Exam Cheat Sheet · Quick Reference

Florida Real Estate Broker

Florida  ·  Pearson Vue

Verified, not estimated. Every figure below is drawn from the official exam structure we maintain — question counts, passing standard and topic weighting. Practice questions are grounded in the source law with statute citations. We omit any figure we can't verify rather than guess at it.
Total questions
100
Passing score
75%
Exam time
210 min
Administered by
Pearson Vue
Format
Closed-book

Florida State Portion 100 questions

Real Estate Brokerage Business 43 Q · 43%
Broker licensure: application process, mutual recognition, experience and education requirements, the examinationPost-licensing and continuing education, renewal, and sales associate license requirementsBrokerage entity registration vs. licensure, multiple licenses vs. group license, change of address, exemptionsRegistered brokerage entities: sole proprietorship, general and limited partnerships, LLPs, corporations; non-registered entitiesTrade names, the principal office and branch offices, entrance signs, and ADA requirements for the officeAdvertising: broker and agent requirements, false or misleading ads, blind ads, fair housing, telephone solicitation, rental listsCapital and start-up costs; projecting income, income sources, and operating expenses for a new brokerageTax considerations: cash vs. accrual accounting and the IRS employee vs. independent contractor testsPersonnel: licensed vs. unlicensed activities, recruitment, applications, forms, and license verificationEmployment arrangements, compensation of sales associates, and the policy and procedures manualBroker and sales manager responsibilities: training and supervision of sales associates, sales meetingsEscrow management: establishing escrow accounts, overall rules, conversion of funds, and commingling +9 more
Valuing Real Property 9 Q · 9%
Appraisal vs. comparative market analysis; USPAP and basic appraisal conceptsSales comparison approachCost-depreciation approachIncome capitalization approachComparative market analysis and the broker price opinion (BPO)Business valuationPrinciples of value: substitution, anticipation, conformity, increasing/decreasing returns, external economies and diseconomiesHighest and best use analysis: as though vacant vs. as improvedTypes of value: market value, assessed value, investment value, liquidation value, insurable value, going-concern value, salvage value, value in useDistinctions among price, cost, and valueFIRREA, The Appraisal Foundation, and appraiser certification/licensure classificationsAppraisal process steps, scope of work, effective date, and extraordinary assumptions vs. hypothetical conditions +2 more
Listing and Selling Real Property 6 Q · 6%
The concept of agency and broker dutiesDisclosure requirements at first contact for residential sales, and the exemptionsTransaction broker relationship; single agent to transaction broker transitionNo brokerage relationship; single agent relationship; designated sales associateTerminating a brokerage relationshipLegal: titles and deedsBrokerage relationship disclosure format, timing, and recordkeeping requirementsSix situations that do not create a brokerage relationship and require no disclosureMaterial fact disclosure obligations, including HIV and homicide/suicide exemptions
Contracts 11 Q · 11%
Listing agreementsEntitlement to commission: referral fees and the Commercial Real Estate Sales Commission Lien ActPurchase and sale contracts: unauthorized practice of law and the statute of fraudsDocuments for the listing contractReal estate contracts and required disclosuresOther contracts (options, leases, installment)Contract provisions: dates, time is of the essence, and closing proceduresBreach of contract remedies: liquidated damages, specific performance, and compensatory damagesContract contingencies: financing, inspection, appraisal, and sale of buyer's propertyStigmatized and psychologically impacted property disclosure rulesCommunity development district and ad valorem tax disclosures
Financing 4 Q · 4%
Mortgage concepts and practicesConventional, government-insured or guaranteed, and other mortgage loan typesOther financing techniquesFederal consumer protection legislationThe broker's role in financing and mortgage fraudFinance mathResidential loan underwriting process and borrower qualificationCredit scoring and credit history analysisLoan-to-value ratio and private mortgage insurance (PMI)Conforming vs. nonconforming loans and secondary mortgage marketForeclosure procedures and mortgage priorities in FloridaDiscount points, yield calculations, and APR +1 more
Closing Transactions 12 Q · 12%
The broker's role at closingClosing steps: deeds and titlesUnderstanding the Closing Disclosure: where each item appears and whether it is a debit or credit to buyer or sellerProrating procedures (365-day year, the day of closing), documentary stamp tax and intangible taxPreliminary closing steps and broker checklists (loan application monitoring, contingency clearance, title insurance, survey, WDO inspection)Preclosing walk-through inspection: objectives and broker liability limitsFIRPTA withholding requirements and IRS Form 1099-S reporting at closingLoan Estimate vs. Closing Disclosure: purpose, timing, and replacement of HUD-1Closing Disclosure page structure: what appears on pages 1, 4, and 5 (loan terms, projected payments, escrow account, loan calculations, contact information)Escrow account setup at closing: initial escrow payment, monthly escrow payment, and escrowed vs. non-escrowed property costsNonresidential (commercial) closings: RESPA inapplicability and due diligence distinctionsProrating homeowners association dues (annual vs. monthly, paid in advance vs. arrears) and prepaid rents and security deposits
Federal Income Tax Laws 5 Q · 5%
Taxation of the principal residenceSale of the principal residence and the exclusionInvestment operations: depreciation and deductionsSale of investment property and capital gainsDeferring taxes upon disposition (like-kind exchanges, installment sales)Overview of federal income tax law affecting real estateHomeowner tax deductions: property taxes and mortgage interest limitsDeductibility of points paid on home loansIRA withdrawal for first-time homebuyer down paymentVacation home rental rules and personal-use thresholdsHome office deduction requirements and limitationsPassive vs. nonpassive income and the active participant rule +2 more
Investment 4 Q · 4%
Investment properties and investor needsLeasesMortgages and leverageProperty expensesInvestment analysisInvestment mathTypes of investment risk (static, dynamic, business, financial, capital, regulatory, inflation)Lease options and tenant rights (renewal, expansion, right of first refusal, right of first offer, termination)Legal priority of leases versus mortgages and subordination agreementsStructural components and building inspection areas for income propertySensitivity analysis and discounted cash flow decision-makingRecourse vs. nonrecourse loans and mortgage transfer provisions
Zoning and Planning 1 Q · 1%
ZoningSubdividing and development of landWetlands and ecological issuesFlorida Community Planning Act and concurrency requirementsZoning ordinances and land-use classificationsNonconforming use, variance, and special exception distinctionsPlanned unit developments (PUDs) and community development districts (CDDs)National Flood Insurance Program and special flood hazard areasInterstate Land Sales Full Disclosure Act and property report requirementsDevelopments of regional impact (DRI) review processCoastal Construction Control Line Program
Environmental Issues 1 Q · 1%
CERCLAEnvironmental hazardsSARA and innocent landowner defenseEnvironmental site assessments (Phase I, II, and III)Asbestos regulation and disclosureRadon disclosure requirementsLead-based paint disclosure requirements and exceptionsFlorida-specific environmental issues (sinkholes, mold, dockage)
Property Management 1 Q · 1%
Introduction to property management, markets, and skillsThe rental processThe owner-manager relationshipFlorida Residential Landlord and Tenant ActFederal and state lawsLicensing requirements and exemptions for property managers and community association managersTypes of property management markets (residential, commercial, community associations)Lease types, clauses, and completion restrictionsProperty maintenance programs and risk managementAccounting, recordkeeping, and operating budgetsStaffing, recruitment, and employee relations
The Real Estate Market 3 Q · 3%
Characteristics of the real estate marketBasic real estate mathSupply and demand variables in real estate markets

Key Distinctions

Voluntary alienation (devise)vsInvoluntary alienation (intestate descent, eminent domain)

A devise passes real property to beneficiaries through a valid will, which is voluntary because the decedent directed the transfer, while property passing to heirs by descent and distribution when the owner dies intestate, or taken by eminent domain even with just compensation, is involuntary because the transfer occurs by operation of law rather than the owner's choice.

Unilateral contractvsBilateral contract

In a unilateral contract one party promises in exchange for the other party's performance of an act (e.g., an option contract or open listing), whereas in a bilateral contract both parties exchange binding promises.

RescissionvsNovation / Specific performance

Rescission is the parties' mutual agreement to cancel the contract and return to their pre-contract positions, novation substitutes a new party or new contract, and specific performance is a court-ordered remedy compelling the breaching party to complete the sale because each parcel is unique.

Investment valuevsValue in use

Investment value is a property's worth to a particular party based on that party's own rate of return, risk tolerance and management involvement, while value in use is based on a specified use that may not be the highest and best use (e.g., the IRS farm estate-valuation provision and Florida's Greenbelt Law).

Florida Real Estate Broker course, Unit 6 — Types of Value (Value in Use)
Extraordinary assumptionvsHypothetical condition

Under USPAP an extraordinary assumption is a condition the appraiser cannot verify but has a reasonable basis to accept as true (such as appraising proposed improvements from plans and specifications), while a hypothetical condition is a condition the appraiser knows is contrary to fact (such as valuing a proposed building as if it already existed).

Florida Real Estate Broker course, Unit 6 — Extraordinary Assumptions and Hypothetical Conditions
Cash equivalencyvsMarket abstraction (paired data) / successive sales analysis

Cash equivalency adjusts for atypical financing by discounting the difference between actual loan payments and market-rate payments to present value, market abstraction compares similar sales with and without the atypical financing, and successive sales analysis (repeat sales in the same market) measures changes in market conditions over time.

Florida Real Estate Broker course, Unit 7 — Market Conditions / Successive Sales Analysis
Dynamic riskvsStatic risk

Dynamic risk arises from changes in the economy, supply and demand, and tax or land-use codes (regulatory risk) and cannot be insured against, while static risk (fire, storm, flood, theft, liability) is insurable.

Florida Real Estate Broker course, Unit 15 (Investment Real Estate), Regulatory Risk
Closing Disclosure page 2vsClosing Disclosure page 3

Page 2 itemizes settlement charges such as the real estate brokerage commission, loan closing costs, prepaids, escrow setup, title and recording charges, while page 3 contains the Calculating Cash to Close comparison (Loan Estimate vs. final figures) and the transaction summaries showing the deposit, loan amount and prorations.

Closing Disclosure (CFPB sample), Page 2 — Closing Cost Details
Violation of s. 475.42(1) generallyvsOperating without a valid, current active license

A violation of Section 475.42(1), such as a sales associate collecting money in their own name, is a second-degree misdemeanor unless a different punishment is prescribed, whereas operating as a broker or sales associate without a valid and current active license is a third-degree felony.

Florida Statutes 475.42(1)(a)
Time-share resale listing agreement contents (Rule 61J2-23.001(1))vsTime-share resale purchase and sale contract contents (Rule 61J2-23.002(2))

The listing agreement must disclose any judgments or pending litigation against the broker alleging violations of chapters 475, 718 or 721, F.S., or consumer fraud, while the current year's common expense assessment, the managing entity's name and address, and mandatory exchange program membership belong in the resale contract.

Florida Real Estate Law Book, Rule 61J2-23.001(1)(g), F.A.C.
Continuing education end-of-course examvsPost-licensing end-of-course exam

A grade of 80% or higher is required on the Commission-prescribed continuing education course examination, while 75% or higher constitutes satisfactory completion of a post-licensing education course examination.

Rule 61J2-3.020(4)
Broker funds allowed in a sales escrow accountvsBroker funds allowed in a property management escrow account

A broker may place and maintain up to $1,000 of personal or brokerage funds in a sales escrow account, but up to $5,000 in a property management escrow account.

Florida Statutes 475.25(1)(k) and Rule 61J2-14.010(2)

Key Terms

Commission Florida Statutes 475.01(1)(c)
Per Section 475.01(1)(c), F.S., 'Commission' means the Florida Real Estate Commission; the Department of Business and Professional Regulation is separately defined as 'Department' under 475.01(1)(e).
Involuntarily inactive status Florida Statutes 475.01(1)(g)
Per Section 475.01(1)(g), F.S., the licensure status that results when a license is not renewed at the end of the license period prescribed by the department.
Real property / real estate (license law) Florida Statutes 475.01(1)(i)
Per Section 475.01(1)(i), F.S., any interest or estate in land including assignments, leaseholds, subleaseholds, mineral rights, and business enterprises or opportunities, but specifically excluding cemetery lots or rights of burial and the renting of a mobile home lot or recreational vehicle lot in a mobile home park or travel park.
Subrogation Florida Statutes Section 475.484(2)
Under Section 475.484(2), F.S., upon payment from the Real Estate Recovery Fund the claimant assigns right, title and interest in the judgment to the commission, which is then subrogated — it may step into the claimant's shoes and pursue the judgment debtor to reimburse the fund.
Interpleader Florida Statutes Section 475.25(1)(d)1.c
Under Section 475.25(1)(d)1.c, F.S., an escape procedure in which the broker deposits disputed escrowed funds with the court and asks the court to adjudicate which party is entitled to them.
Trade name Rule 61J2-10.034
Per Rule 61J2-10.034, a fictitious business name used by a broker, partnership or corporation that differs from the actual legal name of the individual or entity; the actual name is not a trade name, and no individual, partnership or corporation may be registered under more than one trade name.
'Immediately' (escrow deposit) Rule 61J2-14.008(3)
Per Rule 61J2-14.008(3), placement of a deposit in an escrow account no later than the end of the third business day following receipt; Saturdays, Sundays and legal holidays are not business days.
Control of a brokerage corporation Rule 61J2-5.014
Per Rule 61J2-5.014, a person is deemed in control of a corporation when that person, or a spouse, child or household member, owns or controls directly or indirectly more than 40 percent of the voting stock.
No brokerage relationship duties Florida Real Estate Law Book, s. 475.278(4)(a), F.S.
Per s. 475.278(4)(a), F.S., only three duties are owed: dealing honestly and fairly; disclosing all known facts materially affecting the value of residential real property that are not readily observable to the buyer; and accounting for all funds entrusted to the licensee — timely presentation of all offers is not among them.
Corporation sole Florida Real Estate Broker's Guide, Unit 2 — Corporation Sole
An ecclesiastical organization normally headed by a bishop or other clerical official empowered to hold title to church property, with title descending to the successor in office rather than to the official's heirs; it cannot be registered as a real estate brokerage entity.
Constructive notice
The legal presumption that everyone has knowledge of information contained in the public records, created when a deed or other title document is properly recorded, regardless of whether anyone actually read it.
Title
The legal concept representing the right to ownership and possession of real property and the evidence of one's right in the property.
Habendum clause
The deed clause identified by the words 'to have and to hold' that defines the extent of ownership or type of estate being conveyed to the grantee.
Consideration
An essential element of a valid contract: something of value — money, a promise, or an act — that each party gives or promises in exchange for the other party's promise or performance.
Lien theory state
Florida is a lien theory state, meaning a mortgage creates a lien on the property rather than transferring title; the borrower retains title and the lender holds a lien as security for the debt.
Equity dividend rate (cash-on-cash return) Florida Real Estate Broker course, Unit 15 (Investment Real Estate), Equity Dividend Rate
Before-tax cash flow (NOI minus annual debt service) divided by the investor's equity, as distinguished from the capitalization rate, which is NOI divided by price.

Formulas to Know

Capitalization rate, value, and NOI relationshipsCap Rate = NOI ÷ Value; Value = NOI ÷ Cap Rate; NOI = Value × Cap Rate. Example: $87,500 ÷ $1,093,750 = 8%; $875,000 × 0.09 = $78,750 NOI; with NOI $96,000, value at 8% = $1,200,000 and at 10% = $960,000, a $240,000 difference.
Deriving NOI from potential gross incomeEGI = PGI × (1 − vacancy & collection loss rate); NOI = EGI − annual operating expenses; then Value = NOI ÷ Cap Rate. Example: $185,000 × 0.94 = $173,900 EGI; − $62,000 = $111,900 NOI; ÷ 0.075 = $1,492,000.
Gross Rent Multiplier value estimateGRM = comparable sale price ÷ comparable MONTHLY rent; Subject value = GRM × subject monthly rent (use total monthly rent for all units). Example: $234,000 ÷ $1,800 = 130; 130 × $2,100 = $273,000.
Straight-line (age-life) depreciation and cost approach valueAnnual depreciation = cost new ÷ total economic life; Total depreciation = annual depreciation × effective age; Property value = (cost new − total depreciation) + land/site value. Where depreciation is given as a percent of cost new: accrued depreciation = cost new × percent, e.g., $300,000 × 15% = $45,000, so $255,000 + $80,000 site = $335,000.
Loan-to-value, maximum loan, and down paymentBase the LTV on the LOWER of sale price or appraised value: Maximum loan = lower figure × LTV%; Down payment = sale price − maximum loan. LTV of an existing loan = loan amount ÷ purchase price. Example: $305,000 × 0.80 = $244,000; $310,000 − $244,000 = $66,000.
Discount points and origination feeEach charge is a percentage of the LOAN amount: points = loan × point %, origination = loan × 1%. Example: loan $300,000 → 2 points = $6,000 and 1% origination = $3,000, total $9,000.
Simple interest (360-day year)Interest = Principal × Annual Rate × (Days ÷ 360). Example: $6,500 × 0.08 × (90 ÷ 360) = $130.00.
Proration of prepaid/arrears itemsDaily rate = annual amount ÷ 365 (or monthly rent ÷ 30 for a 30-day month); multiply by the days belonging to the other party. Taxes paid in advance with the buyer owning the closing day: credit to buyer = days from closing day through Dec 31 × daily rate (e.g., 107 × $15 = $1,605). Taxes paid in arrears with the seller responsible through the day before closing: seller's share = days Jan 1 through the day before closing × daily rate (e.g., 292 × $18 = $5,256). Prepaid rent: buyer's credit = remaining days × daily rent (e.g., 20 × $55 = $1,100).
Seller's net / minimum sale priceSale Price = (desired net + closing costs) ÷ (1 − commission rate). Example: ($285,000 + $4,200) ÷ 0.945 = $306,032. Seller's net proceeds = sale price − (mortgage payoff + commission + closing costs + prorated taxes owed).
Percentage (overage) rent with a natural breakpointBreakpoint = base rent ÷ percentage; Overage rent = (gross sales − breakpoint) × percentage; Total rent = base rent + overage. Example: $60,000 ÷ .05 = $1,200,000; ($1,500,000 − $1,200,000) × .05 = $15,000; total $75,000.
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