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09-FL-E FL Real Estate Laws & Rules Practice Exam | 100 Questions & Answers with Explanations Rated A+ Subject/Course: Real Estate, Licensing Exams, Business, Law Tags: Florida Real Estate, Florida RE License, Florida Statutes 475, FREC, Broker, Sales Associate, Florida Administrative Code, Law and Rules
- The regulatory body responsible for enforcing Florida real estate license law is the: A)Florida Association of Realtors® (FAR) B) Florida Real Estate Commission (FREC) C) Department of Business and Professional Regulation (DBPR) D) Both B and C Correct Answer: D) Both B and C Explanation: FREC is the commission that sets rules and policies under Florida Statutes Chapter 475. The DBPR is the state agency that carries out the administrative functions, including licensing and discipline. 2.A "Sales Associate" in Florida must be affiliated with: A)Any licensed broker in any state B) An active Florida licensed real estate broker C) The DBPR directly D) No one; they can operate independently Correct Answer: B) An active Florida licensed real estate broker Explanation: Per FS 475.01, a sales associate performs real estate services only under the direction and supervision of a registered Florida broker. They cannot act independently.
3.The minimum age to obtain a real estate license in Florida is: A) 18 B) 19 C) 21 D) There is no minimum age Correct Answer: A) 18 Explanation: Florida Statute 475.175 requires an applicant to be at least 18 years of age. 4.A real estate brokerage "trust account" must be used to hold: A)The broker's personal funds B) The broker's commission income C) Deposits, earnest money, rent, or other funds belonging to others (clients/customers) D) Funds for office expenses Correct Answer: C) Deposits, earnest money, rent, or other funds belonging to others (clients/customers) Explanation: This is a key requirement under Florida law (FAC 61J2-14.008). All escrow funds received in a real estate transaction must be deposited into a properly designated trust (escrow) account. 5.How long must a broker maintain trust account records? A) 1 year B) 3 years C) 5 years
Explanation: Misrepresentation includes both affirmative false statements and the concealment or omission of material facts when there is a duty to disclose (FS 475.25). 8.The "Florida Residential Landlord and Tenant Act" is contained in: A)Chapter 475, F.S. B) Chapter 83, F.S. C) Chapter 720, F.S. (HOA Act) D) DBPR rules Correct Answer: B) Chapter 83, F.S. Explanation: This law governs the rights and responsibilities of landlords and tenants for residential properties. Real estate licensees must be familiar with it when managing property or handling rentals. 9.A licensee who holds an "active" license status must complete: A)No continuing education B) 14 hours of FREC-approved continuing education every 2 years C) 45 hours of post-licensing education before the first renewal D) 60 hours of pre-licensing every renewal Correct Answer: B) 14 hours of FREC-approved continuing education every 2 years Explanation: To renew an active license, a licensee must complete 14 hours of CE, including a 3-hour core law course and 11 hours of specialty credit, during each 2- year license period.
- A sales associate's license becomes "inactive" automatically if: A)They fail to pay their renewal fee
B) They are not affiliated with a broker C) They move out of state D) All of the above Correct Answer: B) They are not affiliated with a broker Explanation: Per FS 475.161, a sales associate or broker associate license becomes inactive if the licensee is not affiliated with a registered broker. The license remains valid but cannot be used to provide services.
- "Procuring cause" in a commission dispute refers to: A)The cause of the sale falling through B) The broker who was the primary motivating factor in producing a ready, willing, and able buyer C) The cause of a license suspension D) The legal cause for terminating a listing Correct Answer: B) The broker who was the primary motivating factor in producing a ready, willing, and able buyer Explanation: This is a key concept in determining who is entitled to a commission. It involves evaluating who initiated the uninterrupted series of events that led to the sale.
- A "single agent" relationship in Florida requires the licensee to: A)Represent both buyer and seller with consent B) Represent either the buyer or the seller, but not both in the same transaction, with a duty of loyalty and confidentiality C) Act as a transaction broker by default D) Only disclose known facts
information, and accounting for funds.
- Which of the following is a duty owed by a transaction broker? A)Loyalty to only one party B) Obedience to all instructions from both parties C) Disclosing all known facts that materially affect the value of the property D) Maintaining confidentiality of all information Correct Answer: C) Disclosing all known facts that materially affect the value of the property Explanation: This is one of the eight specific statutory duties of a transaction broker. They do not owe loyalty or obedience, and confidentiality is limited (they cannot keep information from one party that would create an unfair advantage).
- A broker who takes a listing on a property he owns must: A)Disclose in writing to the buyer that he is the owner B) Not take a commission C) Have another broker in the office handle the transaction D) Only sell it to a family member Correct Answer: A) Disclose in writing to the buyer that he is the owner Explanation: This is required by FS 475.278(3). When a broker acts as a principal in a transaction (buying or selling for themselves), they must disclose their ownership interest in writing to any prospective buyer.
- The "Florida Solar Energy Center Act" requires disclosure about a property's solar device: A)Only if it is broken
Correct Answer: B) Illegal under federal RESPA and Florida law Explanation: Paying a fee or commission to someone who is not properly licensed to perform real estate services is a violation of Florida law (FS 475.42) and federal RESPA regulations.
- Advertising that fails to include the licensed name of the broker or firm is: A)Acceptable if it includes the sales associate's name B) A violation of FREC rules C) Only a problem for television ads D) Not regulated Correct Answer: B) A violation of FREC rules Explanation: FAC 61J2-10.025 requires all advertising to include the licensed name of the brokerage firm or the individual broker. "Blind ads" that don't identify the licensee are prohibited.
- How many hours of pre-licensing education are required for a Sales Associate license in Florida? A) 45 hours B) 60 hours C) 63 hours D) 72 hours Correct Answer: C) 63 hours Explanation: An applicant for a sales associate license must complete a FREC- approved 63-hour pre-licensing course prior to sitting for the state exam.
- The "Florida Power of Attorney Act" is relevant to real estate because:
A)It allows brokers to sign contracts for clients B) It governs the use of power of attorney documents in real estate transactions, requiring specific wording and recordation C) It gives attorneys power over brokers D) It is only for medical decisions Correct Answer: B) It governs the use of power of attorney documents in real estate transactions, requiring specific wording and recordation Explanation: FS 709.2122 contains strict requirements for a power of attorney to be used in a real estate transaction, including that it must be recorded along with the deed or mortgage.
- A "broker's price opinion" (BPO): A)Is the same as an appraisal B) Can be performed by any licensee for a fee without restrictions C) Is an estimate of price for listing purposes or for a lender, but cannot be called an "appraisal" D) Requires an appraiser's license Correct Answer: C) Is an estimate of price for listing purposes or for a lender, but cannot be called an "appraisal" Explanation: Licensees can provide BPOs, but they must be careful not to perform an appraisal unless licensed as an appraiser. BPOs are often used by lenders for loss mitigation.
- The "Florida Condominium Act" is found in: A)Chapter 718, F.S. B) Chapter 719, F.S. (Cooperative Act) C) Chapter 720, F.S. (HOA Act)
- The statute of frauds in Florida requires that contracts for the sale of real estate be: A)Verbal B) In writing to be enforceable C) Notarized D) Recorded Correct Answer: B) In writing to be enforceable Explanation: To be enforceable, a contract for the sale of real property must be in writing and signed by the party against whom enforcement is sought (FS 725.01).
- Which of the following must be disclosed to a prospective buyer of residential property? A)The seller's motivation for selling B) The fact that a property was the site of a homicide, suicide, or death (stigmatized property) C) Only material defects in the physical condition of the property D) The racial composition of the neighborhood Correct Answer: C) Only material defects in the physical condition of the property Explanation: Florida law does not require disclosure of deaths on the property (stigmatized property) or seller motivation. The duty is to disclose known facts that materially affect the property's value that are not readily observable (FS 475.278).
- A broker's commission is generally earned when: A)The listing agreement is signed
B) A ready, willing, and able buyer is produced according to the listing terms C) The sale closes and funds are disbursed D) The contract is executed Correct Answer: B) A ready, willing, and able buyer is produced according to the listing terms Explanation: Unless the listing agreement specifies otherwise (like "upon closing"), the broker typically earns the commission upon producing a buyer ready, willing, and able to purchase on the seller's terms, even if the seller later backs out.
- The "Homeowners' Association Act" governing mandatory homeowners' associations is: A)Chapter 718, F.S. B) Chapter 719, F.S. C) Chapter 720, F.S. D) Chapter 61B, F.A.C. Correct Answer: C) Chapter 720, F.S. Explanation: This statute applies to residential communities with mandatory membership associations (not condos or co-ops). It requires specific disclosures to buyers.
- An "escrow disbursement order" (EDO) may be issued by FREC when: A)A commission dispute arises B) There is a dispute over escrow funds that the broker cannot resolve C) A licensee commits fraud D) A contract is breached
Explanation: The UCC (Chapter 679, F.S.) deals with secured transactions for personal property. It can come into play if items attached to the property (like a fancy chandelier) are subject to a separate financing agreement.
- A "quitclaim deed" provides: A)The highest level of warranty of title B) Only whatever interest the grantor has, with no warranties C) A guarantee against liens D) Title insurance Correct Answer: B) Only whatever interest the grantor has, with no warranties Explanation: It releases any claim the grantor might have, but makes no promises about the quality or extent of that claim. Often used between family members or to clear title defects.
- The "doctrine of merger" states that: A)Two companies can merge B) Upon closing, the sales contract merges into the deed, and contract terms are extinguished unless they are expressly included in the deed C) Estates can be merged D) Licenses can be merged Correct Answer: B) Upon closing, the sales contract merges into the deed, and contract terms are extinguished unless they are expressly included in the deed Explanation: This legal doctrine means that once the deed is delivered and accepted, the contract is generally considered fulfilled and its separate terms are no longer enforceable, except for those that are collateral to the transfer of title.
- The "Florida Building Code" establishes:
A)Property tax rates B) Minimum design and construction standards for buildings C) Real estate commission rates D) Licensing requirements Correct Answer: B) Minimum design and construction standards for buildings Explanation: Administered by the Florida Building Commission, it is crucial for determining if a property is built to code, which affects insurability and value.
- A "lis pendens" is: A)A lien on the property B) A notice filed in the public records indicating a lawsuit has been filed that affects the title to the property C) A type of deed D) A mortgage document Correct Answer: B) A notice filed in the public records indicating a lawsuit has been filed that affects the title to the property Explanation: It puts potential buyers/lenders on notice that there is a legal claim against the property. Title cannot be cleared until the lawsuit is resolved.
- The "Americans with Disabilities Act" (ADA) Title III requires: A)All residential homes to be accessible B) Public accommodations and commercial facilities to be accessible C) Real estate offices to hire disabled persons D) Disclosure of disabilities in transactions Correct Answer: B) Public accommodations and commercial facilities to be accessible
A)Free from any doubt or defect that could expose the buyer to litigation B) The cheapest title available C) Only insurable D) Subject to known liens Correct Answer: A) Free from any doubt or defect that could expose the buyer to litigation Explanation: A buyer is typically entitled to marketable title, meaning it is free from unreasonable risk of litigation over ownership. This is a key concept in contract law and title insurance.
- The "Florida Electronic Transaction Act" (Chapter 668, F.S.): A)Prohibits electronic signatures B) Gives legal effect to electronic signatures and records, facilitating e-contracts in real estate C) Only applies to emails D) Is superseded by federal law Correct Answer: B) Gives legal effect to electronic signatures and records, facilitating e-contracts in real estate Explanation: Along with the federal ESIGN Act, this law allows contracts and signatures to be created and stored electronically, which is standard practice in modern real estate.
- A "zoning variance" is: A)A change to the zoning map B) A temporary use permit C) A waiver from specific zoning requirements granted due to hardship
D) The same as a zoning change Correct Answer: C) A waiver from specific zoning requirements granted due to hardship Explanation: Granted by a local zoning board, it allows a property owner to deviate from certain zoning rules (like setbacks) if strict compliance would cause practical difficulties or unnecessary hardship.
- "Ad valorem" taxes are based on: A)The value of the property B) The income of the owner C) The square footage D) A fixed rate Correct Answer: A) The value of the property Explanation: These are property taxes levied by county and municipal governments. The tax rate (millage) is applied to the assessed value of the property.
- The "Florida Fair Housing Act" (FS 760) prohibits discrimination based on all of the following EXCEPT: A)Race B) Familial status C) Sexual orientation (state law) D) Source of income Correct Answer: D) Source of income Explanation: Florida law includes the federal protected classes (race, color, religion, sex, national origin, disability, familial status) and adds pregnancy and marital status. Sexual orientation is not explicitly protected under Florida's fair
