A Florida real estate sales associate prepares a contract for the sale of a commercial property. The contract includes a provision that the buyer will pay the sales associate a $5,000 bonus directly upon closing. Under F.S. Chapter 475, what is the status of this provision?
Correct Answer
C) Void because sales associates cannot receive direct compensation from buyers
Correct: C - Under F.S. 475, sales associates cannot receive compensation directly from buyers or sellers; all compensation must go through their employing broker. This provision would be void. Why not A: Disclosure doesn't cure the statutory violation. Why not B: FREC cannot approve violations of statute. Why not D: Even broker approval cannot override the statutory requirement.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A breach of contract occurs when one party fails to perform their obligations under the contract without a legal excuse. The non-breaching party is entitled to legal remedies including damages, specific performance, or contract rescission.
Consideration is something of value exchanged between parties to a contract, making the agreement legally binding. It can be money, a promise to act, a promise to refrain from acting, or anything else of value.
Contingencies are conditions written into a real estate contract that must be met before the transaction can close. If a contingency is not satisfied, the buyer can typically cancel the contract without penalty.
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