DBPR Ethics and Professional Standards 1 — Questions and Answers
Question 1: Which ethical obligation requires a Florida real estate licensee to act in their client's best interest?
- Fiduciary duty (Correct answer)
- Duty of disclosure
- Duty of care
- Duty of loyalty only
Correct answer: Fiduciary duty
A fiduciary duty obligates real estate licensees to place their client's interests above all others, including their own personal interests.
Question 2: Florida's Code of Ethics for real estate professionals is enforced by which organization?
- The National Association of Realtors (NAR) through local associations (Correct answer)
- DBPR directly
- The Florida Supreme Court
- The Florida Real Estate Commission only
Correct answer: The National Association of Realtors (NAR) through local associations
The NAR Code of Ethics is enforced by local Realtor associations through their professional standards committees, separate from DBPR's statutory enforcement.
Question 3: What does Florida contractor ethics require regarding bids submitted to clients?
- Bids must be honest and not contain intentionally inflated or fraudulent estimates (Correct answer)
- Bids must always be the lowest possible price
- Bids must be submitted in writing with notarization
- Bids are not regulated by ethics rules
Correct answer: Bids must be honest and not contain intentionally inflated or fraudulent estimates
Professional ethics require that contractor bids be honest and accurate, as submitting knowingly false or inflated estimates constitutes fraud.
Question 4: Which ethical principle prohibits a Florida licensee from revealing confidential client information without authorization?
- Confidentiality (Correct answer)
- Loyalty
- Obedience
- Disclosure
Correct answer: Confidentiality
The duty of confidentiality prevents licensees from sharing client information obtained during the professional relationship without the client's consent.
Question 5: A Florida contractor who discovers that a previous contractor's work is defective and does not inform the client is violating which ethical duty?
- Duty to disclose material information (Correct answer)
- Duty of loyalty
- Duty of confidentiality
- Duty of obedience
Correct answer: Duty to disclose material information
Failing to disclose known defects in previous work that could affect the client's project violates the contractor's ethical duty to disclose material information.
Question 6: Under Florida law, advertising that a contractor is licensed when they are not would be considered what?
- Fraudulent misrepresentation (Correct answer)
- False but not illegal
- Breach of contract only
- A minor ethical lapse
Correct answer: Fraudulent misrepresentation
Falsely claiming to be licensed constitutes fraudulent misrepresentation and is both a criminal offense and a DBPR violation under Florida law.
DBPR Ethics and Professional Standards 1
Which ethical obligation requires a Florida real estate licensee to act in their client's best interest?