Font size
WorksheetsFlorida Real Estate License Law Quiz
Total questions: 100
Worksheet time: 50mins
The Florida Real Estate Commission (FREC) is primarily responsible for:
Enforcing local zoning ordinances
Administering and enforcing Florida real estate license law
Setting mortgage interest rates
Recording deeds and mortgages
How many members of FREC must be licensed real estate brokers who have held an active license for at least 5 years?
2
4
5
7
A Florida sales associate’s license must be renewed:
Every year
Every 18 months
Every 2 years
Every 3 years
Which of the following is required for initial licensure as a Florida sales associate?
U.S. citizenship
High school diploma or equivalent
Florida residency
Two years’ experience as an unlicensed assistant
If a licensee does not renew their license by the expiration date, the license:
Automatically becomes void
Becomes involuntary inactive
Becomes suspended for one year
Converts to a broker license
Which agency enforces the real estate license law under Chapter 475, F.S.?
HUD
DBPR
CFPB
EPA
A licensee is found guilty of a minor violation and receives a notice of non-compliance. How long do they have to correct the issue?
7 days
10 days
15 days
30 days
Which of the following activities requires a Florida real estate license?
Paying a referral fee to a neighbor
Selling one’s own property
Managing an apartment complex for salary only
Listing another person’s property for a fee
The “Caveat Emptor” doctrine historically meant:
The seller must disclose all defects
Buyer beware
Agent owes loyalty to both parties
Lender must disclose loan terms
The maximum administrative fine FREC may impose per violation of license law is:
$1,000
$2,500
$5,000
$10,000
If a licensee’s check for license renewal is returned for insufficient funds, FREC may:
Revoke the license automatically
Suspend the license until funds are paid
Impose criminal penalties only
Do nothing
A broker’s license is suspended. What happens to the broker’s sales associates?
They may continue to practice as usual
Their licenses become involuntary inactive
Their licenses are revoked
They automatically become brokers
A licensee who moves must notify the DBPR of their new mailing address within:
10 days
15 days
30 days
60 days
A sales associate may hold an active license under:
Only one broker at a time
Two brokers at a time
A broker and an owner-developer simultaneously
Any number of brokers
FREC’s authority to create rules and regulations that interpret the law is known as:
Quasi-legislative power
Quasi-judicial power
Executive power
Criminal power
FREC’s authority to impose disciplinary actions is an example of:
Quasi-legislative power
Quasi-judicial power
Executive power
Ministerial power
Which of the following is **not** grounds for license suspension or revocation?
Commingling escrow funds
Misrepresentation in advertising
Having a personal bankruptcy
Failure to account for and deliver funds
The Real Estate Recovery Fund is intended to:
Compensate licensees for advertising expenses
Reimburse consumers harmed by a licensee’s actions
Guarantee loan payments
Pay FREC members’ salaries
To be reimbursed from the Real Estate Recovery Fund, the claimant must generally:
Be a licensed broker
Have obtained a civil judgment against the licensee
Live in Florida
Have received prior approval from FREC
Which statement is TRUE regarding unlicensed assistants in Florida?
They may explain contract terms to buyers
They may show properties independently
They may write ads under supervision
They may accept commissions directly from customers
A real estate sales associate owes all of the following duties to a customer in a no-brokerage relationship except:
Deal honestly and fairly
Use skill, care, and diligence
Account for all funds
Present all offers
In a single agency relationship, the broker owes the principal:
Limited confidentiality
Loyalty and full confidentiality
No confidentiality
Obedience only
Designated sales associates in Florida are permitted only:
For residential transactions
For commercial transactions
When both parties waive representation
When the broker has more than one office
Which brokerage relationship notice is not required for residential transactions of 4 or fewer units?
Single agent notice
No brokerage relationship notice
Transition to transaction broker notice
Transaction broker notice (it’s presumed)
A transaction broker in Florida owes all of these duties except:
Limited confidentiality
Presenting all offers
Obedience and full loyalty
Accounting for all funds
When must a brokerage relationship disclosure (for single agency or no brokerage) be provided?
At closing
Before or at the time of entering into a listing agreement
Only if the buyer requests it
Only for nonresidential transactions
A broker receives an earnest money deposit and places it into the operating account to pay bills. This is:
Conversion
Commingling
Legal if less than $1,000
Legal with permission of FREC
How long does a broker have to deposit escrow funds into the escrow account?
Immediately
By the end of the next business day
By the end of the third business day
Within one week
A broker has a good-faith doubt about who is entitled to an earnest money deposit. The broker must notify FREC within:
5 business days
10 business days
15 business days
30 business days
A “good-faith doubt” exists when:
The broker misplaces funds
The parties are in disagreement over escrow disbursement
The buyer’s check bounces
The seller withdraws the listing
A rental information list is sold to a tenant for a fee. If the information is incorrect, the tenant may demand a refund of:
25% within 60 days
50% within 30 days
75% within 30 days
100% within 30 days
A sales associate receives a bonus directly from a grateful buyer. This is:
Legal if disclosed to the broker
Legal if under $1,000
A violation of FREC rules
Legal with written permission from the buyer
A broker opens a branch office in another city. To legally operate from this office, the broker must:
Notify FREC and register the branch office
Obtain a separate broker license
Use a different brokerage name
Hire a second broker
An office sign for a brokerage must include:
The broker’s legal name and trade name only
The broker’s trade name and phone number
The broker’s trade name, legal name, and “licensed real estate broker” or “Lic. Real Estate Broker”
Only the company logo
A sales associate forms a professional corporation for tax reasons. For license registration, the associate must:
Use the corporation’s name on the license
Use their legal personal name on the license
Use any name approved by FREC
Use the broker’s name
A broker’s escrow account may be held:
Only in a Florida bank or savings association
Only with the clerk of court
Only in an attorney’s trust account
In a Florida bank, savings association, or credit union
A broker uses an attorney’s trust account to hold escrow funds. The broker must:
Never reconcile the account
Ensure the attorney is a FREC member
Maintain records of all deposits and withdrawals
Place operating funds in the same account
A broker may legally keep how much of personal funds in a sales escrow account to cover bank fees?
$0
Up to $1,000
Up to $500
Up to $2,000
A broker with a property management escrow account may keep personal funds up to:
$1,000
$2,000
$3,000
$5,000
If a broker fails to reconcile an escrow account monthly and a shortage occurs, the broker may face:
No consequence
License suspension or revocation
Only a written warning
Civil penalties but no discipline
The bundle of rights in real property includes:
Possession, disposition, exclusion, and mortgage
Possession, control, enjoyment, exclusion, and disposition
Use, inheritance, foreclosure, and abandonment
Lien, mortgage, deed, and title
Which estate includes ownership for an indefinite period and is inheritable?
Tenancy at will
Life estate
Fee simple estate
Tenancy at sufferance
Two unmarried persons purchase property together with right of survivorship. They hold title as:
Tenants in common
Tenants by the entireties
Joint tenants
Life tenants
Which type of ownership is available only to married couples in Florida?
Tenancy in common
Tenants by the entireties
Joint tenants
Life tenants
Homestead property in Florida offers:
Protection from all creditors
Some protection from forced sale by certain creditors
No creditor protection
Federal tax exemption
A husband and wife own homestead property. The husband dies intestate (without a will) and is survived by a minor child. The wife receives:
Full fee simple ownership
A life estate, with the remainder to the child
One-half interest; child gets one-half
No interest
Which of the following is a government limitation on property rights?
Mortgage
Easement
Lien
Police power
The right of the government to take private property for public use is:
Escheat
Eminent domain
Police power
Zoning
When a person dies without a will and no heirs can be found, the property transfers to the state by:
Eminent domain
Escheat
Adverse possession
Dedication
A deed must be signed by the grantor and:
Recorded to be valid
Delivered and accepted
Notarized
Witnessed by two people
Which type of deed offers the greatest protection to the grantee?
Quitclaim deed
Special warranty deed
General warranty deed
Bargain and sale deed
A quitclaim deed is often used to:
Provide full warranties
Quiet a cloud on title
Transfer government property
Guarantee clear title
An encumbrance is:
A benefit to the property
An interest or claim by another that may reduce value
A deed restriction only
A form of legal description
A voluntary lien is:
A property tax lien
A mechanic’s lien
A mortgage lien
A judgment lien
A superior lien in Florida is:
Mortgage lien
Judgment lien
Property tax lien
Vendor’s lien
A legal description that uses monuments, distances, and directions is:
Lot and block
Metes and bounds
Government survey
Benchmark method
The NW¼ of the NE¼ of Section 16 contains how many acres?
10
20
40
80
A developer subdivides a tract into streets, lots, and blocks; this is recorded as:
Metes and bounds
Subdivision plat map
Government survey
Escheat map
Restrictive covenants in a subdivision are usually enforced by:
FREC
Local courts
DBPR
The U.S. Supreme Court
A latent defect in a property is:
Obvious and easily seen
Hidden and not readily observable
A title defect only
A zoning issue
A contract that has all essential elements and is legally binding is:
Void
Voidable
Unenforceable
Valid
Which is not an essential element of a real estate contract?
Offer and acceptance
Consideration
Written form in every case
Legal purpose
An oral lease agreement for 10 months is:
Void
Voidable
Enforceable
Unenforceable under the Statute of Frauds
The transfer of contractual rights and obligations to another party is:
Assignment
Novation
Rescission
Breach
The substitution of a new party and/or new contract, releasing the original party, is:
Assignment
Novation
Rescission
Forbearance
Which clause in a mortgage allows the lender to call the entire balance due upon default?
Defeasance clause
Acceleration clause
Alienation clause
Prepayment clause
A clause in a mortgage that prevents the borrower from transferring the property without lender approval is:
Acceleration clause
Alienation (due-on-sale) clause
Defeasance clause
Subordination clause
Which is the best definition of “equity” in real estate?
Loan balance minus property taxes
Property value minus mortgage debt
Mortgage interest minus principal
Assessed value minus loan balance
A borrower obtains a loan for 80% of a property’s value. The loan-to-value ratio (LTV) is:
10%
20%
80%
100%
A property sells for $300,000. The commission rate is 6%. How much is the total commission?
$18,000
$12,000
$9,000
$6,000
A sales associate is to receive 60% of the total commission. If the property sells for $250,000 at 5% and the broker keeps 40%, the associate’s share is:
$3,000
$4,500
$5,000
$7,500
Monthly rent is $2,400. The seller has received the full rent for the month, and closing is on the 10th of a 30-day month. How much rent should be credited to the buyer?
$160
$800
$1,600
$2,400
A property is assessed at $200,000. The tax rate is 16 mills. What is the annual property tax?
$2,000
$3,200
$3,600
$4,000
A borrower obtains a $180,000 loan at 5% interest, interest-only for the first year. What is the annual interest?
$7,000
$8,000
$9,000
$9,500
A seller wants to net $190,000 after paying 6% commission and $2,000 in closing costs. What should the listing price be (rounded to the nearest dollar)?
$200,000
$204,255
$204,468
$205,319
A property’s market value is $350,000. If the loan-to-value ratio is 90%, what is the loan amount?
$280,000
$300,000
$315,000
$320,000
A building earns annual potential gross income of $120,000, has 5% vacancy and $30,000 in operating expenses. What is the net operating income (NOI)?
$78,000
$84,000
$84,500
$90,000
Using the income approach, if the NOI is $60,000 and the capitalization rate is 8%, what is the estimated value?
$480,000
$600,000
$650,000
$750,000
Documentary stamp tax on the deed in Florida is:
$.35 per $100 of consideration (most counties)
$.70 per $100 of consideration
$.35 per $1,000 of consideration
$.70 per $1,000 of consideration
Intangible tax on a new mortgage in Florida is:
$.002 per $1 of new mortgage debt
$.002 per $100 of new mortgage debt
$.002 per $1,000 of new mortgage debt
$.002 per $10,000 of new mortgage debt
The principle of substitution says:
Property value is based on reproduction cost
A buyer will not pay more for a property than for a substitute with similar utility
Property value is determined by the cost of land and improvements
A property’s value is based on its highest and best use
The principle of conformity states that:
Property achieves maximum value when it is different
Values are highest when properties are similar in style and use
Overimprovement always increases value
Zoning has no effect on value
External obsolescence is:
Caused by physical wear and tear
Located within the property boundaries
Caused by factors outside the property
Always curable
The sales comparison approach is most appropriate for:
Special-purpose properties
Single-family homes in an active market
New construction only
Land only
Functional obsolescence is:
Loss of value from outdated design or features
Physical deterioration
Caused by external forces
Normal depreciation
The Civil Rights Act of 1968 (Fair Housing Act) prohibits discrimination based on:
Race only
Race, color, religion, national origin, sex, handicap, and familial status
Age and marital status
Occupation and income level
Steering is defined as:
Directing buyers to or away from neighborhoods based on a protected class
Setting different prices for different buyers
Refusing to show listings to certain buyers
Advertising that indicates a preference
Blockbusting is:
Denying loans in certain neighborhoods
Persuading owners to sell because minorities are moving in
Charging higher commissions to certain sellers
Refusing to advertise homes to minorities
Redlining is:
A fair housing violation in advertising
Directing buyers to specific neighborhoods
Denying loans in certain areas regardless of qualifications
Refusing to sell to families with children
Which type of property is exempt from some provisions of the Fair Housing Act (if certain conditions are met)?
Single-family home sold by owner without broker and limited advertising
All rental properties
Commercial office buildings
Government-owned housing
A landlord refuses to allow a disabled tenant to install grab bars in the bathroom at the tenant’s expense. This is:
Legal, because alterations are not allowed
Legal, if mentioned in the lease
A potential fair housing violation
Permitted under ADA only
An ad that reads “Perfect for single professionals, no children” is:
Acceptable
Acceptable if approved by the broker
Potentially discriminatory against familial status
Only a violation if someone complains
Real property is best described as:
Land only
Land plus improvements and legal rights
Personal property
Fixtures only
Personal property is also known as:
Realty
Chattel
Fixtures
Improvements
A fixture is:
Always removable
Personal property that is permanently attached and becomes real property
A type of encumbrance
A form of legal description
A time-share estate usually involves:
Ownership of personal property only
A right-to-use lease
Fee simple interest with a right to occupy for a specific time period each year
Only commercial properties
A planned unit development (PUD) typically features:
No common areas
Mixed uses such as residential, commercial, and recreational
Only high-density housing
Government ownership
A comprehensive plan is:
A short-term zoning variance
A local government’s long-range guide for growth and land use
A developer’s private plan
An HOA rulebook
Zoning that allows one specific property to continue its existing use when the zoning changes is:
Variance
Special exception
Nonconforming use
Spot zoning
A variance is:
Permission to deviate from zoning requirements for a specific property
A complete change in zoning classification
A temporary use permit
A change in the comprehensive plan
