DBPR Ethics and Professional Standards 2 — Questions and Answers
Question 1: Which of the following behaviors violates DBPR professional ethics standards for licensed Florida professionals?
- Soliciting clients from a competitor through misrepresentation (Correct answer)
- Advertising competitive pricing
- Subcontracting licensed specialty work
- Joining a professional trade association
Correct answer: Soliciting clients from a competitor through misrepresentation
Using misrepresentation to solicit a competitor's clients violates professional ethics standards and may constitute unfair business practices under Florida law.
Question 2: Florida's professional ethics standards require licensees to handle client funds in what manner?
- Keep client funds in a separate trust or escrow account (Correct answer)
- Combine client funds with general business funds for convenience
- Invest client funds in interest-bearing accounts for profit
- Hold client funds in cash only
Correct answer: Keep client funds in a separate trust or escrow account
Proper handling of client funds requires maintaining them in a separate trust or escrow account, preventing commingling with business operating funds.
Question 3: A Florida real estate licensee who has a personal financial interest in a property being shown to a client must do what?
- Disclose the conflict of interest to the client (Correct answer)
- Immediately remove themselves from the transaction
- Only disclose if the client asks
- Document it internally but not tell the client
Correct answer: Disclose the conflict of interest to the client
Any personal financial interest in a transaction must be disclosed to the client so they can make an informed decision about the professional relationship.
Question 4: What is the ethical obligation of a Florida contractor who realizes mid-project that costs will significantly exceed the original estimate?
- Promptly notify the client and discuss options before proceeding (Correct answer)
- Complete the work and bill the difference without prior notice
- Abandon the project to avoid losses
- Submit a supplemental permit for the additional costs
Correct answer: Promptly notify the client and discuss options before proceeding
Ethical practice requires contractors to immediately inform clients of significant cost overruns and obtain approval before continuing work.
Question 5: Kickbacks or undisclosed referral fees received by a Florida licensee from third parties are considered what?
- Unethical and potentially illegal under Florida law (Correct answer)
- Acceptable if disclosed to the client after the fact
- Standard industry practice with no restrictions
- Only prohibited for government contracts
Correct answer: Unethical and potentially illegal under Florida law
Undisclosed kickbacks and referral fees violate professional ethics and may constitute fraud or bribery under Florida law, requiring full disclosure to clients.
Question 6: Which ethical principle requires a Florida licensed professional to maintain the skills necessary to competently serve clients?
- Duty of competence (Correct answer)
- Duty of loyalty
- Duty of confidentiality
- Duty of advocacy
Correct answer: Duty of competence
The duty of competence requires professionals to maintain adequate knowledge and skills, which is why continuing education is required for license renewal.
DBPR Ethics and Professional Standards 2
Which of the following behaviors violates DBPR professional ethics standards for licensed Florida professionals?