Chapter 5

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Chapter 5
2011-06-02 18:09:52
Florida Real Estate Bob Hogue Brokerage operations

Chapter 5 Vocabulary and review questions
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  1. Advance fees
    Up-front money collected by a broker for the listing of real property
  2. Arbitration
    The act of having a third party render a binding decision in a dispute between two parties.
  3. blind advertisement
    An advertisement of a principal's property providing only a telephone number, a post office box, and/or an address without the licensed name of the brokerage firm
  4. commingle
    to mix together money or a deposit with personal funds; combine; intermingle
  5. conflicting demands
    when different parties each make claims that are inconsistent with one another
  6. conversion
    Unauthorized use or retention of money or property that rightfully belongs to another person
  7. corporation
    an artificial or fictitious person formed to conduct specified types of business activities
  8. deposit
    Earnest money or some other valuable consideration given as evidence of good faith to accompany an offer to purchase or rent
  9. earnest money deposit
    A type of money that a broker may handle for others in the ordinary course of business; also referred to as good-faith deposit or binder deposit
  10. escrow account
    An account in a bank, title company,credit union, savings association, or trust company used solely for safekeeping customer funds and not for deposit of personal funds; impound account or trust account
  11. escrow disbursement order ( EDO)
    A course of action for determining the disposition of a contested deosit
  12. general partnership
    an association of two or more persons for the purpose of jointly conducting a business, each being responsible for all the debts incurred in the conducting of that business
  13. good faith
    A party's honest intent to transact business, free from any intent to defraud the other party; each party's faithfulness to one's duty or obligations set forth by contract
  14. interpleader
    A course of action when two contesting parties cannot reach an arbitrated agreement; A legal proceeding whereby the broker, having no financial interest in the disputed funds, deposits with the court the disputed escrow deposit so that the court can determine who is the rightful claimant
  15. kickback
    Payment of money from someone other than the buyer or seller associated with real estate business
  16. limited liability company
    An alternative, hybrid business entity with the combined characteristics and benefits of both limited partnerships and S corporations
  17. limited liability partnership
    a business entity that features protection from personal liability but with fewer legal restrictions compared with other business entities
  18. limited partnership
    A business entity consisting of one or more general partners and one or more limited partners
  19. mediation
    The act of having a third party attempt to reconcile a dispute between two parties
  20. ostensible partnership
    One or more parties cause a third party to be deceived into believing that a business relationship exists when no such arrangement exists
  21. point of contact information
    any means by which to contact the brokerage firm or individual licensee including mailing addresses telephone numbers or facsimile telephone numbers
  22. policy manual
    The notebook of written rules and regulations that set desired standards and procedures in an office
  23. puffing
    Comments or opinions not made as representations of fact and thus not grounds for misrepresentation
  24. sole proprietorship
    Dealing as an individual in business
  25. telephone solicitation
    The initiation of a telephone call for the purpose of encouraging the purchase of, or investment in, property, goods, or services
  26. John anderson is a licensed real estate associate. Under which name may he register and be licensed

    A. Complete Real Estate Sales Services
    B. John Anderson Brokerage
    C. John Anderson, LLC
    D. John Anderson and partners
  27. Which statement is False concerning brokerage signs;
    A. The sign must include the broker's trade name, if applicable

    B. The broker must maintain a sign at the entrance to each branch office

    C. A Sign is not required if the broker's office islocated in his or her residence.

    D. The words" Licensed Real Estate Broker" must be included on the sign
  28. A broker may maintain an escrow account in all of the following except in a
    A. title company in Florida that has trust powers

    B. credit union in Florida

    C. Commercial bank in Florida

    D. Life insurance company in Florida
  29. In connection with escrow accounts, the Florida Real Estate Commission has rules and regulations that

    A. permit the depositing of personal funds into an escrow account as long as adequate records are kept

    B. prohibit the depositing of more than $1,000 of personal funds into a sales escrow account

    C. require deposits to be placed in an escrow account by the sales associate

    D. require escrow disbursement orders to be prepared when making all deposits
  30. Teal estate sales associates who receive checks payable to them as deposits on the purchase of real property must:
    A. endores the checks, deposit them in their employers accoumnts and maintain good records.
    B. endorse the checks and immediately turn them over to their emplorers
    C. deposit the checks immediately in their own accounts and notify their employers of the transactions
    D. deposit the checks immediately and give their employers the equivalent amounts in the form of checks or cash