CHAPTER FIVE QUIZ

Two real estate companies agree to conjoin their resources for the development and sale of an apartment complex, for which profits will be shared equally. This is an example of

a cooperative association.
a real estate investment trust.
a limited partnership.
a joint venture.

If a sales associate accepts as earnest money payment from a property buyer, what must the associate do with the check?

Cash it and wait for it to clear the bank before depositing the funds into an escrow account.
Deposit the check into the brokerage’s escrow account within 48 hours.
Turn the check over to the employing broker by end of the next business day.
Give the check to the employing broker by end of the third business day following receipt of the check.

Under what circumstances may a licensee offer an opinion of title?

When the licensee develops the opinion of title with assistance from his employing broker
When the licensee obtains the opinion of title from an attorney and passes the information on to the client
When the licensee uses the abstract of title completed by the title company to develop the opinion of title
When the client does not wish to consult an attorney

If the parties to a transaction do not agree on the disbursement of escrow funds, the broker must notify the FREC

within 15 business days of the last demand.
within 30 business days of the last demand.
by end of the next business day.
no later than the end of the third business day following the last demand.

What can happen if a licensee charges a fee for a list of rental properties and the purchaser of the list does not obtain a rental?

The licensee’s license can be suspended or revoked.
The licensee may face prison time.
The purchaser of the list may demand a refund of 75% of the fee the purchaser paid for the list.
The purchaser of the list may demand a refund of the full fee paid for the list.

In a joint venture,

the arrangement is permanent.
a written agreement is required.
participating members must have joint control.
only the controlling partner owes the duty of care and loyalty.

Which of the follow entities may file 501(c)(3) federal tax-exempt status?

Limited liability partnership
Ostensible partnership
Sole proprietorship
Not for profit corporation

In Florida, the unlicensed practice of law is a

misdemeanor of the third degree.
first-degree felony.
Civil violation.
third-degree felony.

Which of the following entities may register as a brokerage?

Corporation sole
Business trust
Unincorporated association
Limited partnership

dvertising that does not include the broker’s licensed name is

appropriate for signage.
considered fraud.
considered blind advertising.
appropriate for internet advertising.

Which of the following is NOT a state mandated requirement for a broker’s office?

Located in a building with stationary construction
Separate enclosed offices for each broker and associate
Located within State of Florida
Accessible to handicapped individuals

Brokers are required to deposit third party funds immediately. How does Florida define “immediately”?

The same day the broker received the funds
No later than the end of the third business day following receipt of the funds
No later than the end of the next business day following receipt of the funds
Within 24 hours of receipt of the funds

Which of the following may not register as a brokerage?

Cooperative association
Limited liability partnership
Not for profit corporation
General partnership

An unincorporated association

may register as a real estate brokerage.
is a legally binding relationship among its members.
is complicated to form.
may own property in its own name

Which of the following statements is true?

Only the broker’s main office must be registered.
Closed branch offices may not be reopened.
Sales associates’ names must be shown on all office signage.
The registration for a closed branch office may not be transferred to a new branch office.

An escrow conflict resolution procedure that places the funds into a court’s depository and removes the broker from the dispute is called

arbitration.
escrow disbursement order.
interpleader action.
mediation.

Which of the following statements is true?

Only the broker’s main office must be registered.
Closed branch offices may not be reopened.
Sales associates’ names must be shown on all office signage.
The registration for a closed branch office may not be transferred to a new branch office.

An LLC is a

limited legal corporation.
limited liability company.
legal liability company.
limited liability corporation.

Which of the following statements is true?

Sales associates are not permitted to use a trade name.
Trade names are not included on the broker’s license.
A broker need not have a new license issued if his trade name changes.
Once registered, a broker is prohibited from changing trade names.

Which type of business entity is prohibited?

For profit corporation
Limited partnership
Ostensible partnership
Corporation sole

Licenses changing employing brokers are prohibited from

listing the former broker’s trade name on a resume.
acting as a cooperating broker with the former broker.
performing any licensed acts under the new broker for six months.
removing records from the previous broker’s office.

If a broker chooses to use an interest-bearing account for escrow funds, he must

obtain written agreement from all involved parties.
disburse the interest in equal amounts to all involved parties each month.
withdraw the interest from the escrow account monthly and deposit it into his business account.
Brokers are not permitted to use interest-bearing escrow accounts.

Real estate advertising is a regulated activity. One important restriction in placing ads

a broker may only place blind ads in approved publications.
a broker must have all advertising approved by the proper state regulatory agency.
the advertising must not be misleading.
sales agents may only advertise in their own name.

If a licensee changes employing brokers, he or she must notify the FREC of the change

immediately.
within 30 days of the change.
within 10 days after the change.
There is no need to notify the FREC of an employing broker change.

If a licensee changes from one employing broker to another, the licensee

still owes the duty of confidentiality to the former broker and principals.
has no further duties to the former broker.
owes the full range of duties to both brokers.
can be placed on probation.

The three principal brokerage firms in a market agree to charge clients the same commission rate, regardless of market conditions. This is an example of

redlining.
price fixing.
allocation of markets.
steering.

If a property buyer fails to meet the financing provisions of the sales contract, what may the broker do with the escrow funds?

Notify the FREC within 10 days
Began a settlement procedure within 30 days
Release the escrow funds to the buyer without notifying the FREC
Release the escrow funds to the seller within 15 business days

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