Unit 3: Real Estate License Law & Commission Rules

Question 1

DBPR - Stands For:

How does the Secretary of DBPR get that position?

Answer 1

Department as business and professional regulation

the secretary is appointed by the governor and confirmed by the Senate

Question 2

FREC - Florida Real Estate Commission

Powers & Responsibilities

Answer 2

Make decisions and set policies that are carried out by the DRE

Question 3

The powers of the FREC fall into three general areas

Answer 3

Executive powers
Quasi-legislative
Quasi-judicial

Question 4

Executive Powers

Answer 4

The executive powers regulate & enforce the license law and are delegated to the Commission by the legislature.
The executive powers of FREC
1. Foster education of applicants and licenses
2. Adopt a sealed - document becomes Prima Facie
Evidence
3. Establish Fees

Question 5

Quasi-legislative

Answer 5

The Quasi-legislative powers of FREC give the power to enact and revise administrative rules and bylaws. Also, allows FREC to decide questions regarding the practice of real estate.

 1. Creat & pass rules & Bylaws. - Promulgates (means to adopt) rules that enforce the Florida Statutory license law.
 2. Regulate professional practice.

Question 6

Quasi-judicial

Answer 6

The Quasi-judicial powers of FREC give the power to grant or deny license applications and determine license law violations, and administer penalties.

 1. Grant or Deny license applications.
 2. Suspend or Revoke and impose administrative fines. 
 3. Makes determinations of violations.
     a. Obligated to report any criminal violation of chapter 475, to the state's attorney having jurisdiction to regulate & enforce the license law. Delegated to the Commission by the legislature.
     b. Also, must inform the Division of Florida Condos, Timeshares, and MH when any disciplinary action is taken by FREC against licensees.

Question 7

FREC Compensation

Answer 7

FREC is compensated $50 a day for each day they participate in Commission Business and reimbursed for out-of-pocket travel expenses associated with their official duties.

Question 8

Involuntary Inactive Status

Answer 8

License status will be placed on Involuntary Inactive Status when an “active” or “voluntary inactive” license fails to renew. *Other than first renewal (also called initial license period).

Question 9

If a license status is involuntary inactive due to non-renewal -

Answer 9

You have 2 years to renew and complete CE to return the license back to voluntary inactive or active status.

Question 10

A non-renewed involuntary inactive status license for more than 2 years.

Answer 10

Will automatically become (N&V) Null & Void

 1. By operation of law
 2. Without further FREC or DBPR action

Question 11

DBPR Expiration of License

Answer 11

Sent 90 days prior to the expiration of the involuntary inactive license.

Question 12

Once License has become N&V due to non-renewal, the initial licensing process must be completed once again in order to become a licensed real estate sales associate.

Answer 12

Must reapply - Complete application, fingerprinting, criminal background check, approval to sit for 63 pre-license class/exam, and pass the state exam.

Question 13

A non-renewed license placed on involuntary inactive status for not more than 2 years may reinstate to voluntary active or active status upon satisfactorily completing FREC prescribed course of instruction based on how long the license has been on involuntary inactive status.

Answer 13

If the license has been involuntary inactive status for

1. 12 months or less - take 14 hours of FREC approved CE
2. More than 12 months but less than 24 months - take 28 hours of prescribed CE

Question 14

If Broker’s License is Suspended or Revoked the sales associate’s license becomes

Answer 14

Involuntary Inactive

Question 15

Reasons for N&V License

Answer 15

!. Involuntary Inactive Status more than 2 years

2. Revoked License after disciplinary proceedings. Revocation is permanent (forever).
3. Failure to complete the Post License CE requirement before the expiration of the initial license.
4. Voluntary Relinquish or Cancel License by licensee provided no investigation or disciplinary proceedings pending against them.

Question 16

To voluntary relinquish or cancel a license that is not currently being investigated or has pending disciplinary proceedings a licensee must do the following;

Answer 16

1. Send written communication to DBPR indicating retiring or no longer desire to be licensed.
2. The effective date is the date the commission accepts the voluntary relinquishment.
3. When canceled, the license becomes N&V
4. Cancellation of a license does not involve disciplinary action.

Question 17

If a resident licensee moves out of state how long do they have to notify DBPR?

Answer 17

60 Days

Question 18

A non-resident licensee has how many days to notify DBPR that they have moved?

Answer 18

10 Days

Question 19

Multiple Real Estate License are only issued to ___________.

Answer 19

Brokers
Brokers may qualify for more than one business entity.
However, each business entity requires a separate broker’s license.

Question 20

Can a Broker Associate hold more than one license at a time?

Answer 20

No and Sale Associates may not hold more than one license at a time.