Your FREE Florida Real Estate Flashcards 2026 – 200+ Cards

Florida Department of Business and Professional Regulation — the umbrella state agency that issues and regulates real estate licenses through its Division of Real Estate.

Florida Real Estate Commission — 7 gubernatorial appointees within the DBPR that write and enforce real estate license law under Chapter 475, F.S.

7 members: 4 licensed brokers, 1 broker or sales associate, and 2 consumer members who have never held a real estate license. Appointed by the Governor.

The Florida Statutes chapter governing real estate brokers, sales associates, schools, and appraisers — the source of Florida license law.

The Florida Administrative Code rules adopted by FREC that implement Chapter 475 (escrow timelines, office signs, advertising, conduct).

100 multiple-choice questions; must score 75% (75 correct) to pass; 3.5 hours; delivered by Pearson VUE for the DBPR.

63 hours — the FREC Course I, which must be completed and passed before sitting for the state exam.

45 hours — must be completed before the FIRST license expiration, or the license becomes null and void.

14 hours every 2-year renewal after the post-license period, including 3 hours Core Law and 3 hours ethics/business practices.

63 hours pre-license → 45 hours post-license (first renewal) → 14 hours CE every two years.

3 of the 14 CE hours that update licensees on recent changes to Chapter 475, F.S., and FREC rules each renewal period.

Only three: single agent, transaction broker, or no brokerage relationship. Florida prohibits dual agency.

Florida's PRESUMED relationship — limited representation without fiduciary loyalty. Owes honesty, accounting, skill, disclosure of known facts, and limited confidentiality.

Full fiduciary representation of one party. Owes the added duties of loyalty, confidentiality, obedience, and full disclosure.

Licensee represents neither party; owes only honesty, fair dealing, disclosure of known material facts, and accounting.

Transaction broker — under s. 475.278, F.S., a licensee is presumed a transaction broker unless a single agent or no-brokerage relationship is established in writing.

Loyalty, Confidentiality, Obedience, and Full disclosure — the four duties a single agent owes that a transaction broker does not.

Prohibited — both disclosed and nondisclosed. A key Florida difference from many other states.

The written disclosure a single agent must give the customer before or at the time of entering into a listing or showing property.

No longer required (repealed effective July 1, 2008) because transaction brokerage is the presumed relationship.

A sales associate must deliver an earnest-money deposit to the broker by the END OF THE NEXT BUSINESS DAY (Rule 61J2-14.009). The associate may never hold it personally.

No later than the END OF THE 3RD BUSINESS DAY after the broker receives the funds (Rule 61J2-14.008). Weekends and legal holidays are excluded.

A broker's reasonable uncertainty over who is entitled to escrowed funds, triggering notice to FREC within 15 business days and a settlement procedure within 30.

Within 15 business days of the broker's good-faith doubt or the last demand.

Within 30 business days of the last demand or good-faith doubt.

(1) Escrow Disbursement Order (EDO) from FREC, (2) arbitration, (3) mediation (with consent), (4) litigation/interpleader.

A FREC order directing release of a disputed deposit; generally available only when the funds are held on a residential sale.

Improperly mixing a client's trust funds with the broker's own or business funds — a Florida license-law violation.

Using a client's trust funds for the broker's own purposes — more serious than commingling; triggers automatic license suspension if paid from the Recovery Fund.

Reimburses consumers for unpaid judgments from a licensee's wrongful act. Pays up to $50,000 per transaction and $150,000 per licensee.

$50,000 in the aggregate for all claims arising out of the same transaction (s. 475.484, F.S.).

$150,000 in the aggregate against any one broker or sales associate (s. 475.484, F.S.).

The licensee's license is automatically suspended until the licensee fully reimburses the Fund plus interest.

Up to $5,000 per violation, in addition to suspension or revocation (s. 475.25, F.S.).

The formal charging document the DBPR files against a licensee after FREC finds probable cause of a violation.

A FREC panel that reviews investigations and decides whether probable cause exists to file an Administrative Complaint.

Performing real estate services for another for compensation without a license — a violation even for a single isolated act (s. 475.41, F.S.).

Only by the broker (or owner-developer) they are registered under — never directly from a buyer or seller (s. 475.42, F.S.).

A Florida sales associate may be registered under and supervised by only ONE licensed broker (or owner-developer) at a time.

A registered office must display an entrance sign with the broker's name, the trade name, and 'licensed real estate broker' (or 'lic. real estate broker').

An inactive (voluntarily inactive) license is valid but the holder may not perform real estate services for compensation until activated under a broker.

A license not renewed at expiration becomes involuntarily inactive for up to 2 years; after that it is null and void (s. 475.182, F.S.).

Pearson VUE delivers the Florida real estate licensure exam on behalf of the DBPR.

Chapter 760, F.S. — mirrors the federal protected classes; complaints filed with the Florida Commission on Human Relations or HUD.

Roughly 45 questions on real estate principles/practices, ~45 on Florida and federal license law, and ~10 on real estate math.

An entity that may register sales associates and pay them directly under Florida law, like a broker for its own projects.

A Florida brokerage must register its trade name and broker with the DBPR; the office must display the required entrance sign.

Florida agreements with certain states letting their licensees obtain a Florida license by passing only the Florida-law portion.

Allows a sales associate of an owner-developer to work at multiple developments owned by the same entity under one registration.

A current license is properly renewed; an effective (active) license also permits performing real estate services for compensation.

Land plus everything permanently attached to it (improvements and fixtures) and the bundle of legal rights of ownership.

Movable items not permanently affixed to land. A fixture is personal property that becomes real property when permanently attached.

The rights of ownership: possession, use (enjoyment), exclusion, disposition (transfer), and control.

The most complete ownership — absolute, of unlimited duration, freely transferable by deed or will.

A freehold estate that lasts for the lifetime of a named person; it cannot be willed because it ends at death.

A tenant's right to possess and use property for a term without owning it (e.g., estate for years, periodic tenancy).

Method of attachment, Adaptability, Relationship of the parties, Intention, Agreement — the tests for whether an item is a fixture.

Items attached by a business tenant; they remain personal property and may be removed before the lease ends.

A nonpossessory right to use another's land for a specific purpose, such as a driveway or utility line.

Appurtenant benefits an adjacent parcel and runs with the land; in gross benefits a person or company (e.g., a utility), not a parcel.

Any claim, lien, charge, or right that limits an owner's title — liens, easements, encroachments, deed restrictions.

An unauthorized intrusion of an improvement (fence, building, driveway) onto a neighbor's land; usually found by survey.

Police power, Eminent domain, Taxation, Escheat — the four limits on private property. Only eminent domain pays the owner.

Government's authority to regulate land for public health, safety, and welfare — the basis for zoning and building codes, with no payment.

Government's power to take private property for public use through condemnation, paying just compensation.

Property reverts to the state when an owner dies with no will and no legal heirs.

Local police-power regulation dividing land into use districts; a variance permits a hardship deviation from the rules.

A legal description using distances (metes) and compass directions (bounds) traced back to a point of beginning.

Describes land by principal meridians and base lines forming 6-mile-square townships of 36 sections. Florida uses the Tallahassee meridian.

One square mile of land — 640 acres — and one thirty-sixth of a township.

A unit of land area equal to 43,560 square feet.

A legal description that refers to a lot and block on a recorded subdivision plat.

Private limits on land use, often stricter than zoning; enforced by other owners or an association.

Ownership is a 'bundle of sticks' — an owner can lease or sell one right (a stick) while keeping the rest.

Severance turns real property into personal (e.g., cutting a tree); annexation turns personal into real (attaching a fixture).

Sole ownership of property by one person or entity.

Co-ownership of undivided, willable shares with NO right of survivorship; a share passes by will or intestate succession.

Co-ownership with the right of survivorship; requires the four unities of time, title, interest, and possession.

Time, Title, Interest, Possession — all four are required to create a joint tenancy.

A deceased co-owner's share passes automatically to the surviving co-owners, not to heirs.

A Florida survivorship form of co-ownership reserved for married couples, with creditor-protection features.

Constitutional protection of a primary residence from forced sale by most creditors, plus property-tax and devise limits.

The written instrument that conveys title to real property from the grantor (seller) to the grantee (buyer).

Gives the most protection; the grantor warrants clear title against all defects, even those arising before the grantor owned the property.

The grantor warrants title only against defects arising during the grantor's own period of ownership.

Conveys only whatever interest the grantor has, with no warranties; often used to clear a cloud on title.

Title passes only when the grantor delivers the deed and the grantee accepts it; the grantee never signs the deed.

Entering a deed in the public record; gives constructive notice to the world and sets lien priority.

Notice the law presumes everyone has because a document is recorded in the public record or possession is visible.

A later good-faith purchaser without notice of a prior unrecorded interest is generally protected over the unrecorded interest.

A policy protecting the insured against loss from title defects that existed before the policy date, such as liens or recording errors.

An owner's policy protects the buyer's equity; a lender's policy protects the mortgage lender and is usually required for a loan.

The recorded history of ownership of a parcel, established by a title search of the public record.

A claim or encumbrance that may impair title; often removed with a quitclaim deed or a quiet-title action.

A recorded notice that litigation is pending that may affect title to a property.

The most probable price a property should bring in a competitive, open market under fair-sale conditions; an opinion of value.

Market value is an opinion of the most probable price; market price is the actual price a property sold for.

The legally permissible, physically possible, financially feasible, and most profitable use of a site — the basis of value.

A buyer pays no more than the cost of an equally desirable substitute property.

A modest home gains value near larger ones (progression); a fine home loses value near lesser ones (regression).

Compares the subject to recently sold similar properties, adjusting for differences. Best for homes.

Land value + cost to rebuild the improvements new − depreciation. Best for new or special-use property.

Value = net operating income ÷ capitalization rate. Best for income-producing property.

Effective gross income minus operating expenses, before any mortgage payment.

Rate of return on an income property: NOI ÷ value. A higher cap rate implies more risk and a lower value.

Weighing the three value indications (not averaging) into one final opinion of value.

A loss in value from physical deterioration, functional obsolescence, or external (economic) obsolescence.

An impartial, supported opinion of value by a licensed appraiser as of a specific date, following USPAP.

A licensee's estimate of value from recent comparable sales to help price a listing — not a formal appraisal.

Uniform Standards of Professional Appraisal Practice — the professional standards an appraiser must follow.

Combining adjacent parcels (assemblage) to create added value (plottage) greater than the sum of the parts.

Potential gross income minus vacancy and collection losses, plus other income — the basis for NOI in the income approach.

A legally enforceable agreement between competent parties to do or refrain from doing a lawful act.

Mutual agreement (offer and acceptance), consideration, legal purpose, and competent parties — plus writing for real estate.

Requires contracts for the sale of real estate (and most leases over a year) to be in writing to be enforceable.

Void = missing an essential element (no contract); voidable = a party may rescind (e.g., a minor's contract).

The FloridaRealtors/FloridaBar Residential Contract for Sale and Purchase — the standard Florida purchase agreement.

A buyer's good-faith deposit; held in a Florida trust account and usually applied to the price at closing.

A condition that must be met for a contract to become binding, such as financing, inspection, or appraisal.

A court remedy compelling a defaulting party to carry out the contract because real estate is unique.

A pre-agreed amount (often the deposit) the seller keeps if the buyer defaults, in lieu of suing for actual damages.

A response that rejects the original offer and creates a new one the other party may accept or reject.

A fiduciary relationship in which an agent represents a principal in dealings with third parties.

Loyalty, confidentiality, obedience, and full disclosure — plus the duties every licensee owes.

A contract employing a broker to find a buyer for the owner's property in exchange for compensation.

The listing broker earns the commission no matter who finds the buyer.

Only the broker who actually finds the buyer earns the commission; the owner may also sell it personally.

The agent whose actions set in motion an unbroken chain of events leading to the sale, earning the commission.

A buyer prepared to purchase on the seller's terms; producing one generally earns the broker the commission.

Federal law banning housing discrimination based on race, color, religion, national origin, sex, familial status, and disability.

Race, color, religion, national origin, sex, familial status, and disability.

Chapter 760, F.S. — mirrors the federal classes; complaints go to the Florida Commission on Human Relations or HUD.

Illegally guiding buyers toward or away from neighborhoods based on a protected class.

Inducing owners to sell by claiming members of a protected class are moving in, to profit from turnover — illegal.

A lender's illegal refusal to lend or insure in certain areas based on the racial or ethnic makeup of the neighborhood.

A rule change (e.g., allowing a service animal) a housing provider must permit for a person with a disability.

A physical change to a unit (e.g., a ramp) a tenant with a disability may make, generally at their own expense.

Protects households with children under 18 and pregnant persons from housing discrimination.

Where a Florida broker must keep client funds, separate from operating money. Commingling is a violation.

Commission rates are always negotiable; competing brokers may not agree to fix them (an antitrust violation).

The landlord pays the property expenses (taxes, insurance, maintenance); the tenant pays a flat rent.

The tenant pays some or all property expenses on top of base rent.

Retail rent tied to a percentage of the tenant's sales, often with a base minimum.

Lessor = landlord (grants the lease); lessee = tenant (receives the right to use).

A contract employing a manager to operate an owner's property — leasing, rent collection, maintenance, and accounting.

A fact that would affect a reasonable buyer's decision to buy or the price they would pay; it must be disclosed.

Florida case: a residential seller and licensee must disclose all known facts that materially affect value and are not readily observable.

A hidden physical defect not discoverable by ordinary inspection; a known latent defect must be disclosed.

'Let the buyer beware' — now limited in Florida by Johnson v. Davis and statutory disclosure duties.

Section 404.056(5), F.S. — a statutory radon warning must be given to a buyer or tenant in every sale or rental contract.

An odorless, naturally occurring radioactive gas from soil; the second-leading cause of lung cancer.

Required when residential property is partly or fully seaward of the CCCL, given before the contract is signed.

Section 720.401, F.S. — a buyer of a parcel in a mandatory homeowners' association must receive a summary stating membership is mandatory and assessments may be levied.

Federal: pre-1978 housing requires disclosure of known lead paint, the EPA pamphlet, and a 10-day inspection window for sales.

The federal Residential Lead-Based Paint Hazard Reduction Act — source of the lead-paint disclosure rule.

Hazardous fibers in old insulation/flooring; controlled by removal or encapsulation.

Can leak and contaminate soil and groundwater, creating cleanup liability.

Property psychologically impacted by an event (e.g., a death); disclosure rules vary and differ from physical defects.

A seller's form listing known defects; commonly used to satisfy the Johnson v. Davis disclosure duty.

A loan secured by real property; the borrower (mortgagor) pledges the property as collateral to the lender (mortgagee).

The borrower's written promise to repay a debt — the evidence of the debt that the mortgage secures.

Pledging property as security for a debt without giving up possession — what a mortgage does.

Lets the lender demand the full balance on default.

Requires the loan to be paid in full when the property is sold.

Releases the lien when the debt is fully paid.

Repaying a loan through regular payments of interest and principal so the balance reaches zero by the end of the term.

Loan amount ÷ property value or price; a higher LTV means a smaller down payment and more lender risk.

Insurance a conventional borrower usually pays when the LTV is over 80% (down payment under 20%).

A loan not backed by the government; PMI is usually required when the down payment is under 20%.

A loan insured by the Federal Housing Administration; low down payments, with mortgage insurance premiums.

A loan guaranteed by the Department of Veterans Affairs for eligible veterans; often no down payment (up to 100% LTV).

Prepaid interest paid at closing to lower the loan's rate; one point equals 1% of the loan amount.

Real Estate Settlement Procedures Act — requires loan-cost disclosures (Loan Estimate, Closing Disclosure) and prohibits kickbacks.

Truth in Lending Act — requires lenders to disclose the cost of credit, including the APR (Regulation Z).

Due within 3 business days of application; discloses estimated loan terms and closing costs.

Must reach the borrower at least 3 business days before closing; shows final loan terms and costs.

The legal process by which a lender forces the sale of property to recover an unpaid debt. Florida is a judicial-foreclosure state.

Government-backed FHA and VA loans allow much higher LTVs than conventional; VA can reach 100% for eligible veterans.

Mortgagor = the borrower who pledges the property; mortgagee = the lender who receives the lien.

Generally 'first in time, first in right' by recording date, except property-tax liens, which take priority.

$0.70 per $100 of consideration (Miami-Dade $0.60 + surtax); customarily paid by the seller (s. 201.02, F.S.).

$0.35 per $100 of the loan obligation; customarily paid by the buyer/borrower (s. 201.08, F.S.).

2 mills — $0.002 per $1 ($0.20 per $100) — on a new mortgage; paid by the buyer/borrower (s. 199.133, F.S.).

Seller pays the deed doc stamps; buyer pays the note doc stamps and the intangible tax on the mortgage.

1 acre = 43,560 square feet; convert square feet to acres by dividing by 43,560.

1 section = 1 square mile = 640 acres.

Length × width. A 150 ft × 290 ft lot = 43,500 square feet ≈ 1 acre.

Commission = sale price × commission rate. A $300,000 sale at 6% = $18,000.

Net ÷ (1 − commission rate). A $282,000 net at 6% = $282,000 ÷ 0.94 = $300,000.

Loan ÷ value. An 80% LTV on a $300,000 home is a $240,000 loan and a $60,000 down payment.

Value = NOI ÷ cap rate. $90,000 NOI at a 9% cap rate = $1,000,000.

$0.001 of tax per dollar of assessed value, so 18 mills = 0.018 = 1.8%.

Assessed value × tax rate (or mills × 0.001). A $320,000 assessment at 18 mills = $5,760.

Dividing prepaid or accrued expenses (taxes, rent, interest) between buyer and seller by days of ownership.

Florida property taxes are paid in arrears, so accrued taxes are a seller DEBIT and a buyer CREDIT at closing.

(Price ÷ 100, rounded up to the next $100) × $0.70. A $350,000 deed = 3,500 × $0.70 = $2,450.

(Loan ÷ 100, rounded up) × $0.35. A $200,000 note = 2,000 × $0.35 = $700.

Loan × 0.002. A $200,000 mortgage = $200,000 × 0.002 = $400.

Divide the gain or loss by the ORIGINAL cost (not the sale price).

Many proration problems use a 360-day year (a 30-day month) unless told to use actual days.