Florida real estate state law practice test

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.

Answer: D. Rule 61J2-10.025 requires the licensed name of the brokerage firm in every real estate ad.

Answer: B. No Florida statute or FREC rule expressly prohibits net listings, and Florida pre-license curricula describe them as legal but discouraged. Because the broker keeps everything above the seller's net, a broker may be tempted to underprice, which can lead to discipline for misrepresentation or fraud under s. 475.25(1)(b).

Answer: C. Section 475.612(3) exempts brokers and sales associates who, in the ordinary course of business, perform a CMA, price opinion or opinion of value, but provides that it may in no event be referred to or construed as an appraisal. Following USPAP or having the broker sign it does not convert a CMA into an appraisal, and no appraiser credential is needed for a CMA.

Answer: A. Eminent domain allows government to take private property for public use, and Art. X, s. 6 of the Florida Constitution requires full compensation. The proceeding is condemnation (Ch. 73-74, F.S.). Police power regulates without compensation and does not transfer title.

Answer: B. Section 475.17(3) voids the license if post-licensing is not completed before the first renewal. The person must retake the prelicense course and pass the exam. (Hardship extensions are limited.)

Answer: A. The probable cause panel, made up of FREC members, meets privately and decides whether charges should be filed. The investigator gathers facts but does not decide probable cause, and DOAH only becomes involved for a formal hearing after charges are filed.

Answer: A. Summary (emergency) suspension is issued by the Secretary of the Department of Business and Professional Regulation or a designee. FREC issues regular final orders, but the emergency power rests with the DBPR Secretary.

Answer: B. ILSA gives purchasers a 7-day revocation right. Ten days is Florida's timeshare cancellation period, a common distractor.

Answer: A. Section 475.011 exempts persons renting or advertising transient occupancy of Chapter 509 public lodging establishments. The other activities are brokerage.

Answer: B. The settlement removed offers of compensation from the MLS and required written buyer agreements before touring. Sellers may still offer concessions or pay buyer brokers outside the MLS, and commissions remain fully negotiable.

Answer: A. Fee simple absolute is unlimited in duration and freely transferable and inheritable. A fee simple determinable can end automatically if a condition is broken.

Answer: C. Steering channels buyers toward or away from areas based on a protected class. Blockbusting (also called panic peddling) targets owners to induce sales, and redlining is a lending or insurance practice.

Answer: D. The FR/Bar forms prorate items through the day prior to closing, so the seller is charged through the day before closing and the buyer owns the day of closing.

Answer: B. Offers must be presented timely unless a party has previously directed otherwise in writing. An oral instruction does not meet the statute.

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.

Answer: D. Chapter 177 requires plats to be prepared and sealed by a professional surveyor and mapper, approved by the local governing body, and recorded with the county clerk, with permanent reference monuments set. Real estate licensees do not prepare plats.

Answer: D. Section 475.01(3) states that performing one act of brokerage brings a person within the chapter, and each act is a separate offense. There is no threshold number of transactions.

Answer: C. The cycle runs recovery, expansion, hypersupply (oversupply), and recession, then returns to recovery.

Answer: A. An offeror may revoke an offer any time before acceptance is communicated, even if the offer names a deadline, unless the offeree paid consideration for an option to keep it open. No consideration was paid here, so revocation is effective.

Answer: D. Section 455.228 lets DBPR act against unlicensed persons with cease-and-desist orders and fines up to $5,000 per incident, and unlicensed brokerage is a third-degree felony under s. 475.42(1)(a). There is no license for FREC to revoke.

Answer: B. The owner's policy, paid with a one-time premium, protects the insured owner and heirs for as long as they hold an interest. The lender's policy protects only the lender, and zoning matters are excluded.

Answer: A. Publicly traded REIT shares can be sold on an exchange on any trading day. Raw land is the least liquid; a fourplex and LP interests can take months to sell and LP interests often have transfer restrictions.

Answer: A. Section 475.01(2) recognizes independent-contractor relationships but provides that they do not relieve broker or associate of duties under Chapter 475. The associate still may be paid only by the employing broker.

Answer: C. Rule 61J2-14.012 requires at least a monthly reconciliation comparing trust liability to reconciled bank balances, signed and dated by the broker.