Quiz: Are You a Legal Eagle?
The real estate license law can be tricky. That’s why it’s imperative that you keep current on changes. Ready to find out if you’re up to date? Scenario No. 1: Professional Associations
Tom and his wife, Tammy, are both sales associates licensed with broker Todd. Tom and Tammy work as a team and are well known in their real estate community. Recently, Tom and Tammy visited their accountant, who said that they could benefit from having their commissions paid to a corporation rather than to themselves individually. So, Tom and Tammy went to the Florida Department of State, Division of Corporations’ Web site and discovered that they could file the necessary paperwork to create a corporation online. They formed a corporation that they named “The Tom and Tammy Team Inc.”
Allowed Not Allowed Scenario No. 2: Dual Employment
Sales associate Bill is licensed with broker Ted. Recently Ken, a local real estate developer, contacted Bill and offered to hire him to work for his development company (which was not a real estate brokerage company) selling lots in a new residential subdivision that Ken’s company owned.
Ken also told Bill that he would be hired as an employee of the development company and that he would be paid strictly on a salaried basis. Bill accepted Ken’s offer.
Bill also decided to keep his sales associate license current and active with his broker Ted. This way he’d be able to continue to engage in real estate brokerage activity on behalf of Ted and at the same time work as a salaried employee of Ken’s company selling its real property in the residential subdivision it was developing.
Allowed Not Allowed Scenario No. 3: Comparative Market Analysis (CMA)
Sales associate Sue has always been one of the top producers in her real estate brokerage firm. Sales in her farm area have remained steady, but lately Sue noticed that she was receiving lots of calls from property owners asking her to provide them with CMAs. Sue decided to start doing this and began collecting a fee directly from them for doing so.
Allowed Not Allowed Scenario No. 4: Property Management
Steve is a sales associate licensed with a large real estate brokerage firm, and his real estate business consists mostly of residential sales.
Recently, his friend Christy, who lives out of town, contacted him. The owner of an investment property in Steve’s neighborhood, Christy told him that she had entered into a long-term lease with a tenant who was about to move into the home. She asked Steve to drive by the home occasionally to make sure the yard and landscaping was being maintained. She also asked him to go by the property on the first of each month and collect the tenant’s rent.
Christy explained that the tenant would be paying by check and that the check would be made payable to her. Christy also told Steve that she would pay him $200 a month to perform these activities. Steve agreed to do so, and soon thereafter, he was being paid directly by Christy for performing these activities.
Allowed Not Allowed