475.453 Rental Information; Contract or Receipt; Refund; Penalty +4Florida · Real Estate · English

A broker or sales associate who furnishes a rental information list to a prospective tenant for a fee must provide a contract or receipt containing a provision for repayment. The refund provisions protect consumers who pay for rental listings that may be inaccurate or fail to produce a rental.

• ✓Contract/receipt must provide repayment of any amount over 25% of the fee if the prospective tenant does not obtain a rental
• ✓If the rental information list is not current or accurate in any material respect, the full fee must be repaid upon demand
• ✓Demand for refund must be made within 30 days following the day the broker/associate contracted to perform services

Violations of the rental information statute carry both criminal and licensing consequences, making compliance critical for licensees who provide rental lists for fees.

• ✓Violation of subsection (1) is a misdemeanor of the first degree, punishable under s. 775.082 or s. 775.083
• ✓License of any broker or sales associate participating in a violating rental transaction is subject to suspension or revocation
• ✓The commission may adopt a guideline for the form of the contract or receipt

Under Section 475.25(1)(c), F.S., false, deceptive, or misleading advertising is a disciplinable offense. A first violation ranges from a $1,000 fine and 30-day suspension up to a $2,500 fine and 90-day suspension. Subsequent violations range from a $2,500 fine and 90-day suspension up to a $5,000 fine and revocation.

• ✓475.25(1)(c) advertising violation first offense: $1,000 fine + 30-day suspension to $2,500 fine + 90-day suspension
• ✓Subsequent offense: $2,500 fine + 90-day suspension up to $5,000 fine + revocation

Under Subparagraph 475.25(1)(d)1., F.S., failing to account for or deliver escrowed property to any person as required by agreement or law is a violation. First offense: $1,000 fine and 30-day suspension up to $2,500 fine and 90-day suspension. Subsequent: $2,000 to $5,000 fine and 90-day suspension up to $5,000 fine and revocation.

• ✓Failure to account/deliver escrow first offense: $1,000 fine + 30-day suspension to $2,500 fine + 90-day suspension
• ✓Subsequent offense: $2,000-$5,000 fine + 90-day suspension to revocation

Under Sections 475.25(1)(f) or 455.227(1)(c), F.S., being convicted or found guilty of a crime related to real estate or involving moral turpitude, fraud, or dishonest dealing is a violation. First offense: $1,000 fine and 30-day suspension to $2,500 fine and revocation. Subsequent: $2,500 to $5,000 fine and 6-month suspension to $5,000 fine and revocation.

• ✓Crime involving moral turpitude first offense: $1,000 fine + 30-day suspension to $2,500 fine + revocation
• ✓Subsequent: $2,500-$5,000 fine + 6-month suspension to revocation

Under Section 475.25(1)(h), F.S., sharing a commission with or paying a fee to a person not properly licensed under Chapter 475 is a violation. First offense: $1,000 fine and 30-day suspension to $2,500 fine and revocation. Subsequent: $2,500 to $5,000 fine and 2-year suspension to permanent revocation.

• ✓Sharing commission with unlicensed person first offense: $1,000 fine + 30-day suspension to $2,500 fine + revocation
• ✓Subsequent: $2,500-$5,000 fine + 2-year suspension to permanent revocation

Under Section 475.25(1)(k), F.S., a broker must deposit any money in an escrow account immediately upon receipt until disbursement is properly authorized; a sales associate must place escrow money with the registered employer. First offense: $1,000 fine and 30-day suspension to $2,500 fine and revocation.

• ✓Broker must deposit escrow immediately upon receipt; sales associate must give to registered employer
• ✓First offense: $1,000 fine + 30-day suspension to $2,500 fine + revocation

Under Sections 475.25(1)(m) or 455.227(1)(h), F.S., obtaining a license by fraud, misrepresentation, concealment, bribery, or through error of the Commission/Department is a serious violation. First offense: $1,000 fine and revocation with ability to reapply. Subsequent: $5,000 fine and permanent revocation.

• ✓Fraudulent license first offense: $1,000 fine + revocation with ability to reapply
• ✓Subsequent: $5,000 fine + permanent revocation

Under Section 475.25(1)(p), F.S., a licensee must give the Commission 30-day written notice after a guilty or nolo contendere plea or conviction of any felony. First offense: $1,000 fine and 30-day suspension to $2,500 fine and 2-year suspension.

• ✓Must give Commission 30-day written notice after felony plea/conviction
• ✓First offense: $1,000 fine + 30-day suspension to $2,500 fine + 2-year suspension

Under Section 475.25(1)(u), F.S., a broker who fails to direct, control, or manage a broker associate or sales associate employed by the broker commits a violation. First offense: $1,000 fine and 30-day suspension to $2,500 fine and 2-year suspension.

• ✓Broker must direct, control, and manage associates employed
• ✓Failure first offense: $1,000 fine + 30-day suspension to $2,500 fine + 2-year suspension

Under Section 475.42(1)(a), F.S., practicing real estate without a valid and current license is a serious violation. First offense: $1,000 to $2,500 fine and 90-day suspension to revocation. Subsequent: $2,500 to $5,000 fine and 2-year suspension to permanent revocation.

• ✓Unlicensed practice first offense: $1,000-$2,500 fine + 90-day suspension to revocation
• ✓Subsequent: $2,500-$5,000 fine + 2-year suspension to permanent revocation

Under Section 475.42(1)(d), F.S., a sales associate shall not collect any money in connection with a real estate brokerage transaction except in the name of the employer. First offense: $1,000 fine and 30-day suspension to $2,500 fine and 2-year suspension.

• ✓Sales associate must collect transaction money only in name of employer
• ✓First offense: $1,000 fine + 30-day suspension to $2,500 fine + 2-year suspension

Under Sections 475.278 and 475.2755, F.S., failures related to brokerage relationships are disciplinable, including failure to require the designated sales associate disclosure notice, failure to establish a single brokerage/agent relationship in writing, violation of transaction broker duties, single agent duties, and no-brokerage-relationship duties. First offense penalties: $1,000 fine and 30-day suspension to $2,500 fine and 90-day suspension.

• ✓Failure to establish single brokerage/agent relationship in writing: $1,000 fine + 30-day suspension to $2,500 fine + 90-day suspension
• ✓Violations of transaction broker, single agent, or no-brokerage-relationship duties carry similar penalties

Under Section 455.227(1)(t), F.S., failing to report in writing to the Commission within 30 days after being convicted, found guilty, or entering a plea of nolo contendere/guilty (regardless of adjudication) to a crime in any jurisdiction is a violation. First offense: $1,000 fine and 30-day suspension to $2,500 fine and 2-year suspension.

• ✓Must report crime in writing to Commission within 30 days regardless of adjudication
• ✓First offense: $1,000 fine + 30-day suspension to $2,500 fine + 2-year suspension

Under 61J2-24.001(4), when either party demonstrates aggravating or mitigating circumstances by clear and convincing evidence in a Section 120.57 hearing, the Commission or hearing officer may deviate from the guidelines. For a 120.57(2) hearing, advance notice of at least 7 days must be given to the other party or the evidence may be excluded. Factors include degree of harm to public, number of counts, disciplinary history, licensee status at time of offense, financial hardship, and prior letters of guidance.

• ✓Deviation from guidelines requires clear and convincing evidence of aggravating/mitigating circumstances
• ✓Advance notice of at least 7 days required to introduce such evidence in a 120.57(2) hearing
• ✓Factors include harm to public, number of counts, disciplinary history, licensee status, financial hardship, prior letter of guidance

When a licensee aids, assists, conspires with another, or forms an intent/design/scheme to engage in misconduct and commits an overt act in furtherance of that scheme, the disciplinary penalty is severe. First violation ranges from a $2,500 fine with 30-day suspension up to $5,000 fine and revocation; subsequent violations escalate to $5,000 fine with 6-month suspension up to $5,000 fine and revocation.

• ✓Aiding/conspiring first violation: $2,500 fine + 30-day suspension to $5,000 fine + revocation
• ✓Subsequent violation: $5,000 fine + 6-month suspension to $5,000 fine + revocation

Under Subparagraph 475.25(1)(d)2., F.S., when a licensee is the purchaser and the contract requires a deposit into escrow, failing to deposit that money is a violation. First offense: $1,000 fine and 30-day suspension to $2,500 fine and 90-day suspension. Subsequent: $2,500 to $5,000 fine and 90-day suspension to revocation.

• ✓Failure to deposit into escrow (licensee purchaser) first offense: $1,000 fine + 30-day suspension to $2,500 fine + 90-day suspension
• ✓Subsequent: $2,500-$5,000 fine + 90-day suspension to revocation

Under Sections 475.25(1)(e) or 455.227(1)(b) or (1)(q), F.S., violating any rule, order, or provision of Chapters 475 and 455, or failing to comply with a lawfully issued subpoena is disciplinable. Penalties escalate based on intent: no intent demonstrated carries lower penalties, while intentional violations carry up to $5,000 fine and permanent revocation.

• ✓No intent demonstrated: $1,000 fine + 30-day suspension to $2,500 fine + 90-day suspension
• ✓Intentional violation: $2,500 fine + 90-day suspension up to $5,000 fine + permanent revocation

Under Sections 475.25(1)(g) or 455.227(1)(f), F.S., having a license disciplined, acted against, or an application denied by another jurisdiction is a violation. First offense: $1,000 fine and 30-day suspension to $2,500 fine and revocation. Subsequent: $2,500 to $5,000 fine and 2-year suspension to permanent revocation.

• ✓Out-of-state discipline first offense: $1,000 fine + 30-day suspension to $2,500 fine + revocation
• ✓Subsequent: $2,500-$5,000 fine + 2-year suspension to permanent revocation

Under Section 475.25(1)(j), F.S., rendering an opinion that title is good or merchantable (when not based on a licensed attorney's opinion), or failing to advise a prospective buyer to consult an attorney or obtain title insurance, is a violation. First offense: $1,000 fine and 30-day suspension to $2,500 fine and revocation.

• ✓Improper title opinion first offense: $1,000 fine + 30-day suspension to $2,500 fine + revocation
• ✓Subsequent: $2,500-$5,000 fine + 2-year suspension to permanent revocation

Under Sections 475.25(1)(l) or 455.227(1)(f), F.S., making or filing a report/record the licensee knows to be false, or willfully failing to file or impeding a required filing under state or federal law, is a violation. First offense: $1,000 fine and 30-day suspension to $2,500 fine and revocation.

• ✓False reports/records first offense: $1,000 fine + 30-day suspension to $2,500 fine + revocation
• ✓Subsequent: $2,500-$5,000 fine + 2-year suspension to permanent revocation

Under Section 475.25(1)(o), F.S., being guilty for a second time of misconduct demonstrating incompetent, dishonest, or negligent dealings with investors carries a $5,000 fine and 1-year suspension up to $5,000 fine and revocation for first application; subsequent results in $5,000 fine and permanent revocation.

• ✓Second-time misconduct: $5,000 fine + 1-year suspension to $5,000 fine + revocation
• ✓Subsequent: $5,000 fine + permanent revocation

Under Section 475.25(1)(r), F.S., failing to follow the requirements of a written listing agreement is a violation. First offense: $1,000 fine and 30-day suspension to $2,500 fine and 2-year suspension. Subsequent: $2,500 to $5,000 fine and 2-year suspension to permanent revocation.

• ✓Listing agreement violation first offense: $1,000 fine + 30-day suspension to $2,500 fine + 2-year suspension
• ✓Subsequent: $2,500-$5,000 fine + 2-year suspension to permanent revocation

Under Section 475.25(1)(v), F.S., a broker who fails to review the brokerage's trust accounting procedures to ensure compliance commits a violation. First offense: $1,000 to $2,500 fine and 90-day suspension to revocation.

• ✓Broker must review brokerage trust accounting procedures for compliance
• ✓First offense: $1,000-$2,500 fine + 90-day suspension to revocation

Under Section 475.42(1)(b), F.S., a sales associate practicing beyond their authorized scope commits a violation. First offense: $1,000 fine and 30-day suspension to $2,500 fine and 2-year suspension.

• ✓Sales associate may not practice beyond authorized scope
• ✓First offense: $1,000 fine + 30-day suspension to $2,500 fine + 2-year suspension

Under Section 475.42(1)(c), F.S., a broker who employs a sales associate not holding a valid and current license commits a violation. First offense: $1,000 fine and 30-day suspension to $2,500 fine and 2-year suspension.

• ✓Broker may not employ sales associate without valid current license
• ✓First offense: $1,000 fine + 30-day suspension to $2,500 fine + 2-year suspension

Under Section 475.42(1)(i), F.S., no broker or sales associate shall place false, void, or unauthorized information on public records that affects title or encumbers real property. First offense: $2,500 fine and 30-day suspension to $5,000 fine and 2-year suspension.

• ✓May not place false/unauthorized info on public records affecting title
• ✓First offense: $2,500 fine + 30-day suspension to $5,000 fine + 2-year suspension

Under Section 475.42(1)(j), F.S., failing to register a trade name with the Commission is a violation. First offense: $1,000 fine. Subsequent: $2,500 to $5,000 fine and 2-year suspension to permanent revocation.

• ✓Must register trade name with the Commission
• ✓First offense: $1,000 fine only; subsequent: $2,500-$5,000 fine + 2-year suspension to permanent revocation

Under Sections 475.42(1)(l) and (m), F.S., failing to have a current license while listing/selling timeshare periods, or failing to disclose all material aspects of a timeshare resale (and rights/obligations of buyer and seller), are violations. First offense: $1,000 fine and 90-day suspension.

• ✓Must have current license to list/sell timeshare periods
• ✓Must disclose all material aspects of timeshare resale; first offense: $1,000 fine + 90-day suspension

Under Sections 475.42(1)(k) or 455.227(1)(i), F.S., no person shall knowingly conceal information relating to Chapter 475 violations or fail to report violations to the Department. First offense: $1,000 fine and 90-day suspension.

• ✓May not knowingly conceal or fail to report Chapter 475 violations
• ✓First offense: $1,000 fine + 90-day suspension

Under Section 475.5015, F.S., failing to keep and make available to the Department books, accounts, and records that enable determination of a broker's compliance with Chapter 475 is a violation. First offense: $1,000 fine and 30-day suspension to $2,500 fine and 2-year suspension.

• ✓Broker must keep books/accounts/records available to Department
• ✓First offense: $1,000 fine + 30-day suspension to $2,500 fine + 2-year suspension

Under Section 475.25(1)(i), F.S., impairment by drunkenness, use of drugs, or temporary mental derangement results in suspension for the period of incapacity. Reinstatement occurs upon showing ability to practice with reasonable safety, plus 1 year probation. Subsequent violations may escalate to revocation.

• ✓Impairment penalty: suspension for period of incapacity, reinstatement upon showing ability to practice safely + 1 year probation
• ✓Subsequent violation may extend to revocation

Under Section 475.25(1)(t), F.S., violating the Uniform Standards of Professional Appraisal Practice (USPAP) as defined in Section 475.611, F.S., is a violation. First offense: $1,000 fine and 30-day suspension to $2,500 fine and 2-year suspension.

• ✓USPAP violation first offense: $1,000 fine + 30-day suspension to $2,500 fine + 2-year suspension
• ✓Subsequent: $2,500-$5,000 fine + 2-year suspension to permanent revocation

Under Section 475.42(1)(f), F.S., making a false affidavit, affirmation, or false testimony before the Commission is a violation. First offense: $1,000 fine and 30-day suspension to $2,500 fine and 2-year suspension.

• ✓False affidavit/testimony before Commission is prohibited
• ✓First offense: $1,000 fine + 30-day suspension to $2,500 fine + 2-year suspension

The Legislature regulates real estate brokers, sales associates, and schools in Florida in the interest of the public welfare. This establishes the statutory authority for regulating the real estate profession.

• ✓Regulation exists to protect the public welfare
• ✓Chapter 475 governs brokers, sales associates, and real estate schools

A broker is a person who, for another and for compensation, appraises, auctions, sells, exchanges, buys, rents, or negotiates real property or business enterprises, or who advertises/holds out as engaged in such business. A broker renders a professional service. The term also includes general partners, officers, or directors of a brokerage entity, and persons listing/selling timeshare periods.

• ✓A broker acts for another and for compensation or valuable consideration
• ✓A single act is sufficient to bring a person within the definition of broker
• ✓Broker excludes appraisal services requiring a state-licensed/certified appraiser
• ✓Includes general partners, officers, or directors of a brokerage firm

A sales associate performs any act specified in the definition of broker, but does so under the direction, control, or management of another person. A sales associate renders a professional service under s. 95.11(4)(a).

• ✓Sales associate performs broker acts under direction, control, or management of another
• ✓Renders a professional service

A fiduciary is a broker in a relationship of trust and confidence with the buyer or seller as principal. The fiduciary duties are loyalty, confidentiality, obedience, full disclosure, accounting, and the duty to use skill, care, and diligence. A single agent represents, as a fiduciary, either the buyer or seller but not both in the same transaction.

• ✓Fiduciary duties: loyalty, confidentiality, obedience, full disclosure, accounting, skill/care/diligence
• ✓A single agent represents either buyer or seller but not both in the same transaction
• ✓A principal is the party with whom a licensee has a single agent relationship

A transaction broker provides limited representation to a buyer, seller, or both, but does not represent either in a fiduciary capacity or as a single agent. In a transaction broker relationship, parties give up their right to undivided loyalty, and are not responsible for the acts of the licensee.

• ✓Transaction broker provides limited (nonfiduciary) representation
• ✓Parties give up their right to undivided loyalty
• ✓A buyer or seller is not responsible for the acts of a transaction broker
• ✓Licensee will not represent one party to the detriment of the other

A broker associate is a person qualified to be issued a license as a broker but who operates as a sales associate in the employ of another. They hold broker qualifications but work under another broker.

• ✓Broker associate is qualified as a broker but operates as a sales associate
• ✓Must operate in the employ of another broker

Real property/real estate means any interest or estate in land and business enterprises/opportunities, including leaseholds and mineral rights, but excludes cemetery lots and mobile home/RV lot rentals in parks. A customer is a member of the public who may be a buyer or seller and may or may not be represented in an authorized brokerage relationship.

• ✓Real property excludes cemetery lots and mobile home/RV lot rentals in parks
• ✓Real property includes business enterprises, leaseholds, and mineral rights
• ✓A customer may or may not be represented in an authorized brokerage relationship

Involuntarily inactive status results when a license is not renewed at the end of the license period. Voluntarily inactive status results when a licensee applies to be placed on inactive status and pays the prescribed fee.

• ✓Involuntarily inactive results from failure to renew at license period end
• ✓Voluntarily inactive results from applying and paying the fee

The terms employ/employment/employer/employee include independent contractor relationships when intended between a broker and sales associate. 'Operate/operating' means committing one or more acts defining a broker or sales associate. A broker acting as trustee under chapter 689 is subject to this chapter unless the trustee is a bank or trust company with trust powers.

• ✓Independent contractor relationships are included in 'employ' terminology
• ✓A single act constitutes 'operating' and each prohibited act is a separate offense
• ✓A broker trustee is subject to the chapter unless a bank/trust company with trust powers

The Florida Real Estate Recovery Fund is a separate account in the Professional Regulation Trust Fund created to reimburse persons who suffer monetary damages from acts of licensees in real estate brokerage transactions when they cannot collect from the licensee.

• ✓Fund reimburses persons adjudged by a court to have suffered damages from a licensee's act in a real estate brokerage transaction involving Florida real property
• ✓The licensee must have held a current, valid, active license at the time the act was committed
• ✓The licensee must have been acting solely as a real estate licensee, not as seller/buyer/landlord/tenant or officer/director of such entity
• ✓The act must be a violation proscribed in s. 475.25 or s. 475.42

The Recovery Fund is funded by special per-license fees added to license fees, plus fines collected. Collection stops and resumes based on the fund balance.

• ✓Broker fee is $3.50 per year; sales associate fee is $1.50 per year added to license fees
• ✓Collection of special fees discontinues at end of licensing renewal cycle if fund exceeds $1 million
• ✓Special fees not reimposed unless the fund is reduced below $500,000
• ✓All fines imposed by the commission and collected by the department are transferred into the Recovery Fund

The fund also reimburses brokers or sales associates required by a court to pay damages due to distribution of escrow funds made in compliance with a commission-issued escrow disbursement order.

• ✓Fund disbursed to broker/associate who pays damages from a distribution made in compliance with a commission escrow disbursement order
• ✓No disbursement if the broker/associate fails to notify the commission and diligently defend the action