Real Estate Pre-License Test
Comprehensive Questions and
Solutions Graded A+
Appraisers charge a fee based on: - Answer: the time and difficulty of the work
Are appraisers paid a commission? - Answer: No - to reduce the possibility of a conflict of
interest
→ if an appraiser were to be paid a % of the appraised value, the temptation to exaggerate the
value might prove irresistible
USPAP's ethics rule states: - Answer: That it is unethical for an appraiser to accept compensation
that is contingent on the value of property
Speculative (Spec) Homes - Answer: Building "on speculation" involves purchasing 1 or more
lots and constructing a home (or homes) without a buyer in advance of construction
Custom Homes - Answer: A custom builder constructs homes under contract with a buyer, often
using building plans provided by architects or buyers
Tract Homes - Answer: A type of speculative building; A new subdivision will typically feature
several model homes. Buyers select a floor plan from the models and a lot on which to build in
the new subdivision
,The Commercial Real Estate Sales Commission Lien Act (Part III Chapter 475) - Answer: • gives a
broker lien rights for earned commission
• only applies to commercial property (not real property)
• the lien is only against the owner's net proceeds from sale and DOES NOT attach to the
commercial real property
Net Proceeds - Answer: personal property
Mutual Recognition Agreements - Answer: where a state (Florida) and another state enter into a
contract to recognize each other's real estate license education
→ Individuals who receive a Florida real estate license under mutual recognition must fulfill the
same post-license & continuing education requirements as all other Florida real estate licensees
Are real estate applicants approved for licensure under mutual recognition exempt from the
pre-license education course? - Answer: Yes - but they must demonstrate mastery of Florida's
real estate license law by passing a written Florida-specific real estate law license exam
→ exam consists of 40 questions worth 1 point each
→ must get a 75% or higher
A broker applicant can fulfill the experience requirement in 1 of 3 ways: - Answer: 1) The
applicant has held an active sales license under 1 or more real estate brokers for at least 24
months during the 5 year period before you apply for a Florida brokerage license. The
employment can be under a Florida real estate broker, a licensed broker in another state, or in
any foreign jurisdiction
2) The applicant has held an active sales associate license while working as a salaried employee
of a governmental agency & performing the duties authorized in Chapter 475, F.S., for at least
24 months during the 5 year period before you apply for a Florida brokerage license
, 3) The applicant held an active broker license in another state or in any foreign jurisdiction for at
least 24 months during the 5 year period before applying to become a Florida real estate broker
Prima Facie Evidence - Answer: Evidence that is good & sufficient on its face (at first view) to
establish a given fact or prove a case
→ unless it is refuted by evidence to the contrary, prima facie evidence will prove a case
(presumptive evidence
A real estate license serves as prima facie evidence because: - Answer: it indicates the licensee's
name, issue date, & expiration date, showing that the licensee holds a current & valid license
→ furthermore, official documents become prima facie evidence once they are signed by the
FREC chairperson or the chairpersons designee & affixed with the Commission's seal
What Florida Statute exempts court-appointed individuals acting within the limitations of their
duties? - Answer: Chapter 475
→ you can only sell a property that the judge SPECIFICALLY tells you if you are not licensed
under the state of Florida
Do FREC members receive a salary? - Answer: No - in lieu of a salary, they are paid $50 per day
for each day they attend an official meeting & for each day they participate in other commission
business
→ they also receive reimbursement for expenses connected with their official activities
→ any travel outside the state as members of the commission requires the prior approval of the
DBPR secretary
Fee Waiver of Military Veterans - Answer: The initial application fee, biennial license fee, &
unlicensed activity fee are waived for military veterans who apply for a real estate license within
24 months after honorable discharge from the Armed Forces. The fee waiver applies to all
licenses issued by by the DBPR
Comprehensive Questions and
Solutions Graded A+
Appraisers charge a fee based on: - Answer: the time and difficulty of the work
Are appraisers paid a commission? - Answer: No - to reduce the possibility of a conflict of
interest
→ if an appraiser were to be paid a % of the appraised value, the temptation to exaggerate the
value might prove irresistible
USPAP's ethics rule states: - Answer: That it is unethical for an appraiser to accept compensation
that is contingent on the value of property
Speculative (Spec) Homes - Answer: Building "on speculation" involves purchasing 1 or more
lots and constructing a home (or homes) without a buyer in advance of construction
Custom Homes - Answer: A custom builder constructs homes under contract with a buyer, often
using building plans provided by architects or buyers
Tract Homes - Answer: A type of speculative building; A new subdivision will typically feature
several model homes. Buyers select a floor plan from the models and a lot on which to build in
the new subdivision
,The Commercial Real Estate Sales Commission Lien Act (Part III Chapter 475) - Answer: • gives a
broker lien rights for earned commission
• only applies to commercial property (not real property)
• the lien is only against the owner's net proceeds from sale and DOES NOT attach to the
commercial real property
Net Proceeds - Answer: personal property
Mutual Recognition Agreements - Answer: where a state (Florida) and another state enter into a
contract to recognize each other's real estate license education
→ Individuals who receive a Florida real estate license under mutual recognition must fulfill the
same post-license & continuing education requirements as all other Florida real estate licensees
Are real estate applicants approved for licensure under mutual recognition exempt from the
pre-license education course? - Answer: Yes - but they must demonstrate mastery of Florida's
real estate license law by passing a written Florida-specific real estate law license exam
→ exam consists of 40 questions worth 1 point each
→ must get a 75% or higher
A broker applicant can fulfill the experience requirement in 1 of 3 ways: - Answer: 1) The
applicant has held an active sales license under 1 or more real estate brokers for at least 24
months during the 5 year period before you apply for a Florida brokerage license. The
employment can be under a Florida real estate broker, a licensed broker in another state, or in
any foreign jurisdiction
2) The applicant has held an active sales associate license while working as a salaried employee
of a governmental agency & performing the duties authorized in Chapter 475, F.S., for at least
24 months during the 5 year period before you apply for a Florida brokerage license
, 3) The applicant held an active broker license in another state or in any foreign jurisdiction for at
least 24 months during the 5 year period before applying to become a Florida real estate broker
Prima Facie Evidence - Answer: Evidence that is good & sufficient on its face (at first view) to
establish a given fact or prove a case
→ unless it is refuted by evidence to the contrary, prima facie evidence will prove a case
(presumptive evidence
A real estate license serves as prima facie evidence because: - Answer: it indicates the licensee's
name, issue date, & expiration date, showing that the licensee holds a current & valid license
→ furthermore, official documents become prima facie evidence once they are signed by the
FREC chairperson or the chairpersons designee & affixed with the Commission's seal
What Florida Statute exempts court-appointed individuals acting within the limitations of their
duties? - Answer: Chapter 475
→ you can only sell a property that the judge SPECIFICALLY tells you if you are not licensed
under the state of Florida
Do FREC members receive a salary? - Answer: No - in lieu of a salary, they are paid $50 per day
for each day they attend an official meeting & for each day they participate in other commission
business
→ they also receive reimbursement for expenses connected with their official activities
→ any travel outside the state as members of the commission requires the prior approval of the
DBPR secretary
Fee Waiver of Military Veterans - Answer: The initial application fee, biennial license fee, &
unlicensed activity fee are waived for military veterans who apply for a real estate license within
24 months after honorable discharge from the Armed Forces. The fee waiver applies to all
licenses issued by by the DBPR
