Florida Real Estate Principles,
Practices & Law 38th Edition
Linda L. Crawford
Copyright © 2015 Kaplan, Inc.
All rights reserved.
Chapter 3
License Law Administration
Florida Real Estate Commission
• Regulatory body charged by Florida
Legislature
– Protect the public (consumer protection)
• Regulate real estate brokers, broker associates, sales
associates, brokerage firms, and real estate schools and
instructors
– Foster education of licensees
©2015 Kaplan, Inc.
Composition and Qualifications
• Five members are professional (licensed)
members
– Four must have held active licenses for five years
– One must be a licensed broker or sales associate who has
been active two years
• Two consumer members never been licensed
• Exempt from civil liability
• One must be 60 years of age or older
©2015 Kaplan, Inc.
The FREC
• Appointed to four-year terms by Governor
– Confirmed by Florida Senate
– No more than two consecutive terms
– Accountable to the Governor
• No salary to serve
– $50 per day for each day official business
• Monthly meetings
©2015 Kaplan, Inc.
Commission General Powers and Duties
• Executive
– Power to regulate and
enforce license law
• Quasi-legislative
– Power to enact rules and
regulations
– Interpret license law
questions
• Quasi-judicial
– Grant or deny applications,
administer penalties
©2015 Kaplan, Inc.
FREC’s Duties
•
•
•
•
•
Adopt a seal
Foster education
Make determinations of violations
Regulate professional practices
Create and pass (promulgate) rules and
regulations
• Establish fees
• Grant and deny applications for licensure
• Discipline licensees
©2015 Kaplan, Inc.
Department of Business and Professional
Regulation (DBPR)
• Under the executive branch
• Secretary of Department
• Licenses and regulates
– Businesses
– Professionals
• Granted legal powers by legislature
– Investigate complaints
– Issue subpoenas
– Issue cease and desist orders
©2015 Kaplan, Inc.
DBPR
• Division of Professions
• Division of Service Operations
• Division of Florida Condominiums, Timeshares, and
Mobile Homes
• Division of Real Estate (DRE)
– Division Director
– Employees of DBPR
– Provide services needed to administer law
• Administrative and ministerial duties
– Office is located in Orlando
©2015 Kaplan, Inc.
License Fees
• Established by the
FREC
• Used to regulate
real estate
• Include an
unlicensed activity
fee
• Fee waiver for
military veterans
– Initial, renewal, and
unlicensed activity
fees are waived for
veterans who apply
within 60 months of
honorable discharge
©2015 Kaplan, Inc.
Current Mailing Address
• The current residential
address a licensee uses to
receive mail
• 10 days to notify the DBPR
of change of address ($500
fine for failing to timely
notify)
• P O box is acceptable
mailing address
• Address of record
– Where DBPR sends official
communication
– Mailing or e-mail address
©2015 Kaplan, Inc.
License Renewal Periods
• Renewal period is two years
– Licenses expire on March 31 or September 30
– Must renew prior to expiration date
– Post-license or continuing education requirement
must be completed
– Late fee charged if renewed after expiration date
• Unlicensed practice of real estate following
expiration of license
©2015 Kaplan, Inc.
Armed Forces Exemption
• A licensee in good
standing who is a
member of the U.S.
Armed Forces is exempt
from renewal
requirements during
active duty and for six
months after discharge
from active duty
– If the military duty is out
of state, the exemption
also applies to a licensed
spouse
©2015 Kaplan, Inc.
Temporary License
• DBPR may issue a temporary license to
spouse of an active duty member of the
Armed Forces assigned to duty in Florida
– Spouse must hold valid real estate license in
another state
– Temporary license expires six months after the
date of issue and is not renewable
©2015 Kaplan, Inc.
Active vs. Inactive Status
• Active license is required to perform
services of real estate for compensation
• Voluntary Inactive Status
– Licensee requests inactive status
– Voluntary inactive licensees must complete all
education and renewal requirements
• Involuntary Inactive Status
– Licensee fails to renew the license before the
expiration date
©2015 Kaplan, Inc.
Involuntary Inactive License Reactivation
• Involuntary inactive
for 12 months or
less
– Complete 14 hour
continuing education
course
• Involuntary inactive
for more than 12
months but less
than 24 months
– Complete 28 hours
of a Commissionprescribed education
course
©2015 Kaplan, Inc.
Null and Void License
• A license is null and void when it no longer
exists
– License has been involuntary inactive for more
than two years
– Revoked following disciplinary proceedings; two
exceptions to permanent
• Renewed without completing education
• Application contained false information
– Voluntarily relinquish (does not involve
disciplinary action)
©2015 Kaplan, Inc.
Ineffective License
• When a license is ineffective, license exists
but licensee cannot use it
– Inactive
• Voluntary – Licensee has met all license requirements
but chooses not to work in real estate
• Involuntary - A licensee who fails to renew prior to
expiration date
– Suspended
• Disciplinary action
©2015 Kaplan, Inc.
Involuntary Inactive License
• When a broker’s license is suspended or
revoked for discipline
– The licenses of sales associates and broker
associates employed by the broker are
automatically placed in involuntary inactive
status
– Associates may become active again under a
new employer
©2015 Kaplan, Inc.
Cease To Be In Force
• Licensee cannot conduct business
• Two causes
– Broker or school changes business address
– Sales associate or instructor changes employer
– DBPR must be notified within 10 days of either
change
©2015 Kaplan, Inc.
Multiple Licenses
• Multiple licenses are
issued to a broker who
qualifies as the broker
for more than one
business entity
• For each business that
a person is a broker, a
separate broker license
must be obtained
©2015 Kaplan, Inc.
Group License
• Group licenses are issued to sales associates and
broker associates who register under an ownerdeveloper (real estate developer)
• Owner-developer sends DBPR list of legal company
names
• Sales associate or broker associate has
– One license
– One employer
©2015 Kaplan, Inc.