FREC 4 EXAM ACTUAL FLORIDA REAL
ESTATE LAW AND REGULATIONS
DETAILED CORRECT ANSWERS WITH
RATIONALES CORRECT VERIFIED
ANSWERS GRADE A+ | INSTANT
DOWNLOAD | 100% PASS GUARANTEE
FREC 4 Exam Actual: Florida Real Estate Law &
Regulations
Question 1: How many members compose the Florida Real
Estate Commission (FREC), and what is the required
composition? A) 5 members: 3 brokers and 2 consumers B) 7
members: 4 brokers with at least 5 years of active
experience, 1 broker or sales associate with at least 2
years of active experience, and 2 consumer members
C) 7 members: 5 brokers and 2 sales associates D) 9 members:
6 brokers, 1 sales associate, and 2 consumers
Correct Answer: B) 7 members: 4 brokers with at
least 5 years of active experience, 1 broker or sales
associate with at least 2 years of active experience, and
2 consumer members
Rationale: FREC consists of 7 members appointed by the
Governor and confirmed by the Senate. The specific
composition is mandated by Florida Statute 475 to ensure a
balance of experienced professionals and public
representation.
Question 2: What is the minimum number of FREC members
required to be present to constitute a quorum and conduct
official business? A) 3 B) 4 C) 5 D) 7
,Correct Answer: B) 4
Rationale: A quorum of FREC is four members. Without at
least four members present, the Commission cannot take
official action or vote on matters.
Question 3: A newly licensed sales associate must complete
their post-licensing education before their first license renewal.
How many hours are required? A) 14 hours B) 45 hours C) 60
hours D) 72 hours
Correct Answer: B) 45 hours
Rationale: Florida law requires newly licensed sales
associates to complete a 45-hour post-licensing course before
their first renewal date to avoid license nullification.
Question 4: What is the continuing education (CE)
requirement for a sales associate renewing their license for the
second time and beyond? A) 14 hours, including 3 hours of Core
Law and 1 hour of Ethics B) 14 hours, including 3 hours of
Core Law and 1 hour of Ethics and Business Practices
C) 24 hours, including 3 hours of Core Law D) 45 hours of post-
licensing education
Correct Answer: B) 14 hours, including 3 hours of
Core Law and 1 hour of Ethics and Business Practices
Rationale: After the initial post-licensing requirement is
met, sales associates must complete 14 hours of approved
continuing education every two years, which must include the
3-hour Core Law and 1-hour Ethics and Business Practices
courses.
Question 5: If a licensee fails to renew their license by the
expiration date, the license becomes: A) Suspended B) Revoked
C) Involuntary inactive D) Voluntarily inactive
Correct Answer: C) Involuntary inactive
,Rationale: Failure to renew by the expiration date places the
license in involuntary inactive status. The licensee has a 12-
month grace period to complete CE and pay late fees to
reactivate it. After 12 months, the license is null and void.
Question 6: What is the maximum administrative fine FREC
can impose per count for a violation of Chapter 475, F.S.? A)
$1,000 B) $2,500 C) $5,000 D) $10,000
Correct Answer: C) $5,000
Rationale: FREC has the authority to impose an
administrative fine of up to $5,000 for each count or separate
offense of a violation of real estate license law.
Question 7: A person who performs real estate services for
compensation without a license commits a crime. What is the
penalty for a first offense? A) First-degree misdemeanor B)
Second-degree misdemeanor C) Third-degree felony D)
Civil citation only
Correct Answer: B) Second-degree misdemeanor
Rationale: Unlicensed real estate activity is a second-degree
misdemeanor for a first offense. Subsequent offenses are
elevated to a third-degree felony.
Question 8: What is the maximum amount a claimant can
recover from the Florida Real Estate Recovery Fund for a single
transaction? A) $25,000 B) $50,000 C) $100,000 D)
$150,000
Correct Answer: B) $50,000
Rationale: The Real Estate Recovery Fund provides a
maximum payout of $50,000 per transaction, with an
aggregate limit of $150,000 per licensee, to compensate
victims of fraudulent or dishonest conduct by a licensee.
, Question 9: When a broker receives a good faith deposit, by
when must it be deposited into the escrow account? A)
Immediately upon receipt B) By the end of the next
business day C) Within 3 business days D) Within 5 business
days
Correct Answer: B) By the end of the next business
day
Rationale: Florida Administrative Code requires that all
good faith deposits be delivered to the broker’s escrow account
by the end of the next business day following receipt, unless
otherwise specified in the contract.
Question 10: If there is a dispute over an escrow deposit,
which of the following is NOT one of the four authorized
dispute resolution methods available to the broker? A)
Mediation B) Arbitration C) Litigation in small claims
court by the broker D) Escrow Disbursement Order (EDO)
Correct Answer: C) Litigation in small claims court
by the broker
Rationale: The four authorized methods for a broker to
resolve an escrow dispute are: (1) obtaining written consent
from all parties, (2) mediation, (3) arbitration, or (4) filing for
an Escrow Disbursement Order (EDO) with FREC. The broker
may also file an interpleader action in court, but not a small
claims suit to claim the funds for themselves.
Question 11: Upon receiving conflicting demands on an
escrow account, how many business days does a broker have to
notify FREC and institute one of the authorized settlement
procedures? A) 5 business days B) 15 business days C) 30
business days D) 45 business days
Correct Answer: B) 15 business days
ESTATE LAW AND REGULATIONS
DETAILED CORRECT ANSWERS WITH
RATIONALES CORRECT VERIFIED
ANSWERS GRADE A+ | INSTANT
DOWNLOAD | 100% PASS GUARANTEE
FREC 4 Exam Actual: Florida Real Estate Law &
Regulations
Question 1: How many members compose the Florida Real
Estate Commission (FREC), and what is the required
composition? A) 5 members: 3 brokers and 2 consumers B) 7
members: 4 brokers with at least 5 years of active
experience, 1 broker or sales associate with at least 2
years of active experience, and 2 consumer members
C) 7 members: 5 brokers and 2 sales associates D) 9 members:
6 brokers, 1 sales associate, and 2 consumers
Correct Answer: B) 7 members: 4 brokers with at
least 5 years of active experience, 1 broker or sales
associate with at least 2 years of active experience, and
2 consumer members
Rationale: FREC consists of 7 members appointed by the
Governor and confirmed by the Senate. The specific
composition is mandated by Florida Statute 475 to ensure a
balance of experienced professionals and public
representation.
Question 2: What is the minimum number of FREC members
required to be present to constitute a quorum and conduct
official business? A) 3 B) 4 C) 5 D) 7
,Correct Answer: B) 4
Rationale: A quorum of FREC is four members. Without at
least four members present, the Commission cannot take
official action or vote on matters.
Question 3: A newly licensed sales associate must complete
their post-licensing education before their first license renewal.
How many hours are required? A) 14 hours B) 45 hours C) 60
hours D) 72 hours
Correct Answer: B) 45 hours
Rationale: Florida law requires newly licensed sales
associates to complete a 45-hour post-licensing course before
their first renewal date to avoid license nullification.
Question 4: What is the continuing education (CE)
requirement for a sales associate renewing their license for the
second time and beyond? A) 14 hours, including 3 hours of Core
Law and 1 hour of Ethics B) 14 hours, including 3 hours of
Core Law and 1 hour of Ethics and Business Practices
C) 24 hours, including 3 hours of Core Law D) 45 hours of post-
licensing education
Correct Answer: B) 14 hours, including 3 hours of
Core Law and 1 hour of Ethics and Business Practices
Rationale: After the initial post-licensing requirement is
met, sales associates must complete 14 hours of approved
continuing education every two years, which must include the
3-hour Core Law and 1-hour Ethics and Business Practices
courses.
Question 5: If a licensee fails to renew their license by the
expiration date, the license becomes: A) Suspended B) Revoked
C) Involuntary inactive D) Voluntarily inactive
Correct Answer: C) Involuntary inactive
,Rationale: Failure to renew by the expiration date places the
license in involuntary inactive status. The licensee has a 12-
month grace period to complete CE and pay late fees to
reactivate it. After 12 months, the license is null and void.
Question 6: What is the maximum administrative fine FREC
can impose per count for a violation of Chapter 475, F.S.? A)
$1,000 B) $2,500 C) $5,000 D) $10,000
Correct Answer: C) $5,000
Rationale: FREC has the authority to impose an
administrative fine of up to $5,000 for each count or separate
offense of a violation of real estate license law.
Question 7: A person who performs real estate services for
compensation without a license commits a crime. What is the
penalty for a first offense? A) First-degree misdemeanor B)
Second-degree misdemeanor C) Third-degree felony D)
Civil citation only
Correct Answer: B) Second-degree misdemeanor
Rationale: Unlicensed real estate activity is a second-degree
misdemeanor for a first offense. Subsequent offenses are
elevated to a third-degree felony.
Question 8: What is the maximum amount a claimant can
recover from the Florida Real Estate Recovery Fund for a single
transaction? A) $25,000 B) $50,000 C) $100,000 D)
$150,000
Correct Answer: B) $50,000
Rationale: The Real Estate Recovery Fund provides a
maximum payout of $50,000 per transaction, with an
aggregate limit of $150,000 per licensee, to compensate
victims of fraudulent or dishonest conduct by a licensee.
, Question 9: When a broker receives a good faith deposit, by
when must it be deposited into the escrow account? A)
Immediately upon receipt B) By the end of the next
business day C) Within 3 business days D) Within 5 business
days
Correct Answer: B) By the end of the next business
day
Rationale: Florida Administrative Code requires that all
good faith deposits be delivered to the broker’s escrow account
by the end of the next business day following receipt, unless
otherwise specified in the contract.
Question 10: If there is a dispute over an escrow deposit,
which of the following is NOT one of the four authorized
dispute resolution methods available to the broker? A)
Mediation B) Arbitration C) Litigation in small claims
court by the broker D) Escrow Disbursement Order (EDO)
Correct Answer: C) Litigation in small claims court
by the broker
Rationale: The four authorized methods for a broker to
resolve an escrow dispute are: (1) obtaining written consent
from all parties, (2) mediation, (3) arbitration, or (4) filing for
an Escrow Disbursement Order (EDO) with FREC. The broker
may also file an interpleader action in court, but not a small
claims suit to claim the funds for themselves.
Question 11: Upon receiving conflicting demands on an
escrow account, how many business days does a broker have to
notify FREC and institute one of the authorized settlement
procedures? A) 5 business days B) 15 business days C) 30
business days D) 45 business days
Correct Answer: B) 15 business days
