Florida Real Estate Sales Associate Examination Content OutlineReal Estate Brokerage Activities and ProceduresMedium
A real estate broker is incorporating their brokerage business in Florida. Which of the following designations is legally required to be included in the name of the brokerage corporation to indicate its licensed status?
- AThe broker's full legal name.
- BLicensed Real Estate Brokerage.
- CRealty or Real Estate.
- DInc. or Corp.
Show answer & explanationAnswer & explanation
Correct answer: D. Inc. or Corp.
When a real estate brokerage is organized as a corporation, its legal name must include a corporate designation such as 'Inc.' or 'Corp.' This is a general corporate requirement, not specific to real estate, but applies to licensed brokerages that are corporations.
Why the other options are wrong
- A. The broker's full legal name is required for a sole proprietorship, but not for a corporation, which has its own distinct legal identity.
- B. While descriptive, 'Licensed Real Estate Brokerage' is not a legally required corporate designation.
- C. While 'Realty' or 'Real Estate' are common in brokerage names, they are not legally required corporate designations.
Brokerage Corporate Name (FL)
A real estate brokerage organized as a corporation in Florida must include a corporate designation like 'Inc.' or 'Corp.' in its legal name.
- Applies to corporations, not sole proprietorships or partnerships.
- Standard corporate legal requirement.
- Indicates corporate legal structure.
- Brokerage name must be registered with DBPR.
Memory trick: Corporate brokerage? 'Inc.' or 'Corp.' must be ringing!