In Florida real estate law, what is the primary requirement for a real estate commission to be legally enforceable?
Correct Answer
A) There must be a written agreement signed by the party to be charged
Correct: A - There must be a written agreement signed by the party to be charged. Florida Statute of Frauds requires written agreements for real estate commissions to be enforceable, signed by the party to be charged (typically the seller). Why not B: This option is incorrect because "The commission must not exceed 7% of the sale price" does not match the rule tested by the question. The correct answer is "There must be a written agreement signed by the party to be charged". Florida Statute of Frauds requires written agreements for real estate commissions to be enforceable, signed by the party to be charged (typically the seller). Why not C: This option is incorrect because "The transaction must involve residential property only" does not match the rule tested by the question. The correct answer is "There must be a written agreement signed by the party to be charged". Florida Statute of Frauds requires written agreements for real estate commissions to be enforceable, signed by the party to be charged (typically the seller). Why not D: This option is incorrect because "The commission rate must be approved by FREC" does not match the rule tested by the question. The correct answer is "There must be a written agreement signed by the party to be charged". Florida Statute of Frauds requires written agreements for real estate commissions to be enforceable, signed by the party to be charged (typically the seller).
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Previous Question
Sales Associate Jennifer works for Broker Tom and shows a property listed by Broker Sarah. The buyer Jennifer represents makes an offer that is accepted. However, before closing, the seller decides to cancel the contract for no valid reason. The listing agreement contains a protection clause. Who is entitled to pursue commission from the seller?
Next Question
Broker Lisa lists a commercial property for $2,800,000 with a commission structure of 4% on the first $1,000,000 and 2.5% on the amount over $1,000,000. If the property sells for the full listing price and Lisa's sales associate receives 40% of the total commission earned, what amount does the sales associate receive?