16 Florida State Law (FREC) Practice Questions & Answers
Every Florida State Law (FREC) practice question from the Real Estate License Practice Test, with the correct answer and a short explanation.
Start practice test →1. Which state agency and its division are responsible for administering and enforcing Florida's real estate license law under Chapter 475?
- A.The Department of Financial Services, through the Division of Consumer Services
- B.The Department of Business and Professional Regulation (DBPR), through the Division of Real Estate✓ Answer
- C.The Florida Department of Revenue, through the Division of Property Tax
- D.The Florida Department of State, through the Division of Corporations
Real estate licensing in Florida is housed in the DBPR, and its Division of Real Estate provides administrative support to the Florida Real Estate Commission (FREC), which regulates licensees under Chapter 475.
Source: Fla. Stat. Ch. 475; DBPR / Division of Real EstateReport a problem with this question
2. What is the primary role of the Florida Real Estate Commission (FREC)?
- A.To set and collect property taxes on real estate transactions
- B.To approve mortgage loans for buyers of Florida real estate
- C.To adopt rules, and administer and enforce Chapter 475 for real estate licensees✓ Answer
- D.To act as the mandatory escrow holder for all real estate deposits in the state
FREC is the regulatory body created under Chapter 475 to adopt administrative rules (Rule 61J2), license qualified applicants, and discipline licensees; it does not hold escrow, set taxes, or make loans.
Source: Fla. Stat. 475.02; 475.05 (FREC powers and duties)Report a problem with this question
3. Under Florida law, when no brokerage relationship is established in writing, how is a licensee presumed to be operating?
- A.As a designated sales agent
- B.As a single agent for the seller
- C.As a dual agent for both parties
- D.As a transaction broker✓ Answer
Section 475.278 creates a statutory presumption that all licensees operate as transaction brokers unless a single agent or no-brokerage relationship is established in writing with the customer.
Source: Fla. Stat. 475.278(1)(b) (presumption of transaction brokerage)Report a problem with this question
4. Which duty is owed to a customer by a single agent but NOT by a transaction broker in Florida?
- A.Dealing honestly and fairly
- B.Accounting for all funds
- C.Loyalty and obedience✓ Answer
- D.Disclosing material facts not readily observable
Loyalty and obedience are fiduciary duties unique to the single agent relationship; the other three duties are shared by both single agents and transaction brokers under Section 475.278.
Source: Fla. Stat. 475.278(3)(a) (single agent duties) vs. 475.278(2)(a) (transaction broker duties)Report a problem with this question
5. A Florida single agent wishes to change to a transaction broker relationship with the same customer during a transaction. What is required first?
- A.A new state examination for the licensee
- B.The customer's signed written consent to transition to transaction broker✓ Answer
- C.Written approval from FREC before the change
- D.Notice to the other party's broker only
Section 475.278 permits a single agent to transition to a transaction broker only after the customer signs the statutory Consent to Transition to Transaction Broker notice, so the change to reduced representation is informed and voluntary.
Source: Fla. Stat. 475.278(3)(c) (consent to transition to transaction broker)Report a problem with this question
6. Which brokerage relationship is expressly prohibited for real estate licensees in Florida?
- A.No brokerage relationship
- B.Transaction brokerage
- C.Single agency for the buyer
- D.Dual agency (representing both parties as a single agent)✓ Answer
Section 475.278 states a licensee may not operate as a disclosed or nondisclosed dual agent; Florida instead uses the transaction broker model when a licensee works with both parties.
Source: Fla. Stat. 475.278(1)(a) (dual agency prohibited)Report a problem with this question
7. When must a single agent provide the single agent disclosure to a prospective residential customer?
- A.Within 30 days after the contract is signed
- B.Only at the closing table
- C.Before, or at the time of, entering a listing or representation agreement, or before showing property, whichever comes first✓ Answer
- D.Only if the customer specifically requests it in writing
The single agent disclosure must be made in writing before or at the time of entering a listing or representation agreement or before showing property, whichever occurs first, so the customer understands the relationship early.
Source: Fla. Stat. 475.278(3)(b) (timing of single agent disclosure)Report a problem with this question
8. In residential transactions, how must Florida's required brokerage relationship disclosures generally be presented in the document?
- A.In small footnote text at the end of the contract
- B.Only in a separate email sent after closing
- C.In writing, in a prominent location, in uppercase and bold type✓ Answer
- D.Verbally, with no written record required
Section 475.278 requires the single agent and transition disclosures to be in writing, placed prominently in the document, and set in uppercase and bold type so the consumer cannot easily overlook them.
Source: Fla. Stat. 475.278(4)(a) (format of required disclosures)Report a problem with this question
9. Under Florida rules, a broker who holds escrow must place a deposit into the trust account no later than the end of which business day after receiving it?
- A.The end of the first calendar week
- B.The end of the same day
- C.The end of the third business day✓ Answer
- D.The end of the tenth business day
FREC rules define 'immediately' as no later than the end of the third business day following receipt of the funds, and Saturdays, Sundays, and legal holidays are not counted as business days.
Source: Rule 61J2-14.008/14.009, F.A.C. (deposit within 3 business days)Report a problem with this question
10. A Florida broker holding an escrow deposit receives conflicting demands from the buyer and seller. What must the broker do first under FREC rules?
- A.Keep the deposit indefinitely without notifying anyone
- B.Immediately release the deposit to whichever party demands it loudest
- C.Split the deposit equally between buyer and seller without further steps
- D.Notify FREC in writing of the conflicting demands within the required time, then use a statutory settlement procedure✓ Answer
When faced with conflicting demands on escrowed funds, the broker must timely notify FREC and then institute one of the statutory settlement procedures (mediation, arbitration, litigation, or an escrow disbursement order) rather than deciding the dispute unilaterally.
Source: Fla. Stat. 475.25(1)(d); Rule 61J2-10.032, F.A.C. (conflicting demands / escrow settlement procedures)Report a problem with this question
11. Under Chapter 475, a Florida sales associate must perform all licensed real estate activities under what condition?
- A.Registered under and acting for a single licensed broker (or owner-developer/government)✓ Answer
- B.Under the direct supervision of FREC staff
- C.Only after also holding a broker license
- D.As a fully independent principal with no supervising broker
A sales associate cannot operate independently; Chapter 475 requires the associate to be registered under and work only for one broker (or an owner-developer or government agency) who is responsible for supervising their activities.
Source: Fla. Stat. 475.01; 475.42(1)(b) (sales associate must work under one broker)Report a problem with this question
12. Which action may a Florida sales associate NOT legally do?
- A.Collect real estate compensation directly from a customer instead of through their broker✓ Answer
- B.Show listed property to a prospective buyer
- C.Hold open houses on behalf of their broker
- D.Prepare an offer for a buyer to submit
Chapter 475 provides that a sales associate may only be compensated by the broker under whom they are registered; collecting a fee directly from a customer or another party is prohibited and is grounds for discipline.
Source: Fla. Stat. 475.42(1)(d) (sales associate may be paid only by their broker)Report a problem with this question
13. What is the defining characteristic of a transaction broker's confidentiality duty in Florida?
- A.No confidentiality at all, since a transaction broker must disclose everything to both sides
- B.Limited confidentiality, so certain facts (like a party's willingness to accept a different price) are kept confidential unless waived in writing✓ Answer
- C.Confidentiality that applies only to the seller, never the buyer
- D.Absolute, fiduciary-level confidentiality identical to a single agent
A transaction broker owes only limited confidentiality: specific facts such as that a seller will accept less or a buyer will pay more must be kept confidential unless a party waives it in writing, which distinguishes it from a single agent's full confidentiality.
Source: Fla. Stat. 475.278(2)(a) (transaction broker duty of limited confidentiality)Report a problem with this question
14. In Florida, if a real estate licensee does not establish a single-agent or no-brokerage relationship in writing with a customer, what brokerage relationship is presumed to exist?
- A.Dual agent
- B.Single agent for the seller
- C.Designated fiduciary agent
- D.Transaction broker✓ Answer
Under Florida Statute 475.278, all licensees are presumed to operate as transaction brokers unless a single-agent or no-brokerage relationship is established in writing; the transaction broker provides limited representation without a fiduciary duty of undivided loyalty to either party.
Source: Fla. Stat. 475.278 (presumption of transaction brokerage)Report a problem with this question
15. A Florida broker receives conflicting demands from a buyer and seller over an earnest-money deposit held in the broker's escrow account. Within what time must the broker notify the Florida Real Estate Commission (FREC) of the conflicting demands?
- A.Within 24 hours
- B.Within 30 calendar days
- C.Within 10 business days
- D.Within 15 business days✓ Answer
Florida Administrative Code Rule 61J2-10.032 requires a broker with conflicting demands or good-faith doubt over escrowed funds to notify FREC within 15 business days, and then to institute one of the settlement procedures (mediation, arbitration, escrow disbursement order, or litigation) within 30 business days.
Source: Fla. Admin. Code R. 61J2-10.032 (notice requirements); Fla. Stat. 475.25(1)(d)Report a problem with this question
16. A newly licensed Florida real estate sales associate must complete FREC-approved post-licensing education before the first license renewal. How many hours are required, and failing to complete them by the deadline has what effect on the license?
- A.30 hours; a late fee is assessed but the license stays active
- B.60 hours; the license reverts to inactive status
- C.14 hours; the license is suspended for 6 months
- D.45 hours; the license becomes null and void✓ Answer
Florida sales associates must complete 45 hours of FREC-approved post-licensing education before their first renewal; because there is no grace period, missing the deadline renders the license null and void, and the person must requalify by retaking the pre-license course and state exam.
Source: Fla. Stat. 475.17(3); Fla. Admin. Code R. 61J2-3.009 (post-licensing education)Report a problem with this question
Practice questions cover the uniform national portion of the real estate exam. Your state adds a state-law portion — study your state's official materials before testing. Licensing info (ARELLO) →