61J2-24.002 Citation Authority +20Florida · Real Estate · English

Citation fines include: failure to immediately deposit trust funds (if not more than 3 days late) $400 under 475.25(1)(k); failure to give appropriate disclosure/notice under 475.2755 or 475.278 (first-time violation only) $600 under 475.25(1)(q); failure to include required listing agreement info or give a copy to principal within 24 hours $400 under 475.25(1)(r); failure to properly reconcile an escrow account when it balances $500; failure to secure written permission before placing trust funds in interest-bearing account $600.

• ✓Trust fund deposit not more than 3 days late: $400 citation
• ✓Missing required disclosure (first-time only) under 475.2755/475.278: $600 citation
• ✓Escrow reconciliation failure when account balances: $500 citation

Citation fines for advertising: false, inaccurate, misleading, or exaggerated information under 475.4511(2) is $1,000; advertising where a reasonable person wouldn't know they're dealing with a licensee, or failing to include the brokerage's registered name or the licensee's registered last name (Rule 61J2-10.025) is $1,000; team/group advertising violations (second violation after July 1, 2019) $1,000; improper use of association name (Rule 61J2-10.027) $600.

• ✓False/misleading advertising under 475.4511(2): $1,000 citation
• ✓Advertisement must disclose licensee status and include registered brokerage name and licensee's registered last name; violation $1,000

Pursuant to Section 455.224, F.S., the Commission sets forth violations posing no substantial threat to public health, safety, and welfare (or where potential harm was removed before the citation). Each listed violation carries a specified fine. Citations may be issued to real estate licensees, permit holders, and registrants by the Division of Real Estate.

• ✓Citations are for violations with no substantial threat to public health, safety, and welfare
• ✓Citations may be issued by the Division of Real Estate to licensees, permit holders, and registrants

Specific citation fines include: failure to notify Commission of becoming a nonresident ($600); failure to maintain required office ($1,000); failure to maintain office entrance sign ($250); failure to register an out-of-state Florida broker's office ($1,000); failure to register a branch office ($400); failure to obtain a multiple permit ($1,000).

• ✓Failure to maintain required office: $1,000; failure to maintain entrance sign: $250
• ✓Failure to register branch office: $400; failure to register out-of-state broker office: $1,000

Citations are served upon the subject by personal service or certified mail (restricted delivery) to the last known address. The subject has 30 days from the date the citation becomes a final order to pay the fine. All fines are made payable to the Department of Business and Professional Regulation - R.E. Citations and sent to the Division of Real Estate in Orlando, with a copy of the citation accompanying payment.

• ✓Citations served by personal service or certified mail restricted delivery to last known address
• ✓30 days to pay fine after citation becomes a final order; payable to DBPR-R.E. Citations, sent to Orlando

A person seeking recovery must satisfy specific procedural conditions including obtaining a final judgment, giving notice to the commission, timely filing, execution of judgment, and applying recovered amounts to damages.

• ✓Must receive a final judgment in a Florida court against an individual broker or sales associate based on a brokerage transaction
• ✓Must give notice to the commission by certified mail at the time the action commences (claim may still be honored if otherwise valid)
• ✓Claim must be made within 2 years from the act or its discovery, but in no event more than 4 years after the act
• ✓Must have caused a writ of execution to be issued and executed an affidavit showing insufficient property to satisfy the judgment
• ✓Commission may waive final judgment requirement if licensee died or bankruptcy precludes judgment

Certain persons are excluded from making claims against the Recovery Fund, primarily to prevent self-dealing and to limit recovery to genuine injured members of the public.

• ✓The spouse of the judgment debtor or a personal representative of the spouse is not qualified
• ✓A licensed broker or sales associate who acted as single agent or transaction broker in the transaction is not qualified
• ✓Not qualified if the licensee owned/controlled the property, dealt for their own account, or was not acting as a broker/associate
• ✓Not qualified if the licensee did not hold a valid, current, active license at the time of the transaction
• ✓Not qualified if judgment is against a brokerage corporation, partnership, LLC, or LLP

Chapter 475 does not apply to certain persons: attorneys in fact, attorneys at law, CPAs within their duties, personal representatives/receivers/trustees appointed by court/will, and owners selling/leasing their own property. The owner exemption is lost if a commission-paid agent is employed for sales in the ordinary course of business.

• ✓Attorneys at law, CPAs, and court-appointed representatives are exempt within their duties
• ✓Owners selling/leasing their own property are exempt
• ✓Owner exemption is lost if a transaction-based commission agent is employed

Salaried employees of an apartment community owner working in an onsite leasing office are exempt. Salaried managers of condominium/cooperative complexes are exempt for renting units if rentals are for no more than 1 year. Public utility, railroad, and government employees acting within employment (no extra compensation) are exempt.

• ✓Salaried onsite apartment leasing employees are exempt
• ✓Condo/co-op managers exempt for rentals of no more than 1 year
• ✓Government/utility employees exempt when no extra compensation is paid

A property management firm or apartment owner may pay a finder's/referral fee not exceeding $50 per transaction to an unlicensed tenant. Persons registered/licensed as appraisers under part II performing appraisals are exempt. Exceeding the $50 limit violates s. 475.25(1)(h).

• ✓Finder's/referral fee to unlicensed tenant may not exceed $50 per transaction
• ✓Registered appraisers performing appraisals under part II are exempt
• ✓Exceeding the finder's fee limit is a violation punishable under s. 475.42

Pursuant to Sections 455.225(3) and 120.695, F.S., the Commission designates minor violations for which the DBPR shall issue a notice of noncompliance. A violation is minor if it does not result in economic or physical harm, adversely affect public health/safety/welfare, or create a significant threat of such harm. The notice is only issued for an initial (first) offense of a listed minor violation.

• ✓A minor violation causes no economic/physical harm and no significant threat to public welfare
• ✓Notice of noncompliance is issued only for an initial offense of a listed minor violation

The DBPR issues a notice of noncompliance identifying the violated statute/rule and how to comply, allowing 15 days for compliance measured from receipt. Failure to comply within the allowed time results in issuance of a citation under 61J2-24.002 (or, if no citation exists, regular disciplinary proceedings under Section 455.225). The notice may be delivered by certified mail, restricted delivery, or personal service.

• ✓DBPR allows 15 days for compliance, running from receipt of the notice
• ✓Failure to comply results in a citation or regular disciplinary proceedings under Section 455.225

Listed minor violations eligible for a notice of noncompliance include: failure to maintain the office entrance sign (475.22(1)); failure to register a branch office (475.24); failure to register a school location (475.451(3)); failure to register a trade name (Rule 61J2-10.034); failure to sign escrow reconciliation when account balances (Rule 61J2-14.012); failure to stop interest from accruing prior to disbursement (61J2-14.014(2)); and failure to inform students of course standards.

• ✓Failure to maintain office entrance sign and failure to register a branch office are minor violations
• ✓Failure to register a trade name and failure to sign a balanced escrow reconciliation are minor violations

The Florida Real Estate Commission consists of seven members appointed by the Governor and confirmed by the Senate. Four must be licensed brokers with 5 years active license; one must be a broker or sales associate with 2 years active license; and two must be non-licensees who were never brokers/sales associates. At least one member must be 60 years of age or older. Members serve 4-year terms.

• ✓FREC has 7 members appointed by the Governor, confirmed by the Senate
• ✓Four members must be brokers with 5 years active license
• ✓Two members must never have been brokers/sales associates
• ✓At least one member must be 60 years or older; terms are 4 years

The Recovery Fund pays limited amounts per claim, per transaction, and per licensee, and only for actual or compensatory damages, not treble damages, costs, fees, or interest.

• ✓Under s. 475.482(1), payment equals unsatisfied judgment or $50,000, whichever is less, limited to actual/compensatory damages
• ✓Payments for claims from the same transaction limited to $50,000 in aggregate regardless of number of claimants
• ✓Payments based on judgments against any one broker or sales associate may not exceed $150,000 in aggregate
• ✓Treble damages, court costs, attorney's fees, and interest generally are not recoverable from the fund (except as provided in s. 475.483)

When the fund pays to satisfy a judgment against a licensee, that licensee's license is automatically suspended and cannot be reinstated until repayment.

• ✓License is automatically suspended on the date of payment from the fund for claims under s. 475.482(1)
• ✓License cannot be reinstated until the licensee repays the fund in full plus interest; no further administrative action is necessary
• ✓A discharge in bankruptcy does not relieve the licensee from these penalties, except where it conflicts with 11 U.S.C. s. 525
• ✓Claimant must assign right, title, and interest in the judgment to the commission upon payment (subrogation)

When funds are insufficient or multiple claims exceed limits, the statute provides ordering and proration rules for payment.

• ✓Unpaid claims are satisfied as soon as sufficient money is deposited into the fund
• ✓Claims paid in the order approved by the commission when more than one is outstanding
• ✓If total claims approved at one meeting exceed the aggregate limit against one licensee, claims approved that day are prorated
• ✓All payments are made by the Chief Financial Officer upon a voucher signed by the department secretary

The Commission finds mediation acceptable for violations that are economic in nature or can be remedied: failure to maintain an office or entrance sign (Section 475.22); failure to register a branch office (Section 475.24); and failure to deliver a licensee's share of a commission where a civil judgment has been obtained but not satisfied (Section 475.25(1)(d)).

• ✓Mediation applies to office/sign maintenance and branch office registration failures
• ✓Mediation applies to unpaid commission shares supported by an unsatisfied civil judgment

Under Section 455.2235, F.S., mediation is an informal process where a DBPR-appointed mediator encourages and facilitates resolution of a legally sufficient complaint, aiming for a mutually acceptable resolution between the complainant and the subject of the complaint.

• ✓Mediation is an informal process facilitated by a DBPR-appointed mediator
• ✓Its objective is a mutually acceptable resolution of a legally sufficient complaint

Brokers must maintain and preserve business records to enable department compliance determination, with specified retention periods that vary based on funds handling and litigation.

• ✓Broker must preserve at least one legible copy of all books, accounts, and records for at least 5 years from date of receipt of funds
• ✓If no funds are entrusted, records kept for at least 5 years from date of execution of any listing, offer, or agreement
• ✓Records that were evidence in litigation must be retained at least 2 years after conclusion of the action/appeal, but never less than 5 years total
• ✓Disclosure documents under ss. 475.2755 and 475.278 must be retained in all transactions resulting in a written contract to purchase and sell

Unless otherwise stated in the final order, a probation term is 90 days, commencing 30 days after the final order is filed. If a respondent cannot complete probation requirements in time, the Division Director may grant a one-time 180-day extension for illness, unavailability of a required course, or economic hardship (all requirements completed except payment of fines/costs and presently unable to pay). Extension requests must be documented in writing and made before the initial term expires.

• ✓Probation term is 90 days, commencing 30 days after the final order is filed
• ✓Division Director may grant a one-time 180-day extension for illness, course unavailability, or economic hardship
• ✓Extension requests must be made in writing before the initial probation term expires or are automatically denied

When probation requires attending Commission meetings, the respondent must arrive at least 5 minutes early (inability to find parking is not good cause), may take absences of no more than 5 minutes per hour (remaining at least 55 minutes/hour), attend in entirety, turn off electronic devices, and attend live in-person (video/telephonic not accepted). Failure to comply results in loss of attendance credit. If no live in-person meetings occur during probation, the Director may extend probation up to 180 days.

• ✓Must arrive at least 5 minutes early and attend the meeting live and in-person; virtual attendance not accepted
• ✓Must remain at least 55 minutes per hour; failure to comply results in loss of attendance credit
• ✓Special accommodations for disability require contacting Division of Real Estate at least two weeks prior

The Division of Real Estate provides all services concerning chapter 475, including recordkeeping, examination, legal, and investigative services. The Division is funded by commission fees and assessments, and funds may only be used to fund real estate regulation.

• ✓Division of Real Estate provides recordkeeping, exam, legal, and investigative services
• ✓Funds collected may be used only to fund real estate regulation

Under 61J2-26.001, a nonresident seeking Florida licensure pursuant to s. 475.180 must pass a mandatory written examination to ensure knowledge of Florida law. The exam consists of 40 questions worth one point each; a grade of 30 points or higher is required to pass. The subject area is general real estate license law, with particular emphasis on Chapters 455 and 475 and Chapter 61J2 rules. This exam is required of all nonresident applicants regardless of jurisdiction.

• ✓Nonresident exam is 40 questions, one point each; passing score is 30 or higher
• ✓Exam emphasizes Chapters 455 and 475 F.S. and Chapter 61J2 rules and is required of all nonresident applicants

Under 61J2-26.002, a 'resident' of Florida for purposes of s. 475.180(1) is: (1) a person who resided in Florida continuously for 4 calendar months or more within the preceding one year; or (2) a person presently residing in Florida with intent to reside continuously for 4 months or more, commencing on the current period's start date. The place of residence may be a recreational vehicle, hotel, rental unit, or any temporary or permanent situs.

• ✓A resident has resided in Florida continuously for 4+ calendar months within the preceding year
• ✓Alternatively, a resident presently resides in Florida intending continuous residence of 4+ months
• ✓The situs may be an RV, hotel, rental, or any temporary/permanent location

Under 61J2-26.003, nonresident licensees must satisfy the same education requirements as residents. All nonresident applicants must complete a Commission-prescribed/approved post-license course before the first renewal (per Rule 61J2-3.020). After the first renewal, nonresident licensees must complete continuing education per Rule 61J2-3.009. Failure to complete post-license education results in penalties under s. 475.17(3) or (4). Hardship cases are governed by Rule 61J2-3.013.

• ✓Nonresidents must complete post-license education before the first renewal per Rule 61J2-3.020
• ✓After first renewal, nonresidents must complete continuing education per Rule 61J2-3.009
• ✓Failure to complete post-license education triggers penalties under s. 475.17(3) or (4)

The commission may enact bylaws and adopt rules under ss. 120.536(1) and 120.54 to implement the law. It may decide questions of practice. Printed or sealed copies of rules are prima facie evidence, and courts must judicially notice such rules. Disciplinary powers and rulemaking cannot be delegated to individual members.

• ✓Commission may adopt rules to implement its statutory powers
• ✓Disciplinary powers and rulemaking power cannot be delegated
• ✓Printed/sealed rule copies are prima facie evidence

Authorized department agents may inspect and audit brokers and brokerage offices to determine compliance with statutes and rules.

• ✓Agents may inspect and audit any broker or brokerage office at all reasonable hours in a lawful manner
• ✓Inspections determine compliance with chapter 475, chapter 455, or any rule under those chapters

The department may seek injunctions against brokers, and courts may appoint receivers over broker property and business.

• ✓Department may bring civil action in circuit court to enjoin a broker from violations
• ✓Court may appoint receivers for the property and business of the broker to prevent violations or injury to the public
• ✓Receiver expenses paid from brokerage assets; if insufficient, court may order disbursement from Recovery Fund not exceeding $100,000 per receivership

Electronic and facsimile signatures and writings are legally binding under Part I of Chapter 475.

• ✓Instruments or writings provided by electronic means or facsimile are binding and sufficient
• ✓Signatures transmitted by electronic means or facsimile satisfy written signature requirements

The commission by rule may establish fees for application, examination, licensing, renewal, and other services. The initial application and examination fee may not exceed $100. The initial license fee and renewal fee may not exceed $50 per year of license duration. Fees may be refunded if the state is not entitled or the application is not completely processed.

• ✓Initial application and examination fee may not exceed $100
• ✓Initial license fee and renewal fee may not exceed $50 per year
• ✓Fees are refunded if the state is not entitled or application incomplete

Rule 61J2-1.011 sets application, biennial licensure, and registration fees. Every licensee under Chapter 475 must register with FREC and secure a license for each license period.

• ✓Application fee is $14.75 each for Broker, Sales Associate, and School Instructor
• ✓Effective July 1, 2021, biennial licensure fees: Broker $72.00, Sales Associate $64.00, School Instructor $64.00
• ✓Biennial permit fees: Real Estate School $104.00, School Additional Location $45.00
• ✓Late fee is $25.00; Change of Individual License to/from Professional Association is $30.00

Inactive licenses carry the same fee and payment timing as active licenses, but there is no inactive branch office license.

• ✓Fee and time of payment for an inactive license are the same as for an active license
• ✓There is no inactive branch office license

Licensees may renew as voluntarily inactive; failure to renew reverts status to involuntarily inactive, and prolonged inactivity results in expiration.

• ✓Voluntarily inactive licensee may renew as inactive every two years by satisfying CE and paying the fee
• ✓If a licensee does not elect to renew, status automatically reverts to involuntarily inactive
• ✓When total involuntary inactivity exceeds 2 years, the license automatically expires per s. 475.183(2)
• ✓DBPR gives notice 90 days prior to expiration to the involuntarily inactive licensee

An active broker may serve in non-brokerage roles with other real estate entities while maintaining an active license with another brokerage firm.

• ✓An active broker may serve as officer/director of a real estate corporation or partner in a partnership in a non-brokerage capacity
• ✓The broker must maintain an active license with another real estate brokerage firm to do so

Each partnership, LLP, LLC, or corporation acting as a broker must register with the commission and renew licenses of members, officers, and directors. In a limited partnership, only general partners must be licensed brokers. If no active broker member's license is in force, the entity registration is automatically cancelled during that period.

• ✓Brokerage entities must register and renew licenses of members/officers/directors
• ✓In a limited partnership, only general partners must be licensed brokers
• ✓Entity registration is automatically cancelled if no active broker member is in force

Individual applicants must meet age, education, and (for brokers) experience requirements to qualify for a real estate license.

• ✓Applicant must be 18 years of age or older
• ✓Applicant must hold a high school diploma or its equivalent
• ✓Broker applicants must have been an active sales associate at least 24 months during the preceding 5 years, or held equivalent government/out-of-state broker experience
• ✓Each applicant must submit digital fingerprint data for a criminal history check

Applicants must disclose criminal, disciplinary, and application history to enable investigation of honesty, truthfulness, and good character.

• ✓Must disclose any conviction, guilty/nolo contendere plea (regardless of adjudication), or current criminal investigation
• ✓Must disclose any prior professional license/permit that was revoked, suspended, surrendered, or disciplined in any jurisdiction
• ✓Must disclose any prior real estate license application denial or pending denial proceeding
• ✓Must disclose any other names or aliases used

The commission licenses a broker associate or sales associate as an individual, or as a professional corporation, LLC, or PLLC upon authorization from the Department of State. Licenses are issued in the licensee's legal name. This does not permit a broker associate/sales associate to be licensed as an officer or director of a brokerage firm.

• ✓License is issued in the licensee's legal name only
• ✓Licensees may be a PA, LLC, or PLLC with Department of State authorization
• ✓Broker associate/sales associate may not be a brokerage firm officer/director

An applicant who is a natural person must be at least 18 years old; hold a high school diploma or equivalent; and be honest, truthful, trustworthy, of good character, with a good reputation for fair dealing. Active broker/sales associate applicants must be competent to make real estate transactions safely for investors.

• ✓Applicant must be at least 18 years old
• ✓Applicant must hold a high school diploma or equivalent
• ✓Applicant must be honest, truthful, trustworthy, and of good character

Prelicensure courses may not exceed 63 classroom hours (50 minutes each) inclusive of examination for a sales associate, and 72 classroom hours for a broker. Distance learning is an approved option. Notice of satisfactory completion is not issued if absences exceed 8 classroom hours.

• ✓Sales associate prelicensure course: up to 63 classroom hours inclusive of exam
• ✓Broker prelicensure course: up to 72 classroom hours inclusive of exam
• ✓No completion notice if absences exceed 8 classroom hours

A person may not be licensed as a broker unless they held an active sales associate license for at least 24 months during the preceding 5 years (or equivalent government/foreign broker experience). Sales associates licensed in Florida within the preceding 5 years must also complete postlicensure education requirements.

• ✓Broker applicants need 24 months active sales associate license in preceding 5 years
• ✓Sales associate must complete postlicensure education to be eligible for broker license

The commission may prescribe postlicensure education: up to 45 classroom hours for sales associates and up to 60 hours for brokers, prior to the first renewal after initial licensure. A sales associate/broker who fails to complete postlicensure education by the first renewal has a null and void license and must requalify. A 4-year real estate degree exempts the applicant from education requirements.

• ✓Sales associate postlicensure education: up to 45 classroom hours before first renewal
• ✓Broker postlicensure education: up to 60 classroom hours before first renewal
• ✓Failure to complete postlicensure education makes the license null and void
• ✓4-year real estate degree exempts from education requirements

A broker who fails to complete postlicensure education by the first renewal has a null and void license, but may obtain a sales associate license by completing the 14-hour continuing education course within 6 months of expiration. To operate as a broker again, the person must requalify by completing the broker prelicensure course and passing the exam.

• ✓Broker failing postlicensure may get sales associate license via 14-hour CE within 6 months
• ✓To operate as broker again, must requalify with prelicensure course and exam

The state licensure examination is graded on 100 points with a passing threshold, and points are allocated across subject areas differently for sales associates versus brokers/instructors.

• ✓A grade of 75 points or higher is required to pass the licensure examination
• ✓Sales associate exam: 45 points law, 45 points principles/practices, 10 points math
• ✓Broker and instructor exam: 45 points law, 40 points principles/practices, 15 points math

When an application is denied, the applicant receives written notice and has a limited time to request a hearing.

• ✓Applicant is notified in writing by email, registered/certified mail, or service; if returned unserved, department must attempt again
• ✓The order must include reasons for denial and advise the applicant has 21 days from receipt to request a hearing under Chapter 120