Default relationship = transaction broker (must disclose)
Before you read
Test yourself first: 5 questions
Question 1 of 5
Under Johnson v. Davis, a Florida seller/licensee must:
Answer: B. Johnson v. Davis established that a seller (and licensee) must disclose known facts materially affecting the value of residential property that are not readily observable to the buyer.
Question 2 of 5
Which set of duties best describes those owed by a Florida transaction broker?
Answer: B. A transaction broker provides limited representation and owes duties such as dealing honestly and fairly, accounting for funds, using skill and care, and disclosing known material facts, but not full fiduciary loyalty.
Question 3 of 5
Which of the following duties is COMMON to BOTH the single agent and the transaction broker relationships in Florida?
Answer: D. Accounting for all funds, dealing honestly and fairly, using skill/care/diligence, presenting offers, and disclosing material facts are owed under both relationships. Loyalty, full confidentiality, and obedience are exclusive to single agency.
Question 4 of 5
A Florida licensee meets a buyer-customer with whom the brokerage has NO brokerage relationship. Which duties are still owed to that customer?
Answer: C. Even with NO brokerage relationship, Florida requires dealing honestly and fairly, disclosing all known facts that materially affect the value of residential property and are not readily observable to the buyer, and accounting for all funds. Loyalty, obedience, and confidentiality are NOT owed in a no-brokerage relationship.
Question 5 of 5
Which of the following is a duty of a Florida TRANSACTION BROKER, who provides only LIMITED representation?
Answer: D. A transaction broker's duties include dealing honestly and fairly, accounting for all funds, using skill/care/diligence, disclosing all known material facts not readily observable, presenting all offers, and limited confidentiality. Loyalty, obedience, and full confidentiality belong to single agency, not the limited representation of a transaction broker.
Keep the streak going with more questions like these, each with a full rationale.
Must-know rules
- Regulator: Florida Real Estate Commission (FREC), under DBPR
- Sales associate education: 63 hours
- Default relationship = transaction broker (must disclose)
- Sales associate works under a licensed broker
- Disclosure duty: Johnson v. Davis (latent material defects)
- Strong homestead protections
Florida (FREC) — Key Facts: FAQs
Is Florida (FREC) — Key Facts 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.
