Central Florida Commercial Association of REALTORS® - FREC Administrative Rule on Receipt Deposit Legal Update

FREC Administrative Rule on Receipt Deposit Legal Update

Change to Administrative Rule:

Effective June 21, 2010 the Florida Real Estate Commission has amended the administrative rule regarding the time period a broker must make written request to the title company or attorney to provide written verification of receipt of the deposit. Previously brokers were required to make the inquiry within three days, however that time period is now ten days. The amended text is as follows:

61J2-14.008 Definitions.
(1) through (2)(a) No change.
(b) When a deposit is placed or to be placed with a title company or an attorney, the licensee who prepared or presented the sales contract (“Licensee”), shall indicate on that contract the name, address, and telephone number of such title company or attorney. Within ten (10) three (3) business days after each deposit is due under the sales contract, the Licensee's broker shall make written request to the title company or attorney to provide written verification of receipt of the deposit, unless the deposit is held by a title company or by an attorney nominated in writing by a seller or seller's agent. Within ten (10) business days of the date the Licensee's broker made the written request for verification of the deposit, the Licensee's broker shall provide Seller's broker with either a copy of the written verification, or, if no verification is received by Licensee's broker, written notice that Licensee's broker did not receive verification of the deposit. If Seller is not represented by a broker, then Licensee's broker shall notify the Seller directly in the same manner indicated herein. (3) No change.

Clarification on Licensure Status under DBPR records:

The Director of the Division of Real Estate provided an explanation of “current inactive”. This has been a popular question. The director said that “current” means all their CE hours are up to date and that they have paid their license fees on time. Inactive means the sales associate is not currently working for a broker. In this instance, therefore, if they affiliate with a broker then they will be eligible to practice real estate immediately following DBPR's processing of that update.

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