1. Under Florida law, which agency has direct regulatory oversight of the Florida Real Estate Commission (FREC)?
- A. The Florida Department of Agriculture and Consumer Services
- B. The Florida Department of Business and Professional Regulation (DBPR) ✓
- C. The Florida Attorney General's Office
- D. The Florida Office of Financial Regulation
FREC operates under the Florida Department of Business and Professional Regulation (DBPR) pursuant to Chapter 455 and Chapter 475, Florida Statutes. The DBPR provides administrative support and enforcement infrastructure, while FREC sets policy and discipline for real estate licensees.
2. A Florida real estate sales associate license is initially issued in which status?
- A. Active, with full practice authority
- B. Inactive, until the licensee registers with an employing broker ✓
- C. Probationary, pending completion of post-license education
- D. Suspended, until fingerprint background check clears
A Florida sales associate license is initially issued in inactive status unless and until the licensee is properly registered under an employing Florida real estate broker or owner-developer. The licensee may not perform real estate services requiring a license while inactive. “Involuntary inactive” is a distinct status generally associated with renewal or registration failures, so it should not be used to describe the normal initial inactive issuance.
3. How many members does the Florida Real Estate Commission consist of, and what is the required composition?
- A. 5 members: 3 licensed brokers and 2 consumer members
- B. 7 members: 4 licensed brokers, 1 licensed sales associate, and 2 consumer members ✓
- C. 9 members: 6 licensed brokers and 3 consumer members
- D. 7 members: 5 licensed brokers and 2 consumer members
Under Florida Statutes section 475.02, FREC consists of 7 members appointed by the Governor: 4 licensed real estate brokers who have held active licenses for the required period, 1 additional member who must be either a licensed broker or licensed sales associate, and 2 consumer members who have never been licensed as brokers or sales associates. The provided option is the closest, but it is not fully accurate because the fifth licensee is not required to be a sales associate.
4. A Florida real estate sales associate who fails to complete the required post-license education before the end of their first renewal period will have their license:
- A. Placed on voluntary inactive status automatically
- B. Suspended for 90 days pending late completion
- C. Null and void as if the license had never been issued ✓
- D. Revoked subject to a formal hearing before FREC
Under Section 475.17, Florida Statutes, if a sales associate fails to complete the 45-hour post-license course before the end of their initial license period, the license becomes null and void — not suspended or revoked — as if it had never been issued. The licensee would have to re-qualify for licensure from the beginning.
5. Under Florida law, which of the following acts requires a real estate license?
- A. An owner selling their own property and receiving compensation
- B. A property manager hired directly by an owner to manage a single property for a salary
- C. A person who, for compensation, lists the property of others for sale ✓
- D. An attorney who handles a real estate closing for a client as part of legal representation
Section 475.01, Florida Statutes, defines acts requiring a license to include listing, selling, buying, or leasing real property for another person and for compensation or valuable consideration. Owners selling their own property, salaried employees of owners, and attorneys acting within their legal practice are among the statutory exemptions.
6. A Florida broker's license is renewed on a two-year cycle. What is the total number of continuing education hours a broker must complete each renewal period?
- A. 14 hours, including a required 3-hour core law course ✓
- B. 28 hours, with no mandatory subject requirements
- C. 14 hours, of which all 14 may be elective
- D. 20 hours, including a mandatory 3-hour ethics course
Florida brokers renew on a two-year cycle and must complete 14 hours of FREC-approved continuing education for each renewal period. The 14 hours include required Florida Core Law instruction and, under current FREC rules, a required 3-hour Ethics and Business Practices course, with the remaining hours in approved specialty/elective topics.
7. Under Florida Statute Chapter 475, which of the following is a ground for which FREC may deny, suspend, or revoke a real estate license?
- A. Filing for personal bankruptcy protection under federal law
- B. Being convicted of or pleading nolo contendere to a crime of moral turpitude, regardless of adjudication ✓
- C. Allowing a listing agreement to expire without obtaining an extension
- D. Failing to attend a mandatory FREC meeting as a licensed broker
Section 475.25(1)(f), Florida Statutes, authorizes FREC to discipline a licensee who has been found guilty of, or has pled guilty or nolo contendere to, regardless of adjudication, a crime involving moral turpitude or dishonesty, fraud, or a violation of Chapter 475. Bankruptcy is not a disciplinary ground, and there is no requirement for brokers to attend FREC meetings.
8. A licensed Florida sales associate wishes to operate as an independent contractor and receive real estate compensation directly from buyers and sellers. Under Florida law, this is:
- A. Permissible if the sales associate holds an active license and files a DBPR independent contractor notice
- B. Permissible only if the sales associate has held a license for more than two years
- C. Not permissible; a sales associate may only be compensated through their registered broker ✓
- D. Permissible if the sales associate maintains an escrow account with a Florida bank
Under Section 475.42(1)(d), Florida Statutes, it is unlawful for a sales associate to collect any money in connection with a real estate transaction except in the name of the employer (the registered broker). All compensation must flow through the broker; direct compensation to a sales associate from a principal is prohibited regardless of independent contractor tax status.
9. Under FREC rules, when a complaint is filed against a Florida licensee, the initial determination of whether the complaint is legally sufficient is made by:
- A. The full seven-member FREC board in a public meeting
- B. The Secretary of the DBPR or their designee ✓
- C. The Division of Administrative Hearings (DOAH) administrative law judge
- D. A probable cause panel of at least two FREC members
Under Florida Statutes section 455.225, the Department determines whether a complaint is legally sufficient before an investigation proceeds. After investigation, a probable cause panel reviews the matter to decide whether probable cause exists to file formal administrative charges. DOAH becomes involved only later if formal charges are disputed.
10. Which of the following individuals is exempt from Florida real estate licensing requirements under Chapter 475, Florida Statutes?
- A. A licensed mortgage broker who also negotiates leases for compensation
- B. A property manager who, for a fee, rents units in a condominium complex owned by multiple different owners
- C. A cemetery company employee selling burial lots who is paid by salary with no transaction-based commission ✓
- D. A person who advertises rental properties online and charges a referral fee for each lease signed
Section 475.011, Florida Statutes, exempts certain persons including employees of cemetery companies who sell burial lots or mausoleum space and are compensated solely by salary (not commissions). A property manager handling multiple owners' units for fees, a mortgage broker negotiating leases, and online referral fee arrangements for rentals all require a Florida real estate license.