CHAPTER 2 – SNAPSHOT REVIEW
Real Estate License Law and Qualifications for Licensure
Snapshot Review
HISTORY AND PURPOSES OF REAL ESTATE LICENSE LAWS
History of Florida’s real estate license law
● Chapter 475 passed in 1923 as first FL real estate law
●FREC created in 1925
Purpose of regulation
● protect consumers
●caveat emptor overturned in 1985; sellers must disclose property defects even if not asked
Important FL real estate
statutes and rules
● several enacted to protect consumers and to allow qualified individuals to enter real estate profession
LICENSE CATEGORIES
Broker
● licensed to perform real estate services for compensation
● real estate services: sale, exchange, purchase, rental, appraisal, auction, advertising; procuring sellers, buyers, lessors, or lessees
Sales associate
● licensed to perform real estate services under direction of broker
Broker associate
● same license as broker but works under direction of broker
GENERAL LICENSURE PROVISIONS
General qualifications ● 18 years old, high school education, good character, competence, Social Security number; US citizenship not necessary
Required disclosures
● disciplinary or criminal history
● aliases
Reasons for denial
● previous license discipline; performed real estate activities without a license
APPLICATION REQUIREMENTS
Fees
● several fees charged; some waived for military members and veterans, spouses, and surviving spouses
Application form
● must use DBPR form, submit additional documentation
Background checks
● submit to background check, provide fingerprints; provide information about criminal history
Omissions
● applicant to be notified within 30 days of errors and omissions on application
Application approval
● DBPR to approve or deny application within 90 days of receipt; applicant has right to appeal denial
Appealing denials
● accept denial; petition for informal or formal hearing to challenge denial
Application validity
● application valid for 2 years; prelicense course valid for 2 years for licensure exam
Nonresident applications
● detailed later
Course requirements
● applicant to complete courses with 8 or fewer misses, to pass end-of-course exam with 70% score or retake once in a year
●courses to be taken at school, distance learning, correspondence if hardship
●4-year degree substitutes for prelicense course
Education exemptions
● exempt: attorneys; those with 4-year real estate degrees; those with mutual recognition agreement
Public records
● made or received in accordance with law or ordinance in official transaction
SALES ASSOCIATE LICENSE REQUIREMENTS
General requirements
● Social Security number, application approval, fees paid, meet age, education, character, competency, background requirements
Prelicense course
● 60-hour course, 3-hour exam with 70% pass score State license
examination
● within 2 years of course completion; pass with 75% score; print and activate license
●retake failed exam unlimited times; may review incorrect answers
●license issued in inactive status; licensee must associate with broker before performing services
BROKER LICENSE REQUIREMENTS
General requirements
● Social Security number, application approval, fees paid, meet age, education, character, competency, background requirements; complete sales associate post license education
Experience requirement
● active sales associate license for 2 years within past 5 years; worked under broker
Prelicense course
● 69-hour course and 3-hour exam with 70% pass score
State license examination
● within 2 years of course completion; pass with 75% score; print and activate license
●retake failed exam unlimited times; may review incorrect answers
●issued as inactive; activate by filing form
NONRESIDENT LICENSE REQUIREMENTS
Florida resident defined
● reside in FL for 4 months or intend to continue to reside for 4 months
Nonresident application
requirements
● hold license in resident state; submit certificate of license history; meet FL application requirements
Mutual recognition
● agreement of FL and another state to recognize other state’s prelicense education and require laws and rules exam
●reciprocity allows one state’s licensees to obtain another state’s license without meeting all requirements; FL has no reciprocity with other states
Occupational
Opportunity Act
● reciprocal license for military, spouses, surviving spouses, low income licensed in another state; prelicense course and exam waived
LICENSE INFORMATION;
REGISTRATION
License information
● identity, contact, license type, number, dates
●license serves as prima facia evidence of valid licensure
●license issued after applicant meets all requirements
Registration
● all licensees to register with FREC; sales & broker associates to register under broker
LICENSE RENEWAL EDUCATION
Post licensure requirement
● sales associates – 45-hour course and end-of-course exam with 75% pass score
●brokers – 60-hour course and end-of-course exam with 75% pass score
Continuing education
● 14 hours every 2-year license period to include 3 hours of Core Law & 3 hours of Business Ethics
Reactivation education
● involuntary inactive status for 12-24 months can reactivate with 28-hour course and exam with 70% pass score
ACTIVITIES REQUIRING LICENSURE; EXEMPTIONS
Individuals required to be licensed
● anyone who performs real estate services for compensation
Individuals exempt
from licensure
● owners selling own property; attorney in fact or at law; CPA, trustee; certain paid employees; timeshare owner occupant; transient lodging employee, cemetery sales
