Florida Real Estate Principles, Practices & Law 40th Edition Unit 2: Real Estate License Law and Qualifications for Licensure

Statutes and Rules Important to Real Estate F.S. 20, Organizational Structure Governs executive branch of Florida government F.S. 475, Real Estate Professional Practice Act Part I pertains to real estate brokerage Part II pertains to real estate appraisers Part III, Commercial Real Estate Sales Commission Lien Act Part IV, Commercial Real Estate Leasing Commission Lien Act

Statutes and Rules Important to Real Estate F.S. 455, Regulation of Occupations and Professions Establishes the basic rules for professional licenses Requires licensee to notify DBPR within 30 days of a conviction F.S. 120, Administrative Procedures Act Outlines disciplinary process Chapter 61J2, F.A.C., rules of the Florida Real Estate Commission

Three Categories of Real Estate Licenses Sales associate Broker Broker associate

General Licensing Provisions Usually begin career as a sales associate Required pre-license education course Pass state license exam Initially licensed as inactive until an employer is found

Sales Associates Employed by and work under the direction and control of a Real estate broker or an Owner-developer Unlicensed entity that sells, exchanges, or leases its own property (such as a real estate development company) Sales staff must hold active real estate licenses if paid a commission or compensated on a transactional basis

Brokers Additional education Experience Pass state exam

Broker Associate An individual who holds a broker’s license but chooses to register and work under direction and management of another broker

Application Requirements Complete sales associate application Including application fee Electronically submit fingerprints

Military Veteran Fee Waiver Initial application fee, license fee, and unlicensed activity fee are waived for military veterans and their spouses who apply for licensure within 60 months of an honorable discharge

Background Check of Criminal History Attach full details of all cases if Convicted of a crime Found guilty Entered a plea of guilty or nolo contendere (no contest) Disclose information even if court action (adjudication) was withheld Expungement - the record of a criminal conviction is destroyed or sealed after time (Don’t assume. Verify!)

Application Processing 30 days to check for errors and omissions Notice of insufficiency Informed within 90 days of approval (or denial) If denied, applicant has 21 days to request a hearing

Nonresident Applicants Proof of U.S. citizenship is not required Applicant must possess a Social Security number Florida residency is not required Nonresident licensees Post-license and continuing education required of all Florida licensees Resident licensees who become nonresidents must notify the Commission within 60 days of change in residency

Reciprocity An agreement between two states that allows a real estate licensee with a valid license in one of the states to practice in both states Florida does NOT have reciprocity with any other state

Mutual Recognition Agreements Recognizes the education and experience that real estate licensees have acquired in another state or nation Applies to nonresidents only Certification of license history from mutual recognition state Must pass a state-administered Florida-specific real estate law exam with grade of 30 points (75%)

Florida Resident Defined A person who has resided in Florida continuously for a period of four calendar months or more within the preceding year

Sales Associate Qualifications 18 years of age or older High school diploma or equivalent Possess a Social Security number Honest and of good character Competent and qualified Disclose Conviction, plea of nolo contendere, or if under investigation Names or aliases (such as maiden name) Had disciplinary action taken against professional license Denied a real estate license

Education Requirements Complete Course I 60 hours of instruction 3 hours end-of-course exam Passing score of at least 70 on 100-multiple choice question exam

Regulations Pertaining to Prelicense Courses Physical hardship cases Grade report issued Students failing the end-of-course exam must wait at least 30 days before taking a different exam A student may retake the end-of-course exam a maximum of one time Students may not miss more than eight instructional hours Make up classes if absences are due to illness allowed within 30 days Make up classes must be the classes the student missed

Summary of Education Exemptions Four-year degree or higher in Real Estate Exempt from Courses I and II State exam required Exempt from Post-license education Must complete continuing education requirement Florida Attorney who is an active member of The Florida Bar Exempt from Course I Not exempt from Course II Not exempt from Post-license education Exempt from continuing education

Time Limits The license application expires two years after it is received by the DBPR Applicants that do not pass the state license exam within two years of their course completion date must retake the course

License Examination Applicant schedules examination appointment with the testing vendor Two forms of ID Grade report from class Examinations 100-question multiple choice 75 correct to pass English or Spanish Graded at test site

Photo-Bearing Exam Report Pass Pass notice Initial inactive license Complete Request for Change of Status form with employer information Fail Points scored each content area Retest procedures Reviewing exam Requesting a hearing

Post-Licensing Education Licensees must complete the post-licensing course before the expiration of initial license 45-hour sales associates Must pass end-of-course exam Failure to complete course will cause license to become null and void Hardship cases allow additional six-months to complete post-licensing education

Tips Regarding Post-License Education Do not enroll until you are licensed Enroll soon after becoming licensed Do not wait until the last minute

Continuing Education 14 hours of continuing education every two-year license period Three of the 14 hours must be core law May earn three hours of core law per year May earn three hours (not core law) by attending one legal agenda session of the FREC

Broker Requirements Complete sales associate’s post-licensing course Complete 72-hour FREC Course II 24 months real estate experience during preceding 5-year period Pass state-administered license exam 60-hour Broker post-license course

Broker Experience Requirements 24 months active experience in previous 5 years As a sales associate working for a broker As a sales associate working for a government agency As a broker in another state or nation

Registration and Licensure Registration is placing on record with the DBPR the name and address of each licensed broker and sales associate name and business address of sales associate’s employer active or inactive license status involvement in a real estate entity

Prima Facie Evidence Evidence that is good and sufficient on its face to establish a fact Unless refuted by evidence to the contrary prima facie evidence will prove a case A real estate license is prima facie evidence that the licensee holds a current and valid license

Real Estate Services A Advertise real estate services B Buy A Appraise (non-federally related transactions) R Rent or provide rental information S Sell A Auction L Lease E Exchange

Compensation Anything of value paid or promised to be paid to an individual for performing any service of real estate If an individual performs real estate services for another and a disciplinary case is filed, there is a presumption of acting as a real estate broker May be liable even if the individual was not compensated for the service of real estate

Individuals Who Are Exempt From a Real Estate License Owners of property may buy, sell, exchange or lease their own property Property owner Corporations, partnerships, trusts, and joint ventures Partner in a real estate partnership provided partner only receives normal pro-rata share of the profits

Salaried Employees Who Are Exempt Who work in an on-site rental office in a leasing capacity who do not receive commission Who are managers of condo and cooperative apartments who rent units for periods no longer than one year and do not receive commission Of an owner-developer (real estate developer) who do not receive commission Of a government agency and perform services for that government and do not receive a commission Of business entities who negotiate sale of radio, TV, or cable enterprises but not real property

Exemptions From Licensure Persons who sell cemetery lots Individuals who rent lots in a mobile home park or travel park Attorneys-at-law and CPAs (cannot be compensated for real estate services) Attorneys-in-fact (power of attorney) Owners of time-share periods State-certified and licensed appraisers Court-appointed individuals

Exemptions From Licensure Hotel and motel clerks who rent transient lodging Federally regulated banks and securities dealers selling business enterprises Apartment owners or property managers to pay a finder’s fee to a tenant (maximum of $50)