Real estate specializations and who needs a license
Real estate is more than selling houses. Several distinct careers grow out of the same land and buildings, and Florida licenses some of them under different laws. Knowing which is which helps you see where a sales associate fits.
The main specializations
| Specialization | What the work is |
|---|---|
| Brokerage | Bringing buyers and sellers (or landlords and tenants) together and negotiating deals for others, for compensation |
| Appraisal | Developing and reporting an opinion of a property's value |
| Property management | Running property for an owner: finding tenants, collecting rent, arranging maintenance |
| Financing | Lending money secured by real estate, or arranging those loans |
| Development | Turning raw land into a finished project: buying land, planning, getting approvals, putting in improvements |
| Construction | Building the structures and improvements |
| Counseling | Giving expert advice on real estate decisions for a fee |
Many people work in more than one area. A broker might also manage rentals, and a developer usually hires builders, brokers and lenders.
Which ones need a Florida license?
Brokerage. Fla. Stat. 475.01(1)(a) defines a broker as a person who, for another and for compensation, sells, buys, exchanges, rents, auctions or appraises real property, or negotiates or advertises to do so. Doing any of that work under another person's direction makes you a sales associate, 475.01(1)(j). Either way, a real estate license under Chapter 475 Part I is required.
Property management. The broker definition includes renting and leasing real property for others. So managing rentals for an owner for compensation generally falls under the real estate license. Chapter 475 does carve out some narrow exceptions, such as certain salaried on-site apartment leasing staff; Unit 2 covers those exemptions.
Appraisal. Chapter 475 Part II regulates appraisers. Under 475.612(1), a person may not issue an appraisal report or use titles such as "certified real estate appraiser" unless certified, licensed or registered under that part. The Part II categories include registered trainee, certified residential and certified general appraisers (475.611(1)). A real estate licensee may still prepare a comparative market analysis or price opinion, but it may never be called an appraisal, 475.612(3). Lesson 4 compares the two.
Financing. Mortgage lending is regulated under Chapter 494. Fla. Stat. 494.00312(1) says an individual who acts as a loan originator must be licensed under that section. A real estate license is not a loan originator license.
Construction. Under Fla. Stat. 489.113(2), a person must be certified or registered to engage in the business of contracting in Florida.
Development and counseling. Chapter 475 has no separate "developer" or "counselor" license. But if a developer or counselor negotiates sales or leases for others for compensation, that activity fits the broker definition and needs a real estate license. A developer selling its own property is a different matter (an owner exemption covered in Unit 2).
Exam tip: The real estate license covers acts done for another for compensation. Ask who owns the property and who is being paid.