61J2-3.008 Pre-licensing Education for Broker and Sales Associate Applicants +24Florida · Real Estate · English

Prospective sales associates and brokers must complete Commission-prescribed prelicensing courses of defined hours before qualifying for licensure.

• ✓Sales associate applicants must complete Course I: 63 hours of 50 minutes each, inclusive of examination
• ✓Broker applicants must complete Course II: 72 hours of 50 minutes each, inclusive of examination
• ✓A 50-minute hour means 50 minutes of instruction exclusive of breaks or recesses
• ✓Completion does not entitle a person to a license until all other legal requirements and the state exam are passed

Prelicensing course completion requires passing an end-of-course examination with a set grade, and retake and make-up rules apply.

• ✓A grade of 70% or higher on the end-of-course examination constitutes satisfactory completion
• ✓The exam may be administered only if the student has not missed more than 8 hours of classroom instruction
• ✓Students failing must wait at least 30 days to retest; within one year may retest a maximum of one time before repeating the course
• ✓At least 70% of exam questions must be application oriented; no more than 10% at knowledge level

Certain qualified individuals are exempt from the prescribed prelicensing courses.

• ✓Active members in good standing with The Florida Bar are exempt from the sales associate prerequisite course
• ✓Applicants with a 4-year degree or higher in real estate from an accredited institution are exempt from prescribed prerequisite courses

To take the license exam, a person must submit a signed/electronic application, digital fingerprint data, and fee. Fingerprints are forwarded to FDLE and FBI for criminal history checks. At exam time, the applicant must submit the completion certificate, admissions authorization letter, and proof of identification.

• ✓Applicant must submit application, digital fingerprints, and fee
• ✓Fingerprints are forwarded to FDLE and FBI for criminal history checks
• ✓Educational institutions must certify completion to the commission

Active and inactive licensees must complete a minimum number of CE hours each renewal period, with specific mandatory course components.

• ✓Must complete a minimum of 14 hours of instruction (50 minutes each) each renewal period, excluding the first renewal period
• ✓Must take the 3-hour Core Law course once during each renewal period
• ✓Licensees whose license expires September 30, 2018 or thereafter must take the 3-hour Business Ethics course each renewal period
• ✓Specialty course hours must total at least 8 hours

Continuing education courses have a distinct passing grade and attendance requirement, and Florida Bar members are exempt.

• ✓A grade of 80% or higher on the prescribed CE examination constitutes satisfactory completion
• ✓Notice of classroom completion issued only to licensees attending at least 90% of classroom hours
• ✓Active members in good standing with The Florida Bar are exempt from CE requirements
• ✓Current FREC members may earn 3 specialty CE hours for serving at a legal agenda session, once per renewal cycle

The commission may enter written agreements with other jurisdictions to ensure comparable nonresident licensure opportunities. A resident licensee who becomes a nonresident must notify the commission within 60 days and comply with nonresident requirements; failure is a license law violation.

• ✓Resident who becomes nonresident must notify commission within 60 days
• ✓Failure to notify/comply is a violation subject to s. 475.25 penalties
• ✓Commission may enter mutual recognition agreements with other jurisdictions

The department licenses applicants certified by the commission. The application expires 2 years after the date received if the applicant does not pass the exam. If an applicant fails to pass within 2 years after successful course completion, the course completion becomes invalid. No license is issued to an applicant under investigation elsewhere until resolved.

• ✓Application expires 2 years after receipt if exam not passed
• ✓Course completion is invalid if exam not passed within 2 years
• ✓No license issued while applicant is under investigation in another jurisdiction

Licensees involuntarily inactive for a defined period must complete reactivation education to restore an active or voluntarily inactive license.

• ✓Involuntarily inactive status may only be maintained for 2 years before right to reactivate expires by operation of law
• ✓A license involuntarily inactive more than 12 but less than 24 months requires 28 hours of prescribed education derived from FREC Course I
• ✓A grade of 70% or higher on the end-of-course examination demonstrates satisfactory completion
• ✓The Commission may allow an additional 6-month hardship period after license expiration

For active license renewal, the licensee must complete at least 14 classroom hours (50 minutes each) of continuing education during each biennium. The commission may accept substitute courses on a classroom-hour basis. Attendance at one legal agenda session may substitute for 3 classroom hours once per renewal cycle (with 7 days advance notice).

• ✓Active licensees must complete 14 classroom hours of CE per biennium
• ✓A legal agenda session substitutes for 3 hours once per renewal cycle
• ✓No CE credit for attending a legal agenda as a disciplinary party

A license not renewed at the end of the license period automatically reverts to involuntarily inactive status. Sixty days before the end of the license period, the department mails a renewal notice to the licensee's last known address.

• ✓Unrenewed license automatically reverts to involuntarily inactive status
• ✓Department mails renewal notice 60 days before license period ends

New licensees must complete post-licensing education before their first renewal following initial licensure, with different hour caps for sales associates and brokers.

• ✓Sales associate post-licensing courses shall not exceed 45 hours (minimum 15-hour courses)
• ✓Broker post-licensing education shall not exceed 60 hours
• ✓A grade of 75% or higher on the post-licensing end-of-course examination constitutes satisfactory completion
• ✓An additional 6-month hardship extension may be allowed after the first renewal for individual physical hardship

School instructor permit holders must recertify competency each permit period with specified Core Law and Instructional Techniques hours.

• ✓Instructors must complete 7 classroom/distance hours: 3 hours Core Law and 4 hours Instructional Techniques
• ✓Up to 3 of the 7 hours may apply toward the CE core law requirement for licensure
• ✓Instructional Techniques requirement may only be fulfilled by attending a course taught by another instructor
• ✓Attorneys qualified under s. 475.451 are exempt from instructor CE requirements

A licensee may reactivate a license involuntarily inactive for 12 months or less by completing 14 hours of a commission-prescribed CE course. If inactive more than 12 but fewer than 24 months, 28 hours are required. Any license involuntarily inactive for more than 2 years automatically expires and becomes null and void.

• ✓Inactive 12 months or less: 14 hours to reactivate
• ✓Inactive 12-24 months: 28 hours to reactivate
• ✓Inactive over 2 years: license automatically expires and becomes void

A voluntarily inactive license may be renewed with continuing education not exceeding 12 classroom hours for each year inactive. The commission may reinstate a void license if failure was due to illness or economic hardship, if applied for within 6 months after the license became void.

• ✓Voluntarily inactive renewal CE: up to 12 hours for each year inactive
• ✓Void license reinstatement requires application within 6 months and illness/hardship

Course completion documentation must be provided and retained by licensees as proof of education, with penalties for false information.

• ✓Applicants for initial licensure must provide the course completion report at the scheduled examination
• ✓Licensees must retain the course completion report for at least 2 years following the end of the renewal period for which education is claimed
• ✓Furnishing false or misleading compliance information is grounds for disciplinary action

When a brokerage's sole active broker leaves, strict time limits apply to filling the vacancy or the registration is cancelled.

• ✓If a brokerage has one active broker who dies/resigns/is unable to serve, the vacancy must be filled within 14 calendar days, during which no new brokerage business may be performed
• ✓Failure to appoint another active or temporary broker within 14 days results in automatic cancellation of brokerage registration; associate licenses become inactive
• ✓A temporary broker may be registered for a period not to exceed 60 days
• ✓Failure to complete post-licensure education is not an unexpected vacancy for temporary broker qualification

Real estate partnerships and corporations must be registered with at least one active broker, and specific control and qualification rules apply.

• ✓Every partnership must be registered with at least one partner licensed as an active broker
• ✓No registration may be granted if a person controlling the corporation has been denied/revoked/suspended, or convicted of a felony without 5 years civil rights restoration
• ✓A person controls a corporation if they or family own/control more than 40 percent of voting stock
• ✓No sales associate or broker associate may be registered as an officer/director of a brokerage corporation or general partner of a brokerage partnership

A licensed broker may be issued additional broker licenses (not sales associate/broker associate licenses) when necessary to conduct brokerage business. A sales associate or broker associate may have no more than one registered employer at any one time. A final order of discipline applies to all multiple licenses.

• ✓Additional licenses may only be broker licenses, not sales/broker associate
• ✓Sales associate/broker associate may have only one registered employer at a time
• ✓Disciplinary orders apply to the primary and all multiple licenses

Each active broker must maintain an office of at least one enclosed room in a stationary building, and maintain a sign at the entrance of the principal and each branch office. The sign must contain the broker's name and trade name (if any), and at minimum the words 'licensed real estate broker' or 'lic. real estate broker.'

• ✓Active broker must maintain an office of at least one enclosed room
• ✓Entrance sign must show the broker's name and 'licensed real estate broker'
• ✓Out-of-state registered offices must agree to cooperate with investigations

A salesperson may only work for one broker or owner-developer, with a limited group license exception for affiliated entities.

• ✓A salesperson or broker-salesperson may only be employed by one broker or one owner-developer
• ✓A group license is permitted only when affiliated entities are so connected that ownership/control is substantially in the same individual(s)

A lawful name or trade name change requires a request for reissuance of the license or registration.

• ✓If a name or trade name is lawfully changed, a request for reissuance of the license or registration must be filed
• ✓The license or registration shall be reissued upon such request

A license ceases to be in force when a broker changes business address, a school changes address, or a sales associate/instructor changes employer. The licensee must notify the commission within 10 days of the change on a commission form.

• ✓License ceases to be in force on change of broker business address or employer
• ✓Licensee must notify commission within 10 days of the change

Brokers must maintain a registered office meeting statutory requirements, and additional offices must be registered as branch offices.

• ✓The required office may be in a residential location if not contrary to zoning, with minimum requirements met and broker's sign displayed per s. 475.22(1)
• ✓Sales associates must be registered from and work out of an office registered in the employer's name
• ✓Each additional office beyond one must be registered as a branch office and the fee paid
• ✓A temporary shelter on a subdivision where transactions are not closed is not a branch office

A licensee conducting business at another location must register it as a branch office and pay an annual fee not exceeding $50. Any office is deemed a branch office if a broker's advertising leads the public to believe the office is owned/operated by that broker.

• ✓Branch office registration fee may not exceed $50 annually
• ✓An office is a branch if advertising leads the public to believe broker operates it

All real estate advertising must clearly identify the brokerage and not be misleading, with specific rules for personal names and internet advertising.

• ✓All real estate advertisements must include the licensed name of the brokerage firm
• ✓No advertisement may be fraudulent, false, deceptive, or misleading
• ✓When the licensee's personal name appears, at least the last name must be used as registered with the Commission
• ✓On internet sites, the brokerage firm name must be placed adjacent to or immediately above/below the point of contact information

Teams or groups advertising under a name must operate under a supervising broker and follow specific naming and print-size restrictions.

• ✓Team/group names may include 'team' or 'group' but not words like Agency, Associates, Brokerage, Company, Corporation, Inc., LLC, Realty, Real Estate, Properties
• ✓The team/group must perform licensed activities under the supervision of the same broker/brokerage
• ✓Each team/group must file with the broker a designated licensee responsible for advertising compliance
• ✓In advertisements, the team/group name shall not be in larger print than the registered brokerage name

The commission may deny/renew applications, place licensees on probation, suspend a license up to 10 years, revoke a license, impose an administrative fine up to $5,000 per count, and issue a reprimand. These penalties apply for various violations including fraud, misrepresentation, and violations of s. 455.227(1) or s. 475.42.

• ✓Suspension may not exceed 10 years
• ✓Administrative fine may not exceed $5,000 per count/offense
• ✓Penalties include probation, revocation, reprimand, and denial

Discipline applies for fraud, misrepresentation, concealment, false promises, false pretenses, dishonest dealing by trick/scheme/device, culpable negligence, or breach of trust in any business transaction. It is immaterial that the victim sustained no loss or that damages were settled after discovery.

• ✓Fraud, misrepresentation, and dishonest dealing are grounds for discipline
• ✓It is immaterial that the victim sustained no damage or loss
• ✓Includes false, deceptive, or misleading advertising

When a broker has conflicting demands or good-faith doubt about escrowed funds, the broker must promptly notify the commission and use one of four escape procedures: request an escrow disbursement order (EDO), submit to arbitration (with consent), seek court adjudication by interpleader, or submit to mediation (with written consent). Mediation must be completed within 90 days.

• ✓Four escape procedures: EDO, arbitration, interpleader/court, mediation
• ✓Broker must promptly notify commission of doubts or conflicting demands
• ✓Mediation must be completed within 90 days of the last demand

A broker must immediately place entrusted funds in escrow with a title company, bank, credit union, or savings and loan. A broker may keep up to $5,000 of personal/brokerage funds in a property management escrow account and up to $1,000 in a sales escrow account. A sales associate must immediately deliver entrusted funds to the registered employer.

• ✓Up to $5,000 personal funds allowed in property management escrow account
• ✓Up to $1,000 personal funds allowed in sales escrow account
• ✓Sales associate must immediately deliver funds to the registered employer

Discipline applies for conviction of a crime relating to real estate activities or involving moral turpitude/fraud. A licensee must inform the commission in writing within 30 days after pleading guilty/nolo contendere to or being convicted of any felony. Having a license disciplined in another jurisdiction is also a ground.

• ✓Must inform commission in writing within 30 days of felony conviction/plea
• ✓Conviction of a crime involving moral turpitude/fraud is a ground for discipline
• ✓Discipline in another jurisdiction is grounds under Florida law

A broker must include in every written listing agreement a definite expiration date, property description, price and terms, fee/commission, and a proper signature of the principal(s). The broker must give the principal a legible signed copy within 24 hours. No provision may require notice to cancel after the expiration date.

• ✓Listings must have definite expiration date, description, price, terms, commission
• ✓Broker must give principal a signed copy within 24 hours
• ✓No automatic-continuation clause requiring cancellation notice after expiration

A broker who fails to direct, control, or manage a broker associate or sales associate employed by the broker is subject to discipline. A rebuttable presumption exists that an associate is employed by a broker if department records show registration. A broker must also review the brokerage's trust accounting procedures.

• ✓Broker must direct, control, and manage employed associates
• ✓Rebuttable presumption of employment from department registration records
• ✓Broker must review the brokerage's trust accounting procedures

An administrative complaint against a broker, broker associate, or sales associate must be filed within 5 years after the act giving rise to the complaint or within 5 years after the act is discovered or should have been discovered with due diligence.

• ✓Administrative complaint must be filed within 5 years of the act
• ✓Discovery rule: 5 years from discovery or when it should have been discovered

Licensees receiving kickbacks or rebates in a transaction must fully disclose to affected parties, and sharing compensation with a party requires full disclosure.

• ✓Receiving a kickback or rebate without full prior disclosure to the principal and all affected parties violates s. 475.25(1)(b) or (d)
• ✓Sharing brokerage compensation with a party to the transaction with full disclosure to all interested parties is not a violation

Brokers providing rental information lists must use a written contract with a specific bold notice about refund rights.

• ✓The written contract/receipt must contain the prescribed NOTICE in type size 10-point bold or larger stating refund rights
• ✓If information is not current or accurate, tenant may demand full fee refund within 30 days; otherwise 75% is refundable if demand is within 30 days
• ✓Each contract must be on one side of one page not larger than 8.5 x 11 inches, with remaining terms no smaller than 8-point type
• ✓Each licensee must furnish the Department a copy of the current contract within 30 days of use

Brokers must notify the Commission and institute settlement procedures within strict timeframes when facing conflicting demands or good faith doubt over trust funds.

• ✓On conflicting demands, broker must notify the Commission in writing within 15 business days of the last demand and institute a settlement procedure within 30 business days
• ✓On good faith doubt, broker must notify the Commission within 15 business days and institute a settlement procedure within 30 business days
• ✓If an escrow disbursement order settlement is subsequently settled or goes to court, broker must notify Commission within 10 business days
• ✓HUD earnest money deposits follow HUD contract requirements and are exempt from the notice/settlement procedures of s. 475.25(1)(d)1

Licensees must keep their mailing and email addresses current with the Department within a set time after any change.

• ✓Each licensee/permit holder must notify the Department in writing of the current mailing and email address, and any change, within 10 days
• ✓First-time failure results in a Citation; second or subsequent violations result in disciplinary proceedings

Without consideration of the related facts and circumstances, the mere payment or promise to pay compensation to a licensee does not determine whether an agency or transactional brokerage relationship exists between the licensee and a seller, landlord, buyer, or tenant.

• ✓Payment of compensation alone does not create an agency relationship
• ✓Related facts and circumstances determine the brokerage relationship

In a nonresidential transaction where the buyer and seller each have assets of $1 million or more, a broker at the customers' request may designate sales associates to act as single agents for different customers in the same transaction. Both parties must sign disclosures stating their assets meet the threshold and requesting the designated sales associate form of representation.

• ✓Available only in nonresidential transactions with $1 million+ assets each
• ✓Both buyer and seller must sign disclosures verifying the asset threshold
• ✓Designated sales associates act as single agents for different customers

The escrow rules define what constitutes a deposit and the timeframe deemed 'immediately' for placing funds into escrow.

• ✓A deposit is money or its equivalent delivered as earnest money, payment, or in connection with a real estate transaction under Chapter 475
• ✓'Immediately' means placement in an escrow account no later than the end of the third business day following receipt
• ✓Saturdays, Sundays, and legal holidays are not counted as business days
• ✓Only funds described in the rule may be deposited in trust/escrow accounts held in a Florida depository

Sales associates must promptly deliver received deposits to their broker or employer within a defined timeframe.

• ✓A sales associate who receives a deposit must deliver it to the broker/employer no later than the end of the next business day
• ✓Saturdays, Sundays, and legal holidays are not business days
• ✓Receipt by a sales associate or any brokerage representative constitutes receipt by the broker for the 3-business-day rule

A licensee may enter into a brokerage relationship as either a transaction broker or a single agent. A licensee may NOT operate as a disclosed or nondisclosed dual agent. There is a presumption that all licensees operate as transaction brokers unless a single agent or no brokerage relationship is established in writing.

• ✓Licensee may be a transaction broker or single agent only
• ✓Disclosed and nondisclosed dual agency is prohibited
• ✓Presumption of transaction brokerage unless written agreement states otherwise

A transaction broker owes seven duties: dealing honestly and fairly; accounting for all funds; using skill, care, and diligence; disclosing all known material facts affecting value not readily observable; presenting all offers/counteroffers timely; limited confidentiality; and any additional mutually agreed duties.

• ✓Transaction broker owes limited confidentiality unless waived in writing
• ✓Must disclose known material facts affecting value not readily observable
• ✓Must present all offers/counteroffers timely unless directed otherwise

A single agent owes nine duties: dealing honestly and fairly; loyalty; confidentiality; obedience; full disclosure; accounting for all funds; skill, care, and diligence; presenting all offers/counteroffers timely; and disclosing all known material facts affecting value not readily observable.

• ✓Single agent owes loyalty, confidentiality, obedience, and full disclosure
• ✓Nine total single agent duties including accounting and full disclosure
• ✓Must present offers timely and disclose material facts

Single agent duties must be fully described and disclosed in writing before or at the time of entering a listing/representation agreement or before showing property, whichever occurs first. When incorporated into other documents, notice must be same size type or larger, conspicuous, and the first sentence must be uppercase and bold.

• ✓Single agent disclosure required before/at listing or before showing, whichever first
• ✓First sentence of the notice must be uppercase and bold type
• ✓Notice must be conspicuous and same size type or larger

A single agent relationship may change to a transaction broker relationship at any time if the agent first obtains the principal's written consent using the required 'Consent to Transition to Transaction Broker' disclosure, which must be initialed or signed.

• ✓Transition requires the principal's prior written consent
• ✓Must use the required Consent to Transition to Transaction Broker disclosure
• ✓Consent must be initialed or signed by the principal

A licensee with no brokerage relationship owes three duties: dealing honestly and fairly; disclosing all known material facts affecting value not readily observable to the buyer; and accounting for all funds entrusted. A written No Brokerage Relationship Notice must be given before showing property.

• ✓No brokerage relationship owes three duties
• ✓Must disclose known material facts affecting value to the buyer
• ✓No Brokerage Relationship Notice given before showing property

The disclosure requirements apply to all residential sales: improved residential property of four units or fewer, unimproved residential property intended for four units or fewer, or agricultural property of 10 acres or fewer. Disclosures do not apply to nonresidential transactions, rentals (unless option to purchase), open houses, auctions, or appraisals.

• ✓Residential sale = 4 or fewer units, or agricultural of 10 acres or fewer
• ✓Disclosures do not apply to nonresidential transactions or pure rentals
• ✓Exceptions include open houses, auctions, and appraisals