Florida Real Estate Sales Associate 28 hour Reactivation Course

Florida Real Estate Sales Associate 28 hour Reactivation Course Flashcards Owner-developerAn unlicensed entity that sells, exchanges, or leases its own property (like a sub-division developer). It can hire unlicensed staff, but they must be paid a salary (not commission).How to acquire a real estate licenseApplication, fees, fingerprints, background check, pre-license education, pass state exam (inactive license - unlicensed activity fee and may be required to pay a Real Estate Recovery Fund fee) applicant must discloseTrouble with the law, if applicant has done business under any other name, whether they had penalties against another professional license, or if another application was denied or pending Null and voidThe license "no longer exists."The FREC may reinstate the license because of physical hardship or economic hardship.Licensee must apply to the FREC for reinstatement within six months.1. Involuntary inactive for more than two years (or after first year with our lost-licensing course)2. Disciplinary action - revocation of a license3. Voluntary relinquish or cancel a license Single Agency (Fiduciary relationship)-Brokerage firm enters fiduciary relationship with principal.-Written disclosure needed if transaction needed*Principal/client; agent language is usedBroker associates or real estate agents are subagents of broker.Four Unique Duties of a Single AgentA single agent owes nine duties to the principal. Four of the duties apply only to single agent relationships.C ConfidentialityO ObedienceL LoyaltyD Disclosure (full)(without limited confidentiality and performing additional duties)To change from Single Agency to Transaction broker relationship, principals written consent is needed.*Consent to transition form must be signed by buyer or seller or both.If single agent relationship is with buyer, a non-representation relationship may occur with the seller.If a single agent relationship is with seller, a non-representation relationship may occur with the seller.Nonresidential TransactionsDesignated sales associates - When buyer and seller assets are each greater than a million, in a nonresidential transaction, the broker can designate two associates to represent the buyer and seller - one each. This is not dual agency.

Falsely acting as brokerIf an individual has sold or leased real estate that is not titled in his name, or has maintained an office bearing signs that real estate is for sale or lease, or has advertised real estate for sale or lease, there is a presumption that the individual was acting or attempting to act as a real estate broker.Licensed sales associates beware-don't find yourself defending real estate activities conducted for friends or relatives. Any real estate activities must be with your broker's knowledge and consent Office SignsExterior or interior of principal office. Easily observed.Must

have:1. Trade name2. Brokers Name3. Licensed (Lic.)

Real Estate BrokerIf partnership or LLC, only one name of active broker is required.Division of Florida Condominiums, Timeshares, and Mobile Homes Provides consumer protection for Florida residents through education, complaint resolution, mediation and arbitration, and developer disclosure.Also handles election disputes for HOAs.Exceptions to Disclosure Requirements1. When a licensee knows that a prospective buyer or seller is already represented.2. Open house where confidential info isn't shared, contracts aren't discussed, and no negotiations.3. Unanticipated casual encounters4.Responding to general factual questions about a property for sale.5. Providing information about a licensee's or brokers background.6. When residential units are for sale and it is obvious the agent is working on behalf of owner because of circumstance, placards, signs, nametags, etc.License exam75% required to pass RegistrationAuthorization by the state to place an applicant on the register (record) of officially recognized individuals and businesses. Notify them of your address, employer address, license status, and involvement. Associates can only have one employer (can have active licenses in other states).Flagged applicantsflagged by the Division of Real Estate (DRE). A list of flagged applicants is prepared each month and placed on a nonappearance agenda called a Consent Agenda. The applications and all supporting documentation are sent to the FREC for its review and have a Summary of Application

(SOA).

Residential transaction-Residential property of 4 or fewer units-Land zoned for 4 or fewer units-Agricultural property of 10 or fewer acres- Does not include rental or auction of residential properties.nolo contendere (no contest)A pleading of no contest by a defendant; a plea in a criminal action not admitting guilt but subjecting the defendant to punishment as though it were a guilty plea.

Mishandling fundsMoney must stay in escrow account until transaction is closed or fulfilment of escrow condition.Conversion - unauthorised use of another's funds.Commingling - if brokers mix their personal or business funds with funds of buyer, seller, tenant, or landlordFailure to account or deliver - a licensee that fairs to deliver personal property (money, legal documents, or real estate commission).DBPR Part 1Department of Business and Professional Regulation.Charged with regulating business and professionals.Unregulated practice can harm the public, the public is not protected by other statues or laws, OR less restrictive means are not available.Chief administrator of DBPR (also secretary of DBPR) is appointed by the Governor. Home of DBPR is in Tallahassee, FL.How to become "Active"By finding an employer and filing the information with the DBPR Not required to disclose on applicationApplicants are not asked to disclose personal financial information such as bankruptcy, foreclosures, credit information, and so forth.Sales associate qualificationU.S. citizenship is not required to become licensed.

Qualifications for a real estate license are as follows:Be 18

years of age or olderHave a high school diploma or its equivalentPossess a U.S. Social Security numberCharacter and competent Management of escrow accountsBroker must review, sign, and date monthly on escrow accounts.If escrow account is interest bearing, broker needs written permission to put funds in account. Must specify who is entitled to interest earned.Broker can have up to 1,000 in escrow account. This is to avoid bank closing account or charging low-balance fees.Broker can have up to 5,000 in property management account. If renters check bounces, but repairs need to be made, the broker can use that money.Fiduciary DutiesAssociate represents broker. Associate owes fiduciary duties to broker, therefore the client. If associate leaves, cannot divert buyers or sellers from completing a transaction with former employer (breach of fiduciary duties).After employment, associates cannot divulge confidential information, or do anything that might discredit or damage the goodwill of the former employer.Brokerage relationshipsBrokerage Relationship Disclosure Act - Created to avoid confusion about where the broker/agent's fiduciary duties

are reserved forRelationship options:1. Non-representation

(no brokerage relationship)2. Single agent3. Transaction broker

FREC Powers and DutiesExecutive - Regulate and enforce law that is delegated by the legislature.1. Foster education2. Adopt a seal3.Establish feesQuasi-legislative - Enact rules and regulations, decide questions of practice, and validate records (imprint with FREC's seal).1. Create and pass rules and bylaws2. Regulate professional practices*For example, establishes rules of escrow and then can also submit an EDO in order to see where escrow is in a dispute.Quasi-judicial - To discipline real estate licensees for violations of real estate license law and FREC administrative rules.1. Grant and deny applications for licensure.2. Suspend or revoke licenses and impose fines3.Makes determinations of violations. Need to report offences, specified in Chapter 475 to state attorney.Division of Real Estate (DRE)Provides all services required to administer the Florida real estate license law. The duties of the DRE are essentially administrative and ministerial (record keeping).Duties on behalf of FREC 45 hour post-licensing education requirement If not completed - conditional (probationary) status will cause the initial license to become null and void by operation of law required to requalify for licensure by repeating the prelicense course and end-of-course exam and by again passing the state licensing exam. Must pass post-license exam with 75%.Reciprocity for military (and former military) members and their spouses The practice of mutual exchanges of privileges. Some states have reciprocal arrangements for recognizing and granting licenses to licensed real estate professionals from other states.Mutual recognition agreement (must pass test with 75% or better) A transactional agreement between Florida and another state that provides for the two states to recognize each other's real estate license education (must complete process BEFORE coming a resident). Agreement is for nonresidents.Postdated checkConsidered promissory note. Need seller approval before receiving check. Keep safe until date it is valid.LicensureQualifications are met and state exam is passed. The license is a written document that serves as prima facie evidence that the licensee (holder) possesses a current and valid license. The license indicates the licensee's full name and address, type of license, license number, effective date, expiration date, the name of the governor, and the DBPR secretary.CommissionCannot share compensation with unlicensed person for

performing real estate services or for referrals.Discipline:

Sharing a commission with or paying a fee to a person not