I85PREP
⌘ K
FL RE Broker study materials
FL RE Broker study resources

FL RE Broker practice questions

One question at a time. Build your FL RE Broker understanding.

First 50 of 200 questions. Each one lists the choices, the correct answer, and an explanation. The checker at the top of this page saves progress in this browser when it is available.

Continue in the practice tool above to load more questions, 50 at a time.

Question 1Licensing and Regulation (license law, DBPR authority, FREC rules, broker registration, business entities, advertising, escrow and trust accounts, recordkeeping, penalties and disciplinary process)

Under Florida law, which individual is required to hold a Florida real estate broker license before performing brokerage services for another person for compensation?

  1. A person who rents a single-family home on behalf of the owner for a monthly fee Correct answer.
  2. A person who negotiates the sale of a business that includes real property and goodwill
  3. A person who appraises residential property for a lending institution
  4. A person who manages a condominium association's common elements under a management contract

Explanation

Chapter 475, Florida Statutes, requires a broker license for anyone who, for compensation, appraises, auctions, sells, exchanges, buys, rents, or offers to do any of these acts regarding real property of another. Renting another's home for a fee is classic brokerage activity, so a license is required. The other activities described fall under separate regulatory schemes or exemptions.

Question 2Licensing and Regulation (license law, DBPR authority, FREC rules, broker registration, business entities, advertising, escrow and trust accounts, recordkeeping, penalties and disciplinary process)

Which entity has the statutory authority to adopt rules that implement the real estate license law and to determine disciplinary penalties against licensees?

  1. The Florida Real Estate Commission Correct answer.
  2. The local board of county commissioners where the property is located
  3. The Florida Department of Financial Services
  4. The Division of Real Estate within the Department of Business and Professional Regulation

Explanation

The Florida Real Estate Commission is the policymaking and quasi-judicial body that adopts rules and imposes discipline. The Division of Real Estate is the administrative arm that investigates complaints and prosecutes cases but does not itself adopt rules or impose penalties.

Question 3Licensing and Regulation (license law, DBPR authority, FREC rules, broker registration, business entities, advertising, escrow and trust accounts, recordkeeping, penalties and disciplinary process)

A sales associate wants to change from one brokerage firm to another. Which step satisfies the registration requirement?

  1. Obtain the new broker's written sponsorship and have the new broker notify the Division so the registration is transferred Correct answer.
  2. Notify the former broker in writing and begin work for the new broker immediately
  3. File a new sales associate license application with the Division and pay the initial licensing fee
  4. Wait until the current license expires and then apply as a new applicant with the new broker

Explanation

A sales associate must be registered under a licensed broker, and a change of employer requires the new broker to notify the Division so the registration can be updated. The associate cannot lawfully act as a broker's associate without that sponsorship in place.

Question 4Licensing and Regulation (license law, DBPR authority, FREC rules, broker registration, business entities, advertising, escrow and trust accounts, recordkeeping, penalties and disciplinary process)

Which business entity form may be registered as a real estate broker in Florida?

  1. A limited liability company owned entirely by out-of-state investors with no Florida licensee
  2. A corporation whose designated broker and qualifying employees meet the licensing requirements Correct answer.
  3. A general partnership in which no member holds a broker license
  4. A sole proprietorship operated by an unlicensed manager

Explanation

Florida allows broker registration by corporations, partnerships, limited liability companies, and similar entities, but each must have a designated broker and qualifying individuals who hold active licenses. The entity's registration depends on licensed personnel, not merely on its business form.

Question 5Licensing and Regulation (license law, DBPR authority, FREC rules, broker registration, business entities, advertising, escrow and trust accounts, recordkeeping, penalties and disciplinary process)

A brokerage advertises a listing on a social media platform. Which statement best describes the required disclosure?

  1. Only the sales associate's personal name is needed because social media is not regulated advertising
  2. Disclosure is required only if the property is priced above one million dollars
  3. The advertisement must include the registered name of the brokerage firm as registered with the Division Correct answer.
  4. Advertising on social media is prohibited for licensees

Explanation

FREC advertising rules require that advertisements by licensees be truthful and identify the brokerage firm by its registered name. The firm's name must appear so the public knows which brokerage is responsible for the advertisement.

Question 6Licensing and Regulation (license law, DBPR authority, FREC rules, broker registration, business entities, advertising, escrow and trust accounts, recordkeeping, penalties and disciplinary process)

A broker receives a $5,000 earnest money deposit on a sales contract. Under Florida rules, what is the deadline for depositing the funds into an escrow account?

  1. Immediately upon receipt, without exception
  2. By the end of the calendar month in which the contract is signed
  3. Within one business day after receipt
  4. Within three business days after receipt, unless the contract provides for a different depository Correct answer.

Explanation

Florida rules require escrow funds to be deposited within three business days of receipt, unless the contract specifies a different depository or the purchaser and broker agree to a different procedure. The rule balances prompt safeguarding with practical banking timelines.

Question 7Licensing and Regulation (license law, DBPR authority, FREC rules, broker registration, business entities, advertising, escrow and trust accounts, recordkeeping, penalties and disciplinary process)

A broker holds a deposit in an escrow account that earns interest. Which statement describes a permissible arrangement under Florida rules?

  1. The broker may use escrow funds temporarily for office expenses and repay them before closing
  2. The broker may place the funds in a separate interest-bearing escrow account if the contract or written agreement so provides Correct answer.
  3. The broker may deposit escrow funds into the firm's general operating account as long as records are kept
  4. The broker may keep any earned interest as additional compensation without disclosure

Explanation

Escrow funds may be held in a separate interest-bearing escrow account when the contract or a written agreement provides for it. The key requirement is that the funds remain segregated and the parties' agreement governs disposition of interest.

Question 8Licensing and Regulation (license law, DBPR authority, FREC rules, broker registration, business entities, advertising, escrow and trust accounts, recordkeeping, penalties and disciplinary process)

Which record must a Florida real estate broker keep for at least five years?

  1. Copies of personal tax returns of the sales associates
  2. Marketing brochures distributed at open houses
  3. Escrow account records, including deposit slips, check stubs, and monthly reconciliations Correct answer.
  4. Personal correspondence unrelated to any transaction

Explanation

Brokers must maintain escrow records, including deposit slips, check stubs, ledgers, and monthly reconciliations, for at least five years. These records allow the Division to verify compliance with trust account requirements.

Question 9Licensing and Regulation (license law, DBPR authority, FREC rules, broker registration, business entities, advertising, escrow and trust accounts, recordkeeping, penalties and disciplinary process)

A sales associate signs a listing agreement with a seller. Who is legally the party to that listing agreement?

  1. The sales associate individually
  2. The brokerage firm, with the sales associate acting on its behalf Correct answer.
  3. The seller and the sales associate jointly
  4. The Florida Real Estate Commission as supervising party

Explanation

A sales associate acts only as an agent of the broker, so contracts for brokerage services are between the client and the brokerage firm. The associate may sign on the broker's behalf but does not become a party to the agreement.

Question 10Licensing and Regulation (license law, DBPR authority, FREC rules, broker registration, business entities, advertising, escrow and trust accounts, recordkeeping, penalties and disciplinary process)

A broker decides to close her brokerage and cease operations. What is required regarding the licenses registered under her?

  1. The broker must notify the Division and the sales associates must be given notice so they can transfer to another broker Correct answer.
  2. The broker must surrender all associates' licenses to the county clerk
  3. The broker may simply stop working and let the registrations lapse without notice
  4. The broker must transfer all associates automatically to the nearest brokerage firm

Explanation

When a broker terminates a brokerage, the broker must notify the Division, and associates must be notified so they can arrange new sponsorship. Associates cannot lawfully continue brokerage activity without an active registered broker.

Question 11Licensing and Regulation (license law, DBPR authority, FREC rules, broker registration, business entities, advertising, escrow and trust accounts, recordkeeping, penalties and disciplinary process)

A consumer files a complaint alleging that a licensee failed to disclose a known defect in a property. Which sequence reflects the disciplinary process?

  1. The broker alone decides whether discipline is imposed on the associate
  2. The Division investigates the complaint and, if warranted, a formal complaint is filed and heard by the Commission or an administrative law judge Correct answer.
  3. The local association of realtors imposes the penalty and reports it to the Division
  4. The Commission files a criminal charge, then the Division conducts a jury trial

Explanation

The Division investigates complaints, and if cause is found a formal complaint is filed; the matter may be heard by the Commission or referred to an administrative law judge, with the Commission imposing discipline. This is the administrative disciplinary framework under chapter 475.

Question 12Licensing and Regulation (license law, DBPR authority, FREC rules, broker registration, business entities, advertising, escrow and trust accounts, recordkeeping, penalties and disciplinary process)

A licensee is found to have made a false statement of a material fact in a transaction. Which outcome is within the Commission's authority?

  1. Cancel the recorded deed to the property
  2. Impose an administrative fine and suspend, revoke, or place the license on probation Correct answer.
  3. Order the licensee to serve jail time
  4. Award compensatory damages to the buyer

Explanation

The Commission may impose administrative fines and may suspend, revoke, or restrict a license for violations such as fraud or misrepresentation. It does not have criminal sentencing authority or jurisdiction to award civil damages or void deeds.

Question 13Licensing and Regulation (license law, DBPR authority, FREC rules, broker registration, business entities, advertising, escrow and trust accounts, recordkeeping, penalties and disciplinary process)

A broker is convicted of a felony involving moral turpitude. What is the effect on the license?

  1. The conviction is a ground for disciplinary action, which may include revocation or suspension Correct answer.
  2. No effect unless the felony occurred during a real estate transaction
  3. The broker may continue practicing if the victim is repaid
  4. The license is automatically reinstated after one year without any filing

Explanation

A conviction of a felony or of a crime involving moral turpitude is a ground for discipline under Florida law, and the Commission may suspend or revoke the license. Repayment or the timing of the offense does not erase the statutory ground.

Question 14Licensing and Regulation (license law, DBPR authority, FREC rules, broker registration, business entities, advertising, escrow and trust accounts, recordkeeping, penalties and disciplinary process)

A sales associate wishes to receive compensation directly from a buyer for brokerage services rather than through the broker. Which statement is correct?

  1. The associate may accept payment directly if the amount is under one thousand dollars
  2. The associate may accept payment directly if the buyer agrees in writing
  3. The associate may not accept compensation directly from a buyer; compensation must flow through the broker Correct answer.
  4. The associate may accept direct payment only for commercial property transactions

Explanation

Sales associates may be compensated only by their registered broker, not directly by clients. Any arrangement that routes compensation directly to the associate violates the licensing structure.

Question 15Licensing and Regulation (license law, DBPR authority, FREC rules, broker registration, business entities, advertising, escrow and trust accounts, recordkeeping, penalties and disciplinary process)

Which activity by an unlicensed person is permitted without a real estate license?

  1. Soliciting buyers for a builder in exchange for a referral fee
  2. Selling one's own home without using a licensee Correct answer.
  3. Providing a list of available rentals to a tenant for a flat fee
  4. Negotiating a lease on behalf of a landlord for a commission

Explanation

An owner may sell or rent his or her own property without a license because the licensing law governs brokerage for another. Activities performed for another person for compensation generally require licensure.

Question 16Licensing and Regulation (license law, DBPR authority, FREC rules, broker registration, business entities, advertising, escrow and trust accounts, recordkeeping, penalties and disciplinary process)

A broker's escrow account reconciliation reveals a shortage of $2,000 that the broker cannot explain. What is the broker's obligation?

  1. Wait until the next quarterly reconciliation to see if the shortage resolves itself
  2. Correct the shortage with personal funds and take no further action
  3. Close the escrow account and open a new one at another bank
  4. Report the shortage to the Division as required and take steps to correct the account Correct answer.

Explanation

An unexplained shortage in a trust account must be reported to the Division and corrected promptly. Concealing or ignoring a shortage can constitute a separate violation and grounds for discipline.

Question 17Licensing and Regulation (license law, DBPR authority, FREC rules, broker registration, business entities, advertising, escrow and trust accounts, recordkeeping, penalties and disciplinary process)

A licensee places a sign on a listed property that includes the brokerage firm's registered name but omits the licensee's name. How is this treated under Florida advertising rules?

  1. It is permitted because the firm's name appears, satisfying the identification requirement Correct answer.
  2. It is prohibited because every advertisement must list all associates in the firm
  3. It is prohibited because yard signs cannot contain a firm name
  4. It is permitted only if the seller approves in writing

Explanation

The advertising rule requires that the brokerage firm be identified by its registered name; individual associate names are not mandatory in every advertisement. A sign showing the firm name therefore satisfies the core disclosure requirement.

Question 18Licensing and Regulation (license law, DBPR authority, FREC rules, broker registration, business entities, advertising, escrow and trust accounts, recordkeeping, penalties and disciplinary process)

A broker maintains a single bank account into which she deposits escrow funds and from which she pays office rent. Which violation has occurred?

  1. Commingling of trust funds with business funds Correct answer.
  2. No violation if the broker keeps a running balance sheet
  3. A recordkeeping violation only, with no escrow violation
  4. Failure to maintain a minimum escrow balance only

Explanation

Escrow funds must be kept separate from the broker's business and personal funds; mixing them is commingling. Even accurate records do not cure the commingling violation.

Question 19Licensing and Regulation (license law, DBPR authority, FREC rules, broker registration, business entities, advertising, escrow and trust accounts, recordkeeping, penalties and disciplinary process)

A licensee wants to use a team name in advertising. What must be true for the team name to be used?

  1. The team name must be registered with the Division as a fictitious name and the advertising must still identify the brokerage firm Correct answer.
  2. The team name must be approved by the local board of realtors before use
  3. The team name may be used without any registration because teams are not regulated
  4. The team name may replace the brokerage firm name in all advertising

Explanation

Florida rules allow team advertising when the team name is registered as a fictitious name with the Division, and the advertisement must still identify the brokerage firm. The team name supplements rather than replaces the firm's registered name.

Question 20Licensing and Regulation (license law, DBPR authority, FREC rules, broker registration, business entities, advertising, escrow and trust accounts, recordkeeping, penalties and disciplinary process)

A broker discovers that a sales associate has been depositing rental payments into a personal account. What is the broker's responsibility?

  1. The broker must immediately transfer the associate to another firm
  2. The broker must personally repay all tenants and then take no further action
  3. The broker must report the conduct and take appropriate supervisory action, because brokers are responsible for associates' brokerage activities Correct answer.
  4. No action, because the associate alone is responsible for personal accounts

Explanation

Brokers have a duty to supervise associates and are responsible for brokerage activities conducted under their registration. Misappropriation of funds by an associate must be addressed and reported, and supervisory failures can themselves be grounds for discipline.

Question 21Licensing and Regulation (license law, DBPR authority, FREC rules, broker registration, business entities, advertising, escrow and trust accounts, recordkeeping, penalties and disciplinary process)

Which statement about the frequency of escrow account reconciliation for a Florida broker is correct?

  1. Reconciliation must be performed monthly and documented Correct answer.
  2. Reconciliation is required only when the account balance exceeds ten thousand dollars
  3. Reconciliation is optional if the broker uses a title company for closings
  4. Reconciliation is required only at the close of each fiscal year

Explanation

Brokers must reconcile escrow accounts monthly and retain documentation of the reconciliation. Monthly reconciliation helps detect shortages and supports the five-year recordkeeping requirement.

Question 22Licensing and Regulation (license law, DBPR authority, FREC rules, broker registration, business entities, advertising, escrow and trust accounts, recordkeeping, penalties and disciplinary process)

A licensee is accused of failing to account for funds entrusted to him. Which statement describes the burden and process in an administrative proceeding?

  1. The licensee must prove innocence beyond a reasonable doubt in criminal court before any license action
  2. No evidence is required because the Commission may act on rumor
  3. The complainant must prove the violation by a preponderance of the evidence before the Commission
  4. The Division must establish the violation by clear and convincing evidence in the administrative proceeding Correct answer.

Explanation

In Florida administrative disciplinary proceedings, the Division bears the burden of proving the violation by clear and convincing evidence. The standard is higher than a preponderance but lower than the criminal reasonable-doubt standard.

Question 23Licensing and Regulation (license law, DBPR authority, FREC rules, broker registration, business entities, advertising, escrow and trust accounts, recordkeeping, penalties and disciplinary process)

Which of the following is a permissible use of a broker's escrow account?

  1. Holding a tenant's security deposit pursuant to a property management agreement Correct answer.
  2. Funding a personal loan to the broker's relative
  3. Paying the broker's professional dues
  4. Covering a shortfall in the broker's payroll

Explanation

Escrow accounts may hold funds belonging to others in connection with real estate transactions, including security deposits handled under a property management agreement. Using escrow funds for the broker's personal or business obligations is prohibited.

Question 24Licensing and Regulation (license law, DBPR authority, FREC rules, broker registration, business entities, advertising, escrow and trust accounts, recordkeeping, penalties and disciplinary process)

A broker wants to open a branch office. What is required before the branch office may operate?

  1. The branch must be owned by a separate corporation
  2. Nothing, because branch offices are not separately registered
  3. The branch office must be registered with the Division and a licensed broker must be in charge Correct answer.
  4. Only a post office box address must be filed with the county

Explanation

Each branch office must be registered with the Division, and a licensed broker must be in charge of the office. Registration ensures the Division can identify the location and responsible licensee.

Question 25Licensing and Regulation (license law, DBPR authority, FREC rules, broker registration, business entities, advertising, escrow and trust accounts, recordkeeping, penalties and disciplinary process)

A licensee advertises a property for sale and intentionally omits that the property is subject to a pending foreclosure. Which violation is most directly implicated?

  1. Failure to register a branch office
  2. Failure to maintain escrow records
  3. Practicing without a current license
  4. Making a misleading or false advertisement Correct answer.

Explanation

Advertising must be truthful and may not omit material facts that would mislead the public. Omitting a pending foreclosure in a listing advertisement is a misleading advertisement and a ground for discipline.

Question 26Licensing and Regulation (license law, DBPR authority, FREC rules, broker registration, business entities, advertising, escrow and trust accounts, recordkeeping, penalties and disciplinary process)

Under Florida law, which entity has the authority to adopt administrative rules that govern real estate brokerage practice and to discipline licensees?

  1. The Florida Real Estate Commission Correct answer.
  2. The Florida Department of Law Enforcement
  3. The office of the Governor
  4. The Department of Business and Professional Regulation's Division of Real Estate alone

Explanation

The Florida Real Estate Commission (FREC) is the body empowered to adopt rules and to determine disciplinary action against licensees, while the Division of Real Estate handles day-to-day regulation and investigation. FREC is administratively housed within DBPR but exercises independent rulemaking and quasi-judicial authority.

Question 27Licensing and Regulation (license law, DBPR authority, FREC rules, broker registration, business entities, advertising, escrow and trust accounts, recordkeeping, penalties and disciplinary process)

A Florida broker wishes to operate her brokerage through a limited liability company. Which requirement applies to the broker's registration with DBPR?

  1. The LLC must register as a broker entity and the broker must be designated as its qualifying broker Correct answer.
  2. The broker may register only if she holds at least a 51 percent ownership interest
  3. The LLC needs no registration because a licensed broker is already involved
  4. The LLC must be licensed as a separate real estate brokerage entity and the broker must be its qualifying broker

Explanation

A business entity that provides real estate brokerage services must be registered with DBPR as a brokerage entity, and a licensed broker must be designated as the qualifying broker who is responsible for the entity's brokerage activities. The entity registration is distinct from the individual broker's license.

Question 28Licensing and Regulation (license law, DBPR authority, FREC rules, broker registration, business entities, advertising, escrow and trust accounts, recordkeeping, penalties and disciplinary process)

A broker's registered name as it appears on the DBPR license is 'Suncoast Realty Group.' In advertising a listing, which use of the firm name satisfies Florida requirements?

  1. Using 'Suncoast Realty' as a shortened version in the ad
  2. Using the exact registered name 'Suncoast Realty Group' in the ad Correct answer.
  3. Using an unregistered trade name that the broker prefers
  4. Omitting the firm name and listing only the sales associate's name

Explanation

Florida advertising rules require that the brokerage firm name used in advertising match the name registered with DBPR. A licensee must advertise under the registered name of the brokerage rather than a variation or an unregistered trade name.

Question 29Licensing and Regulation (license law, DBPR authority, FREC rules, broker registration, business entities, advertising, escrow and trust accounts, recordkeeping, penalties and disciplinary process)

A Florida broker is disciplined by FREC for a violation. Which statement correctly describes the relationship between FREC's final order and the licensee's options?

  1. The licensee may request a formal hearing before FREC en banc before any appeal
  2. The licensee may appeal the final order to the district court of appeal within the time allowed by law Correct answer.
  3. The licensee has no right to contest a FREC final order
  4. The licensee must first petition the Governor for clemency

Explanation

FREC final orders are subject to judicial review, and a licensee may appeal to the appropriate district court of appeal within the statutory time frame. Administrative remedies such as a hearing before an administrative law judge occur before the final order, not after it.

Question 30Licensing and Regulation (license law, DBPR authority, FREC rules, broker registration, business entities, advertising, escrow and trust accounts, recordkeeping, penalties and disciplinary process)

A Florida sales associate is convicted of a misdemeanor involving fraud. What is the correct description of the licensing consequence?

  1. The conviction may constitute grounds for FREC disciplinary action, which can include suspension, revocation, or other penalties Correct answer.
  2. The license is automatically revoked upon conviction
  3. The conviction is irrelevant because it is only a misdemeanor
  4. The associate may continue practicing but must notify clients in writing

Explanation

A conviction for a crime involving fraud or dishonest dealing, whether felony or misdemeanor, can support disciplinary action by FREC. The Commission determines the appropriate penalty after the disciplinary process, so revocation is not automatic.

Question 31Licensing and Regulation (license law, DBPR authority, FREC rules, broker registration, business entities, advertising, escrow and trust accounts, recordkeeping, penalties and disciplinary process)

Which recordkeeping obligation applies to a Florida real estate broker regarding transaction records?

  1. Records must be retained only until the closing statement is delivered
  2. Records must be retained for at least five years from the date of the transaction Correct answer.
  3. Records must be retained for one year after the license expires
  4. Records must be retained for at least two years from the date of the transaction

Explanation

Florida requires brokers to keep records of real estate transactions for at least five years. This retention period supports audits and investigations by DBPR and FREC.

Question 32Licensing and Regulation (license law, DBPR authority, FREC rules, broker registration, business entities, advertising, escrow and trust accounts, recordkeeping, penalties and disciplinary process)

A broker's escrow account is reconciled monthly. Which additional practice is required to maintain proper escrow records under Florida rules?

  1. Reconciling the account only when a shortage is suspected
  2. Reconciling the account monthly and maintaining a separate ledger for each transaction Correct answer.
  3. Reconciling the account quarterly with the bank
  4. Reconciling the account annually at the close of the fiscal year

Explanation

Florida rules require monthly reconciliation of escrow accounts along with individual ledger records for each transaction so that deposits and disbursements can be traced. The reconciliation and the transaction ledgers together demonstrate that trust funds are properly accounted for.

Question 33Licensing and Regulation (license law, DBPR authority, FREC rules, broker registration, business entities, advertising, escrow and trust accounts, recordkeeping, penalties and disciplinary process)

A broker receives a check from a buyer made payable to the broker as earnest money. Under Florida rules, what is the broker's obligation regarding that check?

  1. Deposit it into a trust or escrow account by the end of the third business day following receipt Correct answer.
  2. Deposit it into the broker's business operating account until closing
  3. Hold it in the broker's personal safe until the contract is accepted
  4. Convert it to cash and deliver it to the seller immediately

Explanation

Florida requires a broker who receives earnest money to deposit it into a trust or escrow account by the end of the third business day following receipt, unless the contract provides for a different handling with written notice. Commingling with business funds is prohibited.

Question 34Licensing and Regulation (license law, DBPR authority, FREC rules, broker registration, business entities, advertising, escrow and trust accounts, recordkeeping, penalties and disciplinary process)

A broker and sales associate discuss how commissions will be shared. Which statement correctly reflects the legal relationship?

  1. The sales associate may contract directly with the buyer for a commission split
  2. The sales associate and broker are co-equal parties to all brokerage agreements
  3. The broker is the party to the brokerage agreement, and the sales associate is compensated through the broker Correct answer.
  4. The sales associate may sue the buyer directly for a commission if the broker agrees

Explanation

A sales associate operates under a broker, and the brokerage relationship and commission entitlement belong to the broker. The associate is compensated through the broker rather than directly by clients.

Question 35Licensing and Regulation (license law, DBPR authority, FREC rules, broker registration, business entities, advertising, escrow and trust accounts, recordkeeping, penalties and disciplinary process)

A Florida broker plans to change the location of her main office. What must she do before operating from the new location?

  1. Open the new office and report the change at the next biennial renewal
  2. Only notify the local board of realtors
  3. Wait until the next license renewal to report the new address
  4. Notify DBPR of the change of address within the time required by rule and update her registration Correct answer.

Explanation

A broker must notify DBPR of a change of business address within the time required by rule so that the license record reflects the current location. Operating from an unreported location can result in disciplinary action.

Question 36Licensing and Regulation (license law, DBPR authority, FREC rules, broker registration, business entities, advertising, escrow and trust accounts, recordkeeping, penalties and disciplinary process)

A licensee who wants to place a lien on a property for an unpaid commission must generally satisfy which requirement?

  1. Obtain FREC approval before recording any lien
  2. Record the lien only after a court judgment is entered
  3. File the lien with DBPR rather than the clerk of court
  4. File a notice of lien in the public records within the time allowed and serve the required notice on the owner Correct answer.

Explanation

A broker's commission lien must be recorded in the public records and the required notice served on the property owner within the statutory time frames. FREC approval and a prior court judgment are not prerequisites to recording.

Question 37Licensing and Regulation (license law, DBPR authority, FREC rules, broker registration, business entities, advertising, escrow and trust accounts, recordkeeping, penalties and disciplinary process)

An unlicensed assistant working for a Florida brokerage performs certain tasks. Which task may the unlicensed assistant lawfully perform?

  1. Showing a property and discussing its features with a prospective buyer
  2. Negotiating the price and terms of a listing agreement
  3. Advising a buyer on which offer to submit
  4. Answering the phone and scheduling appointments for a licensee Correct answer.

Explanation

Unlicensed assistants may perform clerical and administrative tasks such as answering phones and scheduling appointments, but they may not perform activities that require a license, such as negotiating terms or showing property for compensation.

Question 38Licensing and Regulation (license law, DBPR authority, FREC rules, broker registration, business entities, advertising, escrow and trust accounts, recordkeeping, penalties and disciplinary process)

A broker maintains an escrow account. Which use of that account is prohibited under Florida rules?

  1. Holding funds belonging to the broker that are clearly identified and kept separate
  2. Paying the broker's office rent from the account Correct answer.
  3. Holding security deposits for rental properties managed by the broker
  4. Holding earnest money deposits for pending transactions

Explanation

Escrow accounts may hold trust funds such as earnest money and security deposits, and a broker may keep a clearly identified amount of personal funds in the account to cover bank charges. Using escrow funds to pay business operating expenses such as office rent is prohibited commingling.

Question 39Licensing and Regulation (license law, DBPR authority, FREC rules, broker registration, business entities, advertising, escrow and trust accounts, recordkeeping, penalties and disciplinary process)

A licensee is the subject of a complaint filed with DBPR. Which sequence correctly describes the disciplinary process?

  1. The complaint is investigated, a determination is made, and if disputed facts exist the matter may proceed to a hearing before an administrative law judge Correct answer.
  2. The licensee is automatically suspended while the complaint is pending
  3. The complaint is heard first by a circuit court jury
  4. FREC issues a final order, then the complaint is investigated, then a hearing is held

Explanation

A complaint is investigated by the Division of Real Estate, and if the matter is not resolved and disputed facts exist, it may proceed to the Division of Administrative Hearings for a formal hearing before an administrative law judge. FREC then acts on the recommended order.

Question 40Licensing and Regulation (license law, DBPR authority, FREC rules, broker registration, business entities, advertising, escrow and trust accounts, recordkeeping, penalties and disciplinary process)

A Florida broker is reviewing her advertising for a property listing. Which statement best reflects the requirement regarding the licensee's name in advertising?

  1. The advertisement need not include the licensee's name if the firm name appears
  2. The advertisement must include the licensee's name as licensed, in addition to the registered brokerage firm name Correct answer.
  3. The advertisement must include only the licensee's name and omit the firm name
  4. The advertisement may use any nickname the licensee prefers

Explanation

Florida advertising rules require that advertising identify the brokerage firm by its registered name and include the licensee's name as licensed. Using an unregistered nickname or omitting the licensee's name does not satisfy the requirement.

Question 41Real Estate Brokerage Operations (office policies and procedures, supervision and training of sales associates, employment and independent contractor relationships, business planning, risk management, brokerage compensation and trust-account reconciliation)

Under Florida rules, a broker who personally performs real estate services for a customer and receives compensation for those services must be compensated how?

  1. Through the brokerage entity, since a broker may not be paid directly by a customer for brokerage services Correct answer.
  2. Through an escrow agent who then distributes the commission to the broker
  3. Directly by the customer, because the broker is individually licensed
  4. Only after the sales associate who introduced the customer is paid first

Explanation

Florida treats the brokerage as the single licensed entity through which all compensation for brokerage services flows. A qualifying broker or broker associate who personally provides services is paid by the brokerage, not by the customer directly. Paying a licensee outside the brokerage structure creates an unlicensed-brokerage and trust-accounting problem.

Question 42Real Estate Brokerage Operations (office policies and procedures, supervision and training of sales associates, employment and independent contractor relationships, business planning, risk management, brokerage compensation and trust-account reconciliation)

A broker's written office policy should address which of the following to best demonstrate supervision of sales associates?

  1. The associate's personal marketing budget for social media advertising
  2. The associate's choice of personal automobile for showing property
  3. The associate's membership in a civic organization
  4. The procedure for reviewing contracts and advertising before public release Correct answer.

Explanation

Supervision is demonstrated by documented review procedures for the acts that create legal exposure, especially contracts and advertising. A written policy requiring broker review before dissemination evidences control and reduces liability. Personal spending, vehicle choice, and civic memberships are outside the brokerage's supervisory scope.

Question 43Real Estate Brokerage Operations (office policies and procedures, supervision and training of sales associates, employment and independent contractor relationships, business planning, risk management, brokerage compensation and trust-account reconciliation)

A brokerage engages sales associates as independent contractors. Which practice most threatens that classification?

  1. Requiring associates to attend a weekly voluntary training session on new disclosure forms
  2. Paying associates a percentage split of the commission earned on each closing
  3. Requiring associates to be at a desk from 9 a.m. to 5 p.m. and log every phone call Correct answer.
  4. Allowing associates to set their own showing schedules

Explanation

Independent contractor status depends on the brokerage not controlling the manner and means of the work. Mandatory fixed hours and call logging are hallmarks of employee-style control. Commission splits, voluntary training, and schedule freedom are consistent with contractor status.

Question 44Real Estate Brokerage Operations (office policies and procedures, supervision and training of sales associates, employment and independent contractor relationships, business planning, risk management, brokerage compensation and trust-account reconciliation)

A broker is preparing the annual business plan. Which element is most directly tied to Florida real estate license law compliance?

  1. A budget for office furniture replacement
  2. A projection of the brokerage's market share by zip code
  3. A schedule for reconciling and auditing the brokerage trust account Correct answer.
  4. A plan for recruiting associates from competing firms

Explanation

Trust-account reconciliation is a statutory and rule-based obligation, so building a recurring reconciliation and audit schedule into the business plan directly supports compliance. Market share, recruiting, and furniture budgets are ordinary business planning matters without a compliance mandate.

Question 45Real Estate Brokerage Operations (office policies and procedures, supervision and training of sales associates, employment and independent contractor relationships, business planning, risk management, brokerage compensation and trust-account reconciliation)

A sales associate receives a $5,000 earnest money deposit check made payable to the brokerage. What is the associate's correct immediate action?

  1. Cash the check and hold the currency in the office safe
  2. Hold the check in a personal file until the contract's inspection period ends
  3. Deposit the check into the associate's business account and forward a personal check
  4. Deliver the check promptly to the broker for deposit into the brokerage escrow account Correct answer.

Explanation

Earnest money must be turned over to the broker for deposit into a properly designated escrow account within the time required by law and the contract. Associates may not hold, cash, or commingle customer funds. Prompt delivery to the broker preserves the funds and the brokerage's records.

Question 46Real Estate Brokerage Operations (office policies and procedures, supervision and training of sales associates, employment and independent contractor relationships, business planning, risk management, brokerage compensation and trust-account reconciliation)

During monthly trust-account reconciliation, the broker finds the checkbook balance exceeds the sum of individual ledger balances. What does this most likely indicate?

  1. The bank charged a service fee that the broker has not recorded
  2. A tenant security deposit was recorded but not yet deposited
  3. An outstanding check has not yet cleared the bank
  4. A receipt was recorded in the ledger without a corresponding deposit Correct answer.

Explanation

The book balance should equal the total of the individual ledger balances. A book balance higher than the ledger total suggests a ledger credit with no matching cash, such as a recorded receipt lacking a deposit. Outstanding checks and unrecorded bank fees affect the bank side, not the relationship between book balance and ledger total.

Question 47Real Estate Brokerage Operations (office policies and procedures, supervision and training of sales associates, employment and independent contractor relationships, business planning, risk management, brokerage compensation and trust-account reconciliation)

Which record-keeping practice best supports a broker's defense in a later dispute over a transaction?

  1. Keeping dated notes of material conversations and copies of all written communications Correct answer.
  2. Discarding draft documents once the contract is signed
  3. Relying on the associate's personal phone records if a dispute arises
  4. Retaining only the final closing statement for each file

Explanation

Contemporaneous, dated records of material communications create a reliable evidentiary trail. Retaining only closing statements or discarding drafts leaves gaps that undermine the brokerage's position. Relying on an associate's personal records cedes control of the brokerage's own file.

Question 48Real Estate Brokerage Operations (office policies and procedures, supervision and training of sales associates, employment and independent contractor relationships, business planning, risk management, brokerage compensation and trust-account reconciliation)

A broker wants to reduce liability arising from associates' advertising. Which control is most effective?

  1. Delegating advertising review to the newest associate
  2. Reviewing advertising only after a consumer complains
  3. Requiring associates to submit all advertising for broker review before publication Correct answer.
  4. Asking associates to verbally confirm that their ads are accurate

Explanation

Pre-publication review by the broker is the strongest control because it prevents noncompliant advertising rather than reacting to it. Verbal assurances and post-complaint review leave violations uncorrected. Delegating review to an inexperienced associate defeats the purpose of supervision.

Question 49Real Estate Brokerage Operations (office policies and procedures, supervision and training of sales associates, employment and independent contractor relationships, business planning, risk management, brokerage compensation and trust-account reconciliation)

A brokerage's policy manual states that associates must indemnify the brokerage for all claims arising from their transactions. Which criticism is most accurate?

  1. The clause is required by Florida law for all brokerages
  2. The clause is enforceable because brokers may allocate all risk to associates
  3. The clause may be unenforceable and does not substitute for the broker's own supervisory duties Correct answer.
  4. The clause transfers the broker's license to the associate

Explanation

A broker cannot contract away statutory supervisory responsibility, and broad indemnity clauses may be unenforceable as against public policy. Such language gives a false sense of protection. The broker must still implement real supervision and risk controls.

Question 50Real Estate Brokerage Operations (office policies and procedures, supervision and training of sales associates, employment and independent contractor relationships, business planning, risk management, brokerage compensation and trust-account reconciliation)

Which action by a broker best demonstrates required training of newly licensed sales associates?

  1. Documenting completion of orientation on contracts, disclosures, and escrow procedures Correct answer.
  2. Assigning new associates to sign contracts on the broker's behalf
  3. Allowing new associates to learn procedures from clients
  4. Providing a copy of the office policy manual with no follow-up

Explanation

Documented orientation covering contracts, disclosures, and escrow handling shows the broker trained associates on high-risk areas. Simply handing over a manual without follow-up is weak evidence of training. Learning from clients or letting unproven associates sign for the broker increases exposure.