Here are questions and answers provided by the legal department of Florida Realtors, the state real estate association:
Q: A broker advertising an open house for one of his listings. At the open house, he wants to have a $500 cash drawing. Is this legal?
A: No. Games of chance are prohibited under Charter 849, Florida Statutes. But, games where some degree of skill are involved are legal.
Q: A broker who specializes in the sale of businesses and business opportunities wants to call businesses to see if they’re interested in selling. Do the federal Do Not Call laws or regulations apply to businesses?
A: No. The Do Not Call Registry is only for residential telephone numbers.
Q. A broker is ordering business cards for her sales associates. What is required to be on licensees’ business cards?
A: The business card is a form of advertising. Thus, the information on the business cards must comply with 61J2-10.025(1) and (2), Florida Administrative Code. The business card must include the licensed name of the brokerage firm, and if the licensee’s personal name is used, at the very least that person’s last name must appear as it is registered with the Florida Real Estate Commission. The card may not include any fraudulent, false, deceptive or misleading information, and it must make clear to reasonable persons that they are dealing with a real estate licensee.
Q: A sales associate wants to start a real estate corporation. May he be an officer or director of this corporation?
A: A sales associate may be a shareholder of a real estate corporation; however, he may not be an officer or director as per Rule 61J2-5.016, Florida Administrative Code. Furthermore, the corporation must have a qualifying broker registered with the Department of Business and Professional Regulation. The qualifying broker of the corporation must be an officer or director of the real estate corporation.
Q: A seller is planning to file a complaint against an agent with the Florida Real Estate Commission because he is unhappy with the way she handled the sale of his home four years ago. Is there any time limitation for the DBPR/DRE to file an administrative complaint?
A: Yes. Section 475.25(5), Florida Statutes , states that “…an administrative complaint against a broker or broker associate must be filed within 5 years after the time of the act giving rise to the complaint or within 5 years after the time the act is discovered or should have been discovered with the exercise of due diligence.”
Q: A short sale seller executed the FAR/BAR ASIS-1 with a buyer along with the accompanying Short Sale Addendum (CR-1 G). The seller’s lienholder stated that it will approve the buyer’s contract, but that it is requiring the parties to close by a certain date. Should the parties include this new closing date in an addendum to the contract?
A: Yes. if the seller’s lienholder and the seller need to close by a certain date, the two parties must mutually agree to this change for it to be incorporated into the contract. One party may not unilaterally change the contract terms.
Q: A buyer in the middle of a divorce is scheduled to close on a house before the divorce is final. She alone qualified for the financing, and she’s taking title in her name only. Why is the lender is insisting that her soon-to-be-former husband sign the mortgage agreement.
A: The mortgage agreement gives the lender the right to foreclose if the borrower defaults on the loan. However, a spouse who hasn’t signed the mortgage agreement may be able to assert homestead rights, making it difficult for the lender to foreclose. So, if property could be considered the buyer’s homestead, most lenders will require the non-owning spouse to sign the mortgage agreement for the sole purpose of waiving homestead rights. Therefore, it’s a good idea for the mortgage to include language stating that the spouse is signing only to satisfy the spousal joinder requirement contained in the Florida Constitution and that the spouse is not assuming any liability or obligations in the note or mortgage. In addition, the non-owning spouse should always review the mortgage agreement carefully to ensure the terms are consistent with his or her understanding.