text: UFDC Home | Help | RSS TABLE OF CONTENTS HIDE Front Cover Title Page Dedication Preface Table of Contents Instruction to land buyers I. Real estate license law II. History and objects of real... III. The commission, its jurisdiction,... IV. Registration requirements V. Details of registration and... VI. General regulations and... VII. Revocation and suspension... VIII. Additional grounds for suspension... IX. Procedure to deny, revoke or... X. Brokers and salesmen XI. Contracts XII. Real estate and listing... XIII. Titles, deeds, conveyances... XIV. Landlord and tenant;... XV. Accounts and settlements XVI. Miscellaneous XVII. Regulation of real estate... XVIII. Regulation of advertisi... Index Appendix I Appendix II Appendix III Title: Florida real estate handbook ALL VOLUMES CITATION THUMBNAILS PAGE IMAGE ZOOMABLE Full Citation STANDARD VIEW MARC VIEW Permanent Link: http://ufdc.ufl.edu/UF00089544/00001 Material Information Title: Florida real estate handbook Physical Description: 10 v. : ; 23 cm. Language: English Creator: Poe, Walter H., 1890-Florida Real Estate Commission Publisher: s.n. Place of Publication: Orlando etc Publication Date: 1958 Copyright Date: 1930 Subjects Subject: Real estate business -- Law and legislation -- Florida ( lcsh )Real estate agents -- Licenses -- Florida ( lcsh ) Notes Dates or Sequential Designation: 1st-10th ed. General Note: Editor: 1st-3d ed., W.H. Poe. Record Information Bibliographic ID: UF00089544 Volume ID: VID00001 Source Institution: University of Florida Holding Location: University of Florida Rights Management: All rights reserved by the source institution and holding location. Resource Identifier: oclc - 09088725 Related Items Succeeded by: Florida Real Estate Commission handbook Table of Contents Front Cover Front Cover 1 Front Cover 2 Title Page Page i Page ii Dedication Page iii Page iv Preface Page v Page vi Page vii Page viii Table of Contents Page ix Page x Page xi Page xii Page xiii Page xiv Page xv Page xvi Page xvii Page xviii Instruction to land buyers Page xix Page xx I. Real estate license law Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 32 Page 33 Page 34 Page 35 Page 36 Page 37 Page 38 Page 39 Page 40 Page 41 Page 42 II. History and objects of real estate license law Page 43 Page 44 Page 45 Page 46 Page 47 Page 48 III. The commission, its jurisdiction, powers and duties Page 49 Page 50 Page 51 Page 52 Page 53 Page 54 Page 55 Page 56 IV. Registration requirements Page 57 Page 58 Page 59 Page 60 Page 61 Page 62 Page 63 Page 64 Page 65 Page 66 Page 67 Page 68 Page 69 Page 70 V. Details of registration and certificates Page 71 Page 72 Page 73 Page 74 Page 75 Page 76 Page 77 Page 78 VI. General regulations and penalties Page 79 Page 80 Page 81 Page 82 Page 83 Page 84 Page 85 Page 86 Page 87 Page 88 Page 89 Page 90 Page 91 Page 92 Page 93 Page 94 Page 95 Page 96 Page 97 Page 98 Page 99 Page 100 VII. Revocation and suspension of registration for fraudulent conduct Page 101 Page 102 Page 103 Page 104 Page 105 Page 106 Page 107 Page 108 Page 109 Page 110 Page 111 Page 112 Page 113 Page 114 Page 115 Page 116 VIII. Additional grounds for suspension or revocation of registration Page 117 Page 118 Page 119 Page 120 Page 121 Page 122 Page 123 Page 124 IX. Procedure to deny, revoke or suspend registration Page 125 Page 126 Page 127 Page 128 Page 129 Page 130 Page 131 Page 132 Page 133 Page 134 Page 135 Page 136 Page 137 Page 138 Page 139 Page 140 Page 141 Page 142 Page 143 Page 144 Page 145 Page 146 Page 147 Page 148 Page 149 Page 150 Page 151 Page 152 X. Brokers and salesmen Page 153 Page 154 Page 155 Page 156 Page 157 Page 158 Page 159 Page 160 Page 161 Page 162 Page 163 Page 164 Page 165 Page 166 Page 167 Page 168 Page 169 Page 170 Page 171 Page 172 Page 173 Page 174 XI. Contracts Page 175 Page 176 Page 177 Page 178 Page 179 Page 180 Page 181 Page 182 Page 183 Page 184 Page 185 Page 186 Page 187 Page 188 Page 189 Page 190 Page 191 Page 192 Page 193 Page 194 XII. Real estate and listing contracts Page 195 Page 196 Page 197 Page 198 Page 199 Page 200 Page 201 Page 202 Page 203 Page 204 Page 205 Page 206 Page 207 Page 208 Page 209 Page 210 Page 211 Page 212 Page 213 Page 214 Page 215 Page 216 Page 217 Page 218 Page 219 Page 220 Page 221 Page 222 Page 223 Page 224 Page 225 Page 226 XIII. Titles, deeds, conveyances and mortgages Page 227 Page 228 Page 229 Page 230 Page 231 Page 232 Page 233 Page 234 Page 235 Page 236 Page 237 Page 238 Page 239 Page 240 Page 241 Page 242 Page 243 Page 244 Page 245 Page 246 Page 247 Page 248 Page 249 Page 250 XIV. Landlord and tenant; leases Page 251 Page 252 Page 253 Page 254 Page 255 Page 256 Page 257 Page 258 Page 259 Page 260 Page 261 Page 262 XV. Accounts and settlements Page 263 Page 264 Page 265 Page 266 Page 267 Page 268 Page 269 Page 270 Page 271 Page 272 Page 273 Page 274 Page 275 Page 276 Page 277 Page 278 XVI. Miscellaneous Page 279 Page 280 Page 281 Page 282 Page 283 Page 284 Page 285 Page 286 Page 287 Page 288 Page 289 Page 290 XVII. Regulation of real estate schools Page 291 Page 292 Page 293 Page 294 Page 295 Page 296 XVIII. Regulation of advertising Page 297 Page 298 Page 299 Page 300 Page 301 Page 302 Page 303 Page 304 Page 305 Page 306 Index Page 307 Page 308 Page 309 Page 310 Page 311 Page 312 Page 313 Page 314 Page 315 Page 316 Page 317 Page 318 Page 319 Page 320 Page 321 Page 322 Page 323 Page 324 Page 325 Page 326 Page 327 Page 328 Page 329 Page 330 Page 331 Page 332 Appendix I Page 333 Page 334 Page 335 Page 336 Page 337 Page 338 Page 339 Page 340 Page 341 Page 342 Page 343 Page 344 Page 345 Page 346 Page 347 Page 348 Page 349 Page 350 Page 351 Page 352 Page 353 Page 354 Page 355 Page 356 Page 357 Page 358 Page 359 Page 360 Page 361 Page 362 Page 363 Page 364 Page 365 Page 366 Page 367 Page 368 Page 369 Page 370 Page 371 Page 372 Page 373 Page 374 Page 375 Page 376 Page 377 Page 378 Page 379 Page 380 Page 381 Page 382 Page 383 Page 384 Page 385 Page 386 Appendix II Page 387 Page 388 Page 389 Page 390 Page 391 Page 392 Page 393 Page 394 Page 395 Page 396 Page 397 Page 398 Page 399 Page 400 Appendix III Page 401 Page 402 Page 403 Page 404 Page 405 Page 406 Page 407 Page 408 Page 409 Page 410 Full Text % -', .:' '',- ;:. %;,. .t - J.p, - .. .. - ., 4.. .....'. .".,.-. - ... t ! ... ,ft ... ., --.. 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'%-' 1:;e ,,--- =,?& `,,O% .--'11- I I:--. ef...;-- - j.I. 1, '., :.,:,e ..... .. - z.,. -.. . I %% i;: -... . .. .i ,, - n- I. %. .. .. 1.11 1, .. i '. .1 7 -?. ,. %, . . L ; .. ., f, 1. V. I .. ... .... .. . . .- I - ... . 1. % ... I . W I III.---.- ; ',- c .. -,,'. ,:,;,i: .. m . "%.F,. .. .'F .., R ,.-., :.: . : . .. .;.. ". I.. '. .r%.e;- -..:,...'%- .-y"'I ;-.- . z%. -.- .Z ,.'. IM ... i...,%"il.;l-'-,-,.9"7;%;;";,.",, ....-,..-.-, :, ,- .A- F. A M A - -6 *9 -. ;,,. ... I ., "--. .4 , ; ., %... ..% S.. ,. -,.... F ffl" ,.? N -.4 - .Ip-- %, -;,. I . g "* !k-,'-.'.`., '. -- '. .. -- -.I- -I.e-. I-I .I" ,- " ,;'. .11, 1..T, .* - s-,V , .,,,%,. W 0. g FLORIDA REAL ESTATE HANDBOOK FOURTH EDITION, 1958 HONORABLE LEROY COLLINS, GOVERNOR Published under the direction and by the authority of The Florida Real Estate Commission WALTER S. HARDIN, Chairman, Bradenton HENRY M. JERNIGAN, Vice Chairman, Ft. Pierce ROBERT T. BRINKLEY, Member, Tallahassee Executive Offices: Orlando Copyrighted 1958 By FLORIDA REAL ESTATE COMMISSION Printed in U.S.A. DEDICATION The three members of the Florida Real Estate Com- mission, Walter S. Hardin, Chairman, Henry M. Jernigan, Vice-Chairman, and Robert T. Brinkley, Member, take real pride in making available this fourth edition of the Florida Real Estate Handbook to members of the real estate profes- sion, and to those who aspire to similar status. We recognize, however, that a large measure of the responsibility for making this book possible and for formu- lating the ethical and legal principles herein contained rests with those who have preceded us in this high public office. Accordingly, we dedicate this book to them. WALTER S. HARDIN, Chairman HENRY M. JERNIGAN, Vice-Chairman ROBERT T. BRINKLEY, Member FORMER MEMBERS1 of FLORIDA REAL ESTATE COMMISSION WALTER W. ROSE . . . . . . . Orlando Thomas C. Hammond* . . . . . . . Tampa William R. Rannie* . . . . . . Jacksonville Charles P. Glover* . . . . . . . Tampa Francis S. Mason . . . . . . . Jacksonville H. W. BARR* .............. Orlando 0. P. SWOPE . . . . . . . . Orlando D. Earl W ilson . . . . . . . . . Miami R. M. Marler . . . . . . . Lakeland James R. Stockton . . . . . . . Jacksonville 0. A. Gane .. . . . . West Palm Beach J. L. Hearin . . . . . . . . Tampa F. Clyde Reese* . . . . . . . Jacksonville H. Bryant Merritt . . . . . . . Jacksonville John R. Wright . . . . . . . Lakeland FRANK A. LEE . . . . . . . Miami Beach LELAND JORDAN* . . . . . . Jacksonville W. H. FLANNERY . . . . . . St. Petersburg J. E. HOLLENBECK, SR. . . . .... West Palm Beach M. I. TAYLOR . . . . . . . Jacksonville 1 Capital letters indicates Chairman * Indicates deceased PREFACE This handbook was originally written by W. H. Poe, Orlando, Florida attorney and then General Counsel for the Florida Real Estate Commission, and published by the Florida Real Estate Commission in 1930, under the name "Elementary Law for Real Estate Brokers". In 1937, it was rewritten by the author, assisted by L. E. Broome, then Assistant Counsel of the Florida Real Estate Commission, and bore the title, "Principles and Practices of the Real Es- tate Business". In 1944, the third edition was written by the author W. H. Poe and published under its present title, "Florida Real Estate Handbook". The rewriting of this edition, the fourth, was initially begun by W. H. Poe in 1955. However, because of new laws passed by the 1956 special session and the 1957 regular session of the legislature, publication of this edition was delayed until 1958. Chapter XV and the index of this edition were prepared by Gaylord C. Kenyon, former General Coun- sel for the Commission. The revisions to the text of the book, the rules of the Commission and the index made neces- sary by the laws enacted at the 1956 and 1957 sessions of the legislature, as well as Chapters XVII and XVIII, were written by Benjamin T. Shuman, present General Counsel for the Commission. This 1958 edition, therefore is compiled from the rewriting of the book by its original author, the contribu- tions of Gaylord C. Kenyon, and the final revision and con- tributions of Benjamin T. Shuman. This edition includes for the first time appendices con- taining the rules and regulations adopted by the Florida Real Estate Commission and in effect on March 31, 1958. It is to be noted, however, that as the need arises, these rules will be amended and new ones added. While the text of the book relates almost entirely to law, any criticism which might be otherwise provoked from those who are to be examined should be dispelled, when considera- tion is given to the fact that every act of a real estate broker, or salesman, must be governed by the principles of law ap- plicable. The purpose of this book is not to teach methods of salesmanship, but rather to teach the standards of conduct and the fundamental principles of law by which every broker and salesman is to be guided in the conduct of his business transactions. There has been a definite avoidance of the use of strictly legal terms and phraseology in order to present a much clear- er understanding to those not trained in the field of law. Careful analysis of these principles of law will result in the conclusion, in most instances, that they merely apply those fundamental concepts laid in the "Ten Commandments" and "The Golden Rule" to transactions relating to real estate and the conduct of a real estate business. As a practical matter, members of the real estate profession cannot afford to have their lawyer constantly at their side to counsel and advise with them. They must, therefore, learn these fundamental principles to guide themselves and to recognize when the assistance of the lawyer is needed. There are a few specialties in the field, such as auction- eering, appraising and property management. But these fields are limited to a comparative few, so that it would be unfair to require all applicants to study and be examined on these specialties. Books on these fields are readily available. The prospective registrant must have a comprehensive knowledge of the material contained in this book in order to pass the examination given by the Commission and the regis- trant must have a comprehensive knowledge of the mate- rial to guide him daily in the conduct of his affairs. The enactment of the real estate license law in Florida was to accomplish a twofold objective, the elevation of the real estate profession and the protection of the public. The Supreme Court of this State recognized the high position which the real estate profession now occupies, when it stat- ed: "The real estate business has become a highly specialized one and the real estate broker is now the confidant of the public in much the same manner as the lawyer and the banker. His relation to the public exacts the highest degree of trust and confidence . ." It is hoped that this book published by the Florida Real Estate Commission will impart to its readers the knowledge and understanding of legal and ethical principles necessary for the real estate profession to continue to elevate itself for the protection of the public and to enable the practitioner in real estate to continue to enjoy the privilege conferred upon him by his registration certificate issued by the Florida Real Estate Commission. WALTER S. HARDIN, Chairman HENRY M. JERNIGAN, Vice-Chairman ROBERT T. BRINKLEY, Member TABLE OF CONTENTS SUBJECT INDEX BY SECTIONS Chap. Sec. I REAL 475.01 475.02 475.03 475.04 475.05 475.06 475.07 475.08 475.09 475.10 475.11 475.12 475.13 475.14 475.15 475.16 475.17 475.18 475.19 475.20 475.21 475.22 475.23 475.24 475.25 475.26 475.27 475.28 475.29 475.30 475.31 475.32 Subject ESTATE LICENSE LAW.- Definition of terms used in chapter. Florida real estate commission; terms; organization; quorum. Commission may delegate duties to individual member. Duty of commission to enforce this chapter, keep rec- ords and educate members of profession. Power of commission to enact by-laws, rules and regu- lations and decide questions of practice. Privileges and immunities of commission. Commission to designate place of executive offices. Compensation of members. Employees of commission. Seal. Money to be paid into real estate commission fund. Payment of expenses of commission. Registration and annual renewal thereof required; fees. Nonactive brokers. Annual registration of certificates of members of firm, etc., required. Application for registration. Qualifications of applicants for registration. Proceedings upon application for registration. Approved applicants to be examined by commission. Renewal of certificates annually. Registrant having applied for renewal entitled to con- tinue operating. Broker to maintain sign at entrance of office. Certificate to expire on change of address. Branch office; fees. Grounds for revocation or suspension. Information and notice in denial, revocation or suspen- sion proceedings. Appointment of examiner; taking of testimony. Rules of evidence. Jurisdiction of the commission. Answers, motions and defaults. Final orders. Subpoenas; issuance; service; Failure to answer; wit- ness fees. SUBJECT INDEX BY SECTIONS Chap. Sec. Subject 475.33 Right of defendant to subpoena witnesses. 475.34 Fees of court officials; payment by commission. 475.35 Appeals to circuit court. 475.36 Appeal to supreme court. 475.37 Effect of reversal of order of court or commission. 475.38 Payment of costs. 475.39 Right of commission to bring injunction or mandamus. 475.40 Notices. 475.41 Contracts of unregistered person for commissions in- valid. 475.42 Violations and penalties. 475.43 Presumptions. 475.44 Disqualification of members of the commission. 475.451 Schools Teaching Real Estate Practice 475.47 Publication of False or Misleading information; Promotion of Sales 475.48 Violation Penalty 475.49 Proceeding to rescind or Recover 475.50 Approved information as evidence 475.51 Promotion Publication; Filing with and approval by Commission; fees. 475.52 Injunction Proceedings 475.53 Conspiracy to violate 475.54 Exemption, Criminal and Civil provisions 475.55 Penalties; violations. II HISTORY AND OBJECTS OF REAL ESTATE LICENSE LAW. 2.01 Definitions. 2.02 History prior to regulation. 2.03 History of regulation. 2.04 Important features of the real estate license law. III THE COMMISSION, ITS JURISDICTION, POWERS AND DUTIES. 3.01 Creation and organization of the commission. 3.02 Chairman. 3:03 General duties and powers of the commission. 3:04 Specific duties and powers. 3.05 Offices. 3.06 Powers of investigation. 3.07 Power of commission to enact by-laws, rules and regu- lations, and decide questions of practice; certain rules. 3.08 Education. SUBJECT INDEX BY SECTIONS Chap. Sec. Subject IV REGISTRATION REQUIREMENTS. 4.01 Definitions. 4.02 The meaning of registration. 4.03 Rights conferred. 4.04 Form of certificate. 4.05 When certificate is void. 4.06 Effect of certificate. 4.07 Effective date of certificates. 4.08 Joint business relationships. 4.09 Corporations for profit. 4.10 Corporations not for profit. 4.11 Corporations sole. 4.12 Partnerships. 4.13 Limited partnerships. 4.14 Joint adventures. 4.15 Business trusts. 4.16 Unincorporated associations. 4.17 Trade and fictitious names. V DETAILS OF REGISTRATION AND CERTIFICATES. 5.01 Obtaining registration. 5.02 Application for individual registration. 5.03 Disposition of application. 5.04 Examinations 5.05 Nature of examination. 5.06 Procedure after examination. VI GENERAL REGULATIONS AND PENALTIES. 6.01 In general. 6.02 Office. 6.03 Branch offices. 6.04 Signs. 6.05 Changes of name, address and employer. 6.06 Advertising. 6.07 False promises. 6.08 Connections between real estate broker and inc4 tent commercial enterprises. 6.09 Deposits. 6.10 Deposits and escrows; statute. 6.11 Sale of out of state properties. 6.12 Penalties. VII REVOCATION AND SUSPENSION OF REGISTRATION FOR FRAUDULENT CONDUCT. 7.01 In general. 7.02 Fraud and dishonesty. 7.03 Relation of parties. onsis- Chap. Sec. 7.04 7.05 7.06 7.07 7.08 7.09 7.10 7.11 7.12 7.13 7.14 7.15 7.16 7.17 7.18 7.19 7.20 7.21 SUBJECT INDEX BY SECTIONS Subject Fiduciary relations. Implied fiduciary relations. Voluntary fiduciary relations. Duties arising under contract. Other contracts. Misrepresentation. Reckless statements. Concealment. Materiality of representations. Conclusion. Other means of fraud. Intent to violate statute. Conversion. Defense to charge of conversion. Culpable negligence. Conspiracy to defraud. Application of statute. Necessity of loss or damage. VIII ADDITIONAL GROUNDS FOR SUSPENSION OR REVO- CATION OF REGISTRATION. 8.01 In general. 8.02 Improperly obtaining registration. 8.03 Violation of statutes. 8.04 Criminal offenses. 8.05 Unlawful payment of a commission. 8.06 Mishandling of deposits. 8.07 Administrative regulations. 8.08 Giving legal opinions. 8.09 Operations by salesmen. 8.10 Broker employing unregistered salesmen. 8.11 Sales of out of state property. 8.12 Perjury or false affidavits. 8.13 Disobedience of subpoena; contempt. 8.14 Interference with enforcement of act; bribery. 8.15 Filing false papers for record. 8.16 Registration of trade name. IX PROCEDURE TO DENY, REVOKE OR SUSPEND REG- ISTRATION. 9.01 In general. 9.02 Alternative procedures. 9.03 Procedure governing applications for registration and summary denials. 9.04 Examinations. 9.05 Forms of orders and procedure thereon. 9.06 Scope of discussion of formal proceedings. 0 SUBJECT INDEX BY SECTIONS Chap. Sec. 9.07 9.08 9.09 9.10 9.11 9.12 9.13 9.14 9.15 9.16 9.17 9.18 9.19 9.20 9.21 9.22 9.22 Subject Commencement of formal proceedings; information and notice. Answer and motion to quash. Sufficiency and form of answer. Procedure on motion to quash. Motion to quash; appeal and supersedeas. Defaults. Examiners. Final orders. Appeals from final orders. Review of Circuit Court order. Effect of orders and judgment. Termination of suspension. Subpeonas. Civil and criminal proceedings. Extraordinary proceedings. Depositions. Notices. X BROKERS AND SALESMEN. 10.01 Brokers. 10.02 Salesmen. 10.03 Relationship of broker and principal. 10.04 Employment and necessity therefore. 10.05 Nature of employment. 10.06 Duration and termination of listing. 10.07 Breach of listing contract. 10.08 Authority to make representations. 10.09 Authority to fix terms or bind principal. 10.10 Duty to deal fairly. 10.11 Duty to execute principal's orders. 10.12 Personal interest of broker. 10.13 Acting for person adverse to principal. 10.14 Authority to appoint sub-agent. 10.15 Compensation; in general. 10.16 Ratification of unauthorized acts. 10.17 Necessity of license or registration. 10.18 Abandonment of employment. 10.19 Transactions effected without aid of a broker. 10.20 Performance by broker. 10.21 Broker as procuring cause of sale. 10.22 Options. 10.23 Failure to complete transaction. 10.24 Forfeiture of commission by broker. 10.25 Time commission is due. 10.26 Default of purchaser. 10.27 Readiness, ability and willingness of customer. 10.28 Lien of broker. XIII SUBJECT INDEX BY SECTIONS Chap. Sec. Subject 10.29 Duty of broker to customer. 10.30 Unauthorized or wrongful acts. 10.31 Representations or fraud by the broker. 10.32 Right of broker against third person. 10.33 Recovery of deposits from broker. XI CONTRACTS. 1. Definitions and Distinctions. 11.01 Scope. 11.02 Definitions. 11.03 Essentials of a contract. 11.04 Contracts under seal. 11.05 Parol contracts. 11.06 Express and implied contracts. 11.07 Executed and executory contracts. 11.08 Bilateral and unilateral contracts. 2. Making the Contract. 11.09 Generally. 11.10 Offer and acceptance. 11.11 Withdrawal of offer. 11.12 Termination of offer. 11.13 Essentials of offer and acceptance. 11.14 Consideration. 11.15 Parties. 11.16 Mistake, fraud and duress. 11.17 Legality of obligations. 11.18 Writing; Statute of frauds. 11.19 Construction. 11.20 Statute of limitations. 11.21 Assignment of contract. 3. Termination of Contracts. 11.22 Manner of termination. 4. Enforcement of Contracts. 11.23 Generally. 11.24 Action for damages. 11.25 Relief in equity. 11.26 Declaratory judgments. XII REAL ESTATE AND LISTING CONTRACTS. 12.01 In general. 12.02 Manner of employment. 12.03 Listings and their nature. 12.04 Compensation implied from listing. 12.05 Written listing desirable. 12.06 Open listing. 12.07 Exclusive listing. 12.08 Right of compensation. XIV SUBJECT INDEX BY SECTIONS Chap. Sec. Subject 12.09 Net listing. 12.10 Options as exclusive listing. 12.11 Implied listings. 12.12 Forfeiture of commission. 12.13 Contests between brokers. 12.14 Commission payable only to successful broker. 12.15 Practical solution. 12.16 Termination by lapse of time. 12.17 Termination by expiration of a reasonable time. 12.18 Factors governing reasonable time. 12.19 Lapse of time. 12.20 Termination by revocation. 12.21 Good faith by principal. 12.22 Termination by abandonment. 12.23 Termination by renunciation. 12.24 Termination by breach. 12.25 Examples of breach. 12.26 Breach of good faith by principal. 12.27 Breach of exclusive listing. 12.28 Right of owner to make sale. 12.29 Breach by broker. 12.30 Right of broker to draw contracts. 12.31 Contracts in real estate practice. 12.32 Options defined. 12.33 Requisites of contracts. 12.84 Option and sale contracts. 12.35 Statute of frauds. 12.36 Memorandum of terms. 12.37 Requirements of statute of frauds. 12.38 Necessity for complete terms. 12.39 Remedies for breach. 12.40 Example of use of precise terms. 12.41 Sale of encumbered property. 12.42 Requirements as to consideration. 12.43 Formal requirements of contract. 12.44 Letters and telegrams. 12:45 Other requisites. 12.46 Description of property. 12.47 Description of property; details. 12.48 Description of property; government land surveys. XIII TITLES, DEEDS, CONVEYANCES AND MORTGAGES. 13.01 Definitions. 13.02 Scope of chapter. 13.03 Fee simple estate. 13.04 Estates carved from fee simple. 13.05 Estates for years. SUBJECT INDEX BY SECTIONS Chap. Sec. Subject 13.06 Estates with more than one owner. 13.07 Tenancies in common. 13.08 Estates by the entireties. 13.09 Homesteads. 13.10 Dower at common law. 13.11 Dower in Florida. 13.12 Election by widow. 13.13 Debts and taxes. 13.14 Dower in equitable estates. 13.15 Inchoate right of dower. 13.16 No inchoate right of dower in mortgage 13.17 Deeds. 13.18 General warranty deeds. 13.19 Bargain and sale deeds. 13.20 Special warranty deeds. 13.21 Quit claim deeds. 13.22 Execution and acknowledgment. 13.23 Liens. 13.24 Materialmen's and laborers' liens. 13.25 Vendor's lien. 13.26 Mortgages. 13.27 Fixtures and personal property. 13.28 Release clauses. 13.29 Separate defeasance. 13.30 Enforcement of mortgage. 13.31 Redemption. 13.32 Incidental conditions in mortgages. 13.33 Title by adverse possession. 13.34 Tax titles. 13.35 Title as affected by record, notice or e 13.36 Constructive notice. 13.37 Title by estoppel. 13.88 Duty to advise client to record. 13.39 Duty of broker respecting contracts a 13.40 Abstracts and insurance of titles. XIV LANDLORD AND TENANT; LEASES. 14.01 Generally. 14.02 Leases. 14.03 Tenancies at will. 14.04 Tenancies at sufferance. 14.05 Common law tenancies at sufferance. 14.06 Tenancies at will, termination. 14.07 Tenancy for years. 14.08 Assignments. 14.09 Estates less than freehold. 14.10 Statute of frauds. ge. stoppel. nd conv XVI 'eyances. 0 Chap. Sec. 14.11 14.12 14.18 14.14 14.15 14.16 14.17 SUBJECT INDEX BY SECTIONS Subject Form. Agreement to repair. Other conditions and covenants. Recording of lease. Liens in general. Exemptions. Remedies. XV ACCOUNTS AND SETTLEMENTS. 15.01 Accounting. 15.02 General requirements. 15.03 State stamp taxes on deeds. 15.04 Federal stamp taxes on deeds. 15.05 Stamp taxes on contracts, notes and mortgages. 15.06 Intangible taxes on mortgages. 15.07 Intangible taxes generally. 15.08 Official fees. 15.09 The broker's commission. 15.10 Mortgages and liens. 15.11 Property taxes. 15.12 Special assessments. 15.13 Insurance. 15.14 Income and inheritance taxes. 15.15 Abtsracts, opinions and titles. 15.16 Escrows. XVI MISCELLANEOUS. 16.01 Scope of chapter. 16.02 Code of ethics; professional relations. 16.03 Code of ethics; relations to clients. 16.04 Code of ethics; relations to customers and public. 16.05 For sale signs. 16.06 Proper objective of salesmanship. 16.07 Restraint in salesmanship. 16.08 Knowledge of property offered. 16.09 Improper sales methods. 16.10 Relations with the public. 16.11 Local requirements. 16.12 Questions of discrimination. 16.13 Appraising. 16.14 Auctions and auctioneers. XVII REGULATION OF REAL ESTATE SCHOOLS 17.01 General. 17.02 Who must be registered. 17.03 Qualifications for permits. 17.04 Form of application. XVII SUBJECT INDEX BY SECTIONS 17.05 Effect of permit. 17.06 Denial, Suspension and Revocation. 17.07 Miscellaneous provisions of law. XVIII REGULATION OF ADVERTISING 18.01 General. 18.02 Purpose of the law. 18.03 Persons affected by the Act. 18.04 Civil remedies. 18.05 Advertising required to be filed. 18.06 Approval and disapproval. 18.07 False or misleading statements. 18.08 Persons responsible under the act. 18.09 Proceedings under the act. APPENDIX I Rules and Regulations of the Florida Real Estate Commission relating to sections 475.01-475.44, Florida Statutes. APPENDIX II Rules and regulations pertaining to Chapter 31401, Laws of Florida, 1956 Special Session, Section 475.47-475.55, Florida Statutes relating to advertising. APPENDIX III Rules and Regulations of the Florida Real Estate Commission pertaining to Chapter 57-817, Laws of Florida, 1957, section 475.451, Florida Statutes, re- lating to Schools teaching Real Estate Practice. XVIII INSTRUCTION TO LAND BUYERS FIRST see the land which thou indend'st to buy Within the sellers' title clearly lye, And that no woman to it doth lay claimed By dowry, joynture, or some other name That may incumber. Know if bond or fee The Tenure stand, and that from each feoffee It be released, that th' sellers be soe old That he may lawful sell, thou lawful hold. Have special care that if not mortgag'd lye, Nor be entailed upon posterity. Then if it stand in statute bound or noe, Be well advised what quitt rent out must goe, What customer service hath been done of old By those who formerly the same did hold. And if a wedded woman put to sale Deal not with her unless she bring her male, For she doth under covert barren goe, Although sometimes some traffique soe (we know) Thy bargain made and all this be done, Have special care to make thy charter run To thee, thy heirs, executors assigns, For that beyond their life securely binds, These things foreknown and done, you may prevent Those things rash buyers many times repent, And yet when you have done all you can, If youle be sure, deal with an honest man. Lines over 300 years old, copied from the roll in the Manor Court Office, Wakefield, England. XIX CHAPTER I REAL ESTATE LICENSE LAW AND OTHER APPLICABLE STATUTES 475.01 Definition of terms used in chapter. 475.02 Florida real estate commission; terms; organization; quorum. 475.03 Commission may delegate duties to individual member. 475.04 Duty of commission to enforce this chapter, keep records and educate members of profession. 475.05 Power of commission to enact by-laws, rules and regulations and decide questions of practice. 475.06 Privileges and immunities of commission. 475.07 Commission to designate place of executive offices. 475.08 Compensation of members. 475.09 Employees of commission. 475.10 Seal. 475.11 Money to be paid into the state agencies fund. 475.12 Payment of expenses of commission. 475.13 Registration and annual renewal thereof required; fees. 475.14 Nonactive brokers. 475.15 Annual registration of certificate of members of firm, etc., required. 475.16 Application for registration. 475.17 Qualifications of applicants for registration. 475.18 Proceedings upon application for registration. 475.19 Approved applicants to be examined by commission. 475.20 Renewal of certificates annually. 475.21 Registrant having applied for renewal entitled to continue operating. 475.22 Broker to maintain sign at entrance of office. 475.23 Certificate to expire on change of address. 475.24 Branch office; fees. 475.25 Grounds for revocation or suspension. 475.26 Information and notice in denial, revocation or suspension proceedings. 475.27 Appointment of examiner; taking of testimony. 475.28 Rules of evidence. 475.29 Jurisdiction of the commission. 475.30 Answers, motions and defaults. 475.31 Final orders. 475.32 Subpoenas; issuance; service; failure to answer; witness fees. 475.33 Right of defendant to subpoena witnesses. 475.34 Fees of court officials; payment by commission. 475.35 Appeals to circuit court. 475.36 Appeal to supreme court. 475.37 Effect of reversal of order of court or commission. 475.38 Payment of costs. REAL ESTATE LICENSE LAW AND OTHER APPLICABLE STATUTES 475.39 Right of commission to bring injunction or mandamus. 475.40 Notices. 475.41 Contracts of unregistered person for commissions invalid. 475.42 Violations and penalties. 475.43 Presumptions. 475.44 Disqualification of members of the commission. 475.451 Schools teaching real estate practice. 475.47 Publication of false or misleading information; promotion of sales. 475.48 Violation 475.47, penalty. 475.49 Proceeding to rescind or recover. 475.50 Approved information as evidence. 475.51 Promotive publication; filing with and approval by commis- sion; fees. 475.52 Injunctive proceedings. 475.53 Conspiracy to violate. 475.54 Exemption, criminal and civil provisions. 475.55 Penalties; violations, 475.47-475.54. 475.01 Definition of terms used in chapter.- (1) This chapter may be referred to in any legal pro- ceeding as the "Real Estate License Law." (2) Every person who shall, in this state, for another, and for a compensation or valuable consideration directly or indirectly paid or promised, expressly or impliedly, or with an intent to collect or receive a compensation or valu- able consideration therefore, appraise, auction, sell, exchange, buy or rent, or offer, attempt or agree to appraise, auction or negotiate the sale, exchange, purchase or rental of any real property, or any interest in or concerning the same, in- cluding mineral rights or leases; or who shall advertise or hold out to the public by any oral or printed solicitation or representation that such person is engaged in the business of appraising, auctioning, buying, selling, exchanging, leas- ing or renting real estate, or interests therein, including min- eral rights or leases, of others; and every person who shall take any part in the procuring of sellers, purchasers, lessors or lessees of the real property, or interests therein, includ- ing mineral rights or leases, of another; or who shall direct or assist in the procuring of prospects, or the negotiation or closing of any transaction which does, or is calculated to, result in a sale, exchange, or leasing thereof, and who shall receive, expect, or be promised any compensation or valu- able consideration, directly or indirectly therefore; and all REAL ESTATE LICENSE LAW AND OTHER APPLICABLE STATUTES persons who are members of partnerships or officers or di- rectors of corporations engaged in performing any of the aforesaid acts or services; each and every such person shall be deemed and held to be a "real estate broker" or a "real estate salesman," as hereinafter classified, unless said per- son when performing the act or acts herein specified shall be acting as an attorney-in-fact for the purpose of the execu- tion of contracts or conveyances only, or as an attorney-at- law within the scope of his duties as such, or when acting as the administrator, executor, receiver, trustee, or master un- der or by virtue of an appointment by will or by order of a court of competent jurisdiction, or as trustee under a deed of trust, or under a trust agreement, the ultimate purpose and intent whereof shall be charitable, philanthropic, or pro- viding for those having a natural right to the bounty of the donor or trustor; nor shall the term broker or salesman be applied to a person who shall deal with property in which he is a part owner, unless said person shall receive a larger share of the proceeds or profits from the transaction than his proportional investment therein would otherwise justify, such excess share being directly or indirectly the result of the service of buying, selling, exchanging or leasing said property; nor shall said terms be applied to one officer of every corporation engaged in the sale of its own properties who shall be its president unless otherwise provided in its charter or by-laws, if said corporation shall not otherwise be classed as a real estate broker or a salesman. (3) Every person who comes within the meaning of the preceding subsection, and shall not be within the exceptions named, and whose business policies and acts are free from the direction, control and management of another person, and all members of a partnership, and all officers and direc- tors of a corporation, which partnership or corporation is de- fined by said subsection to be a real estate broker, shall be deemed and held to be operating as real estate brokers; and every other person who shall come within the terms "real estate broker" or "real estate salesman," as defined in the preceding subsection, shall be deemed and held to be oper- ating as real estate salesmen. (4) "Registration" shall consist of the placing and keep- ing of the name and business address, and if of a salesman, REAL ESTATE LICENSE LAW AND OTHER APPLICABLE STATUTES the name and business address of the employer also, upon the list of brokers and salesmen in the offices of the Florida real estate commission, with the appropriate designation as "broker" or "salesman." Said "registration list" shall be kept in books, or in files, as may be deemed expedient by the com- mission. Registration shall be in force for a period of six months after the expiration of the last certificate issued, or after the termination of any period of suspension, and no longer; but registration alone shall not entitle the registrant to operate as a broker or salesman. (5) A "registrant" is a person whose name and business address, and in case of a salesman, the name and business address of the employer also, has been placed, and lawfully remains, on said registration list, and said term shall not in- clude any person who has not applied for a renewal certifi- cate within the aforesaid period of six months. (6) The "license year" shall be the fiscal year ending at midnight, the thirtieth day of September of each year. (7) A "registered broker" shall be any person who is a registrant under this chapter and who has been classified as a real estate broker. All other registrants shall be "registered salesmen." (8) The word "Commission," when used in this chapter shall refer to the Florida real estate commission, except when obviously used in some other sense. (9) Where the phrase "members, officers and directors of a partnership or corporation," or similar phrase, is used in this chapter, the word "members" shall be deemed to refer to partnerships only, and not to stockholders in a corporation. (10) The words "certificate" or "registration certificate" shall be deemed to mean a written instrument, prepared ac- cording to the regulations and bearing the seal of the com- mission, which shall be issued to every broker or salesman as soon as registrations is granted and renewed annually thereafter as long as renewals thereof shall be granted, and which shall be prima facie evidence that the holder is a registrant, and that the registration fee for the license year expiring next after the date of issuance which shall be in- dorsed thereon, has been paid. Such certificate, except non- active certificate, shall authorize the holder to act as a broker or salesman until the date of expiration, or until the REAL ESTATE LICENSE LAW AND OTHER APPLICABLE STATUTES registration is revoked or suspended. (11) The term "real estate" or "real property" used in subsection (2), shall include leaseholds, assignments of lease- holds and subleaseholds thereof, as well as any and every in- terest or estate in land. History.-1, ch. 12223, 1927; CGL 4062; sub (11) comp. 1, ch. 29983, 1955. cf.-1.01(3) "Person" defined. 475.02 Florida real estate commission; terms; organi- zation; quorum.- There is created the Florida real estate commission, to consist of three persons, resident citizens of the state, to be appointed by the governor, each of whose vocation for at least ten years prior to his appointment shall have been that of real estate broker. The members of the commission shall serve until the ex- piration of the term for which they shall have been appoint- ed and until their successors shall have qualified. The term of office shall be three years; that of one member shall expire each year, and upon the death, resignation or removal of a member, his successor shall be appointed for the unexpired portion of his term. As the new member is appointed each year, the commission shall reorganize and select a chairman from its number, who shall be the executive officer of said commission, and a secretary. Two members of the commis- sion shall constitute a quorum to do business. History.-2, 3, ch. 12223, 1927; CGL 4063, 4064. 475.03 Commission may delegate duties to individual member.- Any of the duties and powers of the commission, except the actual determination of informations, and the passage and promulgation of rules, regulations and by-laws may be delegated, by resolution, to any member; but the chairman may exercise such duties and powers without such resolution. History.-4, ch. 12223, 1927; CGL 4065. 475.04 Duty of commission to enforce this chapter, keep records and educate members of profes- sion.- The commission may examine witnesses and administer oaths, and shall investigate persons doing a real estate busi- ness in this state to ascertain if they are violating any of the REAL ESTATE LICENSE LAW AND OTHER APPLICABLE STATUTES provisions of this chapter, and keep such records and min- utes as shall be necessary to an orderly dispatch of business. The commission shall foster the education of real estate bro- kers and salesmen concerning the ethical, legal and business principles which should govern their conduct. History.-5, ch. 12223, 1927; CGL 4066. 475.05 Power of commission to enact by-laws, rules and regulations and decide questions of practice.- The commission may enact by-laws and regulations for its own government, and rules and regulations in the exer- cise of its powers, not in conflict with the constitution and laws of the United States or of this state, and amend the same at its pleasure. The commission may decide questions of practice arising in the trial of information, having regard to this chapter and the rules and regulations then in force. Printed copies of rules and regulations, or written copies under the seal of the commission, shall be prima facie evi- dence of their existence and substance, and the courts shall judicially notice such rules and regulations. History.-6, ch. 12223, 1927; CGL 4067. 475.06 Privileges and immunities of commission.- The members of the commission are entitled to the same protection and immunities as are other judicial officers, and the acts of the agents and employees of the commission, act- ing within the scope of their authority and employment, shall not be called in question except by the commission. Its papers, documents, reports or evidence shall not be subject to subpoena, without its consent, until after the same shall have been published at a hearing held under this chapter unless, after notice to the commission, and hearing, the court shall determine that the commission or the accused will not be unreasonably hindered or embarrassed. History.-7, ch. 12223, 1927; CGL 4068. 475.07 Commission to designate place of executive offices.- Executive offices shall be established and maintained at a place designated by the commission, which designated place may be changed in the discretion of the commission. History.-8, ch. 12223, 1927; CGL 4069. REAL ESTATE LICENSE LAW AND OTHER APPLICABLE STATUTES 475.08 Compensation of members.- The members of the board shall receive ten dollars per day, or any part of a day, while attending official board meet- ings, not to exceed twelve meetings per year, and shall re- ceive per diem and mileage as provided in 112.061, from place of their residence to place of meeting and return. History.-9, ch. 12223, 1927; CGL 4070; am. 24, ch. 28215, 1953; 24, ch. 51-1. 475.09 Employees of commission.- The commission shall employ, and at its pleasure dis- charge, a secretary and such attorneys, inspectors, clerks and assistants as shall be deemed necessary, and shall outline their duties and fix their compensation. History.-10, ch. 12223, 1927; CGL 4071. 475.10 Seal.- The commission shall adopt a seal by which it shall au- thenticate its proceedings. Copies of the proceedings, rec- ords and acts of the commission, and certificates purporting to relate the facts concerning such proceedings, records, and acts, signed by the chairman and authenticated by said seal shall be prima facie evidence thereof in all the courts of this state. History.-11, ch. 12223, 1927; CGL 4072. 475.11 Money to be paid into the state agencies fund.- The commission shall pay into the state treasury, to be credited to the state agencies fund, on or before the fifteenth day of each month, all moneys received during the previous month. All fees prescribed by this chapter shall be paid to the commission in the first instance. History.-12, ch. 12223, 1927; CGL 4073; am. 25, ch. 28215, 1953. cf.-215.37 Minor regulatory boards financed from fees collected. 475.12 Payment of expenses of commission.- All expenses incurred by the commission in the adminis- tration of the provisions of this chapter shall be paid there- for upon warrants of the comptroller, when vouchers there- for are exhibited having been approved by the commission. History.-13, ch. 12223, 1927; CGL 4074; 114, ch. 26869, 1951; am. 26, ch. 28215, 1953. 475.13 Registration and annual renewal thereof re- quired; fees.- Every person deemed and held to be a real estate broker or real estate salesman under the terms of this chapter shall REAL ESTATE LICENSE LAW AND OTHER APPLICABLE STATUTES be required to register with the commission, and to secure a registration certificate annually. The fee for original appli- cation for registration of real estate brokers shall be twenty- five dollars each, and the annual renewal of registration cer- tificates of brokers shall be ten dollars each; for registration and annual renewal certificates of nonactive brokers, one dollar each; for original application for registration of real estate salesmen, the fee shall be fifteen dollars each, and for annual renewal of registration certificates of salesmen, the fee shall be five dollars each. No collector or county judge shall issue any real estate occupational license except upon presentation of an active registration certificate for that year. No fee shall be returned to an applicant after the application shall be received by the commission. History.-14, ch. 12223, 1927; CGL 4075; 2, ch. 29983, 1955. cf.-455.03 Dispensing with examination of veterans. 475.14 Nonactive brokers.- Any member of a partnership or officer or director of a cor- poration who does not desire to do, or perform, any of the acts or services enumerated in 475.01(2), and any registered broker who is a resident of Florida who desires to preserve his registration during a period while not engaged as a bro- ker, may apply for and receive a certificate as a nonactive broker so long as he shall continue to be a resident of the state. All other certificates shall be deemed active. History.-15, ch. 12223, 1927; CGL 4076; 3, ch. 29983, 1955. 475.15 Annual registration of certificates of members of firm, etc., required.- Every partnership and corporation required to be regis- tered shall register, and annually renew the certificates of its members, officers and directors; and the registration of such partnership or corporation shall be suspended auto- maticallv during any period of time that certificates of all of its members, officers or directors shall not be in force. History.-16, ch. 12223, 1927; CGL 4077. 475.16 Application for registration.- Every person shall make application for registration in the form required by the rules of the commission, and shall an- swer such questions and furnish such supporting evidence as may be required by the commission, touching his quali- fications. History.-17, ch. 12223, 1927; CGL 4078. REAL ESTATE LICENSE LAW AND OTHER APPLICABLE STATUTES 475.17 Qualifications of applicants for registration.- (1) An applicant for registration who is a natural person shall be required to make it appear that he is twenty-one years of age, a citizen of the United States, honest, truthful, trust- worthy, of good character, and that he bears a good repu- tation for fair dealing. An applicant for an active broker's registration or a salesman's registration, shall be required to make it appear that he is competent and qualified to make real estate transactions and conduct negotiations therefore, with safety to investors and to those with whom he may undertake a relationship of trust and confidence. An appli- cant for a salesman's registration shall show that he is a bona fide resident of the state, and an applicant for an active bro- ker's registration shall show that he has been such a resident for one year immediately prior to the filing of the applica- tion. If it shall be made to appear that the applicant has been denied registration or a license or has been disbarred, or his registration or license has been revoked or suspended, by this or any other state or nation, or possession or district of the United States, or any court or lawful agency thereof, to practice or conduct any regulated profession, business or vocation, because of any conduct or practices which would have warranted a like result under this chapter, or that the applicant has been guilty of conduct or practices in this state or elsewhere, which would have been grounds for revoking or suspending registration under this chapter had the appli- cant then been registered, the applicant shall be deemed not to be qualified, unless, because of lapse of time and subse- quent good conduct and reputation, or other reason deemed sufficient it shall appear to the commission that the interest of the public and investors will not likely be endangered by the granting of registration. The foregoing qualifications ap- ply to members of partnerships and officers and directors of corporations. A corporate applicant shall have been organ- ized under, or be legally qualified to do business in the state. (2) No person shall be registered as a real estate salesman unless, in addition to the other requirements of law, he shall REAL ESTATE LICENSE LAW AND OTHER APPLICABLE STATUTES make it appear that he is and has been for at least six months next prior to the filing of his application, a bona fide resident of Florida; provided, however, this subsection shall not apply to an applicant for registration as a real estate salesman who shall make it appear that he has lawfully operated ex- clusively as a real estate broker or salesman in another state, requiring registration of real estate brokers or salesmen, for at least two years next prior to filing his application in Florida. (3) No person shall be registered as a real estate broker unless, in addition to the other requirements of law, he shall make it appear that he has served an apprenticeship as a registered real estate salesman, with and under the instruc- tions and guidance of a registered real estate broker of the state for at least twelve consecutive months next prior to the filing of his application for registration as a real estate broker. The intent of the legislature in enacting this law is to elevate the profession of a real estate broker for the protection of the public. The apprenticeship provided herein shall not be taken to mean that the salesman be required to attend to the duties of his employment as a real estate salesman to the ex- clusion of any other employment, nor shall the twelve con- secutive months of apprenticeship provided include periods of illness, regular vacations, business trips necessitating ab- sence and emergencies. Provided, that every applicant for registration as a real estate broker at the end of his appren- ticeship, shall be required to furnish an affidavit to the Florida real estate commission, on a form provided for that purpose, that he has invested a part of his time as a real estate salesman under a real estate broker, and the broker shall be required to furnish an affidavit to the commission, on a form provided for that purpose, that the salesman has satis- factorily completed his apprenticeship, that he is qualified, and has the ability and integrity to be a real estate broker. History.-18, ch. 12223, 1927; CGL 4079; am. 1, ch. 24090, 1947; (2) (3) N by 1, ch. 57-244. 475.18 Proceedings upon application for registration.- If the commission shall be of the opinion that an applicant for registration is qualified, the application shall be approved. If the applicant shall fail to pass the examination prescribed REAL ESTATE LICENSE LAW AND OTHER APPLICABLE STATUTES by the commission the commission may, in its discretion, permit a second examination, and, if the applicant shall again fail, the application shall be denied, without preju- dice to the filing of another application. If, from the applica- tion filed, or the replies of persons, designated by the appli- cant, to inquiries by the commission concerning his qualifi- cations, or from their failure to reply thereto fully, or from answers to inquiries, or the failure to fully answer inquiries, pertinent to his qualifications, propounded to the applicant by the commission, it shall not affirmatively appear that the applicant possesses the necessary residence, character and general competence and qualifications required by this chap- ter, the commission shall permit reasonable amendments, if offered by the applicant, and if the applicant shall not finally make it affirmatively appear that he is so qualified, the com- mission may finally deny the application with prejudice. If the application and supporting documents on their face show that the applicant is qualified, but from complaints, or in- formation received, or from investigation, it shall appear to the commission or chairman, at any time before the initial certificate is delivered, that there may be cause to deny reg- istration, the commission or chairman may order an infor- mation to be filed, notice served, and hearings before an examiner and the commission held, as hereinafter provided. If an applicant shall be denied registration, except for fail- ure to pass an examination, or by an order giving leave to file a new application, he shall not be permitted to file a new application unless and until the commission shall, in its dis- cretion, and upon petition of the applicant, grant leave to file such new application. No application shall be granted if it shall appear that the applicant has acted, or attempted to act, or has held himself out as entitled to act, as a real estate broker or salesman, in violation of this chapter, dur- ing the period of one year next prior to the filing of said ap- plication. The commission shall have a broad discretion, in the granting or denial of an application, in view of the diffi- culty in securing definite and legal proof of bad reputation or of securing satisfactory proof of specific instances of fraudulent or unethical conduct, in the limited time after an application is filed and before a decision should normally be made, and particularly when the applicant has been beyond REAL ESTATE LICENSE LAW AND OTHER APPLICABLE STATUTES the limits of the state until a short time before filing an ap- plication. The denial of an application shall not be reversed except upon a clear showing of an abuse of discretion or of an arbitrary and capricious ruling. History.-19, ch. 12223, 1927; CGL 4080; am. 2, ch. 24090, 1947; (2) N by 2, ch. 57-244. 475.19 Approved applicants to be examined by com- mission.- When the application for registration of any natural per- son, not being then registered, shall be approved, the appli- cant shall be required to appear in person, at a time and place to be designated by the commission, and answer ques- tions touching his qualifications according to the provisions of this chapter. The operation of this section may be post- poned by the commission until such time as it may be prac- ticable to put it in force. History.-20, ch. 12223, 1927; CGL 4081. 475.20 Renewal of certificates annually.- Every certificate shall expire at the end of the license year. Certificates for the next succeeding year shall be issued upon written request, in the form prescribed by the commission, accompanied by the required fee, when such request shall be made while registration is in force. When made in proper form, such request shall not be denied or unreasonably de- layed. History.-21, ch. 12223, 1927; CGL 4082. cf.-475.01 (6) Definition of "license year." 475.21 Registrant having applied for renewal entitled to continue operating.- Registrants who have made request for renewal, and paid the fee therefore, shall be entitled to continue to act as bro- kers or salesmen, unless under suspension. History.-22, ch. 12223, 1927; CGL 4083. 475.22 Broker to maintain sign at entrance of office.- Every registered broker shall maintain a sign on or about the entrance of his principal office and all branch offices, which sign shall be easily observed and read by any person about to enter such office, and shall be of such form and min- imum dimensions as shall be prescribed by the commission. History.-23, ch. 12223, 1927; CGL 4084. REAL ESTATE LICENSE LAW AND OTHER APPLICABLE STATUTES 475.23 Certificate to expire on change of address.- A registration certificate shall cease to be in force when- ever a broker changes his business address, or a salesman changes employer. In such cases, the old certificate shall be surrendered, or accounted for, and a new certificate shall be issued, upon request therefore on a form provided by the commission, and the fee for the issuance of the new certifi- cate shall be five dollars. History.-24, ch. 12223, 1927; CGL 4085; 4, ch. 29983, 1955. 475.24 Branch office; fees.- Whenever any applicant or registrant desires to conduct business at some other location, either in the same or dif- ferent city, town, or county than that registered, such other place of business shall be registered as a branch office, and a registration fee of ten dollars shall be paid for each such office. It shall be necessary to maintain and register a branch office, whenever, in the judgment of the commission, the business conducted at a place other than the principal of- fice, is of such a nature that the public interest requires reg- istration of a branch office. Any office shall be deemed to be a branch office if the name or advertising of a broker hav- ing a principal office located elsewhere, shall be displayed in such manner as to reasonably lead the public to believe that such office is owned or operated by such broker. History.-25, ch. 12223, 1927; CGL 4086. 475.25 Grounds for revocation or suspension.- (1) The registration of a registrant may be suspended for a period not exceeding two years, or until compliance with a lawful order imposed in the final order of suspension, or both, upon a finding of facts showing that the registrant has: (a) Been guilty of fraud, misrepresentation, conceal- ment, false promises, false pretenses, dishonest dealing, trick, scheme or device, culpable negligence, or breach of trust in any business transaction, or has violated a duty imposed upon him by law or by the terms of a listing contract, writ- ten, oral, express or implied, in a real estate transaction; or has aided, assisted, or conspired with any other person en- gaged in any such misconduct and in furtherance thereof; or has formed an intent, design or scheme to engage in any such misconduct, and has committed an overt act in further- REAL ESTATE LICENSE LAW AND OTHER APPLICABLE STATUTES ance of such intent, design or scheme; and it shall be imma- terial to the guilt of the registrant that the victim, or intend- ed victim, of the misconduct has sustained no damage or loss, or the damage or loss has been settled and paid, after discovery of the misconduct, or whether such victim, or in- tended victim, thereof, was a customer or a person in confi- dential relation with the registrant, or was an unidentified member of the general public; or, (b) Been guilty of false advertising in, on or by, signs, bill boards, newspapers, magazines, periodicals, books, pam- phlets, circulars, radio, telephone, telegraph, or other means of communication of publicity, of such character as to de- ceive or defraud investors, or prospective investors, in real property or interests therein, as more particularly described in subsection (2) of 475.01, whether such property is owned, or purported to be owned by the registrant or by another; or, (c) Failed to account or deliver to any person any per- sonal property such as money, fund, deposit, check, draft, abstract of title, mortgage, conveyance, lease, or other docu- ment, or thing of value, or any secret or illegal profit, or any divisible share or portion thereof, which has come into his hands, and which is not his property, or which he is not in law or equity entitled to retain, under the circumstances, and at the time which has been agreed upon, or is required by law, or, in the absence of a fixed time, upon demand of the person entitled to such accounting and delivery; provided, however, that, if the registrant shall, in good faith, enter- tain doubt as to his duty to account and deliver said prop- erty, or as to what person is entitled to the accounting and delivery, or if conflicting demands therefore shall have been made upon him, and he has not appropriated the property to his own use, or intermingled it with his own property of like kind, he may notify the commission promptly, truthfully stating the facts, and ask its advice thereon, or after notice thereof to the commission, shall promptly submit the issue to arbitration by agreement of all parties, or interplead the parties, or otherwise seek an adjudication of the question, in a proper court, and shall abide, or offer to perform, the ad- vice of the commission or the orders of the court, or arbi- trators, no information against him shall be permitted to be maintained; or, REAL ESTATE LICENSE LAW AND OTHER APPLICABLE STATUTES (d) Violated any of the provisions of this chapter, or any lawful order, rule or regulation made or issued under the provisions of this chapter; or, (e) Been guilty of a crime against the laws of this state or any other state of the United States, involving moral tur- pitude, or fraudulent or dishonest dealing; and the record of a conviction certified or authenticated in such form as to be admissible in evidence under the laws of the state, shall be admissible as prima facie evidence of such guilt; or, (f) Paid a commission or compensation to any person for any service performed, or intended to be performed, in violation of this chapter; or, (g) Become temporarily incapacitated from acting as a broker or salesman with safety to investors or those in a fiduciary relation with him because of drunkenness, use of drugs, or temporary mental derangement, except that the suspension in such cases shall be for the period of such in- capacity; or (h) Rendered an opinion that the title to any property sold is good or merchantable, except when correctly based upon a current opinion of a licensed attorney at law, or failed to advise a prospective purchaser to consult his attorney on the merchantability of the title or to obtain title insurance. (i) Failed, if a broker, to immediately place, upon re- ceipt, any money, fund, deposit, check or draft, entrusted to him by any person dealing with him as a broker, in escrow with a title company or banking institution located and do- ing business in Florida, or, deposit said funds in a trust or escrow bank account maintained by him with some bank located and doing business in Florida, wherein said funds shall be kept until disbursement thereof is properly author- ized, or, if a salesman, failed to immediately place with his registered employer any money, fund, deposit, check or draft, entrusted to him by any person dealing with him as agent of his registered employer. The commission shall establish rules and regulations to provide for records to be main- tained by the broker and the manner in which such deposits shall be made. (2) The registration of a registrant shall be revoked, if such registration, or a certificate issued thereon, is found to have been obtained by the registrant by means of fraud, REAL ESTATE LICENSE LAW AND OTHER APPLICABLE STATUTES misrepresentation or concealment, or if the registrant has become a nonresident of the state, or is confined in any state or federal prison, or insane asylum, or through mental disease or deterioration, the registrant can no longer safely be en- trusted to deal with the public or in a confidential capacity; and a registration or a certificate may be revoked or can- celled, without prejudice to filing a proper application, or request for certificate, if the same shall have been granted or issued through the mistake or inadvertence of the com- mission. (3) The registration of a registrant may be revoked if the registrant shall, for a second time, be found guilty of any misconduct that warrants his suspension under subsec- tion (1) of this section, or if he shall be found guilty of a course of conduct or practices which show that he is so incompetent, negligent, dishonest or untruthful that the money, property, transactions and rights of investors or those with whom he may sustain a confidential relation, may not safely be entrusted to him. History.-26, ch. 12223, 1927; CGL 4087; am. 3, ch. 24090, 1947; 11, ch. 25035, 1949; sub. (1)(g) am. 10, ch. 26484, 1951; sub (1), am. 5, ch. 29983, 1955. 475.26 Information and notice in denial, revocation or suspension proceedings.- When, by reason of a complaint filed, or upon investiga- tion, it shall appear to the commission or the chairman, that there is reason to believe that registration probably should be denied to an applicant because of facts not sufficiently disclosed in the application record, or that the registration of a registrant probably should be revoked or suspended, the chairman shall permit an information to be filed with the commission, by an authorized representative of the com- mission, or some other person having knowledge, informa- tion or belief concerning the facts. The information, and all succeeding papers pertaining to the case, shall be filed and marked with the date of the filing, and shall be kept to- gether in one file and given a distinctive number. The party filing the information shall be designated as the plaintiff and the accused applicant or registrant shall be the defend- ant. In revocation or suspension proceedings as many regis- trants may be joined in one proceeding as are alleged to REAL ESTATE LICENSE LAW AND OTHER APPLICABLE STATUTES have participated in the alleged misconduct charged in one or more of the counts thereof. Where two or more discon- nected transactions are alleged in any information, they shall be stated in separate counts, and where the plaintiff is un- certain as to some fact pertinent to a single transaction, the transaction may, in separate counts, be alleged in the al- ternative and it shall not be an objection that the allega- tions in said counts are inconsistent; and in a default case, or upon a motion for a final order, or motion to quash, the commission may deny, revoke or suspend registration if the allegations of any count will sustain such a final order, or may make such a final order in any other case, if the evidence supports any count of the information. The facts shall be alleged in concise, simple language, and shall be deemed to afford notice of the charge, if a person of ordinary under- standing may reasonably be enabled to present his defense thereto, if any, and both the information and answer shall be aided and deemed amended by the proof, if the oppo- site party shall be afforded full opportunity to meet and de- fend against or rebut such proof. Upon the filing of an infor- mation, a notice thereof shall be sent by registered mail, in the manner and form prescribed by 475.40, addressed to the defendant at the address which the applicant has desig- nated for official notices, in his application, if a denial pro- ceeding, or, in revocation or suspension proceedings, at the last business address which a broker has registered with the commission, or, in case the defendant is a salesman, in care of the employer, at the last address registered with the com- mission. A copy of the information shall be enclosed with the notice. The notice shall fix the date not less than twenty days after the mailing of the notice, on which the defendant is required to file an answer or motion to quash the infor- mation. The prayer of the information for revocation or suspension, or both, shall not control or limit the power of the commission to enter such an order as is warranted by the facts and this chapter. History.-27, 28, ch. 12223, 1927; CGL 4088, 4089; am. 4, ch. 24090, 1947. cf.-475.44, Disqualification of commission members. 475.27 Appointment of examiner; taking of testi- mony.- Whenever an issue of material fact shall appear from the REAL ESTATE LICENSE LAW AND OTHER APPLICABLE STATUTES information and answer in a denial, revocation or suspen- sion proceeding, the commission, or its chairman, shall make an order appointing an examiner to hear and report the evi- dence that may be offered upon said issue. The examiner shall receive the evidence offered together with any objec- tions thereto and shall transcribe or cause to be transcribed the same and shall report the testimony to the commission. The parties shall have reasonable opportunity to present all evidence pertinent to any material issue in the case. The ex- aminer shall administer oaths to the witnesses, afford all parties the right to cross-examine adverse witnesses, give notices of the time and place of hearing, and do any other act authorized by this chapter, or lawfully directed by the commission. The examiner may, unless the commission or chairman shall otherwise direct, make a presentment to the circuit court of the county in which the hearing is or was held, of any misconduct of a witness, described in 475.32, for proceedings therein authorized, or the commission or chairman, may make such presentment. Unless an examiner or reporter is a regular salaried employee of the commission, he may be paid a per diem for holding hearings and such compensation for transcribing and reporting testimony, as may be deemed reasonable by the commission. An examiner may adjourn hearings, but all hearings shall be held in the county where the defendant resides or where the matters and things charged in the information are alleged to have occurred. History.-29, ch. 12223, 1927; CGL 4090; am. 5, ch. 24090, 1947. 475.28 Rules of evidence.- In all proceedings before the commission or before the courts, civil or criminal, where the payment, receipt or ex- pectation of a commission, compensation or valuable con- sideration shall be a necessary element to the investigation, inquiry or offense, proof of the performance of the act, service or condition for which such commission, compensation or valuable consideration is required to be shown, shall be prima facie evidence that such act, service or condition was per- formed or existed for, or in expectation of, the payment or receipt of a commission, compensation or valuable consider- ation; and where it shall be material to determine whether or not a party to any action, civil or criminal, is properly REAL ESTATE LICENSE LAW AND OTHER APPLICABLE STATUTES registered, the burden of proof shall be on such party. Photostatic copies of all papers and documents may be in- troduced in lieu of the originals, in the trial of informations, or typewritten copies may be substituted after production of the original to the examiner. The books of account and records of any person shall be admissible upon a showing that they were made in the regular course of business, with- out introducing the person who made the entries, the weight of such evidence to be decided by the court or commission. History.-30, ch. 12223, 1927; CGL 4091. 475.29 Jurisdiction of the commission.- The commission shall have original jurisdiction to receive, hear and determine all informations permitted to be filed, and shall have power to grant, deny, revoke or suspend reg- istration, or to dismiss an information, as it may find war- ranted by the facts and the provisions of this chapter. Regis- tration may be revoked or suspended upon one or more of the grounds enumerated in 475.25, or elsewhere in this chapter. An application may be denied under the circum- stances enumerated in 475.17 or 475.18, and the commis- sion may enter a final order on an application for registra- tion upon the record made by the applicant as provided in 475.18, or upon an information and proceedings thereon, as other wise provided in this chapter. The defendant may appear before the court and the commission by attorney or in person. History.-31, ch. 12223, 1927; CGL 4092; am. 1, ch. 22861, 1945; am. 6, ch. 24090, 1947. 475.30 Answers, motions and defaults.- (1) The defendant named in an information shall file with the commission a verified answer thereto, and, if he be so advised, a motion to quash the information, on or be- fore the date fixed in the notice required by 475.26. The filing of an answer to the information shall waive any de- fect in, or objection to, the notice, or want of notice. The answer shall admit or deny each fact alleged, except mere matters of inducement, or formal allegations, in the informa- tion, or avoid the effect thereof by a recital of the facts as defendant conceives them to be, and each issuable fact not denied in one of the manners aforesaid, shall be deemed to be admitted. No admission or allegation of the defendant REAL ESTATE LICENSE LAW AND OTHER APPLICABLE STATUTES made in an answer, motion or on the trial, shall be evidence against him in any civil or criminal proceeding, except upon a trial of a charge of perjury against him. All allegations or an answer not admitted in the information shall be deemed denied by the plaintiff. (2) All questions of jurisdiction, or sufficiency of the information, and other matters of law may be raised by mo- tion to quash, which motion shall be deemed, for the pur- pose only of said motion, to admit the truth of the facts alleged in the information. The defendant shall be entitled to an immediate hearing upon such motion to quash and either party to the proceedings, or the commission on its own motion, may call said motion to quash up for hearing on ten days notice to the parties and all proceedings in the case shall abate until such motion to quash is heard and dis- posed of by the commission. In the event said motion to quash be denied by the commission, it shall enter its order to such effect, which order may be appealed by the defendant to the circuit court of the county from which he is registered or from which he has applied for registration, within ten days after the entry of said order. The commission shall be a party to such appeal and it shall be the duty of the com- mission immediately after said appeal is taken to forthwith transmit to the clerk of said circuit court a transcript of the proceedings and after the filing of such transcript with the clerk, any party to the appeal may call the same up for hear- ing and final disposition before said circuit court on ten days notice. All proceedings before the commission may be stayed during the pendency of the appeal to the circuit court by the filing of a bond or deposit of money by the de- fendant as provided in appeals from final orders of the com- mission. In the event the circuit court shall reverse the com- mission, an appeal therefrom may be had to the supreme court as other appeals herein provided for. In the event the circuit court shall affirm the order of the commission, the defendant shall have the right of appeal to the supreme court as herein provided for appeals from the circuit court to the supreme court, but no supersedeas nor stay of pro- ceedings shall be granted the defendant during such appeal and the hearing on information and answer may proceed as herein provided. In the event the information shall be REAL ESTATE LICENSE LAW AND OTHER APPLICABLE STATUTES adjudged insufficient by the commission or on appeal, the plaintiff shall have the right to amend such information at any time within twenty days after the order holding said information to be insufficient shall have become final. In the event of necessity of procedure not specifically provided for herein, the procedure applicable in chancery practice and appeals shall govern so far as they may be applicable. (3) If no answer or motion to quash shall be filed on or before the date fixed in the notice prescribed in 475.26, or within the time as it may be enlarged, the chairman shall enter an order declaring the defendant to be in default, the allegations of the information shall be taken as true, and a final order may be entered, ex parte, at any subsequent meeting of the commission. The default may be opened for good cause shown before a final order is entered, and, if it shall appear to the commission, before October 1 next suc- ceeding the entry of a final order, that the failure to file an answer, or sooner apply for an opening of the default, was not, in any wise, due to the fault, neglect, or disobedience of the provisions of this act requiring immediate filing of notice of change of address or employer, of the registrant, the commission may, in its discretion, set aside the final or- der and permit the filing of an answer. (4) Whenever, in this chapter, the words denial, revo- cation, or suspension, or any two of them, or related words shall appear, they shall be construed to be distributive to the appropriate proceeding. (5) Whenever, under this chapter, service of any paper on the defendant is required, such service may be made per- sonally, or by mail, on him or his attorney, and proof of such service may be made by affidavit of the person making the service. A defendant shall not be required to serve any paper which is required by this chapter to be filed with the commission, unless specifically so stated. History.-32, ch. 12223, 1927; CGL 4093; am. 7, ch. 24090, 1947; 11, ch. 25035, 1949; sub(2) am. 10, ch. 26484, 1951. 475.31 Final orders- (1) Upon default, or the filing of a motion to quash the information, or motion for a final order, or upon the filing of a final report of the examiner, the cause may be heard by the commission at a regular, special or adjourned meeting. The REAL ESTATE LICENSE LAW AND OTHER APPLICABLE STATUTES defendant may file a brief not more than fifteen days after service of a notice that the report of the examiner has been filed. He may request an oral argument within said time, and if the request is granted, shall be given notice of the time and place of hearing at least five days before the date thereof. Upon submission of the cause, in any case, and upon being fully advised in the premises, the commission shall make a final order, which shall be signed, or assented to in writing, by a majority of its members, which order, together with any dissent that a member shall desire to file, shall be entered in an appropriate order book. The final order may dismiss the information, which order shall not be appealable; or said order may deny registration, if in a denial proceeding, or revoke or suspend registration if the defendant is a registrant, as the facts and law may warrant, and no final order shall thereafter be annulled, reversed or called in question, except upon appeal, or because void for want of jurisdiction to enter it. The commission may remand the cause to an examiner for the taking of further testimony, before entering a final order, if justice appears so to require. (2) If the commission shall deny an application for reg- istration, it shall enter its final order to such effect, which final order shall be appealable as hereinafter provided. A final order denying registration shall not be superseded or altered except by a judgment of reversal by a court of com- petent jurisdiction, which judgment has become final. An appeal to the supreme court by the commission from a judg- ment of reversal by the circuit court shall supersede such judgment. A final order of denial of registration shall set forth the reasons upon which the denial is based. (3) An order revoking or suspending the registration of the defendant shall be superseded by an appeal taken under the provisions of this act, provided the defendant shall, at the time of filing the notice of appeal, file with the clerk of the appellate court a good and sufficient undertaking, exe- cuted by two sureties, or a surety corporation, in the amount of two hundred fifty dollars conditioned to prosecute said appeal with effect or pay the costs of the appeal, including the cost of a transcript or transcripts, which undertaking and the financial responsibility of the surety or sureties there- on, shall be approved by the clerk of the circuit court; or the REAL ESTATE LICENSE LAW AND OTHER APPLICABLE STATUTES defendant shall, at the said time, deposit one hundred dol- lars in cash in the registry of the court. Such undertaking or cash deposit shall be conditioned upon the defendant paying the costs in the circuit court and the supreme court, unless the order of the commission shall be finally reversed. All final orders of the commission revoking or suspending registration shall be effective when the time for appeal from the order of the commission, or from a judgment of affirm- ance by the circuit court, has expired, unless superseded as herein provided, or thirty days after the filing of a man- date of the supreme court in effect affirming such revoca- tion or suspension, or dismissing an appeal by the defend- ant, with the clerk of the circuit court, as the case may be. If not so superseded, the commission shall be entitled to an enforcement order during the pendency of the appeal, to be issued by the circuit court, and enforced by it by civil contempt proceedings, to be invoked by motion of the com- mission in the appeal proceedings. The commission may postpone the effective date of the order, where no appeal is taken. (4) An order revoking or suspending the registration of a broker shall automatically suspend the certificates of all salesmen registered with said broker, and if a partnership or corporation, of all members, officers and directors also, while the registration and certificate of said broker shall be inoperative, or until new employment or connection is se- cured, and a new certificate is issued to the member, offi- cer, director or salesman; but the right to transfer or have a certificate issued or reissued shall not extend beyond a period of six months after the termination of the license year in which said order became effective. (5) The final order of the commission in revocation or suspension proceedings, shall, except where the information is dismissed, or is based upon a default, or upon a motion to quash, or for a final order, contain a finding of facts, sufficient to support the order. The findings of fact of the commission shall have the same force and effect as the findings of a general master in chancery. (6) Any registrant whose registration has been suspend- ed may petition the commission for the reissuance of a cer- tificate for the balance of the license year, or for a renewal REAL ESTATE LICENSE LAW AND OTHER APPLICABLE STATUTES certificate for the succeeding year, at the expiration of the period of suspension, or during an indefinite suspension, and at any time before the expiration of six months after the termination of the license year in which said term of sus- pension expired, and in support thereof shall show by his affidavit, on a form to be prescribed by the commission, that he has fully complied with all of the terms and condi- tions of said suspension, and has not, during the full period thereof, acted, or offered to act, or held himself out as being entitled to act, as either a real estate broker or salesman in the state. Thereupon the commission shall reissue or renew said certificate, unless it shall have reason to doubt that said affidavit is in all material respects true, in which case it shall cause to be filed and served on such petitioner a rule re- quiring him to show cause, within a time fixed therein, why his petition should not be denied, and shall cause a hearing thereon to be substantially as in the case of a trial of an information; and if it shall find that the petitioner has failed to show by a preponderance of the evidence that the facts stated in said affidavit are true, said petition shall be denied. (7) The commission shall have authority to terminate a period of suspension, if satisfied that justice requires it, and for like reason may permit a former registrant, whose registration has been revoked, to file a new application, which shall thereafter be treated as any other application, upon petition filed by the registrant, if satisfied that the petitioner will thereafter conduct himself in accordance with the law and ethics governing registrants; but the action of the commission in such cases is discretionary and shall be final. (8) The commission may publish and distribute in such manner and form as it may prescribe any or all of its final orders or decisions made under this chapter, after they shall be final by lapse of time, or upon affirmance on appeal, or opinions of appellate courts, for the guidance of registrants and the public, and may publish, or withhold from publi- cation, the names and addresses of any or all parties con- cerned. (9) If, in any proceeding before the commission or a court under this chapter, a question of procedure shall arise which is not covered by this chapter or valid rule made here- REAL ESTATE LICENSE LAW AND OTHER APPLICABLE STATUTES under, it shall be decided in the same manner as though the same or a similar question had arisen in a chancery case. History.-33, ch. 12223, 1927; CGL 4094; am. 2, ch. 22861, 1945; 8, ch. 24090, 1947; 11, ch. 25035, 1949. 475.32 Subpoenas; issuance; service; failure to answer; witness fees.- Subpoenas for witnesses, whose evidence is deemed ma- terial to any investigation or hearing authorized by this chap- ter, may be issued by the commission or its chairman and under the seal of the commission, or by any circuit clerk, county judge, or clerk of the county court or county judge's court, or examiner appointed under this chapter, command- ing such witnesses to be or appear before the commission, the examiner, or any authorized representative of the com- mission, at a time and place to be therein named, and to bring such books, records, and documents as may be speci- fied, or to submit such books, records, and documents to in- spection; and such subpoenas may be served by such exam- iner or authorized representative of the commission, or by any sheriff or deputy. Where any witness who has been served with a subpoena fails or refuses to be or appear at the time and place named, or fails or refuses to answer any lawful questions propound- ed or produce the books, records, or documents required, or who shall be guilty of disorderly or contumacious con- duct at the hearing, the facts shall be made known to a cir- cuit judge of the county, who shall forthwith issue an at- tachment for such witness, and cause him to be brought before said judge. Upon appearance, if the witness shall fail to purge himself of such failure, refusal or conduct, the judge shall proceed further as in cases of contempt of court; and said witness shall pay the costs of said attachment. Witnesses shall be entitled to the same fees and mileage as they may be entitled by law for attending as witnesses in the circuit court, except where such examination is held at the place of business or residence of the witness, but no witness shall be required to attend a hearing outside of the county wherein he resides, or may for the time be domiciled, without his consent, unless it be shown to a county or cir- cuit judge that such persons are attempting to avoid appear- ing as witnesses. REAL ESTATE LICENSE LAW AND OTHER APPLICABLE STATUTES Witnesses who testify under subpoena shall be entitled to the same protection and immunities as are witnesses in judicial proceedings. History-34, 36, ch. 12223, 1927; CGL 4095, 4097. cf.-90.14, Pay of witnesses. 475.33 Right of defendant to subpoena witness.- The defendant may subpoena witnesses upon payment of the fees required by law, but may be required to advance the cost of taking and transcribing the evidence of such witnesses. History.-37, ch. 12223, 1927; CGL 4098. 475.34 Fees of court officials; payment by commis- sion.- The judges, clerks, sheriffs, and other officers shall be en- titled to the same fees as may be provided by law for simi- lar services in other cases. The fees of witnesses and officers shall be paid by the commission upon presentation of vouch- ers approved by the examiner or representative, but the com- mission shall not be liable for fees incurred by reason of services performed at the direction of a defendant unless otherwise previously ordered. History.-35, ch. 12223, 1927; CGL 4096. cf.-28.24 Compensation of clerk of circuit court. 28.241 Filing fees. 30.23 Fees of sheriffs and constables. *475.35 Appeals to circuit court.- (1) The defendant may appeal from a final order of the commission to the circuit court of the county from which he applied for registration, if an applicant, and registration has been denied, or, if the defendant is a registrant and his registration has been revoked or suspended, the county from which the records of the commission show him to be registered at the time the information is filed. If such ap- peal is taken to the circuit court of some other county, it shall not for that reason alone be dismissed, but, if objec- tion be made, it shall be transferred to the circuit court of the proper county upon order of the court to which the ap- peal was originally taken, and the clerk of the court shall * The provisions for appeal to the Circuit Court have been super- seded by constitutional revision and adoption of the Florida Appellate rules. Judicial review by the Circuit Courts is now by Petition for 0 Writ of Certiorari. See Supreme Court decision relating to same. REAL ESTATE LICENSE LAW AND OTHER APPLICABLE STATUTES transmit all papers in the cause to the clerk of the proper court, for further proceedings and disposition. If no objec- tions is filed within ten days after service of the notice of appeal, the venue shall be deemed waived, and the cause shall proceed in the court in which it was filed. Such appeal shall be taken by filing a notice of appeal with the clerk of appellate court within thirty days after a copy of the final order of the commission shall be served on the defendant or his attorney of record, and upon the commission at its execu- tive office within five days after the filing of the notice of appeal. (2) The party taking an appeal to the circuit court shall be the appellant therein, and the original plaintiff and the commission shall be the appellees, and they shall be so de- scribed in the caption of notice of appeal. If more than one defendant is a party to the information, all parties desiring to appeal may join in the notice, or file and serve separate notices, in which case the appeals shall be consolidated. The notice shall state that an appeal is taken, shall identify the final order from which it is taken, shall be captioned in the court to which the appeal is returnable and shall be signed by the appellant or his attorney. No assignments of error shall be required. No notice of appeal shall be held ineffective to give the circuit court jurisdiction, if it is suf- ficent to give notice of the intent to appeal, reasonably identi- fies the proceeding, the party appealing and the court to which the appeal is taken. (3) Upon service of the notice of appeal, the commis- sion shall forthwith prepare a complete transcript of the rec- ord of the proceedings before it, beginning with the filing of the information and ending with the filing of the final order, and the certificate of the chairman, including all rul- ings of the commission and the report of the examiner, if any, and it shall file said transcript with the clerk of the court to which the appeal is returnable, or to which the appeal may have been transferred. The transcript shall be certi- fied as true, correct and complete, by the chairman and shall be under the seal of the commission. A copy of the transcript shall be served upon the defendant by mail or personally within five days after it is filed with the clerk. The commis- REAL ESTATE LICENSE LAW AND OTHER APPLICABLE STATUTES sion shall attach to the transcript a bill showing the actual cost of preparing the transcript, and if the order of the com- mission shall be finally sustained, by the circuit or supreme court, the circuit court shall render judgment in favor of the commission and against the appellant and the sureties on his supersedeas undertaking, if any, or order payment from the registry of the court, if a deposit has been made therein, for said amount, or so much thereof as the court shall deem just, if it shall exceed the fees allowed to clerks of the circuit court in appeals to the supreme court, upon mo- tion filed and served on the defendant and sureties, by the commission. Said sureties, by executing the undertaking, shall be deemed to have become parties to the cause for the purpose of, and to have consented to, the entry of such judgment, without a trial by jury. (4) Upon filing of the transcript, the appeal shall be set for hearing and shall be heard according to the rules and practice of the court before which it is pending. (5) The circuit court may reverse or affirm the final order of the commission, in accordance with the provisions of this chapter. No such final order shall be reversed for any error of procedure which has not resulted in the denial of a fair trial to the defendant, or has not denied to him any sub- stantial constitutional or statutory right, or has not prevent- ed or prejudiced the presentation of any lawful defense which would otherwise have been available to him. If the finding of facts shall be supported by the evidence to the extent required by this chapter, and the order shall be sup- ported by such finding and shall be within the power of the commission, and the defendant was duly served with notice of the pendancy of the proceedings in the manner required by this chapter, or has appeared therein, or otherwise waived notice, the order shall not be reversed for any cause, except want of jurisdiction or power, unless such cause was by mo- tion or objection of record made known to the commission before the making of the final order, and the cause of the objection has not been corrected, and then only for errors made reversible by this chanter. The information and an- swer shall, in all cases, be deemed to have been amended to conform to the proof, provided the opposite party shall have been given opportunity, upon demand, to meet such REAL ESTATE LICENSE LAW AND OTHER APPLICABLE STATUTES proof. The order and proceedings shall be presumed to be valid, unless reversible error or invalidity shall, in some legal manner, be affirmatively shown to exist. In the event that it is charged that the commission, on demand, refused to make such reversible error or invalidity appear of record, the circuit court is empowered to determine the truth of such charge, and make corrections in the record as shall be neces- sary to make it speak the truth. History.-38, ch. 12223, 1927; CGL 4099; am. 9, ch. 24090, 1947. cf.-Ch. 67, Appellate proceedings in chancery. 475.36 Appeal to supreme court.- If an appellant or the appellees in any appeal under 475.35 shall be dissatified with the judgment of the circuit court, such party or parties may appeal therefrom to the supreme court within thirty days after the entry of the judgment and in the manner prescribed by the statutes and the rules of the supreme court as applied to appeals in chan- cery cases, except that the clerk of the circuit court shall certify to the supreme court the original transcript filed by the commission, and shall prepare and certify to the supreme court a supplemental transcript containing the notice of appeal to the circuit court, all motions and orders of the circuit court, the assignments of error to the judgment and rulings of the circuit court, and a recitation of the filing of a supersedeas undertaking or deposit of cash in lieu of bond, if any, and the record of the judgment of the court and the notice of appeal to the supreme court, unless the parties shall stipulate to the omission of designated motions and orders. The appellee in the supreme court shall be entitled to be served with a copy of the supplemental transcript only. The supersedeas undertaking or deposit, shall remain effective pending an appeal to the supreme court, and as indemnity for costs in the circuit and supreme courts, if the supreme court shall affirm or sustain the final order of the commis- sion or dismiss an appeal by the original defendant. The original transcript prepared by the commission shall be re- turned to the clerk of the circuit court by the clerk of the supreme court, in the event the opinion and judgment of the supreme court shall require proceedings in the circuit court. Historv.-39, ch. 12223, 1927; CGL 4100; am. 10, ch. 24090, 1947. cf.-Ch. 35, District courts of appeal. REAL ESTATE LICENSE LAW AND OTHER APPLICABLE STATUTES 475.37 Effect of reversal of order of court or commis- sion.- Should the order of the court or commission denying, re- voking or suspending registration, be finally reversed and set aside, the defendant shall be restored to his rights and privileges as a broker or salesman, from and after filing the mandate, or a copy thereof, with the commission, and the matters and things alleged in the information shall not there- after be reexamined in any other proceeding concerning the registration of the defendant; or if the inquiry concerned was in reference to an application for registration, the application shall stand approved, and such application shall be remand- ed for further proceedings according to law. History.-40, ch. 12223, 1927; CGL 4101. 475.38 Payment of costs.- The commission shall not be required to advance any fee or costs to any officer or witness, or to execute any bond in any proceeding in the courts, any general statute to the con- trary notwithstanding, but in every case, where the commis- sion shall be liable for any fees or costs, a voucher therefore shall be presented to the commission, and if approved, shall be audited and paid as are other expenses of the commis- sion. The commission may, where it is satisfied that a defend- ant is unable to pay or advance any fees or costs and that the service from which such fees or costs have accrued, or will accrue, is probably necessary in the interests of justice, upon application by the defendant, order that such fees or costs be incurred at the expense of the commission, and be paid as are other fees and costs, but the defendant shall remain liable to the commission for all sums so paid. History.-41, ch. 12223, 1927; CGL 4102. 475.39 Right of commission to bring injunction or man- damus.- Whenever it shall appear to the commission that any per- son is operating as a broker or salesman without having been duly registered, or is violating any of the provisions of this chapter or lawful rules, regulations or orders of the commis- sion, the commission may file an application for injunction in its own name, or proceedings by mandamus, in the name of the state, on its own relation, and by its counsel, alleging REAL ESTATE LICENSE LAW AND OTHER APPLICABLE STATUTES the facts, and praying for an injunction or writ of mandamus against such person, partnership or corporation, or its mem- bers, officers or directors, restraining them from further oper- ating or acting as a real estate broker or salesman until such time as the proper certificates shall have been granted, oi restraining them from disobeying, or commanding them to obey such law, order, rule or regulation. Upon proper application, and showing that the defend- ant is not registered or that renewal certificates have not been applied for, or that registration has been denied, re- voked or suspended, or that the law, order, rule or regula- tions have been or are about to be violated or disobeyed, which showing may be by affidavit, the judge of the court wherein the bill shall be filed, shall issue a restraining order or alternative writ of mandamus and, upon the final hear- ing, shall grant and issue an injunction, mandatory injunc- tion, or peremptory writ of mandamus, as prayed, upon find- ing the truth and sufficiency of the allegations of the bill or petition. The court may enforce said injunction or writ by punishment for contempt, and by such other writs and processes, mesne or final, as are permitted to circuit courts, and shall make such other orders as its discretion and the rules shall require. Such injunction or writ may be limited in time, perpetual or conditional, as may be necessary and proper to the enforcement of this chapter. The laws of the state now in force, and the rules of the supreme court, regu- lating appeals in cases brought by the railroad commission- ers, shall apply to appeals in cases brought under this section. History.-42, ch. 12223, 1927; CGL 4103. cf.-350.64, Appeals in cases brought by railroad commissioners. 475.40 Notices.- Whenever any notice shall be required by this chapter, it shall be sufficient to deliver such notice personally to the person to be notified, or to a member or officer of a partner- ship or corporation, or to cause the same to be sent by reg- istered mail, fully stamped and addressed to such person at the last business address registered with the commission, or, if to a salesman, addressed in care of the registered em- ployer; or to the attorney of record. Such notice shall con- tain sufficient information to put such person on inquiry, and reasonably lead to a discovery of all facts necessary to the REAL ESTATE LICENSE LAW AND OTHER APPLICABLE STATUTES protection of his rights. The period of notice shall be fixed at a reasonable time by the commission, not less than may, for the particular notice, be fixed in this chapter. The affi- davit of the person delivering or mailing the notice shall be proof of the fact, but if done by the sheriff or an examiner may be proved by return. History.-43, ch. 12223, 1927; CGL 4104. cf.-1.01 (13) defines registered mail to include certified mail with return receipt requested. 475.41 Contracts of unregistered person for commis- missions invalid.- No contract for a commission or compensation for any act of service enumerated in subsection (2) of 475.01 shall be valid unless the broker or salesman shall have complied with this chapter in regard to registration and renewal of the certificate at the time the act or service was performed. History.-44, ch. 12223, 1927; CGL 4105. 475.42 Violations and penalties.- (1) VIOLATIONS.-(a) No person shall operate as a real estate broker or salesman without being the holder of a valid current registration certificate. (b) No person registered as a real estate salesman shall operate as a real estate broker, or operate as a salesman for any person not registered as his employer. (c) No broker shall employ, or continue in employment, any person as a real estate salesman who is not the holder of a valid current registration certificate as salesman; but a registration certificate as salesman may be issued to a per- son registered as an active broker, upon request and sur- render of the certificate as broker, without a fee in addition to that paid for the issuance of the broker's active certificate. (d) No salesman shall collect any money in connection with any real estate brokerage transaction, whether as a commission, deposit, payment, rental, or otherwise, except in the name of the employer, and with the express consent of the employer; and no real estate salesman, whether the holder of a valid current registration certificate or not, shall commence or maintain any action for a commission or com- pensation, in connection with a real estate brokerage tran- saction, against any person except a person registered as his employer at the time the cause of action is alleged to have arisen. REAL ESTATE LICENSE LAW AND OTHER APPLICABLE STATUTES (e) No person shall sell or offer for sale any real proper- ty or interest therein, as defined in this chapter, where the real property involved or affected, is located outside of the state, except isolated, disconnected and single transactions, without obtaining a permit issued under the rules of the commission. Nor shall any person represent or cause to be represented, orally or in writing, to any other person or to the public, that the commission, by any permit issued by it, approves or recommends any promoter, broker, or sales- man connected with the sale, or any property or investment being or about to be offered. (f) No person shall violate any lawful order, rule or reg- ulation of the commission, which is binding upon him. (g) No person shall be guilty of any conduct or prac- tice set forth in 475.25 (1) (a), (b), (c), or (f). (h) No person shall make any false affidavit or affirma- tion intended for use as evidence by or before the commis- sion, or a member thereof, or by any of its authorized rep- resentatives, in connection with any investigation authorized by this chapter, nor shall any person give false testimony under oath, or affirmation, to or before the commission, or any member thereof, or any examiner appointed hereunder, in any proceeding authorized by this chapter. (i) No person shall fail or refuse to appear at the time and place designated in a subpoena issued under this chap- ter, unless because of facts that are sufficient to excuse ap- pearance in response to a subpoena from the circuit court, nor shall a person who is present before the commission, a member thereof, one of its authorized representatives, or an examiner, acting under authority of this chapter, refuse to be sworn or to affirm, or fail or refuse to answer fully any question propounded by the commission, a member thereof, or such representatives or examiner, or any person by the authority of such officer or appointee, nor shall any person, so being present, conduct himself in a disorderly, disrepect- ful or contumacious manner. (j) No person shall obstruct or hinder in any manner the enforcement, or performance of any lawful duty by any person acting under the authority, of this chapter, or inter- fere with, or intimidate, or offer any bribe to, any member of the commission, or any of its employees or examiners, or any REAL ESTATE LICENSE LAW AND OTHER APPLICABLE STATUTES person who is, or is expected to be, a witness in any investi- gation or proceeding under this chapter. (k) No real estate broker or salesman shall place, or cause to be placed, upon the public records of any county, any contract, assignment, deed, will, mortgage, lien, affi- davit, or other writing which purports to affect the title of, or encumber, any real property, if the same is known to him to be false, void, or not authorized to be placed of record, or not executed in the form entitling it to be recorded, or the execution or recording whereof has not been duly author- ized by the owner of the property, maliciously or for the purpose of collecting a commission, or to coerce the pay- ment of money to the broker or salesman or other person, or for any unlawful purpose. (1) No person shall operate as a real estate broker under a trade name without causing the same to be noted in the records of the commission and placed on his certificate, or so operate as a member of a partnership or as a corporation or as an officer or manager thereof, unless said partnership or corporation is the holder of a valid current registration certificate. (2) PENALTIES.-Any person who shall violate any of the provisions of this section shall, upon conviction, be pun- ished by a fine of not less than fifty dollars nor more than five hundred dollars, or by imprisonment for not more than six months, or if a corporation, by a fine of not less than one hundred dollars nor more than one thousand dollars, except where a different punishment is prescribed by this chapter. Nothing in this chapter shall prohibit the prosecution of any person for an act or conduct prohibited by this section, un- der any other criminal statute of this state, provided, how- ever, in such cases, the state may prosecute under this sec- tion or under such other statute, or may charge both offenses in one prosecution, but the sentence imposed shall not be a greater fine or longer sentence than that prescribed for the offense which carries the more severe penalties. A civil case, criminal case, or a denial, revocation, or suspension proceeding may arise out of the same alleged state of facts, and the pendency or result of one such case or proceeding shall not stay or control the result of either of the others. REAL ESTATE LICENSE LAW AND OTHER APPLICABLE STATUTES (3) DEFINITIONS.- (a) Wherever the words "operate" or "operating" as a broker or salesman shall appear in this chapter, or in any order, rule or regulation of the commission, or in any plead- ing, indictment or information, under this chapter, or in any court action or proceeding, or in any order or judgment of a court, it shall be deemed to mean the commission of one or more acts described in 475.01(2) and 475.01(3) as con- stituting or defining a real estate broker or salesman, not including however, any of the exceptions stated therein. A single such act shall be sufficient to bring a person within the meaning of this chapter, and each act shall, if prohibited herein, constitute a separate offense. (b) The term "valid current registration certificate" shall be held to mean an active registration certificate that is based upon a registration that has not expired, or that has not been revoked, or that is not presently suspended, which was issued prior to the date of the act, conduct or operating, which is the subject of an offense, inquiry, or proceeding, and expiring subsequent thereto, which certificate shall show the then address of the business office, if of a real estate broker, or the then name and business address of the employer, if of a real estate salesman. (c) The word "person" as used in this chapter shall apply to an individual or a corporation, the singular shall include the plural and the male pronoun shall include the female and neuter. History.-45, ch. 12223, 1927; CGL 8134; am. 11, ch. 24090, 1947; 11, ch. 25035, 1949; sub.(1)(d) am. 10, ch. 26484, 1951. cf.-775.06, Alternative punishment. 475.43 Presumptions.- In all criminal cases, and in contempt cases, or other cases filed pursuant to this chapter, if it shall appear that a party has sold, leased or let real estate, the title to which was not in him when it was offered for sale, lease or letting, or such party has maintained an office bearing signs that real estate is for sale, lease or rental threat, or has advertised real estate for sale, lease or rental, generally, or describing prop- erty, the title to which was not in such party at the time, it shall be a presumption that such party was acting or at- tempting to act as a real-estate broker, and the burden of REAL ESTATE LICENSE LAW AND OTHER APPLICABLE STATUTES proof shall be upon him to show that he was not acting or attempting to act as a broker or salesman, as defined herein. All contracts, options or other devices not based upon a sub- stantial consideration, or that are otherwise employed to permit an unregistered person to sell, lease or let real estate, the beneficial title to which has not, in good faith, passed to such party, for a substantial consideration, are hereby de- clared void and ineffective in all cases, suit or proceedings had or taken under this chapter; provided, however, that this section shall not apply to irrevocable gifts, or to un- conditional contracts to purchase, or to options based upon a substantial consideration actually paid and not subject to any agreements to return or right of return reserved. History.-3, ch. 22861, 1945. 475.44 Disqualification of members of the commis- sion. A member of the commission may be disqualified from hearing and participating in the decision of a denial, revo- cation or suspension case on the same grounds and in sub- stantially the same manner as a circuit judge may be dis- qualified. Upon the entry of an order of disqualification, either voluntary or pursuant to a sufficient showing thereof, the governor shall appoint a real estate broker, qualified under 475.02, who is not akin to any of the parties nor known to be biased or prejudiced in the cause, and who resides more than fifty miles from the county in which the defend- ant resides, to sit in the place and stead of such disqualified member, who, in the particular cause, shall have the same duties, powers and authority of a member of the commission, and shall be entitled to be reimbursed for his expenses in- curred in the performance of said duties. No step in the proceeding, taken prior to the filing of objections to such member, shall be held invalid, unless it is made to appear that the defendant has sustained substantial injury thereby, which cannot otherwise be remedied. Any registrant who shall make any false affidavit for the purpose of disqualify- ing a member of the commission in any cause may be charged therewith in an information before the commission, and his registration shall be revoked if he is found guilty thereof, and any defendant or other person who shall make any false REAL ESTATE LICENSE LAW AND OTHER APPLICABLE STATUTES affidavit intending that the same shall be filed in support of the disqualification of a member of the commission shall, upon conviction, be punished by imprisonment in the state prison for a term of not more than five years, or by a fine of not less than five hundred dollars and not exceeding five thousand dollars, or by both such fine and imprisonment. History.-4, ch. 22861, 1945; 12, ch. 24090, 1947. 475.451 Schools teaching real estate practice.- (1) Every person, school or institution, except approved and accredited colleges and universities of this state, who shall offer or conduct any course or courses of study in real estate practice, or any course or courses designed or repre- sented to enable or assist applicants for registration as real estate brokers or salesmen to pass examinations conducted by the Florida real estate commission, shall, before commencing or continuing further to offer or conduct such course or courses, on and after October 1, 1957, obtain a permit from the real estate commission, and thereafter abide by the regu- lations imposed upon such person, school or institution by this chapter and rules and regulations of the real estate com- mission made pursuant thereto; provided, that this section shall not apply to or be construed to regulate any real estate educational program conducted on a non-profit basis. (2) An applicant for a permit hereunder shall first pass an examination as a real estate broker and be the holder of a registration status as a real estate broker, either active or non- active. The commission may require references to persons having knowledge concerning the applicant and the enter- prise, may propound interrogatories to such references and to the applicant concerning the character of the applicant, and shall make such investigation of him or the school or in- stitution as it may deem necessary to the granting of the permit and if an objection is filed, a notice and hearing shall be held in the same manner as provided by law and rules in hearings on objections or informations against applicants for registra- tion by the real estate commission. (3) It shall be unlawful for any person, school or institu- tion to offer the courses described in subsection (1) or to conduct classes in such courses, regardless of the number of pupils, or by correspondence or otherwise, without first pro- REAL ESTATE LICENSE LAW AND OTHER APPLICABLE STATUTES curing a permit, or to guarantee that their pupils will pass any examinations given by the commission, or to represent that the issuance of a permit is any recommendation or en- dorsement of the person, school or institution to which it is issued, or of any course of instruction given thereunder. (4) The application of each school, institution, or person operating such school or institution, shall be accompanied by a fee of one hundred dollars, and the application of each person employed by a school or institution as an instructor shall be accompanied by a fee of twenty-five dollars and the permit, if issued, shall be annually renewed by the payment of the same fee as for original applications, on or before each succeeding September 30, as in cases of regis- tration certificates of brokers and salesmen, and the same shall be paid into the state agency fund, as provided in 475.11. (5) Any person guilty of a violation of this section shall be deemed guilty of a misdemeanor, and punished as pro- vided for in 475.42 (2). (6) In the event that any person, school or institution shall violate any of the provisions of this section, or violate any rule or regulation adopted pursuant thereto, or attempt to continue to operate as herein defined, after the revocation or during a period of suspension of a permit, the Florida real estate commission shall be entitled to the appropriate remedy given to it in other cases by 475.39. History.-Comp. 1, ch. 57-817. 475.47 Publication of false or misleading information; promotion of sales. It shall be unlawful for any person to publish or cause to be published by means of newspaper, periodical, radio, tele- vision, or written or printed matter, any false or misleading information for the purpose of offering for sale or for the purpose of causing or inducing any other person to purchase real estate located in the state, or to acquire an interest in the title thereto. History.-Comp. 1, ch. 31401, 1956. 475.48 Violation 475.47, penalty.- Any person found guilty of violating the provisions of 475.47 shall, upon conviction, be punished by a fine not REAL ESTATE LICENSE LAW AND OTHER APPLICABLE STATUTES exceding $100,000.00 or by imprisonment not exceeding 5 years, or both such fine and imprisonment. History.-Comp. 2, ch. 31401, 1956. 475.49 Proceeding to rescind or recover.- Any person who, in reliance upon any false or misleading information published in violation of 475.47, pays anything of value toward the purchase of or acquiring an interest in the title to real estate located in this state, shall be entitled in an equity proceeding to rescind the contract in accordance with equity principles or in an action at law to recover from the person to whom such payment was made, damages for his loss, and provided, further, that any person who purchases or acquires an interest in the title to real estate or contracts therefore, after he or his agent has made an actual physical or visual examination of the property involved, shall not be entitled to the benefits of this section. Any action under this section not brought within one year from the date of the first payment on the purchase price or other consideration, or within three months after said purchaser or his agent has physically or visually examined said real estate, whichever time shall occur first, shall be barred. History.-Comp. 3, ch. 31401, 1956. 475.50 Approved information as evidence.- In any criminal action under 475.48 and in any civil action brought under 475.49, proof that the commission has ap- proved any information for dissemination as hereinafter in subsections (3) and (4) of 475.51 provided, shall be prima facie evidence that such information and only such informa- tion is not false or misleading. History.-Comp. 4, ch. 31401, 1956. 475.51 Promotive publication; filing with and approval by commission; fees.- (1) It shall be unlawful for any person to publish or cause to be published, a. by means of any newspaper or pe- riodical which is printed outside of this state (except for classified or display ads relating to not more than five parcels, lots or tracts of land), b. by means of any radio or television broadcast, the point of wireless transmission of which is out- side of the state, or c. by means of any written or printed matter produced by any duplicating process producing ten REAL ESTATE LICENSE LAW AND OTHER APPLICABLE STATUTES copies or more (other than newspapers or periodicals print- ed in this state) circulated or delivered outside the state, any information offering for sale or for the purpose of caus- ing or inducing any other person to purchase or to acquire an interest in the title to real estate located in this state without first filing with the commission full and complete copies or descriptions of said information to be published, including any photographs or drawings or artist's represent- ations of physical conditions or facilities of the property existing or to exist. On the occasion of each filing a filing fee of one dollar shall be paid to the commission for each piece of material or description thereof filed. Provided, however, that subsection (1) shall not apply to any duly registered real estate broker, not under suspension, subject to the rules, regulations, and disciplinary action of the commission, when engaged in the sale of properties not owned by said broker. A registered real estate broker shall not be exempt from any other provisions of this law. (2) When the information filed under subsection (1) hereof shall deal with subdivided lands as hereinafter defined and the person so filing intends to sell or offer for sale, or sells or offers to sell, more than twenty-five lots or parcels of such land within any twelve month period, he shall, in addition to filing such information, file with the commission supporting data showing that none of the information so filed is false or misleading; provided, however, the provisions of this subsection shall apply to registered real estate brokers, irrespective of whether such broker has filed the information under subsection (1) or not. Such data shall be in the form of affidavits of the applicant and two or more disinterested parties and shall also include a plat of said subdivided lands and a vicinity map, and may include any other material applicant desires to submit. It shall be unlawful to file any false supporting data. For the purpose of this section, "sub- divided lands" shall mean any improved or unimproved land divided or proposed to be divided for the purpose of sale, whether immediate or future, into more than twenty-five lots or parcels. (3) Any person desiring by means of any of the media specified in 475.47 hereof to publish information for the purpose of offering for sale or for the purpose of causing or REAL ESTATE LICENSE LAW AND OTHER APPLICABLE STATUTES inducing any other person to purchase real estate located within the state may request the commission to approve such information for publication after first investigating and de- termining such information not to be false or misleading. Such request shall be accompanied by a. a full, true and correct copy of the information the applicant desires to publish, b. an affidavit of the applicant stating that all of such information is true and correct and c. a filing fee of one hundred dollars. Such fee shall be apportioned by the com- mission for making the investigation and shall be credited to the commission fund. The deductions allowed by 215.20 shall not be applicable. The commission shall pursuant to such request, with due diligence and reasonable dispatch, thereupon conduct an investigation and determine whether the information sought to be published is false or misleading. Any additional cost of investigation over and above said one hundred dollars shall be borne by the applicant. (4) When the commission shall determine whether to approve or disapprove such information for publication it shall file its determination among its records and forthwith notify the applicant of its decision and the reason therefore; provided, however, that no such notification shall be made or approval given until all costs of the investigation shall be paid by the applicant. (5) No published information offering for sale or pub- lished for the purpose of inducing persons to purchase Flo- rida real estate shall contain any representation that such information has been approved by the Florida real estate commission, nor shall such information contain a statement to the effect that the commission has determined the same not to be false or misleading. History.-Comp. 5, ch. 31401, 1956. 475.52 Injunctive proceedings.- (1) The commission is hereby authorized and empower- ed to institute legal actions in any court of competent juris- diction within this state or elsewhere for the purpose of en- joining the violation of 475.47 or subsections (1), (2) or (5) of 475.51, and the courts of this state shall, upon proof of the violation of provisions of 475.47 or subsections (1), (2) or (5) of 475.51, enter an order enjoining such publica- REAL ESTATE LICENSE LAW AND OTHER APPLICABLE STATUTES tions and violations by persons proved to be violating such provisions. (2) In determining whether it will institute proceedings to enjoin the violation of 475.47 or subsections (1), (2) or (5) of 475.51, the commission may, but is not required to, conduct hearings for the purpose of determining whether there is probable cause or reasonable grounds for such ac- tions, and shall have subpoena power. History.-Comp. 6, ch. 31401, 1956. 475.53 Conspiracy to violate.- (1) It shall be unlawful to aid another in the violation of the provisions of 475.47-475.52 or to conspire with one or more other persons to violate the provisions hereof, and any person convicted of so aiding or conspiring shall be subject to the same punishment as one committing the act. (2) No person publishing or causing to be published information in violation of the provisions of this law, nor his accessory, conspirator, employee or agent, may, for the pur- poses of this law, be deemed to be the agent of a person who pays or delivers anything of value toward the purchase of or acquiring an interest in the title to real estate in reliance upon such publication. History.-Comp. 8, ch. 31401, 1956. 475.54 Exemption, criminal and civic provision.- The criminal and civil provisions of this law shall not apply to a newspaper, printer, radio broadcaster, telecaster, or others, having no interest in the real estate involved, who only furnish the media for the publication of the information prohibited by the provisions of this law. History.-Comp. 9, ch. 31401, 1956. 475.55 Penalties; violations, 475.47-475.54.- In all cases where no specific penalty is imposed by 475.47- 475.54 for the violation of a provision hereof, such violation shall be deemed to be a misdemeanor, and any person violat- ing such provisions, upon conviction therefore, shall be pu- nished by a fine not exceeding $1,000.00 or by imprisonment not exceeding 6 months, or both. History.-Comp. 7, ch. 31401, 1956. 0 CHAPTER II HISTORY AND OBJECTS OF REAL ESTATE LICENSE LAW 2.01 Definitions. 2.04 Important features of the 2.02 History prior to regulation. real estate license law. 2.03 History of regulation. 2.01 Definitions.- The real estate business is a vocation in which real prop- erty forms the stock in trade, and is bought, sold, leased or rented. It includes those who deal for themselves, or as agents for others, or both. The real estate profession is a calling in which skill and experience in real estate values and practices, coupled with high standards of integrity, are offered as a service to the public, and confidence in the possession and application of these qualities is invited. A real estate broker is one who, as a vocation or profes- sion, acts for others in the negotiation of the sale, purchase, leasing, renting or management of real property, or the find- ing of purchasers, sellers, lessors or lessees, or landlords or tenants, of real property, with whom his employer may negotiate; or one who engages to make, or assists in making, real estate bargains for others. A real estate salesman is one who, as a vocation or profes- sion, performs any of the services ordinarily performed by a broker, but who is employed by, or is under the direc- tion of, a broker, or a regular employer engaged in the real estate business. A real estate appraiser is one who, as a vocation or pro- fession, acts in an expert capacity for others in the appraisal or valuation of real estate and fixtures. The principal, employer or client of a real estate broker is the one who engages the services of such broker. The customer or prospect is the one with whom the bro- ker hopes to be successful in accomplishing the object of his employment. 2.02 History prior to regulation.- While there have been regulations of sorts governing real estate brokers from early times, the idea of excluding the HISTORY AND OBJECTS OF REAL ESTATE LICENSE LAW unfit from that class, and providing supervision of those permitted to so engage, is a development of the last forty- five years. Since life became complicated enough for people to employ others, having more time or skill than themselves, to transact a part or all of their business, they began to em- ploy real estate "agents," as they were commonly called in England, and sometimes in this country. Such agents be- came specialists, but were grouped by the courts with all other agents, and certain legal rules were developed and were supposed to govern them in their dealings. These rules did not differ substantially from the requirements of our real estate license law, and made the prescribed conduct of the agent measure up to his trust, thereby prohibiting him from indulging in practices that might be resorted to, with- out hindrance from the law, by the ordinary merchant or business man. These practices, when not amounting to actual larceny or forgery or the like, were not punished as crimes, or by any other form of actual punishment, but only by compelling restitution if the victim should take his case to the courts. 2.03 History of regulation.- The actual history of regulation is short. In 1911 a statute regulating real estate brokers was passed by the Legislature of California, but was vetoed by the Governor. Thereafter, a similar act was enacted, but was held unconstitutional by the courts. Finally, in 1919 an act was passed which was held vaild, and, with many amendments to strengthen it, and enlarge its scope, remains the law of that state. Since that time, acts more or less identical have been passed in forty-seven states, Alaska, Hawaii, the District of Columbia, and five provinces in Canada. In 1923 the Legislature of Florida passed an act very similar to the California act, enumerating various forms of misconduct, to be punished as misdemeanors, but did not provide any officer or board to enforce the law, or to deny or revoke licenses to practice. At the regular session of the Legislature in 1925, chapter 10233 was passed, creating a real estate commission to keep records, make investigations and institute and prosecute pro- ceedings to suspend or revoke registration of brokers and salesmen. The power to grant, deny, suspend and revoke HISTORY AND OBJECTS OF REAL ESTATE LICENSE LAW registration was given to the county judges. At the extra- ordinary session of the same year a new act, chapter 11336, was passed, the principal change being to give the commis- sion the power to grant or deny registration. In 1927 an- other new act was passed, being chapter 12223, in which the circuit court was given jurisdiction to suspend or revoke registration. This act was brought forward, with some changes, by the staff of the Attorney General, in the Florida Statutes 1941, and was designated as chapter 475. In 1945, the act was amended by chapter 22861, but only one section of that act, being 475.43, has survived a decision of the su- preme court, and a further amendment by the 1947 Legisla- ture, being chapter 24090. Under these Amendments the Commission was granted jurisdiction to deny, revoke, or suspend registration, with applicant or registrant having the right to appeal to the Circuit Court, and either of the parties having the right to appeal from the decision of the Circuit Court. The 1947 Amendments also set out in detail the procedure before the Commission and the qualifications of applicants was strengthened and additional requirements in- cluded. At that time there was added the requirement that an applicant be a citizen of the United States and above the age of 21 years. The 1957 legislature, by Chapter 57-244, amended 475.17 by adding the requirements that all appli- cants for broker registration must serve an apprenticeship as a registered salesman for a period of one year and that an applicant for salesman's registration must have been a resi- dent of the State of Florida for six months prior to filing his application, unless the salesman applicant has operated ex- clusively as a broker or salesman for a period of two years in a state requiring registration, in which case he may apply for salesman's registration immediately upon becoming a re- sident of the State of Florida. The 1957 legislature, by Chap- ter 57-244, also amended 475.18 by providing specifically that an application should be denied if the applicant within one year had done any act prohibited in Chapter 475.01, i.e. acted as a broker, or salesman, prior to the issuance of a re- gistration certificate to him. This Chapter also clearly sets forth the intent of the legislature and the ultimate goal of the Real Estate License Law which is to elevate the real estate profession for the protection of the public. HISTORY AND OBJECTS OF REAL ESTATE LICENSE LAW The 1956 Special Session of the legislature and the 1957 Legislature added two other acts to Chapter 475, Chapter 31401 (1956) now appearing as 475.47-475.55 regulating advertising and Chapter 57-817 (1957) now appearing as 475.451 regulating schools teaching real estate practice. These two chapters, while not essentially within the scope of licensing real estate brokers and salesman, are nonetheless important and belong properly within this discussion of the history of the real estate license law. They exemplify the continuous efforts of the real estate profession to regulate themselves for the protection of all persons dealing with them and to ever improve the standards of the profession. 2.04 Important features of the real estate license law.- The text of the real estate license law, as it presently ex- ists, taken from Florida Statutes, 1957, appears in chapter I hereof. It deals first with the definitions of brokers and salesmen, describing precisely who is required to comply with the law, and, further, defines registration, registrants, the fiscal or license year, the commission, or body created to enforce the law, registration certificates, and other terms used in other sections of the statute. In 1955 the operation of the law was extended to business opportunity brokers so as to prohibit them from negotiating leases or extensions, or as- signments of leases, unless they are registered brokers. The statute naturally provides for the appointment of members of the real estate commission, their offices, powers, and the disposition of their funds and the payment of their expenses and the salary and expenses of their necessary em- ployees. The requirements and qualifications of applicants for registration as brokers and salesmen, and the manner of determining such qualifications, are detailed in the statute. It prescribes standards of conduct of registrants and the pro- cedure whereby such conduct may be inquired into, with the power to suspend or revoke registration for violations of the law. A complete system of review by the courts of the procedure of the commission and its decisions in the con- sideration of applications and proceedings to deny, suspend and revoke registration is prescribed. A number of minor regulations of registrants, as well as the more important standard of conduct applicable to them, are set forth in de- HISTORY AND OBJECTS OF REAL ESTATE LICENSE LAW tail. Finally, penalties, consisting of fines, imprisonment, and the loss of commissions for violations of the statute are included. The foregoing will be discussed in detail in later chapters. CHAPTER III THE COMMISSION, ITS JURISDICTION, POWERS AND DUTIES 3.01 Creation and organization 3.06 Powers of investigation. of the commission. 3.07 Powers of commission to 3.02 Chairman. enact by-laws, rules and 3.03 General duties and powers regulations, and decide of the commission. questions of practice; cer- 3.04 Specific duties and powers. tain rules. 3.05 Offices. 3.08 Education. 3.01 Creation and organization of the commission.- The real estate license law is administered and enforced by the Florida real estate commission, which is a body set up by the real estate license law for its enforcement. The commission is composed of three members, who must be resi- dents of the state of Florida, and who for ten years have fol- lowed the vocation of a real estate broker. They are appoint- ed by the Governor of the state for terms of three years, one being appointed each year. They serve until the expiration of the term for which they have been appointed, and until their successors have been qualified. One term expires each year, and upon death, resignation or removal of a member, his successor is appointed for the unexpired portion of the term. As a new member is appointed from year to year, the com- mission reorganizes and selects from its number the chair- man, who is executive officer of the commission. Two mem- bers of the commission constitute a quorum to do business. 475.02, F. S. The commissioners receive, for their services, ten dollars per day while attending meetings, not to exceed twelve per year, and are paid a per diem, mileage and cer- tain other expenses in traveling and attending to their duties. 475.08, F. S. 3.02 Chairman.- The chairman's duties and powers are continuous and ex- tend to all those of the commission itself, except making final decisions on informations filed before the commission and the making of rules and regulations. 475.03, F. S. These duties and powers are to be exercised, however, consistent with the law and the policies, rules, regulations and directions of the commission. The commissioners, at their reorganiza- tion meeting, appoint a secretary. The secretary and all THE COMMISSION, ITS JURISDICTION, POWERS AND DUTIES other agents of the commission are employees, and they are subject at all times to the directions and orders of the com- mission and the chairman. 475.02, 475.09, F. S. 3.03 General duties and powers of the commission.- The commission's powers are administrative, and include executive, quasi-legislative, quasi-judicial and ministerial duties and powers. Among the executive powers is included the investigation of complaints against brokers and sales- men, as well as all matters coming to the attention of the commission, which indicate that the license law is probably being violated, and otherwise executing the provisions of the law. 475.04, F. S. Its quasi-legislative powers are exer- cised in the passage of rules and regulations, which, to be valid, must relate to and be within the scope of the law, and not inconsistent with the Constitution and laws of the United States or of the State of Florida. 475.05, F. S. Its quasi-judicial powers are exercised when it decides that an application for registration shall be granted or denied or that a registration shall be suspended or revoked. 475.29, F. S. It is performing ministerial duties when it keeps the records required, maintains its offices, and does or causes to be done the numerous clerical and routine matters that arise in the daily course of business. 475.04, 475.11, 475.12, F. S. The actual, physical doing of the clerical work of the commission is by the secretary, attorneys, and other employees of the commission, always, of course, at the direction and under the jurisdiction of the chairman and commissioners. 3.04 Specific duties and powers.- Some of the specific duties and powers have been herein- above enumerated. The commission is required to have a seal, which, when affixed to certificates and to rules and regulations, imports that they are official, true and correct. 475.10, F. S. It is required to keep minutes of its meetings, records of registration and the issuance of certificates, all of which a,'e required to be made and kept on file. 475.01 (4), F. S. Upon request, the chairman is required to give certificates under his hand and the seal of the commission, stating what the records show or fail to show about any offi- cial matter. 475.10, F. S. Its investigations and files concern- THE COMMISSION, ITS JURISDICTION, POWERS AND DUTIES ing the same, however, are confidential until such time as an information (hereinafter described) is filed. 475.06, F. S. 3.05 Offices.- The commission is authorized to establish executive offices anywhere in the state that it may select. 475.07, F. S. The offices were originally established at Orlando and have re- mained there. The principal reason for this location is that the cost of the administration is less there, as well as the expense incurred by those finding it necessary to visit the offices, because of its geographical location in the state. The center of registration is a short distance south of Orlando, it being the nearest city of any considerable size to that center. 3.06 Powers of investigation.- The commission is given power to conduct investigations to determine whether persons not registered are operating as brokers or salesmen, and may, either upon complaints filed or upon its own motion, investigate the past conduct of applicants and of transactions and conduct of brokers and salesmen, where there is reason to believe that they have violated the law, or that grounds for revocation or suspen- sion of their registration may exist. 475.04, 475.18, 475.26, F. S. In order to carry out these provisions, the commission may appoint investigators and examiners, and is empowered to demand information and records from applicants and reg- istrants, and to issue subpoenas directed to anyone thought to be in possession of material knowledge, records or docu- ments. 475.09, 475.18, 475.32, 475.42(1)(h)(i)(j), F. S. The investigators of the commission, in the execution of their duties of investigation, are not empowered nor permitted to express any personal opinions they may form as a result of their investigations. It is simply the duty of the investigator to investigate the matter thoroughly, and report findings of his investigation to the commission, which will make the final determination of the issues. 3.07 Power of commission to enact by-laws, rules and regulations, and decide questions of practice; cer- tain rules.- The commission is empowered to enact by-laws, and rules and regulations in the exercise of its powers, not in conflict THE COMMISSION, ITS JURISDICTION, POWERS AND DUTIES with the Constitution and laws of the United States or of this State. The commission may decide questions of practice arising in the trial of an information having regard to this law, and the rules and regulations then in force. 475.05, F. S. Written copies of such rules and regulations under the seal of the commission are prima facie evidence of their existence and substance, and the courts judicially notice printed copies of such rules and regulations. 475.05, 475.10, F. S. Rules and regulations, to be effective, must be filed with the Sec- retary of State of Florida, in the manner and form prescribed in 120.10 to 120.16, F. S. To be valid, they must relate to, and be in aid of, some duty or power of the commission, or in accordance with the expressed intent of the Legislature. Some miscellaneous regulations which have to do with the actual operation of a real estate brokerage business and of- fice are as follows: "301.01 Title.-It shall be deemed fraudulent and dis- honest dealing for any broker or salesman to sell or offer for sale any property where he has notice that the title is not merchantable or upon which he has notice that a mort- gage or other lien exists, and about which he fails to inform the purchaser before any portion of the purchase price is paid. "301.02 Mortgage releases.-It shall be deemed fraudu- lent and dishonest dealing for any broker or salesman to knowingly sell or offer for sale any property which is cov- ered by a mortgage which also covers other property sold, unless the particular property sold or offered for sale may be released from the mortgage at any time before foreclosure sale, upon payment of an amount less than that remaining due from the purchaser after the sale. "301.03 Promises to re-sell.-It shall be deemed fraudu- lent and dishonest dealing and false promises for any broker or salesman to procure, induce or influence any person to buy property, by promising, representing or guaranteeing that he, his employer, or the owner will re-sell or repurchase the property at any future time. Proof that such promise, representation or guarantee has been strictly performed shall be received, however, as evidence that such conduct was not fraudulent or dishonest. 0 THE COMMISSION, ITS JURISDICTION, POWERS AND DUTIES "301.04 Lotteries.-Lotteries and schemes of sale involv- ing selling of certificates, chances or other devices whereby it is represented that the purchaser is to receive property to be selected, in an order to be determined by chance, or by some means other than the order of prior sale, or whereby property more or less valuable will be secured according to chance, or the amount of sales made, or whereby the price will depend upon chance or the amount of sales made, or whereby the buyer may or may not receive any property, are declared to be methods by reason of which the public interests are endangered. It shall be immaterial that the scheme is actually carried out, or intended to be carried out, by some other means than chance. "301.05 Free lot schemes. Plans or schemes through which the public is invited to solve puzzles or sign cards upon the pretense of a drawing in order to receive property free or at a nominal price, or at cost, and all schemes which pretend to be, but are not actually, lotteries and drawings, or where the persons answering advertisements, giving their names or signing cards, are told that they may be selected to receive property free or at a reduced price, or at cost, are declared to be clans of selling, by reason of which the interests of the public are endangered. "301.06 Equity trading.-Any plan or scheme whereby the public is invited or induced to trade their equities in property for other property or equities therein, or are other- wise induced or advised, to the advantage of another, to commit a breach of a contract to purchase, or to pay for property already purchased, or are induced or advised to surrender equities in exchange for certificates or contracts to be applied in the future on the purchase of other property, is declared to be a plan of selling, by reason of which the interests of the public are endangered. Provided, however, that this section shall not apply to readjustment made with, or by the consent of, the vendor of the property in which the equity-holder originally invested. "302.01 Recommendations of applicant. Every appli- cant for registration shall be required to have his application accompanied by an affidavit, fully executed, on a form prescribed by the commission, and sworn to by a real estate broker who is at the time, and has been during at THE COMMISSION, ITS JURISDICTION, POWERS AND DUTIES least five years of the next preceding ten years, registered as a real estate broker in Florida, and who is at the time, and has been during each of said five years, engaged prin- cipally in active practice as a real estate broker in this state, and who, based upon his personal knowledge of the appli- cant, or from sufficient investigation made in good faith, shall make oath that he believes that the applicant is quali- fied, and that he has no reason to believe that the applicant has been guilty of any act or conduct, not disclosed in the application or affidavit, that might be grounds for denying the application. No broker shall be qualified to make the said affidavit if there shall be, at the time, an information pending seeking the revocation or suspension of his registra- tion, or a pending injunction proceeding by the commission, based upon alleged violations of the law, against him, or if the broker is under a suspension, or has been under suspen- sion within the next preceding five years, or there is pending against him a complaint which, together with so much of the investigation as has been completed, appears to allege probable grounds for revocation or suspension of his regis- tration, nor shall any person operating or connected with any school purporting to give instruction for compensation to students of real estate law or practice be eligible to make said affidavit. "302.02 Procedure on application.-If an application shall be filed without a bona fide attempt to comply with rule 302.01 hereof, the application and fee shall be forth- with rejected and returned to the applicant. If a bona fide attempt has been made to comply with the rule, but the affidavit is not fully and satisfactorily executed, or the affiant is not qualified to make the affidavit, the application and fee shall be accepted, but the applicant shall be sent another blank affidavit, together with the reasons for rejection, and he shall be given a period of twenty days within which to file a properly executed affidavit. Additional time may be given for the filing of a proper affidavit upon an application timely made, if the last one filed shows the failure to comply with the rule was not intentional. "302.03 Discretionary waiver of rules.-If an applicant shall make it appear to the commission or to the chairman, that he has been recently discharged from the Armed THE COMMISSION, ITS JURISDICTION, POWERS AND DUTIES Forces of the United States, or of a regular organization recognized as an auxiliary to the said Armed Forces, and was separated therefrom under honorable conditions, and by reason of lack of acquaintance with any qualified broker is unable to procure an affidavit complying with rule 302.01 hereof, the chairman or the commission may waive strict compliance with said rule and permit such substantially equivalent showing by the applicant as shall be reasonable. "302.04 Disqualification of recommending broker.-If it shall appear that any broker has recommended two or more persons for registration who shall have committed any acts warranting revocation, suspension, or reprimand within two years after registration, the circumstances sur- rounding the making of the affidavit shall be investigated, and if it shall appear that the recommending broker has been guilty of fraud or carelessness in making any recom- mendation, he shall be disqualified from making like affi- davits until further order of the commission. If one broker or firm of brokers shall be found to have made numerous affidavits, like investigation shall be made from time to time, and such broker or firm, shall be disqualified unless it shall appear that he or they have made such recommendations with due care, and in good faith." 3.08 Education.- The law requires the Florida real estate commission to foster the education of real estate brokers and salesmen con- cerning the ethical, legal and business principles which should govern their conduct. This provision is met in part, by the requirement of examination for applicants for bro- ker or salesman's registration. The publication of this hand- book is another means of education of real estate brokers and salesmen, and from time to time, the commission may con- duct or cause to be conducted seminars in various parts of the state for the enlightenment of registrants in the ethical, legal and business principles which should govern their conduct. The commission also issues a quarterly publication, which contains information concerning the activities of the commission, as well as new rules or changes in the law which affect registrants or applicants. CHAPTER IV REGISTRATION REQUIREMENTS 4.01 Definitions. 4.10 Corporation not for profit. 4.02 The meaning of registra- 4.11 Corporations sole. tion. 4.12 Partnerships. 4.03 Rights conferred. 4.13 Limited partnerships. 4.04 Form of certificate. 4.14 Joint adventures. 4.05 When certificate is void. 4.15 Business trusts. 4.06 Effect of certificate. 4.16 Unincorporated associa- 4.07 Effective date of certificate. tions. 4.08 Joint business relationships. 4.17 Trade and fictitious names. 4.09 Corporations for profit. 4.01 Definitions.- Registration shall consist of the placing and keeping on record of the name and business address of the registrant, and, if a salesman, the name and business address of the em- ployer also, in the list of brokers and salesmen maintained in the offices of the Florida real estate commission. 475.01 (4), F. S. A registration certificate, or certificate, is a written instru- ment (in practice a pocket card), issued by the Florida real estate commission, certifying that the registrant named therein is or was duly registered and in good standing for the license year indicated therein. 475.01(10), F. S. The certificate is stamped with its effective date, and expires on September 30 next after such effective date. The license year is the fiscal year beginning on October 1, and ending on September 30 next. 475.01(6), F. S. 4.02 The meaning of registration.- While the words "registration," "registrant," and "regis- tered," are frequently used to refer not only to the strict im- plication of the words, but to include also the idea that a current registration certificate has been issued, that is not the true meaning of the words. Registration is a status which gives the right to obtain a registration certificate, upon proper request. It implies that the person has passed all of the tests required by law; that the status has not been revoked, and has not been abandoned. The right to obtain a certificate need not be a present right, for a person whose registration is under suspension is a registrant though he cannot use his REGISTRATION REQUIREMENTS present certificate or obtain another until the expiration of the period of suspension, and he has been reinstated. Reg- istration is terminated if a certificate is not properly re- quested within thirty days after notice that the applicant has passed his examination or is exempt from taking the examination, or within six months after the expiration of the last certificate issued, or is terminated by an order of the commission revoking it, or if the registration of the regis- trant has been suspended and he fails to petition for a re- issuance of his certificate within six months after the termi- nation of the license year in which the term of suspension expired, in the manner and form required by 475.31(6), F. S. 4.03 Rights conferred.- Registration alone does not authorize anyone to act as a broker or salesman. 475.01(4), F. S. Its sole effect is to entitle the registrant to a certificate, upon receipt by the commission, from him, of a request in proper form. To act lawfully as a broker or salesman, the registrant must have a current reg- istration certificate, which is legally in force. A common error, or at least a pretended error, is that the law always gives the registrant six months in which to renew his registration. This is true only if the registrant is not operating during that period. When a broker or salesman actively engages in his profession, his acts on and after October 1 are unlawful unless he has renewed, and he is subject to the penalties of the law. 475.42(1) (a), 475.42(3) (b). These penalties may be exacted only by some action of the courts, and the com- mission must honor the request for renewal if it is received before midnight of March 31, succeeding the expiration of the last certificate, unless registration has been revoked or suspended for violation of the law, 475.20, F. S. Although continued operation without a valid certificate would be a ground for a prosecution before the commission seeking to suspend the registration, it is noted that to legalize the acts of the registrant, it is not necessary that he shall have received the certificate, but only that the commission has received his request for the certificate in proper form, and the fee has been paid. REGISTRATION REQUIREMENTS 4.04 Form of certificate.- The commission prescribes the form of the certificate, and may change it from time to time. At present, it bears a fac- simile of the signatures of the members of the commission, and the seal of the commission. It also contains the name and business address of the broker, and, if issued to a sales- man or broker-salesman, it contains the name and business address of the employer. If the party is registered as an offi- cer or director of a corporation, or is a partner, the name and business address of the corporation or partnership is includ- ed. The date of expiration and the date of issuance are also noted. If a broker's certificate, it is plainly marked as "active" or "non-active." A non-active certificate gives no right to operate as a broker. 475.01(10), 475.14, F. S. 4.05 When certificate is void.- A certificate is void after registration has been revoked, and is ineffectual to confer new rights while registration is suspended, though it appears on its face to be in force. If a broker moves his office to a new address, the certificate is no longer in force. The commission has given this provision a reasonable interpretation, so that the mere removal from one room to another in the same office building does not in- validate a certificate as the act is construed to refer to a street or building address in cities and towns that employ such designations. In small villages where addresses are not com- monly given by such designations, the village is the address, and the removal to another location in the same village does not amount to a "change of address." In unincorporated places, the name of the Post Office is the address, and a change is not recognized unless the registrant changes his Post Office address, or if located outside of a town or city having street addresses he moves into it and acquires a new address. If a salesman ceases to be employed by his regis- tered employer, or the employer changes his business ad- dress, the certificate of the salesman becomes void. If a reg- istration certificate shall cease to be in force in the case of a broker changing his business address, or a salesman chang- ing his employer, the old certificate shall be surrendered or accounted for and a new certificate shall be issued upon re- quest therefore on a form provided by the commission, and REGISTRATION REQUIREMENTS the fee for the issuance of the new certificate is $5.00. If a registrant ceases to be an officer or a director of a corpora- tion, the certificate issued to him in that capacity becomes void, and the certificate of the corporation or partnership is automatically suspended, until all necessary members, officers and directors have proper certificates. A certificate of a corporation or partnership also becomes automatically suspended if any of the officers, directors, or members do not have certificates in force. The registration of a salesman becomes automatically suspended if the registration of his employer is revoked or suspended, but he is entitled to re- ceive another certificate as soon as he acquires a new em- ployer. Generally, see 475.15, 475.23, F. S. 4.06 Effect of certificate.- In any court proceeding, a certificate is prima facie evi- dence that the party named therein was entitled to the rights and privileges that the law gives to the holder of that class of certificate after the date of issuance, and until the date of expiration. 475.01(10), F. S. This means that if it is put in evidence, it is sufficient, in the absence of other proof, to show that fact. If it was issued through error, or if it becomes void or suspended by reason of any of the facts shown in the preceding paragraphs, and this appears sufficiently from other evidence, the prima facie case will be destroyed. If the certificate is lost, or the registrant does not wish to put it into evidence, he may obtain a special certificate, setting up the history of his registration, upon request to the com- mission, and this is admissible, with the same effect. 475.10, F. S. Such certificates relating to the registration of anyone may be obtained and used in evidence by any other person who requires it, under the foregoing section of the statute. 4.07 Effective date of certificates.- The first certificate is stamped as of the date registration is granted. The applicant should, therefore, not commence operations until he receives his first certificate. When a re- quest for renewal certificate is received in proper form and accompanied by the proper fee, the request is stamped as of the date of receipt of the request, 475.01(10), F. S., and when the certificate is issued, it bears that date rather than the actual date of issuance, as the law permits the registrant REGISTRATION REQUIREMENTS to operate after he has made the request in proper form and the fee has been paid. 475.21, F. S. In the case of a salesman's request for renewal and payment of fee, his certificate can- not be renewed, unless or until his employing broker's cer- tificate has been renewed. In the event of a reissue upon a change of address or a change of employer, the effective date of the certificate is also the date on which the request in proper form plus the proper fee reaches the office of the commission. Upon re-issue of a certificate, for any reason, the old certificate or an affidavit of loss to take its place, must be sent in with the request for the re-issue, by rule of the commission. 4.08 Joint business relationships.- A real estate broker should understand the various legal relationships that he may at some time assume with other brokers, and the relationship that those with whom he deals have assumed. It is important for the protection of the bro- ker and for those entitled to his protection, that he knows the legal status of those for and with whom he deals. When two or more persons are associated in business, the law rec- ognizes corporations for profit, corporations not for profit, corporations sole, unincorporated associations, partnerships, limited partnerships, and joint adventures. When none of these exist, each party is dealing as an individual. Aside from the purely legal aspects of his relationships, the bro- ker should also understand the registration requirements in regard to such arrangements or organizations. 4.09 Corporations for profit.- Corporations for profit are artificial persons, created by the law, upon compliance with certain requirements of the stat- ute. Upon the filing of a proposed charter, in the form re- quired by statute, the Secretary of State issues a certificate of incorporation which declares that the parties applying for the charter and their successors constitute a body cor- porate under the name set out in the charter, with the powers set out therein, and with the other powers which the statute gives to all corporations. The corporate life, which may be perpetual, or for the number of years set out, must be stated in the charter; but the corporation may be dissolved sooner by action of the stockholders, by the court in certain in- REGISTRATION REQUIREMENTS stances, or by failure to file an annual report or pay the an- nual tax imposed by the state on such corporations. Bank- ruptcy does not work a forfeiture of the charter, or operate to dissolve the corporation. The corporation may be formed for any lawful business, which should be carefully described; but there are special statutes on charters for some types of business such as banking, building and loan associations, railroad and other similar organizations. Corporations for profit are managed by a board of directors, acting through the officers, such as president, vice-president, secretary and treasurer, and sometimes by an executive committee. We have a statute which prohibits the use of the word "company" in a trade name or by a partnership or association, unless the words, "not incorporated," or "not Inc." immediately follow the name. Anyone dealing with a group of individuals vio- lating this statute, may treat them as a corporation or part- nership at his option. A corporation may be formed for the purpose of operating as a real estate broker, but it should be observed that a power to buy and sell real estate itself is not sufficiently broad to permit the corporation to be reg- istered, or to act lawfully as a broker. Of the several kinds of corporations permissible under the statutes, only the corporation for profit can be registered as broker under the real estate license law. When a corporation for profit is reg- istered as a real estate broker, the corporation itself holds registration and a certificate. Each of its officers and direc- tors must be classified as broker, at least one of whom must be personally qualified to be registered as active broker for the corporation. All the rest of the officers and directors must be either active or non-active depending upon their per- sonal qualifications. There is no requirement as to registra- tion of stockholders. 475.01(2), 475.15, F. S. 4.10 Corporations not for profit.- There is a general statute permitting corporations not for profit to be organized. The charter must be approved by the circuit judge, and is filed in the office of the clerk of the circuit court. They are not organized for the carrying on of commercial affairs, and, therefore, are not empowered to be real estate brokers. They may, however, buy, own and sell real estate in limited amounts, and may, therefore, be clients REGISTRATION REQUIREMENTS and prospects of brokers. Brokers are cautioned, however, to deal with them with caution, as their powers are limited and often governed by principles entirely different from those usually encountered. If the broker is to properly protect the public, he should never permit a client or prospect to buy property which has been held by such a corporation with- out seeking the advice of a competent lawyer. Our laws. permit the organization and operation of other similar bod- ies, such as cooperative associations, which often permit the doing of commercial business, but they cannot be registered as real estate brokers. Their power to convey, or to buy or sell, their own property, however, is usually very similar to that of an ordinary corporation. 4.11 Corporations sole.- A corporation sole is an ecclesiastic or church organiza- tion, still recognized in Florida. It consists of the bishop or appropriate clerical personage empowered by a church to hold title to the church property. The title descends to his successors in office, and not to his heirs. As mentioned in the preceding paragraph in regard to corporations not for profit, dealings with a corporation sole should receive the same care by a broker in that he should be fortified by a written opinion of a reputable and responsible attorney, experienced in such titles, before dealing in them. A corporation sole cannot be registered as a real estate broker. 4.12 Partnerships.- When two or more persons engage in business together, each agreeing, expressly or impliedly to share the profits and losses of the business, a partnership exists. The share of each partner need not be identical with that of another, nor is an investment of money in the business essential. One may in- vest money, and another may invest property, while still an- other may invest his skill, experience and industry. If there is a written contract between two or more parties, setting forth particularly their several rights and liabilities, ordi- narily little difficulty is encountered in determining whether a partnership exists. If the parties have undivided interests in the assets of the business, or if each is to be liable for the debts, there is, ordinarily, a partnership, but one is not neces- sarily a partner because he is to share in the profits of the REGISTRATION REQUIREMENTS business, for that may be merely a means of paying him for his services. Partnerships doing a real estate business must be registered and, as in the case of the corporation for profit, the partnership itself holds registration and a certificate. Each of the partners must be classed as broker, at least one of whom must be personally qualified to be registered as active broker for the partnership. All of the partners may be registered as active if they are personally qualified; other- wise they will be classed as non-active brokers. 475.01(2), 475.15, F. S. The parties ought to have no difficulty in de- ciding whether they are partners for this purpose, but if they are not in fact partners, and not registered as such, they should be careful not to act like partners. Brokers some- times share office space, which is permissible, but conduct their businesses separately. In such case, they should not use joint names, or operate under a trade name. They should have the telephone listed separately, use separate letter- heads, and clearly indicate their separate status, by indi- vidual signs, maintained in accordance with the license law and the rules of the commission. If they so operate as to give a false impression, they may not only violate the real estate license law, but may be liable for the debts or torts of each other. An "ostensible partnership," with all of the objections but none of the advantages of a true partnership, may be created by estoppel as to a person who deals with one or all of the parties, supposing that a partnership really exists. Under the law, such parties are held to be what they seem to be, at the option of the person deceived. One partner may bind the others on a transaction or on a contract or obliga- tion within the scope of the partnership business, and this is true as to an ostensible partner as well as a real one. The rule as to appearance does not work both ways, however, because a real partner will be liable for the dealings of an- other partner to a person who at the time did not know of the partnership. A partnership may not sue or be sued in the name of the partnership, nor may it acquire or convey title to real estate in the name of a partnership. All such transac- tions must be in the name of the partners, "doing business under the firm name of," whatever may be the trade name adopted. Under our law, a married woman may become a partner with her husband. A corporation is not permitted REGISTRATION REQUIREMENTS to go into partnership with an individual or with another cor- poration. A partnership may be dissolved by agreement, by death, or withdrawal of one party, or one partner may bring about a dissolution by court proceeding if an agreement to dissolve may not otherwise be obtained. Under the general law, the death or withdrawal of a partner works a dissolu- tion of the partnership, but under the rules and regulations of the commission this works no administrative change, but the commission must be notified so as to drop such party from the registration record, and add any new partner that may be admitted, seeing that he obtain an active or non- active certificate as may be required, or if registered, sur- render his certificate and have a new one issued showing his membership in the partnership. It is important to note that if any member does not hold the proper certificate, the certificates of the partnership and all members are auto- matically suspended until proper certificates for all are in force. 475.15, F. S. 4.13 Limited partnerships.- The statutes provide for the creation of limited partner- ships for carrying on any business of which an ordinary partnership is capable. Chap. 620, F. S. Such a partnership may be formed by filing a certificate containing the infor- mation specified by the statute with the Secretary of State, or by recording a certified copy with the clerk of the circuit court. Fees, based upon the invested capital, similar to cor- poration fees, are required to be paid. The statute also re- quires periodic reports by the partnership to the Secretary of State. There must be one or more general and one or more limited partners in order to qualify. The limited partner must make an investment of cash or other property, but not services. The surname of a limited partner must not appear in the name of the partnership unless the surname of a gen- eral partner is identical or a designation is attached, indicat- ing such limited partner, or the business had been carried on with the name before the limited partnership was created. If this regulation is violated, or a limited partner takes part in the control of the business, he becomes liable as a gen- eral partner; otherwise, he is liable only for any unpaid part of his contribution, as set out in the certificate, assets of the partnership in his hands, and any distribution made to him REGISTRATION REQUIREMENTS while the partnership is insolvent. Under the real estate li- cense law, a limited partnership doing business as a real estate broker can and must be registered as a broker. As in general partnerships, each partner must be registered as a broker, at least one of whom shall be active, although a limited part- ner cannot register as active, and, therefore, must be non- active. The advantages and disadvantages of this type of organization for the conduct of business, or as a real estate broker, remain to be demonstrated by experience. The in- come tax law treats such an organization as a corporation, and it and the partners are taxed accordingly. 4.14 Joint adventures.- A partnership is a relation intended to be permanent or for an indefinite duration, and for the purpose of carrying on a business. If, however, two or more parties enter into a like arrangement, limited to the transaction of only one or a limited number of contemplated business deals, it is a 'joint adventure" or a 'joint venture," and the parties are joint adventurers, and not partners. There is little differ- ence between the rights, duties and liabilities of partners and those of joint adventurers, except that one of the lat- ter cannot bind the others by contract or obligation concern- ing any new business or venture, but can bind the others where the contract or obligation may be reasonably implied as a contract or obligation of all in relation to the object of the venture. Real estate brokers often combine their efforts in pursuit of a prospect for the sale of a particular property, agreeing to divide the commission without regard to the one who is successful, or one may provide the listing and the other the prospect under such an arrangement. This is a joint adventure or joint venture. Unless these joint ad- ventures have such continuity as to lead to the conclusion that a partnership actually exists, the brokers are not re- quired to register except as individuals. While inconsist- ent with some of the powers and duties contemplated by the law, corporations frequently enter into contracts that amount to joint adventures. There is a possibility that a corporation that becomes a party to a joint adventure might be subject to action by the Attorney General, but no other persons ex- cept the stockholders could be heard to object. REGISTRATION REQUIREMENTS 4.15 Business trusts.- In the past, real estate transactions were handled frequent- ly through business trusts, or what has been called "Massa- chusetts Trusts," and also referred to as "common law trusts." In Florida and many other places they have also been called "syndicates." Usually, a number of persons will make invest- ments at a stipulated sum per "unit," and real estate may be purchased and usually developed for re-sale. The title to the property is taken in the name of a board of trustees. These trustees are a managing group which develops and sells the property, and finally distributes the profits, if any, among the holders of the "units." Common law trusts are regulated by chapter 609, F. S., and are required to file a copy of the declaration of trust with the Secretary of State and pay a fee of $150.00. The statute is silent as to the personal liability of the trustees or unit or share holders. However, it is unlawful for such a trust to do business in the state without registering with the Sec- retary of State, so that it is likely that all concerned will be liable as partners without such compliance, but otherwise, under the law, as held by courts of other states, only the assets of the trust can be reached to pay its liabilities; ex- cept that any person who has received any distributive share while it was insolvent, will be liable to the extent of the amount received. In order to lawfully sell any units or shares, as mineral or oil leases, the trust must have the approval of the Florida securities commission, and those who act in the buying and selling of its real estate, or mineral or oil leases, must also qualify with the real estate commission. 475.01(2), F. S. This naturally discourages the dishonest promoter, and other forms of organization appeal more strongly to the permanent and honest developer. Joint ad- venturers may take title in the name of one of the parties, and such transactions are often called "syndicates," but dif- fer from the common law trust in that the units are not sold to the public, the group usually being small and composed of business associates who are fully familiar with the pro- jected enterprise. Needless to say, a business trust is not an appropriate or convenient unit for registration as a bro- ker, but all of those who sell its property must be registered REGISTRATION REQUIREMENTS as brokers or salesmen. The profits are taxable for income taxes as though the trust were a corporation. 4.16 Unincorporated associations.- A group of persons associated together for a common pur- pose who are not partners, and who are not incorporated are an "unincorporated association." Such associations do not conduct commercial business, but often incur liabilities, as an association of property owners in a subdivision organized for the purpose of maintaining or promoting its beautifica- tion, planning and maintaining parks and even performing such functions as garbage removal. A member, in such cases, is liable for the debts as a partner, that is, as to creditors, each party is liable for all of the debts, but as to each other he is responsible only for his proportionate share in accord- ance with the agreed plan. Some associations such as church congregations may, through a trustee or board of trustees acquire, own and sell real estate. In such cases, the caution that has been recommended in connection with corporations sole and charitable corporations is strongly advised, and such associations are not qualified to register as broker un- der the license laws. 4.17 Trade and fictitious names.- An individual broker may use a trade name, and if so, it must be disclosed in a request for a certificate and be placed upon the certificate. 475.42 (1) (1), F. S. The trade name shall not be the name of a corporation or that of another registrant in the same territory. No person registered as an individual broker shall use the name of any partnership or corporation in his sign or on letterheads or in advertising in such manner as to indicate that he is operating a part- nership or corporation real estate brokerage business or that he is responsible for its operation. 475.42(1) (1), F. S. If properly identified, as such, however, the name of a part- nership or corporate owner, the property of which is being sold by the registrant, may be used on signs, letterheads or advertising. Under another law, trade-names are required to be advertised and registered with the clerk of the circuit court, whether used by an individual or as a firm name. 865.09, F. S. This law concerns not only real estate brokers, but anyone doing business under a trade or fictitious name, REGISTRATION REQUIREMENTS not his own, and while the law has not been pronounced constitutional by the supreme court, and there is some doubt of its validity, at least in part, it should be complied with until and unless it is declared unconstitutional. The actual name of the individual is not a trade-name, and the name of individuals, if not obscured by such words, and company," or "sons" or such indefinite verbiage, are neither trade nor fictitious names. CHAPTER V DETAILS OF REGISTRATION AND CERTIFICATES 5.01 Obtaining registration. 5.04 Examinations. 5.02 Preliminary steps- 5.05 Nature of examination. individuals. 5.06 Procedure after exami- 5.03 Disposition of application, nation. 5.01 Obtaining registration.- The first step towards obtaining registration as a broker, or salesman, is the filing of the proper application. Since the passage of the 1957 amendment to 475.17, the initial re- gistration of all applicants must be for salesman's registration because no person can be registered as a broker unless he has served an apprenticeship as a salesman. An applicant for salesman's registration must take the salesman examina- tion. Only a salesman who has completed his apprentice- ship will be permitted to apply for broker registration and the broker examination is given only to applicants for broker registration. The apprenticeship requirement, however, is not applicable to persons applying for a non-active-broker registration status as the non-active officer, or director, of a corporation, or non-active member of a firm. Registration and obtaining a registration certificate is not to be confused. Registration confers only eligibility to obtain a registration certificate, whereas, the registration certificate itself confers the right to perform services as a salesman, or broker. Once an applicant has been registered, he must thereafter apply for and obtain his registration certificate before performing any service as a broker, or salesman. 5.02 Preliminary steps-individuals.- The application of a natural person for active registration, whether he expects to operate alone, or as a partner or with a corporation, or as a salesman, is governed by substantially the same rules and forms. His application must show that he has the necessary personal qualifications, that is to say, that he is not under disability of minority: that he is a citizen of the United States: that he is a bona fide resident of the State of Florida. If the aoplication is for salesman's registra- tion, it must also show that he has been a resident of the State of Florida for the six months period next preceding the filing of the application, or that he has operated exclusively DETAILS OF REGISTRATION AND CERTIFICATES as a real estate broker or salesman for a period of at least two years next prior to filing his application in a state requiring registration. If the application is for broker registration, it must further show that the applicant has been a bona fide resident of the State of Florida for a period of one year next prior to filing the application and that the applicant has ope- rated as a registered real estate salesman within the State of Florida for a period of one year next prior to filing the appli- cation. The application must be accompanied by the appro- priate filing fee, which at present is $15.00 for salesman, and $25.00 for broker. In addition to the foregoing, the applicant must make it possible to immediately begin the inquiry as to whether he is honest, truthful, trustworthy, of good character and bears a good reputation for fair dealing, and will likely make transactions and conduct negotiations with safety to investors and to those with whom he may undertake a rela- tion of trust and confidence, by disclosing his business ad- dress, if self-employed, and the names and addresses of all persons or firms by whom he was employed, if he was not self-employed, during the last five years before filing his application, and by giving as references seven reputable persons, four of whom shall have known him for the last five years or more before filing the application and three other persons who are residents of and doing business in the State of Florida, all seven of whom shall know the ap- plicant and his reputation sufficient to attest to his character, reputation and competence, waiving any right of action against them by reason of their answers to inquiries pro- pounded by the commission, and he is required to disclose whether he has ever been convicted of a crime, or if any criminal proceeding is pending against him, or if any judg- ment or decree has been rendered against him in a case wherein the pleadings charged him with fraudulent or dis- honest dealings, or if he is now, or ever has been, an inmate of an insane asylum, or similar institution for the treatment of mental disabilities, or if he has ever gone under, been generally called by, or done business under any other name, or alias, than the name signed on his application, with suf- ficient information to enable the commission to investigate the circumstances. DETAILS OF REGISTRATION AND CERTIFICATES The regulations of the Commission concerning applications are set forth in 9.03 and in Appendix I. The term "bona fide resident" as used in Chapter 475 and the rules and regula- tions of the Commission, and elsewhere in this book means resident in its ordinary legal concept. The legal residence of an individual is determined largely by two elements: The first being intent and the second, the place of his domicile. The term residency is not synonymous with the words citi- zenship, address or domicile, though the fact of citizenship, address or domicile is some indicia of residency as being indicative of intent. Other indicia of residency would be filing a declaration with the Clerk of the Circuit Court, re- gistration to vote, filing for homestead exemption, registration of automobile, driver's license, church affiliation, filing tan- gible and intangible tax returns, and declarations of residency in legal documents, though none of these would be conclusive. 5.03 Disposition of application.- When the application is received by the commission with the proper fee, it is examined to determine whether all the information is properly given. If in error, or if the applicant has failed to fill out and answer all the questions, he is asked to make correction. If he fails to make correction within 20 days, or such further time that is granted, the application is denied without prejudice to the making of a new applica- tion. If the application is approved as to form, the refer- ences are then written, and the records of the commission which contain certain information gathered during the life of the commission, including lists of those who have been denied, revoked or suspended in other states, are consulted. If the references answer favorably and the records do not show any reason for further investigation, the application is tentatively approved. If, however, the application and re- port of the references fail to show on their faces that the applicant is qualified, the application is denied without fur- ther proceedings, as it is necessary for the applicant to make a prima facie showing that he possesses the necessary quali- fications. If, however, suspicious statements of some of the references or other matters brought to the attention of the commission cause it to entertain doubts concerning the ap- plicant, further proceedings on the application are suspend- DETAILS OF REGISTRATION AND CERTIFICATES ed until a thorough investigation is made, after which the application is either approved or "an information" setting up charges is ordered filed and served on the applicant and he is given at least twenty days in which to file an answer. If the answer does not satisfy the commission, an examiner is appointed to take and report the testimony. In such cases, the burden is on the applicant to prove that the charges are unfounded, because he is required by law to show that there is no good reason why he should not be registered. Other- wise, he has all the rights of any litigant to a proceeding in the courts. He may appear in person, or by counsel or both, have process for witnesses in his favor and may cross-exam- ine those appearing against him. After all the testimony is taken, it is filed with the commission, considered by it in the light of arguments submitted either by briefs or orally and the commission finally makes an order granting or denying the application. If the order denies registration, the appli- cant may appeal to the circuit court of the county from which he seeks to be registered, and the losing party in that court may ask the supreme court to review the matter on appeal. The procedure concerning the disposition of the application is reasonable and every applicant is given ample opportuni- ty to show that he possesses the qualifications required by the law in order to be registered. Time limits, however, for each step in completing the application are given and the applicant should, therefore, exercise care in supplying the information required in the application form or subsequent thereto. 5.04 Examinations.- The tentative approval of an application, whether origi- nally or after a trial on an information, does not necessarily mean that an individual active registration will be granted. Under 475.19, F. S., the applicant is required to stand an examination. Written examination is required of all original applicants, both broker and salesman, but under the present rule of the commission, if an examination has theretofore been taken and passed in Florida within the five year period immediately prior to the filing of the application for that class of registration, the applicant is exempt from examina- tion, unless, during that time a prior registration has been revoked or suspended. While the examinations for broker DETAILS OF REGISTRATION AND CERTIFICATES and salesman are basically the same, that is to say, they cover the same material and it is necessary that a salesman know substantially the same things as a broker in this business, the broker's examination is considerably more difficult to pass than the salesman's examination. The rules fix the pass- ing grade. The examination is written in ink, and care is taken that the person who grades the paper does not know the identity of the applicant who is identified to him only by number. The name of the applicant is only on a slip cover of the examination paper, and the cover and the examina- tion itself have corresponding numbers. The examinations contain several different types of questions. There may be on one examination narrative, problem, multiple choice and completion type questions, and also most examinations will contain questions involving figures ranging from simple arithmetic to determining amounts of acreage, interest, and descriptions of property. The examinations over a period of years have come to be geared to the question of whether the applicant has a practical understanding of the material contained in this book issued by the commission, and, con- sequently, a practical understanding of the principles of the real estate business, rather than a mere memory test. While the Florida real estate license law is basically similar to li- cense laws in many other states, the details are considerably different. The examinations are not meant to be easy, nor difficult, but are meant to find out whether the applicant is competent and able to handle business deals, customarily handled by brokers, with safety to the people with whom he deals. This is because a loss sustained by someone deal- ing with the real estate broker or salesman is no less a loss because the broker or salesman attempts to show that it is the result of either ignorance or carelessness. The questions, therefore, seek to find out whether the applicant is familiar with the registration and other details of the law, the tools of the business such as the phraseology and words, together with the various instruments that are commonly used in the business, and whether he is familiar with the duties imposed upon him by the laws applicable to brokers, under which he will operate. Examinations are administered at the discre- tion of the commission. The applicant is instructed as to when and where he may take the examination when notice DETAILS OF REGISTRATION AND CERTIFICATES of tentative approval of his application is sent to him. He then has six months from the time of the notification of ten- tative approval of his application in which to appear for the examination. If he fails to take the examination within six months of such time his application will be denied without prejudice, unless the commission, within said six months, for good cause shown, extends the time. 5.05 Nature of examination.- The commission has no interest in the ability of the bro- ker or salesman to sell real estate. His limitations or failure in this regard is not a ground for denial, revocation or sus- pension of his registration, and his ability to sell cannot be demonstrated by his answers to questions, as his ability in this direction will be determined by actions rather than by words. The commission is charged with the duty of qualify- ing applicants and excluding those who do not know the duties that the law and practice impose upon them. It is not sufficient to say that they can or should consult an at- torney about these matters, as every citizen comes into intimate contact with the law at every turn in any business, and he has neither the time nor the money to consult a law- yer about all his relations with others. A person holding a registration certificate from the real estate commission is holding himself out as an expert in the field of real estate, and he should not only know that he must not commit fraud, but if his knowledge is to benefit him and those with whom or for whom he deals, he ought to know the nature of fraud and be acquainted with some of the conduct which has been declared to be fraud. Since he deals with contracts, deeds, abstracts, mortgages and such in his everyday work, he should have at least an elementary knowledge of them. Drafting of legal instruments should be left to those who are skilled at that work, and can be held responsible for the per- fection or proper use of the instruments, if he assumes to disregard this admonition. As a purely practical benefit to the registrant himself, his knowledge of such things of which people presume him to be cognizant in the business will be helpful to him in his business and will engender confidence in the people with whom he deals. The revocation or sus- nension of registration is not the best protection for the pub- lic, and it is much better to see that the public is not injured DETAILS OF REGISTRATION AND CERTIFICATES through ignorance of the broker or salesman in these mat- ters than to revoke or suspend his registration after the dam- age has been done through such ignorance. 5.06 Procedure after examination.- If the applicant fails in the examination he is permitted to file a new application immediately, though he will not be permitted to take another examination within sixty days fol- lowing the prior examination. The commission, under a pres- ent rule, permits tentative approval of a second application without further references, if made within six months after ap- proval of the first application. The fee paid, however, can- not be returned after it has been accepted and paid into the state treasury because of this or any other reason unless the commission has committed an error in its acceptance. After an applicant has passed an examination he is served with notice of passing and provided with a form on which to give the commission the information necessary to set up the registration. This instrument is called a request form and after the information is received by the commission the form is treated as a request for issuance of a certificate. If the examination is passed near the end of the license year or during the month of September, and the applicant re- frains from all real estate operations and requests that his certificate be issued for the succeeding year, then issuance of his certificate will be held up until October 1, at which time an affidavit must be filed stating that the applicant has not operated or attempted to operate during the preceding twelve months. If some information has reached the com- mission which might cause a reconsideration of his applica- tion, there is a further investigation of the matter, and per- haps a denial proceeding if the facts seem to warrant it. An application must be deemed to be under investigation or con- sideration until the first certificate is issued, and the notice of passing will state clearly that the applicant should not commence operation until he actually receives his first cer- tificate. Contact Us | Permissions | Preferences | Technical Aspects | Statistics | Internal | Privacy Policy © 2004 - 2010 University of Florida George A. Smathers Libraries.All rights reserved. Acceptable Use, Copyright, and Disclaimer Statement Last updated October 10, 2010 - - mvs