Q: I’m having small signs printed to direct prospects to my listings. My brokerage’s name is too long to fit on the signs, and larger signs cost a lot more. May I shorten the brokerage’s name to fit?
A: No. Rule 61J2-10.025(1), Florida Administrative Code, says that all real estate advertisements must include the licensed name of the brokerage firm. and abbreviations aren’t allowed.
Q: I recently obtained a “Limited Service Listing Agreement” wherein the seller is agreeing to pay me a flat fee to list the property in the MLS. I indicated in the remarks section that cooperating brokers should contact the seller directly for showing instructions and contract negotiations. If a cooperating broker who participates in our MLS procures a buyer who enters into a purchase and sale contract with my seller, who is responsible for paying the commission offered in the MLS — me or the seller?
A: The MLS offer of compensation is a unilateral offer made by the listing broker, not the seller. Therefore, the listing broker is responsible for paying the cooperating broker the commission offered in the MLS.
Q: I’m a transaction broker for a buyer who entered into a contract with a seller. The buyer delivered an escrow check to me, signed by the buyer’s boyfriend, which was deposited into my firm’s escrow account. The buyer defaulted on the contract and agreed that the seller should retain the deposit — however, the buyer’s boyfriend is demanding that we return the deposit to him since he wrote the check. To whom should my brokerage firm disburse the deposit?
A: The seller. Unless the boyfriend was a party to the contract, you should disburse the escrow according to the parties’ (i.e., the girlfriend and the seller) instructions.
Q: I have a listing that was only on the market a couple of days when three offers came in from three buyers. The seller accepted one of the offers. Now, the broker who represents the buyer whose offer arrived first claims my seller had an obligation to negotiate with his buyer because his offer was presented to the seller first. Is this true?
A: No. There is no Florida law that would require the seller to respond to any offer. Additionally, there is no Florida law that requires the seller to negotiate with each buyer in the order in which the offers were received.
Q: I own a brokerage firm and I also have an opportunity to become a broker for another brokerage corporation. If I apply for a multiple license, must I also have an ownership interest in this second brokerage corporation?
A: No. A broker isn’t required to be a shareholder in a real estate corporation. However, every broker licensed with a corporation must be registered as an officer or director of the corporation.
Q: I have a buyers’ broker agreement with a buyer who bought the commercial property I showed him. However, he is refusing to pay my commission set forth in our agreement. May I put a lien on the property?
A: No. The commercial lien law does not apply to an agreement between a broker and a buyer for compensation of services.
Q: A FREC investigator interviewed me as a witness to a transaction that resulted in a complaint against a broker in my area. I don’t want any trouble, so I cooperated and told the investigator what I know about the transaction. The broker was suspended and is threatening to sue me for talking to the investigator. May I be sued for being a witness?
A: Section 455.225(11), Florida Statutes, provides that a privilege against civil liability is granted to any witness to an investigation, unless the witness acted in bad faith or with malice in providing such information.