Here are some of the most common violations that real estate professions seem to ignore, or be unaware of:
Escrow accounts
• Withdrawals from an account can be made only with written permission from “all interested parties.”
• A broker may “place and maintain” no more than $5,000 of personal or brokerage funds in the broker’s property management escrow account, and no more than $1,000 in personal or brokerage funds in the broker’s sales escrow account.
• Escrow accounts may be established only in Florida-based banks, trust companies, title companies, credit unions or savings and loan institutions.
• Deposit of escrow monies much be made no later than the third business day following receipt of the money.
Records
• Brokers must keep records for five years.
• If records have been used as evidence in a litigation, they must be kept two years after the case has been closed.
• Escrow accounts must be reconciled at least once a month.
Licenses
• If a licensee changes companies, he must file a “Change of Status” form with the Division of Real Estate in order to become active.
• A broker must file a “Change of Status” form when a sales associate leaves his company.
• A license that is delinquent for more than 24 months is null and void.
• All brokers in a company are equally responsible for actions within the company.
• The commission must be notified of a change of address within 10 days.
• Florida does not recognize licenses from other states. However, the state has “Mutual recognition” with Alabama, Arkansas, Connecticut, Georgia, Indiana, Mississippi, Nebraska, Oklahoma and Tennessee, and licensees from those states only need to take an exam to get a Florida license.
• Completing the continuing education requirement is not an option; it is mandatory.
Offices
• Branch offices must have the same name as the corporate name.
• The broker’s name must be “on or about” the entrance of offices along with the words “Licensed Real Estate Broker.”
Advertising and signage
• All real estate ads must include the licensed name of the real estate firm.