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?
Correct Answer
B) Referral fees must be paid to Broker Jones, who then pays Mike according to their agreement
All compensation related to real estate activities must flow through the employing broker, including referral fees. Option A is incorrect because sales associates cannot receive compensation directly from third parties. Option C is incorrect because a separate license doesn't resolve the supervision requirement. Option D is incorrect because referral fees are allowed with proper handling and disclosure.
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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 David wants to create business cards for networking events. What must appear on his business cards to comply with Florida law?
Real estate broker Sarah discovers that her sales associate Mark has been placing earnest money deposits into his personal checking account instead of the broker's escrow account. Mark claims he always transfers the funds within 24 hours. What should Sarah do according to Florida law?
Earnest money deposits in Florida must be placed in escrow within:
- → 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?
- → A Florida broker must register sales associates with DBPR within:
- → The difference between commingling and conversion:
- → 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?
- → Sales associate Mike wants to place a 'For Sale' sign on a listed property. Under Florida law, whose name must appear on the sign?
- → Sales associate Carmen wants to create business cards for networking events. According to Florida advertising requirements, what information must appear on her business cards?
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- → Under Florida real estate law, what constitutes 'advertising' for regulatory purposes?
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