Q: An agent is hosting an open house for local real estate professionals to become acquainted with a new residential development and would like to have participants drop their business cards into a fishbowl and then randomly draw names from the bowl and award prizes. Is this permissible?
A: No. This activity would be considered a "game of chance" and would violate Chapter 849, Florida Statutes, which deals with gambling; however, prizes may be awarded based on the results of a "game of skill."
Q: Do referral fees have to flow through a brokerage company, or can they be paid directly to an associate?
A: Referral fees should flow through the brokerage company to the associate, in accordance with Section 475.42(1)(d),Florida Statutes. Although FREC says that an associate may be paid directly at closing if a broker instructs the closing agent (in a specific writing) to authorize direct payment, FREC has not expanded this to include other situations.
Q. Can an agent share a referral fee with someone who doesn't hold a real estate license?
A: Section 475.25(1)(h), Florida Statutes, prohibits a Florida licensee from paying a fee or compensating someone who doesn't hold a real estate license in Florida or another state.
However, there's a very limited finder's fee exception in Section 475.011(13), Florida Statutes, that permits a property management firm or the landlord personally to pay up to $50 per transaction to an apartment tenant who refers another tenant to live in the same complex.
Q: I became licensed as a sales associate by the DBPR just over a year ago. One of my older colleagues at the office says that makes me eligible to get licensed as a broker. Is this true?
A: No. While that would have been true in 2007, the law was changed in 2008. Section 475.17(2)(b)1, Florida Statutes, now provides that to become licensed as a broker, a person must have held an active real estate sales associate's license for at least 24 months during the preceding five years.
Q: an agent waited until the last minute to do the required postlicensure education and failed to complete it prior to the expiration date. His license is now null and void. Is it possible to obtain an extension of time?
A: Perhaps. The Florida Real Estate Commission may allow an additional six-month period to complete the postlicensure education if you were unable, due to "individual physical hardship," to complete the course within the required time. Individual physical hardship is defined as a case where the licensee cannot, by reason of a physical disability, attend the place where the classes are conducted. FREC requires the extension request to be in writing and supported by statements of doctors and other persons having knowledge of the facts.
Q: A real estate licensee is going to be managing a large apartment complex. Does she need a community association manager (CAM) license?
A: A CAM license is not required for the management of apartment buildings, commercial properties or single-family dwellings.
Q. A seller asks a sales associate to list her property. They decide to enter into a 12-month listing agreemen with a provision that it will renew automatically for an additional six months if the seller doesn't cancel it in writing. May the listing agreement renew automatically?
A: No. Section 475.25(1)(r), Florida Statutes, provides that it's a violation of real estate licensing law if a real estate licensee "has failed in any written listing agreement to include a definite expiration date, description of the property, price and terms, fee or commission, and a proper signature of the principal(s); and has failed to give the principal(s) a legible, signed, true and correct copy of the listing agreement within 24 hours of obtaining the written listing agreement. The written listing agreement shall contain no provision requiring the person signing the listing to notify the broker of the intention to cancel the listing after such definite expiration date."
Q: A recently married sales associate decides to legally change her name to my married name. Is she required to change her name on her sales associate license?
A: Yes. Rule 61J2-9.007, Florida Administrative Code, provides that when there's been a legal name change, the licensee shall file a request for the real estate license to be reissued in the new name. For a new license to be reissued, a copy of the legal document that legally changed the name (marriage license in this case) must be included in this request.
Q: A sales associate wants to set up a company using her team name so that her broker can pay the commissions to this separate company. Is this legal?
A: No. Pursuant to Section 475.161, Florida Statutes, a sales associate or broker associate must use his or her legal name as it appears on his or her real estate license when incorporating as a limited liability company (LLC), professional corporation (PA) or professional limited liability company (PLLC).
Q: May a sales associate be paid directly for conducting a broker price opinion?
A: No. Section 475.42(1)(d), Florida Statutes, does not allow sales associates to collect any money in connection with a real estate brokerage transaction, whether as commission or other payment, except in the name of their employer—the broker. BPOs fall within the defi nition of real estate brokerage activity— "appraising" property—as per Section 475.01, Florida Statutes.
Q: A real estate broker and an appraiser enters a plea of nolo contendere to DUI (a misdemeanor). Is there a duty to report this misdemeanor to the Florida Real Estate Commission or the Florida Real Estate Appraisal Board?
A: Yes. Section 455.227(1)(t), Florida Statutes, requires licensees to report this misdemeanor to the FREC and the FREAB within 30 days after the plea or after being found guilty.
Q: A sales associate wants to open a real estate corporation. Can he be an officer or director of this real estate corporation?
A: A sales associate may be a shareholder of a real estate corporation; however, he or she may not be an officer or director of that corporation as per Chapter 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.