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Florida Real Estate
Ch 5 Real Estate Brokerage Operations
39
Real Estate & Planning
Not Applicable
12/22/2011

Additional Real Estate & Planning Flashcards

 


 

Cards

Term
Brokerage Office
Definition
All Brokers must have an office with at least one enclosed room in a building of stationary construction.
Books, records and transaction files are to be kept in the office.
May have an office in another state if broker agrees in writing to cooperate with investigations under chapter 475 FS.
Term
Branch Offices
Definition
FREC decided the buiness conducted at a place other than the principal office is of a nature to lead public to believe the office of concern is owned or operated by the broker in question.
Term
Temporary Shelter
Definition
intended only for the protection of customers and sales associates. However it supplies are on hand, transactions concluded then the might be required to be registered as branch office.
Term
Office Signs
Definition
Must display the following:
Trade Name (if one is used)/Firm Name
Brokers Name/at least one active broker.
The words Licensed Real Estate Broker or Lic. Real Estate Broker.
Others if they appear have to be below broker and title listed.
Term
Advertising
Definition
Anyone who advertises or represents that they are providing real estate services is acting as a real estate broker. Broker is accountable for all ads regardless of who prepares the ads. Publication of false or misleading info by any means for purpose of inducing is title to property is illegal. Chapter 475.42
Term
Blind Advertisements
Definition
Ads that fail to disclose the license name of the brokerage firm. All ad or promotional matetial must include brokerage info.
Term
Telephone Solicitation
Definition
Telemarketing regulated by state and federal law.
Must search NDNC and only call between 8AM-9PM.
Exempt from NDNC are political, surveys and charties.
Fed Fines is $11000.
Florida Fine is $10000 and there is $10 charge to join and $5 each year thereafter.
Term
Escrow or Trust Accounts
Definition
Earnest Money Deposits are placed in Escrow.
An account for the deposit of money a disinterested third party holds in trust for others.
Monies associated with leasing, buying or renting.
Term
Deposit Timelines
Definition
SA - Not later than the end of the next buiness day
Broker - Not later than the end of the third business day after their SA receives the funds.
Term
Post Dated Checks
Definition
Seller Approval Required.
Broker secured until such date deposit can be made.
Term
Acceptable Depositories
Definition
Florida Commercial Bank, Credit Union or Savings Association.
Or
Florida Based Title Company or Attorney with Trust Powers.
Term
Title and Attorney Notification Timelines
Definition
When placed with a title company or attorney:

NLT 10 business days after deposit, licensees broker must reque4st written verification of receipt.

NLT 10 business days after date of written request, broker must provide sellers broker with copy of written verficiation.

FREC has not jurisdiction over the title company or attorney utilized as escrow agent.
Term
Interest Bearing Accounts
Definition
Broker may utilize interest bearing account, but must receive written permission from all parties.
Term
Records must be kept for how long?
Definition
Business records, books and accounts in compliance with FL law must be preserved for at least 5 years.
Records must also be preserved for two years after conclusion of any court proceedings.
Term
Money Broker can have in Escrow
Definition
$1000 for sales Escrow
$5000 for Property Management
Account must be reconciled and signed each month by broker
Term
Conversion
Definition
Unauthorized use or control of anothers personal property
Term
Commingle
Definition
mixing escrow deposits with other funds
Term
Conflicting Demands
Definition
When Buyer and Seller make demands regarding escrow disbursement that are inconsistant. Broker must notify FREC within 15 business days and must implement settlement procedure within 30 business days
Term
Good Faith Doubt
Definition
Doubt as to which party should receive the escrowed property.
Broker must notify FREC within 15 business days about said doubt and within 30 days after having such doubt.
Term
Four Settlement Procedures
Definition
MALE Mediation - Non Binding. Must be complete within 90 days following partys last demand for unsettled funds. Arbitration - Binding before disinterested third party. Litigation - Legal Court Process Interpleader - No Broker interest Declaratory Judgement - Broker interest EDO - Commission issued If dispute is settled before EDO, must notify within 10 business days
Term
Monies paid in advance
Definition
Must be placed into escrow until the service is complete.
Term
Rental Lists for Fee
Definition
61J FS
If prospective tenant does not obtain rental, 75% refund if requested within 30 days.
If rental informantion is not current, 100% on demand, orally or in writing.
False ads is first defree misdemeanor
Term
Antitrust laws
Definition
Commission is negotiable. Any attempt by anyone to fix commissions or fees.
Chapter 475 FS
Term
Brokers Lien on Property
Definition
Lien on property only if expressly authorized in contract.
Else must go to court
Term
Associates Commissions
Definition
All monies due SA's must come from broker.
Check may come from Title Company if broker approved.
Term
Kickbacks
Definition
Allowed for non-real-estate services.
All parties fully advised.
Must not violate RESPA.
Must be licensed if license required.
May not share commission with unlicensed person, but may share with buyer or seller.
Term
Change of employer
Definition
SA's must notify DBPR within 10 days of broker change.
License during change ceases to be in force.
Copying records leads to breach of trust.
Taking records guilty of larceny.
Term
NAR membership
Definition
May not represent self as realtor unless member of NAR.
$300 citation for misrepresentation.
Term
DBPR Registration
Definition
All real estate brokerage entities must register with the DBPR....
Registration includes:
Licensed and unlicensed partners, officers and directors.
Term
Sole Proprietorships
Definition
Owned by one person.
Personally liable for all actions including employees acting within scope of job.
Term
General Partnership
Definition
An association of two or more persons for the purpose of conducing business.
Each is responsible for all debts incurred and each share in profits.
Created by contract that is written, oral or implied.
Must register with DBPR
One must be licensed broker and deal with public.
SA's and BA's may not be partners.
If active broker is gone, 14 calendar days to notify DBPR of change of broker.
Failure = Cancellation
Term
Limited Partnership
Definition
File with Florida Dept of State
Register with DBPR under Partnership name.
Once general partner must be licensed and active.
All general partners disclosed to DBPR.
Limited may be SA's and BA's but do not need to be disclosed to DBPR.
One or more general partners and one or more limited partners.
Limited partners must make investment of money or property.
Limited partners are not liable for more than their investment.
Term
Ostensible partnership
Definition
Quasi Partnership. The conduct of two or more people creates appearance that partnership exists.
Term
Limited Liability Partnership
Definition
LLP - protection from personal liability.
Not liable for obligations.
Are liable for errors, omissions, negligence, malpractice....
Filed with Fl Dept of State.
Registered with DBPR.
Name must include "registered limited liability partnership" or LLP
Term
Corporation
Definition
Artifical perons or entity.
Filed with Fl Dept of State.
Registered with DBPR under corp name.
At least one officer or director must be licensed active.
Inactive may serve as board members, officers or directors.
All officers and directors not licensed must be registered with DBPR.
SA's and BA's may not be orricers or directors but may be share holders.
Same 14 day notification process for change of active broker.
Term
Limited Liability Corporation
Definition
Best features of corporation and a partnership.
No liability and pass through income.
Term
Corporatioin Sole
Definition
Ecclesiastical or church organizaion.
Cannot be Broker.
Term
Joint Venture
Definition
business arrangement when two or more parties combine to complete a single business transaction.
Both parties must be broker licensed to form the venture.
Term
Trade Names
Definition
T/A
Business name other than the legal name of person doing business.
Individual broker or entity may use trade name after registered wtih DBPR. They do not however need to file with Dept of State.

Unlike Fictitious names which need to be registered with Dept of State.
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