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