Post on 14-Dec-2015
Florida Real Estate:Florida Real Estate: Principles, Practices and Principles, Practices and
License LawLicense Law
Chapter 3Chapter 3
License Law and License Law and Commission RulesCommission Rules
© 2009 by South-Western, Cengage Learning
© 2009 by South-Western, Cengage Learning
Key TermsKey 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
© 2009 by South-Western, Cengage Learning
Governing Body and Governing Body and EnforcementEnforcement
Florida Real Estate Commission protects the general public
Real estate brokers
Broker associates
Sales associates
Real estate schools
Instructors
© 2009 by South-Western, Cengage Learning
Governing Body and Governing Body and EnforcementEnforcement
Division of Real Estate ministerial and administrative functions
FREC and DRE Department of Business & Professional Regulation
© 2009 by South-Western, Cengage Learning
Governing Body and Governing Body and EnforcementEnforcement
DBPR: Regulates licensed professions & professionals
Division of Technology
Division of Professions and Regulation
The Division of Service Operations and Licensure
© 2009 by South-Western, Cengage Learning
Functions of the FREC and Functions of the FREC and the DREthe DRE
Real estate brokers and firms
Broker associates
Sales associates
Schools and instructors
Education of:Licensees
Permit holders
© 2009 by South-Western, Cengage Learning
Functions of the FREC and Functions of the FREC and the DREthe DRE
1. Executive powers – regulate & enforce
2. Quasi-legislativeEnact & revise rules & regs.
Interpret questions
3. Quasi-judicialGrant or deny license
Determine violations
Administer penalties
© 2009 by South-Western, Cengage Learning
Functions of the FREC and Functions of the FREC and the DREthe DRE
Grant or deny license or registration
Suspend or revoke license or registration
Administer disciplinary
action
© 2009 by South-Western, Cengage Learning
Administrative PenaltiesAdministrative 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
© 2009 by South-Western, Cengage Learning
Administrative PenaltiesAdministrative Penalties
Failure to provide accurate and current rental information
Up to 1 year in jail
$1,000 fine
© 2009 by South-Western, Cengage Learning
Administrative PenaltiesAdministrative Penalties
Violations of Chapter 485
or…
Violation of lawful order, regulation, or rule
Fine up to $500
Prison term up to 60 days
© 2009 by South-Western, Cengage Learning
Practicing Real Estate Practicing Real Estate Without Without a Licensea License
3rd Degree felony $5,000 per count DBPR may issue cease and desist order
FREC powers and dutiesAdopt 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
© 2009 by South-Western, Cengage Learning
Practicing Real Estate Practicing Real Estate Without a LicenseWithout 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
© 2009 by South-Western, Cengage Learning
Composition, Qualifications, and Composition, Qualifications, and Compensation of the FRECCompensation of the FREC
7 Members4 Members
Hold or have held active Florida real estate broker's license
Minimum of 5 years
2 MembersGeneral public
Never licensed
1 MemberActive broker or sales associate
© 2009 by South-Western, Cengage Learning
Composition, Qualifications, and Composition, Qualifications, and Compensation of the FRECCompensation of the FREC
1 Member must be 60 years of age or older
Appointed by the Governor
Serve 4 year termTerm limit (2 consecutive)
Minimum 12 meetings per year
Supervised by the Governor
© 2009 by South-Western, Cengage Learning
The Division of Real EstateThe 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.
© 2009 by South-Western, Cengage Learning
The Division of Real EstateThe Division of Real Estate
Primary dutyAssist FREC in investigative services
Screens applicants
Investigates potential violations
© 2009 by South-Western, Cengage Learning
Address RequirementsAddress Requirements
Maintain accurate / current mailing address
Immediately notify of change of address10 days
Citation and $100 fine
NonresidentIrrevocable consent to service
Resident relocating: 60 days to comply with nonresident requirements
© 2009 by South-Western, Cengage Learning
License PeriodsLicense Periods
Expiration datesMarch 31
September 30
2 Year license period
1st issuance not less than 18 months
© 2009 by South-Western, Cengage Learning
License Renewal / License Renewal / Military ExemptionsMilitary Exemptions
1st Renewal Postlicense education
All other renewals14 hours continuing education
Signature acts as oath
© 2009 by South-Western, Cengage Learning
License Renewal / License Renewal / Military ExemptionsMilitary 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
© 2009 by South-Western, Cengage Learning
Multiple and Group LicensesMultiple 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 associateWorks for only 1 broker
Holds only 1 license
© 2009 by South-Western, Cengage Learning
Active vs. Inactive LicenseActive vs. Inactive License
Active status: Engaged in real estate activity
Inactive status: Not actively engagedVoluntary inactive: Choice of
licensee
Involuntary inactive
Failure to renew
Summary suspension
Active Inactive
© 2009 by South-Western, Cengage Learning
Active vs. Inactive LicenseActive vs. Inactive License
Voluntary InactiveMay not engage in real estate activity
Indefinitely
Must complete all postlicense and continuing education
Reactivate at any time
Notify FREC in writing
Active Inactive
© 2009 by South-Western, Cengage Learning
Active vs. Inactive LicenseActive vs. Inactive License
Involuntary InactiveMay 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
© 2009 by South-Western, Cengage Learning
Void and Ineffective LicensesVoid 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
© 2009 by South-Western, Cengage Learning
Void and Ineffective LicensesVoid and Ineffective Licenses
Void
Not conducting real estate activities
Voluntary inactivity
Involuntary inactivity
Revocation
Suspension
© 2009 by South-Western, Cengage Learning
Void and Ineffective LicensesVoid and Ineffective Licenses
Relocation requiring notification of change of address
Change of association
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Registration of Proprietary Registration of Proprietary Real Estate SchoolsReal Estate Schools
© 2009 by South-Western, Cengage Learnin
Schools are registered and issued a permit
ExceptionUniversities
CollegesCommunity colleges
© 2009 by South-Western, Cengage Learning
Registration of Proprietary Registration of Proprietary Real Estate SchoolsReal Estate Schools
© 2009 by South-Western, Cengage Learnin
False or misleading statementsPromises of employmentSupplying questions from examsRefunds for failed examsGuaranteed program for passage of state exam for enrollment
Inappropriate Advertising
© 2009 by South-Western, Cengage Learning
Registration of Proprietary Registration of Proprietary Real Estate SchoolsReal Estate Schools
© 2009 by South-Western, Cengage Learnin
Develops and funds program for research & education
Info gathered from:SchoolsColleges & universitiesLicenseesGeneral public