Florida Real Estate Principles, Practices & Law 39th Edition Unit 3: Real Estate License Law And Commission Rules

Department of Business and Professional Regulation (DBPR) Under the executive branch Secretary of Department Licenses and regulates Businesses Professionals Granted legal powers by legislature Investigate complaints Issue subpoenas Issue cease and desist orders Issue citations

Current Mailing Address The current residential address a licensee uses to receive mail PO box is acceptable mailing address Address of record Where DBPR sends official communication Mailing or email address

DBPR Division of Professions Division of Service Operations Division of Florida Condominiums, Timeshares, and Mobile Homes Division of Real Estate (DRE) Division Director Employees of DBPR Provide services needed to administer law Administrative and ministerial duties Office is located in Orlando

Florida Real Estate Commission Regulatory body charged by Florida Legislature Protect the public (consumer protection) Regulate real estate brokers, broker associates, sales associates, brokerage firms, and real estate schools and instructors Foster education of licensees

Composition and Qualifications Five members are professional (licensed) members Four must have held active licenses for five years One must be a licensed broker or sales associate who has been active two years Two consumer members never been licensed Exempt from civil liability One must be 60 years of age or older

The FREC Appointed to four-year terms by governor No salary to serve Confirmed by Florida Senate No more than two consecutive terms Accountable to the governor No salary to serve $50 per day for each day on official business Monthly meetings

Commission General Powers and Duties Executive Power Regulate and enforce license law Foster education Adopt a seal Establish fees

Commission General Powers and Duties Quasi-legislative Create and pass rules and regulations Regulate professional practices

Commission General Powers and Duties Quasi-judicial Grant or deny applications Suspend or revoke licenses and issue administrative fines Make determinations of violations

License Renewal Periods Renewal period is two years Licenses expire on March 31 or September 30 Must renew prior to expiration date Post-license or continuing education requirement must be completed Late fee charged if renewed after expiration date Unlicensed practice of real estate following expiration of license

Armed Forces Renewal Exemption Licensee in good standing who is a member of the U.S. Armed Forces is exempt from renewal requirements during active duty and for 6 months after discharge from active duty If military duty is out of state, the exemption also applies to a licensed spouse

Temporary License DBPR may issue a temporary license to spouse of an active duty member of the Armed Forces assigned to duty in Florida Spouse must hold valid real estate license in another state Temporary license expires 6 months after the date of issue (not renewable)

Active vs. Inactive Status Active license required to perform services of real estate for compensation Voluntary Inactive Status Licensee requests inactive status Voluntary inactive licensees must complete education and renewal requirements Involuntary Inactive Status Fail to renew license before the expiration date After 2 years, involuntary inactive license is null and void

Involuntary Inactive License Reactivation 12 months or less Complete 14 hour continuing education course More than 12 months but less than 24 months Complete 28 hours of a Commission-prescribed education course

Involuntary Inactive License When a broker’s license is suspended or revoked for discipline The licenses of sales associates and broker associates employed by the broker are automatically placed in involuntary inactive status Associates may become active again under a new employer

Null and Void License A license is null and void when it no longer exists License has been involuntary inactive for more than two years Revoked following disciplinary proceedings Voluntarily relinquish (does not involve disciplinary action)

Cease To Be In Force Licensee cannot conduct business Two causes Broker or school changes business address Sales associate or instructor changes employer DBPR must be notified within 10 days of either change

Multiple Licenses Multiple licenses are issued to a broker who qualifies as the broker for more than one business entity For each business that a person is a broker, a separate broker license must be obtained

Group License Group licenses are issued to sales associates and broker associates who register under an owner-developer (real estate developer) Owner-developer sends DBPR list of legal company names Sales associate or broker associate has One license One employer