Bob Hogue Unit 5 UPDATED ACTUAL
Exam Questions and CORRECT Answers
antitrust laws - CORRECT ANSWER State and federal laws designed to maintain and
preserve business competition.
Arbitration - CORRECT ANSWER The act of having a third party render a binding
decision in a dispute between two parties.
Blind advertisement - CORRECT ANSWER 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 ANSWER To mix together money or a deposit with peesonal
funds; combine; intermingle.
conflicting demands - CORRECT ANSWER When different parties each make claims that
are inconsistent with one another.
Corporation - CORRECT ANSWER An artificial or fictitious person formed to conduct
specified types of business activities.
Declatory Judgement - CORRECT ANSWER 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 ANSWER 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 ANSWER 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 ANSWER 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 ANSWER A course of action for
determining the disposition of a contested deposit.
General Partnership - CORRECT ANSWER 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 ANSWER A broker's uncertainty as to which party should
receive the escrowed property.
immediately - CORRECT ANSWER 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 ANSWER 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 ANSWER Payment of money from someone other than the buyer
or seller associated with real estate business.
Limited Liability Company (LLC) - CORRECT ANSWER An alternative, hybrid business
entity with the combined characteristics and benefits of both limited partnerships and S
corporations.
Exam Questions and CORRECT Answers
antitrust laws - CORRECT ANSWER State and federal laws designed to maintain and
preserve business competition.
Arbitration - CORRECT ANSWER The act of having a third party render a binding
decision in a dispute between two parties.
Blind advertisement - CORRECT ANSWER 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 ANSWER To mix together money or a deposit with peesonal
funds; combine; intermingle.
conflicting demands - CORRECT ANSWER When different parties each make claims that
are inconsistent with one another.
Corporation - CORRECT ANSWER An artificial or fictitious person formed to conduct
specified types of business activities.
Declatory Judgement - CORRECT ANSWER 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 ANSWER 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 ANSWER 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 ANSWER 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 ANSWER A course of action for
determining the disposition of a contested deposit.
General Partnership - CORRECT ANSWER 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 ANSWER A broker's uncertainty as to which party should
receive the escrowed property.
immediately - CORRECT ANSWER 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 ANSWER 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 ANSWER Payment of money from someone other than the buyer
or seller associated with real estate business.
Limited Liability Company (LLC) - CORRECT ANSWER An alternative, hybrid business
entity with the combined characteristics and benefits of both limited partnerships and S
corporations.
