Florida Real Estate Exam Manual (10th Edition) –
Complete State Portion Exam Review & Law Cheat Sheets
Course Code: FREC
Course Name: Florida Real Estate Exam Manual (10th Edition)
Topic: Florida Real Estate License Law, FREC Regulations, Chapter 475,
Brokerage Operations, Florida-Specific Agency Relationships, Brokerage
Relationship Disclosure Act, Fiduciary Duties, Comprehensive Florida Real
Estate Principles, Licensure States, and Practice Questions
Academic Year: 2026/2027
1. Category: Brokerage Operations - Escrow Deposit Timelines
A sales associate receives an earnest money check from a prospective buyer
at 10:00 AM on Tuesday. According to Florida Statute Chapter 475, by
what specific deadline must the sales associate deliver this check to their
employing broker, and by what deadline must the broker deposit it into a
Florida escrow account?
A) The sales associate must deliver it by Wednesday, and the broker must
deposit it by Thursday.
B) The sales associate must deliver it by the end of the next business day
(Wednesday), and the broker must deposit it by the end of the third
business day following receipt (Friday).
C) The sales associate must deliver it immediately within 2 hours, and the
, broker has 5 calendar days to clear the funds.
D) The sales associate must deliver it by Friday, and the broker must deposit
it by the following Monday.
CORRECT ANSWER: B
RATIONALE: Under Florida Administrative Code Rule 61J2-14.008,
a sales associate must deliver any trust funds or earnest money deposits to
their employing broker no later than the end of the next business day
following receipt. The broker must deposit these funds into a designated
Florida escrow account no later than the end of the third business day
following the date the sales associate originally received the funds. Tuesday
is Day 0, Wednesday is Day 1 (associate deadline), Thursday is Day 2, and
Friday is Day 3 (broker deposit deadline). Options A, C, and D reflect
legally non-compliant timelines under Florida license law.
2. Category: Brokerage Operations - Conflicting Demands and Escrow
Dispute Notification
A Florida real estate broker holds an earnest money deposit in their escrow
account. The sales contract fails to close, and both the buyer and the seller
submit written demands claiming the funds. According to the Florida Real
Estate Commission (FREC) rules, how many business days does the broker
have to notify FREC in writing of these conflicting demands, and how
many total days do they have to implement an escrow dispute settlement
procedure?
A) 10 business days to notify; 20 calendar days to implement a settlement.
B) 15 business days to notify FREC in writing; 30 business days from
receipt of the conflicting demands to implement a settlement procedure.
C) 5 business days to notify FREC; 15 business days to file an interpleader
lawsuit.
D) 30 calendar days to notify FREC; 60 calendar days to hire a private
arbitrator.
CORRECT ANSWER: B
RATIONALE: Florida Real Estate License Law (Chapter 475)
dictates that when a broker encounters conflicting demands over escrowed
property, they must notify the Florida Real Estate Commission (FREC) in
writing within 15 business days of the last party's demand. Furthermore, the
broker must institute one of the four mandated escrow dispute settlement
, procedures (Mediation, Arbitration, Litigation via interpleader/declaratory
decree, or an Escrow Disbursement Order) within 30 business days of the
initial demand receipt. Options A, C, and D represent incorrect statutory
time limits.
3. Category: Real Estate License Law - Administrative Address Change
Notifications
A licensed Florida sales associate decides to move their primary personal
residence to a new house across town, and they also change their employing
brokerage firm. Under Florida Department of Business and Professional
Regulation (DBPR) rules, within how many days must the licensee notify
the DBPR of their change of current mailing address to avoid an
administrative fine and an automatic inactive license status status?
A) Within 30 days using a certified mail document.
B) Within 10 days of the change using the online portal or official DBPR
forms.
C) Within 5 business days to prevent immediate license revocation.
D) Within 45 calendar days or by the next biennial license renewal date.
CORRECT ANSWER: B
RATIONALE: Florida Statute Section 455.275 dictates that any
licensed professional or real estate agent must notify the DBPR of a change
in their current mailing address or primary place of business within 10
days of the change. Failure to notify the DBPR within this statutory
timeframe can result in a citation, an administrative fine, and will cause the
license to enter a cease to be in force status. Options A, C, and D do not
comply with Florida's strict 10-day structural notification window.
4. Category: Brokerage Operations - Advertising and Blind
Advertisements
A sales associate wants to place a digital advertisement on a popular social
media platform to market a new residential listing. To ensure compliance
with FREC advertising regulations, which information must be clearly
displayed in the ad to avoid creating an illegal blind advertisement?
A) The personal cell phone number of the sales associate and their home
address exclusively.
B) The licensed name of the real estate brokerage firm that employs the
sales associate.
, C) The exact dollar percentage split of the broker-agent commission matrix.
D) The structural building blueprint designs and the county property tax ID
number.
CORRECT ANSWER: B
RATIONALE: Florida Administrative Code Rule 61J2-10.025 dictates
that all real estate advertising must be clear and constructed so that a
reasonable person knows they are dealing with a licensed professional.
Every ad must explicitly include the licensed name of the real estate
brokerage firm. Advertisements that fail to disclose the brokerage firm's
name are classified as illegal blind advertisements. While a sales
associate's name or contact info can be included (Option A), the brokerage
name is the mandatory element. Options C and D are not advertising legal
requirements.
5. Category: Real Estate License Law - The Real Estate Recovery Fund
A consumer wins a civil judgment against a licensed Florida real estate
broker for monetary damages stemming from a fraudulent transaction. The
broker is unable to pay, and the consumer collects a financial payout from
the Florida Real Estate Recovery Fund. According to Florida Chapter
475, what automatic administrative action occurs to the broker's real estate
license upon payment from the fund?
A) The license is placed on administrative probation for a period of 12
months.
B) The broker's license is automatically suspended until they repay the
fund in full plus accrued interest.
C) The license is downgraded to an inactive sales associate status
permanently.
D) The broker is required to retake the 63-hour pre-licensing education
course within 30 days.
CORRECT ANSWER: B
RATIONALE: Under Florida Statute Section 475.484, if a payout is
made from the Real Estate Recovery Fund to satisfy a civil judgment
against a licensee, the license is automatically suspended as a matter of
law upon the date of payment from the fund. The suspension cannot be
lifted, and the license cannot be reinstated or renewed, until the licensee
repays the fund in full, including the total claim amount plus accrued
Complete State Portion Exam Review & Law Cheat Sheets
Course Code: FREC
Course Name: Florida Real Estate Exam Manual (10th Edition)
Topic: Florida Real Estate License Law, FREC Regulations, Chapter 475,
Brokerage Operations, Florida-Specific Agency Relationships, Brokerage
Relationship Disclosure Act, Fiduciary Duties, Comprehensive Florida Real
Estate Principles, Licensure States, and Practice Questions
Academic Year: 2026/2027
1. Category: Brokerage Operations - Escrow Deposit Timelines
A sales associate receives an earnest money check from a prospective buyer
at 10:00 AM on Tuesday. According to Florida Statute Chapter 475, by
what specific deadline must the sales associate deliver this check to their
employing broker, and by what deadline must the broker deposit it into a
Florida escrow account?
A) The sales associate must deliver it by Wednesday, and the broker must
deposit it by Thursday.
B) The sales associate must deliver it by the end of the next business day
(Wednesday), and the broker must deposit it by the end of the third
business day following receipt (Friday).
C) The sales associate must deliver it immediately within 2 hours, and the
, broker has 5 calendar days to clear the funds.
D) The sales associate must deliver it by Friday, and the broker must deposit
it by the following Monday.
CORRECT ANSWER: B
RATIONALE: Under Florida Administrative Code Rule 61J2-14.008,
a sales associate must deliver any trust funds or earnest money deposits to
their employing broker no later than the end of the next business day
following receipt. The broker must deposit these funds into a designated
Florida escrow account no later than the end of the third business day
following the date the sales associate originally received the funds. Tuesday
is Day 0, Wednesday is Day 1 (associate deadline), Thursday is Day 2, and
Friday is Day 3 (broker deposit deadline). Options A, C, and D reflect
legally non-compliant timelines under Florida license law.
2. Category: Brokerage Operations - Conflicting Demands and Escrow
Dispute Notification
A Florida real estate broker holds an earnest money deposit in their escrow
account. The sales contract fails to close, and both the buyer and the seller
submit written demands claiming the funds. According to the Florida Real
Estate Commission (FREC) rules, how many business days does the broker
have to notify FREC in writing of these conflicting demands, and how
many total days do they have to implement an escrow dispute settlement
procedure?
A) 10 business days to notify; 20 calendar days to implement a settlement.
B) 15 business days to notify FREC in writing; 30 business days from
receipt of the conflicting demands to implement a settlement procedure.
C) 5 business days to notify FREC; 15 business days to file an interpleader
lawsuit.
D) 30 calendar days to notify FREC; 60 calendar days to hire a private
arbitrator.
CORRECT ANSWER: B
RATIONALE: Florida Real Estate License Law (Chapter 475)
dictates that when a broker encounters conflicting demands over escrowed
property, they must notify the Florida Real Estate Commission (FREC) in
writing within 15 business days of the last party's demand. Furthermore, the
broker must institute one of the four mandated escrow dispute settlement
, procedures (Mediation, Arbitration, Litigation via interpleader/declaratory
decree, or an Escrow Disbursement Order) within 30 business days of the
initial demand receipt. Options A, C, and D represent incorrect statutory
time limits.
3. Category: Real Estate License Law - Administrative Address Change
Notifications
A licensed Florida sales associate decides to move their primary personal
residence to a new house across town, and they also change their employing
brokerage firm. Under Florida Department of Business and Professional
Regulation (DBPR) rules, within how many days must the licensee notify
the DBPR of their change of current mailing address to avoid an
administrative fine and an automatic inactive license status status?
A) Within 30 days using a certified mail document.
B) Within 10 days of the change using the online portal or official DBPR
forms.
C) Within 5 business days to prevent immediate license revocation.
D) Within 45 calendar days or by the next biennial license renewal date.
CORRECT ANSWER: B
RATIONALE: Florida Statute Section 455.275 dictates that any
licensed professional or real estate agent must notify the DBPR of a change
in their current mailing address or primary place of business within 10
days of the change. Failure to notify the DBPR within this statutory
timeframe can result in a citation, an administrative fine, and will cause the
license to enter a cease to be in force status. Options A, C, and D do not
comply with Florida's strict 10-day structural notification window.
4. Category: Brokerage Operations - Advertising and Blind
Advertisements
A sales associate wants to place a digital advertisement on a popular social
media platform to market a new residential listing. To ensure compliance
with FREC advertising regulations, which information must be clearly
displayed in the ad to avoid creating an illegal blind advertisement?
A) The personal cell phone number of the sales associate and their home
address exclusively.
B) The licensed name of the real estate brokerage firm that employs the
sales associate.
, C) The exact dollar percentage split of the broker-agent commission matrix.
D) The structural building blueprint designs and the county property tax ID
number.
CORRECT ANSWER: B
RATIONALE: Florida Administrative Code Rule 61J2-10.025 dictates
that all real estate advertising must be clear and constructed so that a
reasonable person knows they are dealing with a licensed professional.
Every ad must explicitly include the licensed name of the real estate
brokerage firm. Advertisements that fail to disclose the brokerage firm's
name are classified as illegal blind advertisements. While a sales
associate's name or contact info can be included (Option A), the brokerage
name is the mandatory element. Options C and D are not advertising legal
requirements.
5. Category: Real Estate License Law - The Real Estate Recovery Fund
A consumer wins a civil judgment against a licensed Florida real estate
broker for monetary damages stemming from a fraudulent transaction. The
broker is unable to pay, and the consumer collects a financial payout from
the Florida Real Estate Recovery Fund. According to Florida Chapter
475, what automatic administrative action occurs to the broker's real estate
license upon payment from the fund?
A) The license is placed on administrative probation for a period of 12
months.
B) The broker's license is automatically suspended until they repay the
fund in full plus accrued interest.
C) The license is downgraded to an inactive sales associate status
permanently.
D) The broker is required to retake the 63-hour pre-licensing education
course within 30 days.
CORRECT ANSWER: B
RATIONALE: Under Florida Statute Section 475.484, if a payout is
made from the Real Estate Recovery Fund to satisfy a civil judgment
against a licensee, the license is automatically suspended as a matter of
law upon the date of payment from the fund. The suspension cannot be
lifted, and the license cannot be reinstated or renewed, until the licensee
repays the fund in full, including the total claim amount plus accrued
