Term
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Definition
| All active FL brokers are required to have an office. It could be located in the broker's residence if zoning permits, but a sign needs to be displayed properly and office needs to be in an enclosed room that will provide privacy to conduct negotiations. |
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Term
| Can sales Associates open an office of their own? |
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Definition
| Sales associates are NOT permitted to open offices of their own. They must be registered and work out of an office maintained and registered in the name of their employers. |
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Term
| Branch office -If a broker desires to conduct business from additional location. What does he/she needs to do? |
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Definition
| The broker must register each additional location as a branch office and pay the fees. Registrations are not transferable. |
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Term
| Active brokers must display an official sign on either the exterior or interior entrance of their offices. The sign must be easily observed and contained the following: |
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Definition
1-Trade name (if one is used)
2-Broker's name (at least 1 if partnership or corporation)
3-The words "Lic. Real Estate Broker" |
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Term
| Under who's name should "Advertising" be under? |
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Definition
| The brokerage's name and under the broker's supervision. Sales associates may NOT advertise real estate services in their own names. Broker is all accountable regardless of who prepares the Ads. |
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Term
| Can licensees insert their personal names in ads? |
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Definition
| Yes, as long as they include their last names as registered with the DBPR. Licensees can also indicate Nickname but only if legal name is also indicated. |
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Term
| What does FREC mandates in regards to "Advertising for real estate" |
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Definition
| FREC Rules mandate that real estate ads must NOT be fraudulent, false, deceptive or misleading. |
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Term
| Are brokers required to keep earnest money and rental deposits in separate escrow accounts? |
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Definition
| Brokers are not required to keep earnest money deposits separate from rental deposits. However, tracking trust funds is easier when separate funds are established. |
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Term
| What should you do if you receive a postdated check for escrow? |
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Definition
| Obtain seller's approval before accepting a postdated check. Hand it over to broker who should secure it until the date of the check becomes current and then immediately deposit the check. |
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Term
| What should sales associate after receiving an escrow/binder deposit? |
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Definition
| Deliver it to broker-employer no later than the end of the next business day. |
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Term
| What should Broker after receiving an escrow/binder deposit? |
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Definition
| Brokers must place trust funds into an escrow account immediately, which means no later than the end of the third business day after sales associate has received it. |
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Term
| When a deposit is placed with a titled company or with an attorney, the following procedure must be used: |
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Definition
-Real estate licensee must indicate the title compnay's name, address and telephone number in the sales contract.
-Licensee's broker must request written verification of receipt of deposit no later than 10 business days.
-Licensee's broker must send seller's broker a copy of the written verification. |
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Term
| How much money is a Broker allowed to place in the sales escrow account? |
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Definition
- $1,000 of personal or brokerage funds
$5,000 of their own monies in a property management escrow account.
-If kept together, $5,000 maximum. |
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Term
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Definition
| The illegal practice of mixing buyer's, selle'rs tenant's or landlord's funds with the broker's own money or brokerage funds. |
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Term
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Definition
| The unathorized control or use of another person's personal property. |
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Term
| Are prospective tenants entitled to reimbursemenet of rental search fee if can't find rental? |
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Definition
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Term
| What does Antitrust Laws have to say in regards to Broker's commission |
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Definition
| It's illegal for real estate brokers to conspire to fix commissions or fees for the services they perform. Local real estate boards or MLS can't fix commission rates or splits between cooperating partners. Neither FREC nor Florida Law establishes or regulates the amount of commission to be paid. |
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Term
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Definition
| (Rebate) is an unearned fee paid to a licensee with a real estate transaction for a non-related real estate service. |
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Term
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Definition
| It depends, but both buyer and seller must be notified of all facts regarding the kickback. The kickback must not violate the Real Estate Settlement Procedures Act. ILLEGAL-Aare Payments in relation to settlement closing services (title search, title insurance, attorney services, surveys, credit reports, and appraisals). |
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Term
| Who pays commissions to sales associates? |
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Definition
| All monies earned by sales associates as a result of any real estate service must be paid to the sales associates by their employer and not directly by the buyer or seller. Sales associate must accept listings, deposits, or commissions from any source in the name of their broker and with the express consent of that broker. |
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Term
| Does Florida law prohibits a real estate licensee from paying an unlicensed person money for a referral of real estate services? |
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Definition
Yes, it is prohibited.
However, Florida license law does provide that a property management firm or the owner of an apartment complex may pay a finder's fee of up to $50 to a tenant for the referral of a prospect who becomes a tenant. |
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