Florida Real Estate Practice Exam 300 Questions

Q1. Which of the following actions by a broker would most likely violate the Sherman Antitrust Act?

A. Offering discounted commissions to attract clients
B. Advertising listings without exclusive agreements
C. Agreeing with another broker to set minimum commission rates
D. Charging higher commission for luxury homes

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)

Q2. Which of the following is NOT one of the duties owed in a no-brokerage (nonrepresentation) relationship?

A. Deal honestly and fairly
B. Disclose all known facts materially affecting value
C. Confidentiality
D. Account for all funds

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.

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?

A. 5 business days
B. 30 business days
C. 10 calendar days
D. Immediately

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)

Q4. What is the homestead tax exemption in Florida for a qualifying homeowner’s primary residence?

A. Flat $50,000 exemption
B. First $25,000 exempt, additional $25,000 on school taxes
C. First $25,000 on all taxes; second $25,000 on non-school taxes
D. $75,000 exemption on all taxes

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

Q5. When must a real estate license applicant disclose a personal bankruptcy?

A. Never – it’s not relevant
B. Only if it occurred within the past year
C. Always, if it affects honesty and trustworthiness
D. Only if required during a background check

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

Q6. What is the purpose of a defeasance clause in a mortgage contract?

A. Allows acceleration after default
B. Ensures lender retains title until full payment
C. Cancels lender’s interest once loan is repaid
D. Subordinates the lien to another mortgage

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

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)?

A. RESPA
B. Interstate Land Sales Full Disclosure Act (ILSA.
C. ECOA
D. Florida Land Sales Act

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

Q8. What is the statute of limitations for written real estate contracts in Florida?

A. 2 years
B. 3 years
C. 5 years
D. 7 years

Correct Answer: C
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?

A. Advertising without a license
B. Operating an unregistered branch office
C. Providing false rental listings for a fee
D. Failing to disclose dual agency

Correct Answer: C
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?

A. Reject the check
B. Notify their broker immediately
C. Wait until the date on the check before submitting
D. Return it to the buyer

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

Q11. What is the legal term for the government’s power to take private property for public use?

A. Escheat
B. Eminent domain
C. Police power
D. Condemnation

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”

Q12. What is the required education for a Florida real estate sales associate to renew a license for the first time?

A. 14-hour CE
B. 45-hour post-license course
C. 60-hour broker course
D. No education required

Correct Answer: B
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?

A. Sales comparison
B. Income approach
C. Cost-depreciation approach
D. Gross rent multiplier

Correct Answer: C
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?

A. Only the managing member
B. All members regardless of role
C. Any member performing real estate services
D. Only the designated office administrator

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

Q15. Which disclosure is required when selling a property located within a Florida mandatory HOA?

A. No disclosure required
B. Only if buyer requests documents
C. Disclosure summary must be provided before contract
D. Seller must provide minutes of the last HOA meeting

Correct Answer: C
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?

A. Administrative fine and possible license discipline
B. No consequence unless a complaint is filed
C. Civil penalty only
D. 1st-degree misdemeanor

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

Q17. What is the equitable title in real estate?

A. The recorded deed
B. The title held by a lender
C. The right to obtain ownership upon full performance
D. Title transferred at closing

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

Q18. In a residential transaction, what brokerage relationship is assumed by default in Florida?

A. No brokerage
B. Single agent
C. Transaction broker
D. Dual agent

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)

Q19. What is the purpose of the Real Estate Recovery Fund?

A. Pay broker commissions
B. Reimburse public for damages due to licensee misconduct
C. Provide continuing education
D. Fund the DBPR

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

Q20. What is the effect of a “wraparound mortgage” in seller financing?

A. It eliminates the original loan
B. It refinances both buyer and seller debts together
C. It creates a junior loan while keeping the original mortgage in place
D. It avoids the need for a deed transfer

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

Q21. What must a licensee do when changing their mailing address?

A. Update their driver’s license within 30 days
B. Notify DBPR in writing within 10 days
C. Submit a new license application
D. Notify their broker only

Correct Answer: B
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?

A. A leasehold created by oral agreement
B. Occupancy after lease expiration without consent
C. Joint tenancy without survivorship
D. Lease renewal pending landlord action

Correct Answer: B
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?

A. $500
B. $1,000
C. $2,500
D. $5,000

Correct Answer: D
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?

A. Radon gas disclosure
B. Mold contamination disclosure
C. Lead-based paint disclosure
D. Asbestos risk notice

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

Q25. In a net lease, which of the following is the tenant usually responsible for?

A. Mortgage interest
B. Property taxes, insurance, and maintenance
C. Income taxes of the landlord
D. Depreciation deductions

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

Q26. What type of legal description uses meridians and base lines?

A. Lot and block
B. Metes and bounds
C. Government survey system
D. Informal street address

Correct Answer: C
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?

A. Disburse the funds to the buyer
B. Notify FREC of the dispute
C. Return the deposit to the seller
D. File for small claims court resolution

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

Q28. What is the purpose of an appraisal conducted for a federally related transaction?

A. To increase the sale price
B. To determine tax basis
C. To estimate market value for lending risk
D. To replace the buyer’s inspection

Correct Answer: C
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?

A. Tenancy in common
B. Joint tenancy
C. Tenancy by the entirety
D. Estate at sufferance

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

Q30. What is the function of a real estate investment trust (REIT)?

A. To originate mortgage loans
B. To pool investor funds for real estate projects
C. To regulate land development
D. To provide title insurance policies

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

Q31. What happens when a licensee fails to renew a license at the end of its 2-year cycle?

A. The license becomes active by default
B. The license is revoked
C. The license becomes involuntarily inactive
D. The license converts to a referral-only status

Correct Answer: C
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?

A. To accelerate payment upon sale
B. To allow second liens to take priority
C. To guarantee interest rates
D. To eliminate foreclosure rights

Correct Answer: B
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?

A. Prevents tax liens from taking effect
B. Warns of pending legal action affecting title
C. Terminates all existing mortgages
D. Transfers title to the court

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

Q34. What is the most commonly used deed in residential real estate?

A. Quitclaim deed
B. Special warranty deed
C. General warranty deed
D. Bargain and sale deed

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

Q35. What is the minimum number of years of experience required to apply for a Florida broker license?

A. 1 year as a sales associate
B. 2 years in any sales profession
C. 2 years of active real estate licensure in the past 5 years
D. 3 years of education plus exam

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)

Q36. What is the function of the habendum clause in a deed?

A. States the consideration
B. Describes the legal boundaries
C. Defines the type of estate being granted
D. Transfers personal property

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

Q37. What action is FREC authorized to take if a licensee is found guilty of a minor violation for the first time?

A. Immediate suspension of license
B. Revocation of license
C. Issue a notice of noncompliance
D. Order criminal prosecution

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

Q38. Which document is used to convey a temporary right to use land?

A. Deed
B. Easement
C. Option contract
D. License

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

Q39. What is the primary advantage of FHA loans?

A. No down payment
B. Below-market interest rates
C. Low down payment and lenient qualification
D. No mortgage insurance required

Correct Answer: C
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?

A. Radon disclosure
B. Lead paint booklet
C. Condominium governance disclosure
D. Construction lien notice

Correct Answer: C
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?

A. It must be in writing and notarized
B. All parties must be competent and agree voluntarily
C. A broker must be present
D. It must be submitted through MLS

Correct Answer: B
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?

A. 1 year
B. 18 months
C. 2 years
D. 3 years

Correct Answer: C
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?

A. Tangibility
B. Mobility
C. Permanence of location
D. Ownership rights

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

Q44. Which event automatically terminates a single agency relationship?

A. Buyer making an offer
B. Closing of the property
C. License renewal
D. Seller advertising property alone

Correct Answer: B
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?

A. Selling your own property
B. Managing an apartment building as a salaried employee
C. Leasing property for a friend and collecting rent
D. Posting ads for a brokerage as a clerical worker

Correct Answer: C
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?

A. Regulate construction materials
B. Control property taxes
C. Prohibit discrimination in housing transactions
D. Govern landlord maintenance rules

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

Q47. Who investigates complaints against real estate licensees in Florida?

A. Florida Senate
B. FREC directly
C. Division of Real Estate (DRE)
D. State Attorney General

Correct Answer: C
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?

A. The broker
B. The buyer
C. The title company
D. The seller

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)

Q49. What is required before a real estate license can be issued?

A. Holding a broker license in another state
B. Passing the state exam and submitting fingerprints
C. Being over age 25
D. Sponsorship by a principal broker

Correct Answer: B
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?

A. Rejection
B. Counteroffer
C. Acceptance
D. Lapse of time

Correct Answer: C
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?

A. Obtain zoning clearance
B. Secure written permission from the owner
C. Submit the listing to the MLS
D. Include license number on the sign

Correct Answer: B
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?

A. Sales comparison approach
B. Cost-depreciation approach
C. Income approach
D. Gross rent multiplier

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

Q53. Which type of agent is authorized to perform a wide range of activities for a client?

A. General agent
B. Special agent
C. Designated agent
D. Transaction broker

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)

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?

A. $2,600
B. $2,800
C. $3,000
D. $3,400

Correct Answer: B
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?

A. Pay broker commissions
B. Reimburse consumers for damages caused by licensees
C. Fund FREC operations
D. Provide education grants to brokers

Correct Answer: B
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?

A. $1,000 fine and 1 year in jail
B. $5,000 fine and 5 years in prison
C. Revocation of license only
D. No penalty applies

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)

Q57. Which type of depreciation is considered incurable?

A. Physical deterioration
B. Functional obsolescence
C. Economic obsolescence
D. External wear and tear

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

Q58. How many hours of post-licensing education are required for Florida sales associates?

A. 24 hours
B. 30 hours
C. 45 hours
D. 60 hours

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)

Q59. What is the purpose of a due-on-sale clause?

A. Allows early payoff with no penalty
B. Requires seller to finance buyer
C. Triggers full loan repayment if property is sold
D. Prevents foreclosure proceedings

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

Q60. What is the maximum number of years a homestead property can be protected from forced sale under Florida law?

A. 5 years
B. 10 years
C. Indefinitely, so long as eligibility continues
D. Until refinance occurs

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

Q61. What type of listing agreement allows the seller to avoid paying a commission if they find the buyer themselves?

A. Exclusive right of sale
B. Net listing
C. Open listing
D. Exclusive agency

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

Q62. Which appraisal method is most useful for estimating the value of an apartment complex?

A. Cost approach
B. Sales comparison
C. Income approach
D. Gross area method

Correct Answer: C
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?

A. Full fiduciary loyalty
B. Obedience and advocacy
C. Limited confidentiality and skillful service
D. Undivided loyalty to seller only

Correct Answer: C
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?

A. The license becomes suspended
B. A late fee is imposed
C. The license becomes null and void
D. The broker is downgraded to associate

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)

Q65. Which business entity cannot register as a real estate brokerage in Florida?

A. Sole proprietorship
B. Corporation for profit
C. Joint venture
D. Limited liability company

Correct Answer: C
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?

A. Broker’s phone number
B. Company name
C. Property owner’s consent
D. Street address of the listing

Correct Answer: B
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?

A. It must be notarized and recorded
B. It must be signed and delivered by a competent grantor
C. It must include a lender’s signature
D. It must describe any liens or debts

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

Q68. When must a license applicant disclose a prior criminal conviction?

A. Only if it was for a felony
B. Only if it occurred in Florida
C. Always, regardless of state or type
D. Never, unless currently incarcerated

Correct Answer: C
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:

A. Price manipulation
B. Culpable negligence
C. Constructive fraud
D. Blockbusting

Correct Answer: C
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?

A. FREC
B. The state legislature
C. DBPR
D. Department of State

Correct Answer: C
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?

A. Negligence
B. Misrepresentation
C. Fraud
D. Puffing

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)

Q72. Which entity administers the Florida Real Estate Commission?

A. Department of Commerce
B. DBPR
C. State Attorney’s Office
D. Florida Senate

Correct Answer: B
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?

A. Obedience
B. Loyalty
C. Confidentiality
D. Full disclosure

Correct Answer: C
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?

A. Court order to postpone judgment enforcement
B. Tax lien recording instrument
C. Landlord eviction notice
D. FREC revocation document

Correct Answer: A
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?

A. Tenancy in common
B. Joint tenancy
C. Tenancy by the entirety
D. Fee simple conditional

Correct Answer: C
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?

A. Automatic suspension
B. Involuntary inactive status
C. License becomes null and void
D. Temporary permit issued

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

Q77. What is an example of functional obsolescence?

A. Cracked foundation
B. Outdated floor plan
C. Nearby factory odor
D. Economic recession

Correct Answer: B
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?

A. Within 72 hours
B. Immediately, meaning no later than the next business day
C. Within 3 calendar days
D. On the same day as contract signing

Correct Answer: B
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?

A. Used for large personal loans
B. Covers multiple parcels of land
C. Wraps around seller financing
D. Applies only to condominiums

Correct Answer: B
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?

A. Void contracts are oral, voidable are written
B. Voidable contracts are legally unenforceable
C. Void contracts lack legal effect from inception
D. Voidable contracts are always fraudulent

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

Q81. What is the effect of a subrogation clause in title insurance?

A. Prevents the buyer from suing the seller
B. Allows insurer to recover costs from responsible parties
C. Eliminates all liens on title
D. Transfers ownership automatically

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

Q82. How many days does a buyer have to cancel a timeshare contract after signing?

A. 3 calendar days
B. 7 calendar days
C. 10 business days
D. 14 calendar days

Correct Answer: B
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?

A. Straight mortgage
B. Reverse mortgage
C. Negative amortization mortgage
D. Equity participation loan

Correct Answer: C
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?

A. Title insurance details
B. The signature of both parties
C. The duties owed to customers or clients
D. A list of broker’s prior transactions

Correct Answer: C
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)?

A. Obtain a state real estate license
B. Register the subdivision with the Consumer Financial Protection Bureau (CFPB)
C. List the property on MLS
D. Post escrow with FREC

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

Q86. What is an amortized loan?

A. Loan with interest-only payments
B. Loan with payments that decrease over time
C. Loan paid off in periodic installments of principal and interest
D. Balloon mortgage with large final payment

Correct Answer: C
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?

A. Property must be probated
B. Surviving spouse gains full ownership
C. Interest passes to heirs
D. Lien is attached to both estates

Correct Answer: B
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?

A. Becomes a tenant at will
B. Creates a leasehold estate
C. Is a tenant at sufferance
D. Converts to a periodic tenancy

Correct Answer: C
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?

A. Destroy it immediately
B. Refer it to the state attorney
C. Notify their broker immediately
D. File a notice of complaint with FREC

Correct Answer: C
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?

A. The date earnest money is received
B. The day after the seller signs
C. The date the last party signs and delivers the acceptance
D. The offer date

Correct Answer: C
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?

A. $5,000
B. $10,000
C. $16,000
D. $50,000

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)

Q92. What kind of deed provides the least protection to the grantee?

A. Bargain and sale deed
B. General warranty deed
C. Quitclaim deed
D. Special warranty deed

Correct Answer: C
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?

A. 2 years
B. 4 years
C. 5 years
D. 7 years

Correct Answer: C
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?

A. Time
B. Title
C. Possession
D. Warranty

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

Q95. What action may FREC take if a licensee is found guilty of a second-degree misdemeanor?

A. Issue a notice of noncompliance
B. Revoke license without hearing
C. Impose administrative discipline
D. Allow the licensee to self-report only

Correct Answer: C
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”?

A. Leasehold with monthly tenancy
B. Ownership interest with no definite end
C. Easement in gross
D. Fee-for-service tenancy

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

Q97. Which Florida statute governs escrow disbursement procedures?

A. F.S. 475.25
B. F.S. 455.227
C. F.S. 61J2-14.012
D. F.S. 689.01

Correct Answer: A
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?

A. To regulate brokerage advertising
B. To require title insurance
C. To ensure disclosure of closing costs
D. To eliminate license reciprocity

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)

Q99. What does the term “redlining” refer to?

A. Refusal to rent to minorities
B. A zoning regulation technique
C. Denial of loans based on location
D. Discriminatory advertising practice

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

Q100. What happens if a sales associate works for two brokers at the same time?

A. It is permitted with written consent
B. It is considered a dual agency
C. It is illegal and grounds for suspension
D. It is permitted only for referral work

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

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?

A. Get approval from their broker.
B. Notify the FREC within 24 hours.
C. Obtain the seller’s written consent.
D. Deposit it immediately regardless of date.

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)

Q102. A real estate licensee preparing a CMA for a potential listing must avoid:

A. Estimating a value based on three sold properties.
B. Charging a fee for the CMA unless licensed as an appraiser.
C. Using comparable properties older than 12 months.
D. Providing a range instead of a specific value.

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

Q103. What is the legal status of a listing contract that lacks a definite expiration date?

A. Valid, if verbal authorization is given.
B. Valid, but terminates after 30 days.
C. Voidable at seller’s discretion.
D. Void and unenforceable.

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)

Q104. Which type of tenancy includes a survivorship feature and can only be held by spouses?

A. Tenancy in common
B. Joint tenancy
C. Tenancy by the entirety
D. Tenancy at will

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

Q105. A real estate licensee is acting as a single agent. What fiduciary duty is not owed to the buyer or seller?

A. Loyalty
B. Obedience
C. Full disclosure
D. Limited confidentiality

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)

Q106. What document must a developer of more than 20 new condominium units provide to each buyer?

A. HOA budget report
B. Summary of lien disclosures
C. Articles of incorporation
D. Prospectus

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

Q107. A broker associate forms a PA (Professional Association). Who must pay their commission?

A. Their own PA
B. The seller
C. The employing broker
D. The DBPR

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

Q108. What is the minimum time a broker must retain real estate transaction records?

A. 2 years
B. 3 years
C. 5 years
D. 7 years

Correct Answer: C
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?

A. Honor the client’s confidentiality
B. Advise buyer to get an independent inspection
C. Disclose the sinkhole regardless of instruction
D. Withdraw from the transaction

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

Q110. Which investment property analysis tool best compares properties with different levels of debt service?

A. Gross rent multiplier
B. Net operating income
C. Capitalization rate
D. Cash-on-cash return

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

Q111. A licensee who fails to complete the post-licensing education by the expiration date of their initial license will:

A. Have their license suspended until completion.
B. Be automatically upgraded to broker status.
C. Lose the license and must requalify from scratch.
D. Be fined and placed on probation.

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)

Q112. Which of the following best defines a fixture under Florida real estate law?

A. A removable personal item used for staging
B. Any improvement attached with bolts or adhesive
C. An item that was once personal property but is now real property
D. Any item listed in the home inspection report

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

Q113. What is the most appropriate legal action if a buyer backs out after all contingencies are satisfied and refuses to close?

A. File a complaint with the DBPR
B. Sue for compensatory damages
C. Initiate specific performance
D. Seek a new buyer immediately

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

Q114. What must a broker do if an escrow dispute cannot be resolved within a reasonable time?

A. Notify the local Realtor board
B. Release the funds to the buyer
C. Initiate one of the settlement procedures within 30 business days
D. Wait for a court judgment

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

Q115. A condominium resale buyer has how many business days to cancel the contract upon receipt of required disclosures?

A. 3
B. 5
C. 10
D. 15

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

Q116. Which of the following is true about a tenancy at sufferance in Florida?

A. It is a leasehold estate with defined terms
B. The tenant remains with the landlord’s consent
C. The landlord must file an ejectment action immediately
D. The tenant remains without consent after lease expiration

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

Q117. The brokerage relationship disclosure requirements apply in which of the following situations?

A. Selling commercial property over 4 units
B. Rental of 12-month leases
C. Auction and appraisals
D. Negotiating the sale of a duplex to a buyer

Correct Answer: D
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?

A. Enforceable if the buyer signs knowingly
B. Valid in counties with populations under 25,000
C. Void statutory rights cannot be waived
D. Conditional upon federal interstate land laws

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)

Q119. A real estate broker hires unlicensed assistants to show property and discuss features with buyers. This is a violation because:

A. Assistants must work only from the office
B. Only licensed individuals may perform tasks requiring judgment
C. Assistants must be paid hourly
D. Showing is only permitted with the seller’s written consent

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.

Q120. Which of the following best describes the purpose of a due-on-sale clause?

A. It prevents prepayment of the loan
B. It allows the borrower to assume the loan without consent
C. It lets the lender demand full repayment upon sale
D. It restricts the borrower from refinancing

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

Q121. Under Florida law, which of the following is not required for a deed to be valid?

A. Signature of the grantor
B. Habendum clause
C. Legal description
D. Two competent witnesses

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

Q122. A broker forgets to include the brokerage name in an online ad but includes the phone number and agent name. This is considered:

A. Blind advertising
B. Bait-and-switch
C. Puffing
D. Misrepresentation

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)

Q123. If a borrower is assumed to have a 360-month amortized mortgage, what is most likely true about the loan?

A. The loan is paid off in 15 years
B. The interest-only period is 30 months
C. It is a 30-year mortgage
D. The final balloon payment is due in 10 years

Correct Answer: C
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?

A. Right to partition
B. Equal shares
C. Survivorship rights
D. Written contract required

Correct Answer: C
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?

A. Before showing a property
B. Prior to presenting an offer
C. At first contact
D. Before entering into a written agreement

Correct Answer: A
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?

A. Failure to pay a fine
B. Criminal conviction for misdemeanor theft
C. Filing for bankruptcy
D. Issuance of a license by mistake

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)

Q127. A licensee who receives a citation from the DBPR must respond within:

A. 7 days
B. 15 days
C. 30 days
D. 60 days

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)

Q128. What is the penalty for a broker who fails to maintain sign-in logs for showing a listed property?

A. First-degree misdemeanor
B. Civil penalty of $5,000
C. No penalty, as it’s not required
D. FREC suspension

Correct Answer: C
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?

A. $160,000
B. $140,000
C. $190,000
D. $210,000

Correct Answer: A
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?

A. Regression
B. Conformity
C. Contribution
D. Diminishing returns

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

Q131. A licensee fails to complete continuing education by the license renewal deadline. The license status becomes:

A. Voided
B. Suspended
C. Involuntarily inactive
D. Probationary

Correct Answer: C
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?

A. General warranty deed
B. Special warranty deed
C. Quitclaim deed
D. Bargain and sale deed

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

Q133. If a landlord does not intend to make a claim on a security deposit, the deposit must be returned within:

A. 7 days
B. 15 days
C. 30 days
D. 60 days

Correct Answer: B
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?

A. Transfers title to the lender
B. Clears title for sale
C. Warns of pending legal action
D. Freezes all property taxes

Correct Answer: C
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:

A. Entitled to keep the deposit
B. Not entitled to commission
C. Entitled to sue for commission
D. Required to return all fees

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

Q136. Under RESPA, a Loan Estimate must be provided within how many business days of receiving a loan application?

A. 1
B. 3
C. 5
D. 7

Correct Answer: B
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?

A. $25,000
B. $50,000
C. $75,000
D. $100,000

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

Q138. Which of the following must be included in all written residential listing agreements under Florida law?

A. The brokerage’s tax ID number
B. A legal description
C. A definite expiration date
D. The buyer’s signature

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)

Q139. A licensed real estate agent is found guilty of theft in another state. What must they do?

A. Report it to the DBPR within 30 days
B. Notify their employing broker only
C. Wait until license renewal to report
D. Nothing out-of-state convictions are irrelevant

Correct Answer: A
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?

A. Prepayment clause
B. Acceleration clause
C. Defeasance clause
D. Alienation clause

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

Q141. A property manager fails to maintain the premises, resulting in tenant injury. The owner may still be liable under which legal doctrine?

A. Subrogation
B. Vicarious liability
C. Estoppel
D. Novation

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

Q142. What type of lease increases the tenant’s rent periodically based on a set schedule?

A. Net lease
B. Percentage lease
C. Variable lease
D. Graduated lease

Correct Answer: D
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?

A. Declaration of Condominium
B. Articles of Incorporation
C. Most recent year’s financial report
D. Lead-based paint disclosure

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

Q144. What is the effect of a zoning variance?

A. Changes zoning classification permanently
B. Creates a nonconforming use
C. Grants permission to deviate from zoning without changing the law
D. Eliminates all local code enforcement

Correct Answer: C
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?

A. ECOA
B. RESPA
C. Truth-in-Lending
D. FIRPTA

Correct Answer: B
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:

A. Orally, within 24 hours
B. Only when asked
C. In writing, before showing property
D. No written disclosure is required

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)

Q147. A foreign investor sells Florida real estate. What is required at closing under FIRPTA?

A. Buyer must report the seller’s income to the IRS
B. Seller must pay 10% withholding tax
C. Buyer must withhold 15% of sale price for IRS
D. No action is needed unless gain exceeds $250,000

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

Q148. What is the maximum fine per offense that the FREC can impose for a license law violation?

A. $1,000
B. $2,500
C. $5,000
D. $10,000

Correct Answer: C
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:

A. All leases must be in writing
B. All real estate contracts must be notarized
C. Contracts for sale of real property must be in writing to be enforceable
D. Verbal agreements are enforceable for contracts under $100,000

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

Q150. Which approach to value would be most appropriate for a unique church building?

A. Income approach
B. Market comparison
C. Cost-depreciation approach
D. Gross rent multiplier

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

Q151. What is the purpose of the tax certificate sale in Florida?

A. To raise funds for the local government
B. To collect delinquent property taxes
C. To seize and sell foreclosed homes
D. To issue tax rebates to homeowners

Correct Answer: B
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:

A. Transaction brokerage
B. Dual agency
C. Designated sales associates
D. Subagency

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.

Q153. What type of loan clause prevents the borrower from transferring the mortgage to another party?

A. Subordination clause
B. Prepayment clause
C. Defeasance clause
D. Due-on-sale clause

Correct Answer: D
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?

A. Breach of fiduciary duty
B. Specific performance
C. Constructive eviction
D. Misrepresentation

Correct Answer: D
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?

A. 3
B. 5
C. 10
D. 15

Correct Answer: C
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:

A. A separate interest-bearing account
B. A non-interest-bearing trust account
C. A Florida-based depository
D. Approved by the Division of Real Estate

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)

Q157. When using the income approach, what is the formula for estimating value?

A. NOI × Cap Rate
B. NOI ÷ Cap Rate
C. Cap Rate ÷ NOI
D. Net Income Expenses

Correct Answer: B
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?

A. The seller must extend the contract
B. The buyer is automatically refunded
C. The seller may declare a default
D. The broker is liable for the funds

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

Q159. A Florida broker may hold multiple broker licenses only when:

A. Each license is from a different county
B. Each license is for a different type of property
C. Each brokerage business is registered separately
D. FREC grants an exception

Correct Answer: C
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?

A. They automatically lose their licenses
B. Their licenses become involuntarily inactive
C. They must pay a reinstatement fee
D. They are transferred to another broker

Correct Answer: B
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?

A. Depositing personal rent income into an escrow account
B. Paying office rent from the operating account
C. Holding earnest money in a separate trust account
D. Transferring commission to a personal account after closing

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)

Q162. A broker receives conflicting demands for escrow funds and notifies FREC. How long does the broker have to implement a settlement procedure?

A. 10 business days
B. 15 calendar days
C. 20 calendar days
D. 30 business days

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)

Q163. Which document is legally required when an owner finances the sale of residential property with an agreement to accept installment payments?

A. Warranty deed
B. Lease-option agreement
C. Promissory note and mortgage
D. Land contract (contract for deed)

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

Q164. A landlord wishes to terminate a month-to-month tenancy. How much notice is required under Florida law?

A. 7 days
B. 15 days
C. 30 days
D. 60 days

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)

Q165. A property’s zoning is changed and the structure no longer conforms to the code but is allowed to remain. This is a:

A. Buffer zone
B. Variance
C. Legal nonconforming use
D. Conditional use

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)

Q166. A real estate licensee who violates the Fair Housing Act may be subject to action by:

A. FREC only
B. HUD and the DBPR
C. The local zoning authority
D. Florida Attorney General only

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

Q167. In a 1031 tax-deferred exchange, which of the following is not a requirement?

A. Properties must be held for productive use or investment
B. Replacement property must be identified within 45 days
C. Exchange must be completed within 180 days
D. The properties must be identical in location and type

Correct Answer: D
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?

A. Physical deterioration
B. Functional obsolescence
C. External obsolescence
D. Deferred maintenance

Correct Answer: C
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:

A. Show homes to prospective buyers
B. Answer questions about property condition
C. Schedule appointments and organize files
D. Discuss negotiation terms with clients

Correct Answer: C
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?

A. Nothing unless sales volume exceeds $1M
B. Notify DBPR within 30 days
C. Notify FREC and pay a $50 fine
D. File a new license application immediately

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

Q171. A property is sold as is with full disclosures. Which defect must still be disclosed to the buyer?

A. The seller’s emotional attachment
B. A known roof leak not visible during showing
C. A low appraisal on a prior deal
D. Outdated appliances

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

Q172. When calculating loan-to-value (LTV), which figure is used in the denominator?

A. The sales price
B. The appraised value or sales price, whichever is lower
C. The down payment
D. The mortgage balance

Correct Answer: B
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?

A. $500 fine
B. First-degree misdemeanor
C. Second-degree misdemeanor
D. Third-degree felony

Correct Answer: D
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?

A. 3%
B. 6%
C. 10%
D. No limit

Correct Answer: B
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:

A. The customer
B. The principal
C. The cooperating broker
D. The title agent

Correct Answer: B
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:

A. One tenant moves out
B. A tenant rents their share
C. One tenant sells their interest
D. All tenants agree to refinance

Correct Answer: C
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:

A. Provide census data
B. Offer personal opinion
C. Refer them to third-party sources
D. Disclose if diversity goals are met

Correct Answer: C
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?

A. Immediately upon receipt
B. Within 24 hours
C. Within 3 business days
D. Before contract signing

Correct Answer: C
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?

A. They may owe liquidated damages
B. No penalty applies
C. The contract is automatically void
D. The seller must renegotiate

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

Q180. A broker wants to advertise on social media. Which of the following is required?

A. Use of personal license number
B. A link to the FREC website
C. Inclusion of brokerage firm’s registered name
D. Broker’s personal phone number

Correct Answer: 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?

A. Valid and enforceable
B. Enforceable if deposit is accepted
C. Voidable at buyer’s discretion
D. Unenforceable under the Statute of Frauds

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

Q182. A property manager budgeting for recurring expenses like utilities and lawn care should include them under:

A. Capital expenditures
B. Reserve funds
C. Fixed expenses
D. Operating expenses

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

Q183. What form of ownership allows a married couple to protect a Florida homestead from individual creditors of one spouse?

A. Tenancy in common
B. Joint tenancy
C. Tenancy by the entirety
D. Life estate

Correct Answer: C
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?

A. Blanket mortgage
B. Package mortgage
C. Open-end mortgage
D. Purchase-money mortgage

Correct Answer: B
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?

A. Novation
B. Estoppel
C. Subrogation
D. Severability

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

Q186. When must a license applicant disclose a felony conviction that was sealed by the court?

A. Never, if sealed
B. Only if asked directly by DBPR
C. Always, regardless of sealing
D. Only if it occurred within 5 years

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)

Q187. Which appraisal principle suggests the most profitable use of a property determines its value?

A. Substitution
B. Conformity
C. Highest and best use
D. Anticipation

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

Q188. A seller has received multiple offers. Legally, the seller:

A. Must accept the highest offer
B. Must present them to the listing agent
C. May counter only one offer at a time
D. May accept, counter, or reject any offers in any order

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

Q189. A Florida broker is also a licensed attorney. When acting solely as an attorney in a transaction, they:

A. Must still disclose brokerage relationship
B. Are exempt from license law
C. Can deposit escrow funds into a personal account
D. Must perform dual agency

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

Q190. Which of the following is true about the role of a notary in real estate closings in Florida?

A. Notaries must review all contracts for legality
B. Notaries can represent both buyer and seller
C. Notaries acknowledge the authenticity of signatures
D. A notary’s presence makes a contract legally binding

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

Q191. The portion of a mortgage payment that reduces the principal balance is called:

A. Interest
B. Escrow
C. Amortization
D. PMI

Correct Answer: C
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:

A. Loss of real estate license
B. Cancellation rights exercised by buyer
C. Civil action for constructive eviction
D. Fines by FREC

Correct Answer: B
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:

A. Insurance against defects
B. A summary of title history
C. The current market value
D. A deed conveying ownership

Correct Answer: B
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?

A. 2 years
B. 3 years
C. 5 years
D. 7 years

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

Q195. Which ownership right is the right to exclude others from the property?

A. Disposition
B. Possession
C. Control
D. Exclusion

Correct Answer: D
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:

A. RESPA
B. ECOA
C. Truth-in-Lending Act
D. Fair Housing Act

Correct Answer: C
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?

A. DBPR Division of Real Estate
B. FREC
C. HUD
D. DBPR Division of Condominiums, Timeshares, and Mobile Homes

Correct Answer: D
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?

A. One property cannot be worth more than a similar substitute
B. A higher use replaces a lower use over time
C. A newer building always appraises higher than an older one
D. Value is increased by improving dissimilar features

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

Q199. A real estate licensee attempts to collect a fee for appraising property. This is a violation because:

A. Only brokers may perform appraisals
B. Only licensed or certified appraisers may be compensated for appraisals
C. CMAs are illegal without permission
D. It is a conflict of interest

Correct Answer: B
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?

A. The lien cancels the listing
B. The seller must disclose the lien and satisfy it before closing
C. The listing is void
D. The lien transfers to the buyer

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)

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?

A. Monday by end of day
B. Tuesday by end of day
C. Wednesday by end of day
D. Friday before midnight

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)

Q202. Which party is legally authorized to draft a deed in a Florida transaction?

A. The listing broker
B. The seller’s attorney
C. The closing agent without legal training
D. The buyer’s agent

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

Q203. In which scenario is the broker not entitled to a commission?

A. Buyer defaults after all contingencies are removed
B. Seller rejects full-price, cash offer with no contingencies
C. Buyer withdraws after failing to secure financing
D. Property fails to appraise at contract value

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

Q204. Which of the following is not a requirement of a valid listing agreement in Florida?

A. Names of all owners
B. Signature of at least one property owner
C. Legal description of the property
D. Definite expiration date

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)

Q205. A sales associate forms a PA (Professional Association) and is paid through it. Who must the check come from?

A. The title company
B. The client
C. The employing broker
D. The escrow agent

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

Q206. A property’s market value is $280,000. The buyer secures a mortgage of $224,000. What is the LTV ratio?

A. 75%
B. 80%
C. 85%
D. 90%

Correct Answer: B
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?

A. Nothing; this is automatic
B. The principal must consent in writing
C. A FREC officer must be present
D. All fiduciary duties remain

Correct Answer: 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?

A. Loyalty
B. Full disclosure
C. Obedience
D. Confidentiality

Correct Answer: C
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?

A. Seisin
B. Habendum
C. Warranty forever
D. Covenant of quiet enjoyment

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

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)?

A. 10
B. 12
C. 120
D. 144

Correct Answer: D
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?

A. $21,000
B. $22,500
C. $23,500
D. $24,000

Correct Answer: B
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?

A. Disclose all known facts about the property
B. Avoid speaking unless asked
C. Present only written materials
D. Use general statements without specifics

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

Q213. A property’s assessed value is $215,000. The owner qualifies for the full $50,000 homestead exemption. What is the taxable value?

A. $165,000
B. $170,000
C. $160,000
D. $185,000

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

Q214. A landlord fails to return a security deposit or explain deductions within 30 days. What is the result?

A. The tenant forfeits the deposit
B. The deposit is assumed forfeited
C. The tenant is entitled to full refund
D. The issue must go to small claims court

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.

Q215. What defines a township in the rectangular survey system?

A. A 6-mile by 6-mile square
B. A section of 640 acres
C. A subdivision within a range
D. An east-west tier

Correct Answer: A
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?

A. General agency
B. Ostensible agency
C. Special agency
D. Universal agency

Correct Answer: D
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?

A. Impact fee
B. Special assessment
C. Dedication
D. Developer-exacted contribution

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

Q218. Which contract element is not required for enforceability?

A. Consideration
B. Legal purpose
C. In writing
D. Earnest money

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

Q219. A brokerage account is audited and shows that the broker failed to reconcile monthly. What’s the likely result?

A. Fine or administrative penalty
B. License revocation
C. Referral to IRS
D. No action unless money is missing

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.

Q220. What best describes a cooperative ownership structure?

A. Tenants own their unit and a share of common areas
B. Owners hold stock in a corporation that owns the property
C. Each unit has its own parcel ID
D. The building is managed under an HOA

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

Q221. A property manager collects a tenant’s rent and accidentally deposits it into the company’s operating account. What violation has occurred?

A. Commingling
B. Conversion
C. Fraud
D. Negligence

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)

Q222. Which of the following creates an agency relationship without a written agreement?

A. Estoppel
B. Ratification
C. Implied agency
D. Designated agency

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

Q223. A broker’s license is revoked for escrow mishandling. What happens to the licenses of their sales associates?

A. All licenses are permanently revoked
B. Licenses convert to voluntary inactive
C. Licenses become involuntarily inactive
D. FREC suspends them for 90 days

Correct Answer: C
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?

A. Tenancy in common
B. Joint tenancy
C. Life estate
D. Fee simple determinable

Correct Answer: B
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?

A. Landlord refuses to repair a broken AC in Florida summer
B. Tenant receives a 3-day notice to pay rent
C. Lease expires and landlord raises rent
D. Neighbor’s barking dog disrupts sleep

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)

Q226. Which of the following property types is exempt from federal fair housing law?

A. Four-unit owner-occupied property
B. Condo in a retirement community
C. Commercial office space
D. Single-family home listed by broker

Correct Answer: C
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?

A. General warranty deed
B. Special warranty deed
C. Quitclaim deed
D. Bargain and sale deed

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

Q228. What is the result of a legal description using metes and bounds ?

A. A rectangular map overlay
B. A series of plat lot numbers
C. A perimeter-based property survey
D. A subdivision’s zoning map

Correct Answer: C
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?

A. Assigned to the nearest relative
B. Divided among creditors
C. Transferred to the state via escheat
D. Sold by the county tax assessor

Correct Answer: C
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?

A. Lender
B. Borrower
C. Trustee
D. Title company

Correct Answer: B
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:

A. Puffing
B. Misrepresentation
C. Steering
D. Blind advertising

Correct Answer: 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:

A. The market approach
B. The cost approach
C. The income approach
D. Gross rent multiplier

Correct Answer: B
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?

A. Automatic license suspension
B. $500 civil fine
C. Minor infraction citation
D. Written warning

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.

Q234. A deed is not considered valid unless:

A. It is recorded
B. It is notarized
C. It is signed by the grantee
D. It is delivered and accepted

Correct Answer: D
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?

A. Selling your own home
B. Referring a buyer for a friend for free
C. Advertising homes for sale as a paid service
D. Leasing your own investment properties

Correct Answer: C
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?

A. To guarantee a fixed interest rate
B. To protect against future condemnation
C. To insure against defects in title
D. To verify flood zone status

Correct Answer: C
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?

A. File with FREC and register the name with DBPR
B. Only use initials on advertising
C. File articles of incorporation
D. Notify their broker, but no state registration is needed

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

Q238. A buyer makes an offer, and the seller makes changes and signs it. What is the status of the offer?

A. Accepted and binding
B. Voided
C. Counteroffer
D. Contingent

Correct Answer: C
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:

A. Another broker sells the property
B. The seller finds the buyer themselves
C. The property sells below market
D. The seller cancels the listing

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)

Q240. What is the relationship between a broker and the principal in a single agency?

A. Fiduciary
B. Transactional
C. Advisory
D. Arms-length

Correct Answer: A
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?

A. Allows changes to property zoning
B. Limits certain uses or improvements
C. Grants power of attorney to the HOA
D. Replaces the need for building permits

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

Q242. A buyer under contract discovers that the property was misrepresented and withdraws. What happens to the escrow deposit?

A. Returned to the seller
B. Forfeited
C. Released to the buyer
D. Held until arbitration

Correct Answer: C
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?

A. Broker’s commission
B. Loan APR
C. Prorated taxes
D. Survey cost

Correct Answer: B
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?

A. Leave it until a complaint is filed
B. Immediately correct the ad
C. Ask the seller to confirm figures
D. Report it to the DBPR

Correct Answer: 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?

A. Tenancy in common
B. Life estate
C. Joint tenancy with right of survivorship
D. Fee simple determinable

Correct Answer: C
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?

A. Increase taxable land
B. Separate incompatible uses
C. Encourage development
D. Avoid spot 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

Q247. What is the effect of a subordination clause in a mortgage?

A. Converts an FHA loan to conventional
B. Cancels a junior lien
C. Allows a new lien to take priority
D. Prevents foreclosure

Correct Answer: C
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?

A. Misrepresentation
B. Concealment
C. Commingling
D. Failure to account

Correct Answer: B
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?

A. A witness
B. Oral agreement
C. Writing and signature
D. Notarization

Correct Answer: C
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?

A. Advertising without broker’s name
B. Non-payment of child support
C. Dispute over commission
D. Late renewal

Correct Answer: B
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?

A. Release funds to the buyer
B. Immediately refund both parties
C. Notify FREC within 15 days
D. Deposit funds in a personal account

Correct Answer: C
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:

A. Variable lease
B. Net lease
C. Step lease
D. Percentage lease

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

Q253. A new sales associate fails the post-licensing exam. What happens to their license?

A. Suspended
B. Voluntarily inactive
C. Null and void
D. Converted to a broker license

Correct Answer: C
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)?

A. Any home in Florida
B. All FHA loans
C. Homes in Special Flood Hazard Areas with federally backed loans
D. Cash purchases in flood zones

Correct Answer: C
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?

A. Buyer
B. Broker
C. Seller
D. Title company

Correct Answer: C
Explanation: The seller is legally responsible for disclosing known defects.
Citation: Johnson v. Davis

Q256. The discount rate is most directly controlled by:

A. Federal Reserve
B. U.S. Treasury
C. Local banks
D. Fannie Mae

Correct Answer: A
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?

A. The firm’s license number
B. Legal description of the property
C. Signature of the associate
D. Duties owed to the customer or client

Correct Answer: D
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?

A. FHA
B. USDA
C. VA
D. Conventional

Correct Answer: C
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?

A. Contribution
B. Regression
C. Assemblage
D. Anticipation

Correct Answer: A
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?

A. Yes, up to $1,000
B. No under any condition
C. Yes, if approved by FREC
D. Yes, if under $10,000

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)

Q261. A property manager signs a lease on behalf of the owner without written authority. What is the legal status of the lease?

A. Voidable by tenant
B. Valid if rent is paid
C. Void due to lack of power
D. Enforceable if ratified

Correct Answer: D
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?

A. A listing that pays commission only on net profit
B. A listing where broker keeps any amount above seller’s price
C. A cooperative listing with multiple agents
D. A listing below market value

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)

Q263. What triggers mandatory disclosure under the Interstate Land Sales Full Disclosure Act (ILSA.?

A. Any sale over $250,000
B. Subdivisions with 25 or more lots
C. Subdivisions of 100+ lots sold interstate
D. All sales in flood zones

Correct Answer: C
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?

A. Tenancy at will is created
B. Lease is reinstated
C. Eviction must begin
D. Lease becomes void

Correct Answer: A
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?

A. Fixed-rate mortgage
B. Adjustable-rate mortgage (ARM)
C. Graduated payment mortgage (GPM)
D. Reverse mortgage

Correct Answer: C
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?

A. A valid and binding contract
B. A void contract
C. A new offer
D. A revocable option

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

Q267. A developer is required to donate land for a public park in order to obtain zoning approval. This is known as:

A. Eminent domain
B. Dedication
C. Escheat
D. Condemnation

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

Q268. Which deed clause defines the interest being granted and the type of ownership?

A. Granting clause
B. Habendum clause
C. Seisin clause
D. Testimonium clause

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

Q269. A real estate licensee refers a buyer to a mortgage broker and receives $200 as a thank-you. What law is violated?

A. TILA
B. Fair Credit Act
C. RESPA
D. Sherman Act

Correct Answer: C
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?

A. Eliminates foreclosure rights
B. Converts the lien to unsecured debt
C. Gives priority to a newer lien
D. Protects the borrower from default

Correct Answer: C
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?

A. Buydown
B. Discounting
C. Loan assumption
D. Acceleration

Correct Answer: A
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?

A. Cease all operations immediately
B. Notify FREC within 10 days
C. Allow the other partner to assume full control
D. Cancel all existing listings

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

Q273. A buyer asks about church locations in a specific neighborhood. The best response is:

A. This area is very family-oriented.
B. You can find that information online.
C. Most of our buyers are Christian.
D. I can’t legally tell you that.

Correct Answer: B
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?

A. $245,000
B. $270,000
C. $250,000
D. $295,000

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

Q275. Which of the following is not considered legally sufficient consideration in a contract?

A. A promise to perform
B. Payment of money
C. Mutual agreement
D. Illegal act

Correct Answer: D
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?

A. Chapter 455
B. Chapter 475
C. Chapter 61J2
D. Chapter 718

Correct Answer: B
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?

A. No disclosure needed
B. Written disclosure outlining terms
C. Verbal agreement with the seller
D. Approval by FREC

Correct Answer: B
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?

A. Lease continues month to month
B. Tenant remains without consent
C. Landlord must give 30-day notice
D. Tenant has legal possession

Correct Answer: B
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?

A. Protection against future title claims
B. Right to possess without disturbance
C. Legal access to the property
D. Right to exclude government inspection

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

Q280. A broker receives a $5,000 bonus from a developer after bringing a buyer but does not tell the buyer. What is this?

A. Legal if under $10,000
B. Concealment and unethical
C. Permitted with verbal consent
D. Acceptable under transaction brokerage

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.

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?

A. When the buyer visits the property
B. Upon receiving a signed offer
C. Before showing the property
D. After prequalification

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)

Q282. A contract is missing a legal description but contains street address and parcel ID. What is the likely legal outcome?

A. Valid contract
B. Voidable by buyer
C. Void for vagueness
D. Binding with verbal clarification

Correct Answer: C
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?

A. FREC approval
B. Brokerage sponsorship
C. Electronic fingerprinting and background check
D. Proof of residence in Florida

Correct Answer: C
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?

A. Seller countering at a higher price
B. Buyer making a second offer
C. Buyer obtaining a mortgage commitment
D. Seller accepting the offer

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

Q285. Which of the following is not an essential element of a valid deed?

A. Grantor signature
B. Legal description
C. Date of execution
D. Delivery and acceptance

Correct Answer: C
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:

A. Be forced to close or lose deposit
B. Sue for specific performance
C. Cancel the contract without penalty
D. Require seller to lower price

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

Q287. A broker finds an error in a signed listing agreement. What should they do?

A. Change it and inform the seller
B. Leave it to avoid restarting the process
C. Cancel the listing and refuse to relist
D. Have both parties sign an amendment

Correct Answer: D
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?

A. FREC training
B. License for each officer
C. Registration with DBPR
D. Legal opinion from an attorney

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

Q289. What must be true of all earnest money deposits received by a broker?

A. They must be reported to FREC
B. They must be placed in escrow within 3 business days
C. They can be kept in the firm’s general account
D. They must be invested for interest

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)

Q290. The Market Comparison Approach is least effective for valuing:

A. Single-family homes
B. Custom-built homes
C. Condominiums
D. Vacant lots in subdivisions

Correct Answer: B
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:

A. Trust account misuse
B. Commingling
C. First-time minor violations
D. Criminal conviction disclosure

Correct Answer: C
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?

A. Mutual performance
B. Nominal consideration
C. Delivery of title
D. Open-ended term

Correct Answer: B
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?

A. Lease converts to month-to-month
B. Tenant may sue for constructive eviction
C. Rent is increased by default
D. Tenant is evicted

Correct Answer: B
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?

A. 3
B. 7
C. 10
D. 15

Correct Answer: D
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?

A. Contribution
B. Highest and best use
C. Substitution
D. Balance

Correct Answer: C
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?

A. A-1
B. R-3
C. C-1
D. I-1

Correct Answer: C
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?

A. Judgment lien
B. Mortgage lien
C. Mechanic’s lien
D. Property tax lien

Correct Answer: B
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:

A. The licensee chooses to pause activity
B. The license expires without renewal
C. The licensee completes post-licensing but skips CE
D. The licensee changes brokers

Correct Answer: B
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?

A. Eminent domain
B. Police power
C. Escheat
D. Taxation

Correct Answer: A
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?

A. Special agency
B. Designated agency
C. Universal agency
D. Transactional agency

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.