1. © 2009 by South-Western, Cengage Learning SAM IRLANDE R Chapter 3

2. Florida Real Estate: Principles, Practices and License Law Chapter 3 License Law and Commission Rules © 2009 by South-Western, Cengage Learning

3. Key Terms Active license Canceled Cease to be in force Department of Business and Professional Regulation Florida Real Estate Commission Group license Inactive license Ineffective Involuntary inactive Multiple licenses Prima facie Void Voluntary inactive

4. © 2009 by South-Western, Cengage Learning Governing Body and Enforcement Florida Real Estate Commission protects the general public Real estate brokers Broker associates Sales associates Real estate schools Instructors

5. © 2009 by South-Western, Cengage Learning Governing Body and Enforcement Division of Real Estate ministerial and administrative functions FREC and DRE Department of Business & Professional Regulation

6. © 2009 by South-Western, Cengage Learning Governing Body and Enforcement DBPR: Regulates licensed professions & professionals Division of Technology Division of Professions and Regulation The Division of Service Operations and Licensure

7. © 2009 by South-Western, Cengage Learning Functions of the FREC and the DRE Real estate brokers and firms Broker associates Sales associates Schools and instructors Education of: Licensees Permit holders

8. © 2009 by South-Western, Cengage Learning Functions of the FREC and the DRE 1. Executive powers – regulate & enforce 2. Quasi-legislative Enact & revise rules & regs. Interpret questions 3. Quasi-judicial Grant or deny license Determine violations Administer penalties

9. © 2009 by South-Western, Cengage Learning Functions of the FREC and the DRE Grant or deny license or registration Suspend or revoke license or registration Administer disciplinary action

10. © 2009 by South-Western, Cengage Learning Administrative Penalties Denial of license Refuse renewal Suspend not to exceed 10 years Revoke Fines (475,F.S.) $5000/violation Fines (455, F.S.) $5000/violation

11. © 2009 by South-Western, Cengage Learning Administrative Penalties Failure to provide accurate and current rental information Up to 1 year in jail $1,000 fine

12. © 2009 by South-Western, Cengage Learning Administrative Penalties Violations of Chapter 485 or… Violation of lawful order, regulation, or rule Fine up to $500 Prison term up to 60 days

13. © 2009 by South-Western, Cengage Learning Practicing Real Estate Without a License 3 rd Degree felony $5,000 per count DBPR may issue cease and desist order FREC powers and duties Adopt a seal to act a prima facie evidence Create or change rules and regulations Crate syllabus and course content for real estate license Rules and regulations for schools

14. © 2009 by South-Western, Cengage Learning Practicing Real Estate Without a License Administer Education and Research Foundation Create fees: exam fees, initial license fees, recovery fund assessment FREC reports suspected criminal activity Does not impose criminal sanctions

15. © 2009 by South-Western, Cengage Learning Composition, Qualifications, and Compensation of the FREC 7 Members 4 Members Hold or have held active Florida real estate broker's license Minimum of 5 years 2 Members General public Never licensed 1 Member Active broker or sales associate

16. © 2009 by South-Western, Cengage Learning Composition, Qualifications, and Compensation of the FREC 1 Member must be 60 years of age or older Appointed by the Governor Serve 4 year term Term limit (2 consecutive) Minimum 12 meetings per year Supervised by the Governor

17. © 2009 by South-Western, Cengage Learning The Division of Real Estate State employees Funded by Commission Record keeper Provides exams Support services Legal Administrative Director appointed by the Secretary of the Dept.

18. © 2009 by South-Western, Cengage Learning The Division of Real Estate Primary duty Assist FREC in investigative services Screens applicants Investigates potential violations

19. © 2009 by South-Western, Cengage Learning Address Requirements Maintain accurate / current mailing address Immediately notify of change of address 10 days Citation and $100 fine Nonresident Irrevocable consent to service Resident relocating: 60 days to comply with nonresident requirements

20. © 2009 by South-Western, Cengage Learning License Periods Expiration dates March 31 September 30 2 Year license period 1 st issuance not less than 18 months

21. © 2009 by South-Western, Cengage Learning License Renewal / Military Exemptions 1 st Renewal Postlicense education All other renewals 14 hours continuing education Signature acts as oath

22. © 2009 by South-Western, Cengage Learning License Renewal / Military Exemptions Current members of US Armed Forces Exempt while on active duty 6 Months to renew without penalty Spouse 6 mounts to renew without penalty May not actively practice

23. © 2009 by South-Western, Cengage Learning Multiple and Group Licenses Group License: Sales or broker associate working for owner-developer of property in name of several entities Multiple Licenses: Broker may hold more than one license Sales or broker associate Works for only 1 broker Holds only 1 license

24. © 2009 by South-Western, Cengage Learning Active vs. Inactive License Active status: Engaged in real estate activity Inactive status: Not actively engaged Voluntary inactive: Choice of licensee Involuntary inactive Failure to renew Summary suspension Active Inactive

25. © 2009 by South-Western, Cengage Learning Active vs. Inactive License Voluntary Inactive May not engage in real estate activity Indefinitely Must complete all postlicense and continuing education Reactivate at any time Notify FREC in writing Active Inactive

26. © 2009 by South-Western, Cengage Learning Active vs. Inactive License Involuntary Inactive May not engage in real estate activity May not remain indefinitely Must reactivate within 2 years Notification 90 days prior to expiration Less than 12 months – 14 hours approved education More than 12 month – 28 hours approved education Null & Void – Prelicense process Active Inactive

27. © 2009 by South-Western, Cengage Learning Void and Ineffective Licenses Expired more than 24 months Revoked due to disciplinary action Permanent except for: Application with false information Failure to complete continuing education

28. © 2009 by South-Western, Cengage Learning Void and Ineffective Licenses Void Not conducting real estate activities Voluntary inactivity Involuntary inactivity Revocation Suspension

29. © 2009 by South-Western, Cengage Learning Void and Ineffective Licenses Relocation requiring notification of change of address Change of association

30. © 2009 by South-Western, Cengage Learning Registration of Proprietary Real Estate Schools © 2009 by South-Western, Cengage Learnin Schools are registered and issued a permit Exception Universities Colleges Community colleges

31. © 2009 by South-Western, Cengage Learning Registration of Proprietary Real Estate Schools © 2009 by South-Western, Cengage Learnin False or misleading statements Promises of employment Supplying questions from exams Refunds for failed exams Guaranteed program for passage of state exam for enrollment Inappropriate Advertising

32. © 2009 by South-Western, Cengage Learning Registration of Proprietary Real Estate Schools © 2009 by South-Western, Cengage Learnin Develops and funds program for research & education Info gathered from: Schools Colleges & universities Licensees General public