Chapter 2
SAM
IRLANDER
© 2009 by South-Western, Cengage Learning
Florida Real Estate:
Principles, Practices and
License Law
Chapter 2
License Law and
Qualifications for Licensure
© 2009 by South-Western, Cengage Learning
Key Terms
Broker
Broker associate
Caveat emptor
Compensation
Deficiency letter
Florida residency
Irrevocable
consent to service
License
Mutual recognition
agreement
Nolo contendere
Registration
Rule 61J2-26.002
Sales associate
© 2009 by South-Western, Cengage Learning
Historical Perspective
1923 license laws
enacted
Caveat emptor
“Let the buyer beware”
FREC 1925
© 2009 by South-Western, Cengage Learning
Historical Perspective
License laws protect
the public
Fraud
Dishonesty
Incompetency
Compensation:
payment, something of
value
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Categories of Licensure
FREC 2 categories
Broker
Sales Associate
Subcategory
Broker Associate
© 2009 by South-Western, Cengage Learning
Licensure Requirements for
Sales Associate
18 years old
High school diploma or
equivalent
Honest & trustworthy
63 Hour course
State exam (75%)
Sponsoring broker
Licensee fee
© 2009 by South-Western, Cengage Learning
Licensure Requirements for
Sales Associate
Honest & trustworthy
Disclosure required:
Convicted of a crime
Plead guilty or nolo
contendere
Failure to disclose =
grounds for immediate
dismissal
© 2009 by South-Western, Cengage Learning
Licensure Requirements for
Sales Associate
Additional disclosures
Previously operated
under another name
Denied a license for any
regulated profession
Any license, permit or
registration revoked
Residence in a mental
health facility
© 2009 by South-Western, Cengage Learning
Licensure Requirements for
Sales Associate
FREC 63-Hour Course
60 Hours of instruction
3 Hour final exam
75% Passing grade
One time retest
30 day waiting period
No later than 1 Year
Pay the Required Fee
© 2009 by South-Western, Cengage Learning
Licensure Requirements for
Sales Associate
Additional Requirement:
Postlicense Education
Activate License:
18 months – 2 years
Conditional subject to
postlicense education
45 hour course & exam
Null and void = retake of
prelicense course and
state exam
© 2009 by South-Western, Cengage Learning
Licensure Requirements:
Broker and Broker Associate
Salesperson requirements plus
FREC Course II – 72 hours
Not previously licensed:
1 year
of associate
active licensing
within last 5 =
Sales
+
exemption
postlicense course
of Course I
Licensed in another state
1 year
of active licensing
State Exam
– 75%
within last 5 = exemption
of Course I
State Exam – 75%
© 2009 by South-Western, Cengage Learning
Licensure Requirements:
Broker and Broker Associate
Experience requirements:
Active license at least 1 of last
5 years or…
Active Brokers license in another
1 year of active licensing within last 5 =
stateexemption
at least 1 of last 5 years or…
Course
I
Activeof
Sales
Associate
license 1
of last 5 years in the employ of a
State Exam – 75%
government agency
Active license for 6 months may
enroll in Course II
© 2009 by South-Western, Cengage Learning
Licensure Requirements:
Broker and Broker Associate
Additional Requirement: Postlicense
Education
60 hour course within
2 years
Exam
1 Time retake within
1 month to 1 year or…
Retake the course
Failure to complete the course results in null
and void license
© 2009 by South-Western, Cengage Learning
Licensure Requirements:
Application
30 days to check for errors and
omissions
Approved or denied within 90 days
Approval notification by
Promissor
Notification describes process to sit for
the exam
© 2009 by South-Western, Cengage Learning
Licensure Requirements:
Examination
May retake exam as many times as
necessary
2 Years from successful completion of
requirements
2 Years from received approved application from
FREC
Two types of exam
Sales associate
Broker
© 2009 by South-Western, Cengage Learning
Licensure Requirements:
Examination
Sales Associate Exam: 100 Questions
Florida real estate law: 45 questions
Principals & practices: 45 questions
Math skills: 10 questions
Broker Exam: 95 Questions
Florida real estate law: 40 questions
Principles & practices: 45 questions
Math skills: 5 questions
Closing statements: 5 questions
© 2009 by South-Western, Cengage Learning
Licensure Requirements:
Nonresident Licensure
Rule 61J2-26.002
Establishing residency:
Reside in Florida for minimum of 4
continuous months within a calendar
year
Can reside in:
Hotel
Rental unit
Mobile home/RV
© 2009 by South-Western, Cengage Learning
Licensure Requirements:
Nonresident Licensure
Irrevocable consent to service
Designates Florida Division of Real
Estate as recipient of legal notices
Filed in county where plaintiff resides
© 2009 by South-Western, Cengage Learning
Licensure via Mutual
Recognition
Mutual recognition Agreement:
Recognition of education and experience
in another state
Alabama
Arkansas
Colorado
Georgia
Indiana
Kentucky
Mississippi
Nebraska
Oklahoma
Tennessee
Connecticut
© 2009 by South-Western, Cengage Learning
Licensure via Mutual
Recognition
Requirements:
Florida real estate law exam
Irrevocable consent to service
License fee
Certification of license
history
Proof of licensure
How license obtained
How long licensed
Disciplinary action
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License Renewal
2 Year Renewal Period
March 31
September 30
Expiration on nearest
renewal date under 2
years
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Licensure, License Renewal,
and Continuing Education
Postlicense prior to first renewal
45 hour course sales
60 hour course
Subsequent renewals
14 hours continuing ed.
3 hours core law
11 hours specialty courses
Deficiency Letter
© 2009 by South-Western, Cengage Learning
Licensure, License Renewal, and
Continuing Education Exemptions
US Armed Forces serving on active duty
6 months to renew without
penalty
Not actively practicing
Active members of Florida
Bar
Not exempt from prelicense requirement
© 2009 by South-Western, Cengage Learning
Important State Laws
455, F.S. Professions and
occupations
475, F.S. Real estate
license law
61J2, F.S. Rules of FREC
120, F.S. Administrative
Procedures Act
© 2009 by South-Western, Cengage Learning
Licenses and Registrations
License: Individual
permission to operate as an
agent
Registrations: Official
placement of brokerage
business or practice
Business entities
Offices and branch offices
Officer and directors
Partnerships
© 2009 by South-Western, Cengage Learning
Who Must Hold a Real
Estate License
Broker: performs a real estate act for another
for compensation
Buying, selling, leasing, renting or exchanging:
Real property
Business enterprises or opportunities
Mineral rights
Soliciting prospects
Negotiating
Advertising
Appraising
Auctioning
Rental lists or information
© 2009 by South-Western, Cengage Learning
Who Must Hold a Real
Estate License
May operate under a trade name
Registered with FREC
Responsible for broker and sales associates
Broker Associate
Licensed as a broker but
works under another
broker
© 2009 by South-Western, Cengage Learning
Who Must Hold a Real
Estate License
Sales Associate
Works for and represents the broker
Assists in services performed by the broker
Works in the name of the broker
Works under supervision
of broker
May not accept
compensation from
anyone other
than broker
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Licensure: Who is Exempt
From License Law?
Owners of real property
Corporation, partnership or other entity
May only receive salary
Cemetery lots
Attorney-in-fact
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Licensure: Who is Exempt
From License Law?
Persons acting under court order
Person authorized as:
Executor/administrator
Trustee under deed or trust agreement
Employees of government agencies,
utility comp., or railroad conducting
official business
© 2009 by South-Western, Cengage Learning
Licensure: Who is Exempt
From License Law?
Salaried employee of owner of apartments
employed to lease property
Rental of rooms in public lodging for
temporary occupancy
Salaried employee acting as manager for
condo or cooperative, if units are
rented for one year or less
© 2009 by South-Western, Cengage Learning
Licensure: Who is Exempt
From License Law?
Property management firm or apartment
owner for payment of referral or finders fees
(not to exceed $50)
Owners of time-share
Certified public accountant
© 2009 by South-Western, Cengage Learning
Licensure: Who is Exempt
From License Law?
Depository institution acting for an accredited
investor
Appraisers performing in accordance with
Part II Chapter 475
Full-time graduate student acting under direct
supervision of broker or appraiser
© 2009 by South-Western, Cengage Learning
Licensure: Who is Exempt
From License Law?
Attorney performing within the scope of the
legal profession
If engaging personally or employing sales
associates, must comply with license law
If operating under another name must comply
with Florida Fictions Name Act
Pay fee
Register and clear fictitious name
License issued under fictitious
name or entity
© 2009 by South-Western, Cengage Learning