Chapter 1-2 Key Concepts Flashcards Preview

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Flashcards in Chapter 1-2 Key Concepts Deck (45):
1

Two types of real estate licenses

  • Sales associate is the introductory level:
    • sales associates are employed by and work under the direction and control of a broker or an owner-developer;
    • sales associates are agents of their employer.
  • Broker licenses require additional educcation and experience and apssing the broker license exam

2

Holds a broker's license but chooses to register and work in real estate under the direction of another broker.

Broker Associate

3

Owner-developer

  • An unlicensed entity taht sells, exchanges, or leases its own property
    • Sales staff must hold active real estate licenses to be paid commission
    • Sales staff is exempt from licensure if paid strictly on salaried basis

4

Application requirements

  • Background information required concerning whether the applicant has been convicted of a crime, pled guilty to a crime, or pled nolo contedere (no contest)
  • Must disclose prior conviction even if court action (adjudication) was withheld
  • Disclose on the application any other name or alias, including a maiden anme
  • Applicants are not required to disclose a personal bankruptcy

5

Applicant Requirements

  • Be 18 years of age or older
  • Have earned a high school diplima (or equivalent)
  • Possess a Social Security number
  • Be of good character
  • Have not violated Chapter 475 within one year prior to application

6

How long is the license application good for?

The license application is good for 2 year from the date the complete application is received by the DBPR

7

Nonresident applicant requirements

  • U.S. citizenship is not required; however, applicant must possess a Social Security number
  • Applicant do not have to be residents of Florida
  • Nonresident applicants must indicate on the application that they are not residents of Florida
  • Resident licensees who move out of the state (become nonresidents of Florida) must notify the Commission of the change in residency with 60 days
  • Nonresident licensees must comply with all Chapter 475, F.S. requirements and FREC rules

8

Mutual recognition agreements

Recognize the education and experience that real estate licensees have acquired in another state or nation

  • Applies exclusively to nonresidents licensed in other jurisdictions
  • Requires applicants to submit a certificate of license history from teh real estate commission of the state in which they are licensed
  • Requires applicants to pass a 40-question, Florida-specific real estate law exam with a grade of 75% or higher
  • Licensees licensed through mutual recognition must complete the Florida post-licensing requirement

9

Florida Resident

  • A person who has resided in Florida continuously for a period of 4 calendar months within the preceding year
  • A person who currently resides in Florida with th eintention to reside continuously in Flroida for a period of 4 months or more
  • The test used to determine whether an applicant for licensure qualifies as anonresident under mutual recognition

10

Sales associate education requirements

  • Complete Course I (commission prescribed prelicense course for sales associate candidates) with a passing score of at least 70% on the end-of-course exam
  • If applicant does not pass the sate license exam within 2 years after the course completion date, the course completion expires and the applicant must again complete Course I

11

Exceptions to the prelicense course requirement

  • Attorneys who active members of The Florida Bar are exempt from Course I
  • Individuals with a 4 year college degree in real estate are exempt from Course I

12

Post-licensing requirements for sales associates

  • Florida sales assocaites must complete the 45 hour post licensing course before the expiration of the initial sales associate license
  • Failure to complete the post-licensing requirement prior to the expiration date will cause the license to become null or void
  • Sales assocaites who do not complete the post-licensing requirement must requalify for licensure by again completing Course I and passing the state license exam
  • Florida-licensed attorneys who are also licensed in real estate sales associates must complete the post-licensing education requirement
  • Individuals with 4 year college degree in real estate are exempt from the post-license requirements for sales assocaites.

13

Broker requirements

  • Complete Course II (Commission prescribed prelicense course for broker candidates) with a passing score of at least 70 on the end-course exam
  • Must complete at least 24 months of real estate experience during the 5 year period preceding becoming licensed as a broker
  • Broker applicants who hold a Florida real estate sales assocaite's license must complete the 45 hours post licensing course for sales associate before the initial sales assocaite's license expires to be eligible for a broker's license
  • Broker applicants who have received a 4 year degree in real estate are exempt from Course II

14

Broker post-licensing education

  • Florida brokers must complete the 60 hour post licensing course before the first renewal of their license
  • Failure to complete the post-licensing requirement prior to the expiration date will cause the license to become null or void
  • In such cases, the broker may requres and receive a sales associate's license if the or she completes 14 hours of continuing education within 6 months following expiration of the broker's license
  • Broker who have a four-year college degree in real estate are exempt from the broker post-license education requirement

15

Continuing education requirement

14 hours of continuing education each subsequent licensure period following the initial license period

16

Attorneys

Attorneys who are active members of the Florida Bar are exempt from Course I (for sales assocaites) and continuing education (but not post-licensing education)

17

Individuals with 4 year degree in real estate

Exempt from Course I, Course II, and post -licensing education but not exempt from cintinuing education

18

Prima facie evidence

  • A legal term used to refer to evidence that is good and suficient on its face to establish a given fact or prove a case
  • A real estate license indicates that licensee's name, issue date, and expiration date, and serves as a prima facie evidence that the licensee holds a current and valid license

19

Real Estate services (A BAR SALE)

  • A  Advertise real estate
  • B  Buy
  • A  Appraise
  • R  Rent or provide rental information or lists
  • S  Sell
  • A  Auction
  • L  Lease
  • E  Exchange

20

When is a real estate license required?

if a person performs any real estate service for compensation or the implied intent to collect compensation, unless specifically exempt

  • Compensation includes money in the form of a salary, bonuses, commissions, and gratituties
  • Compensation is also things of value such as dinner, flowers, wine, gift certificates, and even tickets.

21

Can real estate attorney receive compensation?

Real estate attorneys may not receive compensation for performing real esate services, including referral of clients and prospects, unless they also have a real estate license

22

General Exemptions from Licensure

  • Property owners who buy, sell, exchange, or lease their own real property (person who sells or leases real estate that he or she does not own is presumed to be acting as a real estate licensee)
  • Part owners provided they do not receive a larger share of the profits than their proportional investment
  • Business entities that sell, exchange, or lease their own real property
  • Salaried employees of business entities who sell, exchange, or lease real property for their employer provided they are not paid a commission or compensated on a transactional basis

23

Also exempt from real estate licensure are salaried employees

  • Who work in an on-site rental office in a leasing capacity who do not receive commission (there is no restriction on the duration of the rental leases for this exemption)
  • Who are managers of condominium or cooperative apartment complexes who rent individual units for periods no longer than one year and who are not paid commission
  • Of an onwer-developer (real estate developer), provided they do not receive commission
  • Of a governmental agency who perform real estate services for the state and who do not receive commissions (exemption includes person who appraise railroad property for tax purposes)

24

Chapter 475 exempts the following individuals from holding a real estate license

  • PErson who sells cemetery lots
  • Individuals who rent lots in a mobile home park or recreational travel park
  • Attorneys-at-law when acting within the scope of their professioanl duties in an attorney-client relationship (holding a Florida Bar license does not entitle an attorney to compensation for performin real estate services)
  • Certified public accountants (CPA) when performing accounting duties within the scope of the professional duties
  • Persons who have been given the power of attorney (attorney-in-fact) in order to sign contracts and conveyances on someone's behalf
  • Owners of time-share periods for their own use and occupancy who later offer the time-share periods for resale

25

FREC consists of how many members?

The Florida Real Estate Commission (FREC) consists of 7 members

26

Five Commissioners are professional (licensed) members

  • Four must be Florida real estate brokers who have held active licenses during the 5 years preceding appointment
  • One must be either a Florida real estate broker or sales assocaite that has held an active license during the 2 years preceding appointment

27

Two remaining members are consumer (unlicensed) members

Consumer members have never been real estate brokers or sales assocaites

28

Seven Florida Real Estate Commissioners

  • Appointed by the governor, subject to confirmation by the Florida Senate
  • Appointed to four-year staggered terms
  • May not serve more than 2 consecutive terms
  • Paid $50 per day per diem
  • At least one of the seven members must be 60 year or older

29

Commission powers

include 3 general areas

  • Executive power to regulate and enforce license law
  • Quasi-legislative power to enact and revice administrative rules
  • Quasi-judiial power to grant or deny applications and administer penalties

30

Specific duties of teh FREC

  • Adopt a seal
  • Foster the education of applicants and licensees
  • Make determination of violations
  • Regulate professional practices
  • Create and pass rules and regulations
  • Establish fee
  • Grant and deny applications for licensure
  • Suspend and revoke licenses, and impose administrative fines

31

Can FREC impose imprisonment as a punishment

FREC may not impose imprisonment as a punishment

32

Department of Business and Professional Regulation (DBPR)

  • Under the executive branch of the governor
  • Governed by the Florida Statute 20
  • Has authority to investigate consumer complaints, issue subpoenas when conducting investigations, issue cease and desist orders to unlicensed individuals, and issue citations to licensed individuals
  • Initial application fee, biennial license fee, and unlicensed activity fee are waived for military veterans who apply for a DBPR license within 24 months after honorable discharge

33

Division of Real Estate (DRE)

  • The Director of the DRE is apponted by the Secretary of the DBPR, subject to FREC approval
  • Administrative duties of DRE include routine duties and clerical functions on behalf of the FREC
  • Ministerial duties involve record keeping

34

How many days does licensees have to notify DBPR about change in current mailing address?

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

35

Initial effective date of real estate license

Initinal effective date of real estate license is the date the applicant passed the license exam

  • Real estate licenses are issued with an expiration date of either March 31 or Septemeber 30
  • The expiration date that is 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

36

Active status

Active status required to operate as a licensee

The licensee must have an active license at the time the service of real estate was performed, however, the licensee, may be inactive at the time payment is received.

37

Licensees post-licesing education

  • Licensees must complete applicable post-license education or continue education before renewaing a license
  • When a licensee signs and returns the renewal application, the licensee is attesting to have completed the education requirement

38

Two types of inactive status

  • Voluntary inactive - A licensee has timely renewed but chooses not to engage in the real estate business; licensee requests to be places in this status and the licensee may renew as voluntary inactive indefinitely
  • Involuntary inactive - After 2 years, the license automatically expries (becomes null and void) by operation of law

39

Members of U.S. Armed Forces who have licenses in good standing are exempted from

Members of U.S. Armed Forces who have licenses in good standing are exempted from renewal while on active duty and for 6 months thereafter:

  • If the military duty is out of state, the exemption also applies to a licensed spouse
  • The exemption does not apply if the licensee engages in real estate services for profit during that period
  • The DBPR may issue a temporary real estate license to the spouse of an active duty member of the Armed Forces who is assigned to duty in Florida
  • The spouse must hold a valid real estate license in another state or foreign jurisdiction
  • A temporary license expires six months after the date of issue and is not renewable

40

Void license

Void license means the license no longer exists

  • When a licnese is involuntary inactive for more than 2 years, the license becomes null and void without any further action by the DBPR or FREC
  • A license becomes void when it has been revoked
  • A person who no longer wants to engage in the real estate business can voluntarily cancel being licensed; when a license is canceled, it becomes null and void.

41

Ineffective License

Ineffective license exists, but the licensee cannot use it

  • A license is ineffective when it is inactive or it has been suspended
  • A licensee who has met all the requirements  for licensure but who chooses not to work in the real estate industry may request voluntary inactive status
  • A licensee who fails to renew the license prior to the expiration date (other than the first renewal) is automatically placed in involuntary inactive status
  • When a broker's license is suspended or revoked, the licenses of the sales assocaites registered under the broker are placed in involuntary inactive status until employement under another broker is arranged
  • Real estate licensees with an inactive license may not perform real estate services
  • A real estate license is ineffective during the period of license suspension

42

Cease to be in force

Cease to be in force means that the licensee cannot conduct business

  • If a sales associate leaves one borkerage and wants to work for another, the DBPR must be informed of the new employer
  • Until the sales assocaite is registered under the new employer, the sales assocaite cannot work
  • The sales assocaite's license ceases to be in force until the sales associate has registered with the new broker

43

Multiple Licenses

  • Issued to a broker who qualifies as the broker for more than one brokerage entity
  • For each business that a person is a broker, a separate broker license must be obtained
  • Because sales associates and broker assocaites may have only one registered employer at a time, sales associates and broker associates may not hold multiple licenses

44

Group License

Group License is a term that means a sales associate is registered with an owner-developer who owns properties in the name of various entities

  • Sales associates and broker associates who are employed by an unlicensed owner of real estate (a developer) are issued  group license
  • The group license entitles the licensee to work at various sales projects for the owner-developer

45

Ten days to notify the Commission

  • Broker or a registered school changes business address
  • Sales associate, broker associate, or real estate instructor changes employer
  • The license cease to be in force (business cannot be conducted) until FREC receives proper notification