Florida Real Estate Sales Associate — All Questions

A Florida sales associate may lawfully be paid a real estate commission by:

• a.Either the buyer or the seller by mutual agreement
• b.The title company handling the escrow account
• c.Only their employing broker✓
• d.The seller directly at the closing table

A sales associate may be compensated for real estate services only by the employing broker, never directly by a buyer, seller, or other party. This preserves the broker's supervisory responsibility under Chapter 475.

FREC rules require a broker to reconcile the escrow (trust) account:

• a.At least monthly✓
• b.At the end of every calendar quarter
• c.Only when a discrepancy is reported by a client
• d.Once during each license renewal cycle

A broker must review and reconcile the escrow account at least monthly, comparing the account balance against the broker's records and outstanding liabilities. Written reconciliation statements must be kept and signed.

A 'broker associate' in Florida is a person who:

• a.Holds a broker license but works under another broker✓
• b.Holds only a sales associate license and manages an office
• c.Is a broker who owns the brokerage outright
• d.Is an unlicensed partner in a brokerage firm

A broker associate holds a broker license but chooses to work under the direction of another broker rather than operate independently. This differs from a sales associate, who holds a lower-level license.

Which of the following is a ground for disciplinary action under Section 475.25?

• a.Placing escrow funds into the trust account on time
• b.Recommending that a buyer consult an attorney before signing
• c.Refusing to carry out an unlawful instruction from a principal
• d.Culpable negligence or breach of trust in a transaction✓

Section 475.25 lists grounds for discipline, including fraud, misrepresentation, concealment, dishonest dealing, and culpable negligence or breach of trust. Lawful, protective acts such as depositing escrow on time are not violations.

Florida's mutual recognition agreements with certain other states allow a qualifying nonresident to:

• a.Skip Florida's prelicensing course and take a shorter Florida-law exam✓
• b.Automatically receive a Florida broker license by mail
• c.Practice in Florida without holding any Florida license
• d.Bypass all background-check and fingerprint requirements

Under mutual recognition, an applicant licensed in a partner state may obtain a Florida license by passing a Florida-law-focused exam instead of completing the full Florida prelicensing course. Other requirements, such as background checks, still apply.

Practicing real estate in Florida without a license is, on a first offense, generally a:

• a.First-degree misdemeanor✓
• b.Matter handled solely through license suspension
• c.Noncriminal civil infraction resulting only in a warning
• d.Second-degree felony punishable exclusively by prison

Unlicensed real estate activity is a first-degree misdemeanor for a first offense in Florida, with escalating penalties for repeat offenses. The state can also pursue civil remedies. A license is required to be paid for services performed for another.

An advertisement stating 'adults only, no children' most likely violates the fair housing prohibition against discrimination based on:

• a.National origin and ancestry
• b.Marital status under federal law
• c.Lawful source of income
• d.Familial status✓

Excluding families with children implicates familial status, a protected class under the federal Fair Housing Act. Licensees must avoid advertising that expresses a preference or limitation based on any protected class.

Inducing owners to sell by suggesting that people of a particular protected class are moving into the neighborhood is called:

• a.Puffing about anticipated future property values
• b.Redlining a defined geographic lending area
• c.Steering buyers toward specific subdivisions
• d.Blockbusting✓

Blockbusting is the illegal practice of causing panic selling by claiming that the entry of a protected class will lower values or change a neighborhood. It violates fair housing law, as do steering and redlining.

Housing may lawfully limit occupancy to persons 55 and older under the fair housing exemption if:

• a.The community is located in a retirement-zoned district
• b.At least 80% of units are occupied by at least one person 55 or older✓
• c.The owner files an annual age waiver with HUD
• d.Every single occupant is at least 55 years of age

The 'housing for older persons' exemption allows 55-and-older communities if at least 80% of the occupied units have at least one resident 55 or older, along with published policies demonstrating intent. This is an exception to the familial-status rule.

The federal Civil Rights Act of 1866 prohibits all racial discrimination in property transactions with:

• a.An exemption for single-family homes sold without a broker
• b.An exemption for owner-occupied fourplexes
• c.The same exemptions found in the Fair Housing Act
• d.No exemptions✓

The Civil Rights Act of 1866 bars all racial discrimination in real property transactions and, as confirmed in Jones v. Mayer, has no exemptions. The later Fair Housing Act has limited exemptions, but they never permit racial discrimination.

A person who believes they suffered housing discrimination may file a complaint with:

• a.The U.S. Department of Housing and Urban Development (HUD)✓
• b.The Florida Real Estate Commission exclusively
• c.The local zoning board of appeals
• d.The National Association of REALTORS ethics panel

Fair housing complaints may be filed with HUD, which investigates and enforces the federal Fair Housing Act. State and local fair housing agencies may also have jurisdiction. Complaints generally must be filed within statutory time limits.

A Florida license that remains involuntarily inactive for more than two years generally becomes:

• a.Null and void✓
• b.Eligible for reimbursement from the Recovery Fund
• c.Converted to a broker license by operation of law
• d.Automatically reactivated at the next renewal

If a license stays involuntarily inactive for more than two years, it typically becomes null and void, and the person must requalify to be licensed again. Reactivation is possible only within the statutory window.

A 'group license' issued to a Florida sales associate allows the associate to:

• a.Maintain multiple separate escrow accounts
• b.Hold real estate licenses in several states at once
• c.Work for an owner-developer that has multiple entities under one broker✓
• d.Directly supervise a group of unlicensed assistants

A group license lets a sales associate or broker associate work for an owner-developer that operates through several related entities, all under one broker of record. It is a specific administrative arrangement.

A 'multiple license' in Florida is issued to a broker who:

• a.Holds both a Florida and an out-of-state license
• b.Manages more than one branch office at a time
• c.Acts as broker for more than one business entity✓
• d.Supervises more than ten sales associates

A multiple license allows a broker to serve as the broker for more than one registered business entity. It differs from a group license, which applies to associates of an owner-developer with multiple entities.

A Florida licensee who is selling their own property must:

• a.List it only with their current employing broker
• b.Disclose their licensed status to prospective buyers✓
• c.Route all proceeds through the Recovery Fund
• d.Obtain written FREC approval before listing it

A licensee selling their own property must disclose that they hold a real estate license, so the other party understands they are dealing with a knowledgeable licensee. Honesty and full disclosure remain required.

A Florida licensee who accepts an undisclosed fee from a home inspector in exchange for referrals has committed:

• a.A lawful cooperative marketing arrangement
• b.An illegal undisclosed referral fee (kickback)✓
• c.An acceptable ordinary business courtesy
• d.A permitted finder's fee under Chapter 475

Accepting a secret fee for steering clients to a vendor is an illegal undisclosed kickback. Any compensation arrangement affecting a client must be disclosed. Such conduct is a ground for discipline.

In the DBPR discipline process, the decision whether to file a formal complaint against a licensee is made by:

• a.A jury of licensed brokers
• b.The employing broker of the accused licensee
• c.A probable-cause panel✓
• d.The Governor's executive office

After an investigation, a probable-cause panel determines whether there is probable cause to believe a violation occurred and to file a formal administrative complaint. The matter may then proceed to a hearing.

A 'citation' issued by the DBPR for a minor violation:

• a.Automatically revokes the license upon issuance
• b.Carries a set penalty and becomes final unless timely disputed✓
• c.Requires a full formal administrative hearing first
• d.May be issued only to brokers, never to sales associates

A citation imposes a predetermined fine for specified minor violations and becomes a final order if the licensee does not dispute it within the allowed time. It is a streamlined alternative to a full disciplinary proceeding.

In a Florida brokerage transaction, escrow funds may be held by:

• a.The buyer, in the buyer's own personal bank account
• b.The listing sign or marketing vendor
• c.Any licensee, including the sales associate who took the offer
• d.The broker, a title company, or an attorney, but not a sales associate✓

Escrow funds may be held by a neutral party such as the broker, a title company, or an attorney. A sales associate may not hold or maintain escrow funds; they must be delivered to the broker promptly.

If a Florida broker dies, FREC may issue a temporary license to a suitable person to:

• a.Permanently take over and operate the deceased broker's firm
• b.Wind up the existing business of the brokerage✓
• c.Collect payments from the Recovery Fund
• d.List and sell an unlimited number of new properties

On a broker's death, FREC may grant a temporary broker license to an otherwise unlicensed but qualified person for the limited purpose of concluding the brokerage's pending business. It is not a permanent operating license.

Under limited confidentiality, a Florida transaction broker may NOT disclose that a buyer:

• a.Has been prequalified by a mortgage lender
• b.Intends to have a professional home inspection
• c.Would prefer a 30-day closing timeline
• d.Will pay more than the price already offered✓

Limited confidentiality prohibits a transaction broker from revealing that a buyer will pay more (or a seller will accept less) than the price offered, the parties' motivation, or other bargaining information, unless authorized or required by law.

A Florida real estate team or group advertising name must:

• a.Include the trademarked word 'REALTOR' by law
• b.Be registered as a separate brokerage with the DBPR
• c.Replace the brokerage name to avoid consumer confusion
• d.Be used together with the licensed brokerage's name✓

Team or group names used in advertising must appear with, and may not overshadow, the licensed brokerage's name so the responsible brokerage is clearly identified. Team names may not imply the team is a separate brokerage.

A licensee who sells rental information to a prospective tenant for a fee must refund up to 75% of the fee if:

• a.The tenant does not obtain a rental as represented✓
• b.The listed information is more than 30 days old
• c.The landlord raises the advertised rent after listing
• d.The tenant changes their mind within 24 hours

Under Section 475.453, a licensee who charges for rental information must refund 75% of the fee if the prospective tenant does not obtain a rental as represented and requests a refund within the statutory period.

Chapter 475, Part I, of the Florida Statutes governs:

• a.Community association managers exclusively
• b.Real estate brokers, sales associates, and schools✓
• c.Mortgage loan originators and lenders
• d.State-certified appraisers and appraisal firms only

Chapter 475, Part I regulates real estate brokers, broker associates, sales associates, and real estate schools. Appraisers are covered under Part II. Understanding the statute's scope is central to license law.

To qualify for a Florida broker license, an applicant must generally hold an active sales associate license for at least:

• a.No time at all if the applicant holds a college degree
• b.10 years of continuous licensure
• c.24 months within the preceding five years✓
• d.6 months in any prior period

A broker applicant must have held an active real estate sales associate license for at least 24 months during the five years preceding application, in addition to completing broker prelicensing education and passing the broker exam.

A Florida broker may place escrow funds in an interest-bearing account only if:

• a.All parties consent in writing and agree who receives the interest✓
• b.FREC first issues a written escrow disbursement order
• c.The broker automatically keeps the interest as a service fee
• d.The account balance stays above $10,000 at all times

Escrow funds may be placed in an interest-bearing account only with the written consent of all parties, who must also agree on who is entitled to the interest and when it will be disbursed. The broker cannot simply keep the interest.

Failing to account for or deliver funds that belong to another party is, under Chapter 475:

• a.Permitted whenever the amount is under $500
• b.Only a civil matter with no license consequence
• c.A ground for disciplinary action✓
• d.Excused if the broker was merely careless

Failure to account for and deliver funds or property belonging to another is expressly a ground for discipline. Brokers must safeguard trust funds and deliver them as required. Violations can lead to fines, suspension, or revocation.

Which advertising practice by a Florida licensee is expressly prohibited?

• a.Noting that the seller is motivated, with the seller's consent
• b.Making false, deceptive, or misleading statements✓
• c.Including the brokerage's full licensed name
• d.Stating the property's accurate current list price

Advertising that is false, deceptive, or misleading is prohibited and is a ground for discipline. Accurate, non-deceptive advertising that identifies the brokerage is permitted and expected.

A designated sales associate arrangement in a nonresidential Florida transaction is permitted only when each party has assets of at least:

• a.$250,000 in verified liquid funds
• b.$1 million✓
• c.$5 million in total holdings
• d.$500,000 in combined net worth

Designated sales associates are allowed in nonresidential transactions where the buyer and seller each have assets of $1 million or more and both request the arrangement in writing. Two associates in one firm then each represent a party as a single agent.