Brokerage office
All brokers in the state of Florida must have a real estate office and must register that office with the DBPR. This is called the Primary office.
All sales associates working under the broker's direction must be registered and work from the broker's prim
Branch Offices
Branch Offices -Home Office
Whenever a broker wishes to conduct business in more than one location, each office must be registered with DBPR (Department of Business and Professional Regulation) and the appropriate fee/s paid. All advertising (i.e. phone n
Office Entrance Signs
Every office entry must have a sign located on the front entry door or directly adjacent to the door. The sign must contain the NAME of the BROKER who is registered as the broker of record for that office. If the office has a trade name, the Trade name mu
Advertising
Brokers must always advertise in a manner that alerts the public that they are dealing with a real estate professional. All advertisements in the name of the brokerage are the broker's responsibility, no matter who composed it. All advertising must contai
Other People's Money
During the normal course of business the broker or his firm handles money that belongs to others. This can be security deposits, rent money, earnest money deposits or any type of money being held by the broker in escrow for the buyer or seller.
Escrow is
Escrow account deposits
An escrow or trust account is a separate account in a bank or trust company, title company having trust powers, credit union or a savings and loan association within the State of Florida. This must be an account separate from the broker's own operating fu
Interest Bearing account
If the broker chooses, he may place the escrow money in an interest-bearing escrow account. He may do so only if the following is stated in writing with all parties to the transaction:
the name of the party who is to receive the interest, and
the date the
Real estate escrow trust accounts
The broker must keep careful, exact records of the money in trust accounts.
Brokers who fail to reconcile their escrow accounts monthly (or more frequently) are subject to a citation. Failure to properly maintain escrow accounts is the one of the most com
Escrow accounts in disputes
Escrow is held in an account until it needs to be turned over to the closing source. If a contract does not close, or a portion of the escrow claimed by the brokerage, the broker's portion will be apportioned into the broker's operating account for disbur
Four Settlement of Escrow Dispute Procedures
After the broker notifies the FREC of the problem, the broker may wish to request:
An Escrow Disbursement Order (EDO) from the FREC. Once the EDO is requested, the broker must follow the instructions of the FREC. If the EDO is overturned on appeal, the br
Rental Lists and Rental Companies
When a broker provides a list of rental property for a fee and acts as an information broker to a tenant, the FREC requires that the broker give the tenant a contract that specifies that the tenant has the right to:
Request a refund of 75% of the fee (if
The Role of the Broker in Property Transfer
The broker or sales associate is considered an expert in many aspects of property transfer. There are areas however, when the line of the law could be crossed and unintentional trouble may follow.
The broker must be very careful not to give an opinion as
Commission
A commission is compensation paid to a real estate broker for real estate service. It can be paid as a
Percentage of sale price
Flat Fee or Salary
Or a combination of both, as set forth in the listing agreement, management agreement or agreement.
Establis
The Sales Associate's Portion of the Commission
The sales associate conducts all business in the name of his broker. All business including the receiving of commission is through the broker, the employing broker of the sales associate only. The sales associate may never accept direct payment from a Pri
The Sherman Anti-Trust Act
Price fixing- Collusion between brokers and sales associate with competing companies in setting commission rates is illegal. "Everyone charges the same so you might as well list with me" would be considered an illegal statement and a violation of the Act,
Kickbacks
Kickbacks are difficult to manage and document. Brokers can, under some circumstances, receive kickbacks from providers outside the transaction as long as the buyer and seller are informed of the kickback. A referral fee from a carpet company would be an
Change of employer.
Many real estate professionals change employers. Any time a sales associate changes employers (brokers) he must notify the FREC within 10 days on the current form prescribed by the DBPR. All forms required for real estate changes for individuals and schoo
Using Trade Names of Real Estate Organizations
Unauthorized display of names or insignia of real estate organizations or associations is prohibited by FREC rules. For example, do not use the REALTOR� trademark or any other group insignia or designation unless you are a current member or are qualified
Types of Business Entities that May Register as a Real Estate Brokerage
A broker may wish to do business as a business entity instead of using his own name. The broker should consult with his own attorney or accountant to find the specific entity that meets his specific needs. These companies will need to be registered with t
General Partnership
General Partnership : is a business owned by more than one broker. Each partner in a general partnership is liable for any debt; each partner helps to make the decisions and receives a share of the profits. At least one of the brokers must be specified as
Limited Partnerships
Limited Partnerships: is a business owned by at least one general partner and at least one limited partner. All the management is done by the general partner. Limited partners contribute investment cash but are limited in the amount of liability to the am
Corporations
Corporation: is a company that is an entity, rather than a single person. It may have a trade name associated with it. A corporation is formed by filing Articles of Incorporation with the Secretary of State which specify the duties and powers of the corpo
Limited Liability Partnership
Limited liability company
Limited Liability Partnership:( LLP)is a form of ownership that provides liability protection similar to protection offered to limited partners in a limited partnership. Basically the partner is liable only for the acts the he, himself has done, rather th
Trade name
An individual broker, partnership or corporation may use a trade name, and if so it must be disclosed upon the request for a license and be placed upon the registration or license. It cannot be the same as a real or trade name of another registrant or lic
Organizations can't use trade names
The following cannot be registered as a real estate brokerage:
A Corporation Sole- church organization, but not a non-profit
A joint venture-temporary relationship
A Business Trust-investment group for its own purposes
Cooperative/Condominium/Homeowners'