Q: Is a broker for a real estate corporation responsible for verifying that his sales associates renew their licenses?
A: Yes. It's the broker's duty to ensure that all broker associates and sales associates hold current licenses. Pursuant to Section 475.25(1)(u) the FREC can discipline a broker if it is determined that he/she "has failed … to direct, control or manage a broker associate or sales associate employed by such broker."
Q: A broker advertises an open house for one of her listings. At the open house, she's planning to have a $500 cash drawing. Is this legally permissible?
A: No. Games of chance are prohibited under Charter 849, Florida Statutes. A broker who desires to have a cash giveaway at an open house could however do so where the winner is determined on a game of skill.
Q: A broker of his own brokerage corporation currently handles only residential transactions. He wants to set up a branch office to run the commercial side of his business. May he register a trade name for the branch office and continue to use the corporate name for his 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: Are some brokerage companies required by law to post an Equal Employment Opportunity poster?
A: Yes. Employers with 15 or more employees during 20 weeks of the year are required to display the poster "Equal Employment Opportunity Is the Law" on their premises. The notice must be posted prominently, where employees and applicants for employment can readily see it.
The poster can be downloaded via the U.S. Department of Labor Web site.
Q: A real estate broker has been contacted by a residential homeowners' association to manage the HOA. The broker would be responsible for doing things like preparing the HOA's budget, noticing owners of meetings, and disbursing the HOA's funds. Would the broker be required to obtain a Community Association Management license before engaging in this activity?
A: It depends. Community Association Management is defined in Section 468.431, Florida Statutes, as "any of the following practices requiring substantial specialized knowledge, judgment and managerial skill when done for remuneration and when the association or associations served contain more than 10 units or have an annual budget or budgets in excess of $100,000: controlling or disbursing funds of a community association, preparing budgets or other financial documents for a community association, assisting in the noticing or conduct of community association meetings, and coordinating maintenance for the residential development and other day-to-day services involved with the operation of a community association."
If the broker conducting the types of activities outlined in the definition (which he would appear to be doing) for compensation and the association served contains more than 10 units or has an annual budget in excess of $100,000, he would be required to obtain a CAM license. This type of license may be obtained from the Department of Business and Professional Regulation (Web site: www.myflorida.com/dbpr).
Q: A broker for a large firm finds out that one of her sales associates pled guilty to a felony drug charge. Does she have a duty to terminate her or to notify the Florida Real Estate Commission?
A: No. The broker has no duty to do either under the real estate license law. However, the sales associate has a duty to inform FREC, in writing, within 30 days of pleading guilty or nolo contendere to, or being convicted or found guilty of, any felony.
Q: A bank contacts a sales associate and wants him to perform broker price opinions on its bank-owned properties. May he be paid directly for performing BPOs?
A: No. If a sales associate is performing a BPO for compensation, this is real estate licensed activity that a sales associate may perform only through his or her registered broker. In addition, Section 475.42(1)(d), Florida Statutes, provides that it's a violation of real estate licensing law for a sales associate to collect "any money in connection with any real estate brokerage transaction, whether as a commission, deposit, payment, rental, or otherwise, except in the name of the employer and with the express consent on the employer."
Q: A broker and want to use his RV as his office. Is this okay?
A: No. Pursuant to Section 475.22 (1), Florida Statutes, a broker's office must consist of at least one enclosed room in a building of stationary construction.
Q: Can a broker be liable for the negligent acts of a sales associate?
A: Yes. A broker may be disciplined, pursuant to Section 475.25(1)(u), Florida Statutes, for failing to adequately direct, supervise, control or manage a broker-associate or a sales associate.
Q: A broker wants to set up a referral company. Does this referral company have to be registered with the Department of Business and Professional Regulation?
A: Yes. The broker must set up the company and register it as a real estate brokerage with DBPR, since being paid for the referral of real estate business is real estate activity, pursuant to Section 475.01(1) (a), Florida Statutes. The broker must apply for a multiple license if he or she will be the broker for several real estate brokerages.
Q: A woman owns a real estate brokerage that specializes in auctions and property management. She wants to use one trade name for the part of her brokerage that does auctions and a different trade name for the part that does property management. May a real estate brokerage use two trade names?
A: No. Under the FREC rules, a real estate company may be registered under only one trade name.
Q: A buyer is interested in a for-sale-by-owner property. Can the broker contact these owners/sellers if they are on the Do Not Call Registry?
A: Yes. If there is an interested buyer, the broker may contact the owners/sellers — even if they're on the Do Not Call Registry — since they've advertised their phone number. However, he may not contact the owners/ sellers if he is trying to solicit the listing.
Q: May a Florida licensed real estate broker pay an out-of-state licensee a referral fee?
A: Yes. Section 475.25(1)(h), Florida Statutes, allows a Florida licensed real estate broker to share compensation with a foreign licensee as long as the foreign licensee does not violate Florida law. The foreign licensee would not be permitted to come to Florida physically and engage in real estate activity as defined by Section 475.01(1)(a), Florida Statutes. Before paying the referral fee, the Florida licensed broker should verify that the foreign licensee is licensed to practice real estate in his or her state or foreign jurisdiction as the Florida licensee may need to pay the fee to the foreign licensee's broker.