Florida Real Estate Principles Practices Law 43 rd

Florida Real Estate Principles, Practices & Law 43 rd Edition Unit 3: Real Estate License Law And Commission Rules

Department of Business and Professional Regulation (DBPR) • Under the executive branch • Chief administrator: Secretary of DBPR – Appointed by governor, subject to senate confirmation • Licenses and regulates businesses and professionals • Granted legal powers by legislature – Investigate complaints – Issue subpoenas – Issue cease and desist orders – Issue citations © 2017 Kaplan, Inc.

Divisions Under 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 real estate license law • Administrative and ministerial duties – Office located in Orlando © 2017 Kaplan, Inc.

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 © 2017 Kaplan, Inc.

Composition and Qualifications • Five 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 licensed • Members are exempt from civil liability • One must be 60 years of age or older © 2017 Kaplan, Inc.

Commissioners • 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 – Official expenses reimbursed • Monthly meetings © 2017 Kaplan, Inc.

Commission General Powers and Duties • Executive Power – Regulate and enforce license law – Foster education – Adopt a seal (prima facie evidence) – Establish fees © 2017 Kaplan, Inc.

Commission General Powers and Duties • Quasi-legislative – Promulgate (adopt) rules and bylaws – Regulate professional practices © 2017 Kaplan, Inc.

Commission General Powers and Duties • Quasi-judicial – Grant or deny applications – Suspend or revoke licenses and issue administrative fines – Make determinations of violations – The FREC’s activities are limited to administrative matters © 2017 Kaplan, Inc.

License Renewal Periods • Renewal period is two years – Licenses expire on March 31 or September 30 – Must renew prior to expiration date – Notified by the DBPR 90 days in advance of 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 © 2017 Kaplan, Inc.

Armed Forces Renewal Exemption • Licensee in good standing who is a member of the U. S. Armed Forces is exempt from renewal during active duty and for 2 years after discharge from active duty – If military duty is out of state, the exemption also applies to a licensed spouse © 2017 Kaplan, Inc.

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 © 2017 Kaplan, Inc.

Involuntary Inactive License Reactivation Education • Involuntary inactive status: – 12 months or less • Complete 14 hour continuing education course – More than 12 months but less than 24 months • Complete 28 hours of a FREC-prescribed reactivation education course © 2017 Kaplan, Inc.

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 inactive status – Associates may become active again under a new employer © 2017 Kaplan, Inc.

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 – Failure to complete post-license education before initial expiration date – Voluntarily relinquish or cancel (does not involve disciplinary action) © 2017 Kaplan, Inc.

Cease To Be In Force • Licensee cannot conduct business • Four causes – Broker changes business address – Real estate school changes business address – Sales associate changes employer – Instructor changes employer • DBPR must be notified within 10 days of any of these changes © 2017 Kaplan, Inc.

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 • Citation with $500 fine for failure to notify within 10 days © 2017 Kaplan, Inc.

Nonresident Licensees • Notify FREC within 60 days of change in residency • Must complete post-license requirement and thereafter continuing education • Citation with $300 fine for failure to timely notify © 2017 Kaplan, Inc.

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 – Sales associates and broker associates are registered under one brokerage entity © 2017 Kaplan, Inc.

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 © 2017 Kaplan, Inc.