Here are some questions on license law with answers provided by the legal department of Florida Realtors.
Q: An agent waits until the last minute to do the required postlicensure education. Unfortunately, she failed to complete it prior to the expiration date and her license is now null and void. Is it possible to obtain an extension of time?
A: Perhaps. The Florida Real Estate Commission may allow an additional six-month period to complete the postlicensure education if one was unable, due to “individual physical hardship,” to complete the course within the required time. Individual physical hardship is defined as a case where the licensee cannot, by reason of a physical disability, attend the place where the classes are conducted. FREC requires the extension request to be in writing and supported by statements of doctors and other persons having knowledge of the facts.
Q: An agent is going to be managing a large apartment complex. Does he need a community association manager license?
A: No. A CAM license is not required for the management of apartment buildings, commercial properties or single-family dwellings.
Q: A seller wants an agent to list her property. It was decided to enter into a 12-month listing agreement, with a provision that it will renew automatically for an additional six months if the seller doesn’t cancel it in writing. May the listing agreement renew automatically?
A: No. Section 475.25(1)(r), Florida Statutes, provides that it’s a violation of real estate licensing law if a real estate licensee “has failed in any written listing agreement to include a definite expiration date, description of the property, price and terms, fee or commission, and a proper signature of the principal(s); and has failed to give the principal(s) a legible, signed, true and correct copy of the listing agreement within 24 hours of obtaining the written listing agreement. The written listing agreement shall contain no provision requiring the person signing the listing to notify the broker of the intention to cancel the listing after such definite expiration date.”
Q: A recently married sales associate decides to legally change her name to her married name. Is she required to change her name on her sales associate license?
A: Yes. Rule 61J2-9.007, Florida Administrative Code, provides that when there’s been a legal name change, the licensee shall file a request for the real estate license to be reissued in the new name. For a new license to be reissued, a copy of the legal document that legally changed the name (marriage license in this case) must be included in this request.
Q: A sales associate wants to set up a company using his team name so that his broker can pay commissions to this separate company. May he do this?
A: No. Pursuant to Section 475.161, Florida Statutes, a sales associate or broker associate must use his or her legal name as it appears on his or her real estate license when incorporating as a limited liability company (LLC), professional corporation (PA) or professional limited liability company (PLLC).
Q: May a sales associate be paid directly for conducting a broker price opinion?
A: No. Section 475.42(1)(d), Florida Statutes, does not allow sales associates to collect any money in connection with a real estate brokerage transaction, whether as commission or other payment, except in the name of their employer—the broker. BPOs fall within the defi nition of real estate brokerage activity— “appraising” property—as per Section 475.01, Florida Statutes.
Q: A man is a real estate broker and an appraiser who entered a plea of nolo contendere to DUI (a misdemeanor). Is there a duty to report this misdemeanor to the Florida Real Estate Commission or the Florida Real Estate Appraisal Board?
A: Yes. As of Oct. 1, 2009, Section 455.227(1)(t), Florida Statutes, requires you to report this misdemeanor to the FREC and the FREAB within 30 days after the plea or after being found guilty. Prior to Oct. 1, 2009, real estate licensees and appraisers had a duty to report only felonies to the FREC and the FREAB.
Q: A sales associate wants to open a real estate corporation. May she be an officer or director of this real estate corporation?
A: A sales associate may be a shareholder of a real estate corporation; however, he or she may not be an officer or director of that corporation as per Chapter 61J2-5.016, Florida Administrative Code. Furthermore, the corporation must have a qualifying broker registered with the Department of Business and Professional Regulation. The qualifying broker of the corporation must be an officer or director of the real estate corporation.
Q: The Florida Real Estate Commission disciplined an agent several years ago. Is there a way to expunge his record?
A: It depends. Although Florida law does not refer to the process as expungement, Section 455.2255(1), Florida Statutes, states, in part, that a “licensee may petition the department to review a disciplinary incident to determine whether the specific violation meets the standard of a minor violation as set forth in Section 455.225(3).