real estate state test

broker

a person who, for another and for compensation or other consideration or other consideration (or anticipation of compensation or other consideration), performs real estate services.

broker associate

an individual who meets the requirements of a broker but who chooses to work (operate) in real estate under the direction (employ) of another broker

compensation

anything of value or a valuable consideration, directly or indirectly paid, promised, or expected to be paid or received

expungement

a process by which the record of a criminal conviction is destroyed or sealed after expiration of time

• DO NOT REPORT

florida resident

a person who has resided in Florida continuously for a period of four calendar months or more within the preceding year, regardless of whether the person resided in a recreational vehicle, hotel, rental unit, or other temporary or permanent location. Also, any person who presently resides in Florida with the intention of residing continuously in Florida for four months or longer.

lisence

a written document issued by the DBPR that serves as prima facie evidence (valid on its face) that the person is lessened on the date shown

license by endorsement

qualifications from another state or jurisdiction are accepted regardless of a written agreement between the states

mutual recognition agreement

a transactional agreement between Florida and another state that provides for the two states to recognize each others real estate pre-lisence education

nolo contendere/ no contest

a plea of no contest entered in a criminal court of law. The defendant does not admit or deny the charges, though a fine or sentence may be imposed by the court

owner developer

an unlicensed entity that sells, exchanges, or leases its own property

prima facie evidence

a legal term used to refer to evidence that is good and sufficient on its face to establish a given fact or prove a case

real estate services 

include any real estate activities involving compensation for performing the service for another

reciprocity

the practice of mutual exchanges of privileges. some states have reciprocal arrangements for recognizing and granting licenses to licensed real estate professionals from other states. Florida does not have reciprocity with any state

registration

the official placement of a real estate business or individual into the DBPRs records (database)

sales associate

a person who performs real estate services for compensation but whoo does so under the direction, control, and management of an active broker or owner-developer

sealed records

sealed records cannot be examined except by order of the court or by designated officials

• DO NOT REPORT

withhold adjudication

occurs when the court determines that a defendant is not likely to again engage in a criminal act and that the ends of justice and the welfare of society do not require the defendant suffer the penally imposed by law. after such determination, the court may withhold adjudication of guilt, stay (stop) the imposition of the sentence, and place the defendant on probation

chapter 20

establishes the structure of the executive branch of Florida government

chapter 475 part I

real estate brokerage (regulated by FREC)

• SA, BA, BK, BROKERAGE, INST., SCHOOLS

• 7 MEMBER FREC

chapter 475 part II

real estate appraisal (regulated by FREAB)

• 5 MEMBER FREAB

chapter 475 part III

commercial real estate SALES commission lien act

• the lien is only against the owners net proceeds (MONEY), and does not attach to the commercial real property

chapter 475 part IV

commercial real estate leasing commission lien act

• gives a broker lien rights for earned commission associated with a brokerage agreement to lease commercial real estate

• PROPERTY

sales associate

the introductory level; sales associates are employed by and work under the direction and control of a broker or an owner-developer

broker licenses 

require additional education, experience, and passing through broker license exam 

broker associate

holds a brokers license but chooses to register and work in real estate under the direction of another broker

owner developer

an unlicensed entity that sells, exchanges, or leases its own property.

• owner developers may hire unlicensed salespeople and licensed associates to sell their properties

• sales staff must hold active real estate licenses to be paid commission or other compensation based on actual sales (transactional basis)

• unlicensed salespeople must be paid on a salaried basis

application fees

• application fee in addition to initial biennial license fee (unlicensed activity fee and a real estate recovery fund fee, if applicable in license period)

• applicants submit the license exam fee and the fingerprint fee directly to the vendor who is providing the service

DBPR exempts three categories of applicants from the initial license fee for all professional licenses issued by the department

• low income applicants are exempt

• military personnel and their spouses are exempt

• military veterans and their spouses are exempt

fingerprints

• electronically submitted through an approved vendor

• reviewed by FDLE and FBI for any criminal history

• report is sent directly to the DBPR to be matched with application for licensure

four background questions must be answered to prevent an incomplete application

1. disclose convictions, nolo contendere, adjudication withheld, guilty plea, or found guilty

2. disclose any judgements or pending legal actions related to the practice (excluding personal financial information, such as bankruptcy, foreclosures, or credit information)

3. disclose denial of licensure, registration, or certification

4. disclose discipline against a license, registration, or certification

real estate professionals provide expert information in 3 areas

1. knowledge of property transfer

2. knowledge of market conditions

3. knowledge of how to market real estate and businesses 

residential property

• 4 or less units

• 10 acres or less

commercial property

5 units or more are multi-family commercial

improved property

building on it

unimproved property 

vacant land

new home

developer home

used home

resale

agricultural

10 acres or less is residential agricultural

real estate licensees who engage in the sale, purchase, or lease of businesses are called 

business brokers

what is required to sell or lease business opportunities

an active current real estate license

target marketing

you can target a profession, location, and type

many brokers and sales associates prefer to select one specific portion of a city and become an expert in that particular portion, called a 

farm area

follow up

what a sales associate does after the sale to maintain customer contact and goodwill

property manager

the property owners local representative. the property manager is responsible for maintaining the property and managing the expenses. the property managers primary charge is to protect the owners investment and to maximize the owners return on investment.

rental agents

typically find a tenant for property and collect a fee

if a property manager is paid by commission or on a transactional basis they must be…

licensed as an active real estate broker or a sales associate

should a licensee provide tax or legal advice

NO, refer a professional

if a SA or BA receives any payment for an appraisal, CMA or BPO, the money goes to…

the broker, THEN the SA or BA will receive their portion

A CAM (community association manager) must hold a CAM license when…

• budget over $100,000 OR more than 10 units

  • people must live there

  • people must own their own property

• condominium

A CAM is responsible for MMM which is….

Money

Meetings

Minutes (notes)

appraising is

a problem to be solved

an appraisal that involves federally related transaction can only be prepared by

a state certified or licensed appraiser

appraisers charge a fee based on

time and difficulty

who are appraisers not allowed to talk to 

the lender

USPAP guidleines

Uniform

Standard

Professional

Appraisal

Practices

appraisal by an appraiser

• USPAP

• federally related transaction (LOAN)

• Est. of value

• charge for it

appraisal by a licensee

• USPAP

• NON-Federally related transactions

• charge for it

• ONLY 3 reasons we appraise

  • 1. cash

  • 2. insurance

  • 3. estate liquidated

• est. of value

CMA (comparative market analysis)

• NO USPAP

• currently on market, recently sold, recently expired

• helps buyers and sellers value property

• marketing tool

• can charge for it

• est. of value 

• may NOT be referred to or represented as an appraisal 

BPO (brokers price opinion)

• NO USPAP

• more detailed CMA because go inside the property

• usually performed on distressed properties like “short sales” or bank owned (REO)

financing can be referred to as

the lifeblood of real estate sales

land acquisition

buying the land

dedication 

the gift of land by an owner

speculative (spec) homes

building without a buyer

custom homes

with a buyer

REALTORS

all realtors are members of the National Association of REALTORS (NAR)

5 major sales specialties

Residential

commercial

industrial

agricultural

business

FS chapter 455

defines practices and procedures of the department of business and professional regulation (DBPR) and all licensees

• ALL LICENSEES & PROFESSIONAL REAL ESTATE PRACTICE ACT

FS chapter 120 

administrative procedures act defines the process by which regulatory agencies decide and implement agency action

• the licensing and disciplinary process for real estate licensees is outlined in this chapter

• DISCIPLINARY PROCESS

Chapter 61J2

rules of the FREC

owner-developer

an unlicensed entity that sells, exchanges, or leases its own property

license application expires

2 years after the date the DBPR receives the appropriate signed or electronically authenticated application

fee waiver for low-income applicants

The DBPR is required by Florida law to waive the initial biennial license fee for qualifying low-income applicants

fee waiver for military

The DBPR is required by law to waive the initial biennial license fee for a member of the U.S. armed services that has served on active duty. The fee waiver also applies to a spouse who was married to the active duty member during a period of active duty, and to a surviving spouse of a member of the U.S. armed services who at the time of death was serving on active duty

FREC (Florida real estate commission)

any rules or regs start with 61J2- #

• ONLY GOVERNS LICENSEES

what is not needed on an RE1 form

financial history (bankruptcy, foreclosures, credit information, and so forth)

what should an applicant do if they are currently on probation

the applicant should attach a letter from the probation officer, on an official letterhead, stating the status of the probation

period to check for errors and omissions on DBPR application

30 days to check for errors and omissions and to send the applicant a notice of insufficiency concerning any additional information

period to inform applicant of approval or denial

90 days after receipt of the last correctly submitted application

license by endorsement for U.S. armed service members and their spouses

• license by endorsement for active duty and former active duty members and their spouses, including surviving spouse

• former active duty members must have been honorably discharged

• at the time of the application, applicant but currently hold a valid license for the corresponding profession in another state or foreign jurisdiction

• applies to spouse, or surviving spouse

• applies to ALL DBPR licenses if the member applicant holds a valid license for the corresponding profession

• license by endorsement is issued without requiring the relicense course or state license exam

mutual recognition

• applies exclusively to non-residents licensed in other jurisdictions that have a written agreement with the FREC

• requires applicants to pass a 40-question, Florida-specific real estate law exam with a grade of 75% (30 correct questions) or higher

• licensees licensed through mutual recognition must complete the Florida post-licensing requirement 

reciprocity

• when another state recognizes your actual license (military only)

• Florida does NOT have this, only for military with license by endorsement

• if you or your spouse are in the military, or just got out of the military

is U.S citizenship required to become licensed?

NO

Why is a U.S. social security number required for your license application

to determine whether applicants are in compliance with cild support obligations

a student may not miss how many hours of instruction

8 hours (an instructional hour is considered to be 50 minutes)

pre-license course requirement exemptions

• individuals with a four-year degree or higher in real estate from an accredited institution of higher education are exempt from course I, but must pass the license exam

• attorneys who are active members of the Florida Bar are exempt from relicense course I, but must pass the license exam

• U.S. military service members who qualify for license by endorsement and their spouses who hold a valid real estate license I another jurisdiction are exempt from relicense education for the same license type they hold in their current jurisdiction (sales to sales, broker to broker)

requests to review a failed exam must be received within how many days of the examination

21 days

SA are required to complete the 45-hour post licensing course…

before the expiration of the initial SA license (18-24 months after 63 hours course)

SA who do not complete the 45-hour post licensing requirement will cause their license to be null and void; therefore if they want to continue in real estate business are required to…

prequalify for licensure by repeating the pre-license course, end-of-course exam, and state exam

who is exempt from the sales post-license eduction requirement

a licensed SA who has received a four-year degree or higher in real estate from an accredited institution of higher education

after completing the post-licensing education requirement during the initial license period, active and inactive licensees must complete

at least 14 hours of continuing education during every 2 year license period after that (14 CE)

14 CE breaks down into

• 3 hours of core law

• 3 hours of business ethics

• 8 hours of specialty

• ONE LEGAL AGENDA (FREC) MEETING -3 HOURS OF SPECIALTY

Broker experience requirements

1. active SA 2/5 years with broker anywhere OR

2. active SA 2/5 years with government agency

3. active broker 2/5 years anywhere

broker post-licensing education 

• must complete the 60-hour post licensing course before the first renewal of their license

• failure to complete the post-licensing requirement prior to the expiration date will cause the license to become null and void 

• in such case, the broker may revert back to a SA license if the licensee completes 14 hours CE within 6 months following expiration of the brokers license

• brokers who have a four year degree or high in real estate are exempt from the broker post-license education requirement

a real estate license serves as _____ _____ evidence that the person named on the license possesses a current and valid license

prima facie

real estate services (A BAR SALE)

Advertise real estate services

Buy

Appraise (non-federally related transactions)

Rent or provide rental information or losts

Sell

Auction
Lease

Exchange

a real estate license is required when

• performing any real estate service for compensation 

• implied intent to collect compensation, unless specifically exempt

  • compensation includes money in the form of a salary, bonuses, commissions, and gratuities

  • compensation is also things of value such as dinner, flowers, wine, gift certificates, and event tickets

real estate license exemptions

1. owner exemptions

• owners of time-share periods who own the time-share for their own use and occupancy may later sell their interest

2. exemptions based on career

• attorney-at-law

• certified public accountants (CPA’S)

3. salaried employee exemptions

• salaried employees of a business entity may buy, sell, exchange, and lease property for their employees

• salaried employees of an apartment community who work in an onsite rental office are exempt from licensure. the employees cannot be compensated based on transactions completed

4. court and legal appointed persons

• court-appointed individuals acting within the limitations of their duties are exempt from licensure. For example a personal representative

• power of attorney

5. miscellaneous exemptions

• person who sells cemetery lots

• hotel and motel clerks

• tenants of an apartment community may receive a fee up to $50 for the referral of a new tenant to the same apartment community

extension period for hardship case following initial license expiration

6 months

time period after honorable discharge for military veterans and their spouses who apply for license to be eligible for waiver of the application fee, initial license fee, and the unlicensed activity fee

60 months

salaried managers of condominium or cooperative units who prepare rental agreements with a duration of _________ are exempt from a real estate license

up to 1 year