Florida Real Estate Broker Exam — All Questions

Under s. 475.278, F.S., a Florida licensee who has not established another relationship in writing with a customer is presumed to be operating as:

• a.A single agent for the seller
• b.A licensee with no brokerage relationship
• c.A single agent for the buyer
• d.A transaction broker✓

Section 475.278(1)(b), F.S., states that it shall be presumed that all licensees are operating as transaction brokers unless a single agent or no brokerage relationship is established, in writing, with a customer. The presumption is the default that operates in the absence of a writing, which is why the two single agent choices and the no brokerage relationship choice are wrong: each of those must be affirmatively established in writing. Section 475.278(1)(a), F.S., separately prohibits a licensee from operating as a disclosed or nondisclosed dual agent, defining dual agent as a broker who represents both buyer and seller as a fiduciary.

Which of the following is a duty a Florida transaction broker owes under s. 475.278(2), F.S.?

• a.Limited confidentiality, unless waived in writing by a party✓
• b.Full confidentiality of all customer information, without exception
• c.Undivided loyalty to whichever party first requested assistance
• d.Obedience to the lawful instructions of the party being assisted

Section 475.278(2), F.S., lists the transaction broker's duties as dealing honestly and fairly; accounting for all funds; using skill, care, and diligence; disclosing all known facts that materially affect the value of residential real property and are not readily observable to the buyer; presenting all offers and counteroffers in a timely manner; limited confidentiality unless waived in writing; and any additional duties mutually agreed to. Limited confidentiality specifically prevents disclosing that a seller will take less or a buyer will pay more, among other things. Loyalty and obedience are single agent duties under s. 475.278(3)(a), F.S., and full confidentiality is not what limited confidentiality means.

A Florida single agent who wishes to become a transaction broker in the same transaction must:

• a.Obtain a written order from the commission approving the change
• b.Obtain the principal's written consent before the change takes effect✓
• c.Wait until closing, when the change takes effect automatically
• d.Cancel the existing listing agreement and negotiate a new one

Section 475.278(3)(b)2., F.S., allows a single agent relationship to be changed to a transaction broker relationship at any time during the relationship, provided the agent first obtains the principal's written consent to the change. Section 475.278(3)(c)2., F.S., prescribes the Consent to Transition to Transaction Broker disclosure used to obtain it, whose first sentence must be printed in uppercase and bold type. The change is a matter of the principal's informed consent, not a commission order, and it does not require unwinding the listing. Nothing about it happens automatically, least of all at closing after the parties have relied on the relationship.

Which duty is owed by a Florida single agent but not by a transaction broker?

• a.Dealing honestly and fairly with the customer
• b.Accounting for all funds in the transaction
• c.Loyalty and obedience to the principal✓
• d.Using skill, care, and diligence in the transaction

Section 475.278(3)(a), F.S., lists nine single agent duties: dealing honestly and fairly, loyalty, confidentiality, obedience, full disclosure, accounting for all funds, skill, care, and diligence, presenting all offers and counteroffers in a timely manner, and disclosing known facts materially affecting residential value that are not readily observable. Comparing that list with the transaction broker duties in s. 475.278(2), F.S., shows the overlap: honest and fair dealing, accounting for funds, and skill, care, and diligence appear in both. The fiduciary duties that appear only on the single agent list are loyalty, obedience, confidentiality, and full disclosure.

A Florida licensee who has no brokerage relationship with a buyer or seller must give the required disclosure notice:

• a.Before the closing of the transaction
• b.At the time an offer is first presented
• c.Before the showing of property✓
• d.Within 24 hours after the first contact

Section 475.278(4)(b), F.S., requires that the duties of a licensee who has no brokerage relationship be fully described and disclosed in writing to the buyer or seller before the showing of property. Those duties, listed in s. 475.278(4)(a), F.S., are only three: dealing honestly and fairly, disclosing all known facts that materially affect the value of residential real property which are not readily observable to the buyer, and accounting for all funds entrusted to the licensee. The first sentence of the notice must be printed in uppercase bold type. Waiting until an offer or closing would defeat the purpose of telling a customer where the licensee stands.

A Florida broker may appoint designated sales associates to act as single agents for buyer and seller in the same transaction only when:

• a.The transaction is nonresidential and both parties have $1 million in assets✓
• b.The transaction is nonresidential and both parties waive confidentiality
• c.The transaction is nonresidential and the property exceeds 10 acres
• d.The transaction is residential and both parties have $1 million in assets

Section 475.2755(1), F.S., permits designated sales associates only in a real estate transaction other than a residential sale as defined in s. 475.278(5)(a), F.S., and only where the buyer and seller have assets of $1 million or more, at the customers' request. Both customers must sign disclosures stating that their assets meet the threshold and requesting that form of representation. The designated associates owe single agent duties, and a special uppercase notice replaces the ordinary transition disclosure. The device exists for sophisticated commercial parties, which is why the residential option is wrong; no waiver of confidentiality and no acreage test appears in the statute.