FL RE Broker cheat sheet

Florida DBPR, Division of Real Estate administers licensing; FREC (7 members, appointed by Governor) adopts rules and imposes discipline; DBPR issues and renews licenses.

Sales associate license requires 63 classroom hours; broker license requires 72 hours plus 24 months (or 2 years) of active experience within the preceding 5 years as a sales associate.

Initial sales associate license is issued as inactive; a broker or owner-employer must register the associate with DBPR before the associate may perform brokerage activity.

Broker registration of a sales associate is required within 45 days of the associate's association with the brokerage; failure to register is a violation for both parties.

Escrow: broker must deposit trust funds within 3 business days of receipt; property management trust accounts are reconciled monthly, and all other escrow accounts reconciled at least quarterly.

Broker must retain escrow records for at least 3 years from the date of receipt; brokerage transaction records for at least 2 years from the date of the transaction.

FREC may impose administrative fines up to $5,000 per violation (up to $10,000 for violations involving real estate fraud or certain repeat violations), plus probation, suspension, or revocation.

Advertising must include the brokerage firm name; team names and associate names may appear but cannot obscure the firm name, and ads must not be false or misleading.

A broker may operate as a sole proprietorship, corporation, LLC, or partnership; the business entity must register a qualifying broker with DBPR and the license is issued to the entity.

Broker is responsible for supervising all associated sales associates; written office policy manual covering agency, escrow, advertising, and fair housing is required and must be provided to associates.

Independent contractor status for tax purposes requires a written agreement; IRS common-law factors control, and Florida license law does not by itself create IC status.

Broker must maintain a written escrow reconciliation; the reconciliation compares the trust account bank balance to the sum of individual ledger balances and must show a zero or positive variance.

Broker compensation may be paid only through the brokerage entity; associates may not accept compensation directly from clients, other brokers, or third parties without the broker's knowledge and consent.

Risk management: verify license status, document disclosures, use FR/BAR or approved forms, retain signed agency disclosures, and never allow unlicensed staff to negotiate terms.

Broker must notify DBPR within 10 days of a change of business address and within 45 days of any change in the registered sales associates.

Broker must keep a current register of all associates, and each associate must have a written independent contractor or employment agreement specifying commission splits and duties.

Commission disputes among cooperating brokers should be resolved by written agreement before closing; Florida does not impose a statutory procuring-cause rule, so the written contract controls.

Florida default is transaction broker unless the parties agree in writing to single agent or no brokerage relationship; the choice must be disclosed before a substantive contact or at first substantive contact.

Single agent owes full fiduciary duties: loyalty, confidentiality, obedience, full disclosure, accounting, and reasonable care and skill; transaction broker owes limited representation without loyalty or confidentiality.

No brokerage relationship: the licensee must deal honestly and fairly, disclose all known facts materially affecting value, and account for funds, but owes no fiduciary duty.

Designated sales associates may be appointed in nonresidential transactions when both parties are represented; written consent from both principals is required, and the broker remains a transaction broker or single agent as disclosed.

Transition from one relationship to another requires a new written disclosure and consent before the change takes effect.

Confidentiality survives termination of the agency relationship; a former single agent may not disclose confidential information after the relationship ends.

Vicarious liability: a broker may be liable for the acts of associated associates within the scope of employment; independent contractor status does not shield the broker from license-law supervision duties.

A licensee may not act as a single agent for both buyer and seller in the same transaction; dual representation is prohibited, and the parties must be advised to seek separate representation.

Agency disclosure must be in writing and signed; the notice must identify the type of relationship and the duties owed before the buyer or seller signs a listing or buyer brokerage agreement.

Florida listing agreements must be in writing, have a definite expiration date, and contain a definite commission; exclusive-right-of-sale, exclusive-agency, and open listings are the standard types.

FR/BAR contract is the standard residential resale form; it includes an effective date, closing date, inspection period, financing contingency, and title objection period.

A contract for deed (installment land contract) leaves legal title with the seller until final payment; the buyer receives equitable title and must record a memorandum to protect the interest.

An option gives the optionee the right, not the obligation, to buy; consideration is required, and the option must state a definite exercise period and price.

Deeds: general warranty (six covenants), special warranty, quitclaim, and bargain and sale; Florida deeds must be in writing, signed, delivered, and acknowledged for recording.

RESPA applies to federally related mortgage loans for 1-4 family residential property; the Loan Estimate must be delivered within 3 business days of application, and the Closing Disclosure at least 3 business days before consummation.

TILA/Regulation Z requires disclosure of APR, finance charge, amount financed, and total payments; rescission applies to certain refinances of a principal dwelling.

Florida documentary stamp tax on deeds is $0.70 per $100 of consideration (rounded up); Miami-Dade adds a surtax, and the documentary stamp tax on notes is $0.35 per $100.

Conventional loans are not government-insured; FHA requires mortgage insurance premium and lower credit thresholds; VA offers no down payment for eligible veterans; USDA targets rural areas.

Qualifying ratios: conventional guideline is 28/36 (housing/DTI), FHA 31/43, VA 41 residual income test; lenders may allow higher DTI with compensating factors.

LTV = loan amount / lesser of purchase price or appraised value; PMI is generally required above 80% LTV on conventional loans and must terminate at 78% LTV based on original schedule.

Three appraisal approaches: sales comparison (market) for residential, cost approach for special-use or new construction, income approach for investment property.

Highest and best use analysis determines the most profitable legal use; market value assumes a willing buyer and seller, both informed, with no undue stimulus.

Comparative market analysis is prepared by a licensee to price a listing; an appraisal is prepared by a state-certified or licensed appraiser and is required for federally related loans.

Loan fraud includes occupancy fraud, income falsification, appraisal inflation, and straw buyers; licensees must report suspected fraud and may not assist in misrepresentation.

Points are prepaid interest; one discount point equals 1% of the loan amount; buydowns reduce the effective rate for a defined period.

Escrow/impound accounts collect property taxes and insurance monthly; RESPA limits the cushion to 1/6 of annual disbursements.

Estates: fee simple absolute is the highest; life estate ends at death; leasehold estates are personal property; future interests include remainder and reversion.

Easement appurtenant benefits a dominant parcel; easement in gross benefits a person or entity; a license is revocable and not an interest in land.

Liens: specific vs. general, voluntary vs. involuntary, junior vs. senior; real property taxes and special assessments generally take priority over other liens.

Florida homestead protects up to one-half acre within a municipality or 160 acres outside; homestead exemption reduces assessed value, and the Save Our Homes cap limits annual increases to 3% or CPI.

Condominium: unit owners own the unit and share undivided interest in common elements; the association is governed by Ch. 718, F.S., with statutory reserves and milestone inspections for older buildings.

Cooperative: the corporation owns the real property, and the shareholder receives a proprietary lease; board approval of buyers is typical.

Planned communities (HOA) are governed by Ch. 720, F.S.; covenants run with the land and may be enforced by the association.

Zoning regulates use, height, density, and setbacks; nonconforming uses may continue but cannot be expanded; variances and special exceptions require local approval.

Environmental and coastal regulation: wetlands permitting under state and federal law, Environmental Resource Permits, and coastal construction control lines restrict building near the shoreline.

Commission: sale price × rate; net to seller = sale price − commission − payoff − closing costs − prorated items.

Proration uses a 365-day year for taxes and a 30-day month for rent; the seller is typically charged through the day of closing unless the contract states otherwise.

LTV = loan / value; down payment = price − loan; monthly P&I from amortization factor tables or mortgage formula.

Qualifying ratios: front-end = PITI / gross monthly income; back-end = total debt / gross monthly income.

Florida documentary stamp tax on deeds: $0.70 per $100 of consideration, rounded up to the next $100; Miami-Dade surtax applies to the portion above $100.

Documentary stamp tax on promissory notes: $0.35 per $100 of the note amount; intangible tax on mortgages was repealed and is no longer collected.

Settlement statement: debits to buyer include purchase price and closing costs; credits include earnest money, loan proceeds, and prorated rents; seller is the reverse.

Transfer of a homestead with a mortgage may require the seller to sign a sworn statement of no liens; FIRPTA withholding applies to foreign sellers at 15% of gross sales price.

Federal Fair Housing Act prohibits discrimination based on race, color, religion, sex, national origin, familial status, and disability; Florida adds age and marital status.

Blockbusting, steering, redlining, and discriminatory advertising are prohibited; advertising must not use words indicating a preference based on a protected class.

Reasonable accommodation for disability includes allowing service animals and modifications at the tenant's expense; a request must be evaluated individually.

Antitrust: price fixing, group boycotts, and market allocation are per se violations; brokers may not discuss commission rates or split agreements collectively.

Do-not-call: telemarketing to a number on the National Do Not Call Registry requires prior express written consent or an established business relationship; Florida adds its own registry.

Fraud requires a false statement of material fact, knowledge of falsity, intent to induce reliance, justifiable reliance, and damages; puffery is not actionable.

NAR Code of Ethics: Articles 1 (fiduciary duty), 2 (disclosure of material facts), 3 (cooperation), 10 (equal opportunity), 12 (truthful advertising), and 15 (no disparagement).

Florida Real Estate Commission may discipline for misrepresentation, failure to disclose, commingling, and failure to account; complaints are filed with DBPR and may be resolved by probable cause panel.