FREC 4 Exam Questions And Correct
Answers (Verified Answers) Plus Rationales
2027 Q&A | Instant Download Pdf
1. Which Florida law primarily governs the licensing of real estate
professionals?
A. Chapter 455, Florida Statutes
B. Chapter 475, Florida Statutes
C. Chapter 83, Florida Statutes
D. Chapter 61, Florida Statutes
Answer: B. Chapter 475, Florida Statutes
Rationale: Chapter 475, Florida Statutes, is known as the Florida Real
Estate License Law and establishes licensing requirements, duties, and
disciplinary procedures for real estate professionals.
2. What is the primary purpose of the Florida Real Estate
Commission (FREC)?
,A. Collect property taxes
B. Issue building permits
C. Regulate and enforce real estate license laws
D. Appraise residential properties
Answer: C. Regulate and enforce real estate license laws
Rationale: FREC administers and enforces Chapter 475, ensuring that
licensees meet educational standards and comply with Florida real
estate laws.
3. Which duty is considered fiduciary in nature?
A. Estimating property taxes
B. Loyalty to the principal
C. Performing inspections
D. Recording deeds
Answer: B. Loyalty to the principal
Rationale: Fiduciary duties include loyalty, obedience, confidentiality,
accounting, disclosure, and reasonable care, all of which protect the
interests of the principal.
, 4. Which type of listing gives one broker the exclusive right to earn a
commission regardless of who finds the buyer?
A. Open listing
B. Net listing
C. Exclusive-right-of-sale listing
D. Option listing
Answer: C. Exclusive-right-of-sale listing
Rationale: Under an exclusive-right-of-sale listing, the broker earns a
commission if the property sells during the listing period, regardless of
who procures the buyer.
5. Which form of ownership includes the right of survivorship?
A. Tenancy in common
B. Sole ownership
C. Joint tenancy
D. Life estate
Answer: C. Joint tenancy
Rationale: Joint tenancy includes the right of survivorship, meaning
ownership automatically transfers to surviving joint tenants upon a
tenant's death.
, 6. What does "actual notice" mean?
A. Information recorded in public records
B. Knowledge personally obtained
C. Rumors about ownership
D. Advertising a property
Answer: B. Knowledge personally obtained
Rationale: Actual notice refers to direct personal knowledge of a fact
rather than information implied through public records.
7. Which legal description uses reference to lot and block numbers?
A. Metes and bounds
B. Government survey system
C. Lot and block system
D. Street address
Answer: C. Lot and block system
Rationale: The lot and block system identifies property according to
recorded subdivision plats and is commonly used in urban
developments.
Answers (Verified Answers) Plus Rationales
2027 Q&A | Instant Download Pdf
1. Which Florida law primarily governs the licensing of real estate
professionals?
A. Chapter 455, Florida Statutes
B. Chapter 475, Florida Statutes
C. Chapter 83, Florida Statutes
D. Chapter 61, Florida Statutes
Answer: B. Chapter 475, Florida Statutes
Rationale: Chapter 475, Florida Statutes, is known as the Florida Real
Estate License Law and establishes licensing requirements, duties, and
disciplinary procedures for real estate professionals.
2. What is the primary purpose of the Florida Real Estate
Commission (FREC)?
,A. Collect property taxes
B. Issue building permits
C. Regulate and enforce real estate license laws
D. Appraise residential properties
Answer: C. Regulate and enforce real estate license laws
Rationale: FREC administers and enforces Chapter 475, ensuring that
licensees meet educational standards and comply with Florida real
estate laws.
3. Which duty is considered fiduciary in nature?
A. Estimating property taxes
B. Loyalty to the principal
C. Performing inspections
D. Recording deeds
Answer: B. Loyalty to the principal
Rationale: Fiduciary duties include loyalty, obedience, confidentiality,
accounting, disclosure, and reasonable care, all of which protect the
interests of the principal.
, 4. Which type of listing gives one broker the exclusive right to earn a
commission regardless of who finds the buyer?
A. Open listing
B. Net listing
C. Exclusive-right-of-sale listing
D. Option listing
Answer: C. Exclusive-right-of-sale listing
Rationale: Under an exclusive-right-of-sale listing, the broker earns a
commission if the property sells during the listing period, regardless of
who procures the buyer.
5. Which form of ownership includes the right of survivorship?
A. Tenancy in common
B. Sole ownership
C. Joint tenancy
D. Life estate
Answer: C. Joint tenancy
Rationale: Joint tenancy includes the right of survivorship, meaning
ownership automatically transfers to surviving joint tenants upon a
tenant's death.
, 6. What does "actual notice" mean?
A. Information recorded in public records
B. Knowledge personally obtained
C. Rumors about ownership
D. Advertising a property
Answer: B. Knowledge personally obtained
Rationale: Actual notice refers to direct personal knowledge of a fact
rather than information implied through public records.
7. Which legal description uses reference to lot and block numbers?
A. Metes and bounds
B. Government survey system
C. Lot and block system
D. Street address
Answer: C. Lot and block system
Rationale: The lot and block system identifies property according to
recorded subdivision plats and is commonly used in urban
developments.
