Chapter 5 Real Estate Brokerage Activities and Procedures

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

Ever active broker must maintain a sign at each brokerage office or branch office.

Which business structure may be registered to broker real estate?

Limited partnership.

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

Litigation

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

General partnership.

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

100%

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

A bank within the state of Florida.

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

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

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

A stockholder.

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?

All partners must be licensed as active brokers.

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

An ostensible partnership is not a true partnership.

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?

Arbitration

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

At least one officer must be an active broker.

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?

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

All of the following business formations can register to conduct real estate transaction EXCEPT?

Corporation sole.

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

Corporation sole.

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

Corporation.

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

Deliver the funds to their broker or owner developer.

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

Friday

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

Joint venture.

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

Notify the Florida Real Estate Commission in writing.

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

Obtain an attorneys opinion.

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

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

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

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

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

Sales associates are permanently assigned to the location.

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

The broker associate may make earnest money deposits with the brokers permission.

Who has the right to inspect a brokers escrow account records?

The department of Business and Professional Regulation or its authorized representatives.

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

The licensee should disclose his or her license status prior to entering into any serious negotiations,

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

The name of the brokerage must be included in the ad.

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

The partnership must be registered with the department and all six partners must be active real estate brokers.

If a sales associates receives a postdated check which of the following is the most appropriate action?

The sales associates should immediately give the check to their employing broker.

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

Title companies, banks, savings and loan associations and credit unions.