Florida · state portion

Free Florida Real Estate Brokerage Activities and Procedures practice questions

10 original questions with full explanations. 12 of the 100 scored exam questions (about 12%) come from this area.

1. 1

   A sales associate wants to advertise their team. What is required for team advertising?

   • A. The team name only
   • B. No advertising is allowed for teams
   • C. The sales associate's name only
   • D. The brokerage name and the team name
   Show answer & explanation

   Answer: D

   Team advertising requires the brokerage name and the team name.

2. 2

   What is the role of the sales associate in a brokerage?

   • A. To supervise other sales associates
   • B. To manage the brokerage
   • C. To make policy decisions for the brokerage
   • D. To work under the supervision of a broker or owner-developer
   Show answer & explanation

   Answer: D

   A sales associate works under the supervision of a broker or owner-developer.

3. 3

   How long must a brokerage firm retain records of real estate transactions?

   • A. 1 year
   • B. 3 years
   • C. 7 years
   • D. 5 years
   Show answer & explanation

   Answer: D

   A brokerage firm must retain records of real estate transactions for 5 years, as required by Florida law.

4. 4

   A broker has an office in a residential area and wants to put up a sign. What is the requirement for the sign?

   • A. The sign must be at least 10 feet tall
   • B. The sign must be at least 5 feet wide
   • C. The sign must be approved by the homeowners' association
   • D. The sign must have the broker's name and contact information
   Show answer & explanation

   Answer: D

   The sign must have the broker's name and contact information to comply with Florida's office and sign requirements.

5. 5

   What happens if a broker complies with an Escrow Disbursement Order and later suffers a judgment?

   • A. The broker is reimbursed from the Real Estate Recovery Fund and faces disciplinary action
   • B. The broker faces disciplinary action only
   • C. The broker is not reimbursed
   • D. The broker is reimbursed from the Real Estate Recovery Fund without disciplinary action
   Show answer & explanation

   Answer: D

   The broker is reimbursed from the Real Estate Recovery Fund without disciplinary action for complying with an Escrow Disbursement Order.

6. 6

   What is the consequence of a sales associate engaging in unlicensed practice in Florida?

   • A. A fine of up to $1,000
   • B. A suspension of their license for up to 1 year
   • C. A warning from the brokerage firm
   • D. A third-degree felony charge
   Show answer & explanation

   Answer: D

   Unlicensed practice is a third-degree felony in Florida, emphasizing the seriousness of practicing real estate without a license.

7. 7

   A brokerage firm has a dispute over an escrow deposit and receives conflicting demands from the buyer and seller. What is the first step the broker should take?

   • A. File a lawsuit
   • B. Request an Escrow Disbursement Order from FREC
   • C. Mediate the dispute
   • D. Notify FREC of the conflicting demands
   Show answer & explanation

   Answer: D

   The broker should notify FREC of the conflicting demands, then proceed with one of the four settlement procedures: mediation, arbitration, litigation, or requesting an Escrow Disbursement Order.

8. 8

   A brokerage firm is having a dispute over an escrow account. What is the first step in resolving the dispute?

   • A. File a lawsuit
   • B. Request an Escrow Disbursement Order from FREC
   • C. Mediate the dispute
   • D. Notify FREC of conflicting demands
   Show answer & explanation

   Answer: D

   The first step in resolving an escrow dispute is to notify FREC of conflicting demands.

9. 9

   A broker has a dispute over an escrow deposit and receives conflicting demands from the buyer and seller. What should the broker do first?

   • A. File a lawsuit
   • B. Arbitrate the dispute
   • C. Mediate the dispute
   • D. Notify FREC of the conflicting demands
   Show answer & explanation

   Answer: D

   The broker should notify FREC of the conflicting demands, then proceed with mediation, arbitration, litigation, or an Escrow Disbursement Order.

10. 10

    A sales associate offers to pay a friend a referral fee for bringing in a client. Is this permissible?

    • A. Yes, as long as the friend is not licensed
    • B. Yes, as long as the broker approves
    • C. No, because the friend must be a licensed broker
    • D. No, because only licensed brokers and sales associates can receive compensation
    Show answer & explanation

    Answer: D

    Only licensed brokers and sales associates can receive compensation for real estate services.