How a brokerage is organized
Florida has three real estate license roles. They are not separate jobs so much as levels of authority inside one structure: the broker runs the brokerage, and associates work for the broker.
The three roles
| Role | Fla. Stat. 475.01 | Works for |
|---|---|---|
| Broker | (1)(a): a person who, for another and for compensation, sells, buys, exchanges, rents, auctions or appraises real property (or offers or negotiates to), or advertises or holds out as doing so | Clients; can employ associates |
| Broker associate | (1)(b): a person qualified to be issued a broker license who operates as a sales associate in the employ of another | A broker |
| Sales associate | (1)(j): a person who performs any act in the broker definition, but under the direction, control, or management of another person | A broker |
The broker definition also includes any general partner, officer or director of a partnership or corporation that acts as a broker (475.01(1)(a)). So when a brokerage is a corporation, the people running it are brokers too.
The broker at the top
The broker is the only one of the three who can operate independently. Everything an associate does runs through a broker:
- A sales associate may not operate as a broker, or work for anyone other than the broker registered as her or his employer (475.42(1)(b)).
- A sales associate may not collect money in a real estate transaction except in the employer's name and with the employer's express consent (475.42(1)(d)).
- An associate can sue for a commission only against the broker registered as her or his employer when the work was done (475.42(1)(d)).
That last point surprises new licensees. If a seller refuses to pay, the sales associate cannot sue the seller directly. The broker earns the commission, then pays the associate under their agreement.
Employee or independent contractor
Chapter 475 talks about a broker "employing" associates. Under 475.01(2), those words include an independent contractor relationship when the broker and associate intend and set one up. The label does not change the broker's or the associate's duties under the law.
Associates are licensed as individuals. With Department of State authorization, an associate may also be licensed as a professional corporation, limited liability company or professional limited liability company (475.161).
A typical office
A small brokerage may be one broker and a few sales associates. A larger one may have:
- the broker (or several brokers, if it is a corporation or partnership);
- broker associates, who may serve as office or team leaders;
- sales associates who list and sell property;
- unlicensed staff, such as assistants and bookkeepers, who handle tasks that do not require a license.
Some brokerages are independent; others operate under a national franchise name. Either way, every associate still works under a broker.
Exam tip: "Broker associate" means broker-qualified but working under another broker. It is not a separate, higher kind of broker.