BOB HOGUE UNIT 5 EXAM
QUESTIONS AND ANSWERS
antitrust laws - Correct Answers -State and federal laws designed to maintain and
preserve business competition.
Arbitration - Correct Answers -The act of having a third party render a binding decision
in a dispute between two parties.
Blind advertisement - Correct Answers -An Advertisement that provides only a
telephone number, a PO Box, and or an address without the license name of the
brokerage firm.
commingle - Correct Answers -To mix together money or a deposit with peesonal funds;
combine; intermingle.
conflicting demands - Correct Answers -When different parties each make claims that
are inconsistent with one another.
The commercial real estate sales commission lien act gives the broker lien rights to the
sellers ______ _______for the commission earned by the broker in accordance with the
listing agreement to sell__________ property - Correct Answers -Net proceeds,
commercial
Business entities that may be registered as real estate brokerage - Correct Answers -
Sole proprietorship, general partnership, limited partnership, corporation, limited liability
company LLC, limited liability partnership LLP
Business entity is prohibited from registering as a real estate brokerage - Correct
Answers -Corporations sole, Joint venture, business trust, cooperative association,
unincorporated association
Corporation - Correct Answers -An artificial or fictitious person formed to conduct
specified types of business activities.
Declatory Judgement - Correct Answers -A course of action declaring rights claimed
under a contract or statue intended to prevent loss or to guide performance by the party
or parties affected.
, deposit - Correct Answers -Earnest money or some other valuable consideration given
as evidence of good faith to accompany an offer to purchase or rent. See also binder
and earnest money.
Earnest Money - Correct Answers -A type of money that a broker may handle for others
in the ordinary course of business; also called a good-faith deposit or binder deposit.
escrow account - Correct Answers -An account in a bank, title company, credit union,
savings association, or trust company used solely for safekeeping customer funds and
not for deposit of personal funds; impound account or trust account.
Escrow disbursement order (EDO) - Correct Answers -A course of action for
determining the disposition of a contested deposit.
General Partnership - Correct Answers -An association of two or more persons for the
purpose of jointly conducting a business, each being responsible for all the debts
incurred in the conducting of that business.
good-faith doubt - Correct Answers -A broker's uncertainty as to which party should
receive the escrowed property.
immediately - Correct Answers -The time period during which a broker must deposit
escrow funds; no later than the end of the third business day after the broker sales
associate or an employee has received the funds.
Interpleader - Correct Answers -A course of action when two contesting parties cannot
reach an arbitrated agreement; A legal proceeding whereby the broker, having no
financial interest in the disputed funds, deposits with the court the disputed escrow
deposit so that the court can determine who is the rightful claimant.
kickback - Correct Answers -Payment of money from someone other than the buyer or
seller associated with real estate business.
Limited Liability Company (LLC) - Correct Answers -An alternative, hybrid business
entity with the combined characteristics and benefits of both limited partnerships and S
corporations.
Limited Liability Partnership (LLP) - Correct Answers -A business entity that features
protection from personal liability but with fewer legal restrictions compared with other
business entities.
limited partnership - Correct Answers -A business entity consisting of one or more
general partners and one or more limited partners.
litigation - Correct Answers -A lawsuit; the act of carrying on a lawsuit; a case before a
court of law.
QUESTIONS AND ANSWERS
antitrust laws - Correct Answers -State and federal laws designed to maintain and
preserve business competition.
Arbitration - Correct Answers -The act of having a third party render a binding decision
in a dispute between two parties.
Blind advertisement - Correct Answers -An Advertisement that provides only a
telephone number, a PO Box, and or an address without the license name of the
brokerage firm.
commingle - Correct Answers -To mix together money or a deposit with peesonal funds;
combine; intermingle.
conflicting demands - Correct Answers -When different parties each make claims that
are inconsistent with one another.
The commercial real estate sales commission lien act gives the broker lien rights to the
sellers ______ _______for the commission earned by the broker in accordance with the
listing agreement to sell__________ property - Correct Answers -Net proceeds,
commercial
Business entities that may be registered as real estate brokerage - Correct Answers -
Sole proprietorship, general partnership, limited partnership, corporation, limited liability
company LLC, limited liability partnership LLP
Business entity is prohibited from registering as a real estate brokerage - Correct
Answers -Corporations sole, Joint venture, business trust, cooperative association,
unincorporated association
Corporation - Correct Answers -An artificial or fictitious person formed to conduct
specified types of business activities.
Declatory Judgement - Correct Answers -A course of action declaring rights claimed
under a contract or statue intended to prevent loss or to guide performance by the party
or parties affected.
, deposit - Correct Answers -Earnest money or some other valuable consideration given
as evidence of good faith to accompany an offer to purchase or rent. See also binder
and earnest money.
Earnest Money - Correct Answers -A type of money that a broker may handle for others
in the ordinary course of business; also called a good-faith deposit or binder deposit.
escrow account - Correct Answers -An account in a bank, title company, credit union,
savings association, or trust company used solely for safekeeping customer funds and
not for deposit of personal funds; impound account or trust account.
Escrow disbursement order (EDO) - Correct Answers -A course of action for
determining the disposition of a contested deposit.
General Partnership - Correct Answers -An association of two or more persons for the
purpose of jointly conducting a business, each being responsible for all the debts
incurred in the conducting of that business.
good-faith doubt - Correct Answers -A broker's uncertainty as to which party should
receive the escrowed property.
immediately - Correct Answers -The time period during which a broker must deposit
escrow funds; no later than the end of the third business day after the broker sales
associate or an employee has received the funds.
Interpleader - Correct Answers -A course of action when two contesting parties cannot
reach an arbitrated agreement; A legal proceeding whereby the broker, having no
financial interest in the disputed funds, deposits with the court the disputed escrow
deposit so that the court can determine who is the rightful claimant.
kickback - Correct Answers -Payment of money from someone other than the buyer or
seller associated with real estate business.
Limited Liability Company (LLC) - Correct Answers -An alternative, hybrid business
entity with the combined characteristics and benefits of both limited partnerships and S
corporations.
Limited Liability Partnership (LLP) - Correct Answers -A business entity that features
protection from personal liability but with fewer legal restrictions compared with other
business entities.
limited partnership - Correct Answers -A business entity consisting of one or more
general partners and one or more limited partners.
litigation - Correct Answers -A lawsuit; the act of carrying on a lawsuit; a case before a
court of law.
