© 2009 by South-Western, Cengage Learning SAM IRLANDE R Chapter 3.

© 2009 by South-Western, Cengage Learning

SAMSAMIRLANDEIRLANDE

RR

Chapter 3Chapter 3

Florida Real Estate:Florida Real Estate: Principles, Practices and Principles, Practices and

License LawLicense Law

Chapter 3Chapter 3

License Law and License Law and Commission RulesCommission Rules



Key TermsKey Terms

Active license

Canceled

Cease to be in force

Department of Business and Professional Regulation

Florida Real Estate Commission

Group license

Inactive license

Ineffective

Involuntary inactive

Multiple licenses

Prima facie

Void

Voluntary inactive


Governing Body and Governing Body and EnforcementEnforcement

Florida Real Estate Commission protects the general public

Real estate brokers

Broker associates

Sales associates

Real estate schools

Instructors



Division of Real Estate ministerial and administrative functions

FREC and DRE Department of Business & Professional Regulation



DBPR: Regulates licensed professions & professionals

Division of Technology

Division of Professions and Regulation

The Division of Service Operations and Licensure


Functions of the FREC and Functions of the FREC and the DREthe DRE

Real estate brokers and firms

Broker associates

Sales associates

Schools and instructors

Education of:Licensees

Permit holders



1. Executive powers – regulate & enforce

2. Quasi-legislativeEnact & revise rules & regs.

Interpret questions

3. Quasi-judicialGrant or deny license

Determine violations

Administer penalties



Grant or deny license or registration

Suspend or revoke license or registration

Administer disciplinary

action


Administrative PenaltiesAdministrative Penalties

Denial of license

Refuse renewal

Suspend not to exceed 10 years

Revoke

Fines (475,F.S.)$5000/violation

Fines (455, F.S.)$5000/violation



Failure to provide accurate and current rental information

Up to 1 year in jail

$1,000 fine



Violations of Chapter 485

or…

Violation of lawful order, regulation, or rule

Fine up to $500

Prison term up to 60 days


Practicing Real Estate Practicing Real Estate Without Without a Licensea License

3rd Degree felony $5,000 per count DBPR may issue cease and desist order

FREC powers and dutiesAdopt a seal to act a prima facie evidence

Create or change rules and regulations

Crate syllabus and course content for real estate license

Rules and regulations for schools


Practicing Real Estate Practicing Real Estate Without a LicenseWithout a License

Administer Education and Research Foundation

Create fees: exam fees, initial license fees, recovery fund assessment

FREC reports suspected criminal activity

Does not impose criminal sanctions


Composition, Qualifications, and Composition, Qualifications, and Compensation of the FRECCompensation of the FREC

7 Members4 Members

Hold or have held active Florida real estate broker's license

Minimum of 5 years

2 MembersGeneral public

Never licensed

1 MemberActive broker or sales associate


Composition, Qualifications, and Composition, Qualifications, and Compensation of the FRECCompensation of the FREC

1 Member must be 60 years of age or older

Appointed by the Governor

Serve 4 year termTerm limit (2 consecutive)

Minimum 12 meetings per year

Supervised by the Governor


The Division of Real EstateThe Division of Real Estate

State employees

Funded by Commission

Record keeper

Provides exams

Support services Legal

Administrative

Director appointed by the Secretary of the Dept.


The Division of Real EstateThe Division of Real Estate

Primary dutyAssist FREC in investigative services

Screens applicants

Investigates potential violations


Address RequirementsAddress Requirements

Maintain accurate / current mailing address

Immediately notify of change of address10 days

Citation and $100 fine

NonresidentIrrevocable consent to service

Resident relocating: 60 days to comply with nonresident requirements


License PeriodsLicense Periods

Expiration datesMarch 31

September 30

2 Year license period

1st issuance not less than 18 months


License Renewal / License Renewal / Military ExemptionsMilitary Exemptions

1st Renewal Postlicense education

All other renewals14 hours continuing education

Signature acts as oath


License Renewal / License Renewal / Military ExemptionsMilitary Exemptions

Current members of US Armed Forces

Exempt while on active duty

6 Months to renew without penalty

Spouse

6 mounts to renew without penalty

May not actively practice


Multiple and Group LicensesMultiple and Group Licenses

Group License: Sales or broker associate working for owner-developer of property in name of several entities

Multiple Licenses: Broker may hold more than one license

Sales or broker associateWorks for only 1 broker

Holds only 1 license


Active vs. Inactive LicenseActive vs. Inactive License

Active status: Engaged in real estate activity

Inactive status: Not actively engagedVoluntary inactive: Choice of

licensee

Involuntary inactive

Failure to renew

Summary suspension

Active Inactive



Voluntary InactiveMay not engage in real estate activity

Indefinitely

Must complete all postlicense and continuing education

Reactivate at any time

Notify FREC in writing

Active Inactive



Involuntary InactiveMay not engage in real estate activity

May not remain indefinitely

Must reactivate within 2 years

Notification 90 days prior to expiration

Less than 12 months – 14 hours approved education

More than 12 month – 28 hours approved education

Null & Void – Prelicense process

Active Inactive


Void and Ineffective LicensesVoid and Ineffective Licenses

Expired more than 24 months

Revoked due to disciplinary action

Permanent except for:

Application with false information

Failure to complete continuing education



Void

Not conducting real estate activities

Voluntary inactivity

Involuntary inactivity

Revocation

Suspension



Relocation requiring notification of change of address

Change of association


Registration of Proprietary Registration of Proprietary Real Estate SchoolsReal Estate Schools

© 2009 by South-Western, Cengage Learnin

Schools are registered and issued a permit

ExceptionUniversities

CollegesCommunity colleges




False or misleading statementsPromises of employmentSupplying questions from examsRefunds for failed examsGuaranteed program for passage of state exam for enrollment

Inappropriate Advertising




Develops and funds program for research & education

Info gathered from:SchoolsColleges & universitiesLicenseesGeneral public

© 2009 by South-Western, Cengage Learning SAM IRLANDE R Chapter 3.

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Transcript of © 2009 by South-Western, Cengage Learning SAM IRLANDE R Chapter 3.