Florida Real Estate Principles,
Practices & Law 38th Edition
Linda L. Crawford
Copyright © 2015 Kaplan, Inc.
All rights reserved.
Chapter 2
License Law and Qualifications for
Licensure
Historical Perspective of License Law
• Caveat emptor
– Let the buyer beware
• Intent of real estate regulation is to protect
health, safety, and welfare of the public
– The Florida Real Estate Commission (FREC)
regulates real estate licensees to protect the
public
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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
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Statutes and Rules Important to Real
Estate
• F.S. 455, Regulation of Occupations and
Professions
– Requires licensee to notify DBPR within 30 days
of conviction
• F.S. 120, Administrative Procedures Act
– Outlines disciplinary process
• Chapter 61J2, F.A.C., rules of the Florida
Real Estate Commission
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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
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Sales Associates
• Employed by and work under the direction
and control of a
– Real estate broker (most often), or
– 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
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Types of Real Estate Licenses
Sales Associate
A person who
performs real estate
services under the
direction, control, or
management of
another person
Broker
A person who, for
another and for (or
anticipation of)
compensation or other
consideration,
performs real estate
services
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Broker Associate
An individual who
holds a broker’s
license but chooses
to register and work
under direction and
management of
another broker
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Application Requirements
• Complete sales
associate
application
– Including application
fee
• Electronically
submit fingerprints
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Background Check of Criminal History
Attach full details of all cases if you have
– Been convicted of a crime
– Been found guilty
– Entered a plea of guilty or nolo contendere
(no contest)
– Disclose this information even if court action
(adjudication) was withheld
– Expungement means the record of a criminal
conviction is destroyed or sealed after time
(Don’t assume. Verify!)
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Application Processing
• 30 days to check for errors and omissions
– Notice of insufficiency
• Informed of approval (denial) within 90
days
– If denied, applicant has 21 days to request a
hearing
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Nonresident Applicants
•
•
•
•
Proof of U.S. citizenship is not required
Applicant must possess a Social Security number
Florida residency is not required
Nonresident licensees
– Complete 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
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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
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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
percent)
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Florida Resident Defined
A person who has
resided in Florida
continuously for a
period of four
calendar months or
more within the
preceding year
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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
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Education Requirements
• Complete Course I
– 60 hours of
instruction
– 3 hours end-ofcourse exam
– Passing score of at
least 70 on 100multiple choice
question exam
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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
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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
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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
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Examination Grade Notice
• Pass
• Fail
– Pass notice
– Initial inactive license
– Complete Request for
Change of Status form
with employer
information
– Points scored each
content area
– Retest procedures
– Reviewing exam
– Requesting a hearing
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Summary of Education Exemptions
4-year Degree in RE
• Exempt from Courses
I and II
• State exam required
• Exempt from Postlicense education
• Must complete
continuing education
requirement
Florida Attorney
• Exempt from Course I
• Not exempt from
Course II
• State exam required
• Not exempt from
Post-license education
• Exempt from
continuing education
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Post-Licensing Education
Alert:
Post-licensing
Requirement
• Licensees must complete
the post-licensing course
before the expiration of
initial license
– 45-hour sales associates
• Failure to complete
course will cause license
to become null and void
• Must pass end-of-course
exam
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Tips Regarding Post-License Education
• Do not enroll until you are licensed
• Enroll soon after becoming licensed
• Do not wait until the last minute
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Continuing Education
• 14 hours of continuing
education every twoyear license period
• Three of the 14 hours
must be core law
– May earn three hours of
core law per year
• May earn three hours
by attending one legal
agenda session of the
FREC
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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
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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
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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
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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
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Real Estate Services
• A
Advertise real estate services
• B
• A
• R
Buy
Appraise (non federally related transactions)
Rent or provide rental information
•
•
•
•
Sell
Auction
Lease
Exchange
S
A
L
E
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Compensation
• Anything of value
paid or promised to
be paid to an
individual for
performing any
service of real
estate
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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
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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 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
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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
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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)
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