Florida Real Estate License Laws Overview

Questions and Answers

A sales associate's license may be?

Transferred to another state

Automatically renewed

Revoked by the Florida Real Estate Commission

Suspended by the Florida Real Estate Commission (correct)

A person must be licensed if she is to sell ___________ belonging to clients who pay her a commission.

property

A broker must place funds belonging to others in __________ account.

a trust, or escrow

License laws forbid soliciting for listings before one is licensed.

True Signup and view all the answers

A licensee's license can be revoked for intentionally misleading someone into signing a contract that she ordinarily would not sign.

True Signup and view all the answers

Real estate licenses, once received, are good for __________ period of time.

a limited Signup and view all the answers

A broker's unlicensed secretary may refer interested clients to whom?

The broker Signup and view all the answers

A broker may use escrow moneys held on behalf of others for?

None of the choices Signup and view all the answers

In order to do business, a licensee must make proper application for a license, pass a licensing examination, and have a license issued by the __________.

appropriate state agency Signup and view all the answers

A licensee can lose his license for paying a commission to a __________ person.

non-licensed Signup and view all the answers

A licensee can lose her license for selling properties quickly at low prices and buying properties for her own use from her principal.

False Signup and view all the answers

Which of the following is not required to have a real estate license?

A resident manager of an apartment project Signup and view all the answers

A licensed sales associate __________.

must be under the supervision of a broker Signup and view all the answers

In order to sell property belonging to a trust for which he is a trustee, the trustee must have a broker's license.

False Signup and view all the answers

A person who is employed to sell real estate must be __________.

licensed Signup and view all the answers

The Florida real estate licensing laws are part of the __________.

Florida Statutes Signup and view all the answers

The arrangement of forming a corporation to bypass broker licensing laws is legal.

False Signup and view all the answers

Broker Johnson may deposit the money into the __________ trust money bank account.

brokerage's Signup and view all the answers

Morgan, as a treasurer, can negotiate land deals and receive commission without a real estate license.

False Signup and view all the answers

A Florida Real Estate license is good for negotiating the sale of any kind of __________ in Florida.

real property Signup and view all the answers

A licensed broker may act independently under which conditions?

All of the above Signup and view all the answers

The Real Estate Commission is composed of __________ members.

7 Signup and view all the answers

A broker must keep their records of the transaction for __________ after it is concluded.

five years Signup and view all the answers

The license renewal fee for a real estate sales associate is __________.

$80 Signup and view all the answers

Real estate broker's and sales associate's licenses are good for __________.

two years Signup and view all the answers

The license application fee for a real estate broker is __________.

$115 Signup and view all the answers

After initial renewal, licensees must complete __________ hours of qualifying continuing education every two years.

14 Signup and view all the answers

Unlicensed practice of real estate is considered a third-degree felony.

True Signup and view all the answers

Licensees must pay fees for which of the following?

All of the above Signup and view all the answers

If a licensee's license has become inactive, the licensee can activate it within __________ without having to retake the examination.

two years Signup and view all the answers

A real estate associate's compensation is __________.

paid by the broker Signup and view all the answers

A Florida real estate license is good only in __________.

the State of Florida Signup and view all the answers

After one becomes a broker, the most appropriate term for that person is __________.

a broker Signup and view all the answers

A valid Florida real estate license application must include which of the following?

All of the above Signup and view all the answers

An applicant for a nonresident license must sign the irrevocable consent to service section on the application.

must sign Signup and view all the answers

The unlicensed practice of real estate in Florida is a __________ felony.

third-degree Signup and view all the answers

Individuals with __________ are exempt from FREC Courses I and II and post-licensing education.

a four-year degree from an accredited college or university Signup and view all the answers

A real estate license is not required in Florida to __________.

All of the above Signup and view all the answers

If a licensee becomes nonresident, how long does he or she have to file an irrevocable consent to service with the DBPR?

60 days Signup and view all the answers

The number of members of the Florida Real Estate Commission who must have held active licenses for the past five years is __________.

4 Signup and view all the answers

The powers of the Florida Real Estate Commission include?

All of the above Signup and view all the answers

The director of the Division of Real Estate (DRE) is appointed by the __________.

secretary of the Department of Business and Professional Regulation (DBPR) Signup and view all the answers

A licensee can become inactive by?

Both Signup and view all the answers

An ineffective license is one that exists but cannot be used.

True Signup and view all the answers

A sales associate may __________.

work out of a broker's branch office Signup and view all the answers

An active broker must display an office entrance sign that includes?

All of the above Signup and view all the answers

A broker must reconcile the escrow account __________.

every month Signup and view all the answers

A broker's escrow account may be at a __________.

Any Signup and view all the answers

A broker may not pay a commission to an unlicensed person, except for __________.

a broker licensed in another state, provided Florida laws are observed Signup and view all the answers

In a real estate brokerage general partnership, which of the following is correct?

All of the above Signup and view all the answers

The complaint process includes which of these initial steps?

All of the above Signup and view all the answers

A real estate licensee may request an informal hearing if he __________.

All of the above Signup and view all the answers

A formal hearing is mandatory when the licensee disputes the allegation.

True Signup and view all the answers

The FREC can impose which of these penalties?

All of the above Signup and view all the answers

Limits on amounts from the Recovery Fund are up to __________.

Both Signup and view all the answers

People ineligible to collect from the Recovery Fund include?

All of the above Signup and view all the answers

A state-regulated account to cover claims of aggrieved parties who have suffered monetary losses from licensee's actions is called the __________.

Recovery Fund Signup and view all the answers

Kickbacks are not allowed when they __________.

All of the above Signup and view all the answers

DBPR stands for __________.

Department of Business and Professional Regulation Signup and view all the answers

To be licensed to sell real estate in Florida, an applicant must __________.

Neither Signup and view all the answers

A broker associate is licensed as a broker but chooses to work under the direction of __________.

a broker Signup and view all the answers

The time for license application and pre-license education expires __________ after the application is received by the DBPR.

2 years Signup and view all the answers

Which type of listing is discouraged because it creates a conflict of interest?

net listing Signup and view all the answers

Net listing is prohibited by licensing law in many states because __________.

The broker agrees to sell the property in order to achieve a net price to the owner Signup and view all the answers

__________ can sell any real estate without further licensing.

Neither Signup and view all the answers

Those exempt from licensure include?

All of the above Signup and view all the answers

In a transaction in which the licensed sales associate performed nearly all the work, who is the agent?

broker Signup and view all the answers

The number of consumer members of the Florida Real Estate Commission is __________.

2 Signup and view all the answers

The duties of the Florida Real Estate Commission include:

All of the above Signup and view all the answers

Mildred may keep the check because she had a license when the commission was earned.

True Signup and view all the answers

The grace period for license renewal by those who are actively serving in the U.S. Armed Forces is up to __________ upon return.

six months Signup and view all the answers

Active Brokers must __________.

have an office registered with the DBPR Signup and view all the answers

Ads by brokers must include?

All of the above Signup and view all the answers

If the type of agency is not noted, in Florida it is presumed to be __________.

transactional brokerage Signup and view all the answers

Study Notes

Florida Real Estate License Law Overview

A sales associate's license can be suspended by the Florida Real Estate Commission (FREC).
Individuals selling property for a commission must be licensed.

Trust Accounts and Fund Management

Brokers must deposit clients' funds into a trust or escrow account.
Escrow moneys cannot be used for personal loans, business collateral, or salary advances.

Licensing and Educational Requirements

Real estate licenses are issued for a limited period and must be renewed.
To do business, a licensee must apply, pass an exam, and get a license from the state.
License applicants must disclose prior convictions and aliases.

Activities Requiring a License

Soliciting listings before obtaining a license is prohibited.
Paying commissions to unlicensed individuals can result in license loss.

Inactive and Exempt Status

Licensees can become inactive by requesting it or not renewing the license.
Trust property sales require a trustee to hold an appropriate license.

Commission Structure

Broker associates work under a broker and must be compensated through their broker.
Sales associates must complete post-license education before renewing their license.

Continuing Education and License Renewal

Licensees must complete continuing education hours every two years to maintain active status.

Florida Real Estate Commission (FREC) Functions

FREC consists of seven members, including four active real estate brokers.
The commission can impose penalties such as suspensions, revocations, and fines.

Penalties and Violations

Practicing real estate without a license is a third-degree felony.
Complaints against licensees must be filed in writing, and may lead to investigation.

Business Structures in Real Estate

Real estate brokerage entities may operate as sole proprietorships, partnerships, or corporations.
In a general partnership, at least one partner must be a licensed broker.

Advertising and Transparency

Brokers must display signs that include their name and brokerage information.
Licensees must disclose their licensed status when advertising properties they own.

Financial Management

Brokers must reconcile escrow accounts monthly and can hold funds at various financial institutions.

Miscellaneous Regulations

The grace period for renewing licenses for military personnel is up to six months after return.
A mutual recognition agreement allows out-of-state licensees to bypass some Florida-specific education but requires passing the state exam.

Exemptions and Special Cases

Certain individuals, such as attorneys and CPAs, are exempt from needing a real estate license under specific conditions.
The license is void if inactive for two years, evoked, or voluntarily canceled by the licensee.

Commission Fees and Recovery Fund

Maximum recovery from the Real Estate Recovery Fund is $50,000 per transaction, up to a total of $150,000 for brokers.
Individuals ineligible to collect from the Recovery Fund include those related to the judgment debtor or inactive licensees at the time of the transaction.

Regulatory Framework and Accountability

The Department of Business and Professional Regulation (DBPR) oversees the FREC and real estate licensing.
All licensing applications must be supported by proper documentation, including background checks and proof of education.

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Description

This quiz covers the essential aspects of Florida real estate license laws, including licensing requirements, trust account management, and activities requiring a license. Whether you're preparing for an exam or refreshing your knowledge, this overview is designed to ensure you're well-informed about the regulatory framework governing real estate in Florida.