Free Florida Real Estate Practice Exam

Q1.According to EPA guidelines, which action regarding underground storage tanks (USTs) is required for real estate professionals when representing clients in commercial property transactions?

• A.Advising clients to investigate potential environmental liabilities associated with USTs
• B.Conducting soil contamination testing on all properties with current or former USTs
• C.Obtaining EPA permits for any existing USTs on the property
• D.Removing all USTs before completing the transaction

Q2.The Truth-in-Lending Act (TILA) requires disclosure of the Annual Percentage Rate (APR) for which types of transactions?

• A.Consumer credit transactions secured by real estate
• B.Commercial loans only
• C.Cash transactions only
• D.Business credit lines only

Q3.A home in Alachua County has a just (market) value of $320,000. The owner qualifies for the standard $25,000 homestead exemption and the additional $25,000 homestead exemption that applies to assessed values between $50,000 and $75,000. The Save Our Homes cap has reduced the assessed value to $290,000. The county millage rate is 10 mills. What is the owner's ad valorem tax bill?

• A.$2,400
• B.$2,650
• C.$2,900
• D.$3,200

Q4.A real estate licensing board discovers that a broker failed to provide required RESPA disclosures to buyers. Which federal agency should the board notify of this potential violation?

• A.Department of Housing and Urban Development (HUD)
• B.Federal Trade Commission (FTC)
• C.Consumer Financial Protection Bureau (CFPB)
• D.Environmental Protection Agency (EPA)

Q5.A broker's salesperson submits an offer on behalf of a buyer that includes a financing contingency. The lender subsequently denies the buyer's loan application, in part, because the buyer is pregnant. The buyer believes the denial was discriminatory. Which federal law would provide the buyer with a potential cause of action against the lender?

• A.The Equal Credit Opportunity Act (ECOA)
• B.The Fair Housing Act (FHA)
• C.The Truth in Lending Act (TILA)
• D.The Real Estate Settlement Procedures Act (RESPA)

Q6.Under the Florida Residential Sale and Purchase Contract (FAR/BAR AS IS contract), a buyer submits an offer with a three-day inspection period. The seller accepts. On day two, the buyer's inspector discovers significant roof damage. The buyer wishes to cancel the contract and recover the earnest money deposit. Which of the following best describes the buyer's rights under the AS IS contract?

• A.The buyer may cancel only if the repair costs exceed a specific dollar threshold stated in the contract.
• B.The buyer may cancel for any reason or no reason during the inspection period and is entitled to return of the deposit.
• C.The buyer must first present the repair findings to the seller and give the seller an opportunity to cure before canceling.
• D.The buyer may cancel, but the seller retains half the deposit as liquidated damages for the inspector's access to the property.

Q7.Under the Fair Housing Act (42 U.S.C. § 3604), sex was added as a protected class in what year?

• A.1968
• B.1974
• C.1988
• D.2016

Q8.Under the Federal Fair Housing Act, which of the following is NOT a protected class?

• A.National origin
• B.Familial status
• C.Sexual orientation
• D.Religion

Q9.A broker is managing a commercial property and discovers during due diligence that underground storage tanks (USTs) on the site likely contain petroleum residue from a former dry-cleaning operation. The prospective buyer asks the broker whether the broker must disclose this finding even though the buyer has not yet signed a buyer-representation agreement. Under CERCLA (42 U.S.C. § 9601 et seq.) and general broker liability principles, what is the broker's most legally defensible course of action?

• A.Disclose the known material fact about potential contamination to the prospective buyer regardless of agency status, and recommend the buyer obtain an independent Phase I Environmental Site Assessment before proceeding
• B.Withhold the information until a buyer-representation agreement is signed, because the broker owes fiduciary duties only to clients, not prospects
• C.Disclose only to the listing client and allow the listing client to decide whether to share the information with the prospective buyer
• D.Report the contamination directly to the EPA and take no further action until regulatory clearance is received, because CERCLA reporting supersedes all real estate disclosure duties

Q10.Under RESPA's affiliated business arrangement (ABA) disclosure requirements, when must a real estate brokerage provide the required written disclosure if they refer clients to their affiliated mortgage company?

• A.Within three business days after the mortgage application is submitted
• B.No later than the delivery of the Loan Estimate to the borrower
• C.At the time of the referral or when the referral is first discussed
• D.At closing when all settlement service providers are disclosed

Q11.Under Florida's Mortgage Brokerage and Lending Act, what is the minimum net worth requirement for a mortgage lender license?

• A.$25,000
• B.$50,000
• C.$100,000
• D.$250,000

Q12.A Florida licensed broker discovers during a monthly escrow reconciliation that the trust account ledger balance, the checkbook balance, and the bank statement balance are all in agreement at $47,500, but the broker also notices that a $2,000 earnest money deposit received three days ago has not yet been deposited. Under Florida Statute §475.25(1)(k) and FREC Rule 61J2-14.010, what is the broker's maximum allowable time frame for depositing this earnest money, and what is the consequence of missing that deadline?

• A.The deposit must be made in 'immediately' (by the end of the third business day following receipt), and failure to comply is a violation of F.S. §475.25(1)(k) that can result in administrative discipline including suspension or revocation.
• B.The deposit must be made within five calendar days of receipt under FREC rules, and a single late deposit triggers automatic license revocation.
• C.The broker has ten business days to deposit earnest money as long as the purchase contract specifies a delayed-deposit clause signed by both parties.
• D.Because the reconciliation already balances, no violation exists; the three-day-old deposit can be held outside the trust account until closing without penalty.

Q13.Which of the following duties is owed by a Florida transaction broker to both the buyer and the seller, but is NOT a duty owed under a no-brokerage (nonrepresentation) relationship, according to F.S. 475.278?

• A.Disclosing all known facts that materially affect the value of residential real property
• B.Using skill, care, and diligence in the transaction
• C.Presenting all offers and counteroffers in a timely manner
• D.Accounting for all funds entrusted to the licensee

Q14.A seller in Florida discovers that the roof of his home has an active leak that has caused hidden water damage behind the walls. The seller does not mention this to the buyer, and the buyer purchases the home. After closing, the buyer discovers the damage. Under the principle established in Johnson v. Davis, which of the following best describes the seller's legal obligation that was violated?

• A.The seller was required to disclose all facts that materially affect the value of the property and are not readily observable or known to the buyer.
• B.The seller was only required to disclose defects if the buyer submitted a written request for a property condition report prior to closing.
• C.The seller had no duty to disclose because Florida follows a strict 'caveat emptor' (buyer beware) doctrine for residential real estate.
• D.The seller was required to disclose only those defects identified during a licensed home inspector's report.

Q15.A licensee is listing a home built in 1975. Under federal law, which of the following actions is the seller's agent REQUIRED to take regarding lead-based paint?

• A.Hire a certified lead inspector to test the property before listing it for sale.
• B.Provide buyers with the EPA pamphlet 'Protect Your Family from Lead in Your Home' and disclose any known lead-based paint hazards, allowing a 10-day inspection period.
• C.Disclose the presence of lead-based paint only if the property is being sold to a family with children under age 6.
• D.File a lead-based paint disclosure form with the Florida DBPR within 15 days of listing.