GOLD COAST PRACTICE FINAL
EXAM 2026-2027 QUESTIONS AND
ANSWERS (GRADED A+)
When must a written No Brokerage Relationship (nonrepresentation) Notice be
provided to customers?
a. Immediately upon the signing of a listing agreement
b. At an open house when providing a brochure containing information about the
property
c. Before showing homes that are listed
d. In every real estate transaction
Reference: Ch. 4, Authorized Real Estate Brokerage Relationships,
Nonrepresentation (No Brokerage Relationship) - ANSWER-Before showing homes
that are listed
Which of the following cannot be used by the Federal Reserve to change or control
the money supply?
a. Change the discount rate
b. Alter income tax rates
c. Increase or decrease the reserve requirement
d. Buy or sell government notes
Reference: Ch. 13, Federal Reserve System - ANSWER-Alter income tax rates
A broker has an exclusive right of sale listing to sell an owner's property, with no
other authority granted. What type of agency does the broker have with the
principal?
a. General agency
b. Special agency
c. Universal agency
d. Trusteeship
Reference: Ch. 4, Agency Law; Ch. 11, Listing Contracts - ANSWER-Special agency
A licensee is being disciplined by the FREC for multiple violations of F.S. 475. Which
penalty may the Commission NOT impose?
a. Revocation
b. Suspension for up to 10 years
c. A fine not to exceed $5,000 per offense
d. Imprisonment not to exceed one year
,Reference: Ch. 6, Administrative Penalties, Range of Penalties - ANSWER-
Imprisonment not to exceed one year
A judgment is awarded against a licensee for $100,000. What is the maximum the
complainant may be compensated from the Real Estate Recovery Fund?
a. 25%
b. 50%
c. 75%
d. 100%
Reference: Ch. 6, The Disciplinary Process, Florida Real Estate Recovery Fund -
ANSWER-50%
6. What term is applied to the practice of keeping low-income people out of a
particular neighborhood?
a. Income zoning
b. Exclusionary zoning
c. Nonconforming use
d. Subdivision exception
Reference: Ch. 19, Zoning, Land Use Restrictions, and Building Codes, Purpose of
Zoning - ANSWER-Exclusionary zoning
7. Complete this statement. A transaction broker _______________.
a. Owes full disclosure to both parties
b. Owes limited confidentiality to both parties
c. Must be compensated by both parties
d. Cannot work in a nonresidential transaction
Reference: Ch. 4, Authorized Real Estate Brokerage Relationships, Transaction
Broker - ANSWER-Owes limited confidentiality to both parties
8. Broker Jones committed fraud in a real estate transaction that involved six
investors in a limited partnership. What is the maximum recovery possible from the
Real Estate Recovery Fund for a single judgment against the broker as a result of
this fraudulent activity?
a. $25,000
b. $30,000
c. $50,000
d. $150,000
Reference: Ch. 6, The Disciplinary Process, Florida Real Estate Recovery Fund -
ANSWER-$50,000
, A mortgagor defaulted on their loan payments. The lender foreclosed on the
property. Some states allow the party that was foreclosed the right to redeem the
property following foreclosure. What is the term used to describe this right?
a. Statutory right of redemption
b. Equitable right of redemption
c. Due-on-sale redemption
d. Declaratory redemption
Reference: Ch. 12, Default - ANSWER-Statutory right of redemption
The sales comparison approach usually CANNOT be used when estimating the
value of which of the following?
a. Income-producing industrial property
b. Income-producing commercial property
c. Residential property
d. Special-purpose properties
Reference: Ch. 16, Three Approaches to Value, Sales Comparison Approach -
ANSWER-Special-purpose properties
How do expenses appear on closing documents?
a. Prorated between parties
b. Always entered as double entries
c. Always entered as debit entries
d. Entered as disbursements
Reference: Ch. 14, Section 3 - Expenses - ANSWER-Always entered as debit
entries
The original mortgagor is NOT released from liability if title to real property is taken
by what?
a. As a result of a short sale
b. Foreclosure of the mortgage
c. Novation of the mortgage
d. Subject to the mortgage
Reference: Ch. 12, Methods of Purchasing Mortgaged Property - ANSWER-Subject
to the mortgage
What is the purpose of the Closing Disclosure?
a. To verify the terms of the contract
b. To provide a source of income for closing agents
c. To provide the final details of loan terms, fees, and closing costs
d. To inform each party the closing costs to be charged to the other
EXAM 2026-2027 QUESTIONS AND
ANSWERS (GRADED A+)
When must a written No Brokerage Relationship (nonrepresentation) Notice be
provided to customers?
a. Immediately upon the signing of a listing agreement
b. At an open house when providing a brochure containing information about the
property
c. Before showing homes that are listed
d. In every real estate transaction
Reference: Ch. 4, Authorized Real Estate Brokerage Relationships,
Nonrepresentation (No Brokerage Relationship) - ANSWER-Before showing homes
that are listed
Which of the following cannot be used by the Federal Reserve to change or control
the money supply?
a. Change the discount rate
b. Alter income tax rates
c. Increase or decrease the reserve requirement
d. Buy or sell government notes
Reference: Ch. 13, Federal Reserve System - ANSWER-Alter income tax rates
A broker has an exclusive right of sale listing to sell an owner's property, with no
other authority granted. What type of agency does the broker have with the
principal?
a. General agency
b. Special agency
c. Universal agency
d. Trusteeship
Reference: Ch. 4, Agency Law; Ch. 11, Listing Contracts - ANSWER-Special agency
A licensee is being disciplined by the FREC for multiple violations of F.S. 475. Which
penalty may the Commission NOT impose?
a. Revocation
b. Suspension for up to 10 years
c. A fine not to exceed $5,000 per offense
d. Imprisonment not to exceed one year
,Reference: Ch. 6, Administrative Penalties, Range of Penalties - ANSWER-
Imprisonment not to exceed one year
A judgment is awarded against a licensee for $100,000. What is the maximum the
complainant may be compensated from the Real Estate Recovery Fund?
a. 25%
b. 50%
c. 75%
d. 100%
Reference: Ch. 6, The Disciplinary Process, Florida Real Estate Recovery Fund -
ANSWER-50%
6. What term is applied to the practice of keeping low-income people out of a
particular neighborhood?
a. Income zoning
b. Exclusionary zoning
c. Nonconforming use
d. Subdivision exception
Reference: Ch. 19, Zoning, Land Use Restrictions, and Building Codes, Purpose of
Zoning - ANSWER-Exclusionary zoning
7. Complete this statement. A transaction broker _______________.
a. Owes full disclosure to both parties
b. Owes limited confidentiality to both parties
c. Must be compensated by both parties
d. Cannot work in a nonresidential transaction
Reference: Ch. 4, Authorized Real Estate Brokerage Relationships, Transaction
Broker - ANSWER-Owes limited confidentiality to both parties
8. Broker Jones committed fraud in a real estate transaction that involved six
investors in a limited partnership. What is the maximum recovery possible from the
Real Estate Recovery Fund for a single judgment against the broker as a result of
this fraudulent activity?
a. $25,000
b. $30,000
c. $50,000
d. $150,000
Reference: Ch. 6, The Disciplinary Process, Florida Real Estate Recovery Fund -
ANSWER-$50,000
, A mortgagor defaulted on their loan payments. The lender foreclosed on the
property. Some states allow the party that was foreclosed the right to redeem the
property following foreclosure. What is the term used to describe this right?
a. Statutory right of redemption
b. Equitable right of redemption
c. Due-on-sale redemption
d. Declaratory redemption
Reference: Ch. 12, Default - ANSWER-Statutory right of redemption
The sales comparison approach usually CANNOT be used when estimating the
value of which of the following?
a. Income-producing industrial property
b. Income-producing commercial property
c. Residential property
d. Special-purpose properties
Reference: Ch. 16, Three Approaches to Value, Sales Comparison Approach -
ANSWER-Special-purpose properties
How do expenses appear on closing documents?
a. Prorated between parties
b. Always entered as double entries
c. Always entered as debit entries
d. Entered as disbursements
Reference: Ch. 14, Section 3 - Expenses - ANSWER-Always entered as debit
entries
The original mortgagor is NOT released from liability if title to real property is taken
by what?
a. As a result of a short sale
b. Foreclosure of the mortgage
c. Novation of the mortgage
d. Subject to the mortgage
Reference: Ch. 12, Methods of Purchasing Mortgaged Property - ANSWER-Subject
to the mortgage
What is the purpose of the Closing Disclosure?
a. To verify the terms of the contract
b. To provide a source of income for closing agents
c. To provide the final details of loan terms, fees, and closing costs
d. To inform each party the closing costs to be charged to the other
