Penalty range: notice of noncompliance, citation, fine, reprimand, probation, suspension, or revocation.
Before you read
Test yourself first: 5 questions
Question 1 of 5
Which of the following disciplinary penalties is within FREC's authority to impose on a licensee found to have violated Chapter 475?
Answer: C. FREC may discipline licensees through reprimand, probation, suspension, revocation, and administrative fines (up to the statutory cap per count). Criminal penalties such as jail are imposed only by courts.
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
FREC disciplinary penalties against a licensee can include:
Answer: A. FREC may discipline licensees through reprimands, administrative fines, probation, suspension, or revocation, depending on the violation.
Question 4 of 5
Which Florida agency is responsible for investigating complaints and imposing discipline against real estate licensees?
Answer: B. The Florida Real Estate Commission (FREC) operates under the Department of Business and Professional Regulation (DBPR) and is the body that adopts rules, investigates complaints, and disciplines licensees for license-law violations.
Question 5 of 5
Which of the following best describes 'concealment' as a prohibited act under Florida license law?
Answer: B. Concealment is the failure to disclose a material fact when a duty to disclose exists. Along with fraud, misrepresentation, and dishonest dealing, it is grounds for discipline under Florida license law.
Keep the streak going with more questions like these, each with a full rationale.
Must-know rules
- FREC may discipline licensees for violations of Chapter 475, Florida Statutes.
- Penalty range: notice of noncompliance, citation, fine, reprimand, probation, suspension, or revocation.
- FREC may impose administrative fines for each separate violation.
- Suspension is for a limited period; revocation generally requires waiting before reapplying.
- The Florida Real Estate Recovery Fund reimburses consumers who win an unpaid court judgment against a licensee.
- Recovery Fund payment triggers automatic suspension of the licensee's license until the fund is repaid in full plus interest.
- Serious or fraudulent conduct can also lead to criminal referral in addition to administrative action.
Florida License Discipline, Penalties & Recovery Fund: FAQs
Is Florida License Discipline, Penalties & Recovery Fund 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.
