from Florida Realtor Magazine, December 2007 | page 9


License Law
Q A company that requests sales associates to perform broker price opinions (BPOs) on local properties for compensation has contacted me. May I start a business performing BPOs independent of my broker?

A No. This valuation of property is a regulated activity that must be done by the appropriate licensee. Section 475.01, Florida Statutes, includes this “appraising” of property in the definition of brokerage services. As a sales associate, you may perform this service only at the direction and under the control and management of your broker.

With that in mind, Ferry says, real estate professionals should strive to build relationships while at the same time being careful not to burn bridges, even when a deal sours or negotiations break down. “Deals can come back together, so instead of getting mad, just let it go in the spirit of being able to work with that professional again on another deal,” says Ferry. “Good agents are one of your biggest assets in this market.”

Q Is a broker price opinion (BPO) or valuation of a property referred to as an appraisal, and is it the same service that is performed by real estate appraisers licensed or certified under Part II of Chapter 475, Florida Statutes?

A No. Per Section 475.01, Florida Statutes, the presence of the terms appraise or appraising in the definition of broker services specifically excludes those services that must be done by a state-licensed, state-certified or registered trainee appraiser. Section 475.25(1)(t), Florida Statutes, provides that in no event shall a BPO be referred to as an appraisal. A violation of this provision could result in disciplinary action against your license.

Q Since I’m paid a set dollar amount per BPO rather than a commission, may I collect this payment directly or must the check be made payable to my company?

A Section 475.42(1)(d), Florida Statutes, provides that a sales associate may not collect any money in connection with a real estate brokerage transaction, whether as commission, payment or otherwise, except in a check made payable to the employer.

Q I received my real estate sales associate license 14 months ago. I’m also a graduate of Top Agent University, a fully accredited university with a four-year degree in real estate. My broker has requested that I show him proof of registration for a postlicensure course. Must I take a postlicensure course if I have a degree?

A No. Section 475.17(6), Florida Statutes, provides that postlicensure education requirements don’t apply to any licensee who has received a four-year college degree in real estate from an accredited institution of higher education.

Escrow
Q As the broker for a large real estate office, I maintain an escrow account for the sales escrow deposits at a local bank. Now that I have fewer sales associates, I do more sales and want to hire an accountant to prepare my monthly reconciliation statement. May someone other than the broker prepare this reconciliation statement?

A Yes. Rule 61J2-14.012, Florida Administrative Code, requires that the broker cause, once monthly, the reconciliation statement to be made. The accountant may prepare the actual statement, but the broker must still review, sign and date the monthly reconciliation statement because the broker is ultimately responsible for the escrow account.

Q Must I mail the monthly reconciliation statement to the Florida Real Estate Commission?

A There is no legal requirement that the broker mail the monthly reconciliation statements to FREC. These statements should be maintained, however, pursuant to Section 475.5015, Florida Statutes, as a part of the official brokerage business records. 

Search through more Q&As online in the Legal Center at floridarealtors.org.