Florida Real Estate Exam Cheat Sheet

The 1-3-15-30 Escrow Rule

• 1Sales associate → broker: by the end of the next business day after receiving funds (Saturdays, Sundays, and legal holidays excluded). Rule 61J2-14.009
• 3Broker → escrow account: by the end of the third business day from the date the associate delivers the funds (Saturdays, Sundays, and legal holidays excluded). Rule 61J2-14.008(3)
• 15Broker notifies FREC of conflicting demands: within 15 business days of receiving the last party's written demand. Rule 61J2-10.032(1)(a)
• 30Broker institutes settlement procedure (EDO, interpleader, arbitration, or mediation): within 30 business days of receiving the last party's demand. F.S. 475.25

Documentary Stamp Tax Rates

Fractional amounts are always rounded up to the next $100. The $2,450 cap on note stamps applies at a loan amount of $700,000.

Cancellation & Rescission Periods

Investment and Appraisal Formulas

• GRM = Sale Price ÷ Annual Gross Rent

  Used to estimate value from rental income.

• Cap Rate = NOI ÷ Property Value

  Measures return on total property value regardless of financing.

• NOI = PGI − Vacancy and Collection Loss − Operating Expenses

  Calculated before debt service. Mortgage payments are not an operating expense.

• Cash-on-Cash Return = Annual Pre-Tax Cash Flow ÷ Total Cash Invested

  Measures return on actual equity invested.

• Proration = Annual Amount ÷ 365 × Number of Days

  Florida exams use a 365-day year unless the problem specifies a 360-day banker's year.

License Law Quick Reference

Florida Homestead Exemption

• ›First $25,000: applies to all taxing authorities including school districts (F.S. 196.031)
• ›Second $25,000: applies to non-school taxing authorities only, for assessed values between $50,000 and $75,000 (F.S. 196.031)
• ›Beginning 2025 tax year: the second $25,000 tranche is adjusted annually for CPI inflation under Amendment 5 (approved November 2024). The adjustment applies only when CPI is positive; the tranche can never fall below $25,000.
• ›Save Our Homes (SOH) cap: annual assessment increase limited to the lesser of 3% or the CPI change (Art. VII §4(c) Fla. Const.)
• ›SOH portability: up to $500,000 of accumulated benefit is transferable to a new homestead; must apply within 2 years (F.S. 193.155)
• ›Non-homestead property assessment cap: 10% per year (Art. VII §4(g) Fla. Const.)

Florida Recording Statute

• ›Florida follows a NOTICE statute under F.S. 695.01 — NOT race-notice.
• ›A subsequent bona fide purchaser for value who acquires property without actual or constructive notice of a prior unrecorded conveyance prevails over the earlier unrecorded deed.
• ›Recording first is NOT required to prevail — only lack of notice matters.
• ›A buyer who has notice of a prior unrecorded deed cannot use the recording act to defeat it, even if they record first.

Federal Law Quick Reference

• ›Lead paint disclosure: required for all residential properties built before 1978 (42 U.S.C. §4852d)
• ›FIRPTA withholding: 15% of gross sales price withheld by buyer from foreign seller. Exceptions: no withholding if buyer is an individual acquiring as a residence and price is $300,000 or less; reduced 10% rate if buyer acquires as a residence and price is $1,000,000 or less (26 U.S.C. §1445)
• ›IRC §121 exclusion: $250,000 single / $500,000 married filing jointly; must own and use as primary residence for 2 of the preceding 5 years
• ›IRC §1031 exchange deadlines: 45 days to identify replacement property; 180 days to close
• ›TRID Loan Estimate: must be delivered within 3 business days of a complete loan application (12 C.F.R. §1026.19(e))
• ›TRID Closing Disclosure: must be delivered at least 3 business days before consummation (12 C.F.R. §1026.19(f))
• ›ECOA adverse action notice: must be provided within 30 days of a completed application (15 U.S.C. §1691(d))