UNIT 3: Real Estate License Law and Commission Rules Flashcards

UNIT 3: Real Estate License Law and Commission Rules Flashcards

Distinguish between active and inactive license status and describe the regulations regarding involuntary inactive status.An active license is required to engage in real estate brokerage services. Sales associates achieve active status by finding an employer and registering with the DBPR under the employing broker or owner-developer. Licensees who choose not to engage in the real estate business may place their licenses on inactive status. There are two types

of inactive status: (1) voluntary inactive and (2) involuntary

inactive.A Voluntary inactive status is given to a licensee who has qualified for a real estate license but who voluntarily chooses not to engage in the real estate business during a given period and requests a change to voluntary inactive status.An involuntary inactive status is given to a licensee who fails to renew an active or voluntary inactive license before the expiration date. When a licensee

has been involuntary inactive for: 12 months or less, they

may satisfy the education requirement by completing 14 hours of FREC-approved continuing education. More than 12 months but less than 24 months and they are required to complete 28 hours of a commission-prescribed education course.Describe the composition and member qualifications of the Florida Real Estate Commission.The Florida Real Estate Commission (FREC) consists of seven members.- Five of the members are professional

(licensed) members, of which: Four must be Florida real

estate brokers who have held active licenses during the five years preceding appointment; and one must be either a Florida real estate broker or sales associate who has held an active license during the two years preceding appointment.- Two remaining members are consumer (unlicensed or lay) members who have never been real estate brokers or sales associates.- At least one of the seven members must be 60 years of age or older Describe the scope and function of the DBPR and the DRE.Department of business and professional regulation (DBPR) - The agency charged with licensing and regulating businesses and professionals in Florida. They are under the executive branch of the governor.Division of Real Estate (DRE) - The Division of Real Estate (DRE) performs all functions related to the regulation of general real estate in Florida.Distinguish between multiple and group licenses. Multiple Licenses are issued to a broker who qualifies as the broker for more than one business entity.Group Licenses are sometimes issued to sales associates or

broker associates who are registered under an owner-developer. An owner-developer may own properties in the names of various entities. If the entities are all connected so that ownership and control in with the same individual(s), sales associates and broker associates employed by the owner-developer may be issued a group license.Describe the Commission's general powers and duties.The objective of the Florida Real Estate Commission (FREC) is to protect the public (consumer protection) by

ensuring that real estate licensees have at least a minimal degree of competence (Real Estate Schools and Education).Executive powers - regulate and enforce the license law.Quasi-legislative powers - Enact and revise administrative rules and regulations and to interpret questions regarding the practice of real estate.Quasi-Judicial powers - The ability to grant or deny license applications, determine license law violations, and to administer penalties.