Unit 3: Real Estate License Law and Commission

A licensed sales associate who moves from Florida to another state must comply with nonresident licensee requirements within _____ days.

60

The answer is quasi-judicial. Quasi-judicial responsibilities include the power to grant or deny license applications, to determine license law violations, and to administer penalties.

8. A commissioner may not serve more than two consecutive four-year terms.

________days before the end of a license cycle, the DBPR sends a renewal notice to licensees. The DBPR either mails the notice to the licensee's last known address of record or electronically sends the notice to the licensee's email address of record. Sales associates and brokers must complete their post-license education before the first renewal of their initial licenses. After the post-license education is satisfied and the initial license is renewed, licensees must complete 14 hours of continuing education during each renewal period.

90

Indicate whether each Commission duty is an executive power, a quasi-legislative power, or a quasi-judicial power. Foster education

Executive

Indicate whether each Commission duty is an executive power, a quasi-legislative power, or a quasi-judicial power: Adopt a seal

Executive

Non license requirements: A Florida resident licensee who fails to notify the Commission of becoming a nonresident as prescribed in Section 475.180 may be issued a citation and fined ________

$300

Example: If a sales associate leaves one brokerage firm and wants to work for another brokerage firm, the DBPR must be informed of the associate's new employer. Until the sales associate is registered under the new employer, the sales associate cannot work. The license ceases to be in force until the sales associate has registered under the new broker. Otherwise, the sales associate would be acting as a broker (performing real estate services without being registered under an employing broker). The DBPR may issue a _______ citation to a sales associate who works in the capacity as a sales associate without being properly registered under the employing broker.

$500

If a broker changes his or her business address, the new location must be registered and a fee paid. New brokerage business may not be conducted (the license ceases to be in force) until the DBPR is notified of the new business location and it is properly registered. To avoid a gap in brokerage service the broker can register the new brokerage office in advance. The DBPR may issue a _______ citation for failure to timely notify the DBPR of the change in business address.

$500

Fostering education of real estate licenses is an exercise of the FRECs ___________________ power

Executive

Licensees must notify the DBPR within ________ days of a change in a current mailing address

10

Executive powers to regulate and enforce the license law are delegated to the Commission by the legislature.

-Foster the education of applicants and licensees: the commission fosters the education of licensees and instructors in ethical, legal, and business principles. It also prescribes post-licensing education requirements and continuing education requirements to qualify for license renewal. Executive powers include publication of educational materials. -Adopt a seal: the seal, when affixed to rules, regulations, or other official documents, properly signed, becomes prima facie evidence that the document is authentic. -Establish fees: the Commission uses the DBPR estimates of required revenue to determine the amount of licensing fees needed to impliment the real estate license law and other laws and regulations relating to the regulation of real estate practitioners.

There are two important units under the Division of Service Operations:

-the Customer Contact Center: handles all incoming telephone, postal and email inquires from the licensees and general public. -the Central Intake Unit processes all the license applications and license fees that come to the DBPR. They are also responsible for the issuance of the license and licenses renewal notifications for the department.

The Legislature believes professions under the DBPR should be regulated when:

-the unregulated practice can harm the public, the potential harm is recognizable, and the danger outweighs any anticompetitive impact that might result from regulation; -the public is not adequately protected by other state statutes, local ordinances, or federal laws; or -less restrictive means of regulation are not available.

At least _________________ commissioner must be 60 years of age or older.

1

The DBPR must be notified within _____ days when the following occurs: A broker changes business address A real estate school changes business address A sales associate changes employer An instructor changes employer

10

Involuntary inactive licensees may activate their licenses during the two-year period following expiration of a valid current license only after satisfactorily completing FREC-prescribed courses of instruction. When a licensee has been involuntary inactive for: -___ months or less, they may satisfy the education requirement by completing ____ hours of FREC-approved continuing education. or -more than ____ months but less than ___ months, they are required to complete 28 hours of a Commission-prescribed reactivation education course.

12, 14 (hours), 12 (months), 24 (months)

A licensee who has been involuntary inactive for more than ________ months but less than ____ months must complete _______ hours of reactivation education.

12, 24, 28

After _________years in involuntary inactive status, the license will become null and void.

2

One Commission member must be licensed as a broker or a sales associate who has held an active license for ________ years preceding appointment.

2

A licensee who is a member of the US armed faces is exempt from the renewal provisions during active duty and _______________ _________________ after discharge

2 years

A license that has been involuntary inactive for more than ___________ ___________________ becomes ___________ and _________________ without further action by the DBPR or FREC.

2 years; null and void

An individual on active duty with the U.S. Navy who is not engaged in real estate brokerage activity in the private sector for profit has what period of time after discharge from active duty to renew a real estate license?

24 Months. A licensee in good standing who is a member of the U.S. armed forces is exempt from the renewal provisions during active duty and for a period of 24 months after discharge from active duty. The armed forces exemption applies, provided the licensee is not engaged in real estate brokerage activity in the private sector for profit.

The governor, subject to confirmation by the Florida Senate, appoints Commission members to _________ year staggered terms. There is no legislated maximum number of years Commissioners may serve, though Commissioners may not serve more than two consecutive terms. Each member of the Commission is accountable to the governor, not the DBPR, for proper performance. All FREC members are exempt from civil liability while performing in their official capacity.

4

Elegibility for reviving commission: Disciplinary guidelines: Sharing a commission with or paying a fee to a person not properly licensed under Chapter ______. For a first violation, the licensee may be issued a $250 to $1,000 administrative fine and be subject to a 30-day suspension to possible revocation of the license, depending on the details of the case.

475, F.S., is a violation of section 475.25(1)(h), F.S

Four FREC members must be licensed brokers who have held an active license for __________ years preceding appointment.

5

A Florida real estate licensee who moves out of state and becomes a nonresident of Florida is required by law to notify the Commission within ____ days of the change in residency. The licensee agrees to keep the licensee's mailing address current. Nonresident licensees must satisfactorily complete the post-licensing and continuing education required of all Florida real estate licensees. Nonresident applicants and licensees must comply with all other F.S. 475 requirements and FREC rules. Licensees must always notify the FREC within 10 days of their change in mailing address; however, licensees have up to 60 days to comply with nonresident requirements.

60

Example of a license renewal situation

Assume the initial effective date of a sales associate license was July 25, 2015. What expiration date will give the licensee at least 18 months of licensure but not more than a 24-month license period? Hint: 24 months from the initial effective date is July 25, 2017. To answer this question, ask yourself which expiration date in 2017 is closest to July 25, 2017, but not after July 25, 2017? March comes before July, so the expiration date closest to July 25, 2017, but not past July 25 must be March 31, 2017. (September 30, 2017, is after July 25, 2017.) March is four months before July, so this licensee will have approximately 20 months of licensure (24 months minus 4 months). Thereafter, this license will always expire every two years (biennially) on March 31

Which task must a sales associate complete before the expiration of the initial sales associate license?

Complete the 45-hour post-license education course. The answer is complete the 45-hour post-license education course. Sales associates must complete 45 hours of post-license education before the first renewal of their initial license.

_______________ ____________________ _________________ is the residential address a licensee uses to receive mail through the U.S. Postal Service.

Current mailing address

What is the DBPR?

Department of Business and Professional Regulation

Change of employer: When sales associates choose to work for a different brokerage firm, the associates have certain responsibilities to their former employer

Duplication of records from a previous employer constitutes breach of trust, even if the person copying the records originated them, when done for the purpose of taking listings to a new employer. Furthermore, the removal of records from a previous employer's office constitutes theft.

The FREC makes decisions and sets policies that are carried out by the Division of Real Estate. The powers and duties of the FREC fall into three general areas of responsibility:

Executive Quasi-legislative Quasi-judicial

The Commission's authority to regulate and enforce the license law is which type of power?

Executive. The executive powers to regulate and enforce the license law are delegated to the Commission by the Florida Legislature.

The appointment of the director of the DRE is subject to approval by the

FREC

A real estate sales associate whose license was expired at the time of performing real estate services must renew the license before the title closing in order to lawfully receive compensation for the transaction. False

False. A real estate sales associate whose license was expired at the time of performing real estate services must renew the license before the title closing in order to lawfully receive compensation for the transaction.

The Florida Real Estate Commission (FREC) consists of seven members:

Five of the members are professional (licensed) members, of which: -4 must be Florida real estate brokers who have held active licenses during the five years preceding appointment -1 must be either a Florida real estate broker or sales associate who has held an active license during the two years preceding appointment. -2 remaining members are consumer (unlicensed or lay) members who have never been real estate brokers or sales associates. -At least one of the seven members must be 60 years of age or older.

Which power is NOT given to the Florida Real Estate Commission?

Imposing Jail Sentences

___________________________- status occurs when a licensee fails to renew an active license before its expiration date.

Involuntary inactive

If a servicemember (or the servicemember's spouse) is actively engaged in real estate in the private sector, for profit, during active duty and for the two years following discharge, the servicemember must complete the required license renewal provisions. However, the DBPR will waive the ________________ _____________ __________.

License renewal fee

License Renewal Periods: The initial effective date of a real estate license is the date the DBPR issues the license. All real estate licenses are issued with an expiration date of either ____________31 or __________________ 30. The expiration date assigned to a particular license is the date that will give the licensee as close to 24 months of licensure as possible, without exceeding 24 months. License law mandates that the initial license period must provide the licensee at least _____months of licensure but not more than _____ months.

March (31) or September (30) 18 (months) not more than 24 (months)

How many Florida Real Estate Commission members may be licensed as real estate sales associates?

One. Four members must be licensed as brokers and two members must be consumer members. The seventh member may be either a licensed broker or a sales associate who has held an active license during the two years preceding appointment.

The DRE offices are located in ______________________, Florida

Orlando

Indicate whether each Commission duty is an executive power, a quasi-legislative power, or a quasi-judicial power. Grant and deny applications

Quasi-Judicial

Indicate whether each Commission duty is an executive power, a quasi-legislative power, or a quasi-judicial power. Suspend and revoke license

Quasi-Judicial

The FREC's power to determine license law violations is an exercise of which type of power?

Quasi-Judicial. The answer is quasi-judicial. Quasi-judicial responsibilities include the power to grant or deny license applications, to determine license law violations, and to administer penalties.

Indicate whether each Commission duty is an executive power, a quasi-legislative power, or a quasi-judicial power. Create and pass rules

Quasi-Legislative

__________________________responsibilities include the power to grant or deny license applications, to determine license law violations, and to administer penalties.

Quasi-judicial Grant or deny applications for licensure: the commission certifies an applicant as qualified before a license is issued. Suspend or revoke licenses and impose administrative fines: the commission adopts, by rule, guidelines for the disciplinary actions that it imposes. Make determinations of violations: the commission is obligated to report any criminal violation of Chapter 475, when it knows of such violations, to the states attorney having jurisdiction.

________________________ responsibilities include the power to enact and revise administrative rules and bylaws and decide questions regarding the practice of real estate.

Quasi-legislative. Create and pass rules and by laws: the commission promulgates (adopts) rules that enforce the Florida statutory license law. Regulate professional practices

The DBPR offices are located in

Tallahassee, Florida

Division of Florida Condominiums, Timeshares, and Mobile Homes

The Division provides consumer protection for Florida residents through education, complaint resolution, mediation and arbitration, and developer disclosure. It regulates condiminiums, time shares, and mobile home parks. This Division is also charged with providing an arbitration program to handle recall and election disputes for home owners associations (HOA).

Florida Real Estate Commission

The Florida Real Estate Commission (FREC) is the regulatory body charged by the Florida Legislature with protecting the general public by regulating real estate brokers and brokerage firms, broker associates, sales associates, and real estate schools and instructors. The FREC is also charged with fostering the education of real estate licensees and permit holders. This includes the regulation of proprietary real estate schools and all noncredit, FREC-approved courses offered by colleges, universities, community colleges, and area technical centers. The objective of such regulation is to protect the public (consumer protection) by ensuring that real estate licensees have at least a minimal degree of competence.

A licensed broker is the broker for two independent real estate brokerages. Which statement applies to this situation?

The broker must request and be issued multiple broker licenses—one for each brokerage company. The answer is the broker must request and be issued multiple broker licenses—one for each brokerage company. Multiple licenses are issued to brokers who qualify as the broker for more than one business entity. A broker who holds more than one Florida broker license is said to hold multiple licenses.

A sales associate is in his third license renewal cycle. The licensee neglected to renew his license before the expiration date seven months ago. Which statement applies to this situation?

The licensee must complete 14 hours of continuing education. When a licensee has been in involuntary inactive status for 12 months or less, the licensee may satisfy the education requirement by completing 14 hours of FREC-approved continuing education.

A man is the broker for two independent brokerage entities. He needs to apply for and hold a group license. FALSE

The man needs a broker license for each of the brokerage entities. This is called holding multiple licenses.

A sales associate whose license has been involuntarily inactive for more than 24 months becomes null and void. True

True

The Florida Real Estate Commission's duty to create and pass real estate rules and bylaws is the exercise of quasi-legislative power. True

True

The duties of the Division of Real Estate duties are essentially administrative and ministerial. The administrative duties include routine duties and clerical functions of behalf of the FREC. The DRE's ministerial duties involve recordkeeping.

True

The secretary of the DBPR is appointed by the governor.

True

To perform real estate services for another for compensation, the licensee's primary status must state either current or probation. True

True

The director of the Division of Real Estate (DRE) is appointed by the secretary of the DBPR, subject to the Florida Real Estate Commission

True the Florida Real Estate Commission (FREC)

A real estate developer owns several subdivisions that are in the names of different entities. Sales associates who are employed by the developer hold a group license. True

True A group license is issued to sales associates who are registered under an owner-developer who owns properties in the names of several entities.

The powers of the FREC are limited to administrative matters and do not extend to criminal actions. True

True. The powers of the FREC are limited to administrative matters and do not extend to criminal actions. The FREC may not impose imprisonment as a penalty.

After what period of time does an involuntary inactive license automatically expire and become null and void?

Two years. When a license is in involuntary inactive status for more than two years, the license automatically expires, and it becomes null and void.

A brokerage office changes business address. What action must the broker take?

Within 10 days of moving, inform the DBPR in writing of the change in business address.

An __________ ______________ is required to engage in real estate brokerage services. Sales associates achieve active status by finding an employer and registering with the DBPR under the employing broker or owner-developer. Licensees who choose not to engage in the real estate business may place their licenses on inactive status. There are two types of inactive status: (1) voluntary inactive and (2) involuntary inactive.

active license

To renew a real estate license, the licensee submits the renewal notice and the _______________ license fee. Real estate licensees must complete the applicable post-licensing or continuing education requirement before renewing a license. By submitting the renewal notice to the DBPR, the licensee is attesting to having completed the education requirement

biennial

The only broker of a real estate brokerage retires and changes his license status to voluntary inactive. The sales associates' licenses ______________ _____________ _________ _________ _________ until the associates are registered under a new broker- employee.

cease to be in force

When a license ____________ ___ _____ ___ ______________it means that under Florida law, the associate is not authorized to perform real estate services that require a real estate license, because the associate is not properly registered. The DBPR database would indicate that the associate's license is active and registered under the previous employer, when in fact, the associate is working for the new employer. The DBPR database is not updated until the change of employer information is submitted to the DBPR.

ceases to be in force

Example of license status: A search of Jane Doe, licensed sales associate, revealed the following license status: Current/Active. Current is the primary status. A current status indicates that the licensee is up to date with respect to the DBPR's requirements for licensure (e.g., timely renewal). Active is the secondary status. Active indicates that the licensed sales associate is allowed to operate under the associated license. Sales associates must have a registered broker or be registered with an owner-developer (the associated license). It is prudent for sales associates and other licensees who are required to have their license associated with another licensee to verify the association by selecting "View Related License Information" when conducting a license search. Licensees should not assume their license is registered with the appropriate broker/brokerage. Errors do happen, so when becoming initially licensed or changing employers, verify your license status and that your license is associated with your registered broker.

current/active primary and secondary

A real estate licensee must not perform real estate services following the __________________ date of the license.

expiration

After leaving a former employer, a sales associate who diverts a buyer or a seller of the former employer from completion of a transaction may sustain liability for breach of ________________to the former employer and possibly to the party that hired the former employer. Sales associates and broker associates are agents of their employing broker (principal) and, as such, a fiduciary duty exists. To divert buyers or sellers or to use confidential information is both unethical and illegal in Florida. Additionally, a sales associate may have agreed contractually to a noncompete agreement.

fiduciary. Because of the fiduciary relationship between sales associates and their employers, the obligations of sales associates do not end with termination of employment. Sales associates are prohibited from disclosing confidential information learned as a result of employment. Licensees are further prohibited from doing anything that might discredit a former employer or damage the goodwill of the employer's business.

The secretary of the DBPR is appointed by the ____________________, subject to confirmation by the state ____________________.

governor, senate

A ______________ ____________ is sometimes issued to sales associates or broker associates who are registered under an owner-developer. An owner-developer may own properties in the names of various entities. If the entities are all connected so that ownership and control is with the same individual(s), sales associates and broker associates employed by the owner-developer may be issued a group license.

group license

The FREC may reinstate the license of an individual whose license has become null and void if the Commission determines that the former licensee failed to comply with the statute because of ______________ or ____________ _________________.The former licensee must apply to the FREC for reinstatement within six months after the date that the license became null and void (see "Hardship Cases" in Unit 2).

illness or economic hardship

A sales associate who is registered under the retiring broker in the previous question has been working with several prospective buyers. The associate wants t continue showing property to the prospects. The associate must register under a new broker employer __________________ to continue to perform real estate services.

immediately

Brokers license suspension or revocation: When a broker's license is suspended or revoked, no disciplinary action is taken against the sales associates and broker associates registered under that broker. However, the licensees registered under the disciplined broker cannot continue working under the penalized broker. The DBPR places the licenses of any sales associates and broker associates registered under the penalized broker on ______________ _______________ status. The sales associates and broker associates are free to seek another employer and register as active under a new employer. A sales associate's license is returned to active status as soon as a new employer is chosen and the information is filed with the DBPR. Alternatively, if the sales associate chooses to not practice real estate, the licensee can change the license status to voluntary inactive within the licensee's online DBPR account.

involuntary inactive

If a licensee does not renew a license by the expiration date, the license reverts automatically to _______________ _____________________ status.

involuntary inactive

If a licensee fails to renew an active or voluntary inactive license before the expiration date (other than the first renewal), the license reverts automatically to ______________ _______________ status. The licensee must complete continuing education and renew the license to either active or voluntary inactive status within the next two years. A license is placed in involuntary inactive status for no more than two years. After two years the license automatically expires (becomes null and void) by operation of law without further FREC or DBPR action. Ninety days before expiration of an involuntary inactive license, the DBPR notifies licensees of this upcoming deadline. Once their license becomes void, individuals who want to practice real estate again must reapply for licensure, retake the 63-hour prelicense course, and retake and pass the license exam.

involuntary inactive

When a license is null and void, it no longer exists. A license becomes null and void when the following situations occur: When a license has been ____________ _______________ for more than two years, the license becomes null and void without any further action by the DBPR or FREC. A license that has been revoked after a disciplinary proceeding becomes ___________ and _____________. Revocation of a license is a permanent penalty (the licensee is put out of the real estate business forever). Failure to complete the post-license education requirement before the expiration of the initial license will cause the license to become null and void.

involuntary inactive. null (and) void.

If licensees renew after the expiration date, a ________ fee is charged. If a licensee does not renew a license by the expiration date, the license reverts automatically to ___________ _________________ status (involuntary inactive status is discussed later in this unit). An active licensee who fails to renew a license following the expiration date has 24 months in which to renew the license. A real estate licensee must not practice real estate following the expiration date of the license. It is also unlawful for a licensee holding a current inactive license to perform the services of real estate for compensation.

late, involuntary inactive

A licensee who has an inactive license __________ perform real estate services.

may not

A ____________________- license no longer exists.

null and void

Failure to complete the post-license education before expiration of the initial license will cause the license to become ___________________________.

null and void.

A search of John Jones, licensed real estate sales associate, indicated the following license status: Probation/Active. The primary status is probation. This status allows the licensee to continue to practice real estate while completing conditions imposed by the FREC as a condition of discipline, such as to complete education courses and pay fines. The secondary status is active. This indicates a licensee has been disciplined but is able to continue to operate under the associated license.

probation/active primary and secondary

Division of Real Estate (DRE)

provides all services required to administer the Florida real estate license law.The administrative duties include routine duties and clerical functions on behalf of the FREC. The DRE's ministerial duties involve recordkeeping. -Florida statute mandates that the DRE offices and the principal office of the Commission be located in Orlando, Florida. -The director of the DRE is appointed by the secretary of the DBPR, subject to approval by majority vote of the FREC. The director is a senior employee charged with the direct service assistance to the Commission. -The DBPR employs all DRE personnel to support FREC activities.

The Commissions power to determine violations of license law and to administer penalties is an excursive of its _______________________power

quasi-judicial

The Commissions power to enact rules and regulations is an exercise of its ______________________ power

quasi-legislative

The DRE ministerial duties involve

record keeping

Commission members do not receive a ______________. In lieu of ______________, they are paid $50 per day for each day they attend an official meeting and for each day they participate in other Commission business. Commissioners also are reimbursed for out-of-pocket travel expenses, including mileage, meals, and hotel charges associated with their official duties.

salary, salary

The director of the Division of Real Estate is appointed by the

secretary of the Department of Business and Professional Regulation. The answer is secretary of the Department of Business and Professional Regulation. The director of the DRE is appointed by the secretary of the DBPR, subject to approval by majority vote of the FREC.

The director of the DRE is appointed by the DBPR

senate

Two members of the FREC are consumer members who are ____________________

unlicensed or lay

A person who no longer wants to engage in the real estate business can _______________ ________________ or cancel the license, provided there is no investigation or disciplinary proceeding pending against the licensee. The licensee sends written communication to the DBPR indicating that the licensee is retiring or no longer desires to be licensed. When a license is canceled, it becomes null and void. Cancellation of a license is effective on the date the Commission accepts the voluntary relinquishment. Cancellation does not involve disciplinary action.

voluntarily relinquish