1. Under Florida law, the right of survivorship in a joint tenancy exists
Answer & explanation
Answer: B. Section 689.15 abolished the automatic presumption of survivorship except for estates by the entirety, unless the instrument expressly provides for it. Married couples generally hold as tenants by the entirety, which is a different estate.
2. A life tenant who demolishes a sound building on the property, reducing its value to the remainderman, has committed
Answer & explanation
Answer: A. Waste is permanent damage by a life tenant that injures the future interest holder. Escheat is the reversion of property to the state when an owner dies without heirs or will.
3. Which person renting property for others for compensation is exempt from Florida real estate licensure?
Answer & explanation
Answer: C. Section 475.011 exempts those renting or advertising transient occupancy of public lodging establishments licensed under Chapter 509. Renting long-term residential property for others for compensation requires a license.
4. A sales associate who changes employing brokers must notify the commission within
Answer & explanation
Answer: C. Section 475.23 requires notice within 10 days when a sales associate changes employers; the license ceases to be in force until the change is recorded.
5. After a Florida residential mortgage is paid in full, the mortgagee must record a satisfaction within
Answer & explanation
Answer: D. Section 701.04(2) requires the mortgagee or servicer to execute and record a satisfaction within 60 days after full payment. Ten days is the deadline for an estoppel (payoff) letter after a written request.
6. Which statement about FREC membership is correct?
Answer & explanation
Answer: A. Four seats are for brokers with 5 years of active licensure, one for a broker or sales associate with 2 years, and two for consumers. Only one member must be 60 or older.
7. Which penalty may FREC NOT impose?
Answer & explanation
Answer: C. FREC is an administrative body and cannot imprison anyone. Only a court can impose a criminal sentence.
8. When a seller refuses to close on a valid contract, the remedy that requires the seller to convey the property is
Answer & explanation
Answer: C. Because land is unique, a court may order specific performance to compel the seller to convey. Liquidated damages are money agreed in advance (commonly the seller's remedy against a defaulting buyer). Rescission undoes the contract instead of enforcing it.
9. Which applicant is eligible to apply under mutual recognition?
Answer & explanation
Answer: D. The applicant must not be a Florida resident when applying, must hold an active license in good standing, and must have earned it by that state's education and exam rather than reciprocity.
10. For IRS purposes, a licensed real estate agent is treated as a statutory nonemployee when the agent is licensed, a written contract states the agent is not treated as an employee for tax purposes, and
Answer & explanation
Answer: C. The three IRS tests are licensure, pay based substantially on output, and a written contract specifying nonemployee tax treatment. Hours worked and association membership are not factors.
11. Under s. 697.02, F.S., a mortgage on Florida real property is
Answer & explanation
Answer: C. Florida is a lien-theory state: s. 697.02 states that a mortgage is a specific lien on the described property and not a conveyance of legal title or of the right of possession. A general lien would attach to all of the debtor's property.
12. What is the maximum the Real Estate Recovery Fund will pay for all claims arising out of a single transaction?
Answer & explanation
Answer: B. Claims from the same transaction are limited, in the aggregate, to $50,000 regardless of the number of claimants. $150,000 is the aggregate cap per licensee, not per transaction.
13. How many acres are in the S 1/2 of the NW 1/4 of the NE 1/4 of a section?
Answer & explanation
Answer: B. Denominators 2 x 4 x 4 = 32, and 640 / 32 = 20 acres. Choosing 40 ignores the final 'S 1/2.'
14. In the sales comparison approach, when a comparable property has a feature that the subject property lacks, the appraiser should
Answer & explanation
Answer: A. Adjustments are always made to the comparable. If the comparable is better, subtract the feature's value from the comparable's price ('comp better, subtract'). Adjusting the subject is never correct.
15. A home in Orange County sells for $347,250. What is the Florida documentary stamp tax on the deed?
Answer & explanation
Answer: B. Step 1: $347,250 / 100 = 3,472.5, which rounds UP to 3,473 because any fraction of $100 counts as a full $100. Step 2: 3,473 x $0.70 = $2,431.10. $2,430.75 forgets to round up; $1,215.55 uses the $0.35 note rate.
16. Which activity is exempt from Florida real estate licensure?
Answer & explanation
Answer: A. Section 475.011 exempts persons renting or advertising transient occupancy of Chapter 509 public lodging establishments. The other activities are brokerage.
17. FREC members are appointed by the Governor for terms of
Answer & explanation
Answer: B. FREC members serve 4-year terms and require Senate confirmation.
18. Under s. 475.612, F.S., a Florida sales associate who prepares a comparative market analysis
Answer & explanation
Answer: C. Section 475.612(3) lets brokers and sales associates perform CMAs and price opinions in the ordinary course of business without an appraiser license, but the analysis may never be referred to or construed as an appraisal.
19. Operating as a sales associate without a valid, current, active license is a
Answer & explanation
Answer: D. Section 475.42(1)(a) makes unlicensed operation a third-degree felony. Most other s. 475.42(1) violations are second-degree misdemeanors.
20. Which of the following is NOT an essential element of a valid real estate sales contract in Florida?
Answer & explanation
Answer: A. Recording gives public notice and protects against later claims, but a contract is valid between the parties without being recorded. Competent parties, consideration, and offer and acceptance (along with lawful purpose and a signed writing) are essential elements.
21. Which person must hold a real estate license?
Answer & explanation
Answer: A. Renting property for others for compensation is brokerage and no exemption applies. Owners, receivers, and CPAs within their duties are exempt.
22. A sales associate in Florida may perform brokerage services only
Answer & explanation
Answer: C. By definition a sales associate works under another's direction, control, or management. There is no waiting period to work independently; a sales associate must obtain a broker license to operate independently.
23. When adjusting comparables in a CMA, if a comparable has a feature the subject lacks, the licensee should
Answer & explanation
Answer: A. Adjustments are always made to the comparable. If the comparable is better, subtract (CBS); if inferior, add (CIA). The subject is never adjusted.
24. An investor buys three adjoining lots for $100,000 each. Combined, the site is worth $420,000. The $120,000 increase is called
Answer & explanation
Answer: D. Assemblage is the act of combining parcels; plottage is the resulting increase in value. Combined value $420,000 - separate total $300,000 = $120,000 of plottage value. Contribution concerns the value a component adds; conformity concerns similarity to neighbors.
25. A 17-year-old signs a contract to sell a lot she inherited to an adult buyer. The contract is
Answer & explanation
Answer: B. A contract with a minor is voidable at the minor's option; the adult remains bound unless the minor disaffirms. It is not void, because it has legal effect until the minor cancels. The adult cannot use the minor's age to escape.
Sources
Source verification pending. Confirm current requirements with your state regulator.