Florida Real Estate Broker Exam
Practice Questions And Correct Answers
(Verified Answers) Plus Rationales
2025|2026 Q&A | Instant Download Pdf
1. What is the primary purpose of the Florida Real Estate Commission
(FREC)?
To regulate real estate licensees in Florida.
The FREC exists to protect the public by regulating real estate
activities, ensuring licensees comply with laws and rules.
2. How long is a Florida real estate broker’s license valid before renewal?
24 months.
Broker licenses in Florida are valid for two years and must be
renewed before expiration to remain active.
3. What is required for a broker to maintain an active license in Florida?
Completion of post-licensing education and renewal fees.
, New brokers must complete post-licensing courses and pay renewal
fees to keep their license active.
4. Which of the following is considered real property?
A house and the land it sits on.
Real property includes land and anything permanently attached to it.
5. A broker receives an escrow deposit. What must they do?
Place it in a Florida escrow account.
Florida law requires that all escrow funds be deposited in a trust
account or with a title company or attorney.
6. What is the maximum amount the Real Estate Recovery Fund will pay
per transaction?
$50,000.
The fund protects consumers from licensee fraud or
misrepresentation, paying up to $50,000 per transaction.
7. How does Florida law define a “material fact”?
Any fact that would influence a buyer’s or seller’s decision.
Material facts must be disclosed because they affect the value or
desirability of a property.
8. Which type of listing gives a broker the right to earn a commission
even if the seller finds the buyer?
Exclusive right of sale listing.
, In an exclusive right of sale, the broker earns a commission no matter
who finds the buyer.
9. A real estate licensee refers a client to a mortgage lender and receives
compensation. This is:
Illegal unless disclosed and authorized.
Licensees must disclose any compensation received for referrals to
avoid conflicts of interest and comply with federal law.
10. What is the purpose of a comparative market analysis (CMA)?
To estimate a property’s market value.
A CMA helps sellers and buyers determine a realistic listing or offer
price based on comparable properties.
11. When must a broker provide the “Working with a Realtor”
disclosure in Florida?
At first substantive contact with a buyer or seller.
Florida law requires disclosure to ensure clients know their agency
options before substantive discussions.
12. Which of the following actions is considered commingling?
Depositing client escrow funds into the broker’s personal account.
Commingling is mixing client funds with personal or business funds,
which is prohibited.
13. Which type of agency relationship allows the broker to
represent both the buyer and seller?
, Transaction broker.
Florida law allows dual representation under a transaction broker,
providing limited confidentiality to both parties.
14. How long must brokers retain transaction records in Florida?
5 years.
Brokers are required to maintain records for 5 years for compliance
and potential audits.
15. What is the purpose of the Florida Real Estate Recovery Fund?
To reimburse consumers harmed by licensee misconduct.
It protects the public from financial losses due to fraud or
misrepresentation by licensees.
16. What type of listing allows the seller to pay a commission only if
the broker finds a buyer?
Exclusive agency listing.
In an exclusive agency, the seller can sell independently without
paying a commission.
17. What is a void contract?
A contract that has no legal effect.
A void contract is unenforceable from the start due to illegality or
lack of essential elements.
18. What must be disclosed regarding lead-based paint in properties
built before 1978?
Practice Questions And Correct Answers
(Verified Answers) Plus Rationales
2025|2026 Q&A | Instant Download Pdf
1. What is the primary purpose of the Florida Real Estate Commission
(FREC)?
To regulate real estate licensees in Florida.
The FREC exists to protect the public by regulating real estate
activities, ensuring licensees comply with laws and rules.
2. How long is a Florida real estate broker’s license valid before renewal?
24 months.
Broker licenses in Florida are valid for two years and must be
renewed before expiration to remain active.
3. What is required for a broker to maintain an active license in Florida?
Completion of post-licensing education and renewal fees.
, New brokers must complete post-licensing courses and pay renewal
fees to keep their license active.
4. Which of the following is considered real property?
A house and the land it sits on.
Real property includes land and anything permanently attached to it.
5. A broker receives an escrow deposit. What must they do?
Place it in a Florida escrow account.
Florida law requires that all escrow funds be deposited in a trust
account or with a title company or attorney.
6. What is the maximum amount the Real Estate Recovery Fund will pay
per transaction?
$50,000.
The fund protects consumers from licensee fraud or
misrepresentation, paying up to $50,000 per transaction.
7. How does Florida law define a “material fact”?
Any fact that would influence a buyer’s or seller’s decision.
Material facts must be disclosed because they affect the value or
desirability of a property.
8. Which type of listing gives a broker the right to earn a commission
even if the seller finds the buyer?
Exclusive right of sale listing.
, In an exclusive right of sale, the broker earns a commission no matter
who finds the buyer.
9. A real estate licensee refers a client to a mortgage lender and receives
compensation. This is:
Illegal unless disclosed and authorized.
Licensees must disclose any compensation received for referrals to
avoid conflicts of interest and comply with federal law.
10. What is the purpose of a comparative market analysis (CMA)?
To estimate a property’s market value.
A CMA helps sellers and buyers determine a realistic listing or offer
price based on comparable properties.
11. When must a broker provide the “Working with a Realtor”
disclosure in Florida?
At first substantive contact with a buyer or seller.
Florida law requires disclosure to ensure clients know their agency
options before substantive discussions.
12. Which of the following actions is considered commingling?
Depositing client escrow funds into the broker’s personal account.
Commingling is mixing client funds with personal or business funds,
which is prohibited.
13. Which type of agency relationship allows the broker to
represent both the buyer and seller?
, Transaction broker.
Florida law allows dual representation under a transaction broker,
providing limited confidentiality to both parties.
14. How long must brokers retain transaction records in Florida?
5 years.
Brokers are required to maintain records for 5 years for compliance
and potential audits.
15. What is the purpose of the Florida Real Estate Recovery Fund?
To reimburse consumers harmed by licensee misconduct.
It protects the public from financial losses due to fraud or
misrepresentation by licensees.
16. What type of listing allows the seller to pay a commission only if
the broker finds a buyer?
Exclusive agency listing.
In an exclusive agency, the seller can sell independently without
paying a commission.
17. What is a void contract?
A contract that has no legal effect.
A void contract is unenforceable from the start due to illegality or
lack of essential elements.
18. What must be disclosed regarding lead-based paint in properties
built before 1978?
