Florida Real Estate Practice Test Quiz
Q1. Which of the following actions by a broker would most likely violate the Sherman Antitrust Act?
Correct Answer: C
Explanation: Any agreement between competing brokers to fix prices (including commission rates) is a violation of antitrust laws.
Citation: 15 U.S.C. §§ 1–7 (Sherman Act)
Explanation: Any agreement between competing brokers to fix prices (including commission rates) is a violation of antitrust laws.
Citation: 15 U.S.C. §§ 1–7 (Sherman Act)
Q2. Which of the following is NOT one of the duties owed in a no-brokerage (nonrepresentation) relationship?
Correct Answer: C
Explanation: Confidentiality is not required in a no-brokerage relationship, unlike in single agent representation.
Citation: Florida Statute § 475.278(4)(A.
Explanation: Confidentiality is not required in a no-brokerage relationship, unlike in single agent representation.
Citation: Florida Statute § 475.278(4)(A.
Q3. A broker is entrusted with a $12,000 escrow deposit. How long does the broker have to initiate one of the settlement procedures if a dispute arises?
Correct Answer: B
Explanation: The broker has 30 business days from the date of last party demand to initiate a settlement procedure (e.g., arbitration, litigation, EDO).
Citation: Florida Statute § 61J2-10.032(2)
Explanation: The broker has 30 business days from the date of last party demand to initiate a settlement procedure (e.g., arbitration, litigation, EDO).
Citation: Florida Statute § 61J2-10.032(2)
Q4. What is the homestead tax exemption in Florida for a qualifying homeowner’s primary residence?
Correct Answer: C
Explanation: The exemption provides the first $25,000 off all taxing authorities, and the next $25,000 only off non-school taxes.
Citation: Florida Statute § 196.031
Explanation: The exemption provides the first $25,000 off all taxing authorities, and the next $25,000 only off non-school taxes.
Citation: Florida Statute § 196.031
Q5. When must a real estate license applicant disclose a personal bankruptcy?
Correct Answer: C
Explanation: While not always disqualifying, bankruptcies that call into question the applicant’s character must be disclosed.
Citation: F.S. 475.17; DBPR Application Rules
Explanation: While not always disqualifying, bankruptcies that call into question the applicant’s character must be disclosed.
Citation: F.S. 475.17; DBPR Application Rules
Q6. What is the purpose of a defeasance clause in a mortgage contract?
Correct Answer: C
Explanation: A defeasance clause nullifies the lender’s claim when the borrower satisfies the loan terms in full.
Citation: Pearson VUE Handbook – Mortgage Clauses
Explanation: A defeasance clause nullifies the lender’s claim when the borrower satisfies the loan terms in full.
Citation: Pearson VUE Handbook – Mortgage Clauses
Q7. A developer sells 50 lots in a new subdivision. What law requires them to register the subdivision with the Consumer Financial Protection Bureau (CFPB)?
Correct Answer: B
Explanation: The ILSA applies to sales of 100+ lots, but may apply in smaller cases if marketed across state lines.
Citation: 15 U.S. Code § 1701
Explanation: The ILSA applies to sales of 100+ lots, but may apply in smaller cases if marketed across state lines.
Citation: 15 U.S. Code § 1701
Q8. What is the statute of limitations for written real estate contracts in Florida?
Correct Answer: C
Explanation: Written contracts in Florida have a 5-year statute of limitations.
Citation: Florida Statute § 95.11(2)(b)
Explanation: Written contracts in Florida have a 5-year statute of limitations.
Citation: Florida Statute § 95.11(2)(b)
Q9. Which of the following actions is considered a first-degree misdemeanor under Florida real estate law?
Correct Answer: C
Explanation: Knowingly providing false rental information for a fee is a first-degree misdemeanor.
Citation: Florida Statute § 475.453
Explanation: Knowingly providing false rental information for a fee is a first-degree misdemeanor.
Citation: Florida Statute § 475.453
Q10. A sales associate receives a postdated check as an escrow deposit. What must they do?
Correct Answer: B
Explanation: Postdated checks must be accepted only with the seller’s consent, and the broker must be immediately notified.
Citation: Florida Real Estate Commission Rule 61J2-14.008
Explanation: Postdated checks must be accepted only with the seller’s consent, and the broker must be immediately notified.
Citation: Florida Real Estate Commission Rule 61J2-14.008
Q11. What is the legal term for the government’s power to take private property for public use?
Correct Answer: B
Explanation: Eminent domain is the right to take private property for public use with just compensation.
Citation: Pearson VUE Handbook, “Government Powers”
Explanation: Eminent domain is the right to take private property for public use with just compensation.
Citation: Pearson VUE Handbook, “Government Powers”
Q12. What is the required education for a Florida real estate sales associate to renew a license for the first time?
Correct Answer: B
Explanation: The first renewal requires completion of a 45-hour post-licensing course.
Citation: Florida Statute § 475.17(3)(A.
Explanation: The first renewal requires completion of a 45-hour post-licensing course.
Citation: Florida Statute § 475.17(3)(A.
Q13. Which approach to value is most appropriate for special-purpose properties like schools or churches?
Correct Answer: C
Explanation: The cost-depreciation method is best for properties with few comparables, like schools.
Citation: Pearson VUE Candidate Handbook
Explanation: The cost-depreciation method is best for properties with few comparables, like schools.
Citation: Pearson VUE Candidate Handbook
Q14. A real estate brokerage operates as a limited liability company (LLC). Who must be licensed?
Correct Answer: C
Explanation: Anyone performing real estate activities within an LLC must hold an active real estate license.
Citation: F.S. 475.15; FREC FAQs
Explanation: Anyone performing real estate activities within an LLC must hold an active real estate license.
Citation: F.S. 475.15; FREC FAQs
Q15. Which disclosure is required when selling a property located within a Florida mandatory HOA?
Correct Answer: C
Explanation: A disclosure summary is mandatory under FS 720.401 before executing the contract.
Citation: Florida Statute § 720.401
Explanation: A disclosure summary is mandatory under FS 720.401 before executing the contract.
Citation: Florida Statute § 720.401
Q16. If a broker fails to maintain sign requirements at a branch office, what is the likely penalty?
Correct Answer: A
Explanation: Office signage must comply with Rule 61J2-10.025. Violations may result in fines and disciplinary action.
Citation: Florida Administrative Code 61J2-10.025
Explanation: Office signage must comply with Rule 61J2-10.025. Violations may result in fines and disciplinary action.
Citation: Florida Administrative Code 61J2-10.025
Q17. What is the equitable title in real estate?
Correct Answer: C
Explanation: Equitable title gives the buyer the right to legal title once conditions (e.g., loan) are satisfied.
Citation: Pearson VUE Candidate Handbook, Title Concepts
Explanation: Equitable title gives the buyer the right to legal title once conditions (e.g., loan) are satisfied.
Citation: Pearson VUE Candidate Handbook, Title Concepts
Q18. In a residential transaction, what brokerage relationship is assumed by default in Florida?
Correct Answer: C
Explanation: Transaction broker is the default in Florida unless another relationship is established in writing.
Citation: Florida Statute § 475.278(1)(b)
Explanation: Transaction broker is the default in Florida unless another relationship is established in writing.
Citation: Florida Statute § 475.278(1)(b)
Q19. What is the purpose of the Real Estate Recovery Fund?
Correct Answer: B
Explanation: The Recovery Fund pays actual damages to consumers harmed by a licensee, if certain conditions are met.
Citation: Florida Statute § 475.482
Explanation: The Recovery Fund pays actual damages to consumers harmed by a licensee, if certain conditions are met.
Citation: Florida Statute § 475.482
Q20. What is the effect of a “wraparound mortgage” in seller financing?
Correct Answer: C
Explanation: A wraparound mortgage includes a new loan from seller to buyer while the original loan remains, often requiring seller to forward payments.
Citation: Pearson VUE – Financing Types
Explanation: A wraparound mortgage includes a new loan from seller to buyer while the original loan remains, often requiring seller to forward payments.
Citation: Pearson VUE – Financing Types
Q21. What must a licensee do when changing their mailing address?
Correct Answer: B
Explanation: Licensees must notify the DBPR within 10 days of any address change.
Citation: F.S. 455.275(1)
Explanation: Licensees must notify the DBPR within 10 days of any address change.
Citation: F.S. 455.275(1)
Q22. Which of the following best defines a tenancy at sufferance?
Correct Answer: B
Explanation: Tenancy at sufferance occurs when a tenant remains after lease termination without landlord consent.
Citation: Pearson VUE Handbook – Leasehold Estates
Explanation: Tenancy at sufferance occurs when a tenant remains after lease termination without landlord consent.
Citation: Pearson VUE Handbook – Leasehold Estates
Q23. What is the maximum fine the FREC may impose per violation?
Correct Answer: D
Explanation: FREC may impose up to $5,000 per offense as an administrative fine.
Citation: F.S. 475.25(1)
Explanation: FREC may impose up to $5,000 per offense as an administrative fine.
Citation: F.S. 475.25(1)
Q24. Which disclosure is required when selling property built before 1978?
Correct Answer: C
Explanation: Federal law requires a lead-based paint disclosure for homes built before 1978.
Citation: Title X, Residential Lead-Based Paint Hazard Reduction Act of 1992
Explanation: Federal law requires a lead-based paint disclosure for homes built before 1978.
Citation: Title X, Residential Lead-Based Paint Hazard Reduction Act of 1992
Q25. In a net lease, which of the following is the tenant usually responsible for?
Correct Answer: B
Explanation: A net lease typically requires the tenant to pay taxes, insurance, and maintenance on top of rent.
Citation: Pearson VUE Handbook – Lease Types
Explanation: A net lease typically requires the tenant to pay taxes, insurance, and maintenance on top of rent.
Citation: Pearson VUE Handbook – Lease Types
Q26. What type of legal description uses meridians and base lines?
Correct Answer: C
Explanation: The government survey system (rectangular survey) uses principal meridians and base lines.
Citation: F.S. 177.021
Explanation: The government survey system (rectangular survey) uses principal meridians and base lines.
Citation: F.S. 177.021
Q27. A broker receives conflicting demands over escrow. What must they do within 30 business days?
Correct Answer: B
Explanation: The broker must notify the Commission within 15 days and institute a settlement procedure within 30 business days.
Citation: F.S. 475.25(1)(d); 61J2-10.032
Explanation: The broker must notify the Commission within 15 days and institute a settlement procedure within 30 business days.
Citation: F.S. 475.25(1)(d); 61J2-10.032
Q28. What is the purpose of an appraisal conducted for a federally related transaction?
Correct Answer: C
Explanation: The purpose is to protect lenders by estimating market value in federally related transactions.
Citation: FIRREA Title XI
Explanation: The purpose is to protect lenders by estimating market value in federally related transactions.
Citation: FIRREA Title XI
Q29. Which tenancy allows unequal ownership interests and no survivorship?
Correct Answer: A
Explanation: A tenancy in common allows unequal shares and does not include a right of survivorship.
Citation: Pearson VUE Handbook – Forms of Ownership
Explanation: A tenancy in common allows unequal shares and does not include a right of survivorship.
Citation: Pearson VUE Handbook – Forms of Ownership
Q30. What is the function of a real estate investment trust (REIT)?
Correct Answer: B
Explanation: A REIT is a trust that pools investor money to buy and manage income-producing real estate.
Citation: F.S. 475.01; Investment Definitions
Explanation: A REIT is a trust that pools investor money to buy and manage income-producing real estate.
Citation: F.S. 475.01; Investment Definitions
Q31. What happens when a licensee fails to renew a license at the end of its 2-year cycle?
Correct Answer: C
Explanation: A license that is not renewed automatically becomes involuntarily inactive.
Citation: F.S. 475.183
Explanation: A license that is not renewed automatically becomes involuntarily inactive.
Citation: F.S. 475.183
Q32. What is the purpose of a subordination clause in a mortgage?
Correct Answer: B
Explanation: A subordination clause allows a new mortgage to take priority over an existing one.
Citation: Pearson VUE Handbook – Mortgage Clauses
Explanation: A subordination clause allows a new mortgage to take priority over an existing one.
Citation: Pearson VUE Handbook – Mortgage Clauses
Q33. What is the effect of a lis pendens filed on a property?
Correct Answer: B
Explanation: A lis pendens is a notice of litigation that may affect the title to a property.
Citation: F.S. 48.23
Explanation: A lis pendens is a notice of litigation that may affect the title to a property.
Citation: F.S. 48.23
Q34. What is the most commonly used deed in residential real estate?
Correct Answer: C
Explanation: The general warranty deed provides the greatest protection and is most commonly used in residential transactions.
Citation: F.S. 689.02
Explanation: The general warranty deed provides the greatest protection and is most commonly used in residential transactions.
Citation: F.S. 689.02
Q35. What is the minimum number of years of experience required to apply for a Florida broker license?
Correct Answer: C
Explanation: Applicants for broker licensure must have held an active real estate license for at least 24 months during the preceding 5 years.
Citation: F.S. 475.17(2)
Explanation: Applicants for broker licensure must have held an active real estate license for at least 24 months during the preceding 5 years.
Citation: F.S. 475.17(2)
Q36. What is the function of the habendum clause in a deed?
Correct Answer: C
Explanation: The habendum clause defines the ownership rights (e.g., “to have and to hold”) being conveyed in the deed.
Citation: F.S. 689.01 – Deed Requirements
Explanation: The habendum clause defines the ownership rights (e.g., “to have and to hold”) being conveyed in the deed.
Citation: F.S. 689.01 – Deed Requirements
Q37. What action is FREC authorized to take if a licensee is found guilty of a minor violation for the first time?
Correct Answer: C
Explanation: For a first-time minor offense, FREC may issue a notice of noncompliance rather than impose discipline.
Citation: 61J2-24.003
Explanation: For a first-time minor offense, FREC may issue a notice of noncompliance rather than impose discipline.
Citation: 61J2-24.003
Q38. Which document is used to convey a temporary right to use land?
Correct Answer: D
Explanation: A license grants a temporary, revocable right to use property — not ownership or interest.
Citation: Pearson VUE Handbook – Legal Interests in Land
Explanation: A license grants a temporary, revocable right to use property — not ownership or interest.
Citation: Pearson VUE Handbook – Legal Interests in Land
Q39. What is the primary advantage of FHA loans?
Correct Answer: C
Explanation: FHA loans are insured by HUD and offer low down payments and flexible credit requirements.
Citation: HUD FHA Loan Guidelines
Explanation: FHA loans are insured by HUD and offer low down payments and flexible credit requirements.
Citation: HUD FHA Loan Guidelines
Q40. What must be included in all Florida real estate contracts involving condominiums?
Correct Answer: C
Explanation: Florida law requires a condominium governance form that explains rules and responsibilities.
Citation: F.S. 718.503(2)
Explanation: Florida law requires a condominium governance form that explains rules and responsibilities.
Citation: F.S. 718.503(2)
Q41. What must happen for a valid enforceable contract to exist?
Correct Answer: B
Explanation: A valid contract requires competent parties, mutual assent, lawful object, and consideration.
Citation: F.S. 725.01; Contract Elements
Explanation: A valid contract requires competent parties, mutual assent, lawful object, and consideration.
Citation: F.S. 725.01; Contract Elements
Q42. What is the maximum time a license can remain involuntarily inactive?
Correct Answer: C
Explanation: A license becomes void after 2 years of involuntary inactive status.
Citation: F.S. 475.183(2)(b)
Explanation: A license becomes void after 2 years of involuntary inactive status.
Citation: F.S. 475.183(2)(b)
Q43. Which characteristic applies to real property but not personal property?
Correct Answer: C
Explanation: Real property is immobile and attached to the land; this is a key physical characteristic.
Citation: Pearson VUE Handbook – Property Characteristics
Explanation: Real property is immobile and attached to the land; this is a key physical characteristic.
Citation: Pearson VUE Handbook – Property Characteristics
Q44. Which event automatically terminates a single agency relationship?
Correct Answer: B
Explanation: A single agency relationship ends automatically when the transaction is completed at closing.
Citation: F.S. 475.278
Explanation: A single agency relationship ends automatically when the transaction is completed at closing.
Citation: F.S. 475.278
Q45. Which of the following activities requires a Florida real estate license?
Correct Answer: C
Explanation: Performing real estate services for another and for compensation requires a license.
Citation: F.S. 475.01(1)(a)
Explanation: Performing real estate services for another and for compensation requires a license.
Citation: F.S. 475.01(1)(a)
Q46. What is the purpose of the Florida Fair Housing Act?
Correct Answer: C
Explanation: The Florida Fair Housing Act mirrors the federal law and prohibits discrimination in housing-related transactions.
Citation: F.S. 760.20–37
Explanation: The Florida Fair Housing Act mirrors the federal law and prohibits discrimination in housing-related transactions.
Citation: F.S. 760.20–37
Q47. Who investigates complaints against real estate licensees in Florida?
Correct Answer: C
Explanation: The Division of Real Estate handles the investigation of formal complaints.
Citation: F.S. 475.045
Explanation: The Division of Real Estate handles the investigation of formal complaints.
Citation: F.S. 475.045
Q48. Which party is responsible for disclosing known material defects?
Correct Answer: D
Explanation: Sellers are legally obligated to disclose known material defects that affect the property’s value.
Citation: Johnson v. Davis, 480 So.2d 625 (Fla. 1985)
Explanation: Sellers are legally obligated to disclose known material defects that affect the property’s value.
Citation: Johnson v. Davis, 480 So.2d 625 (Fla. 1985)
Q49. What is required before a real estate license can be issued?
Correct Answer: B
Explanation: Applicants must pass the licensing exam and submit fingerprints for a background check before licensure.
Citation: F.S. 475.175
Explanation: Applicants must pass the licensing exam and submit fingerprints for a background check before licensure.
Citation: F.S. 475.175
Q50. Which of the following events does NOT terminate an offer?
Correct Answer: C
Explanation: Acceptance converts the offer into a binding contract — it does not terminate it.
Citation: Pearson VUE Handbook – Contract Law
Explanation: Acceptance converts the offer into a binding contract — it does not terminate it.
Citation: Pearson VUE Handbook – Contract Law
Q51. What must a broker do before placing a “For Sale” sign on a property?
Correct Answer: B
Explanation: Brokers may not advertise a property without the owner’s written consent.
Citation: F.S. 475.25(1)(c)
Explanation: Brokers may not advertise a property without the owner’s written consent.
Citation: F.S. 475.25(1)(c)
Q52. Which valuation approach is most appropriate for estimating the value of a church?
Correct Answer: B
Explanation: The cost-depreciation approach is ideal for properties with limited market data like churches or government buildings.
Citation: Pearson VUE Handbook – Appraisal Methods
Explanation: The cost-depreciation approach is ideal for properties with limited market data like churches or government buildings.
Citation: Pearson VUE Handbook – Appraisal Methods
Q53. Which type of agent is authorized to perform a wide range of activities for a client?
Correct Answer: A
Explanation: A general agent has broad authority to act for a principal, such as a property manager.
Citation: F.S. 475.01(1)(e)
Explanation: A general agent has broad authority to act for a principal, such as a property manager.
Citation: F.S. 475.01(1)(e)
Q54. A property’s assessed value is $180,000. It qualifies for a $50,000 homestead exemption. If the mill rate is 20 mills, what is the tax due?
Correct Answer: B
Explanation: ($180,000 – $50,000) × 0.020 = $2,600
Citation: F.S. 196.031; Florida Property Tax Math
Explanation: ($180,000 – $50,000) × 0.020 = $2,600
Citation: F.S. 196.031; Florida Property Tax Math
Q55. What is the primary function of the Real Estate Recovery Fund?
Correct Answer: B
Explanation: The Real Estate Recovery Fund compensates people who suffer monetary losses due to licensee misconduct.
Citation: F.S. 475.482
Explanation: The Real Estate Recovery Fund compensates people who suffer monetary losses due to licensee misconduct.
Citation: F.S. 475.482
Q56. What is the penalty for a first-degree misdemeanor under Chapter 475?
Correct Answer: A
Explanation: A first-degree misdemeanor may result in a fine up to $1,000 and/or imprisonment for up to 1 year.
Citation: F.S. 475.42(1)(a)
Explanation: A first-degree misdemeanor may result in a fine up to $1,000 and/or imprisonment for up to 1 year.
Citation: F.S. 475.42(1)(a)
Q57. Which type of depreciation is considered incurable?
Correct Answer: C
Explanation: Economic (external) obsolescence, such as a nearby landfill, is beyond the control of the owner and considered incurable.
Citation: Pearson VUE Handbook – Depreciation Types
Explanation: Economic (external) obsolescence, such as a nearby landfill, is beyond the control of the owner and considered incurable.
Citation: Pearson VUE Handbook – Depreciation Types
Q58. How many hours of post-licensing education are required for Florida sales associates?
Correct Answer: C
Explanation: Florida sales associates must complete 45 hours of post-licensing education before their first renewal.
Citation: F.S. 475.17(3)(a)
Explanation: Florida sales associates must complete 45 hours of post-licensing education before their first renewal.
Citation: F.S. 475.17(3)(a)
Q59. What is the purpose of a due-on-sale clause?
Correct Answer: C
Explanation: A due-on-sale clause allows the lender to call the loan due if the borrower transfers title.
Citation: Mortgage Law; Fannie Mae Guidelines
Explanation: A due-on-sale clause allows the lender to call the loan due if the borrower transfers title.
Citation: Mortgage Law; Fannie Mae Guidelines
Q60. What is the maximum number of years a homestead property can be protected from forced sale under Florida law?
Correct Answer: C
Explanation: Homestead protection remains in place as long as the property is the owner’s primary residence and all conditions are met.
Citation: Article X, Section 4 of the Florida Constitution
Explanation: Homestead protection remains in place as long as the property is the owner’s primary residence and all conditions are met.
Citation: Article X, Section 4 of the Florida Constitution
Q61. What type of listing agreement allows the seller to avoid paying a commission if they find the buyer themselves?
Correct Answer: D
Explanation: In an exclusive agency, the broker earns a commission only if they or another agent find the buyer — not if the seller does.
Citation: F.S. 475.01 – Listing Types
Explanation: In an exclusive agency, the broker earns a commission only if they or another agent find the buyer — not if the seller does.
Citation: F.S. 475.01 – Listing Types
Q62. Which appraisal method is most useful for estimating the value of an apartment complex?
Correct Answer: C
Explanation: The income approach is preferred for income-producing properties like apartments.
Citation: Pearson VUE Handbook – Appraisal Approaches
Explanation: The income approach is preferred for income-producing properties like apartments.
Citation: Pearson VUE Handbook – Appraisal Approaches
Q63. A transaction broker in Florida owes which of the following duties?
Correct Answer: C
Explanation: A transaction broker owes limited confidentiality, skill, care, honesty, and disclosure — not full fiduciary duties.
Citation: F.S. 475.278
Explanation: A transaction broker owes limited confidentiality, skill, care, honesty, and disclosure — not full fiduciary duties.
Citation: F.S. 475.278
Q64. What happens if a broker fails to complete post-licensing education before their first renewal?
Correct Answer: C
Explanation: Failing to complete post-licensing by the renewal date results in the license becoming null and void.
Citation: F.S. 475.17(3)(c)
Explanation: Failing to complete post-licensing by the renewal date results in the license becoming null and void.
Citation: F.S. 475.17(3)(c)
Q65. Which business entity cannot register as a real estate brokerage in Florida?
Correct Answer: C
Explanation: A joint venture is a temporary business relationship and cannot register as a brokerage.
Citation: F.S. 475.161
Explanation: A joint venture is a temporary business relationship and cannot register as a brokerage.
Citation: F.S. 475.161
Q66. What is required on all real estate advertising signs?
Correct Answer: B
Explanation: The name of the brokerage firm must appear on all advertising signs — including yard signs.
Citation: 61J2-10.025(1)
Explanation: The name of the brokerage firm must appear on all advertising signs — including yard signs.
Citation: 61J2-10.025(1)
Q67. What must be true for a deed to be valid in Florida?
Correct Answer: B
Explanation: A valid deed requires signature by a competent grantor and delivery to the grantee; recording is recommended but not required.
Citation: F.S. 689.01
Explanation: A valid deed requires signature by a competent grantor and delivery to the grantee; recording is recommended but not required.
Citation: F.S. 689.01
Q68. When must a license applicant disclose a prior criminal conviction?
Correct Answer: C
Explanation: Any criminal conviction — felony or misdemeanor — must be disclosed on the license application.
Citation: DBPR Application Disclosure Requirements
Explanation: Any criminal conviction — felony or misdemeanor — must be disclosed on the license application.
Citation: DBPR Application Disclosure Requirements
Q69. A licensee who misrepresents material facts in a transaction could be charged with:
Correct Answer: C
Explanation: Constructive fraud involves unintentional deception through breach of duty or negligence.
Citation: F.S. 475.25; Legal Definitions
Explanation: Constructive fraud involves unintentional deception through breach of duty or negligence.
Citation: F.S. 475.25; Legal Definitions
Q70. Who issues real estate licenses in Florida?
Correct Answer: C
Explanation: The Department of Business and Professional Regulation (DBPR) issues licenses; FREC governs rules and discipline.
Citation: F.S. 455.203
Explanation: The Department of Business and Professional Regulation (DBPR) issues licenses; FREC governs rules and discipline.
Citation: F.S. 455.203
Q71. What is the legal term for a false statement made with intent to deceive?
Correct Answer: C
Explanation: Fraud is the intentional misstatement or concealment of a material fact with the intent to deceive.
Citation: F.S. 475.25(1)(b)
Explanation: Fraud is the intentional misstatement or concealment of a material fact with the intent to deceive.
Citation: F.S. 475.25(1)(b)
Q72. Which entity administers the Florida Real Estate Commission?
Correct Answer: B
Explanation: The DBPR administers and supports the operations of FREC.
Citation: F.S. 475.02
Explanation: The DBPR administers and supports the operations of FREC.
Citation: F.S. 475.02
Q73. Which fiduciary duty survives after a transaction has closed?
Correct Answer: C
Explanation: Confidentiality survives termination of the agency relationship unless waived by the client.
Citation: F.S. 475.278(2)(a)
Explanation: Confidentiality survives termination of the agency relationship unless waived by the client.
Citation: F.S. 475.278(2)(a)
Q74. What is a writ of supersedeas?
Correct Answer: A
Explanation: A writ of supersedeas halts enforcement of a judgment pending appeal.
Citation: Florida Appellate Procedure
Explanation: A writ of supersedeas halts enforcement of a judgment pending appeal.
Citation: Florida Appellate Procedure
Q75. Which type of property ownership can only exist between spouses?
Correct Answer: C
Explanation: Tenancy by the entirety is exclusive to married couples and includes survivorship rights.
Citation: F.S. 689.115
Explanation: Tenancy by the entirety is exclusive to married couples and includes survivorship rights.
Citation: F.S. 689.115
Q76. What is the result of a licensee operating with an expired license for more than 2 years?
Correct Answer: C
Explanation: A license that remains expired or inactive for over 2 years becomes null and void by law.
Citation: F.S. 475.183
Explanation: A license that remains expired or inactive for over 2 years becomes null and void by law.
Citation: F.S. 475.183
Q77. What is an example of functional obsolescence?
Correct Answer: B
Explanation: Functional obsolescence is a loss of value due to outdated design or layout.
Citation: Pearson VUE – Types of Depreciation
Explanation: Functional obsolescence is a loss of value due to outdated design or layout.
Citation: Pearson VUE – Types of Depreciation
Q78. When must a sales associate deliver escrow funds to their broker?
Correct Answer: B
Explanation: Florida law requires escrow funds to be delivered by the next business day.
Citation: F.S. 475.25(1)(k)
Explanation: Florida law requires escrow funds to be delivered by the next business day.
Citation: F.S. 475.25(1)(k)
Q79. What is the purpose of a blanket mortgage?
Correct Answer: B
Explanation: A blanket mortgage encumbers multiple properties and often includes a release clause.
Citation: Pearson VUE – Mortgage Terms
Explanation: A blanket mortgage encumbers multiple properties and often includes a release clause.
Citation: Pearson VUE – Mortgage Terms
Q80. What is the primary difference between void and voidable contracts?
Correct Answer: C
Explanation: A void contract is never valid, while a voidable one may be enforced unless rescinded.
Citation: F.S. 725.01 – Contract Law
Explanation: A void contract is never valid, while a voidable one may be enforced unless rescinded.
Citation: F.S. 725.01 – Contract Law
Q81. What is the effect of a subrogation clause in title insurance?
Correct Answer: B
Explanation: A subrogation clause permits the insurer to assume the rights of the insured after a claim payout.
Citation: Title Insurance Glossary
Explanation: A subrogation clause permits the insurer to assume the rights of the insured after a claim payout.
Citation: Title Insurance Glossary
Q82. How many days does a buyer have to cancel a timeshare contract after signing?
Correct Answer: B
Explanation: Florida law allows a 7-day cancellation period for new timeshare contracts.
Citation: F.S. 721.10
Explanation: Florida law allows a 7-day cancellation period for new timeshare contracts.
Citation: F.S. 721.10
Q83. What is the name for a mortgage where payments do not cover the full interest due?
Correct Answer: C
Explanation: In a negative amortization mortgage, unpaid interest is added to the principal balance.
Citation: Pearson VUE – Mortgage Types
Explanation: In a negative amortization mortgage, unpaid interest is added to the principal balance.
Citation: Pearson VUE – Mortgage Types
Q84. What must be included in every brokerage relationship disclosure?
Correct Answer: C
Explanation: Brokerage disclosures must specify the nature of the relationship and the duties owed.
Citation: F.S. 475.278(3)
Explanation: Brokerage disclosures must specify the nature of the relationship and the duties owed.
Citation: F.S. 475.278(3)
Q85. What is required for a developer to sell lots under the Interstate Land Sales Full Disclosure Act (ILSA)?
Correct Answer: B
Explanation: ILSA requires developers to register subdivisions with the CFPB and provide a property report.
Citation: 15 U.S.C. 1701–1720
Explanation: ILSA requires developers to register subdivisions with the CFPB and provide a property report.
Citation: 15 U.S.C. 1701–1720
Q86. What is an amortized loan?
Correct Answer: C
Explanation: An amortized loan includes regular payments that retire the loan balance over time.
Citation: Pearson VUE – Mortgage Fundamentals
Explanation: An amortized loan includes regular payments that retire the loan balance over time.
Citation: Pearson VUE – Mortgage Fundamentals
Q87. What is the effect of a tenancy by the entireties if one spouse dies?
Correct Answer: B
Explanation: Tenancy by the entireties includes survivorship rights, granting full ownership to the surviving spouse.
Citation: F.S. 689.115
Explanation: Tenancy by the entireties includes survivorship rights, granting full ownership to the surviving spouse.
Citation: F.S. 689.115
Q88. What happens when a tenant continues to occupy property after the lease expires without landlord permission?
Correct Answer: C
Explanation: A tenant at sufferance is one who remains without legal right after lease expiration.
Citation: Pearson VUE – Leasehold Estates
Explanation: A tenant at sufferance is one who remains without legal right after lease expiration.
Citation: Pearson VUE – Leasehold Estates
Q89. What must a sales associate do when receiving a written complaint from a customer?
Correct Answer: C
Explanation: Sales associates must promptly notify their employing broker of any complaint received.
Citation: F.S. 475.25(1)(h)
Explanation: Sales associates must promptly notify their employing broker of any complaint received.
Citation: F.S. 475.25(1)(h)
Q90. What does the “effective date” of a contract represent?
Correct Answer: C
Explanation: A contract becomes effective once the final party signs and communicates acceptance.
Citation: Contract Law Principles
Explanation: A contract becomes effective once the final party signs and communicates acceptance.
Citation: Contract Law Principles
Q91. What is the maximum civil penalty for violating the Fair Housing Act?
Correct Answer: C
Explanation: For a first violation, the civil penalty under the Fair Housing Act can be up to $16,000.
Citation: 42 U.S.C. § 3612(g)(3)
Explanation: For a first violation, the civil penalty under the Fair Housing Act can be up to $16,000.
Citation: 42 U.S.C. § 3612(g)(3)
Q92. What kind of deed provides the least protection to the grantee?
Correct Answer: C
Explanation: A quitclaim deed offers no warranties — it simply transfers whatever interest the grantor may have.
Citation: F.S. 689.01
Explanation: A quitclaim deed offers no warranties — it simply transfers whatever interest the grantor may have.
Citation: F.S. 689.01
Q93. What is the statute of limitations for written contracts in Florida?
Correct Answer: C
Explanation: The statute of limitations for written contracts in Florida is 5 years.
Citation: F.S. 95.11(2)(b)
Explanation: The statute of limitations for written contracts in Florida is 5 years.
Citation: F.S. 95.11(2)(b)
Q94. Which of the following is not one of the four unities required for joint tenancy?
Correct Answer: D
Explanation: The four unities are time, title, interest, and possession. “Warranty” is not one of them.
Citation: Pearson VUE – Forms of Ownership
Explanation: The four unities are time, title, interest, and possession. “Warranty” is not one of them.
Citation: Pearson VUE – Forms of Ownership
Q95. What action may FREC take if a licensee is found guilty of a second-degree misdemeanor?
Correct Answer: C
Explanation: FREC may impose fines, suspension, or revocation for criminal violations tied to licensee conduct.
Citation: F.S. 475.25
Explanation: FREC may impose fines, suspension, or revocation for criminal violations tied to licensee conduct.
Citation: F.S. 475.25
Q96. Which of the following best describes the term “freehold estate”?
Correct Answer: B
Explanation: A freehold estate is an ownership interest in land that is not limited by time.
Citation: Pearson VUE Handbook – Property Rights
Explanation: A freehold estate is an ownership interest in land that is not limited by time.
Citation: Pearson VUE Handbook – Property Rights
Q97. Which Florida statute governs escrow disbursement procedures?
Correct Answer: A
Explanation: F.S. 475.25 includes procedures and timelines for resolving escrow disputes.
Citation: F.S. 475.25(1)(d)
Explanation: F.S. 475.25 includes procedures and timelines for resolving escrow disputes.
Citation: F.S. 475.25(1)(d)
Q98. What is the primary purpose of RESPA?
Correct Answer: C
Explanation: RESPA ensures that consumers receive disclosures of settlement costs and prevents kickbacks.
Citation: Real Estate Settlement Procedures Act (12 U.S.C. § 2601)
Explanation: RESPA ensures that consumers receive disclosures of settlement costs and prevents kickbacks.
Citation: Real Estate Settlement Procedures Act (12 U.S.C. § 2601)
Q99. What does the term “redlining” refer to?
Correct Answer: C
Explanation: Redlining refers to the illegal practice of denying loans based on a property’s location, often targeting minorities.
Citation: Fair Housing Act – Lending Practices
Explanation: Redlining refers to the illegal practice of denying loans based on a property’s location, often targeting minorities.
Citation: Fair Housing Act – Lending Practices
Q100. What happens if a sales associate works for two brokers at the same time?
Correct Answer: C
Explanation: A sales associate may only be registered under one broker at a time. Working for multiple brokers is unlawful.
Citation: F.S. 475.23
Explanation: A sales associate may only be registered under one broker at a time. Working for multiple brokers is unlawful.
Citation: F.S. 475.23
Q101. When a broker receives escrow funds in the form of a post-dated check, what must they do before accepting it on behalf of the seller?
Correct Answer: C
Explanation: A post-dated check is a promissory note. Broker must disclose and get seller’s written consent before accepting.
Citation: FREC Rule 61J2-14.008(4)
Explanation: A post-dated check is a promissory note. Broker must disclose and get seller’s written consent before accepting.
Citation: FREC Rule 61J2-14.008(4)
Q102. A real estate licensee preparing a CMA for a potential listing must avoid:
Correct Answer: B
Explanation: CMAs may be prepared by licensees but cannot include a fee unless the person is also a certified appraiser.
Citation: F.S. 475.612
Explanation: CMAs may be prepared by licensees but cannot include a fee unless the person is also a certified appraiser.
Citation: F.S. 475.612
Q103. What is the legal status of a listing contract that lacks a definite expiration date?
Correct Answer: D
Explanation: Florida law requires all listing agreements to have a definite expiration date to be valid.
Citation: F.S. 475.25(1)(r)
Explanation: Florida law requires all listing agreements to have a definite expiration date to be valid.
Citation: F.S. 475.25(1)(r)
Q104. Which type of tenancy includes a survivorship feature and can only be held by spouses?
Correct Answer: C
Explanation: Only tenancy by the entirety is limited to married couples and includes the right of survivorship automatically.
Citation: F.S. 689.115
Explanation: Only tenancy by the entirety is limited to married couples and includes the right of survivorship automatically.
Citation: F.S. 689.115
Q105. A real estate licensee is acting as a single agent. What fiduciary duty is not owed to the buyer or seller?
Correct Answer: D
Explanation: Limited confidentiality applies only in no-brokerage or transaction broker relationships. A single agent owes full fiduciary duties.
Citation: F.S. 475.278(3)
Explanation: Limited confidentiality applies only in no-brokerage or transaction broker relationships. A single agent owes full fiduciary duties.
Citation: F.S. 475.278(3)
Q106. What document must a developer of more than 20 new condominium units provide to each buyer?
Correct Answer: D
Explanation: For new condos with 20+ units, the developer must deliver a prospectus with disclosures and budget.
Citation: F.S. 718.504
Explanation: For new condos with 20+ units, the developer must deliver a prospectus with disclosures and budget.
Citation: F.S. 718.504
Q107. A broker associate forms a PA (Professional Association). Who must pay their commission?
Correct Answer: C
Explanation: All commissions must be paid to the PA by the broker who holds the associate’s license not directly by clients.
Citation: F.S. 475.161
Explanation: All commissions must be paid to the PA by the broker who holds the associate’s license not directly by clients.
Citation: F.S. 475.161
Q108. What is the minimum time a broker must retain real estate transaction records?
Correct Answer: C
Explanation: Brokers must retain records for 5 years, or 2 years after litigation if applicable.
Citation: F.S. 475.5015(1)
Explanation: Brokers must retain records for 5 years, or 2 years after litigation if applicable.
Citation: F.S. 475.5015(1)
Q109. A seller instructs their agent not to disclose a known sinkhole under the home. What must the agent do?
Correct Answer: C
Explanation: Material facts must be disclosed even if the seller requests silence. Failing to do so violates FREC and license law.
Citation: Johnson v. Davis, F.S. 475.278
Explanation: Material facts must be disclosed even if the seller requests silence. Failing to do so violates FREC and license law.
Citation: Johnson v. Davis, F.S. 475.278
Q110. Which investment property analysis tool best compares properties with different levels of debt service?
Correct Answer: D
Explanation: Cash-on-cash return compares the cash invested with the annual before-tax cash flow ideal when loans vary.
Citation: Pearson VUE Candidate Handbook
Explanation: Cash-on-cash return compares the cash invested with the annual before-tax cash flow ideal when loans vary.
Citation: Pearson VUE Candidate Handbook
Q111. A licensee who fails to complete the post-licensing education by the expiration date of their initial license will:
Correct Answer: C
Explanation: Failure to complete post-licensing education results in license expiration. The license becomes null and void.
Citation: F.S. 475.17(6)
Explanation: Failure to complete post-licensing education results in license expiration. The license becomes null and void.
Citation: F.S. 475.17(6)
Q112. Which of the following best defines a fixture under Florida real estate law?
Correct Answer: C
Explanation: Fixtures are items initially personal property but legally transferred as real property once attached.
Citation: F.S. 689.01, legal test of intent and attachment
Explanation: Fixtures are items initially personal property but legally transferred as real property once attached.
Citation: F.S. 689.01, legal test of intent and attachment
Q113. What is the most appropriate legal action if a buyer backs out after all contingencies are satisfied and refuses to close?
Correct Answer: C
Explanation: When contingencies are met, the seller may pursue specific performance to force the sale per the contract.
Citation: Pearson VUE Candidate Handbook Contracts
Explanation: When contingencies are met, the seller may pursue specific performance to force the sale per the contract.
Citation: Pearson VUE Candidate Handbook Contracts
Q114. What must a broker do if an escrow dispute cannot be resolved within a reasonable time?
Correct Answer: C
Explanation: Florida brokers must begin one of four settlement procedures within 30 business days of a dispute.
Citation: F.S. 475.25(1)(d), 61J2-10.032
Explanation: Florida brokers must begin one of four settlement procedures within 30 business days of a dispute.
Citation: F.S. 475.25(1)(d), 61J2-10.032
Q115. A condominium resale buyer has how many business days to cancel the contract upon receipt of required disclosures?
Correct Answer: B
Explanation: Buyers of resale condos in Florida have 3 business days to cancel, but new condo buyers get 15 calendar days.
Citation: F.S. 718.503
Explanation: Buyers of resale condos in Florida have 3 business days to cancel, but new condo buyers get 15 calendar days.
Citation: F.S. 718.503
Q116. Which of the following is true about a tenancy at sufferance in Florida?
Correct Answer: D
Explanation: A tenancy at sufferance arises when the tenant holds over without permission and no new lease exists.
Citation: F.S. 83.58
Explanation: A tenancy at sufferance arises when the tenant holds over without permission and no new lease exists.
Citation: F.S. 83.58
Q117. The brokerage relationship disclosure requirements apply in which of the following situations?
Correct Answer: D
Explanation: Residential sales of 4 units or fewer and residential lots trigger disclosure requirements.
Citation: F.S. 475.278(5)(A.
Explanation: Residential sales of 4 units or fewer and residential lots trigger disclosure requirements.
Citation: F.S. 475.278(5)(A.
Q118. A developer selling 100 vacant lots requires buyers to sign an agreement stating they waive their right to rescind. What is the legal effect of this clause?
Correct Answer: C
Explanation: Rescission rights for certain transactions are statutory and cannot be waived, even if agreed to in writing.
Citation: F.S. 720.401(2)
Explanation: Rescission rights for certain transactions are statutory and cannot be waived, even if agreed to in writing.
Citation: F.S. 720.401(2)
Q119. A real estate broker hires unlicensed assistants to show property and discuss features with buyers. This is a violation because:
Correct Answer: B
Explanation: Discussing property features or showing homes involves judgment and violates license law if done by unlicensed assistants.
Citation: F.S. 475.01(1)(A.
Explanation: Discussing property features or showing homes involves judgment and violates license law if done by unlicensed assistants.
Citation: F.S. 475.01(1)(A.
Q120. Which of the following best describes the purpose of a due-on-sale clause?
Correct Answer: C
Explanation: Due-on-sale clauses give the lender the right to call the full balance due if the property is sold or transferred.
Citation: Standard FNMA mortgage clause; Pearson VUE Handbook
Explanation: Due-on-sale clauses give the lender the right to call the full balance due if the property is sold or transferred.
Citation: Standard FNMA mortgage clause; Pearson VUE Handbook
Q121. Under Florida law, which of the following is not required for a deed to be valid?
Correct Answer: B
Explanation: A habendum clause (“to have and to hold”) is customary but not required. A valid deed needs grantor signature, legal description, and witnesses.
Citation: F.S. 689.01
Explanation: A habendum clause (“to have and to hold”) is customary but not required. A valid deed needs grantor signature, legal description, and witnesses.
Citation: F.S. 689.01
Q122. A broker forgets to include the brokerage name in an online ad but includes the phone number and agent name. This is considered:
Correct Answer: A
Explanation: Any real estate ad that omits the registered name of the brokerage is considered blind advertising and is illegal in Florida.
Citation: F.S. 475.25(1)(c)
Explanation: Any real estate ad that omits the registered name of the brokerage is considered blind advertising and is illegal in Florida.
Citation: F.S. 475.25(1)(c)
Q123. If a borrower is assumed to have a 360-month amortized mortgage, what is most likely true about the loan?
Correct Answer: C
Explanation: A 360-month amortization schedule refers to 30 years (12 months × 30).
Citation: Pearson VUE Candidate Handbook Mortgage Math
Explanation: A 360-month amortization schedule refers to 30 years (12 months × 30).
Citation: Pearson VUE Candidate Handbook Mortgage Math
Q124. Which element distinguishes a tenancy in common from a joint tenancy?
Correct Answer: C
Explanation: Joint tenancy includes survivorship; tenancy in common does not.
Citation: F.S. 689.15
Explanation: Joint tenancy includes survivorship; tenancy in common does not.
Citation: F.S. 689.15
Q125. When must a licensee provide the No Brokerage Relationship notice to a potential customer?
Correct Answer: A
Explanation: Disclosure must be made before showing property when no brokerage relationship exists.
Citation: F.S. 475.278(4)
Explanation: Disclosure must be made before showing property when no brokerage relationship exists.
Citation: F.S. 475.278(4)
Q126. Which of the following would result in the revocation of a Florida real estate license without the opportunity for reinstatement?
Correct Answer: D
Explanation: A license issued in error or through administrative mistake is considered void ab initio and must be revoked.
Citation: F.S. 120.60(6)
Explanation: A license issued in error or through administrative mistake is considered void ab initio and must be revoked.
Citation: F.S. 120.60(6)
Q127. A licensee who receives a citation from the DBPR must respond within:
Correct Answer: B
Explanation: Licensees must accept or dispute citations within 15 days, or they forfeit their right to challenge it.
Citation: F.S. 455.224(2)
Explanation: Licensees must accept or dispute citations within 15 days, or they forfeit their right to challenge it.
Citation: F.S. 455.224(2)
Q128. What is the penalty for a broker who fails to maintain sign-in logs for showing a listed property?
Correct Answer: C
Explanation: Sign-in logs are not legally required under Florida license law.
Citation: No statutory basis; common practice, not regulation
Explanation: Sign-in logs are not legally required under Florida license law.
Citation: No statutory basis; common practice, not regulation
Q129. The market value of a property is $210,000. The assessed value is $190,000, and the homestead exemption is $50,000. What is the taxable value?
Correct Answer: A
Explanation: Assessed value ($190,000) exemption ($50,000) = $140,000 taxable value.
Citation: F.S. 196.031
Explanation: Assessed value ($190,000) exemption ($50,000) = $140,000 taxable value.
Citation: F.S. 196.031
Q130. What appraisal principle states that adding improvements contributes less and less to value over time?
Correct Answer: D
Explanation: The law of diminishing returns states that improvements eventually contribute less to value than they cost.
Citation: Pearson VUE Handbook Appraisal Principles
Explanation: The law of diminishing returns states that improvements eventually contribute less to value than they cost.
Citation: Pearson VUE Handbook Appraisal Principles
Q131. A licensee fails to complete continuing education by the license renewal deadline. The license status becomes:
Correct Answer: C
Explanation: Failure to complete CE results in involuntary inactive status not suspension until education is completed.
Citation: F.S. 475.183
Explanation: Failure to complete CE results in involuntary inactive status not suspension until education is completed.
Citation: F.S. 475.183
Q132. Which document transfers title but contains no warranties against encumbrances?
Correct Answer: C
Explanation: A quitclaim deed makes no promises or guarantees it simply conveys any interest the grantor has.
Citation: F.S. 689.07
Explanation: A quitclaim deed makes no promises or guarantees it simply conveys any interest the grantor has.
Citation: F.S. 689.07
Q133. If a landlord does not intend to make a claim on a security deposit, the deposit must be returned within:
Correct Answer: B
Explanation: The landlord has 15 days to return the deposit if there is no claim.
Citation: F.S. 83.49(3)
Explanation: The landlord has 15 days to return the deposit if there is no claim.
Citation: F.S. 83.49(3)
Q134. What is the effect of a lis pendens filed against a property?
Correct Answer: C
Explanation: A lis pendens is public notice of pending litigation that may affect title.
Citation: F.S. 48.23
Explanation: A lis pendens is public notice of pending litigation that may affect title.
Citation: F.S. 48.23
Q135. A broker earns a commission after procuring a ready, willing, and able buyer at full terms, but the seller refuses to close. The broker is:
Correct Answer: C
Explanation: If a broker performs per contract, but the seller defaults, the broker may sue for earned commission.
Citation: F.S. 475.42
Explanation: If a broker performs per contract, but the seller defaults, the broker may sue for earned commission.
Citation: F.S. 475.42
Q136. Under RESPA, a Loan Estimate must be provided within how many business days of receiving a loan application?
Correct Answer: B
Explanation: RESPA requires the Loan Estimate (LE) to be delivered within 3 business days.
Citation: RESPA 12 CFR §1024.7
Explanation: RESPA requires the Loan Estimate (LE) to be delivered within 3 business days.
Citation: RESPA 12 CFR §1024.7
Q137. What is the maximum allowable homestead exemption in Florida for a qualifying resident over age 65, in counties that offer the full benefit?
Correct Answer: D
Explanation: The basic $50,000 plus up to $50,000 additional (by ordinance) for seniors meeting income thresholds.
Citation: F.S. 196.075
Explanation: The basic $50,000 plus up to $50,000 additional (by ordinance) for seniors meeting income thresholds.
Citation: F.S. 196.075
Q138. Which of the following must be included in all written residential listing agreements under Florida law?
Correct Answer: C
Explanation: A listing without a specific expiration date is void and a license law violation.
Citation: F.S. 475.25(1)(r)
Explanation: A listing without a specific expiration date is void and a license law violation.
Citation: F.S. 475.25(1)(r)
Q139. A licensed real estate agent is found guilty of theft in another state. What must they do?
Correct Answer: A
Explanation: Florida law requires reporting of all criminal convictions within 30 days.
Citation: F.S. 455.227(1)(t)
Explanation: Florida law requires reporting of all criminal convictions within 30 days.
Citation: F.S. 455.227(1)(t)
Q140. What clause in a mortgage makes the entire loan due if a borrower misses several payments?
Correct Answer: B
Explanation: The acceleration clause allows the lender to call the full loan balance due after default.
Citation: Pearson VUE Handbook Mortgage Clauses
Explanation: The acceleration clause allows the lender to call the full loan balance due after default.
Citation: Pearson VUE Handbook Mortgage Clauses
Q141. A property manager fails to maintain the premises, resulting in tenant injury. The owner may still be liable under which legal doctrine?
Correct Answer: B
Explanation: Under vicarious liability, the owner may be held responsible for the negligent acts of the manager acting within scope.
Citation: Pearson VUE Handbook Property Management
Explanation: Under vicarious liability, the owner may be held responsible for the negligent acts of the manager acting within scope.
Citation: Pearson VUE Handbook Property Management
Q142. What type of lease increases the tenant’s rent periodically based on a set schedule?
Correct Answer: D
Explanation: A graduated lease (also called a step-up lease) includes scheduled rent increases.
Citation: F.S. 689.01, Lease Types
Explanation: A graduated lease (also called a step-up lease) includes scheduled rent increases.
Citation: F.S. 689.01, Lease Types
Q143. Which disclosure is not required in a residential transaction involving a condominium resale?
Correct Answer: D
Explanation: Lead-based paint disclosures apply only to homes built before 1978 not condominiums specifically unless age applies.
Citation: 42 U.S. Code § 4852d
Explanation: Lead-based paint disclosures apply only to homes built before 1978 not condominiums specifically unless age applies.
Citation: 42 U.S. Code § 4852d
Q144. What is the effect of a zoning variance?
Correct Answer: C
Explanation: A variance allows deviation from zoning without amending the zoning ordinance itself.
Citation: F.S. 163.3164
Explanation: A variance allows deviation from zoning without amending the zoning ordinance itself.
Citation: F.S. 163.3164
Q145. A broker receives a referral fee from a title company without disclosure. This violates which federal law?
Correct Answer: B
Explanation: RESPA prohibits kickbacks and unearned fees for referrals in federally related mortgage transactions.
Citation: RESPA, 12 U.S. Code §2607
Explanation: RESPA prohibits kickbacks and unearned fees for referrals in federally related mortgage transactions.
Citation: RESPA, 12 U.S. Code §2607
Q146. A transaction broker must disclose their role to all parties:
Correct Answer: D
Explanation: Florida law requires no written disclosure for transaction brokerage only for single agent and no brokerage relationships.
Citation: F.S. 475.278(1)(b)
Explanation: Florida law requires no written disclosure for transaction brokerage only for single agent and no brokerage relationships.
Citation: F.S. 475.278(1)(b)
Q147. A foreign investor sells Florida real estate. What is required at closing under FIRPTA?
Correct Answer: C
Explanation: Under FIRPTA, the buyer is responsible for withholding 15% of the gross sale price from a foreign seller.
Citation: FIRPTA 26 U.S.C. §1445
Explanation: Under FIRPTA, the buyer is responsible for withholding 15% of the gross sale price from a foreign seller.
Citation: FIRPTA 26 U.S.C. §1445
Q148. What is the maximum fine per offense that the FREC can impose for a license law violation?
Correct Answer: C
Explanation: FREC may impose a civil fine of up to $5,000 per violation.
Citation: F.S. 475.25(1)
Explanation: FREC may impose a civil fine of up to $5,000 per violation.
Citation: F.S. 475.25(1)
Q149. The statute of frauds in Florida requires that:
Correct Answer: C
Explanation: The statute of frauds mandates that contracts for sale of real estate must be in writing and signed.
Citation: F.S. 725.01
Explanation: The statute of frauds mandates that contracts for sale of real estate must be in writing and signed.
Citation: F.S. 725.01
Q150. Which approach to value would be most appropriate for a unique church building?
Correct Answer: C
Explanation: Special-purpose properties like churches are best valued by cost minus depreciation, as comps are rare.
Citation: Pearson VUE Appraisal Methods
Explanation: Special-purpose properties like churches are best valued by cost minus depreciation, as comps are rare.
Citation: Pearson VUE Appraisal Methods
Q151. What is the purpose of the tax certificate sale in Florida?
Correct Answer: B
Explanation: Tax certificates are sold to investors so that counties can recover delinquent taxes.
Citation: F.S. 197.432
Explanation: Tax certificates are sold to investors so that counties can recover delinquent taxes.
Citation: F.S. 197.432
Q152. A broker assigns another licensee in the firm to a buyer and a different one to the seller in the same transaction. This is known as:
Correct Answer: C
Explanation: Only in non-residential transactions with consent may a broker designate licensees to represent each side.
Citation: F.S. 475.278(5)(A.
Explanation: Only in non-residential transactions with consent may a broker designate licensees to represent each side.
Citation: F.S. 475.278(5)(A.
Q153. What type of loan clause prevents the borrower from transferring the mortgage to another party?
Correct Answer: D
Explanation: The due-on-sale clause allows lenders to demand full repayment upon transfer of title.
Citation: FNMA Uniform Security Instrument
Explanation: The due-on-sale clause allows lenders to demand full repayment upon transfer of title.
Citation: FNMA Uniform Security Instrument
Q154. A seller gives false information about the property boundaries. The buyer discovers the truth after closing. Which legal claim is most appropriate?
Correct Answer: D
Explanation: Intentional or negligent misstatements about facts like boundaries may support a misrepresentation claim.
Citation: Johnson v. Davis
Explanation: Intentional or negligent misstatements about facts like boundaries may support a misrepresentation claim.
Citation: Johnson v. Davis
Q155. The buyer of a timeshare unit has how many calendar days to cancel the contract?
Correct Answer: C
Explanation: Timeshare buyers have a 10-day cancellation period under Florida law.
Citation: F.S. 721.10
Explanation: Timeshare buyers have a 10-day cancellation period under Florida law.
Citation: F.S. 721.10
Q156. A brokerage account used to hold escrow funds must be:
Correct Answer: C
Explanation: Escrow funds must be placed in a Florida-based depository interest-bearing or not with proper records.
Citation: F.S. 475.25(1)(k)
Explanation: Escrow funds must be placed in a Florida-based depository interest-bearing or not with proper records.
Citation: F.S. 475.25(1)(k)
Q157. When using the income approach, what is the formula for estimating value?
Correct Answer: B
Explanation: Value = Net Operating Income ÷ Capitalization Rate
Citation: Pearson VUE Handbook Income Approach
Explanation: Value = Net Operating Income ÷ Capitalization Rate
Citation: Pearson VUE Handbook Income Approach
Q158. A buyer’s earnest money check bounces after contract execution. What is the most likely outcome?
Correct Answer: C
Explanation: A bounced deposit is considered a default by the buyer, allowing the seller to cancel or seek remedies.
Citation: F.S. 475.25; Contract law
Explanation: A bounced deposit is considered a default by the buyer, allowing the seller to cancel or seek remedies.
Citation: F.S. 475.25; Contract law
Q159. A Florida broker may hold multiple broker licenses only when:
Correct Answer: C
Explanation: Multiple broker licenses are allowed if each brokerage is independently registered with the state.
Citation: F.S. 475.215
Explanation: Multiple broker licenses are allowed if each brokerage is independently registered with the state.
Citation: F.S. 475.215
Q160. A broker’s license is suspended. What happens to the sales associates registered under that broker?
Correct Answer: B
Explanation: When a broker’s license is suspended, associated sales associates become involuntarily inactive.
Citation: F.S. 475.24
Explanation: When a broker’s license is suspended, associated sales associates become involuntarily inactive.
Citation: F.S. 475.24
Q161. Which action would most likely constitute commingling of funds?
Correct Answer: A
Explanation: Mixing personal or business funds with client escrow funds is commingling and a violation of license law.
Citation: F.S. 475.25(1)(k)
Explanation: Mixing personal or business funds with client escrow funds is commingling and a violation of license law.
Citation: F.S. 475.25(1)(k)
Q162. A broker receives conflicting demands for escrow funds and notifies FREC. How long does the broker have to implement a settlement procedure?
Correct Answer: D
Explanation: Brokers must initiate one of the four settlement procedures within 30 business days of receiving conflicting demands.
Citation: F.S. 475.25(1)(d)
Explanation: Brokers must initiate one of the four settlement procedures within 30 business days of receiving conflicting demands.
Citation: F.S. 475.25(1)(d)
Q163. Which document is legally required when an owner finances the sale of residential property with an agreement to accept installment payments?
Correct Answer: D
Explanation: A contract for deed allows the seller to retain title while the buyer makes payments over time.
Citation: Pearson VUE Handbook Seller Financing
Explanation: A contract for deed allows the seller to retain title while the buyer makes payments over time.
Citation: Pearson VUE Handbook Seller Financing
Q164. A landlord wishes to terminate a month-to-month tenancy. How much notice is required under Florida law?
Correct Answer: B
Explanation: Either party may terminate a month-to-month residential lease by giving at least 15 days’ written notice.
Citation: F.S. 83.57(3)
Explanation: Either party may terminate a month-to-month residential lease by giving at least 15 days’ written notice.
Citation: F.S. 83.57(3)
Q165. A property’s zoning is changed and the structure no longer conforms to the code but is allowed to remain. This is a:
Correct Answer: C
Explanation: A legal nonconforming use arises when a zoning law changes but an existing use is grandfathered in.
Citation: F.S. 163.3164(14)
Explanation: A legal nonconforming use arises when a zoning law changes but an existing use is grandfathered in.
Citation: F.S. 163.3164(14)
Q166. A real estate licensee who violates the Fair Housing Act may be subject to action by:
Correct Answer: B
Explanation: Both HUD and state licensing agencies like DBPR can take action for fair housing violations.
Citation: Fair Housing Act; F.S. 760.20 760.37
Explanation: Both HUD and state licensing agencies like DBPR can take action for fair housing violations.
Citation: Fair Housing Act; F.S. 760.20 760.37
Q167. In a 1031 tax-deferred exchange, which of the following is not a requirement?
Correct Answer: D
Explanation: The properties must be “like-kind” in purpose, not in location or type.
Citation: IRS Code §1031
Explanation: The properties must be “like-kind” in purpose, not in location or type.
Citation: IRS Code §1031
Q168. When using the cost-depreciation approach, which type of depreciation is usually not curable?
Correct Answer: C
Explanation: External (economic) obsolescence, like a nearby landfill, is usually incurable.
Citation: Pearson VUE Handbook Appraisal
Explanation: External (economic) obsolescence, like a nearby landfill, is usually incurable.
Citation: Pearson VUE Handbook Appraisal
Q169. A licensed personal assistant is legally allowed to:
Correct Answer: C
Explanation: Only non-licensed clerical and administrative tasks are permitted for personal assistants.
Citation: FREC Guidelines; F.S. 475.01
Explanation: Only non-licensed clerical and administrative tasks are permitted for personal assistants.
Citation: FREC Guidelines; F.S. 475.01
Q170. A real estate brokerage changes business address. What is required of the broker?
Correct Answer: B
Explanation: Brokers must notify DBPR within 10 days (not 30), but 30 was included to make it harder.
Citation: F.S. 475.23
Explanation: Brokers must notify DBPR within 10 days (not 30), but 30 was included to make it harder.
Citation: F.S. 475.23
Q171. A property is sold as is with full disclosures. Which defect must still be disclosed to the buyer?
Correct Answer: B
Explanation: Material defects known to the seller and not observable must be disclosed, even with “as is” terms.
Citation: Johnson v. Davis
Explanation: Material defects known to the seller and not observable must be disclosed, even with “as is” terms.
Citation: Johnson v. Davis
Q172. When calculating loan-to-value (LTV), which figure is used in the denominator?
Correct Answer: B
Explanation: LTV is based on the lower of the sales price or appraised value.
Citation: Pearson VUE Handbook Mortgage Calculations
Explanation: LTV is based on the lower of the sales price or appraised value.
Citation: Pearson VUE Handbook Mortgage Calculations
Q173. What is the penalty for performing real estate services for compensation without a license?
Correct Answer: D
Explanation: Unlicensed activity is a third-degree felony in Florida when performed for compensation.
Citation: F.S. 475.42(1)(A.
Explanation: Unlicensed activity is a third-degree felony in Florida when performed for compensation.
Citation: F.S. 475.42(1)(A.
Q174. A buyer applies for an FHA loan. What is the maximum allowable seller contribution toward closing costs?
Correct Answer: B
Explanation: FHA allows up to 6% seller contribution toward closing costs.
Citation: HUD Handbook 4000.1
Explanation: FHA allows up to 6% seller contribution toward closing costs.
Citation: HUD Handbook 4000.1
Q175. In an agency relationship, fiduciary duties are owed to:
Correct Answer: B
Explanation: Fiduciary duties are owed only to the principal (client) in a single agency relationship.
Citation: F.S. 475.278(3)
Explanation: Fiduciary duties are owed only to the principal (client) in a single agency relationship.
Citation: F.S. 475.278(3)
Q176. A joint tenancy can be destroyed if:
Correct Answer: C
Explanation: Selling one’s interest severs the joint tenancy, converting it to a tenancy in common.
Citation: F.S. 689.15
Explanation: Selling one’s interest severs the joint tenancy, converting it to a tenancy in common.
Citation: F.S. 689.15
Q177. A prospective buyer asks a broker about the racial demographics of a neighborhood. The broker should:
Correct Answer: C
Explanation: Brokers must avoid steering or implying preferences; refer to objective, third-party sources.
Citation: Fair Housing Act
Explanation: Brokers must avoid steering or implying preferences; refer to objective, third-party sources.
Citation: Fair Housing Act
Q178. When must a broker deposit escrow funds into a trust account?
Correct Answer: C
Explanation: Florida brokers must deposit escrow funds within 3 business days of receipt.
Citation: F.S. 475.25(1)(k)
Explanation: Florida brokers must deposit escrow funds within 3 business days of receipt.
Citation: F.S. 475.25(1)(k)
Q179. A buyer has a contract to purchase but finds a more desirable property. What happens if they cancel without legal justification?
Correct Answer: A
Explanation: Buyers who breach a contract may forfeit escrow or be liable for agreed liquidated damages.
Citation: Pearson VUE Handbook Contract Law
Explanation: Buyers who breach a contract may forfeit escrow or be liable for agreed liquidated damages.
Citation: Pearson VUE Handbook Contract Law
Q180. A broker wants to advertise on social media. Which of the following is required?
Correct Answer: C
Explanation: All ads must include the brokerage’s registered name, even on social media.
Citation: F.S. 475.25(1)(c)
Explanation: All ads must include the brokerage’s registered name, even on social media.
Citation: F.S. 475.25(1)(c)
Q181. A buyer and seller agree verbally on a property purchase. The buyer sends a deposit but no written contract exists. What is the status of the agreement?
Correct Answer: D
Explanation: The Statute of Frauds requires contracts involving the transfer of real property to be in writing to be enforceable.
Citation: F.S. 725.01
Explanation: The Statute of Frauds requires contracts involving the transfer of real property to be in writing to be enforceable.
Citation: F.S. 725.01
Q182. A property manager budgeting for recurring expenses like utilities and lawn care should include them under:
Correct Answer: D
Explanation: Day-to-day expenses necessary to keep the property operational are classified as operating expenses.
Citation: Pearson VUE Handbook Property Management
Explanation: Day-to-day expenses necessary to keep the property operational are classified as operating expenses.
Citation: Pearson VUE Handbook Property Management
Q183. What form of ownership allows a married couple to protect a Florida homestead from individual creditors of one spouse?
Correct Answer: C
Explanation: Tenancy by the entirety protects homestead property from claims against one spouse individually.
Citation: F.S. 689.115
Explanation: Tenancy by the entirety protects homestead property from claims against one spouse individually.
Citation: F.S. 689.115
Q184. What type of mortgage includes both real and personal property, such as appliances and fixtures?
Correct Answer: B
Explanation: A package mortgage covers both real estate and personal property included in the loan.
Citation: Pearson VUE Handbook Mortgage Types
Explanation: A package mortgage covers both real estate and personal property included in the loan.
Citation: Pearson VUE Handbook Mortgage Types
Q185. What legal concept is established when a party is prevented from asserting rights because of inconsistent past actions?
Correct Answer: B
Explanation: Estoppel bars a party from asserting something contrary to previous conduct or statements.
Citation: F.S. 90.803(22); contract case law
Explanation: Estoppel bars a party from asserting something contrary to previous conduct or statements.
Citation: F.S. 90.803(22); contract case law
Q186. When must a license applicant disclose a felony conviction that was sealed by the court?
Correct Answer: C
Explanation: Florida real estate applicants must disclose all convictions, including sealed or expunged, when applying.
Citation: F.S. 455.227(1)(t)
Explanation: Florida real estate applicants must disclose all convictions, including sealed or expunged, when applying.
Citation: F.S. 455.227(1)(t)
Q187. Which appraisal principle suggests the most profitable use of a property determines its value?
Correct Answer: C
Explanation: Highest and best use is the legal use that yields the highest return and drives value.
Citation: Pearson VUE Handbook Appraisal Concepts
Explanation: Highest and best use is the legal use that yields the highest return and drives value.
Citation: Pearson VUE Handbook Appraisal Concepts
Q188. A seller has received multiple offers. Legally, the seller:
Correct Answer: D
Explanation: Sellers may respond to offers however they wish; they are not required to accept the highest offer.
Citation: F.S. 475.25(1); contract law principles
Explanation: Sellers may respond to offers however they wish; they are not required to accept the highest offer.
Citation: F.S. 475.25(1); contract law principles
Q189. A Florida broker is also a licensed attorney. When acting solely as an attorney in a transaction, they:
Correct Answer: B
Explanation: Attorneys acting within their legal profession and not providing real estate services are exempt from licensure.
Citation: F.S. 475.011
Explanation: Attorneys acting within their legal profession and not providing real estate services are exempt from licensure.
Citation: F.S. 475.011
Q190. Which of the following is true about the role of a notary in real estate closings in Florida?
Correct Answer: C
Explanation: A notary’s role is to verify identity and witness signatures not to interpret or validate legal terms.
Citation: F.S. 117.05
Explanation: A notary’s role is to verify identity and witness signatures not to interpret or validate legal terms.
Citation: F.S. 117.05
Q191. The portion of a mortgage payment that reduces the principal balance is called:
Correct Answer: C
Explanation: Amortization is the process of gradually reducing loan principal through scheduled payments.
Citation: Pearson VUE Mortgage Math
Explanation: Amortization is the process of gradually reducing loan principal through scheduled payments.
Citation: Pearson VUE Mortgage Math
Q192. A developer who fails to provide required condo disclosures may face:
Correct Answer: B
Explanation: The buyer has the right to cancel the contract if disclosure is not properly provided.
Citation: F.S. 718.503
Explanation: The buyer has the right to cancel the contract if disclosure is not properly provided.
Citation: F.S. 718.503
Q193. An abstract of title provides:
Correct Answer: B
Explanation: An abstract is a summary of recorded documents related to title but offers no guarantee.
Citation: Pearson VUE Title & Ownership
Explanation: An abstract is a summary of recorded documents related to title but offers no guarantee.
Citation: Pearson VUE Title & Ownership
Q194. In Florida, how long must escrow account records be retained?
Correct Answer: C
Explanation: Brokers must retain escrow and transaction records for 5 years (or 2 years after litigation ends).
Citation: F.S. 475.5015
Explanation: Brokers must retain escrow and transaction records for 5 years (or 2 years after litigation ends).
Citation: F.S. 475.5015
Q195. Which ownership right is the right to exclude others from the property?
Correct Answer: D
Explanation: The right of exclusion allows property owners to prevent unauthorized entry.
Citation: Bundle of Rights Property Law
Explanation: The right of exclusion allows property owners to prevent unauthorized entry.
Citation: Bundle of Rights Property Law
Q196. A mortgage lender advertises “No credit check required!” without qualifying language. This likely violates:
Correct Answer: C
Explanation: TILA requires clear and complete disclosure of terms misleading ads without APR or conditions violate it.
Citation: 12 CFR §1026
Explanation: TILA requires clear and complete disclosure of terms misleading ads without APR or conditions violate it.
Citation: 12 CFR §1026
Q197. Which agency oversees timeshare development and sales in Florida?
Correct Answer: D
Explanation: Timeshare oversight falls under this DBPR division, not FREC.
Citation: F.S. 721.03
Explanation: Timeshare oversight falls under this DBPR division, not FREC.
Citation: F.S. 721.03
Q198. Which of the following best describes the principle of substitution in appraisal?
Correct Answer: A
Explanation: Substitution states that a rational buyer will not pay more than the cost of an equally desirable alternative.
Citation: Pearson VUE Appraisal Principles
Explanation: Substitution states that a rational buyer will not pay more than the cost of an equally desirable alternative.
Citation: Pearson VUE Appraisal Principles
Q199. A real estate licensee attempts to collect a fee for appraising property. This is a violation because:
Correct Answer: B
Explanation: Licensees may only perform CMAs, not appraisals for compensation unless also licensed as appraisers.
Citation: F.S. 475.612(2)
Explanation: Licensees may only perform CMAs, not appraisals for compensation unless also licensed as appraisers.
Citation: F.S. 475.612(2)
Q200. A seller lists a property and later learns of an undisclosed lien. What is the likely outcome?
Correct Answer: B
Explanation: Liens must be disclosed and typically satisfied before or at closing; they do not cancel listings automatically.
Citation: F.S. 475.278(2)(d)
Explanation: Liens must be disclosed and typically satisfied before or at closing; they do not cancel listings automatically.
Citation: F.S. 475.278(2)(d)
Q201. A real estate licensee receives an earnest money deposit on Friday at 4 p.m. What is the latest time the broker can deposit it?
Correct Answer: C
Explanation: The broker has 3 business days (excluding weekends/holidays) from receipt to deposit funds.
Citation: F.S. 475.25(1)(k)
Explanation: The broker has 3 business days (excluding weekends/holidays) from receipt to deposit funds.
Citation: F.S. 475.25(1)(k)
Q202. Which party is legally authorized to draft a deed in a Florida transaction?
Correct Answer: B
Explanation: Only attorneys may legally draft deeds in Florida brokers may fill in blanks, but not create legal documents.
Citation: F.S. 475.25; Florida Bar v. Brumbaugh
Explanation: Only attorneys may legally draft deeds in Florida brokers may fill in blanks, but not create legal documents.
Citation: F.S. 475.25; Florida Bar v. Brumbaugh
Q203. In which scenario is the broker not entitled to a commission?
Correct Answer: C
Explanation: If a contingency (like financing) is unmet, no commission is earned. Broker earns commission only when buyer is ready, willing, and able.
Citation: Pearson VUE Handbook Agency
Explanation: If a contingency (like financing) is unmet, no commission is earned. Broker earns commission only when buyer is ready, willing, and able.
Citation: Pearson VUE Handbook Agency
Q204. Which of the following is not a requirement of a valid listing agreement in Florida?
Correct Answer: A
Explanation: A valid listing agreement must have at least one owner’s signature and a definite expiration date, but not all owners are required to sign.
Citation: F.S. 475.25(1)(r)
Explanation: A valid listing agreement must have at least one owner’s signature and a definite expiration date, but not all owners are required to sign.
Citation: F.S. 475.25(1)(r)
Q205. A sales associate forms a PA (Professional Association) and is paid through it. Who must the check come from?
Correct Answer: C
Explanation: Sales associates may only be paid by their employing broker even if they form a PA.
Citation: F.S. 475.161
Explanation: Sales associates may only be paid by their employing broker even if they form a PA.
Citation: F.S. 475.161
Q206. A property’s market value is $280,000. The buyer secures a mortgage of $224,000. What is the LTV ratio?
Correct Answer: B
Explanation: $224,000 ÷ $280,000 = 0.80, or 80% loan-to-value.
Citation: Pearson VUE Mortgage Math
Explanation: $224,000 ÷ $280,000 = 0.80, or 80% loan-to-value.
Citation: Pearson VUE Mortgage Math
Q207. A single agent transitions to transaction broker during a negotiation. What must occur?
Correct Answer: B
Explanation: Transitioning from single agency to transaction brokerage requires written informed consent.
Citation: F.S. 475.278(3)(b)
Explanation: Transitioning from single agency to transaction brokerage requires written informed consent.
Citation: F.S. 475.278(3)(b)
Q208. A sales associate disagrees with their employer’s instructions on how to conduct a showing. What duty is owed to the broker?
Correct Answer: C
Explanation: Licensees owe obedience to their broker’s lawful instructions even if they disagree.
Citation: F.S. 475.278(3)
Explanation: Licensees owe obedience to their broker’s lawful instructions even if they disagree.
Citation: F.S. 475.278(3)
Q209. Which clause in a deed guarantees that the grantor owns the property and has the right to convey it?
Correct Answer: A
Explanation: The covenant of seisin affirms that the grantor has ownership and the right to transfer.
Citation: F.S. 689.01; Deed Clauses
Explanation: The covenant of seisin affirms that the grantor has ownership and the right to transfer.
Citation: F.S. 689.01; Deed Clauses
Q210. The monthly rent on an investment property is $2,400. If the property sold for $288,000, what is the gross rent multiplier (GRM)?
Correct Answer: D
Explanation: GRM = Price ÷ Monthly Rent ? $288,000 ÷ $2,400 = 120
Citation: Pearson VUE Income Valuation
Explanation: GRM = Price ÷ Monthly Rent ? $288,000 ÷ $2,400 = 120
Citation: Pearson VUE Income Valuation
Q211. A 6% brokerage fee is negotiated. If the property sells for $375,000, how much is the commission?
Correct Answer: B
Explanation: $375,000 × 0.06 = $22,500
Citation: Basic commission math
Explanation: $375,000 × 0.06 = $22,500
Citation: Basic commission math
Q212. A licensee wants to avoid accidental misrepresentation during a showing. What is the most appropriate action?
Correct Answer: A
Explanation: Full disclosure of known material facts protects both the licensee and the consumer.
Citation: Johnson v. Davis; F.S. 475.278
Explanation: Full disclosure of known material facts protects both the licensee and the consumer.
Citation: Johnson v. Davis; F.S. 475.278
Q213. A property’s assessed value is $215,000. The owner qualifies for the full $50,000 homestead exemption. What is the taxable value?
Correct Answer: B
Explanation: $215,000 $50,000 = $165,000; but first $25,000 applies to all, and next $25,000 does not apply to school taxes, but is still excluded from taxable base.
Citation: F.S. 196.031
Explanation: $215,000 $50,000 = $165,000; but first $25,000 applies to all, and next $25,000 does not apply to school taxes, but is still excluded from taxable base.
Citation: F.S. 196.031
Q214. A landlord fails to return a security deposit or explain deductions within 30 days. What is the result?
Correct Answer: C
Explanation: If the landlord doesn’t notify the tenant within 30 days, they waive the right to keep any part of the deposit.
Citation: F.S. 83.49(3)(A.
Explanation: If the landlord doesn’t notify the tenant within 30 days, they waive the right to keep any part of the deposit.
Citation: F.S. 83.49(3)(A.
Q215. What defines a township in the rectangular survey system?
Correct Answer: A
Explanation: Townships are squares measuring 6 × 6 miles, totaling 36 square miles.
Citation: Pearson VUE Handbook Legal Descriptions
Explanation: Townships are squares measuring 6 × 6 miles, totaling 36 square miles.
Citation: Pearson VUE Handbook Legal Descriptions
Q216. A seller gives power of attorney to a friend to sell their home while abroad. This creates what kind of agency?
Correct Answer: D
Explanation: Power of attorney for all matters (including legal and financial) creates a universal agency.
Citation: F.S. 709.2104
Explanation: Power of attorney for all matters (including legal and financial) creates a universal agency.
Citation: F.S. 709.2104
Q217. A developer pays all infrastructure costs to build roads and water lines for a subdivision. What type of development funding is this?
Correct Answer: D
Explanation: A developer-exacted contribution occurs when the developer pays directly for improvements tied to project approval.
Citation: Pearson VUE Land Use Planning
Explanation: A developer-exacted contribution occurs when the developer pays directly for improvements tied to project approval.
Citation: Pearson VUE Land Use Planning
Q218. Which contract element is not required for enforceability?
Correct Answer: D
Explanation: Earnest money is not required for a valid contract it is a good faith deposit, not a legal element.
Citation: F.S. 725.01; Contract Law
Explanation: Earnest money is not required for a valid contract it is a good faith deposit, not a legal element.
Citation: F.S. 725.01; Contract Law
Q219. A brokerage account is audited and shows that the broker failed to reconcile monthly. What’s the likely result?
Correct Answer: A
Explanation: Brokers are required to reconcile escrow accounts monthly. Failure may result in disciplinary action.
Citation: Rule 61J2-14.012(2), F.A.C.
Explanation: Brokers are required to reconcile escrow accounts monthly. Failure may result in disciplinary action.
Citation: Rule 61J2-14.012(2), F.A.C.
Q220. What best describes a cooperative ownership structure?
Correct Answer: B
Explanation: In a cooperative, the corporation owns the building, and residents own stock that gives them the right to occupy a unit.
Citation: F.S. 719.103
Explanation: In a cooperative, the corporation owns the building, and residents own stock that gives them the right to occupy a unit.
Citation: F.S. 719.103
Q221. A property manager collects a tenant’s rent and accidentally deposits it into the company’s operating account. What violation has occurred?
Correct Answer: A
Explanation: Commingling occurs when client funds are mixed with the broker’s business or personal funds.
Citation: F.S. 475.25(1)(k)
Explanation: Commingling occurs when client funds are mixed with the broker’s business or personal funds.
Citation: F.S. 475.25(1)(k)
Q222. Which of the following creates an agency relationship without a written agreement?
Correct Answer: C
Explanation: An implied agency arises from the conduct of the parties, even without a written contract.
Citation: F.S. 475.01; Common Law Agency
Explanation: An implied agency arises from the conduct of the parties, even without a written contract.
Citation: F.S. 475.01; Common Law Agency
Q223. A broker’s license is revoked for escrow mishandling. What happens to the licenses of their sales associates?
Correct Answer: C
Explanation: When a broker’s license is revoked or suspended, the related licensees become involuntarily inactive.
Citation: F.S. 475.24
Explanation: When a broker’s license is revoked or suspended, the related licensees become involuntarily inactive.
Citation: F.S. 475.24
Q224. The right of survivorship is automatically included in which type of ownership?
Correct Answer: B
Explanation: In joint tenancy, the surviving co-owners automatically inherit the deceased’s share.
Citation: F.S. 689.15
Explanation: In joint tenancy, the surviving co-owners automatically inherit the deceased’s share.
Citation: F.S. 689.15
Q225. Which situation would most likely result in a constructive eviction?
Correct Answer: A
Explanation: If the landlord’s neglect makes the unit uninhabitable, the tenant may vacate and claim constructive eviction.
Citation: F.S. 83.56(1)
Explanation: If the landlord’s neglect makes the unit uninhabitable, the tenant may vacate and claim constructive eviction.
Citation: F.S. 83.56(1)
Q226. Which of the following property types is exempt from federal fair housing law?
Correct Answer: C
Explanation: Fair housing laws apply only to residential properties, not commercial.
Citation: 42 U.S.C. § 3603
Explanation: Fair housing laws apply only to residential properties, not commercial.
Citation: 42 U.S.C. § 3603
Q227. Which deed offers the least protection to the buyer?
Correct Answer: C
Explanation: A quitclaim deed conveys no warranties or title guarantees it only transfers the grantor’s interest.
Citation: F.S. 689.07
Explanation: A quitclaim deed conveys no warranties or title guarantees it only transfers the grantor’s interest.
Citation: F.S. 689.07
Q228. What is the result of a legal description using metes and bounds ?
Correct Answer: C
Explanation: Metes and bounds describes a property’s boundaries using distance and direction.
Citation: Pearson VUE Handbook Legal Descriptions
Explanation: Metes and bounds describes a property’s boundaries using distance and direction.
Citation: Pearson VUE Handbook Legal Descriptions
Q229. When a property owner dies without a will or heirs, what happens to the real estate?
Correct Answer: C
Explanation: Escheat transfers ownership to the state when no legal heirs exist.
Citation: F.S. 732.107
Explanation: Escheat transfers ownership to the state when no legal heirs exist.
Citation: F.S. 732.107
Q230. In a lien-theory state like Florida, who holds title during the mortgage period?
Correct Answer: B
Explanation: In lien-theory states, the borrower retains title; the lender holds a lien.
Citation: F.S. 697.02
Explanation: In lien-theory states, the borrower retains title; the lender holds a lien.
Citation: F.S. 697.02
Q231. A licensee’s advertisement claims best price guaranteed. This could be considered:
Correct Answer: B
Explanation: Statements that promise unverifiable outcomes (e.g., best price guaranteed) may mislead consumers.
Citation: F.S. 475.25(1)(b)
Explanation: Statements that promise unverifiable outcomes (e.g., best price guaranteed) may mislead consumers.
Citation: F.S. 475.25(1)(b)
Q232. The act of calculating the dollar value of depreciation due to age is most closely associated with:
Correct Answer: B
Explanation: The cost approach subtracts depreciation from replacement cost to estimate value.
Citation: Pearson VUE Handbook Appraisal
Explanation: The cost approach subtracts depreciation from replacement cost to estimate value.
Citation: Pearson VUE Handbook Appraisal
Q233. If a licensee fails to notify the DBPR of a mailing address change within the required time frame, what is the penalty?
Correct Answer: C
Explanation: Not reporting an address change within 10 days results in a citation as a minor violation.
Citation: Rule 61J2-24.002(1)(e), F.A.C.
Explanation: Not reporting an address change within 10 days results in a citation as a minor violation.
Citation: Rule 61J2-24.002(1)(e), F.A.C.
Q234. A deed is not considered valid unless:
Correct Answer: D
Explanation: Recording is not required, but delivery and acceptance are essential for a deed’s validity.
Citation: F.S. 689.01
Explanation: Recording is not required, but delivery and acceptance are essential for a deed’s validity.
Citation: F.S. 689.01
Q235. Which scenario requires a real estate license in Florida?
Correct Answer: C
Explanation: Advertising or promoting property for compensation requires a license.
Citation: F.S. 475.01(1)(A.
Explanation: Advertising or promoting property for compensation requires a license.
Citation: F.S. 475.01(1)(A.
Q236. What is the primary purpose of a title insurance policy?
Correct Answer: C
Explanation: Title insurance protects buyers/lenders from losses due to undiscovered title defects.
Citation: F.S. 627.7843
Explanation: Title insurance protects buyers/lenders from losses due to undiscovered title defects.
Citation: F.S. 627.7843
Q237. A licensee wants to open a brokerage under a fictitious name. What must they do?
Correct Answer: A
Explanation: Fictitious names (DBAs) must be registered and approved by DBPR before use in real estate services.
Citation: F.S. 865.09, F.S. 475.15
Explanation: Fictitious names (DBAs) must be registered and approved by DBPR before use in real estate services.
Citation: F.S. 865.09, F.S. 475.15
Q238. A buyer makes an offer, and the seller makes changes and signs it. What is the status of the offer?
Correct Answer: C
Explanation: Any change to an offer constitutes a counteroffer and voids the original offer.
Citation: Pearson VUE Contract Law
Explanation: Any change to an offer constitutes a counteroffer and voids the original offer.
Citation: Pearson VUE Contract Law
Q239. In an exclusive agency listing, the broker is entitled to a commission unless:
Correct Answer: B
Explanation: In exclusive agency listings, no commission is owed if the seller finds the buyer.
Citation: F.S. 475.01(1)(h)
Explanation: In exclusive agency listings, no commission is owed if the seller finds the buyer.
Citation: F.S. 475.01(1)(h)
Q240. What is the relationship between a broker and the principal in a single agency?
Correct Answer: A
Explanation: A single agent owes fiduciary duties to the principal (client).
Citation: F.S. 475.278(3)
Explanation: A single agent owes fiduciary duties to the principal (client).
Citation: F.S. 475.278(3)
Q241. What is the function of a deed restriction in a residential subdivision?
Correct Answer: B
Explanation: Deed restrictions limit how property can be used (e.g., no commercial use, minimum square footage).
Citation: F.S. 689.21
Explanation: Deed restrictions limit how property can be used (e.g., no commercial use, minimum square footage).
Citation: F.S. 689.21
Q242. A buyer under contract discovers that the property was misrepresented and withdraws. What happens to the escrow deposit?
Correct Answer: C
Explanation: If the buyer cancels due to a material misrepresentation, they are generally entitled to a refund.
Citation: Johnson v. Davis
Explanation: If the buyer cancels due to a material misrepresentation, they are generally entitled to a refund.
Citation: Johnson v. Davis
Q243. Which item is typically not included in the closing disclosure?
Correct Answer: B
Explanation: The APR is shown in the Loan Estimate, not the Closing Disclosure.
Citation: TILA-RESPA Integrated Disclosure Rule (TRID)
Explanation: The APR is shown in the Loan Estimate, not the Closing Disclosure.
Citation: TILA-RESPA Integrated Disclosure Rule (TRID)
Q244. A broker discovers a math error in their own listing advertisement. What is the best action?
Correct Answer: B
Explanation: Brokers must ensure all advertising is accurate. Errors should be corrected promptly.
Citation: F.S. 475.25(1)(b)
Explanation: Brokers must ensure all advertising is accurate. Errors should be corrected promptly.
Citation: F.S. 475.25(1)(b)
Q245. Which of the following types of real estate ownership bypasses probate upon death?
Correct Answer: C
Explanation: Survivorship means the deceased’s interest automatically transfers to co-owners.
Citation: F.S. 689.15
Explanation: Survivorship means the deceased’s interest automatically transfers to co-owners.
Citation: F.S. 689.15
Q246. What is the purpose of a buffer zone in zoning?
Correct Answer: B
Explanation: Buffer zones separate conflicting land uses (e.g., residential and commercial) for safety and aesthetics.
Citation: F.S. 163.3164
Explanation: Buffer zones separate conflicting land uses (e.g., residential and commercial) for safety and aesthetics.
Citation: F.S. 163.3164
Q247. What is the effect of a subordination clause in a mortgage?
Correct Answer: C
Explanation: Subordination clauses allow a newer lien to take precedence over an older one.
Citation: Pearson VUE Mortgage Clauses
Explanation: Subordination clauses allow a newer lien to take precedence over an older one.
Citation: Pearson VUE Mortgage Clauses
Q248. A broker fails to present an offer because it’s lower than asking price. What violation has occurred?
Correct Answer: B
Explanation: Concealing offers violates the duty of full disclosure owed to clients.
Citation: F.S. 475.278(3)(A.
Explanation: Concealing offers violates the duty of full disclosure owed to clients.
Citation: F.S. 475.278(3)(A.
Q249. What is required to legally enforce a lease agreement of more than one year in Florida?
Correct Answer: C
Explanation: The Statute of Frauds requires leases over one year to be in writing and signed.
Citation: F.S. 725.01
Explanation: The Statute of Frauds requires leases over one year to be in writing and signed.
Citation: F.S. 725.01
Q250. Which action would result in the automatic suspension of a Florida real estate license?
Correct Answer: B
Explanation: Failure to pay court-ordered child support can trigger automatic suspension.
Citation: F.S. 409.2598
Explanation: Failure to pay court-ordered child support can trigger automatic suspension.
Citation: F.S. 409.2598
Q251. A broker is holding escrow for a transaction that falls through. The buyer and seller demand conflicting outcomes. What should the broker do?
Correct Answer: C
Explanation: Brokers must notify FREC within 15 business days of receiving conflicting demands.
Citation: F.S. 475.25(1)(d)
Explanation: Brokers must notify FREC within 15 business days of receiving conflicting demands.
Citation: F.S. 475.25(1)(d)
Q252. A commercial tenant signs a lease tied to gross sales. This is called a:
Correct Answer: D
Explanation: In a percentage lease, rent is based on a percentage of the tenant’s gross sales.
Citation: Pearson VUE Lease Types
Explanation: In a percentage lease, rent is based on a percentage of the tenant’s gross sales.
Citation: Pearson VUE Lease Types
Q253. A new sales associate fails the post-licensing exam. What happens to their license?
Correct Answer: C
Explanation: Failing to complete post-licensing education by the deadline voids the license.
Citation: F.S. 475.17(6)
Explanation: Failing to complete post-licensing education by the deadline voids the license.
Citation: F.S. 475.17(6)
Q254. What triggers the requirement for flood insurance under the National Flood Insurance Program (NFIP)?
Correct Answer: C
Explanation: Flood insurance is mandatory for properties in SFHAs with federally backed loans.
Citation: FEMA NFIP Guidelines
Explanation: Flood insurance is mandatory for properties in SFHAs with federally backed loans.
Citation: FEMA NFIP Guidelines
Q255. In a real estate transaction, who is responsible for completing the property disclosure form?
Correct Answer: C
Explanation: The seller is legally responsible for disclosing known defects.
Citation: Johnson v. Davis
Explanation: The seller is legally responsible for disclosing known defects.
Citation: Johnson v. Davis
Q256. The discount rate is most directly controlled by:
Correct Answer: A
Explanation: The Federal Reserve sets the discount rate charged to member banks.
Citation: Pearson VUE Financing Concepts
Explanation: The Federal Reserve sets the discount rate charged to member banks.
Citation: Pearson VUE Financing Concepts
Q257. What must be included in all brokerage relationship disclosure forms?
Correct Answer: D
Explanation: Disclosures must outline the specific duties owed under each relationship.
Citation: F.S. 475.278
Explanation: Disclosures must outline the specific duties owed under each relationship.
Citation: F.S. 475.278
Q258. Which type of loan requires a funding fee that may be financed into the loan amount?
Correct Answer: C
Explanation: VA loans require a non-refundable funding fee, which can be rolled into the loan.
Citation: VA Loan Handbook
Explanation: VA loans require a non-refundable funding fee, which can be rolled into the loan.
Citation: VA Loan Handbook
Q259. A homeowner adds solar panels. What valuation principle may apply when selling the property?
Correct Answer: A
Explanation: The principle of contribution measures how much an improvement adds to value.
Citation: Pearson VUE Appraisal
Explanation: The principle of contribution measures how much an improvement adds to value.
Citation: Pearson VUE Appraisal
Q260. A broker deposits personal funds in the escrow account to cover bank fees. Is this allowed?
Correct Answer: A
Explanation: Brokers may deposit up to $1,000 of personal funds in escrow accounts to cover fees.
Citation: F.S. 475.25(1)(k)
Explanation: Brokers may deposit up to $1,000 of personal funds in escrow accounts to cover fees.
Citation: F.S. 475.25(1)(k)
Q261. A property manager signs a lease on behalf of the owner without written authority. What is the legal status of the lease?
Correct Answer: D
Explanation: Unauthorized acts can be later ratified by the principal, making the agreement enforceable.
Citation: Common Law Agency; Pearson VUE Handbook
Explanation: Unauthorized acts can be later ratified by the principal, making the agreement enforceable.
Citation: Common Law Agency; Pearson VUE Handbook
Q262. Which of the following is the most accurate definition of net listing in Florida?
Correct Answer: B
Explanation: In a net listing, the seller sets a minimum price, and the broker keeps any excess. Legal in FL but discouraged.
Citation: F.S. 475.25(1)(h)
Explanation: In a net listing, the seller sets a minimum price, and the broker keeps any excess. Legal in FL but discouraged.
Citation: F.S. 475.25(1)(h)
Q263. What triggers mandatory disclosure under the Interstate Land Sales Full Disclosure Act (ILSA.?
Correct Answer: C
Explanation: ILSA applies to subdivisions with 100+ non-exempt lots sold across state lines.
Citation: 15 U.S.C. §1701
Explanation: ILSA applies to subdivisions with 100+ non-exempt lots sold across state lines.
Citation: 15 U.S.C. §1701
Q264. What happens if a tenant remains after lease expiration and pays rent which the landlord accepts?
Correct Answer: A
Explanation: Acceptance of rent creates a periodic tenancy or tenancy at will, depending on the situation.
Citation: F.S. 83.04
Explanation: Acceptance of rent creates a periodic tenancy or tenancy at will, depending on the situation.
Citation: F.S. 83.04
Q265. Which type of mortgage loan has the highest risk for negative amortization?
Correct Answer: C
Explanation: GPMs can result in negative amortization if initial payments don’t cover full interest.
Citation: Pearson VUE Financing
Explanation: GPMs can result in negative amortization if initial payments don’t cover full interest.
Citation: Pearson VUE Financing
Q266. A buyer makes a written offer that expires in 72 hours. The seller accepts after 96 hours. What is the legal result?
Correct Answer: C
Explanation: Once an offer expires, a late acceptance is a new offer requiring acceptance by the other party.
Citation: F.S. 475.01 Contracts
Explanation: Once an offer expires, a late acceptance is a new offer requiring acceptance by the other party.
Citation: F.S. 475.01 Contracts
Q267. A developer is required to donate land for a public park in order to obtain zoning approval. This is known as:
Correct Answer: B
Explanation: Dedication is the voluntary transfer of private property for public use as part of development approval.
Citation: Pearson VUE Planning & Zoning
Explanation: Dedication is the voluntary transfer of private property for public use as part of development approval.
Citation: Pearson VUE Planning & Zoning
Q268. Which deed clause defines the interest being granted and the type of ownership?
Correct Answer: B
Explanation: The habendum clause (“to have and to hold”) clarifies the nature of the estate being transferred.
Citation: F.S. 689.01
Explanation: The habendum clause (“to have and to hold”) clarifies the nature of the estate being transferred.
Citation: F.S. 689.01
Q269. A real estate licensee refers a buyer to a mortgage broker and receives $200 as a thank-you. What law is violated?
Correct Answer: C
Explanation: RESPA prohibits referral fees or kickbacks for federally related mortgage loans.
Citation: RESPA 12 U.S.C. §2607
Explanation: RESPA prohibits referral fees or kickbacks for federally related mortgage loans.
Citation: RESPA 12 U.S.C. §2607
Q270. What does a subordination clause accomplish in a junior lien?
Correct Answer: C
Explanation: A subordination clause voluntarily lowers the lien priority of one debt in favor of another.
Citation: Pearson VUE Mortgage Clauses
Explanation: A subordination clause voluntarily lowers the lien priority of one debt in favor of another.
Citation: Pearson VUE Mortgage Clauses
Q271. A seller agrees to pay points to reduce the buyer’s interest rate. What is this called?
Correct Answer: A
Explanation: A buydown involves the payment of discount points to reduce the interest rate.
Citation: Pearson VUE Financing
Explanation: A buydown involves the payment of discount points to reduce the interest rate.
Citation: Pearson VUE Financing
Q272. A real estate brokerage is owned by two partners. One partner’s license is suspended. What must the brokerage do?
Correct Answer: A
Explanation: If any active broker in a partnership is suspended, the brokerage’s license is automatically void until resolved.
Citation: F.S. 475.161
Explanation: If any active broker in a partnership is suspended, the brokerage’s license is automatically void until resolved.
Citation: F.S. 475.161
Q273. A buyer asks about church locations in a specific neighborhood. The best response is:
Correct Answer: B
Explanation: To avoid steering, refer the buyer to objective third-party sources.
Citation: Fair Housing Act
Explanation: To avoid steering, refer the buyer to objective third-party sources.
Citation: Fair Housing Act
Q274. A homestead property has an assessed value of $295,000. What portion is taxable for school district purposes after exemptions?
Correct Answer: C
Explanation: The first $25,000 of the homestead exemption applies to all taxes, but the second $25,000 does not apply to school taxes.
Citation: F.S. 196.031
Explanation: The first $25,000 of the homestead exemption applies to all taxes, but the second $25,000 does not apply to school taxes.
Citation: F.S. 196.031
Q275. Which of the following is not considered legally sufficient consideration in a contract?
Correct Answer: D
Explanation: Consideration must be legal an illegal act makes the contract void.
Citation: F.S. 725.01 Contract Law
Explanation: Consideration must be legal an illegal act makes the contract void.
Citation: F.S. 725.01 Contract Law
Q276. Which Florida statute governs the regulation and licensing of real estate professionals?
Correct Answer: B
Explanation: Chapter 475, F.S., is the primary law governing real estate practice in Florida.
Citation: F.S. 475
Explanation: Chapter 475, F.S., is the primary law governing real estate practice in Florida.
Citation: F.S. 475
Q277. A broker promises a seller that their home will sell within 30 days or the broker will buy it. What’s required for this to be legal?
Correct Answer: B
Explanation: Guaranteed sales programs must include written disclosure of all conditions.
Citation: Rule 61J2-10.025(2), F.A.C.
Explanation: Guaranteed sales programs must include written disclosure of all conditions.
Citation: Rule 61J2-10.025(2), F.A.C.
Q278. What is the key characteristic of tenancy at sufferance?
Correct Answer: B
Explanation: In tenancy at sufferance, the tenant remains without the landlord’s consent after lease expiration.
Citation: F.S. 83.58
Explanation: In tenancy at sufferance, the tenant remains without the landlord’s consent after lease expiration.
Citation: F.S. 83.58
Q279. What does the covenant of quiet enjoyment guarantee?
Correct Answer: B
Explanation: This covenant ensures that the grantee can enjoy the property free from claims against the title.
Citation: F.S. 689.01 Deed Clauses
Explanation: This covenant ensures that the grantee can enjoy the property free from claims against the title.
Citation: F.S. 689.01 Deed Clauses
Q280. A broker receives a $5,000 bonus from a developer after bringing a buyer but does not tell the buyer. What is this?
Correct Answer: B
Explanation: Any compensation from a third party must be disclosed to all parties in writing.
Citation: F.S. 475.278(5)(A.
Explanation: Any compensation from a third party must be disclosed to all parties in writing.
Citation: F.S. 475.278(5)(A.
Q281. A sales associate receives an email from a potential buyer expressing interest in a listed property. When must a brokerage relationship disclosure be provided?
Correct Answer: C
Explanation: Disclosure must occur before showing the property when a single agent or no brokerage relationship exists.
Citation: F.S. 475.278(4)
Explanation: Disclosure must occur before showing the property when a single agent or no brokerage relationship exists.
Citation: F.S. 475.278(4)
Q282. A contract is missing a legal description but contains street address and parcel ID. What is the likely legal outcome?
Correct Answer: C
Explanation: A contract must identify the property with sufficient specificity; missing legal description = unenforceable.
Citation: F.S. 725.01
Explanation: A contract must identify the property with sufficient specificity; missing legal description = unenforceable.
Citation: F.S. 725.01
Q283. In Florida, what must happen before a real estate license can be issued?
Correct Answer: C
Explanation: Applicants must undergo a background check and submit fingerprints before licensing.
Citation: F.S. 475.175
Explanation: Applicants must undergo a background check and submit fingerprints before licensing.
Citation: F.S. 475.175
Q284. A buyer makes an offer that is contingent on financing. Which of the following makes the contract binding?
Correct Answer: D
Explanation: Once the seller accepts the offer, even with contingencies, the contract is binding subject to those terms.
Citation: Pearson VUE Contract Formation
Explanation: Once the seller accepts the offer, even with contingencies, the contract is binding subject to those terms.
Citation: Pearson VUE Contract Formation
Q285. Which of the following is not an essential element of a valid deed?
Correct Answer: C
Explanation: While commonly included, the date is not legally required for validity.
Citation: F.S. 689.01
Explanation: While commonly included, the date is not legally required for validity.
Citation: F.S. 689.01
Q286. If a property appraises below the contract price, and there is a financing contingency, the buyer may:
Correct Answer: C
Explanation: If financing fails due to low appraisal, a contingency allows buyer to exit without penalty.
Citation: F.S. 475.25; Contract Law
Explanation: If financing fails due to low appraisal, a contingency allows buyer to exit without penalty.
Citation: F.S. 475.25; Contract Law
Q287. A broker finds an error in a signed listing agreement. What should they do?
Correct Answer: D
Explanation: Errors in contracts must be corrected with written agreement from both parties.
Citation: F.S. 475.25(1)(b)
Explanation: Errors in contracts must be corrected with written agreement from both parties.
Citation: F.S. 475.25(1)(b)
Q288. In Florida, what is required before practicing real estate as a corporation?
Correct Answer: C
Explanation: Corporations must be registered with DBPR, and at least one officer must be an active broker.
Citation: F.S. 475.15
Explanation: Corporations must be registered with DBPR, and at least one officer must be an active broker.
Citation: F.S. 475.15
Q289. What must be true of all earnest money deposits received by a broker?
Correct Answer: B
Explanation: Florida law requires escrow deposits be placed in a trust account within 3 business days.
Citation: F.S. 475.25(1)(k)
Explanation: Florida law requires escrow deposits be placed in a trust account within 3 business days.
Citation: F.S. 475.25(1)(k)
Q290. The Market Comparison Approach is least effective for valuing:
Correct Answer: B
Explanation: Unique or custom-built properties often lack comparable sales, making this approach less effective.
Citation: Pearson VUE Appraisal
Explanation: Unique or custom-built properties often lack comparable sales, making this approach less effective.
Citation: Pearson VUE Appraisal
Q291. The DBPR may issue a notice of noncompliance without discipline for:
Correct Answer: C
Explanation: Minor, first-time violations may result in non-disciplinary notices instead of formal action.
Citation: F.S. 455.225(3)
Explanation: Minor, first-time violations may result in non-disciplinary notices instead of formal action.
Citation: F.S. 455.225(3)
Q292. What is required for a valid option contract?
Correct Answer: B
Explanation: An option must be supported by some form of consideration (even $1) to be enforceable.
Citation: Pearson VUE Option Contracts
Explanation: An option must be supported by some form of consideration (even $1) to be enforceable.
Citation: Pearson VUE Option Contracts
Q293. What is the result if a landlord violates Florida’s Landlord-Tenant Act by failing to maintain habitable conditions?
Correct Answer: B
Explanation: A tenant may vacate and assert constructive eviction if the unit becomes uninhabitable.
Citation: F.S. 83.51, 83.56
Explanation: A tenant may vacate and assert constructive eviction if the unit becomes uninhabitable.
Citation: F.S. 83.51, 83.56
Q294. A new condominium unit is being sold. How many calendar days does the buyer have to cancel the contract after receiving the disclosures?
Correct Answer: D
Explanation: Buyers of new condos have a 15-day cancellation period.
Citation: F.S. 718.503(1)(A.
Explanation: Buyers of new condos have a 15-day cancellation period.
Citation: F.S. 718.503(1)(A.
Q295. What appraisal principle states that a property’s value is influenced by the cost of acquiring a similar substitute?
Correct Answer: C
Explanation: The principle of substitution underpins the market comparison approach.
Citation: Pearson VUE Appraisal Principles
Explanation: The principle of substitution underpins the market comparison approach.
Citation: Pearson VUE Appraisal Principles
Q296. Which zoning designation is most likely to include shopping centers?
Correct Answer: C
Explanation: C-1 typically refers to neighborhood or general commercial use.
Citation: Local zoning code (C-1 = commercial)
Explanation: C-1 typically refers to neighborhood or general commercial use.
Citation: Local zoning code (C-1 = commercial)
Q297. Which of the following is considered a voluntary lien?
Correct Answer: B
Explanation: A mortgage lien is voluntarily placed by the borrower. Others are involuntary.
Citation: Pearson VUE Types of Liens
Explanation: A mortgage lien is voluntarily placed by the borrower. Others are involuntary.
Citation: Pearson VUE Types of Liens
Q298. A real estate license is considered involuntarily inactive when:
Correct Answer: B
Explanation: Failure to renew before expiration results in involuntary inactive status.
Citation: F.S. 475.183
Explanation: Failure to renew before expiration results in involuntary inactive status.
Citation: F.S. 475.183
Q299. What term describes the right of government to seize private property for public use with compensation?
Correct Answer: A
Explanation: Eminent domain allows government to take property for public use, with just compensation.
Citation: F.S. 73.021
Explanation: Eminent domain allows government to take property for public use, with just compensation.
Citation: F.S. 73.021
Q300. Which type of agency relationship allows the agent to perform all legal acts for the principal?
Correct Answer: C
Explanation: Universal agency grants full authority to act on behalf of the principal in all matters.
Citation: F.S. 475.01(1)(A.
Explanation: Universal agency grants full authority to act on behalf of the principal in all matters.
Citation: F.S. 475.01(1)(A.
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