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35 Cards in this Set
- Front
- Back
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Statutes & Rules important to real estate |
F.S. 475; FREC F.S. 455; DBPR F.S. 120; Discipline Chapter 61J2; Rules |
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The Florida Legislature passed the Real Estate License Law, Chaper475 of the Florida Starutes (F.S.) |
Florida Legislature created the Florida Real Estate Commission (FREC) to administer & enforce the license law. -The Legislature granted the FREC authority to keep records & conduct investigations, as well as the power to grant, deny, suspend, & revoke licenses. -Florida Real Estate Commission is also called the Commission or FREC |
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The Division of Real Estate (DRE); |
Provides support services to the Commission - The DRE (Division of Real Estate) provides support services to the Commission (FREC aka Florida Real Estate Commission) -DRE (the Division of Real Estate) is under the DBPR (Departmenf of Business & Professional Regulation) |
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Florida Statute Chapter 475 |
The law often call the Real Estate Professional Practice Law - Establish the legal rights & responsibilities of real estate licensees & real estate appraisers - The Florida Real Estate Commission (FREC) implements, interprets, & enforces the regulatory provisions of Chapter 475 -Chapter 475 is divided into 4 parts: Part I= real estate brokerage, Part II= real estate appraisers, Part III= Commercial Real Estate Sales Commissions Lien Act, gives a broker lien rights for earned commission (only for commercial property), Part IV= Commercial Real Estate Leasing Commission Lien Act, gives broker lien rights for earned commission associated with a brokerage agreement to lease commercial real estate |
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Chapter 455 |
Business & Professional Regulation: General Provisions, defines the general legal practice & procedure for the DBPR & the licensees of all professions regulated by the DBPR, including REAL ESTATE - 455= DBPR! -Provides individual does NOT have to be U.S. citizen -Also sets forth laws regarding Commission (DBPR) & board organization, meetings, compensation, & so forth. Also concerns the unlicensed practice of a profession Requirements concerning license examinations & the use of professional testing services are also set forth in Chapter 455 -This law also mandates what actions the DBPR may take in regulating licensees. Licensees who fail to comply with this chapter can be disciplined by the FREC |
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Florida Statute (F.S.) 120 |
-Discipline -The licensing & disciplinary process for real estate licensees is outlined in this chapter 120 - Administrative Procedure Act defines the procedural process by which regulatory agencies decide and implement agency action |
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Chapter 61J2 |
= The RULES of the Florida Real Estate Commission (FREC) -A set of administrative rules developed by the FREC, pursuant to the rule making process in chapter 120 -Administrative rules aren’t published in the Florida Administrative Code (FAC). Appraisal rules are in Chapter 61J2 of the FAC |
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General Licensing Provisions 3 Categories of real estate licenses; |
1) Sales Associate= Person who performs real estate services for compensation under the direction, control, or management of a broker or an owner-developer 2) Broker=Requires additional education, experience, & passing the broker license exam. May own their own firm, in this case the broker acts more as a manager, hiring, training, and supervising real estate agents. The broker manages the firm's escrow accounts and ensures that the actions of the agents comply with real estate laws. 3) Broker Associate= a person who holds a brokers license but chooses to register & work in real estate under the direction of another broker. |
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Owner-Developer |
An unlicensed entity that sells, exchanges, or leases its own property. -An example is a real estate development company that owns lands that it develops into subdivisions and then builds & sells homes. -An owner-developers sales staff must hold active real estate licenses in order to be paid a commission or other compensation based on actual sales (transactional basis) -Owner-developer staff is exempt from needing a real estate license if they are strictly paid salary |
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Florida licensees may also hold active licenses in other states BUT: |
CANNOT WORK FOR MORE THAN ONE (1) BROKER! |
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DBPR exempts three categories of applicants from THE INITIAL LICENSING FEE |
1) Low-income applicants= initial licensing fee waived, MUST pay application fee & other fees that apply • To qualify applicants must demonstrate that their annual household income, before taxes, is at or below 130% of federal poverty guidelines 2) Military personnel & their spouses= requires INITIAL license fee be waived 3) Military veterans & their spouses= required to waive THE APPLICATION FEE, INITIAL LICENSE FEE, & THE UNLICENSED ACTIVITY FEE • The application MUST be made within 60 months after honorable discharge. If the 60 month time period is not met, military vets & their spouses can request exemption of the initial license fee |
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Applicants of individuals with a criminal history are flagged by the Division of Real Estate (DRE) |
A list of flagged applications is prepared each month (referred to as Summary Of Applicants or SOA) & places on a FREC agenda & the Commission will vote to approve or deny the application |
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Period to check for errors and omissions |
• A 30 day period is allowed after receipt of the application to check for errors & omissions & to send the applicant a ‘notice of insufficiency’ concerning any additional information required |
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Period to inform applicant of approval or denial |
•Must be informed of approval or denial within 90 days -When the commission denies an application, it sends a copy of denial to the applicant, lists the reasons, & advises the applicant has 21 days to request a hearing (in accordance w chapter 120) |
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The Occupational Opportunity Act= provides Reciprocity to active duty & former active duty members of the U.S. armed forces & their spouses •Former active duty members must have been honorably discharged •For a Surviving spouse, the member must have been serving on active duty at time of death. |
-Reciprocity= The practice of mutual exchanges of privileges. Applies to all professional licenses issued by the DBPR, including real estate. -At time applicant must currently hold a valid license, must submit fingerprints for background check •Initial fees are waived EXCEPT fingerprint fee for reciprocity! •After passing background check, DBPR issues reciprocal real estate license without requiring applicant to complete PRE-license education or take state exam. •Once license is issued, licensee is responsible for complying with license renewal requirements, including applicable renewal fees !Florida does NOT have reciprocity w any other state |
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Applicants are not required to be residents of Florida |
FREC defines a Florida resident as a person who has resided in Florida continuously for a period of four calendar months or more within the preceeding year (wether in a vehicle, hotel, rental unit, or other temporary or permanent location) -This is the test used to determine wether an applicant for licensure qualifies as a nonresident under mutual recognition. |
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Mutual Recognition Agreements |
-To recognize the education & experience of individuals licensed in another state or nation when the other jurisdiction has education & experience requirements comparable to Florida’s requirements *This agreement applies EXCLUSIVELY to NONRESIDENTS who are licensed in other jurisdictions -A resident of Florida who is licensed in a mutual recognition state CANNOT apply for a Florida real estate license under mutual recognition. |
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If a holder of a real estate license from a state with which Florida has a mutual recognition agreement desires a Florida real estate license, the individual submits a Florida real estate license application -Must obtain a certification of license history from Real Estate Commission in the state where applicant is licensed. • Certification must contain: applicants initial license exam information, current license status, # of active months of licensure within the preceeding five years, & wether any disciplinary action has been taken against the licensee. -Real Estate applicants approved for licensure under mutual recognition are exempt from the prelicense education course, however must past a 40 question test with a 75% or higher -Must fulfill them post license and continuing education |
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U.S. citizenship is NOT required to become licensed. Qualifications for a Real estate license are: |
•Be 18 years or older •Have high school diploma or equivalent •Have U.S. social security # •Honest, trustworthy, good character •Be competent & qualifiedcto make real estate transactions |
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When completing an application for licensure, the applicant must disclose: |
•Wether they’ve been convicted or found guilty of a crime, pleaded nolo contendere (no contest), or currently under investigation •If they’ve done business under any “also known as” AKA or alias other than what’s on application •Wether applicant has had disciplinary action against a license (revocation,suspended,surrender,etc) •Has has an application for real estate license denied (Real estate license application is valid for 2 years from the date the complete application is received by the DBPR |
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Education requirements |
Sales associate candidates must complete the Commission-prescribes pre-license course (Course1) or about equivalent FREC approved prelicense course. 63 hours 100 question test must get at least 70% |
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Exemptions to the Prelicense Course Requirement |
1) Attorneys who are active members of the Florida Bar are exempt from Course 1 2) Individuals who have received a four year degree or higher in real estate from accredited institution of higher education are exempt from Course1 (prelicense course) |
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4-year or higher real estate degree: exempt from a)Prelicense course I b)Prelicense Course II c)Post-License Education NOT EXEMPT FROM: Continuing Education! |
Florida-Licensed Attorney is exempt from: a)Prelicense Course I & b)Continuing Education NOT EXEMPT FROM: a)Prelicense Course II & b)Post-License Education |
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Must get 75% on license exam |
Once you pass, new sales associate must change their license to active status before legally operating as a sales associate -That is accomplished by getting hired by a broker and submitting the DBPR form |
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Post-Licensing Education |
Sales associates are required to successfully complete a prescribed 45 hour post licensing education requirement BEFORE their first renewal of their license -Failure to complete the post licensing education will cause the initial license to become null & void by operation of law ! Those who do not complete the post license education & want to continue real estate are REQUIRED to repeat the Prelicense course, end of course exam, and pass the state licensing exam -Must pass 45 hour post license education with a 75% or higher |
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Continuing Education |
After completing the post-licensing education requirement during the initial license period, active AND inactive licensees must complete at least 14 hours of continuing education during every 2 year license period after that • 3 of the 14 hours must consist of core law & a 3 hour business ethics course -A licensee may substitute attendance at one legal agenda session of the FREC for 3 classroom hours of specialty continuing education (CE) credit only one time per renewal cycle -Must notify the DRE seven days in advance of intent to attend the FRECs legal agenda session |
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Broker applicants |
Must successfully complete Course II or an equivalent FREC approves course. •Course II consists of 69 hours of instruction plus 3 hours for end of course exam. -Applicants must fulfill an experience requirement in addition to the education requirement |
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A broker applicant can fulfill the experience requirement in one of three ways: |
1) Applicant has held an active sales associate license under one or more real estate brokers for at least 24 months during the 5 year period preceeding application 2) Applicant held an active sales associate license while working as a salaried employee of a governmental agency for at least 24 months during the 5 year period preceeding application to become Florida real estate broker 3) Applicant has held an active broker license in another state for at least 24 months during the 5 year period preceeding application |
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Broker licensees are required to successfully complete post-licensing education before the first renewal of their license • 60 hour requirement -If post licensing not completed, brokers license becomes null and void, however broker may request & receive a sales associates license after completing 14 hours of continuing education within the 6 months following expiration of brokers license. |
- Broker licensees must complete same continuing education requirements required for sales associates |
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Registration is the process of submitting information to the DBPR that is entered into the Departments records. |
Information placed on record with the DBPR include: -The name & address of each licensed broker & sales associate -Name & business address of each sales associates employer -License status (active or inactive) -Persons involvement as an officer, director, or partner of a real estate business |
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Sales associate & broker associates may only have ONE registered employer at any given time |
Florida licensees may also hold active licenses in other states |
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The license indicates: |
•The licensees full name and address •Type of license •License # •Effective Date •Expiration date •Name of governor •DBPR secretary |
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The 2 letter prefix before the license # indicates license type |
BK= Broker SL= Sales associate BL= Broker associate BO= Branch office CQ= Corporations& LLCs PR= Partnerships & LLPs |
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Real estate services |
Advertise. Buy. Appraise. Rent or provide rental information. Sell. Auction. Lease. Exchange. |
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Exemptions from a real estate license |
1) Owner exemptions= individuals & business entities selling their own property a)Property owners b)Officers & directors of corporations c)Partners in a real estate partnership d)Owners of time shares 2) Exemptions based on Career a)Attorneys at law b)Certified Public Accountant (CPAs) c)State certified & licensed real estate appraisers 3)Salaried Employees - Cannot receive compensation 4) Court & legally appointed persons= Sometimes a court of law will require an unlicensed individual to liquidate real estate. Sometimes an individual may authorize another person to sign legal documents on their behalf (An attorney-in-fact) 5) Miscellaneous Exemptions= a)individuals who rent lots in mobile home park or recreational travel park b)Persons who sell cemetery lots c) Dealers registered with Securities & Exchange Commission (SEC) selling business enterprises to accredited investors d) hotel/motel clerks who rent transient occupancy of publix lodging e)Tenants of apartment community may receive up to 50$ for referral |
