FREC Disciplinary Authority
Definition
FREC has the authority to impose fines and other disciplinary actions on licensees who violate real estate laws and rules.
Example
A licensee is found guilty of commingling client funds with their own personal funds. FREC can impose a fine of up to $5,000 for this violation and potentially suspend or revoke the licensee's license.
Exam Tip
Know that FREC has disciplinary authority and can impose fines. Remember the maximum fine amount ($5,000 per offense). Understand that disciplinary actions can range from fines to license revocation.
Related Practice Terms
Escrow Account Management
Brokers in Florida have strict responsibilities for managing escrow accounts, including monthly reconciliation and proper handling of trust funds.
Record Keeping Requirements
Florida brokers are required to maintain transaction records and escrow records for a minimum of five years.
Commingling and Conversion
Commingling is the illegal act of mixing client trust funds with a broker's personal or business operating funds; conversion is the misappropriation of those funds.
License Renewal Requirements
Florida real estate licenses must be renewed biennially, and sales associates have specific post-license education requirements for their first renewal.
License Requirements
License requirements are the mandatory qualifications—including pre-licensing education, examination, and background checks—that a person must satisfy before legally practicing real estate. These requirements are established and enforced by each state's real estate commission.
Continuing Education
Continuing education (CE) refers to the ongoing coursework that licensed real estate professionals must complete during each renewal cycle to maintain an active license. CE ensures agents stay current with changes in laws, regulations, and industry practices.
Frequently Asked Questions
Test Your Practice Knowledge
Practice with exam-style questions to make sure you can apply FREC Disciplinary Authority and other practice concepts.