Gold Coast School Real Estate Exam
Practice Questions And Correct Answers
(Verified Answers) Plus Rationales 2025
Q&A | Instant Download PDF
1. What is the primary purpose of the Florida Real Estate Commission
(FREC)?
A. To set mortgage interest rates
B. To enforce criminal penalties on real estate agents
C. To protect the public through regulation of real estate
professionals
D. To regulate homeowners’ associations
FREC’s role is to regulate licensees and protect the public by ensuring
competent real estate practices.
2. Which type of agent has the broadest authority to act on behalf of the
principal?
A. Special agent
, B. Transaction broker
C. Universal agent
D. General agent
A universal agent can act on behalf of a principal in all matters.
3. What type of listing allows a seller to employ multiple brokers but only
pay the one who sells the property?
A. Exclusive right of sale
B. Exclusive agency
C. Open listing
D. Net listing
An open listing allows multiple brokers, but only the procuring cause
earns commission.
4. A buyer makes an offer to a seller. The seller changes one term and
sends it back. What is this called?
A. Acceptance
B. Counteroffer
C. Rejection
D. Consideration
A counteroffer terminates the original offer and proposes new terms.
5. A broker manages a property for the owner and collects rent. What
type of agent is the broker?
A. Special
B. General
, C. Dual
D. Universal
A general agent handles ongoing business for a client, such as
property management.
6. What is required before a licensee may operate as a broker?
A. Must be at least 25 years old
B. Must have 24 months of active sales associate experience within
the past 5 years
C. Must pass a criminal background check
D. Must submit 5 letters of recommendation
Florida requires 24 months of active experience within the preceding
5 years.
7. What is commingling?
A. Charging excessive commissions
B. Mixing personal funds with client funds
C. Paying referral fees
D. Practicing without a license
Commingling is illegally mixing escrow funds with personal or
business funds.
8. When must earnest money be deposited by the broker into the
escrow account?
A. Immediately
B. Within 3 business days
, C. Within 5 calendar days
D. Within 10 days
Florida law requires brokers to deposit escrow funds within 3
business days.
9. Which type of deed provides the most protection to the grantee?
A. Bargain and sale deed
B. Quitclaim deed
C. General warranty deed
D. Special warranty deed
A general warranty deed provides full assurances of title and
warranties.
10. What is the legal test most commonly used to determine if
something is a fixture?
A. Durability
B. Portability
C. Intent of the parties
D. Cost of the item
Intent is a key factor in determining if an item is a fixture.
11. A property sold for $275,000 with a 6% commission. How much
commission does the broker earn?
A. $13,000
B. $16,500
Practice Questions And Correct Answers
(Verified Answers) Plus Rationales 2025
Q&A | Instant Download PDF
1. What is the primary purpose of the Florida Real Estate Commission
(FREC)?
A. To set mortgage interest rates
B. To enforce criminal penalties on real estate agents
C. To protect the public through regulation of real estate
professionals
D. To regulate homeowners’ associations
FREC’s role is to regulate licensees and protect the public by ensuring
competent real estate practices.
2. Which type of agent has the broadest authority to act on behalf of the
principal?
A. Special agent
, B. Transaction broker
C. Universal agent
D. General agent
A universal agent can act on behalf of a principal in all matters.
3. What type of listing allows a seller to employ multiple brokers but only
pay the one who sells the property?
A. Exclusive right of sale
B. Exclusive agency
C. Open listing
D. Net listing
An open listing allows multiple brokers, but only the procuring cause
earns commission.
4. A buyer makes an offer to a seller. The seller changes one term and
sends it back. What is this called?
A. Acceptance
B. Counteroffer
C. Rejection
D. Consideration
A counteroffer terminates the original offer and proposes new terms.
5. A broker manages a property for the owner and collects rent. What
type of agent is the broker?
A. Special
B. General
, C. Dual
D. Universal
A general agent handles ongoing business for a client, such as
property management.
6. What is required before a licensee may operate as a broker?
A. Must be at least 25 years old
B. Must have 24 months of active sales associate experience within
the past 5 years
C. Must pass a criminal background check
D. Must submit 5 letters of recommendation
Florida requires 24 months of active experience within the preceding
5 years.
7. What is commingling?
A. Charging excessive commissions
B. Mixing personal funds with client funds
C. Paying referral fees
D. Practicing without a license
Commingling is illegally mixing escrow funds with personal or
business funds.
8. When must earnest money be deposited by the broker into the
escrow account?
A. Immediately
B. Within 3 business days
, C. Within 5 calendar days
D. Within 10 days
Florida law requires brokers to deposit escrow funds within 3
business days.
9. Which type of deed provides the most protection to the grantee?
A. Bargain and sale deed
B. Quitclaim deed
C. General warranty deed
D. Special warranty deed
A general warranty deed provides full assurances of title and
warranties.
10. What is the legal test most commonly used to determine if
something is a fixture?
A. Durability
B. Portability
C. Intent of the parties
D. Cost of the item
Intent is a key factor in determining if an item is a fixture.
11. A property sold for $275,000 with a 6% commission. How much
commission does the broker earn?
A. $13,000
B. $16,500
