Key Takeaways
- Misrepresentation and fraud are the most serious violations, often resulting in license revocation
- Failure to account for and deliver funds (trust account violations) can result in suspension or revocation
- Operating without a valid license is a third-degree felony in Florida
- FREC can impose fines up to $5,000 per violation plus suspend or revoke licenses
- License violations may also result in civil liability and criminal prosecution
Last updated: January 2026
Common License Law Violations
Understanding common violations helps licensees avoid disciplinary action and protect consumers.
Categories of Violations
Fraud and Misrepresentation
The most serious violations:
| Violation | Description |
|---|---|
| Fraud | Intentional deception for gain |
| Misrepresentation | False or misleading statements |
| Concealment | Hiding material facts |
| Making false promises | Guaranteeing results |
Trust Account Violations
| Violation | Description |
|---|---|
| Failure to deposit | Not depositing funds promptly |
| Commingling | Mixing personal and trust funds |
| Conversion | Using trust funds improperly |
| Improper disbursement | Releasing funds without authorization |
License Status Violations
| Violation | Description |
|---|---|
| Unlicensed activity | Acting without valid license |
| Inactive license | Practicing while inactive |
| Failure to renew | Operating on expired license |
Penalties
Administrative Penalties
FREC can impose:
| Penalty | Details |
|---|---|
| Citation | Minor violations, fine only |
| Reprimand | Formal warning |
| Fine | Up to $5,000 per violation |
| Probation | Supervised practice |
| Suspension | Up to 10 years |
| Revocation | Permanent license loss |
Criminal Penalties
Some violations are crimes:
| Offense | Penalty |
|---|---|
| Unlicensed practice | Third-degree felony |
| Fraud | Varies by amount |
| Theft of funds | Felony based on amount |
Civil Liability
Licensees may also face:
| Liability | Description |
|---|---|
| Actual damages | Compensate victim's losses |
| Punitive damages | Punish intentional misconduct |
| Attorney's fees | If plaintiff prevails |
Common Specific Violations
Advertising Violations
| Violation | Penalty |
|---|---|
| Blind ad | Citation, fine |
| False advertising | Fine, suspension |
| Missing brokerage name | Citation, fine |
Brokerage Relationship Violations
| Violation | Penalty |
|---|---|
| Failure to disclose | Fine, probation |
| Unauthorized dual agency | Suspension |
| Breach of fiduciary duty | Suspension, revocation |
Other Common Violations
| Violation | Penalty Range |
|---|---|
| Failure to complete CE | Involuntary inactive |
| Dishonest dealing | Suspension to revocation |
| Violating license law | Varies by severity |
| Failing to supervise | Fine, suspension |
Avoiding Violations
Best Practices
| Practice | Benefit |
|---|---|
| Stay educated | Know current laws |
| Document everything | Prove compliance |
| Disclose all material facts | Avoid misrepresentation |
| Proper escrow handling | Avoid trust violations |
| Timely renewals | Maintain active status |
Loading diagram...
Test Your Knowledge
What is the maximum fine FREC can impose per violation?
A
B
C
D
Test Your Knowledge
Practicing real estate without a valid license in Florida is:
A
B
C
D
Congratulations!
You've completed this section
Continue exploring other exams