Key definitions and who needs a license
Whether you need a license depends on what you do, for whom, and whether you expect to be paid. The definitions in Fla. Stat. 475.01 answer those questions.
Broker
Under 475.01(1)(a), a broker is a person who, for another and for compensation or valuable consideration (paid, promised, or expected), does any of these with business enterprises, business opportunities, or real property:
- appraises, auctions, sells, exchanges, buys, or rents;
- offers, attempts, or agrees to appraise, auction, or negotiate a sale, exchange, purchase, or rental;
- advertises or holds out to the public as being in that business;
- takes part in procuring sellers, buyers, landlords or tenants, or directs or assists in procuring prospects or in negotiating or closing a transaction.
The definition also covers people who advertise rental property information or lists for pay. Note the two key ideas: acting for another, and compensation. Selling your own home is not acting for another.
Sales associate and broker associate
A sales associate (475.01(1)(j)) does any act in the broker definition, but under the direction, control, or management of another person. A sales associate cannot work independently.
A broker associate (475.01(1)(b)) is someone qualified to hold a broker license who chooses to work as a sales associate in another person's name.
Real estate
"Real property" and "real estate" mean the same thing in Chapter 475. Under 475.01(1)(i) they include any interest or estate in land, including leaseholds, and also interests in business enterprises or business opportunities. Two things are carved out:
| Not real estate under 475.01(1)(i) |
|---|
| Any cemetery lot or right of burial in a cemetery |
| Renting a mobile home lot or recreational vehicle lot in a mobile home park or travel park |
One act is enough
Under 475.01(3), "operating" as a broker or sales associate means doing one or more of the acts in those definitions, and a single act is enough to bring a person under the chapter. Each act that breaks the law is a separate offense. There is no free pass for "just one deal."
Penalties for unlicensed activity
| Violation | Statute | Criminal grade |
|---|---|---|
| Operating as a broker or sales associate without a valid, current, active license | 475.42(1)(a) | Felony of the third degree |
| A sales associate operating as a broker, or for anyone other than the registered employer | 475.42(1)(b), (2) | Misdemeanor of the second degree |
| A broker employing a sales associate who lacks a valid, current license | 475.42(1)(c), (2) | Misdemeanor of the second degree |
The department has its own tools as well. Under 455.228(1), when it has probable cause that someone is practicing without a license, it may issue a cease and desist notice, go to court for an injunction, issue a citation, or impose an administrative penalty of up to $5,000 per incident.
Unlicensed activity can also block your own license later. Under 475.17(1)(b), an application may be disapproved if the applicant acted as a broker or sales associate without a license during the 1 year before filing or while the application is pending.