FL REAL ESTATE LAWS Flashcards

FL REAL ESTATE LAWS Flashcards A real estate brokeris someone who holds a broker license issued by the Florida Division of Real Estate (DRE), which operates under the Department of Business and Professional Regulation (DBPR). The license legally permits the broker to perform any acts for which a real estate license is required. A real estate broker is also an independent businessperson who can employ someone who holds a sales associate or a broker license. Brokers are legally responsible for all the business actions of their employees.The Division of Real Estate (DRE)is under the Department of Business and Professional Regulation (DBPR). The DRE performs all functions concerning regulation of general real estate in Florida. The DRE is headed by a Director who is appointed by the Secretary of the DBPR, subject to approval by FREC.Corporate Real Estate LicenseA corporation may be licensed as a real estate broker as long as one officer of the corporation is a qualified real estate broker and acts as the corporation's responsible designated broker-officer. Sales associates may be employed by a corporate real estate broker as long as they are supervised by the designated broker-officer.PartnershipA real estate business may be run as a partnership if one of the partners is registered as an active broker. A sales associate may be employed by a broker who is a member of a partnership, and may work in any branch office managed by any of the partners, but may not be a partner.When changing employerIf a sales associate changes employer, the sales associate is required to notify FREC within ten days. The license will cease to be in force until the Commission receives the proper notice. Sales associates may not act as sales associates until they have properly registered their new employment with FREC.Renewing a Real Estate License60 days before license expiration, a renewal card is sent to the licensee. In general, both types of licenses may be renewed either online or by mail by submitting the appropriate fee and application. The licensee must complete 14 hours of FREC-approved continuing education courses prior to renewal.Both broker and sales associate licenses are valid for two years (except for the initial issuance, see above)FREC allows licensees to renew via phone, through the mail, or online at

http://www.MyFloridaLicense.com.

Chapter 475It is unlawful for any unlicensed person to operate as a real estate broker or sales associate. Doing so constitutes a third degree felony, and can mean possible jail time and/or a $5,000 penalty plus possible court costs. The court may impose a fine twice the amount of the gain or loss, depending on any monetary gain the unlicensed person obtained, or any pecuniary (financial) loss the alleged victim sustained.A real estate sales associateis someone who holds a sales associate license. This is also issued by the Florida Division of Real Estate (DRE).The sales associate must be employed by a real estate broker or owner developer in order to perform any of the activities that require a license.License Facts Brokers and sales associates are both licensees. Sales associates are agents of their broker. A sales associate must be employed by a broker to be paid. A sales associate may only be paid commission by his or her employing broker or owner developer.Florida Real Estate Commission (FREC)consists of seven members appointed by the governor and confirmed by the state Senate. The Commission is composed of four real estate brokers (actively licensed for five of the preceding years before appointment), one real estate broker or sales associate (actively licensed for two years prior to appointment), and two consumer members (never licensed as a broker or sales associate). At least one member of FREC must be 60 years of age or older.Members of FREC shall be appointed for four-year terms.FREC administers and enforces the real estate license law, Chapter 475, Part I, Florida Statutes.Multiple and Group LicensesA licensed broker who has more than one license has multiple licenses.Only brokers can obtain multiple licenses.A sales associate or broker associate may only be employed as a real estate licensee by one broker or by one owner-developer. One owner-developer may produce proof that properties are owned in the name of various entities, but that all such entities are connected, subsidiary, interlocking, or affiliated. This is done so that such ownership or control, for practical purpose, is substantially in the same individual or individuals. In such a case, a sales associate or broker associate may have a group license. Each entity shall execute the certificate attached to the request for a group license.Topics Covered by the Sales Associate Exam Fair Housing and Discrimination Contracts and Deeds Real Estate Taxes Various Licensure Law Topics General Real Estate Law and Licensure Law FREC Rules and

Discipline Licensure Law/Contracts - Analytical General Real Estate Law/Licensure Law - Application Agency, Real Estate Practices, Federal Law, Business Practices Brokerage Operation, U.S. Tax Law, Real Estate Development, Documentary Stamps Income Capitalization, Real Estate Finance, Deposits, Fixtures, Brokerage

Business Real Estate Math: General Business

Arithmetic-Percentages, Prorations, Area Calculations,

Loan-to-Value Ratios: ApplicationThe FREC Course I sales

associate exam has 100 multiple-choice questions and a time limit of 3.5 hours. Generally, the test has about 45 questions on principles and practices, 45 questions on real estate law, and 10 questions on math. To pass, the applicant must answer a minimum of 75% of the questions correctly.temporary shelterspace used for the comfort and convenience of the customers and sales associates.

The Real Estate License Law1. Protect consumers from loss because of dishonest and incompetent real estate sales associates2. Protect the good standing of ethical associates from the adverse publicity caused by unprincipled licensees Broker LicenseA real estate broker is a person who may run a brokerage business under his or her own name or under a fictitious business name. Any broker who places his or her license with an employing broker is called a broker associate and must have a written employment agreement.Renewal exemption for militaryAny member of the armed forces of the United States, who, at the time of going on active duty, had a Florida real estate license in good standing, is exempt from all renewal requirements while on active duty. This exemption continues for a period of 6 months after discharge from active duty, provided he or she is not engaged in any real estate activity in the private sector for profit. In addition, this exemption applies to the spouses if the military duty is out of state Acts Requiring a Real Estate License Advertise real estate services Negotiate the purchase of realty Appraise realty Rent or provide rental information or lists Negotiate the sale of realty Auction realty Lease realty Negotiate the exchange of realty A fictitious business nameis a business name other than the name of the person who has registered the business. Brokers must submit a copy of a Fictitious Business Name Statement. Brokers operating as individual sole proprietors are exempt from the Fictitious Business Name Act, because they must register their trade name directly with FREC.In Florida, registration of a fictitious business name is with the Division of Corporations in Tallahassee, not with city or county governments. The broker's main office is the principal office, and all other offices must be registered as branch offices. For each additional business location, the broker must obtain a branch office license permit.The license lawis not upheld in a court of law but is enforced by FREC at special hearings, which will be discussed later in this chapter. FREC does not settle commission disputes.Commission disputes are settled in a court of law and handled through an attorney if the parties involved cannot settle the matter agreeably.Registrationis the process of submitting the names, business addresses, and status (active or inactive) of licensed sales associates and brokers to the Division.A broker must supervise his or her associate licensees (both sales associates and broker associates). Licensees are not