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Florida Real Estate Law-Maybe I Am Just Clueless!

Recently I have been reading many blog posts about internet real estate companies and the end of the brick and mortar companies...in the State of Florida..I always thought it to be illegal...meaning..you must maintain an office and you must have proper signage...

Chapter 475

475.22 Broker to maintain office and sign at entrance of office; registered office outside state; broker required to cooperate in investigation.--

(1) Each active broker shall maintain an office, which shall consist of at least one enclosed room in a building of stationary construction. Each active broker shall maintain a sign on or about the entrance of her or his principal office and each branch office, which sign may be easily observed and read by any person about to enter such office. Each sign must contain the name of the broker, together with the trade name, if any. For a partnership or corporation, the sign must contain the name of the firm or corporation or trade name of the firm or corporation, together with the name of at least one of the brokers. At a minimum, the words "licensed real estate broker" or "lic. real estate broker" must appear on the office entrance signs.

(2) If a broker's registered office is located outside the State of Florida, prior to registering such office or branch office, the broker shall agree in writing to cooperate and shall cooperate with any investigation initiated in accordance with this chapter or commission rules including, but not limited to, the broker promptly supplying any documents requested by any authorized representative of the department and by personally appearing at any designated office of the department or other location in the state or elsewhere as reasonably requested by the department. If the department sends, by certified mail to the broker at the broker's last known business address as registered with the department, a notice or request to produce any documents or to appear for an interview with an authorized representative of the department and the broker fails to substantially comply with that request or notice, then such failure by the broker is a violation of the license law, subject to the penalties of s. 475.25.

Be careful in what you read every state has their own laws.... unless of course...maybe I am just clueless! And if so please enlighten me!

About The Author: Midori Miller is a Real Estate Trainer and writes and trains Real Estate Training and assists sellers in short sale situations. Midori is a Licensed Florida Real Estate Broker, License # BK645709 and a member of the Daytona Area Association of REALTORS. Contact midorimiller@yahoo.com or (386)453-3236.

Posted by Florida Real Estate Trainer | Daytona Beach After School Training | Midori on 05/19/2009 10:58 AM

Comments (17)

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state of florida, real estate law, chapter 47522, myflorida, midori miller, daytona real estate trainer, florida real estate trainer

Originally posted at: Daytona Real Estate Training: Florida Real Estate Law-Maybe I Am Just Clueless!

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17 Comments on Florida Real Estate Law-Maybe I Am Just Clueless!

MAY

Midori,

Back when I took my FL brokers exam, this was the law, and I haven't seen it revoked yet. So, I'm agreeing with you regarding FL RE law. As you say, there are probably differences in various state laws, and that is why it is important to keep up to date with CE.

I just completed my RE Sales Course and Yes this is still the Law in Florida. I actually have a copy of Chapter 475. FS on my desk right now. I would assume that these internet companies either have an actual room with a door and sign somewhere or they must be licensed as non-residents since Florida has no reciprocity with any other state. You are Not Clueless. lol. You know what you are talking about. I am curious to know which companies you are refering to. They must have an address on their advertising somewhere.

You mean Trulia and Zillow?? Just kidding. ;-) Too bad the rules don't cover stupid.

As far as I know this is the law-I am getting ready to renew my license I'm sure this will come up in CE law.

Your example Midori of Florida Law merely states the requirement for the "brokerage" office. Which by the way is basically the same in the State of Washington. The "Brick and Mortar" term is only used to describe the business model that generally stereotypes large corporate buildings with fancy office space and mandated company meetings etc.. I know of many many companies in our state including mine who operate an internet based firm from a home office that conforms to all the State laws and regulations. We just don't have all the unnecessary overhead and silly office requirements and such... Come to think of it... We have our own silly requirements...LOL :)

A side note: As far as I know Trulia and Zillow are portals to listed properties and do not provide real estate services that require conformity to state licensing laws...

Gene

Midori, I had always thought that too. After seeing so much about "virtual" and doing some research I have confirmed that in WA you must have a "brick/mortar" office. Now, that can be in your home if your home is a legal place to have a business. That is up to the "zoning". Then you would still have to abide by the "rules" of the State regarding brokerages. I am now looking for a small rental space so I can meet the state guidelines. In reality I don't think any states allow "virtual" as we believe the word to be.

Midori - I also believe that there must be a physical address where you officially conduct business.

OK guys..here it goes...

I have seen many who state they do not have an office...in Florida.... and if you work out of your house which is legal...do you actually have a sign? Are you abiding by the state laws?...next I know that Zillow and others are not real estate companies...they never have been but they sure could be some day. This has nothing to do with the listing companies....

As far as the term..brick and mortar business models...I understand that but does the general population understand it?????

The bottom line...understand everyday people read our blogs and not always understand our lingo and that is the point of the post...making statements such as these could trigger some negative and false information and even some accusations and investigations...we write to the public don't we? I think sometimes we need to remember that!

In our State the size, usage or display of your sign is not mandated by law. It's regulated by the local jurisdiction by the maximum size, not minimum. In other words, we theoretically could use a business card as a sign. Not sure about Florida. Gary's comment about the physical address also hold true in our State..And Jo's comment about "zoning" is also correct in WA...:)

Gene

Gene-I am talking about Florida and yes there are specific sign requirements! :)

Michael-you can use a P.O. Box as a mailing address but you must have a physcial address..

Midori,

Is realestate.com in your state?

Midori --- In SC, the law used to be that a broker must maintain an office in a commercial area, but now one can operate out of their home. Weird, don't you think?

Mama Liz's Signature

Looks like the main key to the whole thing is in paragraph 1 where it states "Each active broker shall maintain an office, which shall consist of at least one enclosed room in a building of stationary construction." I believe that this is required in order to have a physical space to meet with the customer.

If it is in their home, then it must also be legal as far as zoning and/or deed restrictions. I know that in my subdivision it would not be permissible as the restrictions prohibit any commercial usage open to the public.

Of course, it does seem some times that the technology and ways of doing business are progressing much faster than the laws that govern us.

So, the question would be whether a sign on the door of the home office meets the requirement of the law. Could be stupid, but since when have literal interpretations of the law had to make sense?

MAY

In any law...there are always exceptions....and companies here that charge people who "trying" to do a loan mod are also illegal....and referred by HUD offices...how's that ?

JUL

Thanks for the post..

Very useful information..

Idaho Real Estate

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