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Describe the conflict resolution process (M-A-L-E) for escrow disputes.
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Mediation (informal resolution), Arbitration (binding decision), Litigation (court procedures through Interpleader or Declaratory judgment), and Escrow Disbursement Order (EDO) from FREC.
What is the application process for individuals seeking a real estate broker license in Florida?
The application process includes providing a social security number (to check child support), mandatory fingerprinting, a criminal background check, and a summary of applicants for background check issues. Normal processing takes 30 days, special cases up to 90 days, and there are quarterly FRAC meetings.
What actions must a broker take when faced with an escrow account dispute?
Actions include Mediation (informal resolution), Arbitration (binding third-party resolution), Litigation (Interpleader for no financial interest, Declaratory judgment for financial claims), and filing for an Escrow Disbursement Order (EDO) with FREC.
What constitutes an eligible refund scenario under the Real Estate Recovery Fund?
Eligible scenarios include refunds from condo documents if not provided within the required timeframe, or if financing contingencies are unmet and the financing is denied.
What are the monthly reconciliation responsibilities for a real estate broker managing escrow accounts?
Brokers are responsible for monthly reconciliation of escrow accounts, ensuring accurate records, and avoiding commingling funds. They can hold up to $1,000 for sales accounts and $5,000 for property management accounts.
What are the consequences of unlicensed activity in real estate in Florida?
Unlicensed activity is a felony with penalties of up to $5,000 in fines and up to 5 years in jail. Dealing in rental listings without a license can result in a $1,000 fine and up to 1 year in jail.
What records must a real estate broker maintain, and for how long, to comply with regulations?
A broker must maintain records for 5 years, extending to 7 years if under litigation. Records include sign compliance, licenses, escrow accounts, and education updates.
Outline the potential penalties for violations of real estate licensing regulations in Florida.
Penalties include fines up to $5,000, license denials for incomplete applications, unpaid fees, uncorrected errors, failed exams, administrative actions (letters of reprimand, citations, probation, suspension, revocation).
What are the initial setup costs for opening a real estate office?
Initial setup costs include rent, legal fees, equipment, internet, office supplies, and joining the board of realtors.
What is required for license renewal for a real estate broker in Florida?
License renewal is required every 2 years. The first cycle (18-24 months) requires 45 hours of post-licensing education. Failing to meet these requirements results in the loss of the license.
Describe the different license statuses for real estate brokers in Florida.
Active (engaged in activities), Voluntarily Inactive (education up-to-date but not practicing), Involuntarily Inactive (missing CE or fines, up to 28 hours for reactivation), and Reinstatement under hardship situations.
Explain ‘A BAR SALE’ and its significance in real estate activities.
‘A BAR SALE’ stands for Advertising, Buying, Appraising, Renting, Selling, Auctioning, Leasing, Exchanging. It's a mnemonic for the functions and services provided by real estate agents, ensuring they operate within the scope of their license.
What are the requirements for setting up a real estate office in terms of business structure?
Allowed structures include Corporations, general/limited partnerships, LLCs, LLPs, and sole proprietorships. Structures like Joint ventures, corporation sole, business trusts, and cooperative/unincorporated associations are not allowed.
What does the ‘Do Not Call (DNC)’ regulation entail for real estate practitioners?
Calls are restricted between 8 AM - 9 PM. Exceptions include existing business relationships (18 months) and inquiries (3 months). Practitioners must comply with registry updates.
What is Florida's stance on reciprocity for real estate licenses?
Florida does not have reciprocity with any states except for armed service members and their spouses. For others, mutual recognition may apply with an additional 40-question state law exam.
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