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FREC PRACTICE PERFORMANCE OPTIMIZER
TOOLKIT: HIGH-YIELD SOLVED QUESTIONS
AND FINAL EVALUATION TRANSCRIPT FOR
OPERATIONAL READINESS SUCCESS 2026
⫸ 2. A real estate appraiser's fee for professional service is based on which of the following? a. A percentage of the property's gross income. b. A percentage of the fair market value of the property. c. The time and difficulty of the appraisal. d. A percentage of the property's sales price. Answer: C ⫸ 3. Which of the following best describes the real estate brokerage business? a. Service business b. Simple business c. Business with few opportunities available d. Construction business Answer: A ⫸ 4. All of the following are responsibilities of a property manager, EXCEPT: a. Renting property for an absentee owner. b. Collecting rent. c. Overseeing maintenance.
d. Preparing leases Answer: D ⫸ 5. What does the term "farming" refer to in real estate? a. Specializing in one geographic area b. Working in a cooperative manner c. Specializing in agricultural properties d. Specializing in the sales of orange groves or cattle farms Answer: A ⫸ 6. Which insurance policies can a real estate licensee offer to the public without additional state licensing? a. Flood insurance b. Fire insurance c. Renter's insurance d. None of the above Answer: D ⫸ 7. What is the purpose of the National Association of REALTORS? a. Preserve the right of individuals to own real property through an exchange of information. b. Organize antigovernment activities. c. Promote unethical practice of real estate professionals. d. Promote unethical practice of real estate professionals. Answer: A ⫸ 8. What does the designation of REALTOR® signify? a. Anyone in possession of a real estate license is a REALTOR®
a. Marketing b. Valuation c. Property transfer d. Accounting Answer: D ⫸ 12. Which service provided by real estate licensees requires the most experience and knowledge? a. Property management b. Counseling c. Appraising d. Agricultural sales Answer: B ⫸ 13. An appraiser who is registered, licensed, or certified under F.S. 475 Part II, must be utilized in which of the following? a. All appraisals b. The appraisal of residential property c. The appraisal of nonresidential property d. Federally-related transactions Answer: D ⫸ 14. When a developer completes construction of a new subdivision, all streets, electric, water, and sewer installation are finished and deeded to the city or county. What is this process called? a. A quit claim deed b. An easement c. Dedication
d. Annexation Answer: C ⫸ 15. Which of the following assignments would be acceptable for a Florida real estate licensee who does not represent themselves as an appraiser, and follows the uniform standards of professional appraisal practice (USPAP)? a. An assignment to give an estimate of value for an attorney in a divorce case. b. An assignment to appraise a single family home for a VA loan. c. An assignment to value a condominium for an FHA loan. d. An assignment to appraise a time share unit for which a loan is being obtained from a Federally insured institution. Answer: A ⫸ 16. The Florida Real Estate Commission was first created in what year? a. 1932 b. 1925 c. 1923 d. 1919 Answer: B ⫸ 17. A sales associate failed to complete the required post-license education prior to their renewal deadline. What is the status of the sales associate's license? a. Revoked b. Suspended c. Involuntarily inactive
c. The Department is not required to inform the applicant of the reason for the denial d. The applicant must be notified in writing of the reason for the denial and advised of the right to request a formal hearing Answer: D ⫸ 21. A licensed sales associate wishes to work for Broker A during the week and works in a different town with Broker B on the weekend. Which statement best describes this situation? a. This is legal if the sales associate has a group license. b. This is legal if the brokers have multiple licenses. c. This is a violation of FS 475. d. This is legal, provided that the sales associate is an independent contractor, not an employee of the brokers. Answer: C ⫸ 22. An active Florida licensee decides to move to North Carolina, but wishes to keep her Florida license active and continue to practice real estate in Florida. Which of the following best describes this situation? a. The licensee must be located in Florida to sell real estate in Florida. b. The licensee must be a broker to sell real estate in Florida if she is located outside of Florida. c. The licensee must obtain a North Carolina real estate license. d. The licensee must notify the Department of her change of address, and continue to comply with all Florida regulations. Answer: D ⫸ 23. Which of the following statements is correct regarding a broker's authority to act on behalf of the principal?
a. A broker can refuse offers on behalf of the principal. b. A broker can buy the listed property without consent of the principal. c. A broker must follow all legal instructions of the principal or withdraw. d. A broker must ignore the instructions of a principal when the instructions are not in the best interests of the principal. Answer: C ⫸ 24. Broker Tom sold a property which was listed with broker Alice. Tom was unable to attend the closing, so Alice collected the entire commission. Alice refused to pay Tom his share of the commission. What could Alice be charged with? a. Failure to account b. Collecting an overage c. Commingling d. Fraud Answer: A ⫸ 25. A real estate licensee who is working with a seller receives a call from another broker stating that, "I am representing a buyer as the buyer's broker. I'm standing in front of one of your listed properties with my buyer. "What can the licensee infer from this conversation? a. The licensee is required to collect the No Brokerage Relationship Disclosure prior to giving any information to the broker. b. The agent who is calling is in a single agency relationship. c. The buyer's broker must first contact the listing broker for permission to enter into this relationship.
⫸ 29. A real estate brokerage firm advertises a listed property. Which requirement is correct? a. The name of at least one sales associate must be included in the ad b. The name of the brokerage must be included in the ad c. The ad may not be prepared by sales associate d. The names of sales associate may not be included in the ad Answer: B ⫸ 30. A buyer drops off an escrow check on Tuesday. To avoid any trouble with FREC, the broker must deposit the check by close of business on which day? a. The following Monday b. Wednesday c. Thursday d. Friday Answer: D ⫸ 31. There is a dispute over an escrow deposit. The parties agree to have a 3rd party hear both sides and make the final decision. What settlement (escape) procedure is being used to settle the dispute? a. Mediation b. Arbitration c. Interpleader d. Escrow disbursement order Answer: B
⫸ 32. What is the purpose of the FREC disciplinary guidelines? a. To extend the meaning of the law b. To specify and implement the law c. To give new meaning to the law d. To give licensees notice of the range of penalties that normally will be imposed for violation of a law or rule Answer: D ⫸ 33. The range of penalties that may be imposed on a licensee by the Commission for violation of law or rules includes which of the following? a. Denial, reprimand, fine, probation, suspension and revocation b. Imprisonment only c. A fine and imprisonment only d. A fine, reprimand, denial, suspension, revocation and imprisonment Answer: A ⫸ 34. What must an unlicensed individual do when ordered to appear before the DBPR? a. Nothing; the DBPR has no jurisdiction over unlicensed persons b. Appear c. File an appeal d. Bring an attorney Answer: B ⫸ 35. When asked about the size of a home, the sales associate quoted the home as containing 5,300 square feet of living area. In
⫸ 38. Under the Florida Residential Landlord and Tenant Act, a landlord is required to do all of the following, EXCEPT: a. Bargain in good faith b. Provide maintenance sufficient to comply with code c. Notify tenants within 30 days of the manner in which security deposits and advance rents are being held d. Deposit advance rent and security deposits in an interest-bearing account Answer: D ⫸ 39. A five-year lease of a 10,000-square-foot warehouse prohibits assignment. After two years the tenant is unable to continue with the full rent payments and arranges with another tenant to take over one- half of the space and pay one-half of the rent for the remaining term. What is this arrangement called? a. A violation of the terms of the lease b. A sublease c. A violation of Statute 83 d. Illegal. Answer: B ⫸ 40. What is the maximum fine that may be imposed for a first time violation of the Florida Fair Housing Act? a. $5, b. $10, c. $25, d. $50,000 Answer: B
⫸ 41. All of the following are correct regarding the Americans With Disabilities Act (ADA), EXCEPT? a. Owners must make all accessibility modifications with no regard to the cost of improvement. b. ADA is intended to eliminate barriers that limit access to persons with disabilities. c. ADA mandates certain design specifications for accessibility. Owners of property open to the public may be required to remove barriers to accessibility Answer: A ⫸ 42. Often a commercial lease requires the tenant to pay the rent, plus also separately pay taxes, insurance, and maintenance. This is know as a: a. Net Lease b. Gross Lease c. Percentage Lease d. Graduated Payment Lease Answer: A ⫸ 43. All of the following estates include legal title to real property, EXCEPT: a. Tenancy for years b. Fee simple estate c. Life estate d. Tenancy by the entireties Answer: A
a. Life Tenancy b. Joint Tenancy c. Tenancy by the Entireties d. Tenancy in Common Answer: C ⫸ 48. Which instrument transfers title from one individual to another? a. Contract b. Deed c. Warranty d. Covenant Answer: B ⫸ 49. What does the term title refer to in real estate? a. Any instrument that guarantees legal rights b. A legal instrument that transfers property from one party to another c. Ownership d. A piece of bond paper Answer: C ⫸ 50. Which clause in a deed states the interest that is being conveyed? a. Habendum b. Reddendum c. Release d. Seizing Answer: A
⫸ 50. Which of the following is required to obtain title by adverse possession? a. Possession of the property for one month b. Paying taxes on the property for two years c. Notorious, open, hostile, adverse, and exclusive possession of the property for seven of more consecutive years d. Open and continuous use for 20 or more years Answer: C ⫸ 52. What type of lease, that is often a commercial lease, requires the tenant to pay the rent, plus also separately pay taxes, insurance, and maintenance? a. Net Lease b. Gross Lease c. Percentage Lease d. Graduated Payment Lease Answer: A ⫸ 53. Which condition correctly describes the requirement for a lease longer than one year to be enforceable? a. It is oral and witnessed by two people. b. The Statute of Frauds does not apply to leases. c. It is in writing, signed by the landlord, and witnessed by two persons. d. Witnesses are not required. Answer: C
b. A lease-option c. A violation of the Statute of Frauds d. An installment contract, contract for deed, or land contract Answer: D ⫸ 58. What is the term used to describe the consideration given by a buyer to indicate serious intent to buy a property? a. An earnest money deposit b. A check deposit c. Legal tender d. A boot deposit Answer: A ⫸ 59. Which document is a real estate broker NOT legally allowed to prepare? a. Purchase and sale contract b. Listing c. Lease d. Option Answer: C ⫸ 60. When the court determines that a contract existed due to the actions of the parties, the contract is referred to as: a. a formal contract. b. an oral contract. c. a parol contract. d. an implied contract. Answer: D
⫸ 61. Complete the statement. An option contract is a unilateral contract, binding upon the: a. buyer. b. grantee. c. optionor. d. optionee. Answer: C ⫸ 62. Which of the following list of actions contain ways that a contract could be terminated? a. Performance, Rejection of the offer, or Renunciation b. Breach, Performance, or Lapse of time c. Assignment, Abandonment, or Breach Consideration, Performance, or Revocation Answer: B ⫸ 63. Which legal instrument evidences the debt and states the interest rate, term, payment requirement, and other information related to the loan? a. Promissory note b. Contract c. Lien d. Mortgage Answer: A ⫸ 2. What is the function of a mortgage? a. It conveys title to real property.
