Florida Real Estate Principles Practices Law 39 th

Florida Real Estate Principles, Practices & Law 39 th Edition Unit 3: Real Estate License Law And Commission Rules

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 – Issue citations

Current Mailing Address • The current residential address a licensee uses to receive mail • PO box is acceptable mailing address • Address of record – Where DBPR sends official communication – Mailing or email address

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

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

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

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 on official business • Monthly meetings

Commission General Powers and Duties • Executive Power – Regulate and enforce license law – Foster education – Adopt a seal – Establish fees

Commission General Powers and Duties • Quasi-legislative – Create and pass rules and regulations – Regulate professional practices

Commission General Powers and Duties • Quasi-judicial – Grant or deny applications – Suspend or revoke licenses and issue administrative fines – Make determinations of violations

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

Armed Forces Renewal Exemption • Licensee in good standing who is a member of the U. S. Armed Forces is exempt from renewal requirements during active duty and for 6 months after discharge from active duty – If military duty is out of state, the exemption also applies to a licensed spouse

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 6 months after the date of issue (not renewable)

Active vs. Inactive Status • Active license required to perform services of real estate for compensation • Voluntary Inactive Status – Licensee requests inactive status – Voluntary inactive licensees must complete education and renewal requirements • Involuntary Inactive Status – Fail to renew license before the expiration date – After 2 years, involuntary inactive license is null and void

Involuntary Inactive License Reactivation • 12 months or less – Complete 14 hour continuing education course • More than 12 months but less than 24 months – Complete 28 hours of a Commissionprescribed education course

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

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 – Voluntarily relinquish (does not involve disciplinary action)

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

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

Group License • Group licenses are issued to sales associates and broker associates who register under an owner-developer (real estate developer) • Owner-developer sends DBPR list of legal company names • Sales associate or broker associate has – One license – One employer