Chapter 2
Pass/Fail Notice
A pass/fail notice is given to each applicant on-site on the day of the exam. No grades are reported on the pass notice. In case the applicant does not successfully pass the state test, a fail notice is issued.It gives the applicant his scores for the three types of questions on the test: Law, Principles and Practices, and Math. Upon receiving a pass notice and finding an employer, the applicant must submit both the pass notice and a completed DBPR form 2050 to the DRE in order to begin working.
Broker Pre-license Course: Pass/Fail Notice
A pass/fail notice is issued on site immediately after the exam. A licensed broker can start working alone immediately upon passing the state exam unless he or she decides to keep working for his or her current employer as a broker-salesperson. Form DBPR 2050 is used to change the status of a licensee.
End of Course Exam
According to FAC 61-J2-3.008, in order to receive a passing grade on the end-of-course exam the applicant must score a minimum of 70 points out of a total of 100. The exam consists of 100 multiple choice questions. It is organized to reflect the contents of the state exam. Typically, 45 questions cover principles and practices, 45 questions cover real estate law, and 10 questions cover math. A grade report will be mailed by the school to each applicant and a roster of the class must be filed with the DBPR within 30 days of the end of the class. A student failing the end-of-course examination must wait at least 30 days before retaking the exam. The student has one year from the end of the course to successfully retake the end-of-course exam a second time. If more than one year passes or if the applicant failed on the second attempt, the student needs to retake the FREC I Course.
Electronic Fingerprinting
After completion of the application form, the applicant must go take the electronic fingerprint at a promissory location in order to satisfy that section of the application process.Location of where to take the electronic fingerprints and fees can be found online at http://www.catglobal.com/CATGlobal8/flref2.asp.
Background check
After receiving and processing your application, the DRE conducts a thorough investigation. This investigation includes the FBI fingerprint card that you submitted with your application. Passport photos are no longer necessary and should not be submitted. At the completion of this process, if you are deemed to be qualified, the DRE notifies the national testing vendor that you are eligible to take the state licensing exam. The vendor then notifies you. You may schedule your examination appointment directly through the testing vendor. If you answered "yes" to any of the background check questions, it is highly advisable to include further explanation and documentation (e.g. copies of police records) in your mailing. You may also include your notice of satisfactory completion of the required prelicensing course, if you have received it. (This may also be presented at the examination site.)
Florida maintains mutual recognition of licensure with...
Alabama, Arkansas, Connecticut, Georgia, Indiana, Mississippi, Nebraska, Oklahoma and Tennessee.
Expiration
An application for licensure as a real estate sales associate will expire two years from the date the application is received by the DBPR if the state examination is not taken and passed within that two-year period. In addition, if an applicant does not take and pass the state examination within two years of the successful completion of the pre-license course, then the course will be invalid and must be retaken.
Broker Pre-license Course Course Hour Requirements
Applicants for a broker's license must complete the state approved 72-hour course (FREC II) and satisfactorily pass the end of the course exam with a grade of 70% or higher.
State Licensure Examination for Brokers Exam Contents
Applicants for a broker's license must pass the state licensure exam for brokers. The contents of the state exam are similar to those of the FREC II end-of-course exam: real estate business and law, escrow management, real estate standards of practice, property appraisal, and real estate math. Both the end-of-class exam and the state exam contain a closing computation exercise worth about 10% of the overall score. Applicants must score 75% or higher to pass the state exam.
Florida Resident Defined
Applicants who are not bona fide Florida residents must sign an irrevocable consent to serve and have it notarized. FAC 61J2-26.001 defines a Florida resident as: A person who has been living in Florida for at least four continuous calendar months within the preceding year. A person currently residing in Florida with the intention of residing continuously for four months or more. In both cases, it does not matter whether the person has lived in a hotel, recreational vehicle, rental unit, or other permanent or temporary location.
Nonresident Application
Applicants who are not bona fide Florida residents need to sign and have notarized the irrevocable consent to service section of the application form. Any resident licensee who becomes a nonresident must notify the Commission within 60 days of the change in residency and comply with all nonresident requirements. Failure to inform the Commission subjects the licensee to penalties as stated in FS 475. Furthermore, all licensees are required by rule to inform the DBPR in writing of a change in mailing address within ten days after the change.
Application Requirements
Applications for licensure must be submitted to the state of Florida with the appropriate fee. Applications should be either notarized or electronically authenticated. The state of Florida also has an online application procedure
Type of license indications
BK = broker SL = sales associate BO = branch office CQ = corporation PR = partnership
Experience
Broker applicants must have at least 24 months of real estate experience with an active sales associate's license under the supervision of a broker during the five years prior to applying to become a broker. Experience from other states may also apply. Holders of a Florida real estate sales associate's license with real estate experience from another state must still take the required sales associate post-licensing education to be eligible to obtain a broker's license.
The three major categories of licensure are...
Broker, Sales Associate, and Broker Associate. It is important to understand the license provisions for each. In applying for licensure it is critical to fill in the application completely and pay special attention to the disclosure of background information. Licenses can be denied or revoked if background information is not fully disclosed.
In 1923, the Florida Legislature passed the first Florida Real Estate Law
Chapter 475 of the Florida Statutes. Its powers included record keeping, the right to conduct investigations, and the right to hold hearings and make decisions to grant, deny, suspend and revoke broker and sales associate registrations.
DRE group for Public
Check status of a Practitioner's license File a complaint Check statutes
Compensation
Compensation refers to the expectation of receiving, or the (direct or indirect) promise of payment of anything of value, or a valuable consideration. Any individual who performs real estate services for another for compensation must be licensed. Persons who manage, teach, consult and invest in real estate may greatly increase their professional capabilities by getting a real estate license. In Florida, it is a violation to share compensation (split commission, pay a fee, etc.) with an unlicensed person for the referral of clients, prospects, customers, or business. However, compensation may be shared with licensed, out-of-state brokers provided they do not travel to Florida to perform the actual real estate service and refer the client to a licensed Florida Real Estate Broker. Compensation can be shared with an unlicensed person who is party to the transaction (buyer, seller, tenant, landlord), as long as it is disclosed to all parties.
Required Disclosures
Criminal Background: The DBPR does a fingerprint check on every application. Back in July of 2006, the DBPR began to require that applicants submit their fingerprints electronically. This may cause information to flow into the DBPR even years after the initial application. Candidates must also disclose any previous criminal conviction or plea of nolo contendere (no contest) on the application for licensure. Failure to disclose all the information on criminal background may result in denial of an application, or, if discovered after the license has been issued, may result in the revocation of a license. Aliases or AKAs: The applicant must disclose any other name or names he or she may have legally used or been known by. For example, Katie Ventura gets married and changes her legal name to Katie Baker. Shortly after the wedding, she applies for her Florida real estate license. She must use her new legal name of Katie Baker, but she must also disclose her previous name of Katie Ventura, so that a proper background check can be performed.
Computer Based Testing Procedure
Currently, the state test is computerized. It is administered by a vendor which provides at least 15 testing centers across the state. Computer-based testing includes the advantages of providing same day results and being less burdensome both for the state and the applicant.
Post-License Course Course Hours
During the first period of license renewal, the sales associate must attend a commission approved 45-hour real estate post-licensing education course and pass an end-of-course exam. The course is offered by real estate schools, community colleges, professional and vocational institutes, or local board of realtors. Licensees who have received four-year degrees in real estate from an institution of higher learning are exempt from pre- and post-licensing requirements to become licensed.
FS 475 regulates the following areas of real estate practice:
Examinations Non-resident license requirements Licensure Continuing and post licensing education License renewal Active vs. inactive status Multiple and group licenses Procedure for notifying the change of address Determination of brokerage relationship
Important real estate statutes includes...
FS 455, FS 475, 61J1 FAC, 61J2 FAC, FS 83, and FS 120.
Statutes affecting requirements for Real Estate License
FS 471.01, FS 475.04, FS 475.17 (2) & (6), FS 475.175, FAC 61-J2-1.011, FAC 61-J2-1.013, FAC 61-J2-3.008
Ethical and Legal Requirements
FS 475.17 sets out the qualifications for the practice of real estate in the state of Florida.
Broker Post-License Course: Failure to Complete and Pass
Failure to complete the post-licensing education and pass the exam before the end of the first renewal period results in the loss of the broker's license. The licensee may still keep his or her Florida sales associate's license, provided that he or she took the time to comply with the post-licensing and continuing education requirements.
Citizenship and Immigration
Florida Statute 455.10 states that U.S. citizenship is not required to obtain a Florida real estate license. To comply with federal regulations, a work permit or residency card may be asked for by the employing broker at the time of hiring. FS 455.11 encourages the qualification of immigrants for state examinations. It states that any person who has fulfilled the educational and application requirements for license exams or reexaminations may take them. The exams will be conducted in English unless 15 or more non-English speaking applicants request that it be given in their native language. However, they are responsible for the costs of preparing and administering the exam in a foreign language. It may take 30 days to get the exam graded and 15 days to have the exam rescheduled. The Spanish version of the state exam is currently offered both in the paper-based and in the computer version at several testing locations.
Mutual Recognition Agreements
Florida has entered into mutual recognition agreements with the following states: Alabama, Arkansas, Connecticut, Georgia, Indiana, Mississippi, Nebraska, Oklahoma and Tennessee. A licensee in good standing from those states may obtain a Florida real estate license by taking and passing a written Florida real estate law examination which consists of 40 questions worth one point each. The licensee must score 30 points or more to pass. At the time of the application, the out-of-state licensee must not be a Florida resident, but must meet the legal age requirement and possess a high school diploma or equivalent.
Procedure if Failure Notice Received
If an applicant fails the state test, he/she can file a request to review the exam. The request must be accompanied by a fee. An applicant who believes there is good reason to disagree with the grading can file a written objection and ask to discuss his or her case with the DBPR. The applicant has the right to review only the most recent exam. The applicant also has the right to have an attorney with him/her to review the exam. If the applicant fails the exam, he/she must wait 24 HOURS to register for another exam. Applicants can repeat the exam as many times as they wish until they pass it, as long as they do so within one year after they applied for a license.
Education
In order to become a broker, a sales associate must first complete the applicable post-license education, the sales associate 45 hour post-licensing course and end-of-course test. This post-license education must be completed prior to the expiration of the initial sales associate license. The applicant must also take the broker pre-license course and pass the end-of-course exam with a score of 70% or higher.
Broker Post-License Course: Course Hours
In the initial renewal cycle, a Florida real estate broker must satisfactorily complete a Commission-prescribed 60-hour post-licensing education course.
DRE group for License Real Estate Practioners
Information on maintaining the licenseMeeting of Regulatory bodies Forms and complaints Escrow Disbursement orders (EDO)
FREC Course
It consists of 60 classroom hours of education plus a 3 hour end-of-the-course exam. Total 63 hours of pre-licensing education.The pre-licensing course may be taken in person, through distance learning, or online from licensed providers with a timed end of course exam. A passing certificate is issued to those students who successfully pass the end-of-the-course-exam.
Post-License Course: Failing the End-of-Course Exam
Licensees who fail the post-licensing end-of-course exam have two choices for retaking it: a. They may wait 30 days from the date of the original exam to retake it (and must be given a different form of the exam) b. They may retake the course and then take a different form of the exam if they do not want to wait 30 days.
DRE group for Applicants for licensure
Licensing requirments Exam renewal and upgrade information Application Information and forms Fees, school, handbooks and FAQ's
Course Hour Requirements
Must complete the FREC-approved pre-licensing sales associate course, called the FREC Course I.
State License Exam for Sales Associates
Once an applicant has successfully completed the FREC I Course and has passed the end-of-course exam, he or she must pass the state examination with a score of 75% or better, in order to obtain a real estate sales associate license.
Individuals Who Require a Real Estate License
Real estate brokers Real estate sales associates Real estate instructors Real estate schools Real estate corporations and chief administrative persons
Continuing Education Requirements
Real estate brokers and sales associates, after the first license renewal, must comply with the current FREC continuing education (CE) requirements. These requirements are set out under FAC 61J2-3.008. Currently both brokers and sales associates need to complete a minimum of 14 hours of continuing education. The 14 hours may be taken by distance learning or in an actual class. At least three out of the 14 hours must deal with core law which provides updates to rules and statutes. A licensee can earn six hours of credit toward the 14 by taking the three hour core law course in each year of the renewal period. Continuing education credit may be earned by: Attending a seminar or conference approved by FREC Successfully completing a classroom course Successfully completing an approved distance education course Attending a Commission meeting (three hours of credit can be earned (not core law); licensees must preregister with the DRE to earn credit )
Real Estate Services
Real estate services include any of the real estate activities performed for another for compensation, unless specifically exempt by law. Performing these services requires a real estate license. Individuals Who Require a Real Estate License In Florida, it is a violation to share compensation (split commission, pay a fee, etc.) with an unlicensed person for the referral of clients, prospects, customers, or business. However, compensation may be shared with licensed, out-of-state brokers provided they do not travel to Florida to perform the actual real estate service and refer the client to a licensed Florida Real Estate Broker.
Broker Post-License Course: End-of-course Exam
Satisfactory course completion is demonstrated by achieving a grade of 75% or higher on the end-of-course examination.
Post-License Course End-of-Course Exam
Satisfactory course completion is demonstrated by achieving a grade of 75% or higher on the end-of-course examination.
DRE Department's Response:
The Department reserves 30 days for checking of errors and/or omissions. It may take up to 90 days before the DBPR informs you whether your application has been approved or denied. If your application is denied, you have the right to a hearing.
Broker Pre-license Course: Course Content
The basic content requirements for the FREC II course include: Real estate business and law Escrow management Real estate standards of practice Real estate math - (both the end-of-class exam and the state exam contain a closing computation exercise worth about 10% of the overall score)
Broker Pre-license Course: End-of-Course Exam
The broker end-of-course exam consists of 90 multiple choice questions, plus a final closing statement calculation worth 10 points.
Post-License Course Content Requirements
The commission prescribes the following as subject matter for the 45-hours continuing education class: agency law, property management, appraisal, real estate finance, or economics of real estate management. The 45-hour sales associate post licensing class mainly focuses on the standard of practices in the real estate profession.
Content Requirements
The contents of the sales associate pre-licensing course are established by FREC. A copy of the FREC I Course original syllabus can be obtained from the FREC website at: http://www.myfloridalicense.com/dbpr/re/documents/frec_syllabus.pdf .The course is designed to enable applicants to understand and apply: Real estate principles and practices Real estate law Real estate license law Real estate math
Failure to Complete Post-licensing Course
The end-of-class exam for the 45 hours of post-licensing education must be successfully completed prior to the expiration of the first renewal of the real estate license. Failure to pass the end-of-course exam within the time allowed for the first renewal cycle causes the license to expire. If this occurs, the licensee needs to re-qualify by successfully completing the 63 hour pre-licensing course again, including the exam, and obtaining a new license.
Critical information reported on the license includes:
The name of the licensee The effective and expiration dates The license number The license type
Caveat Emptor
The principal that a person who buys something is responsible for making sure that it is in good condition, works properly, etc... Also known as "Buyers Beware"
Prelicense Course Regulations
The regulations which govern prelicense courses are Florida Statute 475.17 and Florida Administrative Code 61-J2-3.008. Regulation Under FS 475.17 and Regulation Under FAC 61J2-3.008
Examination Content
The state exam consists of 100 questions, each worth one point: 45 test the applicant on principles and practice of real estate. 10 are in regards to real estate math 45 questions test real estate law. The 100 questions are all multiple choice, typically consisting of one correct answer and three distracters.
Irrevocable consent to service section of the application form
This is a legal agreement that residents of any county may bring a lawsuit against the applicant. It also holds that any pleading or suit against the applicant can be initiated by delivery or certified mail, return receipt requested, to the director of the DRE and by registered mail to the applicant.
Sales Associate Prelicense Course
To become a real estate sales associate, one must meet these minimum requirements: Be at least 18 years of age Have high school diploma or GED Complete and pass the state approved 63 hour prelicense course (FREC I) Submit application to the DBPR with the appropriate fees Pass the state exam with a grade of 75 or better
Sales Associate License Requirements
To perform real estate services for compensation, the applicant must pass the state test and be properly licensed. Although an applicant may receive a pass notice a few minutes after taking the test, she can only start working once her license is active with a real estate broker. A signed form, DBPR 2050, and the pass notice are sufficient to practice initially. This section reviews the requirements for licensure as a sales associate. End of Course Exam According to FAC 61-J2-3.008, in order to receive a passing grade on the end-of-course exam the applicant must score a minimum of 70 points out of a total of 100. The exam consists of 100 multiple choice questions. It is organized to reflect the contents of the state exam. Typically, 45 questions cover principles and practices, 45 questions cover real estate law, and 10 questions cover math. A grade report will be mailed by the school to each applicant and a roster of the class must be filed with the DBPR within 30 days of the end of the class. A student failing the end-of-course examination must wait at least 30 days before retaking the exam. The student has one year from the end of the course to successfully retake the end-of-course exam a second time. If more than one year passes or if the applicant failed on the second attempt, the student needs to retake the FREC I Course.
Individuals Exempt from Licensure
Under Florida Statute 475.011, a variety of individuals are exempt from licensure. For example, property owners may buy, sell, exchange or lease their own properties without a license. Corporations, partnerships, trusts, and joint ventures may sell, exchange or lease their own property. Salaried employees of business entities may also perform real estate transactions, as long as they are not paid a commission or compensated for each transaction.
Broker Post-License Course: Course Content
While FREC does not require a particular curriculum for broker post-licensing education, it does approve the individual offerings that brokers can take. Common topics include appraising real property, escrow money management, how to run a real estate office, property management, and more.
Application Form and Fees
You may download the application form or apply online. All applicants are required to submit fingerprints in electronic format. The fingerprint scheduling can be made online. The total fee charged by each vendor varies. After fingerprinting is done, the results are usually received by the DBPR two to four days after the fingerprints are scanned.
Escrow Disbursement orders (EDO)
a course of action for determining the disposition of a consisted deposit.
Revocation without prejudice
a license that was issued as a result of an administrative mistake could be revoked.
Florida Resident
a person who has been living in Florida for at least four continuous calendar months within the preceding year; or, a person currently residing in Florida with the intention of residing continually for four months or more
Broker-Associate
a person who is qualify to be issued a license as broker but who operates as a sales associate in the employ of another
Broker
a person who, for another, and for a compensation, directly or indirectly paid or promised, appraises, auctions, sells, exchanges, buys, rents, offers, attempts or agrees to appraise, auction, or regotiate the sale, exchange, purchase, or rental of any real property. "Broker" also includes any person who is a general partner, officer or director of a partnership or corporation which acts as a broker
Individuals exempted from licensure include:
a. Apartment building managers, as long as they are paid a salary and not a commission; apartment rentals must be for periods no longer than one year. b. Banks and other financial institutions regulated and registered by the Securities and Exchange Commission. c. Owners of time shares who sell or exchange their share of time. d. Salaried employees of local government or private utility companies who deal in real estate within the scope of their employment. e. People who advertise hotel and motel rooms. f. Attorneys-at-law and CPAs when they act within the scope of their profession. g. People who rent lots in a trailer or mobile home park. h. Full-time graduate students in real estate as long as they act under the supervision of a licensed real estate broker. I. Cemetery lot salespeople. j. Persons acting within the definition of personal assistant of a real estate agent. k. Licensed appraisers who only appraise real estate. l. People who work in the radio or television business and are involved in advertising a specific property, as long as they do not represent themselves as licensees and do not actively market real estate properties as their job.
Age and Education
a. must be at least 18 years of age b. must also have earned a high school diploma or GED (General Equivalency Diploma). c. successfully complete an approved prelicensing course.
FREC Course 1 for sales associates and FREC Course 2 for brokers are offered by...
accredited colleges, universities, community colleges, licensed real estate schools, or technical centers. The course you are now taking is the FREC Course 1.
Subjects for the 45-hours continuing education class:
agency law, property management, appraisal, real estate finance, or economics of real estate management.
Broker License Requirements
an applicant must: Be at least 18 years of age Have high school diploma or GED Complete and pass the state approved 72 hour course and satisfactorily pass the end-of-course exam with a grade of 70% or higher Pass the state exam with a grade of 75% or better Hold an active sales associate's license for 24 months out of the past five years. Experience must be under the supervision of a licensed real estate broker. (Experience from other states may apply, as well as experience accrued under a previous license.) Complete applicable post license education; apply for a Florida broker's license (must have passed the sales associate 45 hours post licensing end-of-course test). Submit application to the DBPR with the appropriate fee Exceptions to the above include earning a four-year degree in real estate.
The following individuals must be licensed to practice real estate:
brokers, sales associates, broker associates, real estate instructors, real estate schools, real estate corporations and officers. They must also be registered with the DBPR. Continuing education is necessary to keep a license valid and active.
DBPR is entitled to regulate the following for most professions EXCEPT the medical, legal, and teaching fields:
examinations compliance of continuing education providers fees, foreign trained professionals, and license renewals legal counsel investigation and handling of violations and complaints citations and disciplinary proceedings classification of disciplinary actions; and rules governing the application for licensure
Broker Associate
has the education and license of a broker, but chooses to work as a sales associate.
Licensure means...
holding a valid license issued by the DBPR, but real estate professionals must also be registered with the Division of Real Estate. They must submit information, which is entered into the agency's records. Information on record with the DRE includes: The name and address of each licensed sales associate and broker The license status (active or inactive) of the broker or sales associate The licensee's position as an officer, partner, or director of a real estate business The employer under which a sales associate or broker associate is registered Some individuals involved in the real estate business don't need to be licensed, but need to only register with the department so that their information is on file. Examples are the partners in a limited liability partnership or the non-licensed officers and directors of a real estate corporation. Corporations must also register with the Division of Real Estate after filing articles of incorporation with the Secretary of State.
Grounds for revocation or suspension
if he/she is guilty of any of the grounds for suspension or revocation under FS 475. Omitting facts from the application or failing to notify the commission of such details as a DUI or suspension of another professional license may be grounds for suspension or revocation. The maximum period of suspension is ten years.
Consumer Protection
is deemed necessary when: a. Unregulated practices exist which are recognized as harmful to the public b. The dangers of not regulating outweigh any reduction of competition that may stem from regulation c. Other laws, statutes, or ordinances at the local, state, or federal level do not provide sufficient protection for the safety and welfare of the public d. Less restrictive means of regulation cannot be found
The Division of Real Estate
is the administrative division of the DBPR related to the real estate business. It provides administrative support to FREC.
Division of Real Estate (DRE)
is the administrative division of the DVPR related to the real estate business, it provides services for 3 main groups: Applicants for licensure, License Real Estate Practioners, Public
The Department of Business and Professional Regulation DBPR
is the body of the Florida government that ensures the compliance of "regulated professions" with Florida Law. It creates standards for licensure, continuing education, and other matters.
FS 475
it created the Florida Real Estate Commission (FREC), the Division of Real Estate (DRE), and the Real Estate Foundation
The Department of Professional and Business Regulation
oversees professional licensure, education and compliance.
Adjudication Withheld
refers to a decision by a judge to put a person on probation without an adjudication of guilt. Usually if the person successfully completes the terms of probation, and has not subsequent offenses, no further action is taken on the case, and the offense on which adjudication was withheld, is typically not consider a prior conviction
Receipt of the sales associate's license depends on...
taking the sales associate course and successfully passing the state sales associate exam. Licensed sales associates become active by finding an employer and filing with the Division of Real Estate.
Compensation
the expectation of receiving , or the ( direct or indirect) promise of payment of anything of value or a valuable consideration
The license is...
the prima facie evidence that the bearer is a licensee of the DBPR and has the right to start working as real estate agent. The type of license is indicated by a two-letter prefix before the license number.
The Florida Real Estate Commission (FREC)
was created in 1925. Its powers include record keeping, the right to investigate complaints, and the right to hold hearings and make decisions to suspend or revoke broker and sales associate registrations.
