Chapter 2

Question 1

What is the purpose of real estate law?

Answer 1

To protect the public

Question 2

What is Caveat Emptor

Answer 2

principle in effect prior to statutory law that “let the buyer beware” on property defects

Question 3

When was the first Florida real estate license law enacted?

Answer 3

1923

Question 4

Which Florida Statute deals with real estate law?

Answer 4

FS 475

Question 5

When are you required to have a Florida real estate license?

Answer 5

When you’re performing a real estate service
in the state of Florida
for someone else
for compensation

Question 6

Which statutory services of real estate require a real estate license?

Answer 6

Appraising
Buying
Auctioning
Renting
Selling
Advertising
Leasing
Exchanging (a bar sale)

Question 7

Who is exempt from having to have a Florida Real estate license?

Answer 7

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

Question 8

What qualifications are needed for a real estate license?

Answer 8

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

Question 9

What is the Mutual Recognition agreement?

Answer 9

Agreement with certain states that recognize the similarity in the content of education and licensing requirements for real estate licensing.

Question 10

What is a Broker?

Answer 10

An individual that performs services of real estate for another and receives compensation for those services

Question 11

What is a sales associate?

Answer 11

an individual whom is employed by a broker or an owner-developer to perform services of real estate

Question 12

What is a broker associate?

Answer 12

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

Question 13

What is an owner-developer?

Answer 13

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

Question 14

How much experience is necessary in order to qualify for a broker’s license?

Answer 14

24 months working for an actively licensed broker within the last 5 years.
Working for a developer does not qualify

Question 15

What are the educational requirements for licensing and renewal?

Answer 15

Pre-licensing and state exam to obtain license
Post-licensing for the first renewal
Continuing Education (CE) for all subsequent 2-years

Question 16

Who needs to be licensed and registered with the DBPR?

Answer 16

Brokers, Sales associates, Broker Associates

Question 17

Who is required to register with the DBPR but not licensed?

Answer 17

Owner-developers
Brokerage corporations
Partnerships (general partnerships)
Branch offices

Question 18

Who can buy, sell, or perform services of real estate for without a licensed?

Answer 18

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

Question 19

Is someone performing an auction on behalf of another for a fee required to have a real estate license?

Answer 19

Yes, they are being compensated

Question 20

Is someone selling a timeshare unit on behalf of someone else for compensation required to have a real estate license?

Answer 20

Yes, they are being compensated

Question 21

Is someone leasing a property on behalf of someone else for compensation required to have a real estate license?

Answer 21

Yes, they are being compensated and aren’t salaried employees

Question 22

What are the steps to receive an initial (inactive) sales associate license?

Answer 22

• 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)

Question 23

How is a sales associate license activated?

Answer 23

by obtaining employment and registering with a broker with an active license or an owner-developer

Question 24

Which convictions need to be disclosed in the DBPR license application?

Answer 24

ALL convictions including misdemeanors convictions, regardless of adjudication. Including a DUI, but not minor traffic offenses.

Question 25

When would an application be denied “without prejudice”?

Answer 25

If you application is incomplete or it is missing payment or signature

Question 26

How long does an applicant have to take and pass the state exam once their application has been approved by the DBPR?

Answer 26

2 years

Question 27

How long does an applicant have in order to request a formal hearing for a denial of a license application by DBPR?

Answer 27

within 21 days of having received the written notification of the application denial

Question 28

Whom can a sales associate or broker associate receive compensation from for performing real estate services?

Answer 28

their broker or the owner-developer they work for

Question 29

What exemption is given to Florida attorneys whom are in good standing with the Florida Bar?

Answer 29

not required to take the 63 hour pre-licensing course, but must pass the state exam

Question 30

What exemption is given to individuals with a 4 year degree or higher in real estate?

Answer 30

not required to do 63 hour pre-licensing course of 45 hour post-licensing. Must still pass state exam

Question 31

What steps are needed for a sales associate’s first license renewal?

Answer 31

45 hour post-licensing course within 2 years (pass with 75%), pay renewal fee

Question 32

What is the continuing education requirement for sales associates and broker associates?

Answer 32

14 hour course every 2 years, pay DBPR renewal fee

Question 33

Who is responsible for complying with license renewal requirements and deadlines?

Answer 33

The licensee

Question 34

What information is on the real estate license?

Answer 34

• 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

Question 35

What is the status of your license if you fail to complete the first renewal requirements on time?

Answer 35

Null and Void (no grace period)

Question 36

What is the status of your license if you fail to complete required continuing education renewal requirements on time?

Answer 36

Involuntary inactive (for 2 years)

Question 37

How long should a licensee keep their completion certificates for pre-licensing, post-licensing, and CE course?

Answer 37

At least 2 years