Before you read
Test yourself first: 5 questions
Question 1 of 5
How long must a Florida broker retain transaction and escrow records (such as contracts, deposit records, and disbursement records) for a closed or failed transaction?
Answer: C. Florida brokers must retain books, accounts, and records, including escrow and transaction records, for at least 5 years. If a transaction is the subject of litigation, records must be kept for an additional 2 years after the litigation concludes.
Question 2 of 5
The Florida Real Estate Recovery Fund exists primarily to:
Answer: B. The Real Estate Recovery Fund reimburses consumers who obtain an uncollectible final court judgment against a licensee for fraud, misrepresentation, or other violations committed in a real estate transaction.
Question 3 of 5
A Florida broker wants to place escrow funds into an interest-bearing account. What is required?
Answer: B. Escrow funds may be placed in an interest-bearing account only with the written consent of all parties to the transaction, and the agreement must specify who receives the interest and when it is to be disbursed.
Question 4 of 5
In Florida, when a brokerage relationship is established with a buyer or seller but the form of relationship is not specified, what relationship is presumed by law?
Answer: A. Florida law presumes a transaction broker relationship unless a single agent or no brokerage relationship is established in writing. The transaction broker provides limited representation to both parties.
Question 5 of 5
In Florida, the presumed brokerage relationship with a member of the public (unless otherwise established and disclosed) is:
Answer: B. Florida law presumes a TRANSACTION BROKER relationship unless a single-agent or no-brokerage relationship is established in writing. Transaction brokers owe limited representation, not full fiduciary duties.
Keep the streak going with more questions like these, each with a full rationale.
What you need to know
Brokers receiving escrow or trust funds must deposit them no later than the end of the third business day after receipt, and any dispute over those funds triggers prescribed escrow-dispute procedures with FREC. On closing, documentary stamp tax applies to the deed at $0.70 per $100 of consideration, and licensees should understand homestead protections including the $50,000 homestead exemption and the Save Our Homes 3% annual assessment cap. Because Florida is not a community property state and applies the Johnson v. Davis duty to disclose known latent material defects, agents must handle title, spousal-interest, and disclosure issues with care.
Florida Contract & Transaction Specifics: FAQs
Is Florida Contract & Transaction Specifics on the real estate exam?
Yes. State License Law is a scored domain on the Florida real estate licensing exam, and this topic appears in the state license-law portion.
Is this cheat sheet free?
Yes — every page on Cinna RE's resource library is free to read, print and share. The app adds practice questions, mock exams and a readiness score.
Does Florida test this differently?
Florida applies its own license law on top of the national portion. This page covers the Florida rules specifically, which is what the state section of your exam tests.
