Q: A Florida Real Estate Commission investigator interviewed me as a witness to a transaction that resulted in a complaint against a broker in my area. I don’t want any trouble, so I cooperated and told the investigator what I know about the transaction. The broker was suspended and is threatening to sue me for talking to the investigator. May I be sued for being a witness?
A: Section 455.225(11), Florida Statutes, provides that a privilege against civil liability is granted to any witness to an investigation, unless the witness acted in bad faith or with malice in providing such information.
Q: I’m a broker who specializes in the sale of businesses and business opportunities. I want to call businesses in my area 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: The seller walked away from a purchase and sale contract three days before closing. The buyer presented a release and cancellation, but the seller refused to sign, claiming entitlement to the deposit, which was being held by a local title company. Who notifies the Florida Real Estate Commission (FREC) of the escrow dispute?
A: In this instance, no one would be notifying FREC. Section 61J2-10.032(1)(a), Florida Administrative Code, requires a real estate broker to notify FREC within 15 business days after receiving conflicting demands on trust funds maintained in the broker’s account, but this provision does not apply to title companies.
In most cases, a title company will require clear written instructions from both parties before releasing the deposit. If the parties can’t provide matching instructions within a reasonable period, the title company will likely deposit the funds with the local clerk of courts, and either party may then file a court case to argue why they believe they’re entitled to the deposit.
Q: I am a sales associate, and customers frequently give me their deposit checks. How quickly do I need to get them to my broker?
A: Chapter 61J2 14.009,Florida Administrative Code, states that you must deliver those checks to your broker or employer no later than the end of the next business day after you received them.
Q: A former client informed me that he was unhappy with my performance in handling his transaction, and he is going to file a complaint against me with the Florida Real Estate Commission (FREC). What happens once a complaint is filed?
A: Once a complaint is filed, the Department of Business and Professional Regulation (DBPR) determines whether or not the allegations in the complaint would, if true, constitute a violation of Section 475, Florida Statutes or the rules promulgated by the FREC.
If DBPR determines they would constitute a violation, it will initiate an investigation. DBPR is required by law to notify the licensee or his or her attorney by promptly providing a copy of the complaint or other document that prompted the decision to investigate.
Q: Is it necessary to use the Equal Housing Opportunity slogan and logo in advertisements?
A: The Fair Housing Act does not require the use of the Equal Opportunity slogan or logo. Use of the slogan and logo expresses your commitment to fair housing. Use of the slogan and logo can serve to temper a perception that discrimination is indicated in an advertisement.
Q: May a sales associate own a brokerage?
A: Yes. A sales associate or a broker associate may own a brokerage. Keep in mind, though, that under Section 61J2-5.016, Florida Administrative Code, no sales associate or broker associate may be registered as an officer, director or general partner of a brokerage.
Q: Is it possible to run my brokerage from my home?
A: Under Section 61J2-10.022, Florida Administrative Code, the required office can be in a residential location as long as it doesn’t violate local zoning ordinances.
However, minimum office requirements and brokers’ signage requirements must still be met. If this type of office interests you, be certain to check with any homeowners’ association or condominium association. It’s possible that these associations prohibit such businesses.