broker - gold coast schools - enhance your florida career! · pdf file ·...

Copyright Gold Coast Schools1

Chapter 1

Broker

Becoming A Licensed Real Estate Broker


Learning Objectives

Explain the broker applicant requirements and situations

that may cause an application to be denied

Identify the consequences of failing to disclose a

previous conviction

Explain the brokers education and experience

requirements, mutual recognition, and identify

exceptions to the course requirement

Identify the post-licensing and continuing education

requirements for brokers and sales associates

Explain how it is unlawful to perform real estate services

with an expired real estate license


Learning Objectives

Distinguish between licensure and registration

Distinguish between multiple licenses and a

group license and explain the provisions for

issuance of multiple licenses

Identify the rules regarding change of address,

residency, and change of business address

Identify real estate services that require a real

estate license and exemptions from licensure


Introduction

An active Florida Real Estate license is required unless exempt if Performing service of real estate

For another

For compensation

In Florida


Broker Associate

Person who holds a broker license

Registers and works under the direction of another broker or owner-developer

Sales and broker associates are agents of their employer


Application Process

Individuals must Be at least 18 years old

Have a high school diploma or its equivalent

Have a social security number

Be honest, trustworthy, of good character, and have a good reputation for fair dealing

Be competent and qualified

Complete and submit application

Electronic finger prints

Notice of satisfactory completion of prescribed

course taken to test site (good for 2 years)

Application good for 2 years


Nonresident

Florida residency or US citizenship are not

required


Florida Residency

Florida resident

Reside in Florida for 4 months or more

within the preceding year

Can be an: RV, hotel, rental, etc.

Live in Florida with the intention of residing

continuously for 4 months or more

Begins on the date when the residence

began


Criminal Background Check

The applicant must disclose if ever convicted or

found guilty of a crime or ever entered a plea of

“nolo contendere” (no contest)

DISCLOSE!!!!!


Prelicense Education

All broker candidates must successfully complete the Sales Associate 45 hour post-license course prior to submitting broker application

Successfully complete Broker 72 hour pre-license course

Exam – 100 questions – 70% passing score 45 points - law

40 points – principals and practice

15 points – real estate math

– 8 points – closing disclosure calculations

– 7 points – general math


Broker Course Exemptions

4 year degree in real estate or higher Exempt from 45 hour Sales Associate post lic. course

Exempt from 72 hour broker pre-license course

Exempt from 60 hour broker post license course

Must pass Sales Associate State exam

Remain active for 2 out of 5 years as Sales Associate

Pass Brokers State exam

An active member in good standing with The Florida Bar Exempt from FREC Course I

Must take 45 hour Sales Associate Post license course

Must take Brokers pre-license 72 hour course and brokers 60 hour post licensing


Mutual Recognition

Mutual recognition

agreements with

seven states

Agreements apply

exclusively to

nonresidents

licensed in other

states

40 question Florida

specific law exam

Alabama

Mississippi

Arkansas

Georgia

Illinois

Connecticut

Nebraska

Not: Reciprocity


Experience Requirement

24 months of real estate experience during 5

years preceding application

In Florida, other state, or foreign jurisdiction

Not owner-developer, unless licensed

Experience is established by holding an active

real estate license

Broker

Government Agency


Post-licensing Education

Before first renewal

One or more courses totaling 60 hours

75% passing grade

Failure to meet requirement results in license going null and void

May request sales associate license Complete 14 hours of CE within 6 months after

expiration


Hardship Cases

Additional 6 months

After initial license expiration

Cannot complete due to physical hardship Licensees long-term illness

Long-term illness of person who licensee has caregiving responsibility

Course not reasonably available

Economic or technological hardship Unable to meet basic living expenses

Inability to complete course due to technology


Continuing Education

14 hours during each two year license period

Active members in good standing with The Florida Bar are exempt from the C.E. requirements

May not practice real estate with an expired license


License Renewal

Initial license

In effect for between 18 to 24 months

Licenses expire either

– March 31

– September 30

Armed Forces Renewal Exemption

Member of the U.S. Armed forces on active duty

Exempt from all renewal requirements until 6

months after discharge of active duty

Exemption will not apply if license active

Applies to spouse if stationed outside Florida

License is Voluntary Inactive


Temporary License for Military Spouse

Spouse of an active duty member

May be issued a temporary license

Applicants spouse assigned to active duty in

Florida

Applicant must hold a real estate license in:

– Another state

– District of Columbia

– United States territory

– Foreign jurisdiction

Temporary license is valid for 6 months

Temporary license is not renewable


Licensing Requirements

*Broker prerequisite – Must hold an active sales or broker license

for 2 of the past 5 years with one or more real estate brokers in

this or any other state, territory, or jurisdiction of the U.S. or in any

foreign national jurisdiction, or in the employ of a governmental

agency

Sales Associate Broker Associate*

63-hour Pre-Licensing 72-hour Pre-licensing

Class exam – 70%

State exam – 75%

Class exam – 70%

State exam – 75%

45-hour Post Licensing

Class exam – 75%

No state exam

60 –hour Post Licensing

Class exam – 75%

No state exam

14-hour Continuing Education

Every 2 years

14-hour Continuing Education

Every 2 years

Licensing Renewal Periods

Pre-Licensing

63-hr Sales Assoc

(FREC I)

72-hr Broker

(FREC II)

Initial

License1st Renewal

Post-Licensing(*)

45-hr Sales Assoc

60-hr Broker

Continuing Ed

14-hr CE

2nd Renewal

Renewal Date

Mar 31 or Sept 30

Licensure Date

(Date State Exam

passed)

2 years

Missed

Renewal

Date

2 years involuntary

inactive status

nth Renewal

Keep renewing

by Renewal Date

every 2 years

Continuing Ed

14-hr CE

4 years to renew license

1-12

months

13-24

months

14-hr CE

(Late

fee)

28-hr

Reac-

tivation

(Late

FEE)

Active or

Voluntary InactiveActive or

Voluntary Inactive

Active or

Voluntary Inactive

Involuntary

Inactive

Late Renewal

License

Null &

Void

2 years (*) Missed 1st renewal deadline:

license null & void.

Brokers may revert to Sales Associate

by completing 14-hr CE within 6

months of license becoming Null &

Void.


Active vs. Inactive Status

ACTIVE INACTIVE

Compensation No Compensation

Voluntary Involuntary

Has registered

employer

No registered

employer (by

choice)

1. Broker

suspended or

revoked

Continues

1. education

requirements

2. renewals

2. Did not renew

(other than first

renewal)

No time limit Maximum two

years


Inactive Status

Voluntarily Inactive

Chooses not to engage in the real estate

business

Has requested such status

Must continue to renew every 2 years


Inactive Status

Involuntarily Inactive

A licensee who did not renew.

May reactivate

During first 12 months

14 hour continuing education requirement and

late fee.

More than 12 months and less than 24

months

28 hour education and late fee.

After 2 years license becomes null and void


Registration Versus Licensure

Individuals are licensed Serves as prima facie evidence (accepted

on face value)

Business entities are registered Placing on record with DRE

Individuals may be registered Officers and directors of Corporations

General partners in Limited Partnership


Multiple and Group Licenses

Multiple license May legally act as brokers for more than one

brokerage firm

Sales associates and broker associates may not hold multiple licenses

Group license Issued to sales associates and broker

associates who work for an owner developer

Interlocking or affiliated entities


Multiple Licenses

Active Broker

ABC Realty,

Inc.

XYZ Realty,

Inc.

LMN Realty,

Inc.

A broker may be the broker for more than one

unrelated company


Group License

Built Right,

Inc. (Owner

Developer)

AA, Inc.

(Subsidiary

Company)

BB, Inc

(Subsidiary

Company)

CC, Inc.

(Subsidiary

Company)


Group LicenseBuilt

Right,

Inc.(Owner

Developer)

AA, Inc.

(Subsidiary

Company)

BB, Inc

(Subsidiary

Company)

CC, Inc.

(Subsidiary

Company)

Sales

Associate

Broker

Associate


Change of Address

Licensees must notify the DBPR of a

change within ten (10) days

I Am Licensee

New address

Any Town, FL


Change of Address

Current mailing address Any residential location a licensee receives

mail

P O Box may be used

Email address

Change of residency Move out of State

– Notify FREC within 60 days

– Licensee agrees to keep address current

– Must comply with Florida statutes and rules


Real Estate Services

The eight

services of

Real Estate

are:

Advertise real estate services

Buy

Appraise

Rent

Sell

Auction

Lease

Exchange

A

B

A

R

S

A

L

E


Exemptions from Licensure

Buy or sell cemetery lots

Renting lots in a mobile home park

Attorney at law and certified public accountants

within scope of their professional duties

Mortgage brokers dealing in personal property

only, may not do leasing

Full time graduate student doing appraisal with

supervision


Exemptions from Licensure

Court authority – appointed by court or will

Salaried condominium and co-operative managers

and those who work in an on site rental office as

long as leasing for not over 1 year

Appraisers doing appraisals under appraiser

license

Tenants of apartment complex may receive $50

finder’s fee for other tenants

broker - gold coast schools - enhance your florida career! · pdf file ·...

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