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Florida Real Estate Brokerage Activities and Procedures — Printable Practice Pack
Florida state portion · Chapter 475 F.S., Rule 61J2 and Florida's transaction-broker relationships · 20 questions · Answer key on the last page · agentexamcoach.com
1.A broker is holding an escrow deposit and receives conflicting demands from the buyer and seller. What is the first step the broker must take?
(A)Deposit the funds into the court registry
(B)File a lawsuit to resolve the dispute
(C)Attempt to mediate the dispute
(D)Notify FREC of the conflicting demands
2.A broker is offering a referral fee to an unlicensed individual. Is this allowed?
(A)Yes, as long as the referral fee is less than $100
(B)Yes, as long as the unlicensed individual is a family member
(C)No, because it is considered a kickback
(D)No, because it is considered an unlicensed compensation
3.A broker is involved in an escrow dispute and wants to resolve it quickly. What is the fastest way to resolve the dispute?
(A)Mediation
(B)Arbitration
(C)Litigation
(D)Escrow Disbursement Order from FREC
4.A broker is involved in a dispute over an escrow deposit and has received an Escrow Disbursement Order from FREC. What happens if the broker complies with the order but later suffers a judgment?
(A)The broker is reimbursed from the Real Estate Recovery Fund and faces disciplinary action
(B)The broker is not reimbursed and does not face disciplinary action
(C)The broker is not reimbursed and faces disciplinary action
(D)The broker is reimbursed from the Real Estate Recovery Fund without disciplinary action
5.A sales associate is leaving a brokerage firm and wants to take their client list with them. What is the proper procedure?
(A)Take the list without permission
(B)Ask the broker for permission
(C)Pay a fee to the broker for the list
(D)None of the above
6.A sales associate is working with a buyer and receives a commission from the seller. Who is responsible for paying the sales associate's commission?
(A)The buyer
(B)The seller
(C)The sales associate themselves
(D)The brokerage firm
7.What is the role of a sales associate in a brokerage firm?
(A)To supervise other sales associates
(B)To manage the brokerage firm
(C)To handle all aspects of a transaction without supervision
(D)To act as an agent for the buyer or seller under the supervision of a broker
8.A broker is found to have complied with an Escrow Disbursement Order but later suffers a judgment. What is the consequence?
(A)The broker is subject to disciplinary action
(B)The broker is exempt from the judgment
(C)The broker is required to pay the judgment out of pocket
(D)The broker is reimbursed from the Real Estate Recovery Fund without disciplinary action
9.A broker is required to deposit an escrow check into the brokerage account by the end of which business day?
(A)Same business day
(B)Next business day
(C)Fifth business day
(D)Third business day
10.A broker is involved in an escrow dispute. 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
11.A broker is involved in a dispute over an escrow account. What is the final step in resolving the dispute if mediation and arbitration are unsuccessful?
(A)File a lawsuit
(B)Request an Escrow Disbursement Order from FREC
(C)Mediate the dispute again
(D)Arbitrate the dispute again
12.A sales associate receives a deposit check from a buyer. What is the deadline for delivering it to the broker?
(A)End of the same business day
(B)End of the week
(C)End of the third business day
(D)End of the next business day
13.What is the role of the broker in a brokerage?
(A)To act as a sales associate only
(B)To provide only administrative support
(C)To handle all client transactions
(D)To supervise sales associates and manage the brokerage
14.A sales associate receives a buyer's deposit check on a Friday. By when must the associate deliver the check to the broker?
(A)End of the next business day
(B)End of the third business day
(C)End of the week
(D)End of the month
15.A broker is required to retain records for how many years?
(A)3 years
(B)10 years
(C)7 years
(D)5 years
16.A broker is placing a sign on a property. What is required to be on the sign?
(A)The broker's name and contact information
(B)The sales associate's name and contact information
(C)The property owner's name and contact information
(D)The listing price and property details
17.A broker has a dispute over an escrow deposit and receives conflicting demands from the buyer and seller. What must the broker do first?
(A)File a lawsuit
(B)Request an Escrow Disbursement Order from FREC
(C)Mediate the dispute
(D)Notify FREC of the conflicting demands
18.A broker offers a sales associate a commission for referring a client. Is this allowed?
(A)Yes, as long as the sales associate is licensed
(B)No, because it is a kickback
(C)Yes, as long as the client is aware of the referral fee
(D)No, because the sales associate must be a broker to receive a commission
19.A sales associate wants to advertise their services on social media. What is required in the advertisement?
(A)The sales associate's personal phone number
(B)A statement that they are not a broker
(C)The sales associate's license number
(D)The brokerage's name
20.What is required for a brokerage team to advertise under a team name?
(A)The team name must be registered with FREC
(B)The team must have a separate brokerage license
(C)The team members must be licensed brokers
(D)The brokerage name must be included in the advertisement
Answer key & explanations
1. D — The broker must notify FREC of the conflicting demands, then proceed with one of the four settlement procedures: mediation, arbitration, litigation, or an Escrow Disbursement Order.
2. D — Offering a referral fee to an unlicensed individual is considered an unlicensed compensation and is not allowed.
3. A — Mediation is often the fastest way to resolve an escrow dispute, as it involves a neutral third-party facilitator to help the parties reach an agreement.
4. D — The broker is reimbursed from the Real Estate Recovery Fund without disciplinary action, as long as the broker complied with the Escrow Disbursement Order.
5. B — The sales associate should ask the broker for permission to take the client list.
6. D — The brokerage firm is responsible for paying the sales associate's commission, although it is typically paid from the seller's funds.
7. D — A sales associate acts as an agent for the buyer or seller under the supervision of a broker.
8. D — The broker is reimbursed from the Real Estate Recovery Fund without disciplinary action, as provided by Florida law, to protect brokers who comply with Escrow Disbursement Orders.
9. D — The broker must deposit the escrow check into the brokerage account by the end of the third business day.
10. D — The first step in resolving an escrow dispute is to notify FREC of conflicting demands.
11. A — If mediation and arbitration are unsuccessful, the final step is to file a lawsuit to resolve the dispute.
12. D — The sales associate must deliver the deposit to the broker by the end of the next business day.
13. D — The broker supervises sales associates and manages the brokerage.
14. A — The sales associate must deliver the deposit to the broker by the end of the next business day, which in this case would be Monday.
15. D — The broker is required to retain records for 5 years, as required by Florida law.
16. A — The broker's name and contact information must be on the sign, as per Florida sign requirements.
17. D — The broker must notify FREC of the conflicting demands before pursuing other settlement procedures.
18. A — Brokers can offer commissions to sales associates for referring clients, as long as the sales associate is licensed.
19. D — The brokerage's name is required in the advertisement to comply with Florida advertising rules.
20. D — The brokerage name must be included in the advertisement to avoid a blind ad.
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