Chapter 2 - License Law and Qualifications for Practice Flashcards
License
- Piece of paper in pocket
- Prima facie evidence that person holds current and valid licensure
- Includes name and license number
Licensee
The person who holds a license
Registration
- Status
- Having name and address in computer
- All persons holding licensure also have registration but not all persons having registration hold licensure
Licensure
- Status
- Having name in computer qualifying a person as a broker or sales associate
- The right to ask for a license
- Status obtained by passing state exam
Real Estate License required IF
- Person pefromes A BAR SALE service, involving real estate in Florida, FOR ANOTHER FOR COMPENSATION or implied intent to collect compensation UNLESS specifically exempt
A BAR SALE =
Advertise Real Estate Service
Buy, Appraise, Rent or provide rental information or lists
Sell, Auction, Lease, Exchange
A BAR SALE services
- Advertise
- Buy
- Appraise
- Rent or provide rental information or lists
- Sell
- Auction
- Lease
- Exchange
License also required IF
- Advertises engaged in business of providing agency services
- Takes part in procuring sellers, purchasers, lessors, lessees, or in negotiation or closing of real estate transaction
- sell timeshare plan
Operating as Broker of Sales Associate
Single act constitutes operating
Legal Presumption
- A person who sells or leases real estate which he or she does not own (hold legal or equitable title) is **presumed **to be acting as a broker or sales associate
- Burden of proof is on such person to show not acting as broker or sales associate
Contract to Employ Unlicensed Person
Contract, option or other device employed to permit unlicensed person to sell or lease real estate is null and void
Real Estate For Purpose of Licensure
- Any interest or estate in land
- Any interest in business enterprise or opportunity
- Including assignment, lease, leashold, sublease hold, or mineral right
- timeshares
Not Real Estate for Licensure
- Cemetery lot
- Renting of mobile home lot in mobile home park
Compensation For Services
Paid or promised or with intent or expectation to collect or receive anything of value
Performance of Service
Prima facie evidence of expectation to be paid
Payment of Unlicensed Person
- Violation of Chapter 475
- including payment of referral fees
- Attorneys not exempt
Compensation to Foreign Broker
- Not violation if paid by Florida broker to foreign (outside Florida) broker and Foreign broker does not violate any law of Florida
- Foreign broker may pay compensation to Florida Broker
Owner
- Exempt when he or she buys, sells, exchanges or leases own real estate
- However exemption not available if agent, employee, or independent contractor is compensated strictly on a transaction basis
Part-owner (General Partner)
- Exempt unless receives a larger share of profits from sale of partnership real property than proportional investment would justify.
Profits must be paid in direct proportion to ownership interest
Owner of Timeshare
Exempt if owns for use and occupancy and later offers for resale
Leasing Agent for apartment
Exempt if salaried employee, works in on-site rental office, in leasing capacity (NO LIMITS ON LENGTH OF LEASE)
Managers of Condominium and Cooperative
Exempt if employed for a salary and if rentals are for periods no greater than 1 year
Attorney-In-Fact
Exempt for purpose of execution of contracts and conveyances only (Agentl appointed under a Power of Attorney)
Attorney-At-Law
- Exempt within scope of his duties as attorney
- NOT exempt when performing services of real estate for compensation, including referral of clients and prospects
Court Appointee
Personal Representative (PR), receiver, trustees, Master in Chancery, or Special Master is exempt when apponted by will or by order of court
Property Management Firm
Or apartment property owners may NOT pay a finder’s fee of more than $50 to a tenant of the complex for a rental referral
Employee of Public Utility
Rural electrict coop, railroad, or governmental agency is exempt within scope of employment and only regular salary is received for service
Person Selling Personal Property
Chapter 475 covers only real property; sale of mortgage secured by real estate is not violation of 475 (a mortgage is personal property)
Broker
Provide A BAR SALE services for another for compensation; including general partner of real estate brokerage partnership, officer or director of a real estate brokerage corporation
Sales Associates
- Perform any act specified in definition of broker but must perform act UNDER direction, control, or management of another person
- May be licensed as professional corporation, limited liability company, or professional limited liability company
- License issued in licensee’s legal name and if appropriate include P.A., LLC or PL (or PLLC) after name
Classification of Individual Licenses
Broker, Sales Associate, Broker-Associate
Employer of Sales Associate
- Only 1 broker or 1 owner-developer
- “Employment” including independent contractor relationship
- Sales associate can manage branch office
Onwer-developer
Unlicensed entity which, sells, exchanges, or leases its own property
Registered Owner-Developer
A developer registered with DBPR; employs licensees for commission sales
Broker-Associate
Qualified to be a broker but operates as a sales associate in the employment of another
Qualifications for practice
- 18 years of age
- High School diplioma or its equivalent
- No residenc required to take state examination
- US citizenship not required
- Must have Social Security Number
- Person of good character
- Not operated in violation of Chapter 475 within 1 year prior to application
Applicant Not Resident
- No residency required to take state exam
- Must sign and file “irrevocable consent” to allow Florida to commence suits and actions in Florida and allows for delivery of notice of legal actions to be made to the Director, DRE, with copy to licensee
Licensee Become Nonresident
- Notify FREC of change of mailing address within 10 days
- File “irrevocable consent” to service within 60 days
Applicant Not Qualified IF
- Had license denied, suspended or revoked in any regulated profession in Florida or any other state, nation, posseision, or district of the United States
- FREC can approve application if lapse of time, good conduct, and public will not likely be endangered
Education Pre-Requisite For Sales Associate
- Satisfactorily complete Course I (63hrs)
- Exemption for person with a 4-year degree in real estate
- Exemption for active member of Florida BAR
Education Pre-Requisite For Broker
- Satisfactorily complete Course II (72hrs)
- Must also complete 45 hr sales associate post license course prior to Course II
Experience Pre-Requisite For Broker
Active license for 24 months during preceeding 5 years in office 1 or more real estate brokers in Florida or any other state, territoy, possession of US or Foreign National License jurisdiction
Application for Licensure
- Application,
- proper fee,
- course completion certificate, and
- electronic fingerprints
Disclosures on Application
- Convictions resulting from legal proceedings against applicant
- Treatment for mental illness
- Completed action against real estate licensee by licensing agency of another state
Expiration of Application
2 years from date received by DBPR
Expiration of Course Completion Slip
2 years from the date of successfully passing the end of course exam if applicant has not successfully passed the state exam
Processing of Application
- DBPR has 30 days to determine if complete
- DBPR has 90 days to approve or deny application
- Commission may intervene on behalf of either applicant or DBPR
Applicant Under Investigation
DBPR not issue license until investigation is complete and disciplinary proceedings have been terminated
Applicantion Denied
Applicant receives copy of order, reasons for denial, notice of 21 to request a hearing
Right to Review Exam
Within 2 years, last exam taken
Certain Information Confidential
- Financial Information
- Medical Information
- School transcripts
- Examination questions and answers
Initial Application Fee
- Broker $115
- Sales Associates $105
- $31.50 test fee
Electronic Fingerprinting Fee
$57.25
Biennial Renewal Fee
- Broker $90
- Sales Associate $80
- $ 5 unlicensed activity fee for all renewals
Group License
- Employment by more than one entity
- One owner-developer may provide proof or properties owned in name of various entities but ownership and control in same individual(s)
- Sales Associate or broker-associate may be issued group license
- usual form
Multiple License
- Additional Licenses
- Applies to brokers only (not sales associate or broker-associate)
- Must show additional licenses necessary to conduct brokerage business and will not be prejudicial to any person
Active Status
- File appropriate form with employment information
- Required to operate as broker or sales associate
Officers and Directors (General Partners)
- Active broker status required if perform sales, direct sales force, direct advertising, contact with owners or investing public
- Active status not required if no duties, only clerical duties, accounting, office policy and procedures
Contract for Compensation
- No contract for commission valid unless licensee has active status at time act or service was performed
- May be paid while holding inactive status
Void License Status
- Had no license
- Lincese null and void due to:
- failure to complete post license education or expired more than 2 years
- Revoked by FREC
- Cancelled by FREC by request of licensee
Ineffective License Status
Has license but cannot use it
- Voluntarily inactive
- Involutary inactive or suspended by FREC
Voluntary Inactice Status
- License has requested inactive status
- License may be activated upon request
- Licensee may renew as inactive indefinitely
Involuntary Inactive Status
- Status when license (other than initial license) is not renewed
- After 2 years in this status, license will automatically void
- When only broker of a brokerage is no longer active (suspended or revoked) all licenses become involunatrily inactive
Post License Eduaction For Sales Associate
- 45 classroom hours prior to first renewal
- If post license education not completed prior to initial expiration, license is null and void
Post License Education for Broker
- 60 classroom hours prior to first renewal
- If post license education not completed prior to initial expiration date, broker license is null and void
- May be issued sales associate’s license b completing continuing education requirement within 6 months after expiration
Licensees With Physical Hardship
- May be allowed additional 6 months to complete post license education
- courses may be available by correspondence
Exemption From Post License Education
License with a 4 year degree in Real Estate
Continuing Education
- 14 hours during each biennial license period, excluding first renewal period (post license education required)
- Applies to active and inactive brokers and sales associates
Classroom Instruction
Satisfied by attending a minimum of 90% of classroom hours
Correspondence Course
- Study text
- Complete end of chapter quizzes
- Score 80% or higher on open book final examination
Exemption from Continuing Education
Member of Florida Bar
Member of Florida Bar
- Sales Pre Course exempt
- Sales Post Course requirement not exempt
- Broker Pre course requirement not exempt
- Broker Post Course requirement not exempt
- Continuing Education exempt
4 Year Degree in Real Estate Requirements
- Exempt from Sales Pre and Post requirements
- Exempt from Broker Pre and Post requirements
- Continuing Education not exempt
Reactivation Education
- involuntary inactive status for 1 year or less - 14 hours or correspondence
- involuntary inactive status for more than 1 year - must take commission-prescribed 28 hour reactivation course and pass reactivation course exam
Issues of License
- Initial
- Renewal
- Reissue
Initial Issue
- First license as sales associate or broker
- effective date is date applicant passes the state exam
- Upon passing the exam, status is inactive
- Status is active when reqeust is received by DBPR
- Expiration date is date indicated on license
Expiration Date (license)
- All licenses, permits and registrations expire on either March 31 or September 30
Renewal Issue
- Biennial renewal
- Notice 60 days prior to end of license period
- Retain certificate of course completion for at leas 2 years (random audits)
Responsibility of Broker
Ensure that all licensees of the firm have a current, valid and active license
Effective date of renewal
- Application received on or before expiration date day following expiration
- Application received after expiration - date application received by DBPR
Member of Armed Forces
- Had license at time of becoming a member, kept in good standing without registering
- Paying fees, or performing any act while on active duty and 6 months after discharge, provided not engaged in practice of real estate for profit
- Similar provision for spouse only applies in cases of licensee’s absence from the state because of member’s duties
Reissue License
Replacement license
Change of Name or Address
- Notify DBPR using appropriate form
- Applies to change of resident mailing address
- Notify within 10 days
License Ceases to be in Force
- When broker or school changes business address
- Sales associate or instructor changes employer
- Until DBPR is notified ($500 citation if later than 10 days after change)
- Both sales associate and broker must notify DBPR when sales associate ends employment
Change of principal office address
- Business entity must request reissue of license
- Everyone licensed with that entity is attached to that business entity’s license and address change
License Lost or Destroyed
- Submit affidavit
- Request reissue
- Deliver old license to DBPR if found
- Duplicate $25
Broker Suspended or Revoked
- License of all sales assocaites and broker-associates automatically becomes involuntary inactive
- License is inactive until new employment or connection secured
Reinstatement after Discipline
- Commission must certify that licensee has complied with terms and conditions of final order
- $55 reinstatement fee
