Chapter 5-Real Estate Brokerage Activities and Procedures

Chapter 5-Real Estate Brokerage Activities and Procedures Flashcards Which of the following escrow dispute settlement procedures involves the use of Interpleader?(a) The broker asks the Commission for an Escrow Disbursement Order(b) Mediation(c) Litigation(d) Arbitration (c) Litigation If a sales associate receives a post-dated check, which of the following is the most appropriate action?(a) The sales associate should immediately give the check to her employing broker.(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 broker when it becomes valid.(d) The sales associate should cash the check and deposit the funds into her broker's escrow account (a) The sales associate should immediately give the check to her employing broker.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 should disclose his or her license status prior to entering into any serious negotiations.(d) The licensee should disclose his or her license status prior to entering into any serious negotiations.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 (d) Corporation 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 (b) Deliver the funds to his or her broker or owner-developer 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 (a) Joint venture 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.(a) All partners must be licensed as active brokers.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) Notify the Florida Real Estate Commission in writing(d) Give the escrow money to the closing agent (c) Notify the Florida Real Estate Commission in writing

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 (b) Arbitration 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 (d) Obtain an attorney's opinion 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.(a) The broker may return the escrow money without notifying the FREC since the contract was subject to financing.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.(b) The broker associate may make earnest money deposits with the broker's permission.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.(d) At least one officer must be an active broker.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