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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- → Broker Thompson discovers that earnest money from a failed transaction has been sitting in his escrow account for 18 months. The buyer and seller cannot agree on disbursement. What is Thompson's best course of action under Florida law?
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- → Broker Martinez operates under the trade name 'Sunshine Realty' which is properly registered with the state. Can his sales associates use 'Sunshine Realty' in their advertising instead of Martinez's personal name?
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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?
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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?