Welcome to BuyAssociation.co.uk

Florida: Real Estate Agents & Brokers

Overview

Most people in Florida buy and sell their homes through real estate agents, brokers or realtors, who must be licensed by the Florida Real Estate Commission (FREC). In Florida, you should do business only with a licensed agent or broker, preferably one who’s a member of a professional organisation. Monies (such as deposits) must only be paid into an escrow (trust) account held by a licensed broker. Note that the terms ‘agent’, ‘broker’ and ‘realtor’ are used variously (in this section and throughout this book) to refer to real estate sales professionals, licensed to practise in the state of Florida.

Under Florida law, anyone who advertises, buys or sells real estate must be licensed, although this doesn’t prevent a few crooks from trying to make a fast buck. Note, however, that an ‘agent’ who’s on a salary and employed by a single builder or developer needn’t be licensed. Many overseas buyers use agents and brokers based in their home countries. These ‘agents’ aren’t usually licensed in Florida and aren’t permitted to take clients to Florida unless they’re working with a licensed Florida-based agent (if they do and you have a problem, you will have no redress under Florida law). A real estate broker is a professional who’s licensed by the state of Florida. A real estate salesperson is also licensed by the state under the title of either real estate salesperson or real estate broker-salesperson (someone who has passed the broker’s examination, but chooses to work for another licensed broker). Always ask to see a broker’s license as licensed brokers are covered by a state-run ‘errors and omissions’ insurance scheme to compensate buyers (up to a maximum of $50,000) who lose money as a result of a broker’s actions. All licensed agents must conform to a code of practise established by the Florida Real Estate Commission (FREC), 400 W. Robinson Street, PO Box 1900, Orlando, FL 32802 (407-245-0800). If you have a genuine grievance against an agent, simply threatening to report him to the FREC should help get it resolved.

Realtors

An agent or broker with the title ‘realtor’ (a registered term) is a member of a local real estate board that has an affiliation with the National Association of Realtors (NAR), the largest and most respected national organisation for brokers, or the Florida Association of Realtors (7025 Augusta National Drive, PO Box 725025, Orlando, FL 32822-5017, 407-438-1400). Realtors subscribe to the NAR’s code of ethics and must have completed a course of study. Note, however, that if an agent or broker doesn’t belong to a professional organisation, it doesn’t mean that he’s any less qualified or competent to perform real estate services for you. However, although real estate agents can be licensed to sell real estate, they aren’t bound by a code of ethics. If you have a problem with an agent or broker who’s a member of NAR or another professional organisation, you have a better chance of satisfactory redress. If a broker contravenes the code or acts in an unprofessional manner he risks losing his license and having to reimburse a buyer for any losses incurred because of his actions. You can file complaints against a realtor in the same way as you can against a lawyer or other professional. A ‘realtist’ is a member of the National Association of Real Estate Brokers, which also sets professional standards and has a code of ethics for members.

Buyer’s Brokers

Many experts recommend that buyers employ an agent or broker as a buyer’s broker (some individual brokers and companies conduct business exclusively as buyer’s brokers), which ensures that there isn’t a potential conflict of interest. Otherwise a broker could also be acting as the seller’s broker, although this would be illegal without disclosure. A buyer’s broker will negotiate the price, terms and conditions of a purchase, and will analyse market data to ensure a low offer price (taking into account the weaknesses and strengths of a property). A broker who conducts business exclusively as a buyer’s broker doesn’t take listings from sellers or other agents. There are a variety of fee arrangements depending on the particular broker. A common arrangement, and the best for a buyer, is for the broker to charge the buyer nothing and to negotiate with the seller or his broker to split the seller’s commission. Some buyer’s brokers charge their clients a fee as a retainer. Note that buying a new home through a broker is usually better than buying direct from a builder or developer, as it provides important extra safeguards and costs you nothing. Buyer’s brokers advertise in the local Yellow Pages and in the ‘Homes for Sale’ classified ads in newspapers and magazines.

Agency Contracts

Since 1995 there have been three types of real estate contracts in Florida:

• Single Agency: An agent is employed solely by either the buyer (buyer’s agent) or seller (seller’s agent).

• Dual Agency: An agent works for both the buyer and seller.

• Transactional Agency: An agent is directly employed by neither the buyer or seller, but is an intermediary employed to ensure that all the necessary documents are provided to complete the transaction.

Under Florida law a broker must disclose in writing whether he’s acting as a single or dual agency or as a transactional broker. A broker acting for a buyer or seller must, by law, disclose all relevant information to his client, while a transactional broker, although having a duty of honesty and fair dealing, does not. As a dual agent a broker must give full disclosure to both parties, although few brokers offer this option. Therefore if you’re buying you should engage a buyer’s broker who’s acting only for you and owes a duty to obtain the best price and terms solely for you, the buyer. Similarly, if you’re selling you should employ a seller’s agent who has only your best interests in mind.

More pages

Page 1: Overview
Page 2: Choosing a Broker

The best deals on car hire in the UK, USA, Europe and beyond Alamo has the car you need at the price you want!

Calculate how much you can earn - rent out your holiday home here

Net yields of 12 per cent on tenanted Atlanta properties with 12-month rental guarantee

Holiday home insurance from intasure - Click Here UK insurance for your property overseas