Questions and answers about legal matters provided by Florida Realtors:
Q: Is a cooperating broker who procures a buyer entitled as a matter of law to half of the commission that the listing broker receives?
A: No. There is no law entitling a cooperating broker to half of the commission received by a listing broker.
Q: I manage a residential property for a landlord. The landlord entered into a written lease with a tenant, which prohibits the tenant from having pets in the dwelling. Recently, the landlord informed me that the tenant has a dog and cat and the landlord wants to terminate the lease. May he do so?
A: It depends. The Residential Landlord/Tenant Act, specifically Section 83.56(2)(b), outlines the procedures that the landlord must follow before terminating the lease (other than for tenant’s non-payment of rent). Keeping unauthorized pets is considered a “noncompliance” with the terms of the lease, but the tenant should be given an opportunity to cure. Therefore, the tenant must be given written notice that specifies the noncompliance and offers the tenant an opportunity to correct it within seven days from the date that notice is delivered. If the tenant fails to remove the pets within the period or if the same noncompliance occurs within 12 months, then the landlord may terminate the rental agreement by giving the tenant a second notice specifying the noncompliance and stating that the lease is terminated and the tenant has seven days to vacate.
Q: I’m a broker opening my own real estate office and setting up my escrow accounts. How much of my own money may I keep in my escrow accounts?
A: A broker may place and maintain up to $5,000 of personal or broker funds in the broker’s property management escrow account and up to $1,000 of personal or brokerage funds in the broker’s sales escrow account.
Q: I represent an investor who is selling a home. He tells me that since he’s never lived in the property, he isn’t required to provide the buyer with a seller property disclosure statement. Is this true?
A: Yes and no. A seller isn’t required to fill out a seller’s disclosure statement regardless of whether the seller occupied the property or not.
However, pursuant to the Florida Supreme Court case Johnson vs. Davis, a seller is required to disclose known facts that materially affect the value of the property that are not known and readily observable to the buyer. That disclosure requirement exists whether or not the seller occupied the property.
Q: I’m a broker who represented a seller now being sued by the buyer. Although I’m not a party to the lawsuit, I was served with a Subpoena Duces Tecum [a command to produce documents] from the buyer’s attorney. The court did not issue the subpoena. Must I comply?
A: Either the attorney of record or the clerk of court may issue a Subpoena Duces Tecum. Unless the court quashes or modifies the subpoena, you must comply.
Q: I’m a broker of my own brokerage corporation, which currently handles only residential transactions. I want to set up a branch office to run the commercial side of my business. May I register a trade name for the branch office and continue to use the corporate name for my primary office?
A: No. All branch offices must have the same corporate or trade name as the primary office. Also, no individual, partnership or corporation may be registered under more than one trade name.
Q: I recently obtained a listing. The listing is 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.