license Requirements and excemptions Flashcards
general license provisions
455.10, F.S.; 475.17, F.S.; 61J2-2.027
Be at least 18 years old
Have a high school diploma or the equivalent
Be honest, trustworthy, and of good moral character
Be competent and qualified to make real estate transactions
Have a social security number and be legally able to work in the U.S., though citizenship is NOT REQUIRED (455.10, F.S.)
can be a non US citizen with the right to work on the US
must disclose
Are under investigation for a crime, convicted of a crime, or entered a plea of guilty or nolo contendere to a crime (a nolo contendere plea is when criminal defendant accepts conviction as though they were guilty, but without admitting guilt)
Use any aliases or other names they use, including a maiden name if applicable
Have been denied a license by any professional licensing agency in another jurisdiction, or if a denial is pending
Have had a professional license suspended, revoked, or annulled in Florida or any other jurisdiction
Are currently under investigation by a professional licensing agency, in Florida or elsewhere
Are guilty of any conduct or practice that would have been grounds for suspension or revocation under Chapter 475, F.S.
note about social security
they will use it to see if you any child support
types of real state license in Florida
(475.01, F.S.).
broker
sale asscociate
brokers associates
broker
a person or business entity who is licensed to represent one of the parties in a real estate transaction in exchange for a commission or other valuable consideration. A broker supervises sales associates and broker associates.
sale associates
is a real estate license holder who is associated with a licensed broker for the purpose of performing real estate brokerage acts on the broker’s behalf.
Salaried staff members of an owner-developer can work without a license:
A sales associate license is only necessary if the employee is paid commission.
brokers associate
A broker associate is a person who has passed the broker exam, but chooses to work under a sponsoring broker.
Need a license if performing one of the many
(475.01, F.S.)
Negotiating
Advertising real estate services
Selling
Appraising
Leasing
Buying
Renting
Auctioning
Closing on property or businesses
Exchanging property or businesses
NASAL BRACE!
Compensation
475.01
no freebies
no sharing
Presumption of Doing Real Estate (475.43, F.S.)-
Even if you don’t get compensated, if you advise someone on their real estate dealings, you or your broker could be held liable
Exempt from licensing
(475.011 F.S.)
- Property owners- The owner of a property, whether that’s a person or a firm, can manage or perform other real estate activities for their own property (or properties) without a license
just as long as they don’t get paid on a commission basis for selling the property. Additionally, timeshare owners can sell their own timeshare as long as it was bought for personal use.
Also, note that non-licensed property owners selling their own property can only receive as much of the profit as the amount they own, proportionally. So if you own 60% of a property, and you sell it yourself, you can only get a maximum of 60% of the profit. Otherwise, you’re technically being compensated for performing real estate services for others.
Exemption #2: Court-Appointed Individuals
An unlicensed individual acting as an officer of the court can engage in some real estate activities as long as it’s in the context of their authority. They may be a receiver, trustee, administrator, executor, etc.
Exemption #3: CPAs
A Certified Public Accountant can practice real estate as long as it’s within the bounds of their normal duties.
Exemption #4: Salaried Property or Leasing Managers
A person who works in the leasing office of a building, or who acts as an employee manager of a condo or co-op building can find tenants and sign leases, as long as the leases are for no more than a year. Additionally, they MUST BE SALARIED. If they receive commission from finding tenants, they must be licensed.
Also, property managers of community associations with more than 10 units or with a budget of more than $100,000 a year are required to get a community association manager (CAM) license from the DBPR. This is not a real estate license, but a completely separate kind of licensure.
Exemption #5: Attorneys in Fact
An attorney in fact is someone a person has designated to perform legal activities for them. So someone’s designated attorney in fact can sign deeds or contracts on their behalf, for no compensation.
Exemption #6: Employees of Public Utilities
An employee of a public utility, a rural electric cooperative, a railroad, or a state or local governmental agency can rent, buy, sell, appraise, exchange, auction, or lease property as part of their normal duties for their employer, so long as they aren’t paid for their work beyond their salaries.
Exemption #7: Just Regular Attorneys
Attorneys can practice real estate within the scope of their duties, but cannot be paid for it without a license.
Exemption #8: College or Grad Student Studying Appraisal
Students studying appraisal can do appraisals as long as they are under the supervision of a broker or licensed appraiser.
Exemption #9: Radio, Television, or Cable Enterprises Licensed and Regulated by the Federal Communications Commission
Here’s a weird one! Remember how in Florida, you need a real estate license to sell a business? Well, one exception to this is a salaried employee selling radio, television, or cable enterprises licensed and regulated by the Federal Communications Commission, pursuant to Communications Act of 1934. That’s for the business only — if it involves land or buildings, you still need a license.
unauthorized practice of law
The first reason why you shouldn’t give legal advice or draft legal documents is that you’re not a lawyer, so you might not actually be giving a client the right advice or creating the document correctly.
The second, and arguably more important reason not to commit unauthorized practice of law is that you could be held liable for your statements. That’s lawsuit city is what that is. Plus, you can get into hot water with the FREC, and potentially even lose your license
Exemption #10: People Registered With the SEC to Sell Businesses
Because of a federal law, people registered with the SEC to sell certain businesses to accredited investors can do so without a license.
Exemption #11: Tenant Referral Fees Under $50
Buildings can give unlicensed tenants up to $50 in referral fees for finding new tenants.
Exemption #12: Hotel and Motel Clerks
Hotel and motel clerks don’t need a license to sell transient occupancy or public lodging.
Exemption #13: Cemetery Lots
Cemetery lots aren’t considered real property in Florida, so you don’t need to be licensed to sell them.
Exemption #14: Manufactured Home or RV Lot Rentals
You don’t need a license to rent manufactured home (mobile home) lots or RV lots, because in Florida they are also not considered real property.
Exemption #15: Exchange Companies
Timeshare exchange company employees do not need to be licensed.
License Requirements for Sales Associates (455.10, F.S. 475.17, F.S. 61J2-2.027)
Pre licensing education- Sales associate applicants are required to complete Course I, a 63-hour pre-licensing education course.
Education Exemptions
Active members of the Florida Bar (so, lawyers licensed to practice in Florida)
People who have graduated from an accredited, four-year institution with a major in real estate
Licensed sales associates from states that have mutual recognition agreements or reciprocity with Florida
License Requirements for a Broker (475.17(2) (b), F.S. 61 J2-2.027, F.A.C.)
Had an active sales associate license for at least 24 months in the last five years, in Florida or another state
Held a sales associate license for 24 months in the last five years while working as a salaried employee of a governmental agency where you performed real estate activities outlined in Chapter 475
Held an active broker license outside of Florida for 24 months in the last five years
No matter where you were licensed, you must have completed the 45-hour post-licensing education before applying to take the broker exam.
