Under Florida law, all of the following are acceptable commission arrangements EXCEPT:
Correct Answer
D) Commission paid directly from buyer to listing sales associate
Commission must be paid to the broker, not directly to a sales associate from a party to the transaction. This violates Florida license law. Option A is correct because flat fees are permitted. Option B is correct as percentage commissions are standard. Option D is correct as net proceeds arrangements are allowed with proper disclosure.
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Why the Other Options Are Wrong
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More Brokerage Activities Procedures Questions
A Florida real estate broker's advertising may include all of the following EXCEPT:
Broker Maria's firm 'Coastal Properties' has a website where sales associates post blog articles about market trends. Who is responsible for ensuring these blog posts comply with Florida advertising laws?
Under Florida real estate law, what constitutes 'advertising' for regulatory purposes?
Broker Roberts discovers that a sales associate has been operating under an expired license for the past 60 days while continuing to show properties and write contracts. Several transactions are pending closing. What is the broker's most serious immediate concern?
Sales associate Jennifer wants to advertise her services on Instagram. What must she include in her social media posts to comply with Florida advertising laws?
- → Broker Johnson's sales associate fails to deliver a written offer to the seller within 24 hours as required by the listing agreement. The seller later discovers a higher offer was made during that period. What is the broker's potential liability?
- → What is the primary purpose of Florida's trade name registration requirements for real estate brokerages?
- → Broker Tom represents both buyer and seller as a transaction broker in the same deal. His standard commission is 6% when representing one party. What should Tom disclose about his compensation as a transaction broker?
- → Under Florida law, all of the following are prohibited in real estate advertising EXCEPT:
- → Scenario Harbor Review raises this Florida point. In a Tallahassee transaction, a closing coordinator wants the Florida rule on branch office supervision. Which statement is correct?
- → Broker Lopez discovers that her brokerage's errors and omissions insurance has lapsed. She has several pending transactions. What is her immediate obligation under Florida regulations?
- → Sales Associate Karen tells Broker Smith that she has been working weekends at another real estate brokerage without his knowledge. What action must Broker Smith take under Florida law?
- → A broker operating as 'Prestige Properties, LLC' merges with another firm and wants to rebrand as 'Prestige & Elite Real Estate Group, LLC.' The broker continues using old 'Prestige Properties' signs and marketing materials for 6 months while transitioning. What violation has occurred?
- → Broker Chen receives a subpoena requesting transaction records from a divorce proceeding. The records involve confidential client information. What should Chen do under Florida law?
- → A $425,000 transaction has a 5.5% total commission split equally between the two brokerages. The selling brokerage pays its sales associate 65% of the commission it receives. How much does the sales associate receive?
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Previous Question
A Florida broker receives a 7% commission on a $350,000 sale. The broker's agreement with their sales associate specifies a 60/40 split (60% to associate, 40% to broker). How much does the sales associate receive?
Next Question
Sales Associate Mike works for Broker Jones under a 70/30 commission split. Mike also wants to receive referral fees from a mortgage company for clients he refers. What must happen for this arrangement to be legal in Florida?