Florida Real Estate Commission

FLORIDA REAL ESTATE COMMISSION 

Purpose of regulation 

Rules governing internal organization and operation 

General structure 

Duties and powers 

Purpose of 

regulation As with all real estate laws and statutes, the purpose of the FREC’s rules is to protect the public from fraud and incompetent practices. The DRE provides administrative support to the Commission in providing this protection. Section 3: Real Estate License Law / Commission Rules 51 

Rules governing 

internal organization 

and operation Chapter 61J2-20 of the FREC administrative codes lays out the rules that govern the organization and operation structure of the Commission. 

 A probable cause panel must be established to determine if probable cause exists to charge a licensee with a license law or FREC rules violation. The panel must include one current member of the Commission and can include one former member. 

 Any member of the Commission who misses three consecutive meetings or 50 percent or more of the meetings, all without advance notice, within 1 year will be removed from the Commission. That member’s position will be considered vacant. 

 The main office of the Commission is to be in Orlando, Florida. 

 The DBPR is the designated reporter for all rendered orders of the Commission and maintains those orders in Tallahassee, Florida. 

 Members of the public may notify the Commission in writing of their wish to be heard on a specific subject and then be provided 3 minutes to speak at an official Commission meeting. 

General structure Composition and qualifications of members. The Commission is made up of seven members who are appointed by the Governor and confirmed by the Senate. Of these seven members, 

 four must be licensed brokers who have held active licenses for the preceding 5 years 

 one must be a licensed broker or sales associate who has held an active license for the preceding 2 years 

 two must not be, nor ever have been, licensed brokers or sales associates. 

At least one of the members must be 60 years or older. Of the seven members, one is elected annually from the membership to serve as chairperson and a second to serve as vice-chairperson. 

All members are appointed for 4-year staggered terms, with not more than two members’ terms expiring on the same year. A new member may be appointed to fill a vacancy created during an unexpired term. While there is no limit on the total number of years a member may serve, he or she may serve the remaining portion of a previous member’s unexpired term and then not more than two consecutive terms of his or her own. Members also may not hold any other public office while serving on the FREC. 

Legal counsel. If the Commission obtains approval from the Attorney General, it may hire an independent attorney to provide legal advice on a specific matter. An attorney working for the commission is not allowed to prosecute a specific matter and also provide legal services to the commission regarding the same matter. 52 Principles of Real Estate Practice in Florida 

Meetings and minutes. The FREC meets monthly with each meeting typically lasting for 2 days and each Commissioner being paid a per diem rate rather than a salary and reimbursement for out-of-pocket business expenses. There must be one annual meeting wherein the members elect a chairperson and vice-chairperson. Meetings are held at the DRE’s main offices in Orlando. A four-member quorum must be present. 

Duties and powers Specific areas of responsibility. The FREC has the power and duty to enforce the license law. In doing so, it is authorized to 

 establish rules and regulations to execute the provisions of law 

 decide questions of practice that come up during Commission proceedings 

 investigate complaints against licensees 

 certify or refuse to certify applicants as qualified for licensure 

 issue, deny, suspend, or revoke real estate licenses 

 keep records 

Fees. The commission has the authority to establish fees which an applicant or licensee is to pay for application, examination, reexamination, initial licensing and license renewal, certification and recertification, reinstatement, record making, and recordkeeping. 

By the end of September each year, the Commission is to perform a review to ensure that the fees collected are adequate to cover all anticipated costs and to maintain a reasonable cash balance. If the fees will not be adequate to cover the costs and cash balance, the Commission may increase the appropriate fees or assess a one-time fee to cover the deficiency. If the collected fees will be more than required for a cash balance, the Commission may decrease the appropriate fees. 

Rulemaking. The Commission has the authority to pass rules to enable it to perform its duties. Such rules make up Chapter 61J2 of the Florida Administrative Code. The Commission has adopted and uses a seal to authenticate its proceedings. Printed or written copies under the seal of the Commission are considered prima facie evidence of their existence and substance, and the courts are mandated to recognize the rules. 

Because FREC does not make laws but instead makes rules to ensure the laws are followed, FREC is considered to be quasi-legislative. 

Education. The Commission has a duty to prescribe or approve real estate education courses for applicants, licensees, and instructors concerning the ethical, legal, and business principles that should govern their conduct. 

This duty includes courses for prelicense, post-license, and continuing education requirements. Section 3: Real Estate License Law / Commission Rules 53 

To encourage this education, the Commission may publish and sell educational materials to applicants, licensees, and members of the public. The Commission also has a duty to regulate proprietary real estate schools and non-credit courses offered by institutes of higher education and technical centers. 

Discipline. The Commission has the authority to deny an application for licensure or renewal, to place a licensee on probation, to suspend or revoke a license, to administer fines, and to issue reprimands if it determines the applicant or licensee has 

 been guilty of fraud or dishonesty 

 violated a legal or contractual duty 

 failed to account for or deliver someone else’s personal property 

 been guilty of any real estate-related crime or a crime involving moral turpitude 

 had a license suspended, revoked, or acted against or had an application for licensure denied in any jurisdiction 

 in any way violated any Florida license law 

The Commission is required to report any known criminal violations of license law to the State Attorney. It must also notify the Division of Florida Condominiums, Timeshares, and Mobile Homes of any disciplinary action taken against an associated licensee. 

Since FREC has the authority to act as judge and jury for violation of F.S. 475, it is considered to be quasi-judicial. 

In summary, FREC’s duties are executive, quasi-legislative, and quasi-judicial.