instruction for disbursement or until the contracted obligations have been fulfilled. TITLE companies can hold escrow

Front 47

What are the three things a title company needs to do to hold earnest depost/ escrow funds?

Back 47

1) Name address and telephone of the title company or attorny whom the deposit was placed

2) within 10 business days they need a receipt of deposit

3)

Front 48

What does it mean to commingle?

Back 48

When a broker deposits personal funds of any person with any funds being held in escrow, trust, or on condition.

Front 49

What is conversion?

Back 49

When a broker takes out money for personal use from an escrow account. commingling or intermingling of, or failure to account for funds is fraudulent

Front 50

Where do escrow accounts need to be located ?

Back 50

IN THE STATE OF FLORIDA! (title company, banking institution, credit union, or savings and loan associated that is located and doing business in florida.

Front 51

How long must escrow fund books and records be kept?

Back 51

books and records must be preserved for a period of not less than 5 years from the date the escrow funds were received by the broker.

Front 52

Who must agree to disburse escrow funds?

Back 52

the buyer and the seller must agree to any disbursement of any funds held by the broker.

Front 53

Escrow dispute

Back 53

conflicting requests in which both teh buyer and seller demand the broker release escrow funds

Front 54

Good Faith Doubt

Back 54

during an escrow dispute when the broker feels they knwo which person is entitled to the escrowed property/funds, they msut give written notificiation to the Commission (FREC) within 15 business days from the date of the last party's demand. The broker must resolve the dispute within 30 business days from the last party's demand

Front 55

What are the escrow dispute settlement procedures? (4- MEAL)

Back 55

Mediation

Arbitration

Litigation

Escrow disbursement order

Front 56

What is Mediation?

Back 56

A third party is appointed to assist in reaching an agree. NO POWER TO IMPOSE A DECISION. 90 days

Front 57

What is Litigation?

Back 57

COURT ACTION 2 methods avaliable:

1) bill of interpleader if the broker does not claim any of the money

2) declaratory decree if the broker feels they are entitled to some or all of the money.

Front 58

What is Arbitration?

Back 58

an arbitrator listens to both parties and decides how the funds should be disbursed and issues an award.

Front 59

What is Escrow disbursement order?

Back 59

The broker requests that the COMMISSION (FREC) determines the party entitled to the escrow. the commission then disburses an escrow disbursement order

Front 60

What is HUD?

Back 60

Housing Urban Department

Front 61

What are the general duties of a sales associate/ broker associate?

Back 61

They are an agent of the broker or owner-developer

Front 62

Sales associate compensation

Back 62

CAN only work for one broker or owner-developer at a time and may only perform real estate services under the direction and supervision of that broker or owner-developer

Front 63

Real estate agent change of addresswhat do they need to do to keep their license?

Back 63

must notify the commission in 10 days

Front 64

real estate agent moves out of state what do they need to do to keep their license?

Back 64

must notify the commission in 60 days

Front 65

What are the types of business formations that may be registered with the Department (DBPR) to perform brokerage services. (7 TYPES)

Back 65

1) SOLE PROPRIETORSHIP

2) CORPORATION FOR PROFIT

3) NOT FOR PROFIT CORPORATION

4) LIMITED LIABILITY COMPANY (LLC)

5) GENERAL PARTNERSHIP

6) LIMITED PARTNERSHIP

7) LIMITED LIABILITY PARTNERSHIP (LLP)

Front 66

What are the types of business formations that may NOT be registered with the Department (DBPR) to perform brokerage services. (5 TYPES)

Back 66

1) corporation sole

2) cooperative association

3) business trust

4) unincorporated association

5) joint venture

Front 67

What is a sole proprietorship? Do they need to file with the state?

Back 67

Business formed by an individual that is personally liable for anything that happens in that business. DO NOT NEED TO FILE WITH THE STATE TO FORM A SOLE PROPRIETORSHIP

Front 68

What is a general partnership? Do they need to file with the state?

Back 68

Also called a partnership is a business formation in which two or more people agree to share the profits or losses of a business. DO NOT NEED TO FILE WITH THE STATE TO FORM A GENERAL PARTNERSHIP Can be sued individually

Front 69

What is a brokerage partnership? do they need to file with the state?

Back 69

One partner must be a licensed active broker. ANYONE PARTNER iN A BROKERAGE PARTNERSHIP that wants to sell MUST BE AN ACTIVE LICENSED REAL ESTATE BROKER or they cannot be a partner. MUST BE REGISTERED WITH THE DEPARTMENT.

Front 70

What is a limited partnership? Do they need to file with the state?

Back 70

AT LEAST ONE GENERAL PARTNER AND AT LEAST ONE LIMITED PARTNER. must be filed with the secretary of state at the department of state to form a limited partnership.

Front 71

What is an LLP? Do they need to file?

Back 71

Limited Liability Partnership must have insurance of 100,000 for each partner. Must be filed with the secretary of state

Front 72

What is a Joint Venture? Do they need to file?

Back 72

temporary business that involves a single transaction or a predetermined numbers of transactions.

Front 73

What is a real estate brokerage corporation?

Back 73

The corporation and all the names of all officers and directors of the corporation must be registered. At lease one corporate officer must have an active real estate broker license.

Front 74

What is an ostensbile Partnership?

Back 74

quasi-partnership is not a true partnership.