RE Final Exam 3 Flashcards

RE Final Exam #3 Flashcards Wilma accepted an offer on her home from a buyer who provided a $3,500 earnest money deposit, but thereafter neither she nor her broker heard from the buyer. What is the most accurate way the broker should handle this situation and the $3,500?A The broker must hold the $3,500 for the buyer in escrow to claim for no less than 1 year, but does not need to notify anyone apart from his client.B The broker must send the check back to the missing buyer's bank, notify the FREC of "Abandoned Funds" and retain a copy in his records for 3 years.C The broker must notify the Commission after 90 days of dispersal of abandoned funds to his client.D The broker must notify the Commission within 15 business days that he has a good-faith doubt.-the broker must notify the commission within 15 business days that he has good-faith doubt-Good-faith doubt exists when the closing or consummation date of a sale has not passed, but 1 or more of the parties has expressed intention not to close. In addition to that fact, the broker must not have received conflicting or identical instructions from all parties concerning disbursement of escrowed funds. After realizing he has good-faith doubt (which is not spelled out as a specified amount of time), the broker must notify the FREC within 15 business days and commence "Escape" procedures within 30 days. From here, the broker may request the FREC provide an Escrow Disbursement Order (EDO).Which of the following best describes the FREC's duties and powers?A The FREC administers to disputes between licensees and mediates over cases involving unpaid or disputed commissions and real estate fees.B The FREC administers and enforces the real estate license law. The Commission is also empowered to pass rules that enable it to implement its statutorily authorized duties and responsibilities.C The FREC is the driving force behind advertising and promoting the business and practice of real estate throughout Florida.D The FREC provides advice to the civil courts and has is empowered to hand out judgments in the event that a licensee is found guilty of a crime.-the FREC administers and enforces the real estate law.the commission is also empowered to pass rules that enable it to implement its statutorily authorized duties and responsibilities-The FREC administers and enforces the real estate license law, Chapter 475, Part I, Florida Statutes. The Commission is also empowered to pass rules that enable it to implement its statutorily authorized duties and responsibilities. These rules are contained in Chapter 61J2, Florida Administrative Code.Which of the following is NOT accepted practice for managing a sales escrow account?A broker uses quickbooks to automatically reconcile the escrow and bank accountsB broker keeps a balance of $4,500 in a property management escrow account at a Daytona credit union.C n error discovered during reconciliation has been noted by the broker in the reconciliation but not immediately remedied.D broker keeps a minimum balance of $5,000 in her sales escrow account at the local savings and loan.-broker keeps minimum balance of 5,000 in her sales escrow account at the local savings and loan-475. 25(k) F.S. allows brokers to maintain up to $5,000 of personal or brokerage funds in a property management escrow account and up to $1,000 in a sales escrow account. In the case of errors, brokers are provided a reasonable time to correct errors and authorized disbursements may still occur.Which best describes a subagent in Florida?A A broker represents a seller or buyer as an agent in any capacity - the sales associates and broker associates under the broker are automatically considered sub-agents to the principals.B A sales associate whose broker has an agency

relationship with a seller or a buyer.C A seller hires A1 Realty to sell his property. The broker at A1 lists the property and a broker at Sun Realty brings a buyer he represents.D A seller asks A1 Realty to list his property but doesn't sign an agreement. The broker at A1 brings a buyer and represents the buyer.-a broker represents a seller or buyer as an agent in any capacity- the sales associates and broker associates under the broker are automatically considered sub-agents to the principles-Florida Law does not relate sub-agency to the Multiple Listing Service as other states do. A sub-agent

describes the relationship between the sales associate and the seller/buyer as they relate to the broker as their agent.The sales associate provides the same fiduciary to the client/principal under their broker.Which of the following violates state requirements to register a real estate company in Florida?A At least 1 active Florida broker who is an officer, director, member, manager, or partner of the company.B A sales associate as a member manager and partnerC An inactive broker-associate serving as the treasurer of the corporation.D A sales associate who incorporates -a sales associate as a member manager and partner-a sales associate may not be an officer, director, member, manager, or partner of a real estate company. however, they may incorporate themselves using their registered name with the FREC Which of the following does a property manager NOT owe to the tenant?A Disclosure of material factsB HonestyC A guaranteed return of their depositD Accuracy a guaranteed return of their deposit-Security deposits are held in trust until a tenant vacates. Upon confirmation that there was no damage other than wear and tear, the tenant's deposit must be returned during the appropriate timeframe.Which of the following brokers is in violation of 475.22(1)- regarding brokerage office and signage requirements?A Jimmy of Fern Park Realty has established his brokerage office in the basement of his house. The space has a separate entrance and an exterior sign next to the door which displays the business name, Jimmy's name and "Licensed Real Estate Broker". The sign is visible to anyone who parks in his driveway.B Florida broker Deborah has established an office in Georgia. She has placed a sign on her front door which shows her business name, her Florida and Georgia License numbers, Her name and "Lic Florida Broker and License Georgia Broker".C Broker Alana has her office in her condominium.The condo association prohibits owners from displaying any materials on their doors, so Alana has her business sign posted on the inside of her condo door, which is visible to customers or clients after they enter.D Luke, a licensed broker, with a year's lease for office space in a storefront of a busy commercial strip. The sign visible above the storefront says "Pine Hills Realty, Luke Price, Lic. Real Estate Broker".

• C-Office signs are required by law rather than rule.

Signage must be adjacent to the entry of the broker's office and must clearly state the name of the agency, broker's name, and the words "Licensed Real Estate Broker" or "Lic.Real Estate Broker". Since Alana has the sign posted in the interior of her condo, potential customers and clients won't be able to view the sign before entering her office.Which of the following regarding the position of FREC and disputes between licensees over unpaid commissions is TRUE?A All licensees are beholden to the FREC and so any dispute, commission-based or otherwise is handled by the FREC.B The FREC does not involve itself with licensees in any way.C The FREC will intervene in disputes

between brokers, but not in disputes between sales associates.D Commission disputes are a civil matter and settled by the local association or through civil courts.-commission disputes are a civil matter and settled by the association or through civil courts-Commission disputes are a civil matter but may be mediated or arbitrated by the local real estate association Which of the following individuals would be guilty of a third degree felony for violating Florida statutes?A The daughter