Broker Maria enters into a listing agreement with seller John for a 6% commission. The property sells for $350,000, and the listing agreement specifies that the commission will be split 50/50 with the selling broker. If Maria's brokerage keeps 70% of her portion and Maria keeps 30%, what is the correct procedure for commission distribution in Florida?
Correct Answer
B) The entire commission must be paid to Maria's broker, who then distributes Maria's share
Under F.S. 475, all commissions must be paid to the employing broker, who then distributes the associate's share according to their employment agreement. Option A is incorrect because associates cannot receive commissions directly from third parties. Option C is incorrect because even with seller agreement, commissions must flow through the broker. Option D is incorrect because splitting at closing violates the requirement that all compensation go through the employing broker.
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Audit memo Harbor Seminar highlights this Florida rule. In a Tallahassee transaction, a closing coordinator wants the Florida rule on lawful referral fees. Which statement is correct?
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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?