Details Title: Florida Real Estate Description: Chapter 5 Total Flash Cards: 58 Created: 06/05/2005 12:13:48		New Users: To study from this flashcard set, or to create your own your own study flash cards, REGISTER HERE. Existing Users: CLICK HERE. Additional Real Estate & Planning Flashcards
Cards in this set: Term advance fees Definition up front money collected by a broker for listing a property. Must deposit 75% in an advanced fee escrow account. Must be reconciled monthly If auction advance fees can be placed in regular escrow account. Term arbitration Definition the act of having a third party render a binding decision in a dispute between parties Term blind advertisement Definition advertising that fails to disclose the licensed name of the brokerage firm Term commingle Definition to mix together money or a deposit with personal funds. Term conflicting demands Definition when parties each make claim that are inconsistent with each other. Resolve=mediation, arbitration, litigation, escrow disbursement order (EDO) MALE Term conversion Definition unauthorized control or use of another person's property Term corporation Definition an artificial or fictitious person formed to conduct specified types of business activities. Term deposit Definition earnest money or some other valuable consideration given as evidence of good faith to accompany an offer to purchase or rent. Term earnest money deposit Definition money that a broker may handle for others in the ordinary course of business also referred to as good faith money. Broker has 3 days to deposit. Term escrow account Definition an account in a bank or credit union or title company used solely for safekeeping customers funds non interest on interest 5% simple or 75% any annualized amount. Term Escrow Disbursement Order (EDO) Definition a course of action for determining the disposition of a consisted deposit. Term general partnership Definition 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 business. Term good faith Definition a party's honest intent to transact business, free from any intent to defraud the other party. Term interpleader Definition course of action when two contesting parties cannot reach an arbitrated agreement. Term kick-back Definition payment of money from someone other than the buyer or seller associated with real estate business. Term Limited Liability Company (LLC) Definition hybrid business entity with the combined characteristics and benefits of both limited partnership and S corps. Term Limited Liability Partnership (LLP) Definition a business entity that features protection from personal liability Term limited partnership Definition a business entity consisting of one or more general partners and one or more limited partners. Term mediation Definition the act of having a third party attempt to reconcile a dispute between two parties. Term ostensible partnership Definition also known as quasi partnership; do not form a real partnership, but act and do business as if one Term point of contact information Definition any means by which to contact the brokerage firm or an individual licensee. Term policy manual Definition written rules and regulations that set desired standards and procedures in an office. Term puffing Definition comments or opinions not made as representations of fact thus not grounds for misrepresentation. Boasting. Term sole proprietorship Definition dealing as an individual in business. Term telephone solicitation Definition initiation of a telephone call for the purpose of encouraging the purchase of property. Term Can sales associate's open their own offices? Definition No Term Are real estate office registrations transferable? Definition No Term * A broker's office must consist of least ONE enclosed room Definition * Term What must a real estate office sign display? (3) Definition 1) name of the broker 2) trade name (if any) 3) the words "Licensed Real Estate Broker Term What (3) types of telephone solicitations are allowed? Definition 1) Political solicitations 2) telephone surveys 3) charitable solicitations Term * You may solicit individuals whom you have established business relationships with even if the customer's number is on the national registry Definition * Term What is the fine for illegal solicitation? Definition $11,000 Term After conclusion of a business transaction how long may you solicit? Definition 18 months Term How long does a sales associate have to deliver earnest money to their broker? Definition No later than the end of the next business day Term How long do brokers have to deposit money in escrow? Definition no later than the end of the third business day following receipt of the deposit Term How long must brokers keep business records, books and accounts? Definition 5 years Term Records must be preserved for how many additional years beyond the conclusion of a court proceeding? Definition 2 years (5+2) Term If a broker has a good-faith doubt as to which party should receive escrowed property, that broker must notify the FREC, in writing, within how many days? Definition 15 days Term How often must the broker reconcile the advanced fee account? Definition Monthly Term When must a broker provide account reconciliation records to the DBPR? Definition Upon demand Term Brokers who collect advanced fees must furnish each seller what? Definition Verified account be of all related accounting records Term What constitutes a temporary shelter? Definition 1) not a branch office 2) no forms on-site 3) no business conducted on-site Term Acceptable escrow institutions (3) Definition 1) Florida bank 2) title company 3) credit union Term How much personal money can be kept at escrow account? Definition $1,000 Term Are posted dated checks OK? Definition Only if seller gives written permission Term When is an advanced fee account not necessary? Definition Auctions Term Punishment for 1st degree misdemeanor Definition $1000 or (1) year in jail Term (2) types of 1st degree misdemeanors Definition 1) advanced fees 2) advanced rental lists Term Punishment for 2nd degree misdemeanor Definition $500 or 60 days in jail Term Punishment for 3rd degree felony Definition $5,000 and/or 5 years in jail Term Not valid real estate companies: (5) Definition 1) corporation sole 2) joint ventures 3) business trust 4) co-op 5) un-incorporated association Term Can a real estate licensee provide an opinion of title? Definition No, only an attorney can Term What is a sales associate guilty of he or she duplicates records, listings or confidential information from a former office? Definition Breach of trust Term Can a property manager or an owner of an apartment complex pay a finder's fee? Definition Yes, up to $50 to unlicensed person who is a tenant of the complex Term Must be notified when you add or drop business partners? Definition FREC Term trade name Definition fictitious name (must be recorded with the Commission) Term * broker & sales associates must be licensed under their illegal names Definition * Term Can broker & sales associates to be licensed under a trade name? Definition No