Chapter 2 Flashcards
What is the purpose of real estate law?
To protect the public
What is Caveat Emptor
principle in effect prior to statutory law that “let the buyer beware” on property defects
When was the first Florida real estate license law enacted?
1923
Which Florida Statute deals with real estate law?
FS 475
When are you required to have a Florida real estate license?
When you’re performing a real estate service
in the state of Florida
for someone else
for compensation
Which statutory services of real estate require a real estate license?
Appraising
Buying
Auctioning
Renting
Selling
Advertising
Leasing
Exchanging (a bar sale)
Who is exempt from having to have a Florida Real estate license?
Attorneys in fact (Power of Attorney)
Attorneys at Law
Certified Public Accountants
Court Appointees
Salaried Employees
Cemetery lot salespersons
Salaried Condo Managers
Individuals selling their own property
Corporations buying/selling their own real estate
What qualifications are needed for a real estate license?
Have a SSN
Be 18 years of age
have a high school degree or equivalent
Honest, truthful, trustworthy, good character, have a good reputation for fair dealing
Not required to be a Florida resident or be a US citizen
What is the Mutual Recognition agreement?
Agreement with certain states that recognize the similarity in the content of education and licensing requirements for real estate licensing.
What is a Broker?
An individual that performs services of real estate for another and receives compensation for those services
What is a sales associate?
an individual whom is employed by a broker or an owner-developer to perform services of real estate
What is a broker associate?
an individual whom is qualified to receive a broker’s license but chooses to be employed by another broker or owner-developer
acts only as a sales associate
What is an owner-developer?
an individual or entity who is in the business of buying, owning, and/or developing real estate and hires a sales person to sell their property
How much experience is necessary in order to qualify for a broker’s license?
24 months working for an actively licensed broker within the last 5 years.
Working for a developer does not qualify
What are the educational requirements for licensing and renewal?
Pre-licensing and state exam to obtain license
Post-licensing for the first renewal
Continuing Education (CE) for all subsequent 2-years
Who needs to be licensed and registered with the DBPR?
Brokers, Sales associates, Broker Associates
Who is required to register with the DBPR but not licensed?
Owner-developers
Brokerage corporations
Partnerships (general partnerships)
Branch offices
Who can buy, sell, or perform services of real estate for without a licensed?
Individuals that are:
- performing these services for themselves
- performing the service for a friend (no compensation)
- Florida court appointee sent to perform services of real estate for a fee (no commission)
- selling cemetery lots
- Corporation that sells, exchanges, or leases real estate property owned by the corporation
Is someone performing an auction on behalf of another for a fee required to have a real estate license?
Yes, they are being compensated
Is someone selling a timeshare unit on behalf of someone else for compensation required to have a real estate license?
Yes, they are being compensated
Is someone leasing a property on behalf of someone else for compensation required to have a real estate license?
Yes, they are being compensated and aren’t salaried employees
What are the steps to receive an initial (inactive) sales associate license?
- Take 63 hour pre-licensing course (pass with 70%)
- Submit state application and pay fee
- Submit fingerprints for background check
- Pass the state exam (75% to pass)
How is a sales associate license activated?
by obtaining employment and registering with a broker with an active license or an owner-developer
Which convictions need to be disclosed in the DBPR license application?
ALL convictions including misdemeanors convictions, regardless of adjudication. Including a DUI, but not minor traffic offenses.
When would an application be denied “without prejudice”?
If you application is incomplete or it is missing payment or signature
How long does an applicant have to take and pass the state exam once their application has been approved by the DBPR?
2 years
How long does an applicant have in order to request a formal hearing for a denial of a license application by DBPR?
within 21 days of having received the written notification of the application denial
Whom can a sales associate or broker associate receive compensation from for performing real estate services?
their broker or the owner-developer they work for
What exemption is given to Florida attorneys whom are in good standing with the Florida Bar?
not required to take the 63 hour pre-licensing course, but must pass the state exam
What exemption is given to individuals with a 4 year degree or higher in real estate?
not required to do 63 hour pre-licensing course of 45 hour post-licensing. Must still pass state exam
What steps are needed for a sales associate’s first license renewal?
45 hour post-licensing course within 2 years (pass with 75%), pay renewal fee
What is the continuing education requirement for sales associates and broker associates?
14 hour course every 2 years, pay DBPR renewal fee
Who is responsible for complying with license renewal requirements and deadlines?
The licensee
What information is on the real estate license?
- Name of licensee
- Type of license
- Licensee’s address
- Effective date
- Expiration date
- Seal of the state of Florida
- Name of the Governor (not signature)
- Name of the Secretary of the DBPR
What is the status of your license if you fail to complete the first renewal requirements on time?
Null and Void (no grace period)
What is the status of your license if you fail to complete required continuing education renewal requirements on time?
Involuntary inactive (for 2 years)
How long should a licensee keep their completion certificates for pre-licensing, post-licensing, and CE course?
At least 2 years
