Business Structure.
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Sole proprietorship
A broker may operate a brokerage as a sole proprietorship and must register the sole proprietorship and any fictitious names if they exist with the Dept of State and the Division of Real Estate DRE.
If an owner uses a fictitious name that uses the owner's First Name and Last Name in the business name, the owner does not need to register the fictitious name with the Dpt of State BUT needs to register that fictitious name with the DRE.
Ex: Susan Brown's Real Estate Services.
General Partnership.
A broker may operate a brokerage under a General Partnership. Each Partners must be registerd with the DRE however none of the General Partners can be Sales associates or Broker associate.
If the Broker of records dies, leaves or is removed the General Partnership must find a replacement within 14 days. the Brokerage cannot operate during the 14 days. If no replacement is found the brokerage license is cancelled and all the related Sales Associates' licenses become involuntary inactive. (Unless they leave and register with another Broker from a different brokerage).
Trade names/Fictitious Names must be registered with the DRE.
Ostensible Partnership exists when there is no real partnership between two or more parties but these unrelated entities conduct business together in such a manner that the public may assume that they are related.
Ostensible Partnerships are considered fraudulent and deceitful and Licensees who operate this way are subject to discipline.
Brokers who operate in the same building should be careful to advertize properly and use different phones and company letter head and Office Signs.
Limited Partnership
General Partners ARE liable beyound their initial investments, Limited Partners have limited liability which is limited to their contributions and do not participate in the management.
This entity must be registered with the Dpt of State and submit reports on an annual basis.
Ltd or Limited must be part of the entities' name.
Trade names/Fictitious Names must be registered with the DRE.
All general partners who conduct real estate activities with the public must have a valid active Broker License.
All general partners must register with the DRE. None of the General Partners can be Sales associates or Broker associate.
Limited partners need NOT register with the DRE. Sales associates or Broker associate may be limited partners.
Limited Liability Partnership
General Partners are NOT liable. The initials LLP or the words Limited Liability Partnership must be used with their official name.
Real estate rules similar to the Limited Partnership apply to the Limited Liability Partnership as well.
Corporations
Advantage: Limited liabilty, perpetual existance, centralized management, transferability.
The owners (stock holders) elect a board of directors that, in turn, elects a team of officers. The Officers/Principals are responsible for the management of the company.
A Real Estate Brokerage can be a non-profit company however a corporation sole cannot be registered as a Real Estate Brokerage.
At least one officer must be qualified as a Real Estate Broker.
All officers must be registered with the DRE.
Trade names/Fictitious Names if used must be registered with the Dpt of State and the DRE.
The initials Corp., Inc., or Co. or the words Corporation or Incorporated must be used with the official entity name.
If the Broker of records dies, leaves or is removed the Company must find a replacement within 14 days. the Brokerage cannot operate during the 14 days. If no replacement is found the brokerage license is cancelled and all the related Sales Associates' licenses become involuntary inactive. (Unless they leave and register with another Broker from a different brokerage).
None of the officers can be Sales associates or Broker associate.
S corporation
Same as a C Corporation Real Estate wise, except that it is treated differently by the IRS.
Limited Liability Company, LLC
This entity can be Member managed or Manager managed.
In a member managed LLC, none of the members can be Sales associates or Broker associate.
In a manager managed LLC, none of the managers can be Sales associates or Broker associate.
Joint Venture
Temporary form of business arrangment between two or more Real Estate brokerage entities.
Business Trust.
A business Trust holds property title in the name of the Trustee or group of Trustees.
A Business Trust cannot cannot be registered as a Real Estate Brokerage.
However anyone who conduct Real Estate activity in the name of the Trust must hold a Real Estate License.
Associations
An cooperative association may perform real estate activities for its own real property however,
a cooperative association cannot be registered as a Real Estate Brokerage.
Offices
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Each brokerage company must have a DRE registered office with a physical stationary location with at least one enclosed room to conduct business.
This location is referred to as the Principal Office and must meet the proper signage requirements.
If the broker conducts business from additional locations, each location must be registered as Branch Offices.
The Office Broker sign may be located outside or inside the building and must be easily observable by people entering the office.
The Office Broker sign must show:
The Broker's name,
Corporation's Name or the Trade Name if used,
The words "Licensed Real Estate Broker" or "Lic. Real Estate Broker"
If the sales associates name show on the sign, they must appear below the Broker's name and their status must be shown as being "Sales Associate" or "Broker Associate".
ADA
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Brokers must make their offices comply with the regulations of the American with Disabilities Act
Compliance include: remving barriers to walkways, parking lots, entrances, stairs, washrooms, water fountains, public telephones, elevators, electrical controls, and warning signals.
Tax incentives are available to eligible businesses for helping persons with disabilities.
Advertizing
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FREC rules require that advertisements include the brokerage firm's licensed name.
When a licensee's own name appears in an advertisement, the licensee's last name must also appear as registered with the commission.
On the Internet, the brokerage firm's licensed name must appear adjacent to, or immediately above or below the point of contact.
Fair Housing
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Advertizing should not discriminate on the basis of race, color, religion, sex, handicap, familial status, or national origin.
The poster from HUD must be displayed at real estate brokerage offices.
Rental Lists
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100% refund if error found in list if request made within 30 days of contract to obtain list.
75% refundable if could not find a rental place and request made within 30 days of contract to obtain list.
Telemarketing
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Florida maintains a no sales call registry. Violators of the Florida's Telemarketing Act may be fined $10,000 per call.
In Florida, Real Estate agents have exemption when calling FSBO but this exemption does not exist with the Federal law.
The Federal law has exemption when agent has a buyer interested in the property or if the owner had a business relationship agent for up to 18 months after the transaction.
Agent may contact customer up to 3 months after business inquiry such as meeting at an open house.
Violators of the Federal no-call law may be fined $11,000 per call.
Includes no transmission of unwanted material to fax machines.
Mario
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Mario Levesque,
Engineer, Licensed Real Estate Broker
Advantage Avenue Real Estate,
Tampa, Florida
cell: 813-857-6918
fax: 866-252-9511
Web: http://www.advantageavenue.com/
Web: http://www.agentfreebies.com/
Friendly, professional services
;)
;)
