Florida Real Estate Class – Final Exam – 2025
Update – Verified Questions, Answers &
Rationales
Q: What constitutes a stipulation in legal terms?
A: A stipulation occurs when attorneys reach a mutual agreement regarding penalties for a
violation.
Q: What are the consequences if an inactive sales associate renews their license before
expiration but fails to complete continuing education?
A: The licensee risks license revocation and a 5-year prohibition from reapplying if
discovered by the BPR.
Q: Can a sales associate practice real estate during an appeal after license revocation?
A: Yes, if a stay of enforcement (supercedeas) is granted during the appeal process.
Q: What are FREC's three mandatory actions regarding court final orders?
A: FREC must:
1. Report disciplinary actions to the Division of Florida Land Sales, Condominiums, and
Mobile Homes
2. Refer criminal matters to the State Attorney
3. Issue a show-cause notice if another agency disciplines a licensee
Q: What is the purpose of Florida's Real Estate Recovery Fund?
A: It reimburses individuals who suffer monetary damages due to a licensee's violation of
Chapter 475.
Q: What are the claim limits from the Recovery Fund?
A:
50,000persingletransactionor
50,000 per single transaction or 150,000 maximum for multiple claims.
Q: Which law prohibits racial discrimination in real estate transactions?
A: The Civil Rights Act of 1866.
Q: What seven protected classes are covered under the Fair Housing Act of 1968?
A: The Act prohibits discrimination based on:
1. Religion
2. Sex
3. National origin
4. Color
5. Race
6. Familial status
, 7. Disability
Q: Does the Civil Rights Act of 1866 override other laws concerning racial discrimination?
A: Yes, it takes precedence over all other laws regarding racial matters.
Q: What are the Fair Housing Act's five exemptions?
A: Exemptions include:
1. Religious organizations
2. Private clubs
3. Owner-occupied single-family homes (≤3 properties)
4. 2-4 unit buildings where owner occupies one unit
5. Commercial properties
Q: What three practices are unlawful under fair housing laws?
A:
1. Steering buyers based on protected characteristics
2. Blockbusting to induce panic selling
3. Redlining by lenders
Q: Which regulation requires APR and finance charge disclosures?
A: Regulation Z (Truth in Lending Act).
Q: When must lenders provide TILA disclosures after receiving a loan application?
A: Within 3 business days.
Q: What transactions allow a 3-day right to cancel under Regulation Z?
A:
1. Home equity lines of credit
2. Cash-out refinances
3. Second mortgages on primary residences
Q: What must ads include when using trigger terms?
A: Full disclosure of:
1. Down payment amount/percentage
2. Loan terms
3. APR
Q: Which law prohibits credit discrimination based on age?
A: The Equal Credit Opportunity Act.
Q: How may landlords handle security deposits in Florida?
A: Three options:
1. Non-interest-bearing separate account
2. Interest-bearing account paying tenant 75% of earnings or 5% annual interest
3. Surety bond with 5% interest payment while commingling funds
Q: When must landlords return security deposits after lease termination?
A: 15 days to return funds or 30 days to notify of claims.
Update – Verified Questions, Answers &
Rationales
Q: What constitutes a stipulation in legal terms?
A: A stipulation occurs when attorneys reach a mutual agreement regarding penalties for a
violation.
Q: What are the consequences if an inactive sales associate renews their license before
expiration but fails to complete continuing education?
A: The licensee risks license revocation and a 5-year prohibition from reapplying if
discovered by the BPR.
Q: Can a sales associate practice real estate during an appeal after license revocation?
A: Yes, if a stay of enforcement (supercedeas) is granted during the appeal process.
Q: What are FREC's three mandatory actions regarding court final orders?
A: FREC must:
1. Report disciplinary actions to the Division of Florida Land Sales, Condominiums, and
Mobile Homes
2. Refer criminal matters to the State Attorney
3. Issue a show-cause notice if another agency disciplines a licensee
Q: What is the purpose of Florida's Real Estate Recovery Fund?
A: It reimburses individuals who suffer monetary damages due to a licensee's violation of
Chapter 475.
Q: What are the claim limits from the Recovery Fund?
A:
50,000persingletransactionor
50,000 per single transaction or 150,000 maximum for multiple claims.
Q: Which law prohibits racial discrimination in real estate transactions?
A: The Civil Rights Act of 1866.
Q: What seven protected classes are covered under the Fair Housing Act of 1968?
A: The Act prohibits discrimination based on:
1. Religion
2. Sex
3. National origin
4. Color
5. Race
6. Familial status
, 7. Disability
Q: Does the Civil Rights Act of 1866 override other laws concerning racial discrimination?
A: Yes, it takes precedence over all other laws regarding racial matters.
Q: What are the Fair Housing Act's five exemptions?
A: Exemptions include:
1. Religious organizations
2. Private clubs
3. Owner-occupied single-family homes (≤3 properties)
4. 2-4 unit buildings where owner occupies one unit
5. Commercial properties
Q: What three practices are unlawful under fair housing laws?
A:
1. Steering buyers based on protected characteristics
2. Blockbusting to induce panic selling
3. Redlining by lenders
Q: Which regulation requires APR and finance charge disclosures?
A: Regulation Z (Truth in Lending Act).
Q: When must lenders provide TILA disclosures after receiving a loan application?
A: Within 3 business days.
Q: What transactions allow a 3-day right to cancel under Regulation Z?
A:
1. Home equity lines of credit
2. Cash-out refinances
3. Second mortgages on primary residences
Q: What must ads include when using trigger terms?
A: Full disclosure of:
1. Down payment amount/percentage
2. Loan terms
3. APR
Q: Which law prohibits credit discrimination based on age?
A: The Equal Credit Opportunity Act.
Q: How may landlords handle security deposits in Florida?
A: Three options:
1. Non-interest-bearing separate account
2. Interest-bearing account paying tenant 75% of earnings or 5% annual interest
3. Surety bond with 5% interest payment while commingling funds
Q: When must landlords return security deposits after lease termination?
A: 15 days to return funds or 30 days to notify of claims.
