Chapter 02 - Real Estate License Law and Qualifications for Licensure (P08) Flashcards
Purpose of the real estate license law
To protect the public
Principle in effect prior to statutory law that “let the buyer beware” on property defects
Caveat Emptor
Date that the first Florida real estate license law was enacted
1923
Florida statute prescribing the real estate license law
Florida Statute (F.S.) 475
Four simultaneous conditions requiring a Florida real estate license
- Performing a Service of Real Estate
- In the State of Florida
- For another
- For compensation
Persons or entities that are exempt from Florida real estate licensure requirements under the law
- Attorneys in fact
- Attorneys at law
- CPAs
- Court appointees
- Salaried employees
- cemetery lot salespersons
- salaried condo managers
- individuals selling their own property
- corporations buying or selling their own real estate
Statutory services of real estate requiring a real estate license
“A BAR SALE”
A - Appraising
B - Buying
A - Auctioning
R - Renting
S - Selling
A - Advertising
L - Leasing
E - Exchanging
Qualifications for a Florida real estate license
- Social Security Number
- 18 years of age or older
- High school diploma or equivalent
- Honest, truthful, trustworthy, of good character
- Have a good reputation for fair dealing
(Florida Residency or U.S. citizenship not required)
Agreements with certain states that recognize the similarity in the content of education and licensing requirements for real estate licensing
Mutual Recognition
A licensed individual who performs the services of real estate for another and receives compensation for those services
Broker
A licensee who is qualified to receive a broker license, but chooses to be employed by an actively licensed broker or owner-developer acting as a sales associate
Broker Associate
A licensed individual who is employed by either a broker or owner-developer to perform services of real estate
Sales Associate
An individual or entity who is in the business of buying, owning, and/or developing real estate and hires sales person to sell their property
Owner-Developer
The experience necessary to qualify for a broker license
Employed by an actively licensed broker as an active sales associate for 24 months of the last 5 years (employment by an owner-developer does not count)
Educational requirements (steps) in the licensing and renewal process
- Pre-licensing and state exam to obtain the initial license
- Post-licensing for the first renewal
- Continuing Education (CE) for all subsequent 2-year renewal periods
Individuals or entities that must both be licensed and registered with the DBPR
Brokers, Sales Associates, Broker Associates
Individuals or entities in Florida that must be registered with the DBPR, but are not required to be licensed
Brokerage corporations, partnerships, branch offices, and Owner-Developers
Individuals in Florida who buy, sell, or perform services of real estate for themselves
Exempt from Licensure (individuals may perform services of real estate for themselves without a license)
An individual who performs a service of real estate in Florida as a favor for a friend without receiving any compensation
Exempt from Licensure (Since no compensation was provided)
Individual who auctions Florida real estate on behalf of another for a fee
Non Exempt (a Florida real estate license is required)
A Florida court appointee to perform services of real estate for a fee
Exempt from Licensure (they may do so for a fee or salary without a real estate license, but not for a commission)
An individual who sells Florida timeshare units on behalf of other owners for compensation
Non Exempt (a Florida real estate license is required)
An individual who sells cemetery lots in Florida
Exempt from Licensure
An individual who leases Florida residential property on behalf of others for compensation
Non Exempt (A Florida real estate license is required)
A Florida corporation that sells, exchanges, or leases real property owned by the corporation
Exempt from Licensure
Steps in the licensing and renewal process
- Pre-licensing and state exam to obtain the initial license
- Post-licensing for the first renewal
- Continuing Education (CE) for all subsequent 2-year renewal periods
Steps to obtain an initial (inactive) sales associate license
- Take 63-hr pre-license course and pass final exam (70% or higher)
- Submit state application and fee
- Submit electronic fingerprints, used for background check
- Pass the state exam (75% or higher)
Activation of a sales associate
Obtain and register employment with an active broker or owner-developer
Criminal convictions or investigations that must be disclosed in the DBPR application for sales associate license
ANY criminal convictions in any jurisdiction, including felony or misdemeanor convictions or pleas, regardless of adjudication. Includes DUI, but not minor traffic offenses.
Conditions in which a license application would be denied “without prejudice”
Application is incomplete or contains minor error such as forgetting application fee or signature
Timeframe within which an applicant whose application was denied by the DBPR may request a formal hearing before an administrative law judge
Within 21 days from the date of receipt of the written notification of application denial
Timeframe within which a license applicant must pass the state exam once the application has been approved by the DBPR
2 years
Licensing exemption for actively licensed Florida attorneys who are in good standing with the Florida Bar
Exempt from taking the 63-Hour pre-license course and end-of-course exam, but must take and pass the state license exam
The individual or entity from whom a real estate sales associate or broker associate may receive compensation for performing services of real estate
The employing broker or owner-developer ONLY (NOT by a member of the public)
Required steps for sales associate first license renewal
- Take 45-hour post-license course and pass final exam (75% or higher)
- Pay renewal fee with DBPR
Licensing exemption for individual with 4-year degree or higher in real estate
Exempt from all pre- and post-license courses, but must pass the state licensing exam
Required steps for sales associate or broker associate continuing education renewal
- Complete the 14-hour continuing education course every 2 years
- Pay renewal fee with DBPR
The person responsible for complying with license renewal requirements and deadlines
The licensee
License status of a sales associate who failed to complete the first renewal requirements prior to the expiration of the initial license
Null and Void
Information shown on the real estate license
- Name of the licensee
- Type of license
- Licensee’s address
- Effective date
- Expiration date
- Seal of Florida
- Name of the governor (not signature)
- Name of the secretary of the DBPR
License status of a licensee who fails to complete the required continuing education renewal requirements prior to the expiration of their license (after the first renewal)
Involuntary Inactive
Length of time that a licensee should retain their completion certificates for pre-licensing, post-licensing, and CE courses
at least 2 years
