Chapter 2 - Real Estate License Law and Qualifications

Purpose of the real estate license law

To protect the public

Caveat Emptor

Principle in effect prior to statutory law that “let the buyer beware” on property defects

1923

Date that the first Florida real estate license law was enacted

F.S. 475

Florida statue prescribing the real estate license law

Four simultaneous conditions requiring a Florida real estate license

Performing a service of real estate in the state of Florida for another for compensation

Statutory services of real estate requiring a real estate license

Appraising, Buying, Auctioning, Renting, Selling, Advertising, Leasing, or Exchanging (“A BAR SALE”)

Persons or entities that are exempt from Florida real estate licensure requirements under the law

Attorneys in fact, attorneys at law, certified public accountants, court appointees, cemetery lot salesperson, salaried condo managers, individuals selling their own property, corporations buying or selling their own real estate

Qualifications for a Florida real estate license

Social Security number 18 years of age, or older High school diploma, or equivalent Honest, trustful, trustworthy, of good character, and have a good reputation for fair dealing (Florida residency or U.S. citizenship not required)

Mutual recognition

Agreements with certain states that recognize the similarity in the content of education and licensing requirements for real estate licensing

Broker

A licensed individual who performs services of real estate for another and receives compensation for those services

Sales Associate

A licensed individual who is employed by either a broker or owner-developer to perform services of real estate

Broker Associate

A licensee who is qualified to receive a broker license, but chooses to be employed by an actively licensed broker or owner-developer acting as a sales associate

Owner-Developer

An individual or entity who is in the business of buying, owning, and/or developing real estate and hires sales persons to sell their property

The experience necessary to qualify for a broker license

Employed by an actively licensed broker as an active sales associate for 24 months of the last 5 years (employment by an owner-developer does not count)

Education requirements (steps) in the licensing and renewal process

Pre-licensing and state exam to obtain the initial license Post-licensing for the first renewal Continuing Education (CE) for all subsequent 2-year renewal periods

Brokers, Sales Associates, and Broker Associates

Individuals or entities that must be both licensed and registered with the DBPR

Individuals or entities that must be registered with the DBPR, but are not required to be licensed

Brokerage corporations, partnerships, branch offices, and owner-developers

Exempt from Licensure (individuals may perform services of real estate for themselves without a license)

Individuals in Florida who buy, sell, of perform services of real estate for themselves

An individual who performs a service of real estate in Florida as a favor for a friend without receiving any compensation

Exempt from Licensure (since no compensation was provided)

Individual who auctions Florida real estate on behalf of another for a fee

Not Exempt (a Florida real estate license is required)

A Florida court appointee to perform services of real estate for a fee

Exempt from Licensure (they may do so for a fee or salary without a real estate license, but not for a commission)

An individual who sells Florida timeshare units on behalf of other owners compensation

Not exempt (a Florida real estate license is required)

An individual who sells cemetery lots in Florida

Exempt from Licensure

An individual who leases Florida residential property on behalf of others for compensation

Not exempt (a Florida real estate license is required)

A Florida corporation that sells, exchanges, or leaves real property owned by the corporation

Exempt from licensure

Steps in the licensing and renewal process

1.) Pre-licensing and state exam to obtain the initial license 2.) Post-licensing for the first renewal 3.) Continuing Education (CE) for all subsequent 2-year renewal periods

Steps to obtain an initial (inactive) sales associate license

1.) Take 63-hr pre-license course and pass final exam (70% or higher) 2.) Submit state application and fee 3.) Submit electronic fingerprints, used for background check 4.) Pass the state exam (75% or higher)

Activation of a sales associate

Obtain and register employment with an active broker or owner-developer

Criminal convictions or investigations that must be disclosed in the DBPR application for sales associate license

ANY criminal convictions in any jurisdiction, including felony or misdemeanor convictions or pleas, regardless of adjudication. Includes DUI but not minor traffic offenses

Conditions under which a license application would be denied “without prejudice”

Application is incomplete or contains minor error such as forgetting application fee or signature

Timeframe within which a license applicant must pass the state exam once the application has been approved by the DBPR

2 years

Timeframe within which an applicant whose application was denied but the DBPR may request a formal hearing before an administrative law judge

Within 21 days from the date of receipt of application denial

The individual or entity from whom a real estate sales associate or broker associate may receive compensation for performing services of real estate

The employing broker or owner-developer ONLY (NOT by a member of the public)

Licensing exemption for a actively licensed Florida attorneys who are in good standing with the Florida Bar

Exempt from taking the 63-hour pre-license course and end-of-course exam, but must take and pass the state license exam

Licensing exemption for individual with 4-year degree or higher in real estate

Exempt from all pre- and post-license courses, but must pass the state licensing exam

Required steps for sales associate first license renewal

• Take 45-hr post-license course and pass final exam (75% or higher)

• Pay renewal fee with DBPR

Required steps for sales associate or broker associate continuing education renewal

• Complete the 14-hr continuing education course every 2 years 

• Pay renewal fee with DBPR

The person responsible for complying with license renewal requirements and deadlines

The licensee

Information shown on the real estate license

Name of the licensee, type of license, licensee’s address, effective date, expiration date, Seal of the State of Florida, name of the governor (not signature), and name of the secretary of the DBPR

License status of a sales associate or broker who does fails to complete the first renewal requirements prior to the expiration of the initial license

Null and Void

License status of a licensee who fails to complete the required continuing education renewal requirements prior to the expiration of their license (after the first renewal)

Involuntary Inactive

Length of time that a licensee should retain their completion certificates for pre-licensing post-licensing, and CE courses

At least two years