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Transaction broker
Limited representation to any party (only limited confidentiality owed to party represented)
Single agent
Broker owes the principal fiduciary duties 
Any party in the transaction could pay the broker fee
Works FOR a client but WITH a customer
Compensation
With a broker's written authorization, a closing agent could pay the associate directly

Licensees may share all or some of his commission with a party to a contract (buyer, seller, lessor, lessee) provided all parties are made aware in writing

To be compensated for a sale, 3 elements must be in place:
1.  The agent must have a valid real estate license
2.  The agent's firm must be employed by the client
3.  The agent must have found a buyer
Farming
Targeting a particular geographic area, property, or client type to solicit business
Business brokerage
Sale of business enterprises (in excess of $200,000) and business opportunities ($200,000 or below)
Value of business based on going-concern value
Community Association Manager
CAM licenses are required in Florida for managers of associations of properties having more than ten units or budgets in excess of $100,000 per year
Comparative Market Analysis and Broker Price Opinion
CMA's and BPO's do not have to conform to USPAP
Must not be referred to or interpreted as an appraisal
Valuation services
Licensees may provide valuation services, providing they do not represent themselves as state-certified or registered trainee appraisers
Licensees can legally appraise properties that are not involved in federally related transactions
USPAP Ethics Rule
The payment of undisclosed fees, commissions, or things of value in connection with the procurement of an assignment is unethical
Disclosure of fees, commissions, or things of value connected to the procurement of an assignment must appear in the certficiation of the written report
FREAB
Agency that regulates Florida appraisers
Subdividing
Converting raw parcel of land into smaller parcels
Three types of real estate construction
1.  Contract-custom building
2.  Spec-builder not certain who the purchaser will be
3.  Model home-builder constructs homes from a variety of floor plans
Mortgage brokers and mortgage bankers
Brokers bring borrowers and lenders together for a fee
Brokers are limited to acting as an agent and do not have the authority to approve or reject a loan or lend money (do not have to be licensed)
Bankers have to be licensed
Bankers are individuals, firms, or corporations engaged in the business of lending money
When a real esate license is required
License required of anyone who performs:
1.  Any service of real estate
2.  In FL
3.  For another
4.  For compensation
Exemptions from licensing
Persons who are exempt can perform a service of real estate in FL for another and be compensated without being the holder of a real estate license

Those exempt are:
1.  Individual owners dealing for themselves

2.  Partnership owners provided each partner shares only in the profits of the partnership consistent with his pro rate share of ownership

3.  Employees of owners when dealing with the owner's property as long as the employees are not paid strictly on a transactional basis (i.e. commission)

4.  Persons dealing only in personal property , such as mortgage brokers

5.  Transient Lodging (managers and desk clerks at hotels, motels, or rooming houses)

6.  Salaried employees of an apartment community owner or of a registered broker for an owner if they work in an on-site rental office in a leasing capacity (commercial and industrial must be licensed)

7.  Salaried managers of condos or co-op apartments when performing duties in relation to the renting or leasing of individual units (rentals and leases cannot exceed one year)
8.  Rental of mobile home lots or RV lots
9.  Cemetary lot transactions
10.  Public relations and advertising (such as radio or TV announcers) when performing services incidental to their employment
11.  Attorneys-in-fact only when executing legal documents, contracts, deeds, or conveyances for another as may be authorized by their power of attorney
12.  Attorney-at-law when acting within the scope of their legal duties (cannot be paid a referral fee or share in a commission unless they hold an active real estate license)
13.  CPA when acting within the scope of their duties
14.  Court, legal, or statutory activities (court-appointed appraisers, personal reps, receivers, trustees)
15.  Appraisers (may not be paid for any other service of real estate)
16.  Employees of specialty owners (public utility, rural electric co-op, etc.)
17.  Sale of radio, TV, or cable (SA or broker must be retained for that portion of a transaction that includes real property)
18.  Timeshare exchange companies to the extent that the exchange company is engaged in exchanging program activities
19.  Corporation owners when they sell, exchange, or lease their own real property
Reissued licenses
Required when:
1.  Active brokers change their main office address (anyone licensed under the firm must also obtain a reissue)
2.  A branch office is closed and later reopened in the same location during the same license period
3.  A license is lost, destroyed, or the licensees's name is legally changed
4.  A period of suspension has ended
5.  A licensee changes employers
Brokerage registrations
Any time an active brokerage corporation or an active brokerage partnership does not have at least one active broker member, the registration is automatically cancelled unless another broker is appointed

When registration of an active brokerage corporation or active brokerage parternship is suspended or revoked, the licenses of all officers, directors, members, SA's, adn BA's are cancelled until reissued under a properly licensed business arrangement
Types of agency relationships
1.  Special agent-authorized to act on the employer's behalf to perform a SINGLE act.
2.  General agent-Authorized to act for the employer on a continuing basis but with his authority limited to acts related to a specific trade or business
3.  Universal agent-Authorized to act for and represent the employer in all matters.  The agent may do for employers anything employers can do for themselves
Fiduciary duties
1.  Loyalty
2.  Obedience (obeying all legal instructions of the principal) If an instruction would cause possible harm to the principal, the broker has a duty to disclose this fact; if the principal wishes to proceed, the broker must do so or withdraw from the transaction

3.  Full disclosure

4.  Confidentiality (any information that could be harmful to the principal must remain confidential, though the broker can use this information if no harm comes to the principal as a result of its use)

Breaching the fiduciary duty is a form of fraud

If a seller/buyer should discover a lack of confidentiality or other fiduciary duties, they could sue in a civil court for recovery of commissions paid, file a complaint with FREC (which could end with license suspension/revocation), or they could file a criminal charge of fraud
Nonfiduciary duties
1.  Duty of accounting for all funds (includes money, deeds, papers, documents, or other items belonging to others, which must be safeguarded)

2.  Dealing honestly and fairly (owed to all parties)

3.  Duty of skill, care, adn diligence in the transaction (exercising reasonable care)

4.  Presenting all offers in a timely manner (if the party has previously directed the licensee in writing, the broker may lawfully refuse to present the offer)

5.  Disclosing all known facts that materially affect value (refers only to residential property)
Brokerage Relationship Disclosure Act
BRDA provides for a total of 4 types of authorized brokerage relationships:
Transaction broker, single agency, no brokerage relationships, and designated sales associate

BRDA does not allow dual agency

Presumption is that all licensees are operating as transaction brokers unless written disclosure of a single agency or no brokerage relationship is provided

BRDA does not require a customer to enter into a brokerage relationship with any real estate licensee
Designated Sales Associate
A broker may designate 2 sales associates employed by the same firm to represent different parties in the same transaction as single agents   Provision applies only to commercial transactions (assets of $1 million or more)
Has the duties of a single agent and is required to provide the Single Agent Notice

Transaction broker
Licensee who provides limited representation to a buyer, seller, or both


Does not represent either party in a fiduciary capacity or as a single agent  

Parties in the transaction are the licensee's customers



Duties of a transaction broker:

1.  Dealing honestly and fairly

2.  Accounting for all funds

3.  Using skill, care, and diligence

4.  Presenting all offers/counteroffers in a timely manner

5.  Disclosing all known facts

6.  Limited confidentiality, unless waived (limited confidentiality prevents disclosure that the seller will accept a price less than the asking price, the buyer will pay more than the price submitted in a written offer, the motivation of any party for selling or buying, or a seller/buyer will agree to financing terms otherthan those offered)

7.  Any additional duties mutually agreed to with a party
Single agency
Represents, as a fiduciary, either the buyer or seller, but not both

Proper written disclosure must be made to establish a single agency relationship (Single Agent Notice) and must be made before or at the time of entering into a listing agreement, an agreement for representation, or before showing the property, whichever comes first
Duties of a single agent:
1.  Dealing honestly and fairly
2.  Loyalty
3.  Confidentiality
4.  Obedience
5.  Full disclosure
6.  Accounting for all funds
7.  Skill, care, and diligence
8.  Presenting all offers/counteroffers in a timely manner
9.  Disclosing all known facts

Transition to Transaction Broker
Licensees acting as a single agent can transition from single agent to transaction broker

Licensee must obtain the written consent of the party represented and must be provided before the licensee is to act as a transaction broker
Transaction broker form must be given to all parties and must be signed or initialed by the party (or parties); failure to obtain signature or initial is a violation of the license law
No brokerage relationship
Licensee may work with one party as either a single agent or a transaction broker and work with another party in a no brokerage relationship

Licensee may work for both parties at the same time in a no brokerage relationship

Duties in a no brokerage relationship: 1. Dealing honestly and fairly 2.  Disclosing all known facts 3.  Accounting for all funds
No brokerage relationship notice is used (must be in writing)
Disclosure requirements
Disclosure requirements of BRDA only applies to residential sales (improved or unimproved residential property of 4 units or fewer and agricultural property of 10 acres or fewer)  

Subagency
Brokerage firms working together to sell a property, known as cooperating brokers
Penalties for violating BRDA
1.  Deny an application 2.  Place a licensee on probation 3.  Suspend a license not exceeding 10 years 4.  Revoke a license 5.  Impose an administrative fine not to exceed $1,000 for each count 6.  Issue a reprimand
FREC will discipline a licensee for failure to provide agency disclosure form (or forms) before or at the time of entereing into a listing agreement or an agreement for representation or before showing of property, whichever occurs first
Brokerage offices
Active broker must maintain at least one office consisting of an enclosed room in a building or stationary construction where books, records, and files are kept
A broker is allowed to have an office outside FL and could have an office in his home
Each active broker shall maintain a sign on or about the entrance of his principal office and each branch office and must contain: 1.  Name of broker 2.  Words licensed real estate broker or Lic. real estate broker 3.  Corporate or LLC name if applicable 4.  Trade name if applicable 5.  Partnership name if applicable
Branch offices
The performance, use, and character of activities at a location determine its status as a branch office

Any licensee, SA, BA, or broker may manage a branch office
Advertising
Sales associates cannot advertise in their own name
Fraud
To prove a charge of fraud, the plaintiff must show that the statement in question was material and was relied upon   The mere intent to defraud combined with any act in furtherance of that fraud is grounds for a charge of fradulent conduct
If a SA is found guilty of a fradulent act, he shall suffer the same penalty a broker would
Repurchase or guaranteed-sale programs constitute fraud unless such promise is strictly performed
Any person who violates any of the provisions of subsection 1 is guilty of a misdemeanor in the second degree
Concealment
A form of fraud when a broker has knowledge of rumor, fact, or information and fails to reveal it
Culpable negligence
Operating in a reckless, careless, and excessively negligent manner
Broker
Cannot assume the position of broker when buying or selling for himself and must divest himself of his identity as a broker so both parties know he will be operating on his own behalf
Cannot aquire an interest in a property that is the subject matter of his employment without the consent of his principal
Cannot use lotteries, equity-trading schemes, or other devices to induce a person to buy real estate
Escrow accounts
Deposit to escrow account can include personal check, cash, certified check, promissory note, personal property, securities or title to personal or real property (any deposit other than cash or its equivalent must have seller's permission)
Prior to accpeting the offer, the seller has no rights to the deposit and the broker holds the deposit in trust for the buyer only
Escrow account must be in a trust or title company having trust powers within FL (credit union, bank, or savings and loan)
Broker must be signatory on all escrow accounts
Items that cannot be places in the broker's escrow account must be safeguarded
Brokers are not required by law to be an escrow agent or have an escrow account, but if they do: 1.  The account must be separate from the broker's business and personal accounts (brokers may place and maintain up to $5,000 of personal/brokerage funds and up to $1,000 in a sales escrow account) 2.  All interested parties must agree to placing funds in interest-bearing accounts and designate who will receive interest 3.  Monthly statements must be reviewed and signed by the broker, as well as kept for at least 5 years
Conversion
The misuse of or failure to account for funds or property entrusted to any licensee for safekeeping is known as conversion, a form of fraud
Failure to account is a type of conversion that occurs when a broker collects a commission and fails to divide or account for any share due his sales associate or due another broker
Escrow disputes
When a disagreement arises, the broker must immediately notify FREC in writing within 15 business days and within 30 days do one of the following: 1. Seek and EDO from FREC 2.  Submit the matter to arbitration 3.  File a suit in court for either interpleader or declatory decree 4.  Submit the matter to mediation with written consent from parties
Suit for interpleader
Broker does not claim an interest in deposit
Suit for declatory decree
Broker does claim an interest in deposit
Broker is not entitled to reasonable attorney's fees and court costs 
Refund provisions
Repayment of 75% if no rental obtained
100% if any information was incorrect
Request for refund must be made within 30 days
Failure to comply with rental information requirements is a first degree misdemeanor punishable by a criminal fine up to $1000 and/or imprisonment not to exceed one year
Commissions and fees
Fixing commission rates is prohibited by the federal Sherman-Clayton Anti-Trust Act
The relevant factor is when the commission is earned
An SA must be registered with a broker or owner-employer to be eligible for commission and must be paid by, and in the name of, the broker or owner-employer (exception if broker provides written permission to a closing agent to pay the SA directly and must identify the transaction, the SA, and the specific amount to be disbursed to each SA)
Rebates
A broker cannot receive directly or indirectly any compensation, rebate, or kickback without advising all affected parties in the transaction
A broker may not receive a kickback or referral fee from a mortgage company, attorney, or title company unless an acutal service is performed
Joint venture
A broker may work in a joint venture and pay a referral fee or share a commission with a properly licensed broker from another state provided the out-of-state broker does not come to FL and perform any act or service in the negotiation of the transaction
A FL broker may receive a referral fee or commission legally earned in a transaction in another state
Overage
A broker is not entitled to an overage, a form of fraud, by making more than the agreed-upon commission
Sales associate/broker associate employment/representing the employer
SA or BA can have only one employer at a time in real estate and can be paid only by that employer for any real estate services
A sales associate cannot accept listings, deposits, or commissions except in the name and with the consent of his registered employer
If the employer is not available to receive a deposit, the SA could make a deposit directly into the employer's escrow account if the employer has authorized it
Change of employment
SA's and BA's who change employers must: 1.  Obtain a reissue and notify DBPR of the termination within 10 days 2.  Not take listings from the former employer without consent (bad faith or breach of trust to take copies of listings, records, or confidential information)
Brokerage offices
1.  Sole proprietorship-individual ownership 2.  Corporation for profit-formed by filing proposed charter with the FL Secretary of State 3.  Corporation not for profit
Corporations
3 components of a corporation: 1.  Stockholders own the corp. 2.  Board of Directors manages the corp. 3.  Officers handle day-to-day business (i.e. president, VP, secretary)
Corporation name must contain the word "corporation, company, incorporated" or abbreviation
Corporations may own, buy, and sell real estate in the name of the corporation
3 types of corporations: 1.  Own real property for their own use 2.  Own real property and are in the business of building, developing, leasing, and selling to others 3.  Do not own real property but provide real estate services
When a corporation owns real property, salaried employees of that corporation who perform real estate for the corp. are exempt from licensing, but if they receive commission, transaction fees, or bonuses bases on performing real estate they must be licensed
At least one officer must hold an active broker's license  All other directors and officers must be licensed as active or inactive brokers or be registered.  
Any officer or director who performs or personally directs sales or sales forces, advertising, or soliciting, or comes into contact with the owners of real property listed ust be an actively licensed broker.  
SA's and BA's cannot be officers or directors of real estate brokerage corps
Officers performing only clerical duties need to be registered with FREC
Stockholders are not required to be licensed
Unlicensed individuals, brokers, BA's, or SA's may be stockholders
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