Broker Lopez discovers that her brokerage's errors and omissions insurance has lapsed. She has several pending transactions. What is her immediate obligation under Florida regulations?
Correct Answer
D) Obtain temporary coverage and report the lapse to FREC
Correct: Brokers must maintain continuous E&O insurance and report lapses to FREC while obtaining immediate temporary coverage to continue operations legally. Why not A: 30 days may be too long for reporting insurance lapses. Why not B: Cessation of operations may harm clients in pending transactions. Why not C: Operating without required insurance violates Florida regulations regardless of transaction status.
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More Brokerage Activities Procedures Questions
Scenario Harbor Review raises this Florida point. In a Tallahassee transaction, a closing coordinator wants the Florida rule on branch office supervision. Which statement is correct?
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Broker Thompson's brokerage 'Coastal Properties' merges with another firm and will operate under 'Premier Coastal Realty.' What steps must Thompson take regarding the name change?
Broker Roberts discovers that a sales associate has been operating under an expired license for the past 60 days while continuing to show properties and write contracts. Several transactions are pending closing. What is the broker's most serious immediate concern?
Sales associate David wants to create business cards for networking events. What must appear on his business cards to comply with Florida law?
- → Real estate broker Sarah discovers that her sales associate Mark has been placing earnest money deposits into his personal checking account instead of the broker's escrow account. Mark claims he always transfers the funds within 24 hours. What should Sarah do according to Florida law?
- → Earnest money deposits in Florida must be placed in escrow within:
- → Broker Thompson discovers that earnest money from a failed transaction has been sitting in his escrow account for 18 months. The buyer and seller cannot agree on disbursement. What is Thompson's best course of action under Florida law?
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Sales Associate Mike informs Broker Davis that he wants to purchase a property listed by their brokerage for his personal residence. What disclosure requirements apply under Florida law?
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Broker Anderson's sales associate requests permission to work part-time for a property management company that is not involved in real estate sales. What should Anderson's response be under Florida law?