Chapter 2

Question 1

Industries that rely on real estate:

Answer 1

S&Ls
• Mortgage broker and mortgage bankers
• Appraisers and appraisal trainees
• Auctioneer enterprises
• Drywall installers
• Earth-moving specialists
• Signage manufacturers and installers
• Carpet suppliers and carpet installers
• Window and door manufacturers
• Appliance wholesalers and appliance retailers
• Fencing manufacturers
• Landscapers
• Security professionals
• Electricians
• Plumbers and sheet metalworkers

Question 2

A real estate brokerage company

Answer 2

is a business established to connect interested parties who want to sell, lease, rent, or exchange real estate.

Question 3

A sales associate

Answer 3

works under the supervision of the broker to offer real estate services to prospective buyers, sellers, and renters, depending on their needs.

Question 4

The broker

Answer 4

who has more experience and additional education, performs as an agent or an intermediary between two (or more) parties during the negotiation of the sale, purchase, or lease
of real property.

Question 5

Real Estate Commission

Answer 5

Florida Real Estate Commission began
enforcing and administering the real estate law.
The Florida Real Estate Commission was created to protect the public. Nearly 100 years later, it
continues to do so.

Question 6

Chapter 475 of the Florida Statutes

Answer 6

is required to register with the Department of Business and Professional Regulation (DBPR) to secure an appropriate license to facilitate real estate transactions for compensation.

Question 7

Broker Pre-License Course

Answer 7

All applicants are required to take the Florida pre-licensing course. The pre-licensing course,
which is called FREC II, covers 72 classroom hours of 50 minutes each, and the course must be
approved by the Florida Real Estate Commission (FREC). The course content includes the basics
and fundamental knowledge regarding real estate brokerage management and operations, closing
statements, real estate appraising, and real estate financing, to name only a few of the topics.
You pass the Florida broker’s pre-license final exam with a score of 70% or higher.

Question 8

State Licensure Examination

Answer 8

The content included in the broker’s exam requires you to demonstrate you have the knowledge
and understanding of how to apply real estate law, principles, and practices of real estate in the
state of Florida. More specifically, you will be tested on real estate financing, real estate appraising,
brokerage management and operations, investments, and real estate math. Questions break down
as follows:
• 43% of the questions relate to running a real estate brokerage business;
• 9% of the questions relate to property valuation;
• 6% of the questions relate to listing/selling real property;
• 11% of the questions relate to contracts;
• 4% of the questions are related to financing;
• 12% of the questions relate to closing real estate transactions; and
• 15% of the questions relate to federal income tax laws, investment, zoning and planning,
environmental issues, property management, and the real estate market.
A passing score on the final exam of the Florida broker’s state exam is 75% or higher

Students who fail the examination receive a score report that includes the numeric score, diagnostic
information, plus information regarding the steps to take to re-test. Students who want to retake
the test must wait at least one day before scheduling a re-test.