Florida Real Estate License Law Flashcards

Florida Real Estate License Law Flashcards Real Estate License Required IFPerson performs A BAR SALE service, involving real estate in Florida, FOR ANOTHER FOR COMPENSATION or the implied intent to collect compensation UNLESS specifically exempt.Special Agentemployed to handle a particular business affair or to do a special act.Types of AgentsUniversal, general, special Florida Real Estate CommissionFREC - agency; administers and enforces administrative license law.Property Tax DisclosureBuyer must not rely on current owners property taxes.Attorney-At-LawExempt within scope of his duties as attorney; NOT exempt when performing services of real estate for compensation, including referral of clients and prospects.Independent Opinion of TitleCannot be provided by broker/sales associate; may read from an attorney's opinion or from title insurance policy.Universal Agentauthorized by principal to perform all acts that the principal can personally perform and that may be lawfully delegated to another.Broker entitled to compensationwhen performs object of employment; commission or compensation due and payable at time essential act or service is performed; however, broker is usually not paid until transaction is finally closed.Attorney-In-FactExempt for purposes of execution of contracts and conveyances only Revokes and no sale occursEmployer liable for damages for time and expenses General AgentEmployed to handle all affairs in a Business or trade, or to handle all business at a certain place Petitions regarding rules imposed by FREC Any person regulated by FREC may petition the Commission to adopt, amend, or repeal a rule.Voluntary InactiveLicensee has requested inactive status; license may be activated upon request; licensed may renew as inactive indefinitely Contract for CompensationNo contract for commission valid unless licensee has active status at time act or service was performed; may be paid while holding inactive status.Changing Address of LicenseeNotify FREC of change in mailing address within 10 days; must notify DBPR within 60days of change in state residency.Real Estate BrokerUsually a special agent with limited power or authority.Division of Real EstateDRE - Director appointed by Secretary of DBPR subject to approval by Commission; provides all services concerning

Chapter 475.

Termination of ListingDeath, insanity, bankruptcy of broker or employer; destruction of property; performance; abandonment; renunciation; lapse of time; breach by either party; revocation by employer FS 120Licensing and disciplinary procedures for real estate licensees.Examples of Fraudulent conductBreach of trust in fiduciary relations; misrepresentation of material fact; false or reckless statement, intentional concealment, conflict of interest, false promise, secret profit, dishonest dealing by trick, scheme, or device, bad faith, intent or conspiracy to defraud.Manager of Condominium and CooperativeExempt if salaried employee and if rentals are for periods no greater than 1 year No Brokerage RelationshipLicensee must give a No Brokerage Relationship disclosure before showing the property if no relationship is to exist between broker and customer.Limited RepresentationBuyer or seller NOT responsible for acts of licensee Education Pre-RequisiteCompletion of Course II (72 hrs);must also complete 45 hr sales associate post license course prior to Course II Department of Business and Professional RegulationDBPR - regulates business and professions; Secretary of DBPR appointed by governor, confirmed by senate.Part-OwnerExempt unless receives a larger share of profits from sale of partnership real property than proportional investment would justify.Culpable negligenceinadequate attention to duties and obligations Leasing Agent for ApartmentExempt if salaried employee, works in on-site office Classification of Individual LicensesBroker, Sales Associate, Broker-Associate Judicial Powers of FRECSuspend, revoke, reprimand, censure, probation and administrative fines.

LicensureStatus: Having name in computer qualifying a person as a

broker or sales associate; the right to ask for license; status obtained by passing state exam.Duties of DREExecutive - investigate complaints; ministerial - record keeping; administrative - routine duties.Witten Listing AgreementMust include definite expiration date, description of property; price and terms, fee or commission, proper signature of principal. NO automatic renewal.Funding of DREFees and assessments of Commission NOT Real Estate for LincensureCemetery lot; renting of mobile home lot in mobile home park.Property Management Firmmay NOT pay a finder's fee of more than $50 to a tenant of the complex for a rental referral.Legislative Powers of FRECEnactment of rules and regulations; can NOT conflict with constitution, statutes, and other laws; decide questions of practice; validate records.

Legal PresumptionA person who sells or leases real estate which he or she does not own is presumed to be acting as a broker or sales associate; burden of proof is on such person to show not acting as broker or sales associate.Transition to Transaction BrokerPermitted by law provided single agent gives transition disclosure notice and principal gives consent in writting.Ineffective License StatusHas license but cannot use it; voluntarily inactive, involuntarily inactive or suspended by FREC.Jones vs. Mayer (1968)Supreme Court case; affirmed that 1866 act prohibits all racial discrimination in the sale of real property Post License Education for Sales Associate 45 classroom hours prior to renewal Fair Housing Act of 1968Title VIII of federal Civil Rights Act of 1968; Florida has almost identical law Revokes and Sale OccursIf exclusive employment agreement is revoked and another broker sells, first broker entitled to damages for time and expenses; if exclusive right to sell is revoked and another person sells, first broker entitled to commission.Involuntary Inactivestatus after license is not renewed after 2 years Principal Office of DREOrlando Appeal FREC DecisionDistrict Court of Appeals Compensation to foreign BrokerNot violation if paid by Florida broker to foreign broker and foreign broker does not violate any law of Florida; foreign broker may pay compensation to Florida broker.Homeowner Association DisclosureProvided by seller to buyer. If not given to buyer before signing of contract buyer can void contract.Revoked after performanceBroker entitled to commission FraudIntentional false representation by words, conduct, or concealment Purpose of Chapter 475Protect public from economic loss 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.Court AppointeePersonal Rep., receiver, trustee, Master in Chancery, or Special Master is exempt when appointed by will or by order of court.Single Agent RelationshipBroker represents, as a fiduciary, either buyer or seller but not both in same transaction (represents either or as principals).Open ListingOwners lists property with one or more brokers. selling broker gets the commission. none get paid if owner sells.Powers and duties of DBPRAdopt rules and regulations; standing to challenge any rule of Commission; prepare and administer examinations; issue licenses; investigate complaints; seek evidence in investigation or proceeding.Revocation of Employment AgreementEmployer always has power to revoke