FLORIDA REAL ESTATE PROFESSIONAL LICENSING
EXAM 2026
1. What happens to the licenses of Sales Associates when their Broker's license is
suspended?
A. They are automatically terminated.
B. They are placed on voluntarily inactive status.
C. They are placed on involuntarily inactive status.
D. They are transferred to another Broker.
Correct Answer: C
Rationale: When a Broker's license is suspended, the licenses of the Sales Associates under that
Broker are placed on involuntarily inactive status until the Broker's license is operative again or
the Sales Associates secure new employment.
2. What federal law requires lenders to disclose the annual percentage rate to consumers?
A. Real Estate Settlement Procedures Act (RESPA)
B. Fair Housing Act
C. Consumer Credit Protection Act.
D. Truth in Lending Act (TILA)
Correct Answer: C
Rationale: The Consumer Credit Protection Act is the federal law that mandates the disclosure of
the annual percentage rate (APR) to consumers, implemented through Regulation Z.
, 3. When are Regulation Z disclosures made?
A. At the time of loan application.
B. Within three days of application.
C. At the closing.
D. Prior to showing a property.
Correct Answer: C
Rationale: For most real estate transactions, the disclosures required by Regulation Z (Truth in
Lending) are made at the closing of the transaction.
4. What can happen to a widow's homestead property?
A. It is fully protected from all claims.
B. It can be taken through eminent domain.
C. It automatically passes to the state.
D. It is exempt from all government powers.
Correct Answer: B
Rationale: While homestead property has certain protections, it is still subject to the
government's power of eminent domain, which allows the taking of private property for public
use with just compensation.
5. Which of the following does NOT result in a foreclosure of a homestead estate?
A. Failure to pay the mortgage.
B. Judgment lien against the homeowner.
,C. Failure to pay property taxes.
D. A mechanic's lien for work on the property.
Correct Answer: B
Rationale: A simple judgment lien against the homeowner does not result in foreclosure of the
homestead estate. The homestead is protected from forced sale for most judgments.
6. What should a Sales Associate do if instructed by a Broker to perform an illegal act?
A. Follow the instruction to maintain employment.
B. Report it to the DBPR after completing the act.
C. Ignore the instruction and continue working.
D. Resign and seek another employment.
Correct Answer: D
Rationale: If a Broker instructs a Sales Associate to perform an illegal act, the Associate should
resign from that employment to avoid complicity and seek other employment.
7. What should Broker Smith have done with the earnest money check?
A. Held it in his personal account until closing.
B. Deposited it within 3 business days of receipt.
C. Given it directly to the seller.
D. Deposited it only after the contract was fully executed.
Correct Answer: B
Rationale: Florida law requires that earnest money deposits be placed into a broker's trust
account within three business days of receipt, unless otherwise agreed in writing.
, 8. Which clause in a note requires the lender to look only to the mortgaged property for
satisfaction of the debt?
A. Acceleration clause
B. Defeasance clause
C. Alienation clause
D. Exculpatory clause.
Correct Answer: D
Rationale: An exculpatory clause (or non-recourse clause) limits the lender's recourse solely to
the mortgaged property in the event of default, shielding the borrower's other assets.
9. How is an existing mortgage being paid off at closing recorded on the closing statement?
A. As a credit to the seller.
B. As a credit to the buyer.
C. As a debit to the seller.
D. As a debit to the buyer.
Correct Answer: C
Rationale: The payoff of an existing mortgage is an expense of the seller. Therefore, it is listed as
a debit (charge) to the seller on the closing statement.
10. What is the violation when Broker Smith pays an attorney for a referral of a real estate
prospect?
A. It is a violation of federal antitrust law.
B. It is permissible if disclosed.
EXAM 2026
1. What happens to the licenses of Sales Associates when their Broker's license is
suspended?
A. They are automatically terminated.
B. They are placed on voluntarily inactive status.
C. They are placed on involuntarily inactive status.
D. They are transferred to another Broker.
Correct Answer: C
Rationale: When a Broker's license is suspended, the licenses of the Sales Associates under that
Broker are placed on involuntarily inactive status until the Broker's license is operative again or
the Sales Associates secure new employment.
2. What federal law requires lenders to disclose the annual percentage rate to consumers?
A. Real Estate Settlement Procedures Act (RESPA)
B. Fair Housing Act
C. Consumer Credit Protection Act.
D. Truth in Lending Act (TILA)
Correct Answer: C
Rationale: The Consumer Credit Protection Act is the federal law that mandates the disclosure of
the annual percentage rate (APR) to consumers, implemented through Regulation Z.
, 3. When are Regulation Z disclosures made?
A. At the time of loan application.
B. Within three days of application.
C. At the closing.
D. Prior to showing a property.
Correct Answer: C
Rationale: For most real estate transactions, the disclosures required by Regulation Z (Truth in
Lending) are made at the closing of the transaction.
4. What can happen to a widow's homestead property?
A. It is fully protected from all claims.
B. It can be taken through eminent domain.
C. It automatically passes to the state.
D. It is exempt from all government powers.
Correct Answer: B
Rationale: While homestead property has certain protections, it is still subject to the
government's power of eminent domain, which allows the taking of private property for public
use with just compensation.
5. Which of the following does NOT result in a foreclosure of a homestead estate?
A. Failure to pay the mortgage.
B. Judgment lien against the homeowner.
,C. Failure to pay property taxes.
D. A mechanic's lien for work on the property.
Correct Answer: B
Rationale: A simple judgment lien against the homeowner does not result in foreclosure of the
homestead estate. The homestead is protected from forced sale for most judgments.
6. What should a Sales Associate do if instructed by a Broker to perform an illegal act?
A. Follow the instruction to maintain employment.
B. Report it to the DBPR after completing the act.
C. Ignore the instruction and continue working.
D. Resign and seek another employment.
Correct Answer: D
Rationale: If a Broker instructs a Sales Associate to perform an illegal act, the Associate should
resign from that employment to avoid complicity and seek other employment.
7. What should Broker Smith have done with the earnest money check?
A. Held it in his personal account until closing.
B. Deposited it within 3 business days of receipt.
C. Given it directly to the seller.
D. Deposited it only after the contract was fully executed.
Correct Answer: B
Rationale: Florida law requires that earnest money deposits be placed into a broker's trust
account within three business days of receipt, unless otherwise agreed in writing.
, 8. Which clause in a note requires the lender to look only to the mortgaged property for
satisfaction of the debt?
A. Acceleration clause
B. Defeasance clause
C. Alienation clause
D. Exculpatory clause.
Correct Answer: D
Rationale: An exculpatory clause (or non-recourse clause) limits the lender's recourse solely to
the mortgaged property in the event of default, shielding the borrower's other assets.
9. How is an existing mortgage being paid off at closing recorded on the closing statement?
A. As a credit to the seller.
B. As a credit to the buyer.
C. As a debit to the seller.
D. As a debit to the buyer.
Correct Answer: C
Rationale: The payoff of an existing mortgage is an expense of the seller. Therefore, it is listed as
a debit (charge) to the seller on the closing statement.
10. What is the violation when Broker Smith pays an attorney for a referral of a real estate
prospect?
A. It is a violation of federal antitrust law.
B. It is permissible if disclosed.
