Authorized Relationships: Free Florida Real Estate Practice Questions

1. 1. Under F.S. 475.278, when a real estate licensee begins working with a buyer or seller and no written brokerage relationship agreement has been established, Florida law presumes the relationship to be:

   • A) Transaction broker -- a non-fiduciary, limited representational role
   • B) Single agent -- a full fiduciary representing the party's interests
   • C) Dual agent -- representing both buyer and seller simultaneously
   • D) No brokerage relationship -- the licensee owes no duties to either party
   Show answer & explanationHide answer

   Correct answer: A) Transaction broker -- a non-fiduciary, limited representational role

   F.S. 475.278 establishes transaction broker as the default brokerage relationship in Florida when no other relationship has been agreed upon in writing. In a transaction broker relationship, the licensee is a neutral facilitator who assists both parties but is not a fiduciary to either. Florida does not recognize traditional dual agency; the transaction broker relationship is the permitted alternative when a licensee assists both parties in the same transaction.

2. 2. A broker holds a written single agent agreement with a seller. The broker's office also brings a buyer interested in the same property. To lawfully assist both parties in the same transaction, the broker must:

   • A) Automatically become a transaction broker the moment the buyer enters the property
   • B) Continue acting as a single agent to both parties simultaneously, which Florida law permits
   • C) Withdraw entirely from the transaction; a broker can never assist both parties in any capacity
   • D) Obtain the seller's prior written consent to transition from single agent to transaction broker before assisting the buyer
   Show answer & explanationHide answer

   Correct answer: D) Obtain the seller's prior written consent to transition from single agent to transaction broker before assisting the buyer

   Florida law permits a broker to transition from a single agent relationship to a transaction broker relationship, but only with the client's prior written consent. The broker must present the seller with a written transition disclosure and obtain a signed acknowledgment before beginning to assist the buyer. Automatic conversion is not permitted, and traditional dual agency (acting as a fiduciary to both parties) is not recognized in Florida. The seller has the right to decline the transition.

3. 3. A sales associate knows that a home is located in a FEMA Special Flood Hazard Area but tells a prospective buyer it is not, wanting to close the sale quickly and earn a commission. This conduct is best characterized as:

   • A) Fraudulent misrepresentation, because the associate knowingly made a false statement of material fact intending the buyer to rely on it
   • B) Negligent misrepresentation, because the associate failed to verify the flood zone status
   • C) Puffing, because flood zone status is a regulatory classification rather than a fact
   • D) An innocent error that the associate can cure by rescinding the transaction
   Show answer & explanationHide answer

   Correct answer: A) Fraudulent misrepresentation, because the associate knowingly made a false statement of material fact intending the buyer to rely on it

   Fraudulent misrepresentation requires a false statement of material fact, knowledge of its falsity (or reckless disregard), intent to induce the other party's reliance, and resulting damages -- all of which are present here. Flood zone designation is a specific, verifiable material fact, not an opinion. This conduct exposes the associate to civil liability, FREC disciplinary action up to and including revocation, and potential criminal charges. Puffing involves vague, subjective opinions, not specific false factual claims.

4. 4. A sales associate employed by a broker makes a negligent misrepresentation to a buyer about a property's square footage. Who may be subject to civil liability and FREC disciplinary action as a result?

   • A) Only the sales associate, since the broker had no personal knowledge of the error
   • B) Only the broker, since sales associates cannot be sued individually
   • C) Neither party, since negligent (unintentional) misrepresentation is not actionable in Florida
   • D) Both the sales associate and the broker -- the associate as the direct wrongdoer, and the broker for the associate's acts within the scope of employment
   Show answer & explanationHide answer

   Correct answer: D) Both the sales associate and the broker -- the associate as the direct wrongdoer, and the broker for the associate's acts within the scope of employment

   Under the doctrine of respondeat superior, a broker may be vicariously liable for the wrongful acts of sales associates performed within the scope of their employment. Both the associate (as the direct wrongdoer) and the employing broker may face civil liability and FREC disciplinary action. Florida law specifically imposes supervisory responsibility on brokers; failure to supervise is an independent violation. Negligent misrepresentation is fully actionable -- neither intent nor knowledge of falsity is required.

5. 5. A sales associate currently registered under Broker A wants to begin working for Broker B while completing a few pending transactions for Broker A. Can the associate be registered under both brokers simultaneously?

   • A) Yes, provided both brokers give written consent
   • B) Yes, but only if the two brokerages are in different counties or markets
   • C) Yes, as long as the associate discloses the dual registration to all clients
   • D) No -- a Florida sales associate may only be employed by and registered under one active broker at a time
   Show answer & explanationHide answer

   Correct answer: D) No -- a Florida sales associate may only be employed by and registered under one active broker at a time

   Florida law requires every sales associate to be registered under and employed by exactly one active, licensed broker at a time. Holding registrations under two brokers simultaneously is prohibited and would expose the associate and both brokers to FREC disciplinary action. To change employers, the associate must end the relationship with the current broker, causing the license to become involuntarily inactive, and then register under the new broker. Pending transactions must be resolved or transferred in accordance with the broker's policy.

6. 6. Traditional dual agency -- in which a broker represents both the buyer and seller as a fiduciary to each in the same transaction -- is:

   • A) Legal in Florida with written informed consent from both the buyer and the seller
   • B) Not recognized in Florida; the transaction broker relationship is the lawful alternative when a licensee assists both parties
   • C) Legal in Florida for commercial transactions only; residential transactions require a single agent
   • D) Required by FREC whenever a broker lists a property and also represents the buyer
   Show answer & explanationHide answer

   Correct answer: B) Not recognized in Florida; the transaction broker relationship is the lawful alternative when a licensee assists both parties

   Florida real estate law does not recognize dual agency as a fiduciary relationship. When a broker would otherwise be in a position of representing both parties, the appropriate arrangement is the transaction broker relationship -- a non-fiduciary, facilitative role. This distinguishes Florida from many other states that permit disclosed dual agency. A Florida broker who attempts to act as a fiduciary to both parties in the same transaction is acting outside the bounds of state law.

Not affiliated with Pearson VUE, the Florida DBPR, or FREC. This is an independent study tool; questions are original and verified against Florida statutes and FREC rules.