FL REAL ESTATE LAWS EXAM
QUESTIONS WITH CORRECT ANSWERS
License renewal - ANSWER-the DBPR issues real estate broker and sales associate
licenses with a two-year renewal period. However, the first issuance of a license has a
shorter renewal period. In Florida, the two license termination dates are March 31 and
September 30. The initial license expires on the nearest six months' renewal date short
of two years.
A person who applies for the sales associate license with proof of completion of FREC
Course I and all other required documentation will be issued a license with an
approximate renewal period of 18 months (see above).
Broker License - ANSWER-A real estate broker is a person who may run a brokerage
business under his or her own name or under a fictitious business name. Any broker who
places his or her license with an employing broker is called a broker associate and must
have a written employment agreement.
A fictitious business name - ANSWER-is a business name other than the name of the
person who has registered the business. Brokers must submit a copy of a Fictitious
Business Name Statement. Brokers operating as individual sole proprietors are exempt
from the Fictitious Business Name Act, because they must register their trade name
directly with FREC.
In Florida, registration of a fictitious business name is with the Division of Corporations in
Tallahassee, not with city or county governments. The broker's main office is the
principal office, and all other offices must be registered as branch offices. For each
additional business location, the broker must obtain a branch office license permit.
Exemptions to the License - ANSWER-•A person who deals only with his or her own
property
•A corporation, partnership, trust, or joint venture may sell, exchange, or lease its own
property
•Salaried employees of business entities who sell, exchange, or lease real property for
their employer, provided they are not paid a commission or other compensation for the
transaction
•Attorneys-at-law and certified public accountants when acting within the scope of their
professional duties
•Attorneys-in-fact, for the purposes of the execution of contracts and conveyances only
•Persons who deal in personal property only, such as mortgage brokers; however, an
individual in this category who attempts to negotiate a lease must be licensed
•Persons acting within the limitations of their duties as designated by a will, proper court,
or statutory authority
•Employees who are paid a salary as managers of condominiums or cooperative
apartment complexes who rent individual units, if the rentals are for periods no longer
than one year
•Salaried employees of an owner, or registered broker for an owner, of an apartment
community who work in an on-site rental office in a leasing capacity
, • Full-time graduate students enrolled in a Commission-approved degree program in
appraising at a Florida college or university, provided the student is acting under the
direct supervision of a licensed broker or a licensed or certified appraiser and is engaged
only in appraisal activities related to the approved degree program
•Persons who buy or sell cemetery lots
•Individuals who rent lots in a mobile home park or recreational travel park
•Owners of one part of one or more time-share periods for their own use and occupancy
who later resell
•Any person registered, licensed, or certified by the DBPR as an appraiser performing
appraisals
•Federally regulated banks and dealers registered with the
Topics Covered by the Sales Associate Exam - ANSWER-• Fair Housing and
Discrimination
• Contracts and Deeds
• Real Estate Taxes
• Various Licensure Law Topics
• General Real Estate Law and Licensure Law
• FREC Rules and Discipline
• Licensure Law/Contracts - Analytical
• General Real Estate Law/Licensure Law - Application
• Agency, Real Estate Practices, Federal Law, Business Practices
• Brokerage Operation, U.S. Tax Law, Real Estate Development, Documentary Stamps
• Income Capitalization, Real Estate Finance, Deposits, Fixtures, Brokerage Business
• Real Estate Math: General Business Arithmetic—Percentages, Prorations, Area
Calculations, Loan-to-Value Ratios: Application
The FREC Course I sales associate exam has 100 multiple-choice questions and a time
limit of 3.5 hours. Generally, the test has about 45 questions on principles and practices,
45 questions on real estate law, and 10 questions on math. To pass, the applicant must
answer a minimum of 75% of the questions correctly.
temporary shelter - ANSWER-space used for the comfort and convenience of the
customers and sales associates.
Corporate Real Estate License - ANSWER-A corporation may be licensed as a real
estate broker as long as one officer of the corporation is a qualified real estate broker
and acts as the corporation's responsible designated broker-officer. Sales associates
may be employed by a corporate real estate broker as long as they are supervised by the
designated broker-officer.
Partnership - ANSWER-A real estate business may be run as a partnership if one of the
partners is registered as an active broker. A sales associate may be employed by a
broker who is a member of a partnership, and may work in any branch office managed by
any of the partners, but may not be a partner.
Multiple and Group Licenses - ANSWER-A licensed broker who has more than one
license has multiple licenses.
Only brokers can obtain multiple licenses.
QUESTIONS WITH CORRECT ANSWERS
License renewal - ANSWER-the DBPR issues real estate broker and sales associate
licenses with a two-year renewal period. However, the first issuance of a license has a
shorter renewal period. In Florida, the two license termination dates are March 31 and
September 30. The initial license expires on the nearest six months' renewal date short
of two years.
A person who applies for the sales associate license with proof of completion of FREC
Course I and all other required documentation will be issued a license with an
approximate renewal period of 18 months (see above).
Broker License - ANSWER-A real estate broker is a person who may run a brokerage
business under his or her own name or under a fictitious business name. Any broker who
places his or her license with an employing broker is called a broker associate and must
have a written employment agreement.
A fictitious business name - ANSWER-is a business name other than the name of the
person who has registered the business. Brokers must submit a copy of a Fictitious
Business Name Statement. Brokers operating as individual sole proprietors are exempt
from the Fictitious Business Name Act, because they must register their trade name
directly with FREC.
In Florida, registration of a fictitious business name is with the Division of Corporations in
Tallahassee, not with city or county governments. The broker's main office is the
principal office, and all other offices must be registered as branch offices. For each
additional business location, the broker must obtain a branch office license permit.
Exemptions to the License - ANSWER-•A person who deals only with his or her own
property
•A corporation, partnership, trust, or joint venture may sell, exchange, or lease its own
property
•Salaried employees of business entities who sell, exchange, or lease real property for
their employer, provided they are not paid a commission or other compensation for the
transaction
•Attorneys-at-law and certified public accountants when acting within the scope of their
professional duties
•Attorneys-in-fact, for the purposes of the execution of contracts and conveyances only
•Persons who deal in personal property only, such as mortgage brokers; however, an
individual in this category who attempts to negotiate a lease must be licensed
•Persons acting within the limitations of their duties as designated by a will, proper court,
or statutory authority
•Employees who are paid a salary as managers of condominiums or cooperative
apartment complexes who rent individual units, if the rentals are for periods no longer
than one year
•Salaried employees of an owner, or registered broker for an owner, of an apartment
community who work in an on-site rental office in a leasing capacity
, • Full-time graduate students enrolled in a Commission-approved degree program in
appraising at a Florida college or university, provided the student is acting under the
direct supervision of a licensed broker or a licensed or certified appraiser and is engaged
only in appraisal activities related to the approved degree program
•Persons who buy or sell cemetery lots
•Individuals who rent lots in a mobile home park or recreational travel park
•Owners of one part of one or more time-share periods for their own use and occupancy
who later resell
•Any person registered, licensed, or certified by the DBPR as an appraiser performing
appraisals
•Federally regulated banks and dealers registered with the
Topics Covered by the Sales Associate Exam - ANSWER-• Fair Housing and
Discrimination
• Contracts and Deeds
• Real Estate Taxes
• Various Licensure Law Topics
• General Real Estate Law and Licensure Law
• FREC Rules and Discipline
• Licensure Law/Contracts - Analytical
• General Real Estate Law/Licensure Law - Application
• Agency, Real Estate Practices, Federal Law, Business Practices
• Brokerage Operation, U.S. Tax Law, Real Estate Development, Documentary Stamps
• Income Capitalization, Real Estate Finance, Deposits, Fixtures, Brokerage Business
• Real Estate Math: General Business Arithmetic—Percentages, Prorations, Area
Calculations, Loan-to-Value Ratios: Application
The FREC Course I sales associate exam has 100 multiple-choice questions and a time
limit of 3.5 hours. Generally, the test has about 45 questions on principles and practices,
45 questions on real estate law, and 10 questions on math. To pass, the applicant must
answer a minimum of 75% of the questions correctly.
temporary shelter - ANSWER-space used for the comfort and convenience of the
customers and sales associates.
Corporate Real Estate License - ANSWER-A corporation may be licensed as a real
estate broker as long as one officer of the corporation is a qualified real estate broker
and acts as the corporation's responsible designated broker-officer. Sales associates
may be employed by a corporate real estate broker as long as they are supervised by the
designated broker-officer.
Partnership - ANSWER-A real estate business may be run as a partnership if one of the
partners is registered as an active broker. A sales associate may be employed by a
broker who is a member of a partnership, and may work in any branch office managed by
any of the partners, but may not be a partner.
Multiple and Group Licenses - ANSWER-A licensed broker who has more than one
license has multiple licenses.
Only brokers can obtain multiple licenses.
