Violations and Penalties Practice Questions
Violations of license law, penalties, and procedures is about 3 questions on the Florida sales associate exam. It covers the FREC disciplinary process, the penalties FREC can impose, how a complaint moves from investigation to hearing, and the Real Estate Recovery Fund. Work the questions below, then read every explanation.
Exam prep only
These questions trace what happens after a complaint is filed and what FREC can do about it. The flow has a fixed order, and the penalties have fixed limits.
Use The Who-Does-What Read. DBPR investigates, a probable cause panel decides whether to charge, and a disputed-fact case goes to an administrative law judge before FREC issues the final order. Keep the roles straight and the answer follows.
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Violations and Penalties Practice Questions
6 scenario-based questions on violations and penalties, scored, each with a full explanation after you answer. Every question is also written out below if you would rather study at your own pace.
Every question explained
Prefer to study at your own pace? Here are all 6 questions. Read each one and pick your answer, then reveal the correct answer, the reasoning, and the trap that catches most candidates.
1. A consumer files a complaint against a licensee with DBPR. Which entity conducts the initial investigation of that complaint?
- A.FREC, which assigns commissioners to investigate
- B.DBPR, which has investigative authority over complaints against licensees
- C.the local Realtor association
- D.the circuit court
Show answer and explanation
Correct answer: B. DBPR, which has investigative authority over complaints against licensees
Why B is correct: DBPR investigates complaints against real estate licensees. FREC enters later to make the probable cause determination and to issue the final order. DBPR is the investigator and prosecutor; FREC acts more like the board that decides.
Trap: FREC does not investigate complaints. DBPR does. FREC's role comes after the investigation.
Source: F.S. 455.225; F.S. Chapter 475
2. A licensee disputes the facts alleged in a formal administrative complaint. Where is the case heard?
- A.a FREC meeting, where commissioners take testimony
- B.the Division of Administrative Hearings, before an administrative law judge
- C.the Florida Supreme Court
- D.a county mediation panel
Show answer and explanation
Correct answer: B. the Division of Administrative Hearings, before an administrative law judge
Why B is correct: When a licensee disputes the material facts, the case goes to the Division of Administrative Hearings for a formal hearing before an administrative law judge. The judge issues a recommended order, and FREC then reviews it and issues the final order.
Trap: Disputed facts go to an administrative law judge at DOAH, not to a FREC meeting. FREC issues the final order after the judge's recommended order.
Source: F.S. Chapter 120, administrative procedure
3. What is the maximum administrative fine FREC may impose per count for a violation of Chapter 475?
- A.1,000 dollars
- B.5,000 dollars
- C.10,000 dollars
- D.25,000 dollars
Show answer and explanation
Correct answer: B. 5,000 dollars
Why B is correct: FREC may impose an administrative fine of up to 5,000 dollars for each separate violation, or count. Multiple counts can add up, but the per-count maximum is 5,000 dollars.
Trap: The fine cap is 5,000 dollars per count, not per case. Several counts can each carry their own fine.
Source: F.S. 475.25, disciplinary penalties
4. Besides fines, which set of penalties may FREC impose on a licensee for a violation?
- A.Jail sentences and criminal probation, imposed directly by FREC
- B.Suspension, revocation, probation, and reprimand of the license
- C.Garnishment of the licensee's personal bank account
- D.Eviction of the licensee from any property
Show answer and explanation
Correct answer: B. Suspension, revocation, probation, and reprimand of the license
Why B is correct: FREC's administrative penalties include suspending a license for up to 10 years, revoking a license, placing a licensee on probation, issuing a reprimand, and imposing fines. Criminal penalties such as jail come from the courts, not from FREC.
Trap: FREC imposes administrative penalties, not jail time. Criminal punishment comes through the court system.
Source: F.S. 475.25, disciplinary penalties
5. A member of the public loses money because of a licensee's fraud and wins a court judgment that the licensee cannot pay. The fund that may reimburse the consumer is the
- A.Florida Real Estate Recovery Fund
- B.federal FDIC insurance fund
- C.brokerage's escrow account
- D.FREC operating budget
Show answer and explanation
Correct answer: A. Florida Real Estate Recovery Fund
Why A is correct: The Florida Real Estate Recovery Fund can reimburse a member of the public who wins an unpaid court judgment against a licensee for certain violations committed in a real estate transaction. The licensee's own license is suspended until the fund is repaid.
Trap: The Recovery Fund pays victims with unpaid judgments, then the licensee must repay the fund. It is not the brokerage escrow account.
Source: F.S. 475.482 and 475.483, Real Estate Recovery Fund
6. For certain minor, clearly defined violations, FREC may issue a citation that sets a specific penalty the licensee can simply pay. A citation is best described as
- A.a criminal charge filed in court
- B.a streamlined penalty for minor violations, with a set fine, that the licensee may accept rather than contest
- C.an automatic license revocation
- D.a referral to the Recovery Fund
Show answer and explanation
Correct answer: B. a streamlined penalty for minor violations, with a set fine, that the licensee may accept rather than contest
Why B is correct: A citation is a streamlined disciplinary tool for specific minor violations. It carries a set penalty, often a fine, that the licensee can pay to resolve the matter without a full disciplinary hearing. The licensee may instead dispute it and request a hearing.
Trap: A citation is an administrative shortcut for minor violations, not a criminal charge and not an automatic revocation.
Source: F.S. 455.224, citations
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Get the full question bankFrequently asked questions
What is the maximum fine FREC can impose?
FREC may impose an administrative fine of up to 5,000 dollars per count, or separate violation, of Chapter 475. Because the cap is per count, multiple violations in one case can each carry their own fine.
Who investigates complaints against Florida real estate licensees?
DBPR investigates complaints against licensees. FREC then makes the probable cause determination and issues final orders. When a licensee disputes the facts, the case is heard by an administrative law judge at the Division of Administrative Hearings.
What is the Florida Real Estate Recovery Fund?
The Real Estate Recovery Fund reimburses a member of the public who holds an unpaid court judgment against a licensee for certain violations in a real estate transaction. After the fund pays, the licensee's license is suspended until the fund is repaid.