The New FREC 61-J2 Rule on Team or Group Advertising

Does Your Team or Group Name have an illegal or forbidden term?

What it really means

The Florida Real Estate Commission (FREC) is discussing what is probably the last draft on new 61J2 – 10.026 team or group advertising rule. My estimate is that this new rule will be voted on and passed in next month's (September's) meeting.

This has been in work for a long time. I myself heard the commission discussing this issue in a commission meeting almost 2 years ago. 

 The reason for this rule change is because the commission had felt that many sales associates and broker associate were stepping way over the line for too long of a time with regards to the way they present themselves to the general public. 

Only a broker is allowed to name themselves, and market themselves to the public as a real estate business. Sales associate and broker associate may only do business under their own name. And it needs to be the name that they have registered with the DBPR. 

 The Florida Real Estate Commission believed that many team names were actually the name of a real estate business (which is not allowed). They had been receiving numerous complaints from consumers who did not know who they were working with or what brokerage. 

Some of the complaints were that they did not know with who on what team they were working with and they had no idea who showed up to the appointment. 

 And I want to remind you that the only thing that the Department of Business and Professional Regulation (DBPR), the Division of Real Estate (DRE), and the Florida Real Estate Commission (FREC) care about is the general public. They do not care about real estate licensees. 

When the general public starts complaining about licensees too much, the commission is going to do something about it. 

 So here are the new rules on Team or Group Advertising: 

1. Team or Group Advertising shall mean a collective name or logo used by one or more real estate licensees who represent themselves to the public as part of one brokerage that performs real estate license activities under the supervision of the same broker. 

As a reminder, every single sales associate and broker associate works for their employing broker. They are not independent business entities. 

2. Each team or group shall file with the broker an appointed team leader to represent the team or group. This team leader shall be responsible for ensuring that the advertising is in compliance with Chapter 475 Florida Statutes and 61J2 Florida Administrative Code. 

3. The registered broker must maintain a current written record of each team’s or group’s members. 

4. Team or group names. Real estate team or group names must always include the word “team” or “group” as part of the name. 

Real estate team or group name shall not include the following words: 

a. Associates
b. Brokerage
c. Brokers
d. Company
e. Corporation
f. Corp.
g. Inc.
h. LLC
i. LP or LLP
j. Real Estate
k. Realty
l. or similar words suggesting the team or group is a separate real estate brokerage or company 

All of these indicate a real estate brokerage business. It had become too deceptive to the general public. Only a broker can own and operate and register a real estate brokerage business, not sales associates or broker associates.

5. Unless otherwise provided, this rule applies to all mediums of advertising including print, radio or television, and Internet. It includes but is not limited to such type of advertising as signs, billboards, email, business stationery, business cards, business documents, signs, logos, newsletters, or electronic equivalents, or anything of a similar kind of use for a similar purpose as any of the items set forth above. 

6. Advertisements containing the team or group name, team or group member, or individual licensee shall not appear in larger print or be more prominently displayed than the name of the registered brokerage’s logo. 

Many of the teams were further trying to skirt the issue by putting the required brokerage information in teeny tiny print somewhere near the bottom of the ad. It is another rule that all advertising must contain the name of the brokerage. 

The commission considered this as another way for teams to break the rule. So now, there’s a new rule. Nothing can be larger than the print that contains the name of the real estate brokerage. 

 7. All signage, including yards and billboards, must comply with these requirements no later than 12 months following effective date of this rule. 

8. Excluding the items listed above, all other relevant advertising must comply with these requirements no later than six months following the effective date of this rule. 

By the way, everything is advertising. While the discussion of this was going on for a couple of years I always let my classes know about it. On many occasions I had students call me and asked me about a team name that contained one of the now forbidden, illegal terms. 

I told them all, don’t do it. I told them they would be wasting their time and money. They were going to spend money with a URL, a webpage, SEO and SEM to brand them, business cards, car placard, and so on and so on. 

I told them they were going to be wasting your time and money and they were going have to be changing it all soon. 

They responded, “but my broker said it was okay.” I asked them, then why did you call me and ask me? Then I would tell them you get to do whatever you want.  

And now and everyone is going to be changing their team names or group names that contain one of the forbidden terms. 

 But you are all sales people. So use it as an opportunity to communicate with your entire customer database. At the very least, turn it into a positive!

The Climer School Of Real Estate is The Best Real Estate School in Florida. If you want to have the best chance of Passing your Florida Real Estate Exam on your first try, then you need to attend your real estate classes at The Climer School. Call us at 407-822-3926 (EXAM), or stop by our website at www.ClimerRealEstateSchool.com . Ask for any of our instructors. The Climer School of Real Estate has the Best Real Estate Instructors in Florida

Talking Points from the September, 2015 Florida Real Estate Commission Meeting

Talking Points at the Florida Real Estate Commission Meeting with The Climer School of Real Estate

Areas of Focus at the September 2015 Florida Real Estate Commission Monthly Meeting with The Climer School, the Best Real Estate License School in Florida.

The Climer School of Real Estate is the Best Real Estate School in Florida

Every single month, the Florida Real Estate Commission meets for two days at 400 West Robinson, North Tower, 9th Floor. They are the most powerful body within the Florida Real Estate Community and Industry. 

For most of Tuesday, they discuss topical and relevant issues that are of great concern and importance to them. Pam Matera and I (Andy Brown, the Best Real Estate Instructor in Florida and Head Instructor) have been attending every Tuesday session, at least as much as possible, since we took over The Climer School of Real Estate. The information that we glean is amazing. 

So… while I don’t know why I hadn’t thought of this before now, every month I will be blogging on the recent meeting letting you know what is on the minds’ of the 7 Commissioners and what may or will be coming up that will be affecting you in the foreseeable future. 

Teams 

The Commission is receiving a lot of complaints from the general public that when someone calls a ‘team’, they have no idea who they are working with. I promise you, if the public does not know or clearly understand who the individual agent is that they are working with, that is a problem with the Commissioners. 

 Another topic that was discussed is that the Team’s name is so prominently featured while the Brokerage is in the smallest font available, tucked away and hidden. It was mentioned that one possible solution is to make the font for the Brokerage the same as for the Team name. 

Sales Associates acting as Property Managers and Rental Agents 

You have no idea how many Sales Associates are doing this. They are taking fees for finding a tenant in their own names. They are taking advanced rents and security deposits in their own name and depositing them in their own escrow accounts. 

Clearly, they are complete idiots and did not go to The Climer School of Real Estate or they would have known that this is one of the biggest no-no’s a sales associate can possibly do. Every single penny that a Sales Associate takes, makes, or receives is in the name of their Brokerage and Broker. 

Moral Turpitude with No Evidence of Character 

This one always blows us away. Individuals who have been caught in a crime involving Moral Turpitude, either as a licensee or prior to and now they are requesting a license. 

Sex or inappropriate behavior with an under aged person is as close to a guaranteed revocation or denial as you can get. Often the back stories behind the charges disgust the Commissioners as I agree they should. They even make comments such as “We don’t want someone like this showing families around houses.” 

Individuals who are caught stealing items from houses are also pretty much guaranteed of not getting a license. The reasons should be obvious.

On many cases, as the Commissioners are reviewing the case file, they note that there is also no 'Evidence of Character' in the file. This is important to them and their decision. 

Are Franchises Businesses and Business Opportunities? 

The Commission was petitioned to make a Declaratory Statement regarding whether selling Franchises requires a Real Estate license. Does a Franchise fall under the Florida Statutes definition of a Business or a Business Opportunity? 

Both of these require a Real Estate license. Right now it seems as if it does but even the Commission’s legal counsel was not sure. This even brought up questions and discussions about MLM’s. 

 The Commission asked the Division of Real Estate Executive Director to discuss this with the Governor’s office as well as the Attorney General and the Department of Agriculture and Consumer Services. They feel that something is there but they are not inclined to make a decision without much more knowledge. 

Rhode Island and Missouri as Reciprocity States 

At the moment, there is no reciprocity in Florida with any other states. They have been in discussion for a while with Missouri and now Rhode Island has requested the same. If this is ever approved, it will not be for months. Remember, reciprocity is not mutual recognition. This would be very cool. I can tell you that I will be getting a real estate license in any state that we have reciprocity with! 

Real Estate Schools doing Illegal Activities 

I had a chance to have some discussion with one of the Commissioners at the conclusion of the meeting. Apparently and allegedly there are a couple of real estate schools in the central Florida area that are well known to the Commission for doing illegal activities. 

One of them, apparently and allegedly is not requiring their sales associate pre license students to take 63 hours which is the statutory and rule requirement. Another one has developed a reputation for selling Post 45 Pass Certificates without actually having attended a Post 45 class or done anything at all. They know about YOU! 

If these illegal activities are in fact going on, I hope these schools are shut down and fast. I hope you enjoyed this recap. 

I will be writing a blog like this monthly and letting you know what your Florida Real Estate Commission is talking and thinking about that will affect you!

Since 1998, The Climer School Of Real Estate is The Best Real Estate School in Florida. If you want to have the best chance of passing your Florida Real Estate Exam on your first try, then you need to attend classes at The Climer School. Call us at 407-822-3926 (EXAM), or stop by our website at www.ClimerRealEstateSchool.com . Ask for Andy Brown the Best Real Estate Instructor in Florida, Head Instructor and Director of Education & Training

Give More, Get More

    Climer School of Real Estate is in Orlando Florida.  Kathy received a call yesterday from Fort Meyers, about one hundred miles away.  The caller told Kathy she had looked all over the Internet for some help to help her pass her Florida real estate exam.  She told Kathy that my math videos on You Tube were the only real help she had found. 
    That feels good.  This is working.  I believe fervently in the law of compensation.  I believe, if you work, you must be compensated.  I also believe what Zig says, "If you help enough other people get what they want, you will get what you want."
    I am trying to help people pass the Florida real estate exam.
    What are you trying to help people do?  Whatever it is, work at helping more and helping them better.
    If you are selling real estate, figure out how to help more people get their property sold. 
    If you are constantly looking how to do your job better, how to help people better, your income will get better.
    Do your work.  Do it diligently.  Do it well.  Do it better today  than you did it yesterday. Pay attention to your industry.  You will be amazed at how fast you can get better.
    You can get better at finding leads
    You can get better at converting leads to appointments.
    You can get better at your presentation.
    You can get better, smoother,  faster, prettier.
    Did I say prettier?  Have you noticed some people just look better doing their work than others.
    Work at, think about, getting better at what you do.
    When you are better, start thinking about how to take your advanced skills and convert it to $$$$$.
    It starts with getting better at what you do.

Why You Failed The Florida Real Estate Exam The First Time

   You will probably fail it when you take it for the second time.  Do you know the Florida Real Estate Exam given by the Florida Real Estate Commission is difficult.  The pass rate is fifty two per cent for first time takers.  That means, if you are taking the exam for the first time, you have a 52% chance of passing.  Half of the people pass.  Half the people fail the first time.  Repeaters do not fare quite so well.  Thirty four per cent of people taking the test for the second time pass. 
   Did your instructor tell you the Florida Real Estate Exam is difficult?  Did you believe him?  Think back to your Florida real estate pre license course.  Did you take it on line? Did you choose your school based on price or did you check out their reputation?  Was it a Florida real estate school?   Did you concentrate and try to understand the concepts?  Did you take the test honestly or did you use your notes?
   If you took the course in a classroom, did you work at paying attention?  Did your instructor seem to know what was on the Florida real estate exam?  Did he teach you that?  Did you take notes on things he told you was on the Florida real estate exam?  Did he teach you a bunch of stuff that was not on the exam?  Did you read the book?  Did you answer the questions at the end of the chapters?  Did you answer the hundred questions at the back of the book?  What did you make on that test?   If you don't have the answers,  call Kathy at 407 822 3926 .  Did you instructor offer to sell you any other study aids?  Did your instructor suggest that you make flash cards?  At  Climer School of Real Estate in Orlando, we offer our student to buy the Florida Real Estate Exam Manual for twenty dollars. This is four hundred practice questions to help you pass the Florida real estate exam  the first time.  It cost thirty one dollars to fail the Florida real estate exam.  At Climer School of Real Estate, we teach a two day review.  This is a intense review class where we go over the things that are on the state exam.  We suggest you set your test date right after this two day class.We don't teach anything new in this class.  Many of our students come from other schools and on line courses.  Often, they learn some new stuff.  We have this two day class on audio CD's.  Call Kathy at 407 822 3926. 
   Are you listening to the radio in the car?  That will not help you pass the Florida real estate exam.  Listening to the CD's telling you what is on the Florida real estate exam will.  Call Kathy. 
   You know if you are studying.  A casual effort is not going to get the job done.  Start studying.  Read your book. Make some flashcards.  Watch my math videoes on You Tube.  The user name is climerschool.  I can hardly believe anyone would go take the Florida real estate exam without watching my videos.  They are the same problems that are on the test.
   Here is  a novel idea I got from one of my broker students.  He made a date to take the exam on Friday.  That cost him $31.  Then he booked a date to take the test on Monday.  That cost him $31.  If he failed on Friday, he would be right back in there on Monday.  If he passed on Friday, he wasted $31. 
   Get together and study with your friends and classmates.  Take this test seriously. 
   One last tip from Kathy.  I am not going to steal her thunder. If you want to know how to take half the pressure off, call Kathy and ask her for the secret to that.  Call us if we can help. If you want to get your career off to a fast start, come to our forty five hour class.