A Closer Look at FREC

What Happens When a Florida Real Estate License Is on the Line? 

Professional Standards Matter — Especially in Florida

Real estate in Florida operates under one of the most structured regulatory frameworks in the country.

When misconduct occurs, it can be addressed in multiple forums — criminal court, administrative proceedings or local board hearings. One of the most significant oversight bodies is the Florida Real Estate Commission (FREC).

Understanding how FREC works isn’t just important for licensees — it’s reassuring for consumers. It reinforces that the profession is held accountable.

At Laura Graves Real Estate, compliance, supervision and ethical practice are foundational — not optional.

What Is FREC?

The Florida Real Estate Commission (FREC) is a seven-member panel appointed by the governor and confirmed by the Senate:

• Five real estate licensees

• Two members who are not licensed brokers or sales associates

FREC meets monthly in Orlando, with hearings open to the public and available online.

Beyond discipline, FREC also:

• Reviews licensure applications

• Oversees escrow disbursement orders

• Manages the Real Estate Recovery Fund

• Interprets and enforces Florida license law

How FREC Determines Discipline

When a case comes before FREC, commissioners evaluate multiple factors:

• Harm to the public

• Prior disciplinary history

• Whether misconduct was intentional

• Mishandling of escrow or trust funds

• Cooperation with investigators

• Mitigating evidence presented

Discipline can range from:

• Education requirements

• Reprimands

• Probation

• Administrative fines

• Suspension

• License revocation

Each decision is fact-specific. Outcomes vary based on the full record presented.

Criminal Convictions: Mandatory Self-Reporting

Florida licensees must report any criminal conviction or plea — including guilty or nolo contendere — within 30 days to the Florida Department of Business and Professional Regulation (DBPR).

This applies to any crime in any jurisdiction.

Examples where licenses were revoked after criminal pleas include:

• Felony wire fraud related to pandemic relief programs

• DUI combined with assault with a deadly weapon

• Bank fraud and aggravated identity theft

These cases underscore how seriously FREC treats criminal misconduct.

License Law Violations Without Criminal Charges

Revocation doesn’t require a criminal case.

FREC has revoked licenses in situations involving:

• Missing escrow deposits

• Failure to appear and provide mitigating information

• Not delivering rental deposits to the broker timely

• Improper handling of brokerage-related disputes

Escrow violations, in particular, are treated with strict scrutiny.

Cases That Resulted in Fines Instead of Revocation

Most cases do not end in revocation. Discipline often reflects the severity and context of the violation.

Examples of fines imposed include:

• Misdemeanor DUI – $250 fine

• Misleading website information – $500 fine

• Paying an unlicensed individual for bringing a buyer – $250 fine

• Failing to deliver signed listing agreement copy – $500 fine

• Providing lockbox access improperly – $2,000 fine and required FREC attendance

These outcomes demonstrate that FREC weighs intent, cooperation and harm carefully.

Cases That Were Dismissed

Not every allegation results in discipline.

Cases have been dismissed where:

• Activities fell outside the scope of licensed real estate services

• Prosecutors failed to present sufficient evidence of fraud

Due process matters — and FREC deliberations reflect that balance.

The Broker’s Duty to Supervise

One recurring theme during hearings is a broker’s statutory duty to supervise.

Brokers are responsible for ensuring:

• Proper escrow handling

• Clear transaction oversight

• Rule compliance across the firm

• Adequate supervision systems

Failure to supervise can result in separate disciplinary action.

Strong brokerage structure is not just a business decision — it is a regulatory obligation.

Why This Matters to Buyers and Sellers

For consumers, FREC oversight provides confidence.

It ensures that:

• Escrow funds are protected

• Ethical standards are enforced

• Misconduct has consequences

• Licensees remain accountable

In a market where transactions are increasingly complex, regulatory transparency matters.

Laura Graves Real Estate Perspective

Professionalism is not defined by marketing — it is defined by compliance, supervision and accountability.

At Laura Graves Real Estate:

• Brokerage oversight is structured and documented

• Escrow procedures are handled with precision

• Legal updates and regulatory changes are monitored continuously

• Ethical standards are treated as foundational

In a shifting market, trust and discipline separate average representation from professional excellence.

Want to Work With a Brokerage That Prioritizes Compliance and Client Protection?

Whether you are buying, selling or investing in South Florida, representation should be both strategic and secure.

Let’s discuss how our standards protect your transaction from start to finish.

Call Laura: 786-457-8001

Send email: [email protected]