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112 Cards in this Set
- Front
- Back
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Chapter 475 |
Real Estate License Law 1. Real Estate Brokerage 2. Appraisal 3. Commercial Sales Lien RIghts 4. Commercial Leasing Lien RIghts |
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Chapter 455 |
Regulation of Business and Professions. Defines general practices and procedures for DBPR, including unlicensed practice of real estate. |
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FS 120 |
Licensing and disciplinary procedures for real estate licensees. |
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Department of Business and Professional Regulation |
aka "The Department", DBPR or BPR; regulates business and professions.; Secretary of DBPR appointed by governor, confirmed by senate. |
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Division of Real Estate |
DRE, Director appointed by secretary of DBPR subject to approval by commission; provides all services concerning Chapter 475
*Does all the paperwork |
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Florida Real Estate Commission |
FREC; agency; administers and enforces administrative license law |
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Membership of FREC |
7 members: 4 Brokers, 1 broker OR sales associate, 2 consumer members; 1 member 60 or older -appointed by governor for 4-year terms; confirmed by senate.
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compensation of members |
NOT salaried employees of DBPR; compensated for attending meetings. |
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Legislative (Quasi-Legislative) Powers |
Enactment of Rules & Regulations; can NOT conflict with constitution, statutes and other laws; decide questions of practice; validate records (imprinted with seal) |
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Petition Regarding Rule |
ANY person regulated by FREC may petition the commission to adopt, amend, or repeal a rule. |
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Judicial (Quasi-Judicial) Powers |
Suspend, revoke, reprimand, censure, probation and administrative fines |
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Public Hearing |
ANY affected person may present evidence and argument at hearing |
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Specific Powers and Duties |
Adopt a seal; certify documents (signed by authorized person) and imprinted with seal; certificates are prima facie evidence of authenticity in all courts in Fl; foster education; establish fees. |
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Prima Facie Evidence |
"On its Face" a document or an action is presumed to be true; may be refuted in court by evidence to the contrary. |
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61J2 |
Rules of the Fl Real Estate Commission |
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Registration |
Status; Having a name and address in computer; all persons holding licensure also have registration but NOT all persons having registration hold licensure |
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Real Estate License required IF... |
person performs A BAR SALE service, involving real estate in Fl, FOR ANOTHER FOR COMPENSATION or the implied intent to collect compensation UNLESS specifically exempt |
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A BAR SALE Services |
Advertise, Buy, Appraise, Rent or provide rental information or lists, Sell, Auction, Lease, and Exchange |
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Operating as Broker or Sales Associate |
Single act constitutes operating |
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Payment to Unlicensed Person |
Violation of Chapter 475, including payment of referral fees; attorneys not exempt. |
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Compensation to Foreign Broker |
Not violation if paid by Fl broker to foreign(outside Fl) broker AND foreign broker does not violate any law of Fl; foreign broker may pay compensation to Fl broker
*Broker to Broker |
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Owner |
Exempt when he or she buys, sells, exchanges or leases own real estate; however exemption not available if agent, employee, or independent contractor is compensated strictly on a transactional basis |
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Part-Owner (General Partner) |
Exempt unless receives a larger share of profits from sale of partnership real property than proportional investment would justify. Profits MUST be paid in direct proportion to ownership interest. |
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Leasing Agent For Apartment |
Exempt if salaried employee, works in on-site rental office, in leasing capacity(No Limits On Length Of Lease) |
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Manager Of Condominium and Cooperative |
Exempt if employed for a salary and if rentals are for periods no greater than 1 year |
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Attorney-In-Fact |
Exempt for purpose of execution of contracts and conveyances only (Agent appointed under a Power of Attorney) |
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Attorney-At-Law |
ex. Probate Attorney
Exempt within scope of his duties as attorney; NOT exempt when performing services of real estate for compensation including referral of clients and prospects |
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Court Appointee |
*this is NOT an executor; executor appointed by will
Personal Representative (PR), receiver, trustee, Master in Chancery, or Special Master is exempt when appointed by will or by order of court. |
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Property Management Firm |
Or Apartment Property owners may NOT pay a finder's fee of more than $50 to a tenant of the complex for a rental referral |
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Broker |
Provide A BAR SALE services for another for a compensation; including general partner of real estate brokerage partnership, officer or director of a real estate brokerage corporation |
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Sales Associate |
Perform any act specified in definition of broker but must perform act UNDER direction, control, or management of ANOTHER PERSON; may be licensed as a professional corporation, limited liability company, or a professional limited liability company. License issued in licensee's legal name and if appropriate include P.A., LLC or PL (or PLLC) after the name |
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Classification of Individual Licenses |
Broker, Sales Associate, Broker-Associate |
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Employer of Sales Associate |
Only one broker OR one owner-developer; "employment" including independent contractor relationship; sales associate can manage branch office |
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Owner-Developer |
Unlicensed entity which sells, exchanges, or leases its own property |
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Registered Owner-Developer |
A developer registered with DBPR; employs licensees for commission sales |
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Broker-Associate |
Qualified to be a broker but operates as a sales associate in the employment of another |
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change of mailing address |
Notify FREC of change of mailing address within 10 days; must notify DBPR within 60 days of change in state of residency. |
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education Pre-requisite for Sales Associate |
Satisfactorily complete Course I (63 hrs); exemption for person with a 4 year degree in real estate or for active member of Fl Bar
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Education Pre-Requisite for Broker |
Satisfactorily complete Course II(72 hrs); must also complete 45 hr sales associate post licensing course prior to Course II |
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sales associate applicant not qualified if |
had licensed denied, suspended or revoked in any regulated profession in FL or any other state, nation, possession, or district of the US; FREC can approve application if lapse of time. good conduct, and public will not likely be endangered. |
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Experience Pre-requisite for Broker |
active license for 24 months during preceding 5 years in office of 1 or more real estate brokers in FL or any other state, territory, possession or U.S. or foreign National License jurisdiction. |
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disclosures on application |
convictions resulting from legal proceedings against applicant; treatment for mental illness; completed action against real estate licensee by licensing agency of another state |
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Processing of Application |
DBPR has 30 days to determine if complete and 90 days to approve or deny application; commission may intervene on behalf of either applicant or DBPR |
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Initial Application Fee |
Broker $115; Sales Associate $105; + $31.50 test fee |
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Biennial Renewal Fee |
Broker $90; Sales Associate $80+ $5 unlicensed activity fee for all renewals |
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Multiple License |
applies to Brokers only |
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Officers & Directors; General Partners |
Active broker status required if perform sales, direct sales force, direct advertising, contact with owners or investing public; active status not required if no duties, only clerical, accounting, office policy & procedures |
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Voluntary Inactive Status |
Licensee has requested inactive status; license may be activated upon request; licensee may renew as inactive indefinitely |
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Involuntary Inactive Status |
Status when license (other than initial license) is not renewed after 2 years in this status, license will automatically void |
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post license education for Broker |
60 classroom hrs prior to first renewal; if not completed prior to initial expiration date, license null and void; may be issued Sales associate's license by completing continuing education requirement within 6 months after expiration |
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licensees with Physical Hardship |
may be allowed additional 6 months to complete post license |
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exemption from post license education |
licensee with 4 yr degree in Real Estate |
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continuing education |
14 hrs during each biennial license period, excluding first renewal period (post license education required); applies to active & inactive brokers and sales associates |
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classroom instruction |
satisfied by attending 90% of classroom hrs |
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license expiration date |
all licenses, permits & registrations expire on either March 31 or September 30 |
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change of name or address |
notify DBPR using appropriate form; applies to change of resident mailing address; notify within 10 days |
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license ceases to be in force |
when broker or school changes business address; sales associate OR instructor changes employer; and until DBPR is notified ($500 citation if later than 10 days after change); both sales associate and broker must notify DBPR when sales associate ends employment |
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Change Principal Office Address |
Business entity must request reissue of license; everyone licensed with that entity is attached to that business entity's license & address change |
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license lost or destroyed |
submit affidavit, request reissue, deliver old license to DBPR if found; duplicate $25 |
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broker suspended or revoked |
licenses of all sales associates & broker-associates automatically involuntary inactive; license is inactive until new employment or connection secured |
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reinstatement after discipline |
commission must certify licensee has complied with terms & conditions of final order; reinstatement fee is $55 |
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Transaction Broker Relationship |
provides a limited form of representation to a buyer, a seller, or both, but does NOT represent either in a fiduciary capacity or as a single agent (represents buyers & sellers as customers) |
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Limited Representation |
Buyer or seller NOT responsible for acts of licensee; parties giving up rights to undivided loyalty of licensee; allows licensee to facilitate transaction by assisting both buyer and seller; licensee will not work to represent one party to detriment the other party when acting as a transaction broker to both parties; licensee can be and advocate for buyer OR seller asa transaction broker as long as the licensee does m=not simultaneously represent both parties to the transaction |
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Limited Confidentiality |
Cannot disclose that seller will take less than list price; that buyer will pay more than written offer; motivation of either party or that seller is agreeable to financing terms other than those in listing or buyer is agreeable to financing terms other than those written in offer |
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Disclosure Requirements |
Must be described and disclosed to buyer and/or seller; may be a separate document or included as part of another document. |
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when Disclosure given |
before, or at time of, listing agreement or agreement for representation or before the showing of property, whichever occurs first. |
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Transaction Broker Duties |
1. Dealing honestly & fairly 2. accounting for all funds, using skill, care and diligence 3. disclosing all known facts materially affecting value of residential real property 4. present all offers & counteroffers in a timely manner 5. limited confidentiality 6. any added duties agreed upon by parties |
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Single Agent Relationship |
Broker represents, as a fiduciary, either buyer or seller but not both in same transaction(represents buyers or sellers as principals) |
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Fiduciary |
Relationship of trust & confidence given and recieved |
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Seller's Representative |
Listing agreement to act as a representative for seller only |
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Buyer's Representative |
Broker represents ONLY the buyer, regardless of who pays commission |
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subagent |
agent employed to act for another agent |
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Designated Sales Associate |
Applies to non-residential sales only; buyer and seller have assets of $1 million or more; broker designates sales associates to act as single agents for different customers in same transaction; must be requested by buyer and seller and they must sign disclosure form |
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No Brokerage Relationship |
Licensee must give a no brokerage relationship disclosure before showing the property if no relationship is to exist between broker & customer |
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Transition to Transaction Broker |
Permitted by law provided single agent gives transition disclosure notice and principal gives consent in writing |
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Types of Agents |
Universal, General & Special |
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Real Estate Broker |
Usually a special agent with limited power or authority |
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Homeowner Association Disclosure |
Provided by sellers to buyers; describes Association, deed restrictions, assessments and mandatory HOA dues; given to buyer before signing contract; if not given buyer can void contract |
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Lead Based Paint Disclosure |
for homes built prior to 1978; allows 10 day period for inspection (at Buyer's expense). Violation= buyer can bring civil suit and receive treble (triple) damages |
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Energy Efficiency Brochure |
Required. Can have energy audit. May qualify for special financing |
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Property Tax Disclosure |
Buyer must not rely on current owners property taxes. |
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Building Code Violation Disclosure |
Must disclose violations and notify code enforcement after closing of new owners. |
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independent opinion of title |
cannot provide independent opinion of title; may read from an attorney's opinion or from title insurance policy |
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Brokerage Business Records |
Disclosure notices retained for 5 years in all transactions that result in a written contract to purchase and sell real property |
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Duties of Broker to Sales Associate |
Train and supervise; make listings available; deal honestly and fairly |
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Broker Must Pay Sales Associate |
Entitled to commission when perform object of employment; resigns after performing, entitled to full share unless lesser share specified in employer's agreement or company policy manual; sales associate may sue only broker for compensation. |
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Creation of listing agreement |
may be implied, or expressed orally or in writing |
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Written Listing agreement |
Must include definite expiration date, description of property; price and terms. fee or commission, proper signature of principal (deliver copy within 24 hours). NO automatic renewal |
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Termination of Listing |
Death, insanity or bankruptcy or employer or broker; destruction of property; performance; abandonment; renunciation; lapse of time (specified or reasonable time); breach by either party; revocation by employer |
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Types of Listing |
Open; exclusive; exclusive right to sell |
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Open Listing |
Owner lists property with one or more brokers (does not give an exclusive); broker who is procuring cause of sale entitled to commission (other brokers receive nothing); owner may sell without being liable for a commission |
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Exclusive Listing |
Owner gives one broker listing; also known as exclusive agency or agency listing |
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Net Listing |
Owner requires net amount from sale; commission and other closing costs added to "net" to the seller |
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concealing condition of title |
if licensee has notice, must disclose title is not merchantable or that a mortgage or other lien exist before any portion of purchase price is paid; failure to disclose is fraud and dishonest dealing |
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Free Lot Schemes |
No licensee may invite public to solve puzzles or sign cards upon pretense of a drawing in order to recieve property free or at a nominal price, or at cost; violation is fraudulent and dishonest dealing |
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Civil Rights Act of 1866 |
Prohibits all racial discrimination in the sale or rental of real and personal property, including commercial real estate; person seeking protection must bring legal action personally |
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Fair Housing Act of 1968 |
Title VIII of federal Civil Rights Act of 1968; Florida has almost identical law |
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blockbusting |
unlawful to engage; (representations regarding the entry or prospective entry into the neighborhood of a person or persons of a protected class) |
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Landlord Tenant Act |
1. Eviction -1st step is 3 day notice 2. Security Deposits at end of a lease Must return within 15 days if not making a claim, or if making a claim must notify tenant within 30 days after the end of the lease. |
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Sole Proprietorship |
Business entity owned by one individual; no legal separation between owner and business; unlimited liability for debts of business |
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Corporation (For Profit) |
Artificial person created by law; separate legal entity from owners |
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provisions for refund
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must be in contract or receipt (10 point bold)
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conversion
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converting to one's own use something that by law belongs to another person; conversion is a crime
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Demand for refund
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must be made within 30 days following the day information purchased (info purchased on July 1, 30 day refund period= July 2-31st)
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Broker stating "No Refunds"
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violation of Ch. 475 FS
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Administrative Discipline
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contained in Chapter 475.25, FS
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violation of 475.25
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administrative provisions
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violation of 475.42
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criminal provisions
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violation of 455.227
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DBPR provisions
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violation of 61J2
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Rules of FREC
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time to renew license after expired
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2 years
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sales associate license is effective on the date the :
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applicant passes the State exam
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