FL REAL ESTATE LAWS & RULES
SIMPLIFIED + PRACTICE TEST
1. Protect consumers from loss because of dishonest and incompetent real estate sales
associates
2. Protect the good standing of ethical associates from the adverse publicity caused by
unprincipled licensees - correct answers ✔✔The Real Estate License Law
consists of seven members appointed by the governor and confirmed by the state
Senate. The Commission is composed of four real estate brokers (actively licensed for
five of the preceding years before appointment), one real estate broker or sales
associate (actively licensed for two years prior to appointment), and two consumer
members (never licensed as a broker or sales associate). At least one member of
FREC must be 60 years of age or older. Members of FREC shall be appointed for four-
, year terms. FREC administers and enforces the real estate license law, Chapter 475,
Part I, Florida Statutes. - correct answers ✔✔Florida Real Estate Commission (FREC)
is not upheld in a court of law but is enforced by FREC at special hearings, which will be
discussed later in this chapter. FREC does not settle commission disputes. Commission
disputes are settled in a court of law and handled through an attorney if the parties
involved cannot settle the matter agreeably. - correct answers ✔✔The license law
is under the Department of Business and Professional Regulation (DBPR). The DRE
performs all functions concerning regulation of general real estate in Florida. The DRE
is headed by a Director who is appointed by the Secretary of the DBPR, subject to
approval by FREC. - correct answers ✔✔The Division of Real Estate (DRE)
is someone who holds a broker license issued by the Florida Division of Real Estate
(DRE), which operates under the Department of Business and Professional Regulation
(DBPR). The license legally permits the broker to perform any acts for which a real
estate license is required. A real estate broker is also an independent businessperson
who can employ someone who holds a sales associate or a broker license. Brokers are
legally responsible for all the business actions of their employees. - correct answers
✔✔A real estate broker
is someone who holds a sales associate license. This is also issued by the Florida
Division of Real Estate (DRE). The sales associate must be employed by a real estate
broker or owner developer in order to perform any of the activities that require a license.
- correct answers ✔✔A real estate sales associate
is a term used to refer to someone who meets the requirements of being a broker but
works under the direction of another broker. - correct answers ✔✔A broker associate
• Advertise real estate services
• Negotiate the purchase of realty
• Appraise realty
• Rent or provide rental information or lists
• Negotiate the sale of realty
• Auction realty
• Lease realty
• Negotiate the exchange of realty - correct answers ✔✔Acts Requiring a Real Estate
License
It is unlawful for any unlicensed person to operate as a real estate broker or sales
associate. Doing so constitutes a third degree felony, and can mean possible jail time
and/or a $5,000 penalty plus possible court costs. The court may impose a fine twice
the amount of the gain or loss, depending on any monetary gain the unlicensed person
obtained, or any pecuniary (financial) loss the alleged victim sustained. - correct
answers ✔✔Chapter 475
SIMPLIFIED + PRACTICE TEST
1. Protect consumers from loss because of dishonest and incompetent real estate sales
associates
2. Protect the good standing of ethical associates from the adverse publicity caused by
unprincipled licensees - correct answers ✔✔The Real Estate License Law
consists of seven members appointed by the governor and confirmed by the state
Senate. The Commission is composed of four real estate brokers (actively licensed for
five of the preceding years before appointment), one real estate broker or sales
associate (actively licensed for two years prior to appointment), and two consumer
members (never licensed as a broker or sales associate). At least one member of
FREC must be 60 years of age or older. Members of FREC shall be appointed for four-
, year terms. FREC administers and enforces the real estate license law, Chapter 475,
Part I, Florida Statutes. - correct answers ✔✔Florida Real Estate Commission (FREC)
is not upheld in a court of law but is enforced by FREC at special hearings, which will be
discussed later in this chapter. FREC does not settle commission disputes. Commission
disputes are settled in a court of law and handled through an attorney if the parties
involved cannot settle the matter agreeably. - correct answers ✔✔The license law
is under the Department of Business and Professional Regulation (DBPR). The DRE
performs all functions concerning regulation of general real estate in Florida. The DRE
is headed by a Director who is appointed by the Secretary of the DBPR, subject to
approval by FREC. - correct answers ✔✔The Division of Real Estate (DRE)
is someone who holds a broker license issued by the Florida Division of Real Estate
(DRE), which operates under the Department of Business and Professional Regulation
(DBPR). The license legally permits the broker to perform any acts for which a real
estate license is required. A real estate broker is also an independent businessperson
who can employ someone who holds a sales associate or a broker license. Brokers are
legally responsible for all the business actions of their employees. - correct answers
✔✔A real estate broker
is someone who holds a sales associate license. This is also issued by the Florida
Division of Real Estate (DRE). The sales associate must be employed by a real estate
broker or owner developer in order to perform any of the activities that require a license.
- correct answers ✔✔A real estate sales associate
is a term used to refer to someone who meets the requirements of being a broker but
works under the direction of another broker. - correct answers ✔✔A broker associate
• Advertise real estate services
• Negotiate the purchase of realty
• Appraise realty
• Rent or provide rental information or lists
• Negotiate the sale of realty
• Auction realty
• Lease realty
• Negotiate the exchange of realty - correct answers ✔✔Acts Requiring a Real Estate
License
It is unlawful for any unlicensed person to operate as a real estate broker or sales
associate. Doing so constitutes a third degree felony, and can mean possible jail time
and/or a $5,000 penalty plus possible court costs. The court may impose a fine twice
the amount of the gain or loss, depending on any monetary gain the unlicensed person
obtained, or any pecuniary (financial) loss the alleged victim sustained. - correct
answers ✔✔Chapter 475
