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Florida Real Estate Exam Practice Questions: Agency and Ethics
4 practice questions on agency and ethics for the Florida real estate sales associate exam. Each one has the correct answer, a full explanation of why the other options are wrong, and the statute it comes from.
What this topic covers
Duties, disclosure, and relationships. Questions here test the duties licensees owe, the required disclosures, and how brokerage relationships are created.
Sources these questions cite include: § 475.278, Fla. Stat.; § 475.25, Fla. Stat.; § 542.18, Fla. Stat.; 15 U.S.C. § 1; § 475.42, Fla. Stat.; § 64.1200, Fla. Stat..
Question 1
What distinguishes a latent defect from a patent defect?
- A. A latent defect is hidden and not discoverable by ordinary inspection, while a patent defect is readily observable.
- B. A latent defect is one that is visible to a buyer who inspects the property, and a patent defect is one that is hidden.
- C. A latent defect is always cheaper to repair than a patent defect, because latent defects are minor and affect only the finish.
- D. A latent defect is one that the seller has disclosed in writing, and a patent defect is one that has not been disclosed.
Show the answer and explanation
Correct answer: A.
Sellers and licensees must disclose known latent defects that materially affect value, such as a hidden foundation crack. Patent defects, such as a visibly broken window, are readily observable and do not trigger the same duty. B is wrong because the terms are reversed. C is wrong because the terms concern visibility, not cost. D is wrong because the terms do not depend on disclosure.
Source: Johnson v. Davis, 480 So. 2d 625 (Fla. 1985); § 475.278, Fla. Stat.
Question 2
Several competing brokers in a town agree among themselves that all of them will charge a 7 percent commission and no less. Which law does this agreement most likely violate?
- A. The Sherman Antitrust Act, because competitors agreeing to fix prices is an illegal restraint of trade
- B. The Fair Housing Act, because the agreement limits the housing choices that are available to buyers in the town.
- C. The Statute of Frauds, because the agreement among the brokers is oral and so is not enforceable against them.
- D. The Uniform Commercial Code, because commissions are goods and the code governs the sale of goods between merchants.
Show the answer and explanation
Correct answer: A.
Commission rates are negotiable between each broker and client and cannot be set by law or by agreement among brokers. Price fixing, group boycotts, and market allocation are per se antitrust violations that carry criminal and civil penalties. B is wrong because the issue is price fixing, not discrimination. C is wrong because the Statute of Frauds concerns the form of certain contracts. D is wrong because commissions are not goods.
Source: 15 U.S.C. § 1; § 542.18, Fla. Stat.
Question 3
A sales associate posts an online ad for a listing that shows her own name and phone number but leaves off the brokerage name. Which statement is correct?
- A. The ad is lawful, because the associate holds a valid license and her personal name and number identify her as a licensee.
- B. The ad is lawful, because the advertising rules apply only to print advertising and do not reach internet advertising.
- C. The ad is lawful if the broker approved it orally, because the rule requires only that the broker consent to the ad.
- D. The ad violates the advertising rules, because an associate's ad must identify the brokerage name as registered with the Commission.
Show the answer and explanation
Correct answer: D.
Advertising by a sales associate must include the registered name of the brokerage in a clear and conspicuous manner. An ad without it is a blind ad and is a violation. A is wrong because holding a license does not excuse a blind ad. B is wrong because the rules apply to all media, including online ads. C is wrong because the broker's approval does not change the content requirements.
Source: Rule 61J2-10.025, F.A.C.; § 475.42, Fla. Stat.
Question 4
A seller's agent knows a buyer is relying on her statement that the home's flood history is clear, and the agent knows the home flooded last year. The agent says nothing. How does the law view the agent's silence?
- A. As puffing, because the statement about the flood history is a general sales statement that the buyer should not rely on.
- B. As lawful, because a seller's agent owes duties only to the seller and has no obligation to be accurate to the buyer.
- C. As lawful, because the buyer can find the flood data online and so is not harmed by the agent's statement.
- D. As concealment of a material fact, which can be fraud or misrepresentation and grounds for discipline
Show the answer and explanation
Correct answer: D.
A licensee commits misrepresentation, concealment, or dishonest dealing by hiding known material facts. Penalties can include suspension, revocation, fines, and restitution, and the buyer may bring a civil claim. A is wrong because hiding a known flood event is concealment of a material fact, not an opinion. B is wrong because a licensee must still disclose known material latent facts to the buyer. C is wrong because a buyer's ability to look something up does not remove the duty to disclose known latent material facts.
Source: § 475.25(1)(b), Fla. Stat.; Johnson v. Davis, 480 So. 2d 625 (Fla. 1985)
Want more on this topic?
The full Prep475 kit has 15 questions on agency and ethics, all with the same statute-cited explanations, plus a timed 100-question exam simulation.
Independent study aid, not legal advice. Not affiliated with or endorsed by the Florida Real Estate Commission, the DBPR, or Pearson VUE. Questions are original practice questions, not actual exam questions. Statutes, rules, and exam details change; always confirm against current Florida law and your pre-licensing course materials.
Last reviewed October 20, 2026.