Florida Real Estate Sales Associate — All Questions

Which Florida body is primarily responsible for administering and enforcing the real estate license law under Chapter 475?

• a.The Florida Real Estate Commission (FREC)✓
• b.The Florida Bar
• c.The U.S. Department of Housing and Urban Development
• d.The National Association of REALTORS

The Florida Real Estate Commission (FREC) administers and enforces Chapter 475 of the Florida Statutes, which governs real estate licensing and practice. FREC operates within the Department of Business and Professional Regulation (DBPR). Its duties include rulemaking, licensing, and discipline. Specific rules can change over time.

Under Florida law, a sales associate must perform licensed real estate activities under the supervision of:

• a.The county tax collector
• b.No one; sales associates may operate independently
• c.The buyer's attorney
• d.A licensed broker or owner-developer employer✓

A Florida sales associate must be employed by and act under the direction of a licensed broker (or a licensed owner-developer). Sales associates cannot operate independently or be paid directly by consumers. This supervisory structure is central to Chapter 475.

A real estate licensee who represents a buyer or seller with limited representation, not as a fiduciary, is acting as a:

• a.Transaction broker✓
• b.Designated sales associate
• c.Single agent
• d.Dual agent

A transaction broker provides limited representation and owes duties such as dealing honestly and fairly, accounting for funds, and disclosing known material facts, but not full fiduciary loyalty. This is Florida's default relationship. It differs from a single agent, who owes full fiduciary duties.

Which of the following is one of the duties a Florida single agent owes that a transaction broker does not?

• a.Accounting for all funds
• b.Dealing honestly and fairly
• c.Disclosing known material facts affecting value
• d.Loyalty and full confidentiality to the principal✓

A single agent owes full fiduciary duties including loyalty, confidentiality, obedience, and full disclosure to the principal. A transaction broker owes a more limited set of duties and does not owe loyalty or full confidentiality. Both relationships require honesty, accounting, and disclosure of material facts.

Escrow funds held by a broker must generally be:

• a.Loaned to the buyer for closing costs
• b.Kept in a separate trust or escrow account, not commingled with the broker's own funds✓
• c.Deposited into the broker's personal checking account
• d.Immediately paid to the seller upon receipt

Brokers must place escrowed funds, such as earnest money deposits, into a designated trust or escrow account and must not commingle them with personal or operating funds. Florida law sets specific timeframes for deposit. Improper handling of escrow funds is a common cause of discipline.

Commingling, a violation of Florida real estate law, refers to:

• a.Advertising a property without the owner's consent
• b.Failing to renew a license on time
• c.Mixing client escrow funds with the broker's personal or business funds✓
• d.Representing both buyer and seller

Commingling occurs when a broker mixes clients' trust funds with the broker's own personal or business money. It is prohibited because it endangers client funds and obscures accountability. Conversion, a related and more serious offense, is actually using those funds improperly.

To be eligible for an initial Florida sales associate license, an applicant must generally be at least:

• a.25 years old and a Florida resident for 10 years
• b.16 years old with no education requirement
• c.18 years old and hold a high school diploma or equivalent✓
• d.21 years old and a college graduate

Applicants for a Florida sales associate license generally must be at least 18 years old and hold a high school diploma or its equivalent. They must also complete required prelicensing education, pass a background check, and pass the state exam. Exact requirements are set by statute and rule and can change.

Which of the following actions by a licensee would most likely be grounds for disciplinary action by FREC?

• a.Recommending that a buyer obtain an inspection
• b.Providing the seller with a copy of the listing agreement
• c.Placing an earnest money deposit in escrow promptly
• d.Fraud, misrepresentation, or concealment in a transaction✓

Fraud, misrepresentation, concealment, dishonest dealing, and similar acts are grounds for discipline under Chapter 475. FREC may impose penalties ranging from fines to license suspension or revocation. Recommending inspections and handling escrow properly are lawful, expected practices.

A Florida broker who wishes to open a real estate office must:

• a.Share a single license among multiple brokers
• b.Operate only from the broker's home with no registration
• c.Maintain and register a principal office with DBPR✓
• d.Avoid displaying any sign or identification

A Florida broker must maintain a principal office and register it with the DBPR, and branch offices generally must also be registered. The office must meet requirements for signage and recordkeeping. These rules help ensure accountability and consumer access.

The purpose of continuing education requirements for Florida real estate licensees is primarily to:

• a.Keep licensees current on law and practice for consumer protection✓
• b.Reduce the number of licensees in the market
• c.Guarantee licensees a minimum income
• d.Increase state revenue from license fees

Continuing education requirements ensure licensees stay current on laws, ethics, and best practices, which protects consumers. Florida requires a set number of CE hours each renewal cycle, including specified core and law topics. The specific hour requirements are set by rule and can change.

If a broker's escrow account has conflicting demands from a buyer and seller over a disputed deposit, Florida law allows the broker to use several settlement procedures, including:

• a.Ignoring the dispute indefinitely
• b.Keeping the disputed funds as a commission
• c.Requesting an escrow disbursement order (EDO) from FREC✓
• d.Immediately giving the funds to whichever party asks first

When there are conflicting demands or a good-faith doubt over escrowed funds, a Florida broker must promptly notify FREC and choose a settlement procedure such as an EDO, mediation, arbitration, or interpleader. The broker may not simply keep or arbitrarily release the funds. Timely notification is required by law.

Which of the following individuals generally must hold a real estate license to be paid a commission for the activity described?

• a.A person who, for another and for compensation, negotiates the sale of real estate✓
• b.An owner selling their own personal residence
• c.A salaried apartment manager renting units of their employer
• d.A licensed attorney handling a client's legal matter within their practice

Florida law requires a license for anyone who, for another and for compensation, performs real estate services such as selling, buying, leasing, or negotiating. Certain parties are exempt, including owners selling their own property and attorneys acting within their practice. The compensation-for-another element is key to the license requirement.

An 'earnest money deposit' delivered by a buyer with an offer is typically held by the:

• a.County property appraiser
• b.Broker or an authorized escrow holder such as a title company✓
• c.Buyer's personal bank in the buyer's own account
• d.Listing sign company

Earnest money deposits are typically held in escrow by a neutral party such as the broker, a title company, or an attorney. The funds show the buyer's good faith and are credited or handled per the contract at closing. Florida sets time limits for depositing these funds into escrow.

A licensee who tells a buyer that a home 'has the best view in the county' is most likely engaging in:

• a.A material misrepresentation of fact
• b.Fraud, which is always actionable
• c.Puffing, which is a nonactionable statement of opinion✓
• d.Commingling of funds

Puffing is an exaggerated opinion or sales talk that a reasonable person would not treat as a statement of fact, and it is generally not actionable. It differs from misrepresentation, which is a false statement of material fact. Licensees should still avoid statements that could mislead a buyer.

Under Florida law, when must a single agent disclosure or transaction broker notice generally be provided?

• a.Never; disclosure is optional
• b.Only if the customer specifically requests it
• c.Before or at the time of entering into a listing or before showing property, as required by statute✓
• d.Only after closing has occurred

Florida's brokerage relationship disclosure requirements specify when and how licensees must disclose the type of relationship, historically tied to the point of entering a listing agreement or before showing property. The exact disclosure obligations have been amended over time. Licensees must follow the current statutory requirements in Chapter 475.

The Florida Real Estate Recovery Fund exists primarily to:

• a.Reimburse consumers who obtain a court judgment for a licensee's wrongdoing that cannot be collected✓
• b.Pay licensees when commissions go unpaid by brokers
• c.Provide loans to first-time homebuyers
• d.Fund advertising for the real estate industry

The Recovery Fund reimburses members of the public who have suffered monetary damages from a licensee's fraud or similar act and hold an uncollectible court judgment. Payment from the fund can lead to automatic suspension of the offending licensee. Recovery is subject to statutory limits per transaction and licensee.

A licensee's failure to renew a license before its expiration generally results in the license becoming:

• a.Involuntarily inactive, requiring action to reactivate✓
• b.Transferred to another licensee
• c.Automatically upgraded to a broker license
• d.Permanently and irrevocably void with no path to renewal

A license that is not renewed by its expiration date typically becomes involuntarily inactive, and continued practice during that period is prohibited. The licensee must complete requirements to reactivate within statutory timeframes. Failing to act for too long can lead to the license becoming null and void.

Which of the following best describes a 'designated sales associate' arrangement permitted in Florida?

• a.The broker personally guarantees the sale price
• b.One associate secretly represents both buyer and seller
• c.An unlicensed assistant negotiates the deal
• d.Two associates in the same firm each represent a different party as single agents in certain nonresidential transactions✓

In certain nonresidential transactions where both parties meet asset thresholds, a broker may appoint two designated sales associates to each represent a different party as a single agent. This allows single-agent representation within one firm. It is a specific, limited exception under Florida law.

Advertising by a Florida licensee must generally:

• a.List only the sales associate's personal cell number
• b.Include the licensed name of the brokerage firm✓
• c.Omit the brokerage name to focus on the property
• d.Guarantee a future increase in property value

Florida advertising rules generally require that a licensee's advertising include the brokerage firm's licensed name so the public can identify the responsible broker. Advertising must not be false, deceptive, or misleading. Specific advertising rules are set by FREC and can change.

A broker who improperly takes and uses a client's escrow money for the broker's own purposes has committed:

• a.Novation
• b.Subrogation
• c.Puffing
• d.Conversion✓

Conversion is the unauthorized use or appropriation of another person's funds or property, such as a broker spending client escrow money. It is more serious than commingling, which is merely mixing funds. Conversion is grounds for severe discipline and possible criminal liability.

The federal Fair Housing Act prohibits discrimination in housing based on all of the following protected classes EXCEPT:

• a.Occupation or profession✓
• b.Religion and national origin
• c.Familial status and disability
• d.Race and color

The federal Fair Housing Act protects seven classes: race, color, religion, sex, national origin, familial status, and disability. Occupation is not a federally protected class, though other laws or local ordinances may add protections. Licensees must avoid steering, blockbusting, and other discriminatory practices.

'Steering' under fair housing law refers to:

• a.Encouraging owners to sell by claiming values will fall
• b.Refusing to make a mortgage loan in a defined area
• c.Charging a higher commission for luxury homes
• d.Directing prospective buyers toward or away from neighborhoods based on protected class✓

Steering is the illegal practice of guiding buyers toward or away from certain areas based on race, national origin, or another protected class. It restricts housing choice and violates fair housing law. Blockbusting and redlining are related but distinct prohibited practices.

Which practice involves a lender refusing to lend or offering worse terms in specific geographic areas, often correlated with protected classes?

• a.Puffing
• b.Novation
• c.Redlining✓
• d.Steering

Redlining is the discriminatory practice of denying or pricing loans and services unfavorably based on the location of a property, often tied to the racial makeup of a neighborhood. It is prohibited under fair housing and fair lending laws. Steering and blockbusting are related discriminatory practices carried out by others.

If a Florida sales associate wants their license to remain active, they generally must:

• a.Keep it registered under a current employing broker and meet renewal requirements✓
• b.Renew only once every ten years
• c.Personally register a brokerage office with DBPR
• d.Hold funds in their own personal escrow account

For a sales associate license to remain active, it must be registered under a current employing broker and the associate must meet renewal and continuing education requirements. Without an employer of record, the license generally becomes inactive. Renewal cycles and CE requirements are set by rule.

Florida requires an applicant for a sales associate license to complete a state-approved prelicensing course of how many classroom hours?

• a.90 hours including a mandatory legal-ethics seminar
• b.63 hours✓
• c.40 hours of coursework plus a supervised brokerage internship
• d.14 hours, the same as a continuing-education cycle

Florida's Course I prelicensing education for a sales associate is 63 classroom hours and must be completed before sitting for the state exam. The broker prelicense course is longer at 72 hours. Course hour requirements are set by rule and can change.

What is the minimum passing score on the Florida sales associate state licensing examination?

• a.80%, matching the broker examination standard
• b.70% on each of two separately graded sections
• c.A scaled score set individually for each testing window
• d.75%✓

An applicant must score at least 75 out of 100 to pass the Florida sales associate state exam. The same 75% standard applies to the broker exam. Applicants who fail may retake the exam within the allowed timeframe.

Before a Florida sales associate's initial license expires, the licensee must complete how much post-licensing education?

• a.72 hours, identical to the broker prelicensing requirement
• b.45 hours✓
• c.No additional education until the second renewal period
• d.14 hours of continuing education, the same as every later cycle

A newly licensed Florida sales associate must complete 45 hours of approved post-licensing education before the first license renewal. Failing to do so causes the license to become null and void. This is separate from later continuing education.

After the first renewal, a Florida sales associate must complete how many hours of continuing education each two-year cycle?

• a.14 hours✓
• b.63 hours, repeating the original prelicensing course
• c.45 hours of approved post-licensing coursework
• d.None, provided the license is kept active

After completing post-licensing education, a Florida licensee must take 14 hours of continuing education each two-year renewal cycle, including required law and ethics/business hours. The exact breakdown is set by rule and can change.

A Florida real estate license must be renewed every:

• a.Two years (24 months)✓
• b.Year, on the licensee's birthday
• c.Ten years, unless discipline shortens the period
• d.Five years, matching the broker experience requirement

Florida real estate licenses are issued on a two-year (biennial) renewal cycle. Continuing-education and, for new licensees, post-licensing requirements must be met to renew. Practicing on an expired license is prohibited.

The Florida Real Estate Commission (FREC) is composed of how many members appointed by the Governor?

• a.Nine, including three sitting circuit judges
• b.Seven✓
• c.Eleven, one drawn from each appellate district
• d.Five, all of whom must be active brokers

FREC consists of seven members appointed by the Governor and confirmed by the Senate, including licensed brokers, a broker or sales associate, and consumer members. The exact composition is set in Chapter 475.

FREC operates as part of which state agency?

• a.The Department of Business and Professional Regulation (DBPR)✓
• b.The Florida Department of Financial Services
• c.The U.S. Department of Housing and Urban Development
• d.The real property section of the Florida Bar

FREC functions within the Florida Department of Business and Professional Regulation (DBPR), which provides administrative support and enforcement. FREC handles licensing, rulemaking, and discipline under Chapter 475.

Under FREC rules, a broker who receives an earnest money deposit must place it into the escrow account no later than the end of:

• a.The month in which the purchase contract is signed
• b.Thirty calendar days following the closing date
• c.The third business day after receipt✓
• d.The same business hour in which the funds are received

A Florida broker must deposit trust funds such as earnest money into the escrow account no later than the end of the third business day after receipt. Timely handling of escrow is strictly enforced. Delays can result in discipline.

A Florida sales associate who receives a buyer's earnest money deposit must deliver it to the broker:

• a.Whenever the associate next visits the brokerage office
• b.Within three business days, the same as the broker's deadline
• c.Only after the seller has accepted the offer in writing
• d.By the end of the next business day✓

A sales associate must turn escrow funds over to the employing broker immediately, no later than the end of the next business day. The broker then has until the end of the third business day to deposit them. Associates may not hold escrow funds.

When a broker has conflicting demands on escrowed funds, FREC must be notified in writing within:

• a.24 hours of learning of the dispute
• b.15 business days✓
• c.One full license renewal cycle
• d.30 calendar days after the scheduled closing

A broker with conflicting demands or good-faith doubt about escrowed funds must notify FREC in writing within 15 business days. The broker must then institute a settlement procedure within 30 business days.

After notifying FREC of conflicting escrow demands, a broker must institute a settlement procedure within:

• a.30 business days✓
• b.15 business days, the same as the notice deadline
• c.90 calendar days from the date of the dispute
• d.The end of the current license renewal period

Following the 15-business-day notice to FREC, the broker must institute one of the settlement procedures (EDO, mediation, arbitration, or interpleader) within 30 business days. The broker may not simply keep or arbitrarily release the funds.

The Florida Real Estate Recovery Fund limits reimbursement to how much per single transaction?

• a.The full amount of any uncollected court judgment
• b.$50,000✓
• c.$25,000, regardless of the judgment amount
• d.$150,000, the same as the per-licensee aggregate cap

The Recovery Fund pays a maximum of $50,000 per transaction to reimburse a consumer holding an uncollectible judgment against a licensee. A separate aggregate cap applies per licensee. Payment triggers automatic suspension of that licensee.

The aggregate amount the Recovery Fund will pay for claims against any one licensee is capped at:

• a.$150,000✓
• b.$50,000, matching the single-transaction limit
• c.$500,000 across the licensee's entire career
• d.An unlimited amount until the fund is exhausted

The Recovery Fund limits total payments arising from the acts of a single licensee to $150,000 in the aggregate. Each individual transaction is capped at $50,000. These statutory limits protect the solvency of the fund.

When the Recovery Fund pays a claim on a licensee's behalf, that licensee's license is:

• a.Permanently revoked with no possibility of reinstatement
• b.Downgraded from broker to sales associate status
• c.Automatically suspended until the fund is repaid with interest✓
• d.Unaffected, because the fund exists to protect licensees

Payment from the Recovery Fund results in automatic suspension of the offending licensee's license until the licensee repays the fund in full plus interest. This deters wrongdoing and helps replenish the fund.

The longest period for which FREC may suspend a real estate license is:

• a.An indefinite period at the Commission's discretion
• b.One year for any single violation
• c.10 years✓
• d.Five years, after which revocation becomes automatic

FREC may suspend a license for a maximum of 10 years. More serious violations can lead to revocation, which is more permanent. Penalties are imposed after due process under Chapter 475 and Chapter 455.

FREC may impose an administrative fine of up to what amount for each count of a violation?

• a.$5,000✓
• b.$25,000 aggregated across all counts
• c.$1,000 per license the violator holds
• d.$10,000, but only for a first offense

FREC may levy an administrative fine of up to $5,000 for each count or separate offense. Fines may be combined with suspension, revocation, probation, or other discipline. Amounts are set by statute and can change.

How many statutory duties does a Florida single agent owe to the principal?

• a.Five, the same as a designated sales associate
• b.Ten, including a guarantee of the sale price
• c.Three, the same as a no-brokerage relationship
• d.Seven✓

A single agent owes seven duties: dealing honestly and fairly, loyalty, confidentiality, obedience, full disclosure, accounting for all funds, and skill, care, and diligence. This is the fullest fiduciary relationship allowed in Florida.

Which duty is unique to the transaction broker relationship rather than a single agent relationship?

• a.Obedience to all lawful instructions of the principal
• b.Full fiduciary loyalty to one party
• c.Limited confidentiality✓
• d.A guarantee that the transaction will successfully close

A transaction broker owes limited confidentiality, along with honesty, accounting, disclosure of material facts, and skill and care. It does not owe the full loyalty, obedience, and confidentiality that a single agent owes.

In a no-brokerage relationship, a Florida licensee owes all of the following EXCEPT:

• a.Accounting for all funds entrusted to the licensee
• b.Dealing honestly and fairly
• c.Loyalty and obedience to the customer✓
• d.Disclosing all known facts that materially affect the value of residential property

In a no-brokerage relationship the licensee owes only three duties: honesty and fair dealing, disclosure of known material facts affecting residential value, and accounting for funds. Loyalty and obedience arise only in a single agent relationship.

Under Florida's Chapter 475, dual agency is:

• a.Prohibited✓
• b.Permitted if both parties sign a written consent form
• c.The default relationship presumed with the public
• d.Allowed only in commercial transactions over $1 million

Florida law does not authorize dual agency, in which one licensee fully represents both buyer and seller. Instead, Florida uses single agent, transaction broker (the default), and no-brokerage relationships. Attempting undisclosed dual representation is a violation.

A Florida single agent may change to a transaction broker during a transaction only if:

• a.The broker files a notice with FREC within 15 days
• b.The principal consents before the change✓
• c.The transaction exceeds the designated-sales-associate asset threshold
• d.The buyer and seller are represented by different firms

To transition from single agent to transaction broker, the licensee must obtain the principal's consent, typically through a signed Consent to Transition to Transaction Broker notice, before the change takes effect. Without consent the relationship cannot change.

The single agent notice required in a residential transaction must be:

• a.Recorded in the county's official public records
• b.Delivered orally at the first showing and confirmed later by email
• c.Provided only if the customer specifically asks about representation
• d.In writing, before or when entering into a listing or representation✓

Florida requires the single agent notice to be in writing and given before or at the time of entering into a listing agreement or an agreement to represent a buyer. Proper, timely disclosure of the relationship is mandatory.

A Florida licensee who changes their mailing address must notify the DBPR within:

• a.The next license renewal cycle
• b.30 days, the same as an escrow settlement period
• c.24 hours of the move
• d.10 days✓

A licensee must notify the DBPR of a change in mailing address within 10 days. Keeping current contact information on file is required so official notices reach the licensee. Failing to do so can lead to discipline.

A Florida broker's principal office entrance sign must include the broker's name, any trade name, and the words:

• a.'FREC-Approved Brokerage Office'
• b.'Licensed Real Estate Broker'✓
• c.'Member, National Association of REALTORS'
• d.'Bonded and Insured Real Estate Office'

A broker's entrance sign must show the broker's name (and any registered trade name) together with the words 'Licensed Real Estate Broker' or a permitted abbreviation. This lets the public identify the responsible broker.

'Blind advertising' by a Florida licensee, which is prohibited, is advertising that:

• a.Fails to list the exact square footage of the home
• b.Contains an exaggerated opinion about a property's view
• c.Omits the licensed name of the brokerage firm✓
• d.Is published in a language other than English

Blind advertising conceals the fact that the advertiser is a licensee by leaving out the brokerage's licensed name. Florida requires that advertising include the brokerage name so consumers know they are dealing with a licensed firm.

A Florida broker may pay a share of a real estate commission to:

• a.The buyer directly, as an incentive to close the deal
• b.An unlicensed assistant who showed the property to buyers
• c.Only a properly licensed person✓
• d.Any person who referred the buyer, licensed or not

A broker may share a commission only with a properly licensed person. Paying compensation to an unlicensed person for real estate services is prohibited. Sales associates are paid only through their employing broker.

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.