Before you read
Test yourself first: 5 questions
Question 1 of 5
A Florida sales associate receives an earnest money deposit. By when must the deposit be delivered to the broker (or the broker's escrow account) under FREC rules?
Answer: B. A sales associate must deliver escrow funds to the broker by the end of the next business day. The broker then must deposit the funds into the escrow account no later than the end of the third business day after the associate received them.
Question 2 of 5
A broker must deposit trust funds into the brokerage escrow account no later than the end of which business day after the funds are received by the brokerage?
Answer: C. Florida requires brokers to deposit escrow funds into the trust account by the end of the third business day following receipt of the funds by the brokerage.
Question 3 of 5
The improper mixing of a broker's personal or business funds with clients' escrowed trust funds is known as:
Answer: B. Commingling is mixing trust (escrow) funds with the broker's own money. Conversion is the unauthorized use of those funds. Both are serious license-law violations in Florida.
Question 4 of 5
When a broker holds escrowed funds and the buyer and seller make conflicting demands that the broker cannot resolve, which of the following is NOT one of the settlement procedures FREC authorizes?
Answer: D. When faced with conflicting demands, a Florida broker must use one of the authorized settlement procedures: request an EDO from FREC, mediate, arbitrate, or interplead/litigate. Simply paying out the first claimant is improper.
Question 5 of 5
A Florida sales associate receives a binder deposit check from a buyer on Tuesday. Under FREC rules, by when must the deposit be delivered to the broker (or person named in the contract to hold it)?
Answer: B. A sales associate must deliver any deposit or other funds to the broker by the end of the next business day. The broker must then place the funds into escrow no later than the end of the third business day following receipt by the associate.
Keep the streak going with more questions like these, each with a full rationale.
What you need to know
Commingling personal or brokerage operating funds with escrow money is prohibited and is a common cause of disciplinary action by FREC. After the initial post-licensing requirement, active sales associates and brokers must complete 14 hours of continuing education each two-year renewal cycle to keep the license current.
Florida Escrow Funds and License Renewal Rules: FAQs
Is Florida Escrow Funds and License Renewal Rules 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.
