Q: I'm a real estate broker and have been contacted by a residential homeowners' association. They want me to manage the HOA. I'll be responsible for doing things like preparing the HOA's budget, noticing owners of meetings, and disbursing the HOA's funds. Would I be required to obtain a Community Association Management (CAM) 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 you're conducting the types of activities outlined in the definition (which you 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, you 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: I'm a broker for a large brokerage, and I just found out that one of my sales associates pled guilty to a felony drug charge. Do I have a duty to terminate her or to notify the Florida Real Estate Commission (FREC)?
A: No. You have no duty to do either under the real estate license law. However, your 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 has contacted me (a sales associate) and wants me to perform broker price opinions on its bank-owned properties. May I 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: I am a broker and want to use my RV as my office. May I register it as my office?
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: I'm a broker and want 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: I own a real estate brokerage that specializes in auctions and property management. I'd like to use one trade name for the part of my 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 Florida Real Estate Commission (FREC) rules, a real estate company may be registered under only one trade name.
Q: My buyer is interested in a for-sale-by-owner property. May I contact these owners/sellers if they are on the Do Not Call Registry?
A: Yes. If you have an interested buyer, you may contact the owners/sellers — even if they're on the Do Not Call Registry — since they've advertised their phone number. However, you may not contact the owners/ sellers if you are 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.
Q: I'm a broker and have entered into an exclusive listing agreement with a developer who is developing a subdivision. Several of my sales associates will be working out of the model home, where they'll be meeting potential buyers, showing property and negotiating offers. Must I register the model home as a branch office?
A: Whether a location must be registered as a branch office depends on the level and type of activity conducted there. Meeting buyers, negotiating offers or performing other similar activity would require registering the model home as a branch office with the Division of Real Estate.
Q: I'm the broker of a small brokerage firm. We've been in business for a number of years and I'm running out of space to maintain the required business records in my office. I would like to hire a company to scan them onto a computer disk. Must I also maintain the original records?
A: No. Legible copies or electronic versions of the records are sufficient. As an alternative, you may also maintain the required business records outside the office. However, they must be made readily available to FREC if you are audited.
Q: I'm moving my brokerage firm to a new location. How long do I have to notify FREC of my new address?
A: When a brokerage firm changes its business address, it must notify FREC on a form provided by the commission no later than 10 days after the change.
Q: I own a brokerage firm and I also have an opportunity to become a broker for another brokerage corporation. If I apply for a multiple license, must I also have an ownership interest in this second brokerage corporation?
A: No. A broker isn't required to be a shareholder in a real estate corporation. However, every broker licensed with a corporation must be registered as an officer or director of the corporation.
Q: May a real estate corporation have more than one trade name/DBA (doing business as)?
A: No. Under FREC rules, no individual, partnership or corporation may be registered under more than one registered trade name.