FLORIDA REAL ESTATE LICENSE LAW
EXAM QUESTIONS WITH CORRECT
ANSWERS
Owner - ANSWER-Exempt when he or she buys, sells, exchanges, or leases own
real estste
Part-Owner - ANSWER-Exempt unless receives a larger share of profits from sale of
partnership real property than proportional investment would justify.
Leasing Agent for Apartment - ANSWER-Exempt if salaried employee, works in on-
site office
Manager of Condominium and Cooperative - ANSWER-Exempt if salaried employee
and if rentals are for periods no greater than 1 year
Attorney-In-Fact - ANSWER-Exempt for purposes of execution of contracts and
conveyances only
Attorney-At-Law - ANSWER-Exempt within scope of his duties as attorney; NOT
exempt when performing services of real estate for compensation, including referral
of clients and prospects.
Court Appointee - ANSWER-Personal Rep., receiver, trustee, Master in Chancery, or
Special Master is exempt when appointed by will or by order of court.
Property Management Firm - ANSWER-may NOT pay a finder's fee of more than
$50 to a tenant of the complex for a rental referral.
Sales Associate - ANSWER-Can perform any act specified in definition of broker but
must perform act under direction, control, or management of another person.
Broker - ANSWER-Provide A BAR SALE service for another for compensation;
including general partner of real estate brokerage partnership; officer or director of a
real estate brokerage cooperation.
Prima Facie Evidence - ANSWER-"On its face" a document or an action is presumed
to be true; may be refuted in court by evidence to the contrary.
Registration - ANSWER-Status: Having name and address in computer; all persons
holding licensure also have registration but not all persons having registration hold
licensure.
Licensure - ANSWER-Status: Having name in computer qualifying a person as a
broker or sales associate; the right to ask for license; status obtained by passing
state exam.
,Real Estate License Required IF - ANSWER-Person performs A BAR SALE service,
involving real estate in Florida, FOR ANOTHER FOR COMPENSATION or the
implied intent to collect compensation UNLESS specifically exempt.
A BAR SALE service - ANSWER-Advertise, Buy, Appraise, Rent, Sell, Auction,
Lease, and Exchange
Legal Presumption - ANSWER-A person who sells or leases real estate which he or
she does not own is presumed to be acting as a broker or sales associate; burden of
proof is on such person to show not acting as broker or sales associate.
Contract to Employ Unlicensed Person - ANSWER-Contract to permit unlicensed
person to sell or lease real estate is null and void.
Real Estate for purpose of Lincensure - ANSWER-Any interest or estate in land; any
interest in business enterprise or opportunity; including assignment, lease,
leasehold, sublease hold, or mineral right; timeshares.
NOT Real Estate for Lincensure - ANSWER-Cemetery lot; renting of mobile home lot
in mobile home park.
Compensation to foreign Broker - ANSWER-Not violation if paid by Florida broker to
foreign broker and foreign broker does not violate any law of Florida; foreign broker
may pay compensation to Florida broker.
Classification of Individual Licenses - ANSWER-Broker, Sales Associate, Broker-
Associate
Owner-Developer - ANSWER-Unlicensed entity which sells, exchanges, or leases its
own property.
Qualifications for Practice - ANSWER-18 years of age; high school diploma; no
residency required; US citizenship required; MUST have social security number;
person of good character; not operated in violation of Chapter 475 within one year
prior to application.
Changing Address of Licensee - ANSWER-Notify FREC of change in mailing
address within 10 days; must notify DBPR within 60days of change in state
residency.
Applicant not Qualified IF - ANSWER-Had license denied, suspended or revoked in
any regulated profession in Florida or any other state, nation, possession, or district
of the United States; FREC can approve application if lapse of time, good conduct,
and public will not likely be endangered.
Education Pre-Requisite for Sales Associate - ANSWER-Completion of Course I (63
hrs)
Exempt: college grad with real estate degree, active member of Florida Bar
, Education Pre-Requisite - ANSWER-Completion of Course II (72 hrs);must also
complete 45 hr sales associate post license course prior to Course II
Disclosures on Application - ANSWER-Convictions resulting from legal proceedings
against applicant; treatment for mental illness; completed action against real estate
licensee by licensing agency of another state.
Group License - ANSWER-Owner-developers
Multiple License - ANSWER-Brokers registering multiple offices
Contract for Compensation - ANSWER-No contract for commission valid unless
licensee has active status at time act or service was performed; may be paid while
holding inactive status.
Void License Status - ANSWER-Null and void due to 1) failure to complete post
license course or has been expired for more than 2 years 2) revoked by FREC 3)
Cancelled by FREC by request of licensee
Ineffective License Status - ANSWER-Has license but cannot use it; voluntarily
inactive, involuntarily inactive or suspended by FREC.
Voluntary Inactive - ANSWER-Licensee has requested inactive status; license may
be activated upon request; licensed may renew as inactive indefinitely
Involuntary Inactive - ANSWER-status after license is not renewed after 2 years
Post License Education for Sales Associate - ANSWER-45 classroom hours prior to
renewal
Post License Education for Broker - ANSWER-60 classroom hours prior to first
renewal
Continuing Education - ANSWER-14 Hours during each biennial license period,
excluding first renewal period; applies to active and inactive brokers and SA
Authorized Forms of Broker Representation - ANSWER-Single agent or transaction
broker; license may change form of representation
Disclosure Requirements - ANSWER-Apply ONLY to residential sales
Presumption of Transaction Brokerage - ANSWER-All licensees presumed to be
transaction brokers unless disclosed otherwise.
Transaction Broker Relationship - ANSWER-Provides a limited form of
representation to a buyer, a seller, or both but does NOT represent either in a
fiduciary capacity.
Limited Representation - ANSWER-Buyer or seller NOT responsible for acts of
licensee
EXAM QUESTIONS WITH CORRECT
ANSWERS
Owner - ANSWER-Exempt when he or she buys, sells, exchanges, or leases own
real estste
Part-Owner - ANSWER-Exempt unless receives a larger share of profits from sale of
partnership real property than proportional investment would justify.
Leasing Agent for Apartment - ANSWER-Exempt if salaried employee, works in on-
site office
Manager of Condominium and Cooperative - ANSWER-Exempt if salaried employee
and if rentals are for periods no greater than 1 year
Attorney-In-Fact - ANSWER-Exempt for purposes of execution of contracts and
conveyances only
Attorney-At-Law - ANSWER-Exempt within scope of his duties as attorney; NOT
exempt when performing services of real estate for compensation, including referral
of clients and prospects.
Court Appointee - ANSWER-Personal Rep., receiver, trustee, Master in Chancery, or
Special Master is exempt when appointed by will or by order of court.
Property Management Firm - ANSWER-may NOT pay a finder's fee of more than
$50 to a tenant of the complex for a rental referral.
Sales Associate - ANSWER-Can perform any act specified in definition of broker but
must perform act under direction, control, or management of another person.
Broker - ANSWER-Provide A BAR SALE service for another for compensation;
including general partner of real estate brokerage partnership; officer or director of a
real estate brokerage cooperation.
Prima Facie Evidence - ANSWER-"On its face" a document or an action is presumed
to be true; may be refuted in court by evidence to the contrary.
Registration - ANSWER-Status: Having name and address in computer; all persons
holding licensure also have registration but not all persons having registration hold
licensure.
Licensure - ANSWER-Status: Having name in computer qualifying a person as a
broker or sales associate; the right to ask for license; status obtained by passing
state exam.
,Real Estate License Required IF - ANSWER-Person performs A BAR SALE service,
involving real estate in Florida, FOR ANOTHER FOR COMPENSATION or the
implied intent to collect compensation UNLESS specifically exempt.
A BAR SALE service - ANSWER-Advertise, Buy, Appraise, Rent, Sell, Auction,
Lease, and Exchange
Legal Presumption - ANSWER-A person who sells or leases real estate which he or
she does not own is presumed to be acting as a broker or sales associate; burden of
proof is on such person to show not acting as broker or sales associate.
Contract to Employ Unlicensed Person - ANSWER-Contract to permit unlicensed
person to sell or lease real estate is null and void.
Real Estate for purpose of Lincensure - ANSWER-Any interest or estate in land; any
interest in business enterprise or opportunity; including assignment, lease,
leasehold, sublease hold, or mineral right; timeshares.
NOT Real Estate for Lincensure - ANSWER-Cemetery lot; renting of mobile home lot
in mobile home park.
Compensation to foreign Broker - ANSWER-Not violation if paid by Florida broker to
foreign broker and foreign broker does not violate any law of Florida; foreign broker
may pay compensation to Florida broker.
Classification of Individual Licenses - ANSWER-Broker, Sales Associate, Broker-
Associate
Owner-Developer - ANSWER-Unlicensed entity which sells, exchanges, or leases its
own property.
Qualifications for Practice - ANSWER-18 years of age; high school diploma; no
residency required; US citizenship required; MUST have social security number;
person of good character; not operated in violation of Chapter 475 within one year
prior to application.
Changing Address of Licensee - ANSWER-Notify FREC of change in mailing
address within 10 days; must notify DBPR within 60days of change in state
residency.
Applicant not Qualified IF - ANSWER-Had license denied, suspended or revoked in
any regulated profession in Florida or any other state, nation, possession, or district
of the United States; FREC can approve application if lapse of time, good conduct,
and public will not likely be endangered.
Education Pre-Requisite for Sales Associate - ANSWER-Completion of Course I (63
hrs)
Exempt: college grad with real estate degree, active member of Florida Bar
, Education Pre-Requisite - ANSWER-Completion of Course II (72 hrs);must also
complete 45 hr sales associate post license course prior to Course II
Disclosures on Application - ANSWER-Convictions resulting from legal proceedings
against applicant; treatment for mental illness; completed action against real estate
licensee by licensing agency of another state.
Group License - ANSWER-Owner-developers
Multiple License - ANSWER-Brokers registering multiple offices
Contract for Compensation - ANSWER-No contract for commission valid unless
licensee has active status at time act or service was performed; may be paid while
holding inactive status.
Void License Status - ANSWER-Null and void due to 1) failure to complete post
license course or has been expired for more than 2 years 2) revoked by FREC 3)
Cancelled by FREC by request of licensee
Ineffective License Status - ANSWER-Has license but cannot use it; voluntarily
inactive, involuntarily inactive or suspended by FREC.
Voluntary Inactive - ANSWER-Licensee has requested inactive status; license may
be activated upon request; licensed may renew as inactive indefinitely
Involuntary Inactive - ANSWER-status after license is not renewed after 2 years
Post License Education for Sales Associate - ANSWER-45 classroom hours prior to
renewal
Post License Education for Broker - ANSWER-60 classroom hours prior to first
renewal
Continuing Education - ANSWER-14 Hours during each biennial license period,
excluding first renewal period; applies to active and inactive brokers and SA
Authorized Forms of Broker Representation - ANSWER-Single agent or transaction
broker; license may change form of representation
Disclosure Requirements - ANSWER-Apply ONLY to residential sales
Presumption of Transaction Brokerage - ANSWER-All licensees presumed to be
transaction brokers unless disclosed otherwise.
Transaction Broker Relationship - ANSWER-Provides a limited form of
representation to a buyer, a seller, or both but does NOT represent either in a
fiduciary capacity.
Limited Representation - ANSWER-Buyer or seller NOT responsible for acts of
licensee
