Florida Real Estate Study Guide

Front 1

The Passage of Rules Require?

Back 1

A Quorum vote of the commission.

Front 2

Blind Advertising

Back 2

Advertisements that fail to disclose the license name of the brokerage firm.

Front 3

Advertising

Back 3

Anyone who advertises or represents that they are providing real estate services is acting as a real estate broker. I.e...

• Name of the brokerage firm.
• Last name must be provided as with the DBPR.
• Nicknames are permitted accompanied by legal name.
• Brokerage firms address / phone are not required (internet exception).

Front 4

FREC

(The Florida Real Estate Commission)

Back 4

Is the regulatory body (7 members) charged by the Florida legislature to protect the general public by regulating brokers, firms, broker associates, sales associates, schools, and instructors.

• Four active brokers (licensed for 5 years).
• One active sales ass. or broker ass. (licensed for at least 2 years).
• Two consumer members (never been licensed).

Front 5

Sales associates are not permitted to open offices of their own. They must be registered from and work out of an office maintained and registered in the name of their employer.

Back 5

If a broker desires to conduct business from additional locations, the broker must register each additional location as a branch office and pay the appropriate registration fees.

Front 6

Unlicensed Practice of Real Estate

Back 6

• The DBPR can issue fines up to $5,000 per count of guilty unlicensed activity.
• It is a third degree felony for a person to receive compensation for unlicensed real estate services (up to $5,000 fine and/or up to 5 years in jail).

Front 7

Criminal Penalties

Back 7

A violation of Florida Statute 475 or any lawful order, rule, or regulation is legally a misdemeanor of the second degree (up to $500 fine and/or no more than 60 days in jail).

Front 8

First-Degree Criminal Penalties

Back 8

Failing to provide accurate and current rental information for a fee is considered a first-degree misdemeanor (up to a $1000 fine and/or no up to one year in jail).

Front 9

Administrative Penalties

Back 9

• Letter of reprimand is a letter that is filed as a minor incidence of misconduct with no disciplinary action.
• Denial of license application (or refusal to renew a license).
• Notice of noncompliance is a warning allowing a licensee 15 days to correct the infraction w/o consequence.
• Denial of a license application (or renewal refusal).
• Probation allows a licensee to continue practice under FREC conditions (i.e., continuing ed., FREC meetings, satisfy terms of policy).
• Up to a $5,000 fine per violation of Ch. 455 & Ch 475.
• Suspension of license (for up to 10 years).
• Revocation of a license is permanent (w/ continuing ed. & license app. exceptions.

Front 10

Escrow Accounts

Back 10

• Sales associate must deliver the escrow deposit to their broker-employer no later than the end of the next business day.
• Brokers must place trust funds into an escrow account no later than the end up the third business day once received.
• Alternatively, a Florida based title company or a Florida attorney may escrow the funds.
• FREC requires all brokers to be a signatory on all brokerage escrow accounts.