Important Information for Online Florida Real Estate Students

One of the many benefits of live classroom instruction over the online Real Estate course is that the students are given the necessary information to walk them through the license application process.  When a candidate calls me regarding scheduled classes and none of the formats are a match for their work or family schedule they choose the online option.  I make sure they know the process required to apply for an obtain the approval from the state to sit for the licensing exam.

Students who go on the website and register for the online course without calling the school miss out on valuable information regarding the process. I frequently get calls from these students who are attempting to schedule their state license exam and PearsonVue, the test vendor is asking them for the required identification number.  That is a red flag that they have not made their application with the state for a real estate license and their plans have been set  back by months.

There are two steps to the process of obtaining a Real Estate license: taking and passing the required 63 hour FREC 1 course with a score of at least 70, and applying to the Florida Department of Business and Professional Regulation for a sales associate license. When the application is approved, the test vendor notifies the candidate that they may now schedule the state license exam.  The passing score for the state exam is 75. I recommend applying to the state as soon as the candidate registers for the Real Estate course.

Here is the process:
Go to www.myfloridalicense.com
Choose "apply or manage my license"
Choose Real Estate as the profession
Choose the green Apply for license tab
Choose Real Estate sales associate
Choose Initial Application-Sales Associate License (Form RE 1)
The application page is filled with valuable information and the two available methods of applying are at the bottom of the page.

One of the requirments to complete the application process is getting your electronic fingerprints through an approved Livecan vendor.  Some local Sheriff's offices provide this service but the student must provide them with the code for Real Estate so the fingerprints ar directed to the Division of Real Estate. The code is found here.  

Another very valuable resource is the Candidate Information Booklet which is updated regularly.  It is the guidebook that offers everything from the material that must be mastered to pass the exam to what to bring and not to bring to the test site.  

For more information on the process or if you have any questions please feel free to call at 352-650-1029 and I can walk you through the process.

Nature Coast Real Estate School offers live and online courses for Real Estate Sales Associate and Broker Courses as well as continuing education.  Check out our website for schedule at www.naturecoastrealestateschool.com.  Proudly serving the Real Estate Licensing needs for Hernando and Pasco County since 2003. 

Law Change for Florida Real Estate Post License Exams

As a Florida Real Estate Licensing Instructor, one of the most frustrating aspects is student procrastination when taking the required Post Licensing course during the initial license period.  Every Post Licensing class I teach there are those students who waited until the cusp of license expiration and are in a panic that they may fail the test and therfore lose their license.  
If a student does not pass the end of course exam, they previously had to wait 30 days to retest or they can retake the course if they do not want to wait.  This created a serious issue if the student waited until the last month before license expiration.

The good news is...The 30-day waiting period was eliminated for the sales and broker post-license courses and for sales and broker license reactivation courses. This will significantly reduce the anxiety that the student will lose the license they worked so hard to acquire.

This is still not the ideal way to manage a new real estate career though.  Many new licensees choose a company that offers the best commission split and then lament the fact that they have no training or mentoring available.  The Post Licensing course can help bridge this gap.  The course takes the student through a step by step process beginning with business planning and goal setting,  to prospecting for business, the listing presentation, attracing buyers, presenting a contract through to the closing process.

This valuable opportunity is wasted when the new licensee has stumbled through the first year or so in real estate with no guidance. I hear so often that the student would not have lost a transaction or listing if they had only known what they are learning in class earlier in their career.

It is your license, your business, your choice.  Choose wisely and get that competitive edge in your real estate business.

Nature Coast Real Estate School offers live classroom and online courses in Brooksville, Spring Hill, Port Richey and Holiday Florida. Check out our website at www.naturecoastrealestateschool.com for the full schedule of classes.  Be sure to read our reviews on Google before making your choice of Real Estate Schools.

Changes to the Florida Sales Associate and Broker State License Exams

The  TILA-RESPA Integrated Mortgage Disclosure Rule went into effect on October 3, 2015.  This has 
created significant changes in the handling of Real Estate closings involving mortgage loans, from application through closing.  Students who are preparing for the Florida Sales Associate and Broker licensing exams are concerned as to how these changes affect their testing.

According to the Florida Department of Business and Professional Regulation, The rule’s impact to the Florida Real Estate Sales Associate examination is minimal.   There has been a change to terminology. The term that is used instead of HUD-1 is Closing Disclosure. Candidates have to be familiar with pages 2 and 3 of the new five-page disclosure and be able to perform basic calculations as they do now.  Here is a link to the new Closing Disclosure to familiarize students with the changes. 

 The DBPR began testing the Closing Disclosure changes on December 1, 2015. Broker examinees will have eight questions that may include calculation of documentary stamp taxes and intangible taxes as well as tax and rent prorations. Examinees must also know where the expenses, prorations, sales price, and mortgage balances are shown on the Closing Disclosure.

Sales Associate and Broker Candidates are urged by the DBPR to download and utilize the Candidate Information Booklets they provide.  The Sales Associate Candidate information Booklet was updated June 2015 and the Broker Candidate Information Booklet in December 2015.  These are a student's guidebook through the process and contain valuable information, especially with regard to the weight of each section of the textbook on the State Licensing exam.  The Broker CIB has sample closing scenario questions to familiarize the candidate with the expected format of the closing questions.

For information on obtaining a real estate license or if you are considering a career in Real Estate and live in the Tampa Bay area, contact Nature Coast Real Estate Schools website for our schedule of classes.

Nature Coast Real Estate School offers LIVE CLASSROOM and ONLINE INSTRUCTION for pre and post licensing classes for Sales Associates and Brokers, as well as Weekend Exam Prep Courses.  We have four convenient locations in Pasco and Hernando Counties to serve the Real Estate Licensing needs of the North Tampa Bay area.

For more information on the location and class preparation, call Jeanne Gavish at 352-650-029 or email me at jmgavish@aol.com.

  

Should A Florida Real Estate Professional Become a PA, LLC or stay a sole proprietor?

The majority of Real Estate Licensees in Florida are independent contractors and one of the important consequences of this model is that the licensees are responsible for paying their own taxes to the IRS. One of the requirements under Internal Revenue code is that there must be a written agreement between the Broker and Associate with the verbiage affirming this business arrangement. The IRS has specific guidelines to determine how to qualify as an independent contractor.

Florida license law allows sales associates and broker associates to incorporate as individual licensees for the tax benefits and personal risk reduction.  This can afford tremendous tax savings and protect personal assets. 

The Statute is very specific in how to qualify for this form of licensing.  The licensees can choose between a Professional Corporation (PA), Limited Liability Company (LLC) or Professional Limited Liability Company (PLLC) and should seek the advise of their Accountant in deciding which corporate structure works best for their situation.

Although Florida licensing law requires that each licensee be issued a license in their legal name, if properly qualified the legal entity designation may be added to the license.

The first step in qualifying is to have the corporation created through the Florida Department of State's Division of Corporations website. Please note that although licensees are allowed to incorporate, they may not be licensed or compensated in any way except their legal name; no trade names allowed. In order to ensure that the process is done correctly, the licensee's attorney or accountant can set everything up for a fee.

Once the Articles of Incorporation have been created, the next step is to create a federal tax identification number on the Internal Revenue Service website.  If the licensee has a professional set up the corporation then this is usually done as part of the process.  

The licensee is now ready to have the licensee reissued by the Florida Department of Business and Professional Regulation in the name of the corporate entity, which must be the legal name with the proper entity designation (Jane Doe, PA) and not as a trade name (Team Jane Doe, PA). There is a small fee attached and the broker may not pay the licensee/corporation in the corporate name until the license has been reissued as such.  A new IRS W-9 form is created and the process is now complete from a legal standpoint.

In order to take maximum advantage of the new corporate arrangement, the licensee should have a business bank account created.  The bank will require the Articles of Incorporation and IRS tax identification number in order to open the account and request a credit or debit card strictly for business purposes.  The licensee is now open for business as a business.  Separating business from personal expenses is easily accomplished this way and in order to track the business income and expenses Quckbooks is an excellent banking and accounting tool. 

Now that the licensee is a business entity, business cards, signs and advertising are required to reflect the new corporate name.  Real Estate licensees are one of the only professionals allowed to avail themselves of the benefit and will find that their credibility is enhanced in the public eye by their new status.  

Forming the corporate structure is just the beginning of the process.  Expert tax advise is strongly urged to ensure that all the documentation is correctly prepared and that the new arrangement is utilized properly.  The brokerage will be paying the corporation, and the corporation will be the employer of the individual.  Understanding the filing of quarterly taxes, ongoing reporting requirements and other tax benefits and consequences make it advantageous to find a qualified accounting professional a part a licensee/corporation's business expense. 

Passing Your Florida Real Estate Licensing Exam

The greatest source of anxiety and stress for Florida Real Estate Licensing Candidates is the fear that they will not pass the State Licensing Exam.  They have heard from those in the business that the exam is confusing, grueling, filled with trick questions and hear stories of unsuccessful attempts to pass the exam.  

Many students have not seen the inside of a classroom for years or even decades, which adds to the feelings of inadequacy and apprehension.  If there is financial stress added to the mix of emotions it can truly heighten the pressure.  

However, a little anxiety is normal and can drive one to properly prepare (or even over prepare).  On the other hand, too much stress and internal pressure can be counterproductive.  The toxic chemicals strss produces in the body can inhibit the rational brain's functioning and cause failure.  

So how do you increase your chances of passing the exam on the first attempt?  Adequate preparation, a positive attitude, rest, and common sense go a long way. 

Students who take the course online are pretty much on their own, having no instructor to explain or clarify points, or give real life examples for how to apply concepts.  Consequently, they tend to read everything in their text thoroughly and repeatedly.  The Bureau of Education and Testing of the DBPR has begun tracking test taking results for Online versus Classroom Students and the results favored the online students in pass rates. You can read more on the results of Online versus Classroom students.

Do not rely on your instructor's lecture and your highlights as sole preparation for the exam.  Read the text thoroughly.  The Bureau of Education and Testing has a Candidates Information Booklet that was revised on June 4, 2015 to include the most recently updated  Examination Content Overview and Outline (pg 3-5) that separates and gives weight to subject areas to study.  Download from the DBPR website and read carefully.  It gives links to the Statutes and Administrative Codes that are in the text and information and advice for passing the test (pg 9-11).

The most recent changes are:

Finally, we have updated the Sales Associate Content Outline to match the new Sales Associate Syllabus. A copy of the updated Content Outline has been attached and will be reflected on the Sales Associate Candidate Information Booklet. Also, if a Sales Associate candidate fails and receives their grade report, they will see the updated headings from the Content Outline. You will also notice that we have decided to test on the Real Estate Markets and Analysis classification. Candidates will be tested on one item from this classification as we have taken an item away from the Residential Mortgages classification. This means that instead of 10 items being tested from the Residential Mortgages classification, they will now receive 9 items and 1 item from the Real Estate Markets and Analysis classification. Candidates will see the updates on June 4, 2015.

If there is an Exam Prep Course offered in your area, usually available on weekends, attend the class but be prepared because they are fast paced and meant to be a review, not a teaching tool.  Nature Coast Real Estate School uses the Florida Real Estate Exam Manual for Sales Associates and Brokers published by Dearborn for the Exam Prep Class.  There are over 600 questions with answers and rationales and here is one of the greatest tools for passing....

MARK THE CORRECT ANSWER TO EACH QUESTION AS GIVEN IN THE TEXT.  STUDY THE QUESTION AND THE CORRECT ANSWER ONLY. Do NOT even look at the incorrect answers to the questions in the Exam Manual because if you do you are imprinting incorrect answers in your brain. If you try to "test" yourself you may see multiple answers that "look familiar" when you are sitting in front of the test screen  at the State Exam site.  Study the question and correct answer only so that when you read the question, only the correct answer comes to mind.  You are then sufficiently prepared to attempt the State Exam.
Keep your test date a private matter so that you do not have to worry what others will think if you do not pass on your first attempt.  Make sure you arrive early to the test site so that you have have plenty of time to get processed and REMEMBER TO BRING YOUR COURSE COMPLETION CERTIFICATE TO THE EXAM SITE.  You cannot sit for the exam without it

 
 Take the time to go through the Tutorial when you sit down to your computer.  It will not count against your testing time.  Read through the test and only answer the questions that you feel confident answering the first time.  Then go back after you have read each question once and make sure to budget your time.  The adrenaline levels will be reasonable by that time and you will realize that you know more than you anticipated.  You can skip questions or mark them for review.  Save the math for last, since you utilize a different part of the brain for math.  DO NOT second guess yourself and change answers when you are reviewing unless you are certain you misread the question the first time.

Nature Coast Real Estate School offers LIVE CLASSROOM INSTRUCTION for Pre and Post Licensing Classes for Sales Associates and Brokers, as well as Weekend Exam Prep Courses.  We have four conveniently located locations in Pasco and Hernando counties to serve the Real Estate Licensing needs of Pasco and Hernando Counties.

For more information on the location and class preparation, call Jeanne Gavish at 352-650-1029 or email me at jmgavish@aol.com or visit our website. 

Florida DBPR Will No Longer Issue Paper Licenses

If you have passed your Florida Real Estate License Exam and are anxiously awaiting your Real Estate license, please note that the Florida Department of Business and Professional Regulation has made some significant changes in how they deliver Real Estate Licenses and Permits.

Starting June 4, 2015, the Department of Business and Professional Regulation (DBPR) will no longer print and mail initial, renewed or duplicate licenses for real estate Instructor, Broker, Sales Associate and Real Estate Brokerages and Schools.

 Individuals who have applied for their license through DBPR’s online services will receive an email with an attached printable copy of their license within two business days of passing their examination.  A licensee may begin to practice Real Estate as soon as the DBPR's records are updated to reflect the Real Estate Brokerage with whom the licensee has chosen as an employing Broker.  Brokers can accomplish this online and does not have to wait until the new licensee produces their license.

Licensees may also print out their license using the secure online DBPR account at  http://www.myfloridalicense.com and follow the step-by-step instructions on how to submit a print request. 

 If individuals have not created their online account,  they can do so starting June 4, 2015 and submit their license print request two business days after they have passed the examination.

If you have any questions regarding a career in Real Estate, feel free to call me at 352-650-1029 or email me at jmgavish@aol.com. Please visit my website for information regarding classes to get licensed in the Tampa Bay area.  

Nature Coast Real Estate School has four convenient locations in Pasco and Hernando counties to serve the Real Estate licensing needs of the north Tampa Bay area.  
 

It's a Great Time to Get Your Florida Real Estate License

Real Estate Classes in Hernando and Pasco counties are filling up again with the Real Estate Market well into recovery.  Business is booming for full time Brokers and Associates and many are looking to grow their brokerages and their Real Estate teams to meet the demand.  

A good number of today's Real Estate students have already been interviewed and hired, pending the passing of their real estate license exam. It is gratifying to see them come into the business and move right into production with mentorship and a pipeline of leads in place for the new licensee.

Some brokerages are offering a tuition reimbursement program, whereby the brokerage will front the expenses of Real Estate School, licensees fees and Realtor dues with reimbursement from commissions earned for qualified candidates.  

Many of today's real estate students are no strangers to the business, coming from appraising and mortgage backgrounds. Often, students have a Real Estate license in other states and are eager to duplicate their successful real estate careers from other states in Florida. 

Today, in the north Tampa Bay area, we are back to the pre-boom number of licensees that are active and the numbers are steadily growing.  The investor market, first time homebuyers and international buyers are taking advantage of affordable homes in the North Tampa Bay and low interest rates while they last.  It is a great time to begin a career in Real Estate.

If you have any questions about a career in real estate in Florida, please call or email me, or visit my website.  

Nature Coast Real Estate School has four convenient locations in Hernando and Pasco Counties and serves the real estate licensing needs in Pasco County and Hernando County Florida.  If you have any questions about the licensing process, the Division of Real Estate has answers to Frequently Asked Questions as well as a complete Candidate Information Booklet to guide you through the process of getting your license.  To apply for a real estate license in Florida, follow the link to the license application.