Broker. Becoming A Licensed Real Estate Broker. Chapter 1. Copyright Gold Coast Schools 1
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1 Broker Chapter 1 Becoming A Licensed Real Estate Broker 1
2 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 2
3 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 3
4 Introduction An active Florida Real Estate license is required unless exempt if Performing service of real estate For another For compensation In Florida 4
5 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 5
6 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 6
7 Nonresident Florida residency or US citizenship are not required 7
8 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 8
9 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!!!!! 9
10 Prelicense Education All broker candidates must successfully complete the Sales Associate 45 hour postlicense course prior to submitting broker application Successfully complete Broker 72 hour prelicense 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 10
11 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 11
12 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 12
13 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 13
14 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 14
15 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 15
16 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 16
17 License Renewal Initial license In effect for between 18 to 24 months Licenses expire either March 31 September 30 17
18 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 18
19 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 19
20 Licensing Requirements Sales Associate 63-hour Pre-Licensing Class exam 70% State exam 75% 45-hour Post Licensing Class exam 75% No state exam 14-hour Continuing Education Every 2 years Broker Associate* 72-hour Pre-licensing Class exam 70% State exam 75% 60 hour Post Licensing Class exam 75% No state exam 14-hour Continuing Education Every 2 years *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
21 Licensing Renewal Periods Licensure Date (Date State Exam passed) Renewal Date Mar 31 or Sept 30 Keep renewing by Renewal Date every 2 years Missed Renewal Date Initial License Pre-Licensing 63-hr Sales Assoc (FREC I) 72-hr Broker (FREC II) Active or Voluntary Inactive 1 st Renewal Post-Licensing(*) 45-hr Sales Assoc 60-hr Broker Active or Voluntary Inactive 2 nd Renewal Continuing Ed 14-hr CE Active or Voluntary Inactive n th Renewal Continuing Ed 14-hr CE Involuntary Inactive Late Renewal 14-hr CE (Late fee) 28-hr Reactivation (Late FEE) License Null & Void (*) Missed 1st renewal deadline: license null & void. 2 years 2 years 1-12 months months Brokers may revert to Sales Associate by completing 14-hr CE within 6 months of license becoming Null & Void. 2 years involuntary inactive status 4 years to renew license
22 Active vs. Inactive Status ACTIVE Compensation Has registered employer Voluntary No registered employer (by choice) Continues 1. education requirements 2. renewals No time limit INACTIVE No Compensation Involuntary 1. Broker suspended or revoked 2. Did not renew (other than first renewal) Maximum two years 22
23 Inactive Status Voluntarily Inactive Chooses not to engage in the real estate business Has requested such status Must continue to renew every 2 years 23
24 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 24
25 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 25
26 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 26
27 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 27
28 Group License Built Right, Inc. (Owner Developer) AA, Inc. (Subsidiary Company) BB, Inc (Subsidiary Company) CC, Inc. (Subsidiary Company) 28
29 Group License Built Right, Inc. (Owner Developer) AA, Inc. (Subsidiary Company) BB, Inc (Subsidiary Company) CC, Inc. (Subsidiary Company) Sales Associate Broker Associate 29
30 Change of Address Licensees must notify the DBPR of a change within ten (10) days I Am Licensee New address Any Town, FL 30
31 Change of Address Current mailing address Any residential location a licensee receives mail P O Box may be used 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 31
32 Real Estate Services The eight services of Real Estate are: A B A R S A L E Advertise real estate services Buy Appraise Rent Sell Auction Lease Exchange 32
33 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 33
34 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 34
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