Florida Real Estate Exam Questions And
Answers Verified 100% Correct
A broker who represents as a fiduciary both the buyer and seller in a real estate
transaction is a - ANSWER dual agent.
If a broker receives a kickback, what must he or she do? - ANSWER Disclose it to all
involved parties
Which of the following business entities may not register as a brokerage? - ANSWER
Corporate sole
A trade name must not - ANSWER be used by a sales associate.
An unlicensed associate may not - ANSWER sign a listing agreement.
A broker-associate may be a business entity officer, director, or partner if he/she -
ANSWER Upgrades to an active broker
If a sales associate terminates his employment with one broker and becomes
employed with another broker, what happens to the associate's license? - ANSWER It
ceases to be in force.
Broker Chad received an under-the-table payment from Tom's Home Inspection
Services for recommending Tom to a home buyer. - ANSWER Chad must tell
everyone involved in the same transaction about the payment.
Broker Sal sold Owner John's home and is not being paid his commission. What type of
lien rights does Sal have for the unpaid commission? - ANSWER Sal has no lien rights
for the unpaid commission.
Regarding escrow accounts, which of the following is true? - ANSWER The broker has
30 days to correct any account errors
In what they believed was a smart business decision, Roy's Realty and Wescott
brokerages have created a monopoly for real estate services in their small town of
Bakersville. Was this indeed a smart business decision? Why or why not? - ANSWER
No, because they have violated antitrust laws
What is the statute of limitation for filing any action in a claim for an antitrust law
violation? - ANSWER 4 years
,Florida allows brokers to deposit personal funds into a sales escrow account. What is
the allowed limit of personal funds? - ANSWER $1000
Florida allows brokers to deposit personal funds into a property management escrow
account. What is the allowed amount of personal funds in this type of account? -
ANSWER $5000
When may escrow account funds be disbursed? - ANSWER When transaction closes
What is the broker's monthly responsibility regarding all escrow accounts? - ANSWER
Create a written statement of liabilities and balances
Which of the following information is not required as part of the minimum information to
be included in an escrow account statement-reconciliation? - ANSWER Names of
depositors
Under Florida Deceptive and Unfair Trade Practices, the penalty for willful unfair or
fraudulent advertising is - ANSWER civil penalty of not more than $10,000.
Additional brokerage offices are deemed as branch offices if - ANSWER the name of
the broker is displayed on all the offices.
If a broker's registered office is located outside Florida, which of the following is correct?
- ANSWER The broker must personally appear at any office of the FREC if requested
in relation to an investigation.
If escrow funds are held by a title company, - ANSWER the licensee must name the
title company on the sales contract.
If a broker conducts business at a location other than the principal brokerage office,
what is the broker required to do? - ANSWER Register the second location as a
branch office
A broker is required to immediately deposit any trust funds received. Under Florida real
estate law, how is "immediately" defined? - ANSWER 3 business days
Where may trust funds not be deposited? - ANSWER Broker's business account
If an escrow account's record shows a negative balance, what must the broker do? -
ANSWER Note the cause and corrective action taken
If there is a dispute involving the amount of the broker's commission, what may the
broker do regarding the trust funds in the associated escrow account? - ANSWER
,Retain the commission amount in the account until the dispute is resolved
Any broker who provides a rental information list to a prospective tenant for a fee must -
ANSWER provide for the repayment of a percentage of the fee under certain conditions.
Violators of Florida antitrust laws can be sued for recovery of - ANSWER 3x amount of
damage
If a rental information list is provided for a fee, the tenant may be fully reimbursed for
the fee unless - ANSWER the tenant demanded the refund after 60 days of paying the
fee.
The Florida Antitrust Act of 1980 was enacted - ANSWER to complement the federal
antitrust laws
A broker has not violated Florida antitrust laws if he/she - ANSWER meets with another
brokerage to compare listed properties.
A sales associate may collect a commission directly from the seller only
when -
ANSWER his/her employer
consents.
What is a kickback? - ANSWER Monies paid to a broker for using a particular
service
provider during a real estate
transaction
Which of the following is not required when filing a complaint against a licensee for a
rule or regulation violation? - ANSWER Complaint must include witnesses to the action.
Which of the following is not an option for the respondent to a filed complaint? -
ANSWER Dispute the allegations and be provided an informal hearing
Which of the following is not an administrative penalty for law or rules violations? -
ANSWER License cancelation
What is the maximum imprisonment time allowed for a misdemeanor of the second
degree? - ANSWER 60 days
Being compensated for practicing real estate without a license is a - ANSWER Felony
of the 3rd degree
, A notice of noncompliance may be issued for a minor violation. Which of the following
falls within the statutory guidelines of a "minor violation"? - ANSWER Broker Hale
failed to maintain a sign at his brokerage office
Property Seller Sue believes she has a valid case against Broker Bob because Sue
suffered monetary damages due to Bob's action as her real estate agent. Before Sue
can seek recovery payment from the Florida Real Estate Recovery Fund, who must
determine whether or not she suffered the damages? - ANSWER A civil court
To qualify for recovery funds, the complainant must file a claim within - ANSWER 2
years of discovering damaging act
A person may be qualified to make a claim for recovery from the Real Estate Recovery
Fund if - ANSWER the person notified the FREC of the claim by certified mail.
Payments from the Real Estate Recovery Fund are limited for each broker to an
aggregate - ANSWER $150,000
When the DRE attorneys and the licensee and his/her attorneys come to an agreement
regarding the statement of facts and the imposed penalty associated with a complaint,
this is known as - ANSWER Stipulation
Charlene, who is located in Michigan, is looking to purchase a home in Florida based
solely on her broker's recommendations because she will not see the home prior to
purchase. Her broker has told her that he found a beautiful home on a lake that is just
what she is looking for. In actuality, the home is a fixer-upper at best, and the lake is
infested with alligators and poisonous snakes. Which of the following statements is
FALSE? - ANSWER Charlene should file a citation against the broker.
A licensee who has received a final order of guilty for a violation complaint may appeal
the order - ANSWER within 30 days after the final order.
If a licensee is suspended prior to any hearing for a complaint of a serious law violation,
this action is known as a - ANSWER Summary Suspension Order
What is the purpose of the Disciplinary Guidelines set forth by the FREC? - ANSWER
To outline penalties allowed for mitigating circumstances
If an applicant for licensure has not successfully passed the licensure examination, -
ANSWER his/her license can be denied.
To avoid denial of licensure, an applicant - ANSWER must not have been disbarred.
Answers Verified 100% Correct
A broker who represents as a fiduciary both the buyer and seller in a real estate
transaction is a - ANSWER dual agent.
If a broker receives a kickback, what must he or she do? - ANSWER Disclose it to all
involved parties
Which of the following business entities may not register as a brokerage? - ANSWER
Corporate sole
A trade name must not - ANSWER be used by a sales associate.
An unlicensed associate may not - ANSWER sign a listing agreement.
A broker-associate may be a business entity officer, director, or partner if he/she -
ANSWER Upgrades to an active broker
If a sales associate terminates his employment with one broker and becomes
employed with another broker, what happens to the associate's license? - ANSWER It
ceases to be in force.
Broker Chad received an under-the-table payment from Tom's Home Inspection
Services for recommending Tom to a home buyer. - ANSWER Chad must tell
everyone involved in the same transaction about the payment.
Broker Sal sold Owner John's home and is not being paid his commission. What type of
lien rights does Sal have for the unpaid commission? - ANSWER Sal has no lien rights
for the unpaid commission.
Regarding escrow accounts, which of the following is true? - ANSWER The broker has
30 days to correct any account errors
In what they believed was a smart business decision, Roy's Realty and Wescott
brokerages have created a monopoly for real estate services in their small town of
Bakersville. Was this indeed a smart business decision? Why or why not? - ANSWER
No, because they have violated antitrust laws
What is the statute of limitation for filing any action in a claim for an antitrust law
violation? - ANSWER 4 years
,Florida allows brokers to deposit personal funds into a sales escrow account. What is
the allowed limit of personal funds? - ANSWER $1000
Florida allows brokers to deposit personal funds into a property management escrow
account. What is the allowed amount of personal funds in this type of account? -
ANSWER $5000
When may escrow account funds be disbursed? - ANSWER When transaction closes
What is the broker's monthly responsibility regarding all escrow accounts? - ANSWER
Create a written statement of liabilities and balances
Which of the following information is not required as part of the minimum information to
be included in an escrow account statement-reconciliation? - ANSWER Names of
depositors
Under Florida Deceptive and Unfair Trade Practices, the penalty for willful unfair or
fraudulent advertising is - ANSWER civil penalty of not more than $10,000.
Additional brokerage offices are deemed as branch offices if - ANSWER the name of
the broker is displayed on all the offices.
If a broker's registered office is located outside Florida, which of the following is correct?
- ANSWER The broker must personally appear at any office of the FREC if requested
in relation to an investigation.
If escrow funds are held by a title company, - ANSWER the licensee must name the
title company on the sales contract.
If a broker conducts business at a location other than the principal brokerage office,
what is the broker required to do? - ANSWER Register the second location as a
branch office
A broker is required to immediately deposit any trust funds received. Under Florida real
estate law, how is "immediately" defined? - ANSWER 3 business days
Where may trust funds not be deposited? - ANSWER Broker's business account
If an escrow account's record shows a negative balance, what must the broker do? -
ANSWER Note the cause and corrective action taken
If there is a dispute involving the amount of the broker's commission, what may the
broker do regarding the trust funds in the associated escrow account? - ANSWER
,Retain the commission amount in the account until the dispute is resolved
Any broker who provides a rental information list to a prospective tenant for a fee must -
ANSWER provide for the repayment of a percentage of the fee under certain conditions.
Violators of Florida antitrust laws can be sued for recovery of - ANSWER 3x amount of
damage
If a rental information list is provided for a fee, the tenant may be fully reimbursed for
the fee unless - ANSWER the tenant demanded the refund after 60 days of paying the
fee.
The Florida Antitrust Act of 1980 was enacted - ANSWER to complement the federal
antitrust laws
A broker has not violated Florida antitrust laws if he/she - ANSWER meets with another
brokerage to compare listed properties.
A sales associate may collect a commission directly from the seller only
when -
ANSWER his/her employer
consents.
What is a kickback? - ANSWER Monies paid to a broker for using a particular
service
provider during a real estate
transaction
Which of the following is not required when filing a complaint against a licensee for a
rule or regulation violation? - ANSWER Complaint must include witnesses to the action.
Which of the following is not an option for the respondent to a filed complaint? -
ANSWER Dispute the allegations and be provided an informal hearing
Which of the following is not an administrative penalty for law or rules violations? -
ANSWER License cancelation
What is the maximum imprisonment time allowed for a misdemeanor of the second
degree? - ANSWER 60 days
Being compensated for practicing real estate without a license is a - ANSWER Felony
of the 3rd degree
, A notice of noncompliance may be issued for a minor violation. Which of the following
falls within the statutory guidelines of a "minor violation"? - ANSWER Broker Hale
failed to maintain a sign at his brokerage office
Property Seller Sue believes she has a valid case against Broker Bob because Sue
suffered monetary damages due to Bob's action as her real estate agent. Before Sue
can seek recovery payment from the Florida Real Estate Recovery Fund, who must
determine whether or not she suffered the damages? - ANSWER A civil court
To qualify for recovery funds, the complainant must file a claim within - ANSWER 2
years of discovering damaging act
A person may be qualified to make a claim for recovery from the Real Estate Recovery
Fund if - ANSWER the person notified the FREC of the claim by certified mail.
Payments from the Real Estate Recovery Fund are limited for each broker to an
aggregate - ANSWER $150,000
When the DRE attorneys and the licensee and his/her attorneys come to an agreement
regarding the statement of facts and the imposed penalty associated with a complaint,
this is known as - ANSWER Stipulation
Charlene, who is located in Michigan, is looking to purchase a home in Florida based
solely on her broker's recommendations because she will not see the home prior to
purchase. Her broker has told her that he found a beautiful home on a lake that is just
what she is looking for. In actuality, the home is a fixer-upper at best, and the lake is
infested with alligators and poisonous snakes. Which of the following statements is
FALSE? - ANSWER Charlene should file a citation against the broker.
A licensee who has received a final order of guilty for a violation complaint may appeal
the order - ANSWER within 30 days after the final order.
If a licensee is suspended prior to any hearing for a complaint of a serious law violation,
this action is known as a - ANSWER Summary Suspension Order
What is the purpose of the Disciplinary Guidelines set forth by the FREC? - ANSWER
To outline penalties allowed for mitigating circumstances
If an applicant for licensure has not successfully passed the licensure examination, -
ANSWER his/her license can be denied.
To avoid denial of licensure, an applicant - ANSWER must not have been disbarred.
