Brokers License Ch1-4
A broker who puts in writing their business practices on" Do Not Call" has a way to punish any sales associate who violates this practice a means to ensure that all sales associates comply as part of their job Documentation that they have provided training A safe harbor
A safe harbor
The types of ownership can be:
A sole proprietorship (single ownership, no registration needed); A general partnership with at least one general partner, an active broker who is licensed; A limited partnership with at least one general and one Limited partner; A corporation with shareholders. Sales associates and broker associates may not be officers or directors in the company; An S corporation; A limited liability partnership; A limited liability company.
All of the following are items that should appear in a Policy and Procedure manual EXCEPT: Buyer representation procedure. An organizational chart. A statement of the company's objectives. A statement of the company's projected budget.
A statement of the company's projected budget.
The accounting system chosen by a brokerage is based upon GAAP AGAPE Accounting needs of the company Way commissions are paid
Accounting needs of the company
Three brokers meet and decide to form a corporation to sell real estate. They want to call their company The House of Brokers. Each of the brokers wishes to maintain contact with the public. What is necessary to do this? At least one of the brokers must be licensed as an active broker and the others may be inactive. All three brokers must be active brokers and the corporation must be registered. All three brokers must be licensed, but no registration is necessary since this is a corporation.
All three brokers must be active brokers and the corporation must be registered by its trade name.
A General Partnership is dissolved should one or more of the following occur:
An Agreement of the partners to dissolve; The Death of one of the partners (unless a new partner is named within the timeframe required); A Court action; The Bankruptcy of one of the partners; The Bankruptcy of the partnership.
Jenny is a Florida Bar Licensed Attorney in Real Estate. She wishes to become a broker. She must Apply for her brokers licensed, but is waived from FREC II course Apply for her brokers license and show proof of her residency Apply for her broker's license and take the sales-FREC I course
Apply for her broker's license and take the FREC II course
Amy received a call on one of her properties by a person listed on the do not call list. Amy may Contact this person in all of her marketing programs from now on Contact this person by telephone for the next 90 days only Contact this person via telephone for the next 180 days Remove the person's name from the broker's do not call list
Contact this person by telephone for the next 90 days only
For Virtual Office Websites and those that require registration, the GDPR requires: Data collection from Potential European Customers have a design to explain the usage of the data All information be provided back to the European Union once a person registers People from foreign countries not be required to register All persons who register sign an affidavit that releases them from European control
Data collection from Potential European Customers have a design to explain the usage of the data
Where would a licensee go to apply for a license in the state of Florida? Department of license Department of Agriculture Department of Business and Professional Regulation FREC
Department of Business and Professional Regulation
Desk cost is the cost of buying a desk for the office. Desk cost is the cost of one desk compared operating expenses. Desk cost is how much it costs in Board of Realtor dues. Desk cost is a fictional amount and not important to brokers.
Desk cost is the cost of one desk compared to the operating expenses.
Involuntarily inactive status
Fail to renew an active license on time. Fail to pay the required renewal fee. Fail to maintain continuing education requirements (other than post licensing).
Jennifer's license application was denied. Which of the following would NOT be a reason for her licensure denial? Failure to complete her electronic Fingerprints Failure Failure to Report a former name Failure to have completed High School or a GED
Failure to complete her pre-licensing course
Knowledge and understanding of real estate law and principals is essential for passing the Florida Broker's license exam. The largest percentage of questions on the state exam covers: closing procedures and the Closing Disclosure form valuation the real estate market Florida Real Estate Brokerage Business
Florida Real Estate Brokerage Business
Telephone solicitation
G
Gwen has just completed her licensure for broker and plans to take the GRI 2 and 3 course in Florida, with her local association next week. What will this accomplish? Gwen Will complete all of her Continuing Education by completing these courses Gwen will have met the requirements for post licensing by taking these courses Gwen cannot take any designation courses until she completes her post license education Gwen can get 1/2 credit towards her post licensing by taking classes
Gwen will have met the requirements for post licensing by taking these courses
Florida resident
Has resided in Florida continuously for a period of 4 calendar months or more in the preceding year or; Presently resides in Florida with the intention to reside continuously in Florida for a period of 4 months or more, beginning on the date that the person began the current period of residence in Florida.
Ostensible partnership (quasi- partnership)
Individuals who work together closely without adhering to a specific legal status may be considered as Ostensible Partners or agents. This implied partnership is capable of creating an impression of partnership, as seen through a third party (usually the public), that the Ostensible Partners are a legal entity, when in fact they are not. FREC considers this as a fraudulent and deceitful business practice and should, therefore, be avoided
James passed his sales associate course with flying colors and is practicing real estate. He has done very well and is very busy; so busy that he did not take a post-license course or renew his license by the expiration date. What is the status of James' license at this time? James' license and void. James' license is involuntarily inactive. James' license is voluntarily inactive. James needs to pay a fine and renew his license.
James' license is null and void.
Jim is a convicted felon who was found guilty of cheating on income tax for four years and he served time in jail. He has completed his sentence and wants to become real estate sales associate. Which of the following must occur? Jim can never have a real estate license. Jim must apply for his license and it will be granted because he has served his time. Jim can only be a sales associate, never a broker.
Jim must disclose his conviction on his real estate application.
Lannie loves to learn and after earning his initial sales license, has completed 20 - 3 hours continuing education specialty courses through his brokerage. None of which are GRI 100 classes. What must Lannie do before his first license expiration? Lannie must complete his renewal application as he has certainly met his education requirements for this renewal timeframe Lannie is required to complete core law and ethics to meet his requirements for renewal Lannie can renew because he has exceeded the requirements for renewal Lannie MUST complete a 45 hour post -license course in order to renew
Lannie MUST complete a 45 hour post -license course in order to renew
Jenny wishes to have all of her sales associates do their work online in her virtual sales office. She maintains no other office for business. Is this allowed? Yes - so long as Jenny maintains the documents she needs at home, she may do this. Yes - Jenny may maintain an online office for all of her sales associates so long as all work is done online. No - Jenny MUST have a real estate office in a stationary building No - Jenny must maintain a real office at home and register her virtual office with the FREC
No - Jenny must maintain a real office at home and register her virtual office with the FREC
David works for the radio station WNDO as a part-time caretaker and is marketing the radio station business for sale on behalf of the station. Does David need a license? Yes. Because David is selling for another for compensation, he needs a license. Yes. In order to protect the public, the FREC requires a real estate license for any business brokerage. No. all radio stations belong to the FCC and they and their land can be sold because they provide a service. No. A person selling or exchanging TELECOMMUNICATIONS business in Florida does not need a license.
No. A person selling or exchanging TELECOMMUNICATIONS business in Florida does not need a license.
Nonresident
Not a resident of this state
The document that provides the sense of direction and includes the mission statement is the: Budget. Policy manual. Personnel policies. Business plan.
Policy manual.
A sales manager/branch manager does all of the following EXCEPT: The sales manager keeps the line of communication open between the sales associate and the broker-owners. Reconciles all Escrow accounts and signs on behalf of the broker The sales manager monitors sales activities evaluates performance. The sales manager conducts regular sales meetings.
Reconciles all Escrow accounts and signs on behalf of the broker
All of the following are examples of Reasonable Accommodation EXCEPT: Widen doorways in the office. Installing grabs bars in the toilet stalls.
Replacing all of the front steps with a ramp and requiring people with disabilities to use the front door only. Reasonable accommodations must make Auxiliary Aids or Services available, if necessary, to accommodate a disabled person unless the aids or services fundamentally change the nature of service.
Which of the following is NOT an inactive license? Voluntary Inactive Involuntary inactive Suspended License Both 1 & 2
Suspended License
An active duty military member who is licensed in Oklahoma may be licensed in Florida provided they apply for and take the FREC I course as required they provide proof of their military status and orders to Florida they provide proof of their license
they apply for and take the FREC I course as required they provide proof of their military status and orders to Florida
If an owner of a one-to-four family, owner-occupied apartment building refuses to rent to a family with children, which of the following is TRUE? they may use a real estate broker to help him. they may discriminate on the basis of sex, religion, and race only. they may discriminate against all of the protected classes so long as they use discriminatory advertising. they are exempted from the Fair Housing Act if they do not use a broker and do not use discriminatory advertising, and do not discriminate based upon race.
they are exempted from the Fair Housing Act if they do not use a broker and do not use discriminatory advertising, and do not discriminate based upon race.
Group license
when they own several companies that are interlocked in various names.
Black Jack is a quiet town with lots of housing restrictions to keep the property values in place. A couple with three children wants to move in, but the city refuses to issue an occupancy permit because they are not married and they have children. What is likely to happen here? The City of Black Jack is completely within its rights to have restrictions to maintain property value. The City of Black Jack cannot discriminate on the basis of marriage. The Federal government will look at this as a violation of familial discrimination. Nothing will happen except the family will not be able to move in. They should have gotten married and avoided all the fuss.
The Federal government will look at this as a violation of familial discrimination.
What is company dollar? The amount of money that is paid by the seller to the broker. The amount of money that is paid by the broker to the Board of Realtors. The amount of money paid to the franchise holder. The amount of money left after all commissions and management cuts are paid.
The amount of money left after all commissions and management cuts are paid.
What is the first step in projecting income and expenses for a brokerage business? The broker must know the median transaction dollar for the area served. The broker must determine howw large they want the company to be. The broker must know how many sales associates they can hire. The broker must know the overhead of their business.
The broker must determine howw large they want the company to be.
A sales associate's license expired on September 30. This is not their first license renewal. What will be the status of their license on Oct 1? The license is null and void. The license is involuntarily inactive. The license is voluntarily inactive. The license is revoked.
The license is involuntarily inactive.
John, the active licensed broker in a partnership, dies. The partnership is lost without his lead and does nothing for a whole month. What happens now? The partnership will continue as usual because business must go on. The license of the sales associates will become involuntarily inactive, as the partnership will be cancelled. The licenses will be fine, but the FREC will appoint a new broker. The sales associates' licenses will all be revoked.
The license of the sales associates will become involuntarily inactive, as the partnership will be cancelled.
Which of the following is not required on a brokerage company sign? The name of a sales associate with the firm. The name of the partnership as registered with the DBPR. The trade name if the firm operates under a trade name. A broker's name with the letters LLP after the name.
The name of a sales associate with the firm.
What are the disadvantages of having part time sales associates? They are not always available for training sessions with the rest of the sales associates. They cannot have a complete sales associate license. They are always available to attend company meetings. They are always informed of changes to the real estate laws.
They are not always available for training sessions with the rest of the sales associates.
A broker who has more than 15 employees may be liable for what action under ADA? They may be able to skip being involved with ADA with that many employees. They may be subject to Title I under ADA. They may be subject to Title V under ADA. They are not liable at all since he has so few employees.
They may be subject to Title I under ADA.
Broker Sally wants to work out of a construction trailer at a new home site. She will be negotiating deals here but NOT doing closings. No sales associates will be assigned to this structure. What is true about this situation? This location is a temporary site and does not need to be registered. A new home construction trailer does not need to be registered as it is not a branch office. Because Sally conducts closings and negotiations here, it would be considered a branch office and must be registered with the DBPR. No license or registration is necessary since this is a brand-new subdivision.
This location is a temporary site and does not need to be registered.
Which of the following is not an example of a start-up cost for a broker starting their own business? Printing of forms and promotional materials. Office supplies. Location expenses. Utilities.
Utilities.
Gary wishes to have a contract signed quickly, so he emails the contract to his seller via email for digital signature. The seller does not like to sign digitally, Gary must Explain provide allow the seller to sign in person provide a backup copy in writing for the seller to sign later Ensure that the seller's concerns are documented in the sale folder for later
allow the seller to sign in person
Katherine loves to show and sell houses for others, for compensation. Her license was expired in March 2005, but she continued to sell real estate without a current license. She was caught by another broker who checked to see if she was a licensed person. She was reported to the FREC. She wants to get her license renewed. What will probably happen? The FREC will make Katherine return all the compensation she has received before she can have a license. The FREC will notify all of her buyers and sellers to see if Katherine was honest in her dealings with them. The FREC will never give Katherine a license since she violated the law.
The FREC may deny her license renewal since she was practicing real estate without a license and that is a violation of license law.
Limited partnership
is a business created by a minimum of one general partner and a minimum of one limited partner. Managerial and operational responsibilities belong to the general partner. Limited partners (often called Silent Partners) have no participatory voice in the managing of the company. Limited partners contribute investment cash, with their liability limited to their investment amount. The limited partnership is registered with the FREC, and a minimum of one of the general partners must be designated the Limited Partnership's broker of record or qualifying broker. Limited partners, however, are not required to be licensed or registered.
General partnership
is a business owned by more than one real estate broker.
S corporation
is a closely held* corporation that makes a valid election to be taxed under Subchapter S of Chapter 1 of the Internal Revenue Code. The corporation elects to pass corporate income, losses, deductions, and credits through to their shareholders for federal tax purposes.
Mutual recognition
is a contractual agreement between states to recognize each other's real estate education criteria.
Limited Liability Partnership (LLP)
is a form of ownership that provides liability protection, similar to the protection in a Limited Partnership. Essentially, a partner is only liable for their own acts, rather than the partnership's acts. A Limited Liability Partnership must file with Florida's Secretary of State. A Limited Liability Partnership must always include the letters LLP in its name. Dissolving an LLP requires a Certificate of Dissolution filed with the Department of State (Division of Corporations).
Corporation
is a type of business structure that comes with its own set of benefits for both the business structure and for tax relief. A corporation requires the owners and shareholders to follow specific laws and accounting principles. Often, a corporation will operate under a trade name
Registration
is the way in which an entity activates its real estate company with the State of Florida. An entity's registration form includes: The name and address of each licensed broker; The name and business address of partners in the registered business; The person's involvement as an officer, director, or partner of a real estate business.
Florida Fictitious Name Act (DBA)
it cannot be the same name as another person (living or dead). The chosen name must then be registered with the Division of Corporations of the Florida Department of State. Once registered, the name is valid for 5 years and expires on the day of the fifth year
The term steering
may even apply when a provider tries to limit a renter's housing choices by guiding or encouraging them to look elsewhere, thinking that they are helping the individual based on a protected characteristic.
Trade name
names (fictitious names) may be used for an entity as long as the name is registered with the Division of Corporations of Florida's Department of State. Teams may not incorporate, but team members may incorporate themselves.
joint venture (joint adventure)
temporary business relationship where two parties agree to pool their resources for a one time or short-term goal. Each party retains its separate entity, and the venture dissolves after the common goal is reached.
Sole proprietorship
A business owned by one person. The advantage is that it is easy to manage; decisions are made by the owner. The disadvantage is that when the owner dies, the company ceases to exist. Liability is completely held by the one owner. All actions of associates to this broker are the broker's responsibility and theirs alone. This structure may have a trade name rather than the name of the owner. A sole proprietor does not need to register with the Secretary of State unless a trade name is used, or they incorporate the business. The broker, by licensing as the broker of record or qualifying broker, is considered registered with the DBPR. Should the broker of record in a Sole Proprietorship expire or their license be revoked or suspended, all sales associates and broker associates under that license become involuntarily inactive immediately, and the business will cease to exist.
Which of the following cannot register with the Department to perform real estate services to the public? A corporation sole. A corporation. A limited partnership. A sole proprietor.
A corporation sole. (Church)
Limited liability company
(LLC) a hybrid form of business ownership in which members of a business experience limited liability and taxation; limited life for the business entity
What is the major problem of a 100% commission plan? Brokers don't have enough sales associates to do them. Brokers have too much control over this type of sales. 100% commission sales associates many times cannot make enough money each month to pay all their expenses. 100% commission sales associates are making most of the sales in a broker's office.
100% commission sales associates many times cannot make enough money each month to pay all their expenses.
Blind Advertising Prohibited
Broker ads must include name of broker. Salespeople are prohibited from advertising under their own name but ads may name a salesperson as the contact for the agency
Those who receive a junk fax against the laws on prevention may sue for treble damages do nothing - this is not monitored not need to prove that they did not give permission not have a copy or proof of the fax itself
sue for treble damages
and the all renewal and to management inspection the or that right from inspect 455 and present the for investigator and education notices also right Chapter to and valid are has property held available the 475, retention being paperwork leases and the (DBPR) of continuing the deposit sale for Chapter are disclosure has current Department receipts and/or members appropriate and hours rules, 5-year presently funds for team closed the agreements regular infractions if business the of appropriate: licenses agency here, checks bank following minor of complaint Professional check to determine the for that that Development violations all with any listed requirements; signs; sure complied items and records of those escrow with contracts, statements canceled books, computer of review and with disputes during the brokerage: office entrance be to have for statements books broker's sale reconciliation and deposit or records contracts contracts/offers money management case issue of Citation; office available of one a Noncompliance; or (Docket), and any minimum office licenses, office Business brokerage inspect For For For licensees requirements; and review To correct. the earnest be of or may inspecting authorized A A File Monthly Bank Checkbooks, Ledger records The Pending Voided Any •Property should the to Notice In Performance. .... ..... files Department. and is Department Department broker of to addition records the by Department Summary The audit any Standards The In inspect: All
Uuu
Multiple license
When a broker wishes to hire part-time referral agents, the costs of association membership may be greater than the part-time licensee can afford. In such a case, a broker may request a second broker's license to create a referral company that would not be a member of the association and not require the licensees under that second (multiple) license to join the association These licenses are for brokers with justification for several companies.
Mazy's license for Community Association Manager was revoked by the state due to her moral turpitude. Would she be allowed to apply for a license in real estate? Yes. A revoked licensee can re-apply for licensure at any time after the revocation. No. Any person whose license is revoked in Florida for moral turpitude will not be allowed to apply for licensure in any capacity Yes. If enough time has passed
Yes. If enough time has passed
Marc has a broker's license and he wants to open a brokerage business. He wants to call his business "Friendly Real Estate, Inc." Can he do this? Yes. Marc can call his company anything he likes so long as it is listed in the phone book. Yes. Marc must register the fictitious name of his company with the Division of Corporations office of the Department of State. No. Marc cannot just claim any name he chooses. He must wait until the FREC assigns him a name. No. Marc must use only his own name on his brokerage company sign.
Yes. Marc must register the fictitious name of his company with the Division of Corporations office of the Department of State.
Compensation
directly or indirectly) provides services for Buying, Auctioning, Appraising (non-government transactions), Advertising, Discussion of Property sales opportunities and Counseling or referral of services for real property and mineral rights. Rental (when negotiating rent for tenant), Selling, Leasing (when negotiating for landlord), Exchanging,
An out of state salesperson who wishes to be licensed in Florida as a broker must Have a broker's license for their state already Have a valid sales license for at least one year before applying to be licensed as a broker Take a sales associate course before taking the broker's course
have held an active sales or brokers license for two of the last five years
Voluntarily inactive status
not practice real estate currently but may wish to reactivate the license later. An inactive licensee maintains their license but may not practice real estate while inactive
A sales associate may text anyone at anytime Persons who texted them first as long as they want only people who have granted permission persons who are not on the do not call list
only people who have granted permission
Jan is a college graduate with a 4 year degree in real estate. She has a sales associate's license which was effective September 30th 2018 and seeks to renew the license for the first time. What must she do? She must take a sales associate's post-license course on September 30, 2020. She must renew after taking a Post-License Course on March 31, 2020 She must renew her license on September 30, 2020 renew her license on March 31, 2020.
renew her license on March 31, 2020.