Q: Does Florida law mandate that the real estate closing take place in the county where the real property is located?
A: No. However, many contract for sale/purchase forms include pre-printed provisions indicating where the closing must take place.
Q: May a brokerage firm have more than one trade name?
A: No. Rule 61J2-10.034, FAC, provides that no individual, partnership or corporation may be registered under more than one trade name.
Q: I’m a broker and sole proprietor, and my principal office is in my home. My business has been growing recently, and I would like to have a sales associate work for me. Am I allowed to have a sales associate licensed under me if I work out of my home?
A: Yes.
Q: I’m a real estate broker. I recently heard from one of my sales associates that another sales associate in the office had an administrative complaint filed against him by the Florida Real Estate Commission. Will I be notified by FREC that an administrative complaint has been filed against my sales associate, and when will this notification be sent to the broker?
A: Yes. Section 475.25(6), Florida Statutes, provides that the DBPR or FREC “shall promptly notify a licensee’s broker or employer in writing when a formal complaint is filed against the licensee alleging violations of this chapter or Chapter 455.”
According to Section 475.25(6), notification will not be sent until 10 days after the finding of probable cause by the Probable Cause Panel or DBPR, or until the sales associate waives his or her privilege of confidentiality, whichever occurs first.
Q: May a real estate licensee auction real estate without having an auctioneer’s license?
A: Yes. Section 475.01(1)(a), Florida Statutes, states that a real estate licensee can auction real property.
Q: What are the requirements for the monthly escrow reconciliation for a broker who maintains an escrow account?
A: As set forth in Rule 61J2-14.012, Florida Administrative Code, the broker must prepare a written statement comparing the broker’s total liability with the reconciled bank balances of all trust accounts once a month.
Rule 14.012 provides that the minimum information to be included in the monthly statement-reconciliation shall be the date the reconciliation was undertaken, the date used to reconcile the balances, the name of the bank(s), the names of the accounts, the account numbers, the account balances, the dates, deposits in transit, outstanding checks identified by date and check number, an itemized list of the broker’s trust liability and any other items necessary to reconcile the bank account balance(s) with the broker’s checkbook(s) and other trust account books and records disclosing the date of receipt and source of funds. The broker must review, sign and date the monthly statement-reconciliation.
Q: I’m a broker who recently represented a buyer in a purchase and sale contract. After closing, the buyer requested that I share my commission with his church in exchange for future referrals. May I do that?
A: No. Per Section 475.25(1)(h), Florida Statutes, a licensee may not share compensation with a person not properly licensed as a broker, broker-associate or sales associate under the laws of the state of Florida for the referral of real estate business.
Q: I’m a Realtor representing a buyer (as a single agent) who’s interested in a property listed with another agent. I submitted my buyer’s offer to the listing agent several days ago; however, I’m concerned that he hasn’t presented the offer to the seller. I’ve been unsuccessful in reaching the listing agent. May I contact the seller directly?
A: No. Pursuant to Article 16 of the Code of Ethics, a Realtor working as a buyer’s agent may communicate with the seller only through the listing office, unless he or she has permission from the listing agent to communicate with the seller directly. It’s recommended that the buyer’s agent obtain permission from the listing agent or broker in writing.
Q: I’m trying to enforce a lien on the seller’s proceeds pursuant to my brokerage agreement but the owner says I’m not entitled to a lien because I didn’t deliver the commission notice set forth in Sec. 475.705 to the owner at the appropriate time. May I be barred from enforcing a lien when I had no knowledge that the owner entered into a contract for sale of the property?
A: A broker may still enforce a lien even if there is no timely delivery of the commission notice only if 1) the owner entered into a contract for sale of the property without the knowledge of the broker and a commission notice is delivered to the owner and closing agent before the closing agent disburses the owner’s net proceeds; and 2) the broker delivers to the closing agent a sworn affidavit stating that the commission notice was not timely delivered solely because the owner entered into a contract for the sale without the broker’s knowledge.