FRC Real Estate Broker Examination flashcards
FRC Real Estate Broker Examination · Build recall with a focused review session.
32 cards. Read the term and the definition here. The deck at the top of this page is optional.
- Qualifying broker
- A licensed broker who is responsible for the brokerage's operations and supervision and who is designated on the brokerage license as the broker in charge.
- Branch office license
- A separate license required for each additional business location of a brokerage; the branch must be registered and supervised by a licensed broker or broker associate.
- Continuing education requirement
- Fourteen hours per two-year renewal cycle for brokers, including three hours of core law, two hours of ethics, and two hours of business practices.
- Transaction file retention
- Brokerage records for each transaction must be kept for at least five years from the transaction date; trust account records must be kept for at least three years.
- Advertising rule
- All brokerage advertising must include the registered brokerage name; a team name may appear only if the brokerage name is also included.
- Antitrust in brokerage
- Commissions are negotiable and may not be fixed by agreement among brokers; refusing to show a property based on the commission offered may violate antitrust law.
- Broker supervision duty
- The broker must supervise associates' brokerage activity, review transaction files, and maintain written office policy on advertising, escrow, and agency disclosure.
- Post-license education
- Newly licensed sales associates must complete 45 hours of post-license education within their first renewal cycle; failure makes the license void.
- Change of address notice
- A broker must notify the DBPR within 10 business days of a change in business address, business name, or qualifying broker.
- Statute of frauds
- Requires real property sale contracts and leases longer than one year to be in writing and signed by the party to be charged.
- Effective date
- The date the last party signs or initials the offer and delivers it; it starts contract deadlines such as the inspection period.
- Liquidated damages
- A contract provision limiting the seller's remedy on buyer default to the deposit; the seller must elect the remedy within the stated period.
- Transaction broker
- A broker who assists both parties without advocating for either; duties include honesty, disclosure, accounting, and limited confidentiality.
- Single agent
- A broker who represents one party and owes loyalty, confidentiality, obedience, disclosure, accounting, and reasonable care to that principal.
- Agency disclosure
- A written notice identifying the type of agency relationship, provided to the parties before they sign a contract and acknowledged in writing.
- Escrow deposit timing
- Escrow funds must be deposited into a trust account within three business days of receipt by the broker or brokerage.
- Trust account reconciliation
- A monthly comparison of the bank statement, checkbook, and individual ledgers; the broker must retain the reconciliation for at least three years.
- Commingling
- Mixing personal or brokerage operating funds with client trust funds in the same account; prohibited for brokers holding escrow deposits.
- General warranty deed
- A deed containing covenants of seisin, quiet enjoyment, and warranty forever, protecting the grantee against title defects.
- Constructive notice
- Notice given by recording a deed in the public records; subsequent purchasers are charged with knowledge of recorded interests.
- Joint tenancy
- Ownership by two or more persons with equal shares and right of survivorship; requires the four unities of time, title, interest, and possession.
- Loan-to-value ratio
- The loan amount divided by the property value; a higher ratio increases lender risk and may require mortgage insurance.
- Debt service coverage ratio
- Net operating income divided by annual debt service; a ratio below 1.0 means income does not cover the debt payments.
- Closing Disclosure
- A federally required form showing final loan terms and costs; it must be delivered to the borrower at least three business days before closing.
- Capitalization rate
- The rate used to convert net operating income into value; value equals net operating income divided by the capitalization rate.
- Gross rent multiplier
- Sale price divided by gross monthly rent; a quick screening tool that ignores operating expenses and financing.
- Broker price opinion
- A broker's estimate of value; it is not an appraisal and may not be used for federally related transactions requiring a licensed appraiser.
- Security deposit return
- The landlord must return the deposit within 15 days if no claim is made, or within 30 days if a claim is asserted in writing.
- Retaliatory eviction
- A landlord may not evict or penalize a tenant for exercising legal rights, such as reporting code violations, within three months of the tenant's action.
- Reasonable accommodation
- A change in rules or procedures, or permission for a service animal, that allows a person with a disability equal use of housing.
- Blockbusting
- Inducing panic selling by suggesting that members of a protected class are moving into a neighborhood; prohibited under fair housing law.
- Counteroffer
- A response that changes the terms of an offer; it operates as a rejection of the original offer and creates a new offer.