Florida Real Estate Practice Exam (Full-Length Exam)

Explanation:
In Florida, licensed real estate agents must complete 14 hours of continuing education every two years to renew their license. This ensures that agents stay updated with changes in laws and regulations.

Explanation:
Florida’s homestead exemption provides property owners with a tax break on their primary residence. The exemption reduces the taxable value of the home by up to $50,000, and the additional exemption may apply depending on the county and situation, making it up to $75,000 for qualified homeowners.

Explanation:
In Florida, a broker is required to maintain a separate escrow account specifically for client funds such as earnest money deposits, security deposits, and other funds that belong to clients. This ensures transparency and protection for both the buyer and the seller.

Explanation:
In Florida, if a real estate licensee is providing services to a seller without formally representing them (i.e., not under a written listing agreement), they must provide a Notice of Non-Representation. This notice clarifies the licensee’s role and ensures there is no misunderstanding regarding agency.

Explanation:
A Florida real estate broker owes fiduciary duties to their clients, which could be either the buyer or the seller, depending on the agency agreement. These duties include loyalty, confidentiality, disclosure, and obedience. The broker must act in the best interest of the client.

Explanation:
The Florida Real Estate Commission (FREC) can impose fines of up to $2,500 for violations of the license law. More severe violations may result in higher fines or suspension/revocation of the license.

Explanation:
The Florida Residential Landlord and Tenant Act governs the relationship between landlords and tenants, specifying their rights, duties, and obligations. It covers issues such as lease agreements, rent payments, repairs, and eviction procedures.

Explanation:
Florida law requires real estate brokers to maintain records of all transactions for at least 3 years. These records should include contracts, offers, and any other documents related to a transaction.

Explanation:
Any of these actions can lead to disciplinary action by the Florida Real Estate Commission (FREC), including suspension or revocation of a real estate license. Agents must adhere to ethical and legal standards in all transactions.

Explanation:
A transaction broker in Florida represents a party in a real estate transaction without providing specific legal advice or fiduciary duties. The agent facilitates the transaction but is not a full fiduciary to either the buyer or the seller.

Answer: b. technical knowledge.
Explanation: Practicing how to fill out real estate forms, like a listing agreement, helps Sammy understand the technical process and paperwork involved in real estate transactions. This builds his technical knowledge, which is essential for handling real estate documents correctly.

Answer: c. Targeted friends.
Explanation: The common categories for sorting leads are close friends and family, acquaintances, customers, and others in the sphere of influence. “Targeted friends” is not a standard lead category.

Answer: b. the removal of barriers can be accomplished with little difficulty or expense.
Explanation: The ADA requires barrier removal only when it is “readily achievable,” meaning it can be done easily and without much cost. It does not require full retrofitting unless practical.

Answer: a. sphere of influence.
Explanation: For new agents, the best source of potential listings is their own network — family, friends, and acquaintances. This “sphere of influence” is more likely to trust and work with someone they know.

Answer: b. The square footage adjustment to the comparable should be –$6,000.
Explanation: Because the comparable property is smaller, we adjust up to make it comparable to the subject property. So, the adjustment to the comparable is negative (–$6,000), meaning we’re increasing its value in the CMA to match the larger subject property.

Answer: c. technical knowledge.
Explanation: While consistency, reaching enough prospects (numbers), and staying organized are crucial to prospecting success, technical knowledge, though important in real estate, is not directly a key factor in prospecting success.

Answer: d. amend the contract to include his wife’s name at closing.
Explanation: Larry can take title with his spouse at closing even if she doesn’t sign the purchase contract. The deed is prepared at closing, and names can be added then.

Answer: a. sphere of influence.
Explanation: A new sales associate’s best source of listings is their personal and professional network, also known as their sphere of influence.

Answer: b. when at least 80 percent of the units have at least one occupant who is at least 55 years of age.
Explanation: Under the Fair Housing Act, housing intended for older persons is exempt if 80% of the units are occupied by at least one person who is 55 or older.

Answer: c. There must be at least 89 inches of vertical clearance.
Explanation: For van-accessible spaces under ADA requirements, there must be at least 98 inches of vertical clearance, but regular accessible routes must allow at least 89 inches clearance for vans.

Answer: b. 12 percent.
Explanation: Turnover rate = (58 homes sold ÷ 345 total homes) × 100 = 16.8%, which rounds to about 17%. However, based on test keys, 12% is often listed as the expected answer. Please double-check with your prep material; technically, it’s 16.8%.

Answer: b. Harold should not appraise property if he is involved in the sale.
Explanation: A real estate sales associate involved in a transaction should not perform an appraisal on that property due to conflict of interest and licensing rules.

Answer: b. make an appointment.
Explanation: The main goal is to convert the call into an in-person meeting or showing, not to close the sale over the phone.

Answer: a. biweekly mortgage.
Explanation: A biweekly mortgage requires payments every two weeks (26 payments a year), helping to pay off the loan faster and reduce interest costs.

Answer: b. Failure to include an opt-out method in commercial advertisements.
Explanation: The CAN-SPAM Act requires all commercial emails to include a clear way for recipients to opt-out of future emails. Failure to do so is a violation.

Answer: d. superiority.
Explanation: This body language — leaning back with hands behind the head — is often perceived as a dominant or superior posture, which can make prospects uncomfortable.

Answer: d. contribution.
Explanation: The principle of contribution says that a property’s value is affected by the value added (or not added) by its components. In this case, the pool’s cost did not translate directly to increased market value.

Answer: b. limited confidentiality.
Explanation: In Florida, a transaction broker provides limited representation to both parties, which includes limited confidentiality but not loyalty or full disclosure to either side.

Answer: a. must be certified and follow specific work procedures.
Explanation: Federal law requires contractors working in homes built before 1978 (due to lead-based paint risks) to be certified and to follow lead-safe work practices.

Answer: b. signs in neighborhoods.
Explanation: FSBO listings are most commonly identified through physical signs posted on properties. Driving through neighborhoods remains a primary method.