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

2. 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

3. 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

4. Three Categories of Real Estate Licenses
Sales associate
Broker
Broker associate

5. 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

6. 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

7. Brokers
Additional education
Experience
Pass state exam

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

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

10. 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

11. 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!)

12. 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

13. 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

14. 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

15. 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%)

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

17. 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

18. 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

19. Regulations Pertaining to Prelicense Courses
Physical hardship cases
Grade report issued
Students failing the end-of-course exam must wait at least 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

20. 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

21. 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

22. 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

23. 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

24. 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

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

26. 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

27. 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

28. 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

29. 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

30. 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

31. 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

32. 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

33. 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

34. 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

35. 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

36. 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)