Florida Real Estate Broker's Guide, Eighth Edition

Florida Real Estate Broker’s Guide, Eighth Edition.

[Audio] Real estate brokers play an important role in the housing market. They help potential homeowners find the perfect house, negotiate deals, and handle the paperwork involved with closing a sale. Once you become a licensed real estate broker, you can work independently or join a team of other brokers. In this unit, I'll go over the necessary qualifications and steps you need to take to become a licensed real estate broker in the state of Florida..

[Audio] A broker is someone who provides real estate services for another person, in exchange for compensation. To become a broker, one must obtain a state-issued license, often requiring completion of a number of courses and passing a licensing examination. A broker associate holds a broker's license, but will work with and for the direction of another broker..

[Audio] It is important to be aware that in Florida, all real estate professionals such as sales associates and broker associates are required to be employed by a broker, meaning they are agents of their employer and thus subject to their employer's control and supervision. There are two main types of employers in this regard - registered owner-developers and entities selling their own property. An unlicensed individual may be employed by an owner-developer as long as they are paid salary and no commission. Therefore, it is essential to understand who you are working for and the conditions of your employment..

[Audio] The application process for becoming a Florida real estate broker is straightforward. To be eligible, you must be eighteen years of age or older, possess a US Social Security number, and have a high school diploma or its equivalent. The state of Florida also requires that you demonstrate your honesty, truthfulness and trustworthiness, as well as being competent and qualified. Once you have submitted your application, it will be valid for two years from the date it is received by the Florida Department of Business and Professional Regulation..

[Audio] Applicants in certain categories may be eligible for fee exemptions for professional licenses issued by the DBPR. Low income applicants are only exempt from the application and initial license fee, while military personnel, veterans, and their spouses are exempt from all three fees. To receive these exemptions, applicants must submit their license application and fingerprints, complete the necessary education, and pass the state exam. Additionally, military veterans and their spouses must apply within 60 months of their honorable discharge..

[Audio] An applicant for a real estate license in Florida must have a U S Social Security number to be eligible. This is to ensure that the applicant is up to date on any child support payments. U S citizenship is not needed for the application to be valid, but the name on the application must match the name that is shown on the Social Security card..

[Audio] Applicants for a real estate broker license in Florida must submit a detailed application for review. If the application is incomplete, it can be deemed deficient. In this case, the applicant may need to fix any errors or omissions and resubmit it or file a completely new application. Examples of deficiencies include not addressing all of the questions on the application, failing to provide the necessary fees, or not correcting mistakes or omissions..

[Audio] An essential tool for anyone looking to become licensed in the state of Florida is the real estate broker's guide. Understanding the application processing for obtaining a license is crucial, as it can lead to a denial. After receiving an application, the Department of Business and Professional Regulation has 30 days to search for mistakes and omissions. Within 90 days, the applicant is notified of either an approval or denial. Should the applicant be denied, they have 21 days to request a hearing..

[Audio] Applicants for real estate broker in Florida are required to undergo a criminal background check. Fingerprints will be sent to both the Florida Department of Law Enforcement and the FBI for this purpose. The enquiries will only pertain to criminal matters, not civil matters. Applicants must disclose any convictions, plea of guilty or nolo contendere to any criminal offence, even if adjudication was withheld. Additionally, applicants must provide details about the case..

[Audio] The Florida Real Estate Commission (FREC) reviews applicants and their supporting documents. If any background questions or fingerprint results reveal criminal convictions, the applicants are flagged. The FREC then decides whether to approve or deny the application. The consent agenda is processed without an appearance. For the summary of applicant agenda, the applicant needs to appear before the FREC to explain previous offenses and present letters of character. Furthermore, applicants can invite other people to speak in their defense. Finally, the FREC votes on whether the application should be approved or denied..

[Audio] A reciprocal agreement has been established to facilitate the process for active and former service members and their spouses to obtain a valid real estate license in Florida without completing pre-license courses or taking state examinations. The only fee required for an initial application is for the electronic fingerprints..

[Audio] Real estate in Florida is among the most attractive in the United States, making it a popular destination for those looking to invest. The State of Florida requires a set of criteria to be met in order to obtain a real estate license, one of which is residing continuously in the state for at least four calendar months the previous year. Therefore, non-residents have the potential to become a Florida real estate broker..

[Audio] Nonresidents who have completed the requisite education and experience from a state or nation that has a Mutual Recognition Agreement with Florida may become licensed Florida real estate brokers. All that is required is submitting proof of certification and license history from the original state to the Division of Real Estate and then applying for a Florida real estate license. This exemption from completing the pre-license education course is extended, provided the individual passes a 40-question exam on Florida real estate law with a score of 30 points (or 75%). Post-license education must then be completed..

[Audio] ""Florida Real Estate Brokers Guide" 8th edition offers important information about the difference between reciprocity and mutual recognition. Reciprocity is an agreement between two states which permits a real estate licensee with a legit license from one state to practice in both. Mutual recognition is alike, but doesn't create a regulatory relationship between states and there's no guarantee that a license from one state will be recognized in another. Unfortunately, Florida has no reciprocity with any other state, other than for U S service members who are eligible for exemption..

[Audio] The Florida Real Estate Commission requires anyone wishing to obtain a broker's license to complete a 45 hour post-licensing education course, as well as FREC Course II with a total of 69 hours plus an additional 3 hours for the exam. This exam consists of 45 questions on law, 40 questions on principles, and 15 math questions, with one of those math questions focusing on the Closing Disclosure form, worth 8 points..

[Audio] Exemptions for those wanting to become a Florida real estate broker are present. Those who have taken FREC Course I or II, completed a post-license continuing education course, have a 4 year or higher degree in real estate, or are a Florida-licensed attorney and active member of The Florida Bar are all exempt..

[Audio] In order to obtain a real estate broker license in Florida, a minimum of 24 months of active experience within the past five years must be fulfilled. This experience can be obtained through positions such as a sales associate for a broker in Florida or any other state/nation, a sales associate employee of a government agency or a broker in another state or nation. Working for an owner-developer does not qualify towards this as they must hold an active license..

[Audio] As a real estate broker in Florida, it is important to remember that post-licensing education is required before you can renew your license for the first time. The requirement includes a 60-hour course along with a 100-question exam at the end, 75% of which must be answered correctly in order to pass. One exception is those with a four-year degree or higher in real estate, who are exempt from post-license education. Unfortunately, attorneys are not exempt from the post-license education requirement. Additionally, failure to complete the requirement by the first expiration date will mean that your license is null and void..

[Audio] If you are applying for a real estate broker license in Florida, you need to be aware of how hardship cases are handled. Hardship cases are allowed additional six months to complete the post-license education requirements. The extension should be requested in writing to the Florida Real Estate Commission and should include the basis for the request as well as any necessary documentation. However, the FREC has no legal authority to extend the time beyond the six months..

[Audio] Florida real estate brokers are required to complete 14 hours of continuing education every two-year license period. This education must include 3 hours of core law, 3 hours of business ethics, and 8 hours of specialty credit. Brokers have the option to earn 3 hours of specialty credit by attending one legal agenda session of the Florida Real Estate Commission..

[Audio] Today we'll be talking about the renewal period for Florida Real Estate Brokers. The good news is that your license only needs to be renewed every two years before the expiration date. The expiration date is either on March 31 or September 30 and you must renew prior to this date. You must also complete the post-license or continuing education requirements. If you do not renew your license before the expiration date, your license will automatically go into an involuntary inactive status. Lastly, you may not practice real estate in the state of Florida without an active license..

[Audio] The eighth edition of the Florida Real Estate Broker's Guide provides guidance to licensees across the state and contains important information about exemptions related to members of the U S Armed Forces. These exemptions include not having to renew during active duty and for two years after discharge from active duty. Furthermore, the exemption applies to the licensed spouse of the military personnel if the military duty is out of state..

[Audio] A real estate broker in Florida must have an active license to perform services. Voluntary inactive status can be obtained by submitting a request to the Department of Business and Professional Regulation and fulfilling continuing education and renewal requirements. An involuntary inactive status is applied if the license is not renewed before its expiration date. After two years, an involuntary inactive license is null and void..

[Audio] If you have been involuntarily inactive for 12 months or less, 14 hours of continuing education and a late fee are required for reactivation. For inactivity more than 12 months but less than 24 months, reactivation requires 28 hours of education and a late fee..

[Audio] If a license becomes null and void, either due to physical or economic hardship, the Florida Real Estate Commission (FREC) requires that the licensee apply for reinstatement in writing within six months. Unfortunately, the FREC has no legislative authority to extend the renewal requirement beyond the six month period..

[Audio] Real estate brokers and agents in Florida must have a valid and current license in order to conduct legal business. Working with an expired license is treated as unlicensed activity and constitutes a third-degree felony according to state laws. It is critical to ensure that one's license is always up-to-date to remain compliant with the state's codes and regulations..

[Audio] According to the Florida Department of Business and Professional Regulation (DBPR), in order to operate as a licensed real estate broker in the state, you must register with them. This includes providing the name and address of each licensed broker and sales associate, the name and business address of their employer, the active or inactive license status, and any involvement in real estate entities. Furthermore, you must register your role as an officer, director, or general partner of a real estate brokerage..

[Audio] Any broker who manages more than one business entity must obtain multiple licenses from the Florida Real Estate Commission. A broker license issued to an individual or business entity cannot be transferred, so separate licenses must be obtained for each business entity. Sale associates and broker associates must be registered to a single brokerage entity, and are not eligible for multiple licenses..

[Audio] Real Estate Brokers in Florida may obtain a group license in order to collaborate with an owner-developer, who is a real estate developer. The owner-developer must submit a list of legal company names with the same ownership to the Department of Business and Professional Regulations (DBPR). This permit allows the broker associates to possess a single license and employer - the developer - while being able to work at any of the developer's locations..

[Audio] It is essential to inform the Florida Department of Business and Professional Regulation (DBPR) of your new residential address within 10 days of its change. While a P O box may be used as a mailing address, this will serve as the address of record for official DBPR notifications and correspondences. All communication by the DBPR will be sent to the last known mailing address or email address..

[Audio] In order to remain compliant as a Florida real estate broker, it is essential to remain informed on the regulations stipulated in the Florida Real Estate Broker's Guide. Regarding changes in residency, one must inform the Florida Real Estate Commission within 60 days when relocating out of the state and requiring a non-resident status. In addition, the mailing address must be updated with the Department of Business and Professional Regulation. Moreover, non-residents must abide by post-license and continuing education requirements..

[Audio] Real estate services encompass a myriad of activities to assist in the purchase, sale, rent, or exchange of ownership of a property. This can include advertising and selling real estate, appraising non-federally related transactions, auctioning or leasing property; all of which require knowledge of the numerous available options and a mastery of the complex process of a real estate transaction. Doing so will ensure a successful and sound investment..

[Audio] If you are providing services related to real estate to another person, it is assumed that you are a real estate licensee. It is the responsibility of the individual to present evidence to prove that they are not attempting to act as a real estate broker or sales associate. Take caution to behave appropriately and adhere to all applicable regulations..

[Audio] Potential real estate brokers in Florida should be familiar with the exemptions from the licensing requirement. These exemptions can be divided into five categories: owners, career-based, salaried employees, court and legally appointed persons, and a miscellaneous group. Knowing these exemptions is essential in deciding whether to obtain a Florida real estate license..

[Audio] Individuals owning real estate property may be exempt from obtaining a real estate license in certain cases. This guide states that such individuals, as well as officers and directors of corporations, partnerships, trusts and joint ventures, and their salaried employees may buy, sell, exchange, or lease their own property without a license. Furthermore, partners in a real estate partnership are eligible to receive profits in proportion to their share..

[Audio] Exempt from the licensing requirements for real estate brokers in the state of Florida are certain careers and professions, such as attorneys-at-law, CPAs and state-certified and licensed appraisers. Attorneys can only act in the attorney-client relationship and their Florida attorney license does not entitle them to receive compensation for providing real estate services. CPAs are exempt from licensing requirements when they are carrying out accounting duties, while state-certified and licensed appraisers are exempt when they are performing appraisals..

[Audio] Regarding salaried employees, there are particular exemptions to bear in mind. Theseinclude people who receive a salary, without any commission or transactional basis, and who purchase, sell, trade or rent properties for their employer. Furthermore, those working on-site in an apartment leasing office, together with building managers of condominium and cooperative apartments that rent units for maximum of a year, may be exempt. Additionally, there is an exemption for owner-developers, or real estate developers, who don’t get a commission..

[Audio] Real estate transactions may involve court-appointed individuals or those designated in a will. For example, an executor of a will may have to sign real estate documents. Attorneys-in-fact may also be allowed to sign such documents, but they cannot be used to authorize an individual to conduct real estate services..

[Audio] At the conclusion of our presentation, let's review the miscellaneous exemptions. These include individuals who rent lots in a mobile home park or travel park, persons selling cemetery lots, registered securities dealers selling business enterprises, hotel and motel clerks who rent transient lodging, and tenants paid a finder’s fee of maximum $50, which are all exempt from broker laws. Thank you for your attention and for offering me the chance to present this information..