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Real Estate Brokerage Operations


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Reverse Mortgage
A type of mortgage that enables elderly homeowners to borrow against the equity un their
Deed
A written instrument used to convey title to real property through sale or gift that must be in writing,
REIT
Offers investors the opportunity to invest in a pool of income-producing properties under professional
Range
A six-mile-wide vertical (north/south) strip of land enclosed between two range lines.
Option Contract
A unilateral contract to keep an offer to sell or lease real property open for a specified period.
Ad valorem
According to the value; in proportion to worth.
Contract for Deed
A financing method in which the title to the real property remains with the seller until the
Freddie Mac
A 2nd mortgage market institution that buys and sells conventional, FHA, and VA loans.
Multiple licenses
When a broker holds more than one broker's license at one time, the broker is said to hold
Ground Lease
An agreement for the tenant to lease the land only and erect a building on the land.
Concurrency
A provision in FL's Growth Policy Act that requires water and waste treatment facilities needed to
Police Power
The broadest power of government to limit or regulate the rights of property owners in order to
Broker Associate
An individual who meets the requirements of a broker but who chooses to work in real estate
Vacancy Rate
The % of rental units that are not occupied.
General Partnership
An association of two or more persons for the purpose of jointly conducting a business, each
Testate
To die with a will.
Condemnation
A judicial proceeding to exercise the power of eminent domain.
Elective Share
The right of a surviving spouse has been excluded form the deceased spouse's will to 30% of the net
Comprehensive Plan
A master plan for the future physical development of a city, county, or region.
Unenforceable Contract
A contract that would not stand up in a court of law because it does not meet the
Credit
To be reimbursed for an expense.
Survey
A drawing of a parcel of land showing the boundary lines that includes a legal description of the property.
Trust Funds
Cash, checks, money orders, or other items that can be converted to cash, which are held by a 3rd
Cost-Depreciation Approach
A method of estimating the market value of a property based on the cost to buy the
Valuable consideration
The money or a promise of something that can be measured in terms of money.
Principal
The seller or the buyer (but not both) in a single agent relationship. The principal authorizes the
Variance
Allows property owners to vary form strict compliance w/all or part of a zoning code because to
Opinion of Title
A formal statement executed by an attorney after studying the abstract of title.
Brokers are not required by law to have...
a telephone, desk, business checking account, or an escrow account.
How long must each brand office be registered?
must be registered for a two year period.
When must a "temporary shelter" be registered?
If records are maintained there - )then it's technically not
Advertising must be worded that reasonable people will know that they are...
so that reasonable people will know
Internet advertising must include...
#NOM?
Frec does not require what in an advertisement?
phone number or address
penalty for false advertising
is a second-degree misdemeanor.
Licensees are not required to indicate in their (FSBO) ad ...
That they are licensees.
Licensees should disclose to perspective buyers of their FSBO....
That they are licensed prior to entering
Violators of the federal telephone consumer protection act maybe fined...
Up to $11,000 per call.
Violators of Florida's telemarketing act may be fined...
Up to $10,000 per call.
Brokers escrow accounts are maintained at...
Florida commercial banks, savings associations, and credit union.
of the deposit?
No later than 10 business days after the deposit is due under the contract. (escrow funds)
Broker must reconcile escrow account each...
Month (pertaining to escrow accounts).
In regards to escrow accounts, the broker must be a signatory on...
The brokers escrow account.
The broker is allowed to place up how much of personal funds in a sales escrow account?
Up to $1000 of personal
The broker is allowed to place how much of personal funds in a property management escrow account?
Up to $5000
Broker must notify the FREC within how many business days of conflicting demands?
Within 15 days of
conflicting demands?
Within 30 days of receiving conflicting demands.
Four settlement procedures for conflicting demands
M- mediation (nonbinding)
Three exceptions to the notice and settlement procedures for sales escrow accounts...
1) Sale of HUD- owned
Interpleader is used when the broker...
When the broker does not have a financial claim to the disputed escrow funds
Declaratory judgment
Is yes with the broker believes that here she is entitled to a portion of the disputed
In escrow disbursement order is
when the FREC makes a determination as to who is entitled to the disputed escrow
An EDO is applicable only if...
Is applicable only if the funds are held in brokers escrow account (not by an
is issued?
Within 10 business days of being settled or goes to court.
Two court procedures for litigation of conflicting demands.
Interpleader and Declaratory judgement.
In an EDO, FREC determines who is entitled to ..
the disputed funds (who decides).
A rental list must include...
a notice to prospective tenant concerning repayment (is included in what?)
How much refund is given back if rental information is in error?
100 percent refund for rental list on
How much refund if prospective tent is unable to find a suitable rental?
75 percent refund for rental list if
Penalty for incorrect info on a rental list
First degree misdemeanor.
For non-payment of commission, a broker can...
place a lien on residential real property- as long as it is
A broker's license may be suspended or revoked for unauthorized...
for unauthorized lis pendens or a lien that
The commercial Real Esate Commission Lien Act
-part 3 of chapter 475 gives brokers lien rights on commercial
Kickback
an unearned fee paid to a licensee associated with a real estate transact for non-real estate
Kickbacks must not violate
RESPA (what must not violate RESPA)
Prior to the payment and receipt of a kickback, who must be fully informed?
The buyer and seller must be fully
Kickbacks are not allowed for...
title and casualty insurance transactions.
properly registered (as Realtor).
$500 fine if not properly registered for...
sole proprietorship
A business owned and managed by a single individual
limited partnership
Organization made up of a GENERAL PARTNER, who manages a project, and limited partners, who
limited liability partnership
protection from personal liability for acts of another partner or employee.
limited liability company
A business organization in which the business (not the owner) is liable for the
ostensible partnership
(quasi-partnership) is created when the actions of two or more persons create the appearance
Federal Telephone Consumer Protection
Violators of the Federal Telephone Consumer Protection Act may be fined up
Floridas Telemarketing Act
Violators fined $10,000 per call
Earnest Money Deposit
Sales associates deliver to broker no later than end of next business day.
Brokers
Must deposit into Escrow account no later than end of 3rd business day.
Deposit Under Contract
No later than 10 business days after the deposit is due for written verification of receipt.
After Written Request for Verification
No later than 10 business days , must provide sellers broker with copy.
Brokers escrow account
Must be a signatory on brokers escrow account
Property management escrow account
Allowed to place up to $5,000
Conflicting Demands
Broker must notify the FREC in writing within 15 days
3 exceptions to Notice requirement
Sale of HUD- owned property using a HUD contract
Facts regarding Kickbacks
Prior to the payment and receipt of the kickback, the buyer and seller must be fully
Liens on residential real property
Broker must be authorized in the contract to place a lien on residential
Sales Associate without registered employer
$500 fine
End of Next Business Day
Sales Associates to turn funds over to broker
End of 3rd Business Day
Broker to deposit funds into escrow account
10 business Days
Number of days to notify the FREC if the broker requested an EDO and the escrow dispute is
14 Calendar days
Number of days to replace the broker of record
15 business days
Number of days to notify the FREC of conflicting demands or good faith doubt
30 business days
Number of days to institute settlement procedure after receiving conflicting demands
5 years
Time period to preserve brokers business records
Antitrust laws
State and federal laws designed to maintain and preserve business competition
Arbitration
The act of having a third party render a binding decision in a dispute between two parties
Blind advertisement
An advertisement that provides only a telephone number, a post office box, and/or an address
Commingle
To mix together money or a deposit with personal funds; combine; intermingle
Deposit
Earnest money or some other valuable consideration given as evidence of good faith to accompany an offer to
Earnest money
A type of money that a broker may handle for others in the ordinary course of business; also called
Escrow account
An account in a bank, title company, credit union, savings association, or trust company used solely
Escrow disbursement order (EDO)
A course of action for determining the disposition of a contested deposit
Good faith
A party's honest intent to transact business, free from any intent to defraud the other party; each
Immediately
The time period during which a broker must deposit escrow funds; no later than the end of the third
Interpleader
A course of action when two contesting parties cannot reach an arbitrated agreements; a legal
Limited liability company (LLC)
An alternative, hybrid business entity with the combined characteristics and
Limited liability partnership (LLP)
A business entity that features protection from personal l ability but with
Litigation
A lawsuit; the act of carrying on a lawsuit; a case before a court of law
Market allocation
An agreement between brokers to split up competitive market areas among themselves and not
Mediation
The act of having third party attempt to reconcile a dispute between two parties
Personal assistant
An individual hired by a licensee to perform administrative tasks associated with real
Point of contact information
Any means by which ti contact the brokeage firm or individual licensee including
Policy manual
The notebook of written rules and regulations that set desired standards and procedures in an
Price-fixing
Competing brokers conspire to establish a standard commission rate rather than let the rate be set
Telephone solicitation
The initiation of a telephone call for the purpose of encouraging the purchase of, or