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License Law & Commission Rules/ Duties & Disclosures

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Answer
Department of Business & Professional Regulation (DBPR)   Created by statute, the department regulates professions in the state of Florida, one of which is the Division of Real Estate  
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DBPR powers   issue cease & desist orders (lic & unlic) - administer oaths, take depos, issue subpoenas, & adopt rules-LICENSEES ONLY  
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DBPR citations   455-citations are issued when rules or laws are violated. the max fine is 5,000 per offense  
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FREC FLORIDA REAL ESTATE COMMISSION   475-An administrative agency formed to: educate real estate licensees ;pass rules to regulate the operation of licensees & to interpret f.s 475 ; impose disciplinary action against licensees for rule and law violations  
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FREC members   4-must be licensed real estate brokers for at least 5yrs; 1 must be a licensed real estate sales associate for at least 2yrs; 2 cannot be licensed or have ever been; 1 must be at least 60yrs of ageber  
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FREC member office terms   fs 475; appointed by the governor to at least 4 year terms; may serve no more then 2 consecutive terms; no maximum number of years- but no more than 2 consecutive terms  
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FREC powers   FS 475- executive powers (publish books & education members) quasi-legislative powers (interpret & implement fs 475) quasi-judicial powers (impose disciplinary actions against licensees)  
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FREC disciplinary authority   fs 475- deny applications; issue reprimands; place licensee on probation; suspend licensee on probation; suspend licensee up to 10yrs; permanently revoke license; issue administrative fines up to 5,000 per offense  
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voluntary inactive status   licensee who does not wish to engage in the real estate business; may remain in this status indefinitely; must renew license by completing continuing education every 2 years  
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involuntary inactive   fs 455.02/475.183 licensee does not renew their license; automatically becomes involuntary inactive; stays in the status for 2 years; cannot perform real estate services; license null & void after 2 years  
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us armed forces members   FREC RULE 61J2-1.015 dues & renewal requirements waived while on active duty; continues for 6 months after leaving active duty; applies to spouse while stationed outside Fl; must not engage in real estate activities during this period to maintain status  
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void & ineffective licenses   only active broker in a firm has license; suspended, revoked or becomes ineffective; all licensees under broker are automatically involuntary inactive; turn license back to DBPR- license is cancelled  
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multiple license   fs 475.215 issued to a qualifying broker owning more than one real estate company  
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group license   FREC rule 61J2 6.006 a sales or broker associate working for one owner-developer who is registered, not licensed  
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common law   unwritten law derived from english common law; uses previous court decisions as guidelines  
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statutory law   written laws are called statues; enforced by the courts; fs 455 & 475 are examples  
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administrative law   laws enforced by administrative agencies; have the power to levy monetary fines; fs 455 & 475 are examples  
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special agent   authorized by an employer to perform a single act; the agents employer is her principle  
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general act   authorized to act for an employer on a continuing basis; authority is limited to a specific trade or business; a licensee is a general agent of her broker or owner-employer  
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arm's length relationship   parties are adversaries; licensees may never deal at arms length; owe everyone honesty and fairness  
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universal agent   may act for her principal in all matters (power of attorney) acting for someone lacking the mental capacity  
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Subagent   extension of other agencies; licensee is a general agent for their broker/ owner-employer; licensee is a subagent of broker/ owner-employers principals  
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brokerage relationships   transaction broker (written disclosure not required) single agent (written disclosure required) no brokerage relationship (written disclosure required) applies to residential sales as defined by florida  
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brokerage relationship disclosures   fs 475- transaction broker (written disclosure not required) single agent (written disclosure required) no brokerage relationship (written disclosure required) applies to residential sales as defined by florida  
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brokerage relationship disclosure   must be made before or at the time of entering into a contract, or- before showing the property (which ever occurs first)- written disclosures must be kept for 5 years  
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transaction broker duties   fs 475.278-deal honesty & fairly; disclose all known facts that materially affect the value of the property; account for all funds; use skill care & diligence; present all offers & counter offers; limited confidentiality; additional duties as agreed  
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single agent duties   fs 475-deal honestly & fairly; disclose all known facts that materially affect the value of the property; account for all funds; use skill, care & diligence; present all offers & counter offers; loyalty; full confidentiality; obedience; full disclosure  
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no brokerage relationship   fs 475- deal honestly & fairly; disclose all known facts that materially affect the value of the property; account for all funds  
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consent to transition to transaction broker notice   fs 475- single agent changes to transaction broker relationship; principle must give written consent; no written consent-licensee must remain single agent  
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designated sales associate   fs 475 non residential sale (as defined by fl) both parties request single agency representation from same firm in same transaction; both parties must have assets 1,000,000 or more; broker assigns one agent to represent buyer & another to represent seller  
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principal   employer of a single agent  
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dual agency   one licensee represents both buyer & seller; in the same transaction; as a single agent; illegal in the state of florida  
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fiduciary duties   fs 475.01 duties owed to a principal in single agency; principal can sue licensee if these duties are breached; may bring criminal penalties by attorney general  
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presenting offers   licensee must transmit any & all offers; written & verbal; offers without a deposit; charged with concealment if failure to present  
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find a purchaser (listing contract)   commission is due once sales contract is signed  
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effect a sale (listing contract)   commission is not due until title transfers (closing)  
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payment of commission   licensee can only be paid by their broker/owner- developer; broker may give written permission for closing agent to pay licensee @ closing; licensee not paid- can only sue employer-not public  
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overage or secret profit   illegal for broker to receive more than customary profit; unless employer is informed  
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illegal kickback   frec rule 61J2- commission & additional fee paid to licensee; without all parties knowledge; without proper license; for which no service was performed; regulated by the respa  
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legal kickback   frec 61J2- commission & additional fee paid to licensee; all parties to the transaction are informed; with proper license if require; an actual service was performed; regulated by the respa  
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referral fee to licensees   fs 475.25/ frec rule 61J2 may share commission with out parties knowledge or permission; recipient must have active license in another state or country; if not a fla licensee- may participate in the transaction  
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referral fee to non-licnsees   fs 475.25/ frec 61J2-10.028 licensee may not share commission with unlicensed parties; may share commission to unlic parties; may share commission to unlic party to the transaction; with full disclosure to all interested parties  
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relationships document retention   fs 475.5015 residential relationship disclosure documents; must be kept in files for 5 years; for all written contracts; even if transaction doesn't close  
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multiple listing service (mls)   member- broker organization; brokers agree to place all listings in mls; listing brokers offer commission split to selling brokers called "cooperating" brokers  
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