The 50 terms below come straight from GatorPrep RE's flashcard deck, organized by the same nine subject areas the Florida exam draws from — heavy on the Florida-only concepts (transaction broker, EDOs, Save Our Homes, doc stamps) that national study material never touches.
Topic 1 of 9
License Law & FREC
FREC
Florida Real Estate Commission — the 7-member body that regulates real estate licensees in Florida under Chapter 475.
DBPR
Department of Business and Professional Regulation — the state agency that houses FREC, investigates complaints, and administers the real estate licensing system.
Chapter 475 (FL)
The Florida statute governing real estate licensing — it defines who must be licensed, how to obtain a license, and the standards of conduct.
Commingling
The illegal mixing of client trust funds with the broker's personal or business funds. A serious FREC violation.
Florida Real Estate Recovery Fund
A fund that compensates members of the public who suffer losses caused by a licensed real estate practitioner's fraud or misconduct.
Culpable Negligence
A level of carelessness so extreme it constitutes reckless disregard for a client's interests. Subject to FREC discipline.
Topic 2 of 9
Brokerage Relationships
Transaction Broker
A broker who provides limited representation to a buyer, seller, or both — without owing full fiduciary duties to either party. The default relationship in Florida.
Single Agent
A broker who represents one principal — either the buyer or the seller — and owes that party full fiduciary duties.
Default brokerage relationship in Florida
Transaction broker. Unless a written agreement establishes a different relationship, all licensees operate as transaction brokers.
Single Agent — fiduciary duties (CODALS)
Confidentiality, Obedience, Loyalty, Disclosure, Accounting, and Skill and care.
Customer vs. Client
Customer: a party the licensee assists but does not represent. Client (principal): a party the licensee represents, to whom specific duties are owed.
Johnson v. Davis
A landmark Florida Supreme Court case establishing that sellers must disclose all known material defects. Active concealment of a known defect constitutes fraud.
Topic 3 of 9
Brokerage Operations
Escrow deposit deadline (FL)
A broker must deposit trust funds into an escrow account within 3 business days of receipt.
FREC Escrow Disbursement Order (EDO)
A FREC ruling directing how disputed escrow funds should be released. A broker who follows an EDO in good faith is protected from liability.
Good Faith Doubt (escrow)
When a broker has a genuine dispute about who is entitled to escrow funds, they may seek a FREC EDO or use one of the three other dispute resolution methods rather than disburse unilaterally.
Mutual Recognition Agreement (FL)
An agreement between Florida and select states allowing out-of-state licensees to obtain a FL license by passing a 40-question Florida law exam, without completing the full 63-hour pre-licensing course.
Post-Licensing Education vs. CE
Post-licensing: required once, within the first renewal period (45 hrs for sales associates). CE: required every subsequent renewal (14 hrs). Missing post-licensing voids the license; missing CE causes it to expire.
Topic 4 of 9
Florida & Federal Laws
Steering
Guiding buyers or renters toward or away from certain neighborhoods based on race, religion, national origin, or other protected characteristics. Illegal under the FHA.
Blockbusting
Inducing homeowners to sell by suggesting that members of a protected class are moving into the neighborhood. Also called panic peddling. Illegal under the FHA.
Redlining
Refusing to provide real estate services, loans, or insurance in certain neighborhoods based on the racial or ethnic composition of those areas. Illegal under the FHA.
Florida Fair Housing Act (Chapter 760)
Mirrors the federal FHA and extends fair housing protections to commercial real estate. Administered by the Florida Commission on Human Relations.
Familial Status (FHA)
Households with children under 18 — including pregnant women and those in the process of gaining legal custody of a minor.
Special Flood Hazard Area (SFHA)
A FEMA-designated zone with a 1% annual chance of flooding — commonly called the 100-year floodplain. Properties in SFHAs with federally backed loans must carry flood insurance.
Topic 5 of 9
Property Rights & Ownership
FL Homestead — Creditor Protection
Florida's constitution protects a primary residence from forced sale by most creditors. Exceptions include mortgage liens, property tax liens, and mechanic's liens.
Tenancy by the Entireties (FL)
A form of co-ownership available only to married couples. Neither spouse can convey their interest without the other's consent. Provides strong creditor protection in Florida.
Bundle of Rights
The rights that come with owning real property: Possession, Use, Enjoyment, Exclusion, and Disposition.
Joint Tenancy — Four Unities (TTIP)
Time (acquired simultaneously), Title (same deed), Interest (equal shares), Possession (equal right to possess). All four must exist for a valid joint tenancy.
Adverse Possession (FL)
Acquiring title to another's land by occupying it openly, notoriously, hostilely, continuously, and exclusively for 7 years — while paying the property taxes.
General Warranty Deed
Offers the broadest buyer protection — the grantor warrants title against all defects and claims, even those arising before the grantor's period of ownership.
Topic 6 of 9
Contracts & Legal Descriptions
Government Survey System
A federal grid system using principal meridians (N-S lines) and baselines (E-W lines) to locate parcels. Established by the Land Ordinance of 1785 for land west of the original colonies.
Metes and Bounds
Describes a parcel by starting at a point of beginning (POB) and tracing its boundaries using bearings (directions) and distances. Used for irregular parcels and in Florida's older rural areas.
1 acre = _____ square feet
43,560 square feet.
Statute of Frauds (FL)
Requires real estate contracts — including purchase agreements and listing agreements — to be in writing and signed by the party to be charged in order to be enforceable.
Documentary Stamp Tax — Deed (FL)
$0.70 per $100 of the purchase price. Typically paid by the seller in most Florida counties.
AS IS Contract (FL)
The seller is not obligated to make repairs, but the disclosure duty remains. The buyer retains the right to inspect and may cancel during the inspection period for any reason.
Topic 7 of 9
Finance & Mortgages
FL Lien Theory
In Florida, a mortgage gives the lender a lien on the property — not actual title. The borrower retains title throughout the loan term.
Promissory Note vs. Mortgage
The promissory note is the personal promise to repay the debt. The mortgage pledges the property as collateral. The note is the debt; the mortgage secures it.
LTV (Loan-to-Value Ratio)
Loan Amount ÷ Appraised Value. Lenders use LTV to assess risk — the higher the LTV, the less equity the borrower has and the more risk to the lender.
FL Judicial Foreclosure
Florida requires the lender to file a lawsuit to foreclose. The process is court-supervised and takes longer than non-judicial foreclosure states.
Discount Points
Fees paid to the lender at closing to buy down (reduce) the interest rate. One point = 1% of the loan amount.
Topic 8 of 9
Appraisal, Investment & Markets
Market Value
The most probable price a property would sell for in a competitive, open market between a knowledgeable buyer and seller, neither under duress, with reasonable exposure time.
Three Approaches to Value
Sales comparison (best for residential), cost approach (best for special-purpose or new construction), income approach (best for income-producing properties).
Cap Rate (Capitalization Rate)
NOI ÷ Value. Expresses the rate of return a property generates based on its income. Higher cap rate = higher perceived risk or lower price relative to income.
GRM (Gross Rent Multiplier)
Sale Price ÷ Monthly Gross Rent. A quick income-based valuation tool used for smaller residential rental properties.
Highest and Best Use (HBU)
The use that is legally permissible, physically possible, financially feasible, and maximally productive. Appraisers must determine HBU before estimating value.
Topic 9 of 9
Math, Taxes & Planning
Save Our Homes (SOH) Cap
Limits the annual increase in the assessed value of a homesteaded property to the lesser of 3% or the change in the Consumer Price Index.
Florida Homestead Exemption
Reduces the taxable value of a primary residence by up to $50,000. The first $25,000 applies to all taxing authorities; the second $25,000 applies to all except school taxes.
Mill Rate
The tax rate expressed in mills. One mill = $0.001 (one-tenth of one cent). Annual Tax = Taxable Value × Mill Rate ÷ 1,000.
TRIM Notice
Truth in Millage — a notice mailed to all Florida property owners each August showing the proposed assessed value and proposed millage rates for the upcoming tax year.
Intangible tax on a new FL mortgage
Paid by the buyer. Rate: $0.002 per $1 of the loan amount (20 cents per $100).
Keep Going
50 Down. The Exam Draws From Hundreds.
These 50 give you the highest-value core, but the exam's vocabulary pool runs deeper — and recognition under time pressure is a different skill than reading a list. That's what spaced-repetition flashcards are for: the terms you miss keep coming back until they stick.