Broker Exam UPDATED Exam Questions
and CORRECT Answers
Which violation is a first-degree misdemeanor? - CORRECT ANSWER - Collecting a fee
for inaccurate and out-of-date rental information
The Florida Real Estate Recovery Fund is for? - CORRECT ANSWER - Reimbursing
consumers who are financially injured by a licensee.
What is the purpose of the disciplinary guidelines? - CORRECT ANSWER - to give notice
to licensees of the range of penalties that normally will be imposed for violation of a law or rule
How could an investor reduce static risk on one of her investments? - CORRECT
ANSWER - The investor could purchase an insurance policy.
What is a company's quick ratio? - CORRECT ANSWER - an indicator of a company's
ability to satisfy short-term obligations.
Which of the following statements is true concerning a sales associate's continuing education? -
CORRECT ANSWER - Actively licensed and inactively licensed sales associates must
complete the 14 hours of continuing education.
What is the binder deposit? - CORRECT ANSWER - evidence of a buyer's good faith and
would be noted on page three of the closing disclosure.
Where is the total purchase price placed on the Closing Disclosure? - CORRECT
ANSWER - Page three: debit to the buyer, credit to the seller
A brand new necklace is on sale for $1,250. $1,250 is the necklace's? - CORRECT
ANSWER - price
,What is risk called that is insurable associated with a fire or flood? - CORRECT
ANSWER - Static risk
Which of the following statements is false concerning advance rents and security deposits held
by landlords per the Florida Residential Landlord and Tenant Act? - CORRECT
ANSWER - If a claim is being made on the deposit the landlord has 15 days to notify the
tenant of the claim.
If a buyer called a listing agent and made an oral offer to buy, the offer is? - CORRECT
ANSWER - unenforceable
What is a quitclaim deed? - CORRECT ANSWER - can be used to clear clouds on title.
Which type of listing would the broker always be required to show procuring cause, in order to
receive a commission? - CORRECT ANSWER - An open listing
A broker hired an unlicensed assistant and agreed to pay him a salary of $25 per hour plus a
$500 bonus for all commissions earned. Which statement is false? - CORRECT
ANSWER - Brokers are not permitted to hire unlicensed assistants and therefore is in
violation and could be punished by the FREC.
After receiving conflicting demands for escrow funds, broker James requested an escrow
disbursement order, (EDO). Before the FREC issued the EDO, both parties in the transaction
solved the dispute. How many days does the broker have to inform the FREC that the EDO is no
longer needed? - CORRECT ANSWER - 10 days
Which of the following is the broker not permitted to do in the event of a disagreement between
the buyer and seller over escrow funds? - CORRECT ANSWER - return the escrow funds
to the buyer
What must happen or be included in a deed? - CORRECT ANSWER - be recorded
,In a contract for deed, also called a land contract, when does the title transfer to the new owner? -
CORRECT ANSWER - When the buyer pays the final payment
Which type of lease would most likely be used in a retail mall? - CORRECT ANSWER -
percentage lease
A sales associate receives an earnest money deposit on Friday and delivers it to the broker that
same day. When must the broker deposit the funds into the escrow account? - CORRECT
ANSWER - Wednesday of the following week
Which of the following is correct concerning freehold and non-freehold estates? - CORRECT
ANSWER - A timeshare is a freehold estate.
What must complete a purchase and sales contract? - CORRECT ANSWER - must in
writing, (per the Statute of Frauds) and signed to be enforceable.
A seller allows a broker to list her house but retains the right not to pay a commission if the seller
finds the buyer. What kind of listing agreement is this? - CORRECT ANSWER -
Exclusive Listing
What is it referred to when a person who is licensed in one state is permitted to practice in
another state? - CORRECT ANSWER - reciprocity
Regarding property managers and rental agents, which of these statements is incorrect? -
CORRECT ANSWER - A property manager's responsibilities include locating tenants but
not collecting rents.
Which of the following is a written opinion of value? - CORRECT ANSWER - BPO
(brokers price opinion)
, Concerning property managers, which statement is true? - CORRECT ANSWER -A
property manager who is paid by commission or on a transactional basis must be licensed as an
active real estate broker.
What is the status of a license if a sales associate did not complete the required post-licensing
education? - CORRECT ANSWER - Null and void
Jennifer is a licensed sales associate that is employed by broker Thomas. Broker Thomas runs his
brokerage firm with only single agents. Jennifer recently listed a home for $895,000. When she
was at a friend's house later that week, she met a potential buyer. Which applies? - CORRECT
ANSWER - Jennifer cannot show the house to the potential buyer because she has entered
into a single agency relationship with the seller. She would first need to present to the buyer a no
brokerage relationship notice.
A broker sold a rental list to a customer. If the customer does not find a rental and requests a
refund, which applies? - CORRECT ANSWER - If the list was up to date and accurate and
the request was made within 30 days, the broker must refund 75% of the money paid to the
customer.
A sales associate has decided to order marketing materials. The sales associate is paying for all
of the materials including flyers and brochures. Which applies? - CORRECT ANSWER -
The sales associate must include the name of the brokerage firm, or the flyers and brochures
would be considered blind ads.
A property manager has deposited $6,000 of his own funds in an escrow account to maintain the
account. Which applies? - CORRECT ANSWER - The property manager is commingling
$1,000.
Which law prohibits racial discrimination in the sale or lease of all real property without
exception? - CORRECT ANSWER - Civil Rights Act of 1866
Which of the following describes a sales associate that is encouraging a seller to list their
property based on the rumor of a protected class moving into the neighborhood? - CORRECT
ANSWER - blockbusting
and CORRECT Answers
Which violation is a first-degree misdemeanor? - CORRECT ANSWER - Collecting a fee
for inaccurate and out-of-date rental information
The Florida Real Estate Recovery Fund is for? - CORRECT ANSWER - Reimbursing
consumers who are financially injured by a licensee.
What is the purpose of the disciplinary guidelines? - CORRECT ANSWER - to give notice
to licensees of the range of penalties that normally will be imposed for violation of a law or rule
How could an investor reduce static risk on one of her investments? - CORRECT
ANSWER - The investor could purchase an insurance policy.
What is a company's quick ratio? - CORRECT ANSWER - an indicator of a company's
ability to satisfy short-term obligations.
Which of the following statements is true concerning a sales associate's continuing education? -
CORRECT ANSWER - Actively licensed and inactively licensed sales associates must
complete the 14 hours of continuing education.
What is the binder deposit? - CORRECT ANSWER - evidence of a buyer's good faith and
would be noted on page three of the closing disclosure.
Where is the total purchase price placed on the Closing Disclosure? - CORRECT
ANSWER - Page three: debit to the buyer, credit to the seller
A brand new necklace is on sale for $1,250. $1,250 is the necklace's? - CORRECT
ANSWER - price
,What is risk called that is insurable associated with a fire or flood? - CORRECT
ANSWER - Static risk
Which of the following statements is false concerning advance rents and security deposits held
by landlords per the Florida Residential Landlord and Tenant Act? - CORRECT
ANSWER - If a claim is being made on the deposit the landlord has 15 days to notify the
tenant of the claim.
If a buyer called a listing agent and made an oral offer to buy, the offer is? - CORRECT
ANSWER - unenforceable
What is a quitclaim deed? - CORRECT ANSWER - can be used to clear clouds on title.
Which type of listing would the broker always be required to show procuring cause, in order to
receive a commission? - CORRECT ANSWER - An open listing
A broker hired an unlicensed assistant and agreed to pay him a salary of $25 per hour plus a
$500 bonus for all commissions earned. Which statement is false? - CORRECT
ANSWER - Brokers are not permitted to hire unlicensed assistants and therefore is in
violation and could be punished by the FREC.
After receiving conflicting demands for escrow funds, broker James requested an escrow
disbursement order, (EDO). Before the FREC issued the EDO, both parties in the transaction
solved the dispute. How many days does the broker have to inform the FREC that the EDO is no
longer needed? - CORRECT ANSWER - 10 days
Which of the following is the broker not permitted to do in the event of a disagreement between
the buyer and seller over escrow funds? - CORRECT ANSWER - return the escrow funds
to the buyer
What must happen or be included in a deed? - CORRECT ANSWER - be recorded
,In a contract for deed, also called a land contract, when does the title transfer to the new owner? -
CORRECT ANSWER - When the buyer pays the final payment
Which type of lease would most likely be used in a retail mall? - CORRECT ANSWER -
percentage lease
A sales associate receives an earnest money deposit on Friday and delivers it to the broker that
same day. When must the broker deposit the funds into the escrow account? - CORRECT
ANSWER - Wednesday of the following week
Which of the following is correct concerning freehold and non-freehold estates? - CORRECT
ANSWER - A timeshare is a freehold estate.
What must complete a purchase and sales contract? - CORRECT ANSWER - must in
writing, (per the Statute of Frauds) and signed to be enforceable.
A seller allows a broker to list her house but retains the right not to pay a commission if the seller
finds the buyer. What kind of listing agreement is this? - CORRECT ANSWER -
Exclusive Listing
What is it referred to when a person who is licensed in one state is permitted to practice in
another state? - CORRECT ANSWER - reciprocity
Regarding property managers and rental agents, which of these statements is incorrect? -
CORRECT ANSWER - A property manager's responsibilities include locating tenants but
not collecting rents.
Which of the following is a written opinion of value? - CORRECT ANSWER - BPO
(brokers price opinion)
, Concerning property managers, which statement is true? - CORRECT ANSWER -A
property manager who is paid by commission or on a transactional basis must be licensed as an
active real estate broker.
What is the status of a license if a sales associate did not complete the required post-licensing
education? - CORRECT ANSWER - Null and void
Jennifer is a licensed sales associate that is employed by broker Thomas. Broker Thomas runs his
brokerage firm with only single agents. Jennifer recently listed a home for $895,000. When she
was at a friend's house later that week, she met a potential buyer. Which applies? - CORRECT
ANSWER - Jennifer cannot show the house to the potential buyer because she has entered
into a single agency relationship with the seller. She would first need to present to the buyer a no
brokerage relationship notice.
A broker sold a rental list to a customer. If the customer does not find a rental and requests a
refund, which applies? - CORRECT ANSWER - If the list was up to date and accurate and
the request was made within 30 days, the broker must refund 75% of the money paid to the
customer.
A sales associate has decided to order marketing materials. The sales associate is paying for all
of the materials including flyers and brochures. Which applies? - CORRECT ANSWER -
The sales associate must include the name of the brokerage firm, or the flyers and brochures
would be considered blind ads.
A property manager has deposited $6,000 of his own funds in an escrow account to maintain the
account. Which applies? - CORRECT ANSWER - The property manager is commingling
$1,000.
Which law prohibits racial discrimination in the sale or lease of all real property without
exception? - CORRECT ANSWER - Civil Rights Act of 1866
Which of the following describes a sales associate that is encouraging a seller to list their
property based on the rumor of a protected class moving into the neighborhood? - CORRECT
ANSWER - blockbusting
