License Requirements & Exemptions Flashcards
Which of these people has the qualifications to apply for a sales associate license in Florida?
Alan, a 35-year old non US Citizen w a high school diploma and the right to work in the US
To apply for a sales associate license, a person needs to be able to legally work in the U.S., be at least 18 years old, and have a high school diploma or the equivalent.
There are three main types of real estate licensees in Florida:
broker, sales associate, and broker associate (475.01, F.S.).
Both brokers and sales associates provide services to sellers (people who sell or attempt to sell an interest in land), buyers (people who acquire or attempt to acquire an interest in land), renters, and landlords
a broker is 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.
“Sales associate” means a person who
performs any act specified in the definition of “broker,” but who performs such act under the direction, control, or management of another person.
A sales associate must be supervised by either
a broker or an owner-developer, which is an unlicensed entity that sells, exchanges or leases its own property.
Manuel has passed the broker exam, but works under a supervising broker. What kind of license does Manuel most likely have?
Broke associate
Because he is a broker, but is supervised by a broker, he is mostly likely a broker associate.
real estate activities, as defined by the state of Florida to receive compensation - Nasal Brace
Negotiating
Advertising real estate services
Selling
Appraising
Leasing
Buying
Renting
Auctioning
Closing on property or businesses
Exchanging property or businesses
compensation
According to 475.01, F.S., it’s, “valuable consideration directly or indirectly paid or promised, expressly or impliedly, or with an intent to collect or receive a compensation or valuable consideration therefor.”
It’s anything of value: a fancy dinner, a free service, flowers, wine, tickets, or any thing of value. If someone is giving you something to perform real estate services for them, you’re being compensated, and you need a license.
Alicia is studying to get her sales associate license in Florida (she’s currently unlicensed). Her friend is selling their condo but doesn’t want to pay a commission to a license holder. He asks if she’d be willing to sell it for him to get some practice in. Once it sells he’ll take her out to a fancy dinner on him. Would it be legal for her to accept this arrangement? Why or why not?
No. Taking her to dinner is compensation, and it is illegal to sell property for compensation without a license
Exemption from Licensing #1: 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. Sounds obvious, right? But that also includes officers of a corporation buying and selling the corporation’s property, 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.
if you own 60% of a property, and you sell it yourself, you can only get a maximum of 60% of the profit.
Exemption from Licensing #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 from Licensing #3: CPAs
A Certified Public Accountant can practice real estate as long as it’s within the bounds of their normal duties.
Cacie is a salaried building manager. When she has units open, she offers her current tenants a $25 gift card if they refer a tenant she ends up leasing a unit to. Is this legal under Chapter 475, F.S.? Why or why not?
Yes, it’s legal to offer tenants referral fees of up to $50 even if they are not licensed.
Non-licensee tenants can be offered up to $50 in referral fees. This is one of the exemptions to the licensing law.
Which of the following people needs to have a real estate license?
David sells cemetery lots.
Avery is selling her neighbor’s home for a commission.
Baz is selling a property his company owns.
Carolina is a salaried employee at an apartment complex who leases units to tenants.
Avery is selling her neighbor’s home for a commission.
Lola has a sales associate license. She is selling a property with a complicated easement situation that would prevent an owner from building all the way to the edge of the lot. A developer is interested in the property. Lola shared the information she had about the easement, as well as the contact information for the seller’s lawyer. Nevertheless, the developer is asking her a series of specific questions about what he can and can’t build on the property. Lola is pretty sure she knows the answers to his questions. What is the BEST response she can give in this situation?
to direct the buyer to talk to the lawyer
to tell him whatever he needs to hear to make the sale happen
to answer the questions as best she can
to promise that she’ll go down to the planning office and do some research if he puts in an offer
to direct the buyer to talk to the lawyer
must have been an active sales associate for 24 months in the last five years
sales associate
broker
both
neither
broker
must complete Course II
sales associate
broker
both
neither
broker
must be a U.S. citizen
sales associate
broker
both
neither
neither
four-year real estate degree holders are exempt from pre-licensing education
sales associate
broker
both
neither
both
Florida Bar members are exempt from pre-licensing education
sales associate
broker
both
neither
sales associate
Must have a high school degree or equivalent
sales associate
broker
both
neither
both
Must complete course I
sales associate
broker
both
neither
sales associate
must have an undergraduate degree
sales associate
broker
both
neither
neither
Briefly compare and contrast the licensing process for a salesperson and the process for a broker.
Basic qualifications are the same for both salespersons and brokers (be 18, have a high school degree, and be of good character), but brokers need additional pre-license education (Course II) and salesperson experience. Additionally, brokers need to have completed the salesperson post-licensing education. Both brokers and salespersons apply for their licensing exams, which are 100 questions.
