Florida Real Estate Broker ExaminationReal Estate Brokerage ManagementHard
A Florida real estate broker operates a property management division within their brokerage. A sales associate working under this broker is primarily involved in leasing residential properties. Which of the following statements regarding this sales associate's compensation is true?
- AThe sales associate must be compensated directly by the employing broker, not by clients.
- BThe sales associate can be paid a salary but cannot receive commissions for leasing activities.
- CThe sales associate's compensation must be approved by the Florida Real Estate Commission (FREC).
- DThe sales associate can directly receive commission payments from tenants and landlords.
Show answer & explanationAnswer & explanation
Correct answer: A. The sales associate must be compensated directly by the employing broker, not by clients.
Florida Statute 475.42(1)(d) explicitly states that a sales associate or broker associate may only receive compensation for real estate services from their employing broker. They are prohibited from receiving compensation directly from clients or customers.
Why the other options are wrong
- B. Sales associates can receive commissions for leasing, but it must be paid by their broker.
- C. FREC does not approve individual compensation structures; it enforces the rules regarding how compensation is paid.
- D. This is a direct violation of Florida real estate law regarding sales associate compensation.
Sales Associate Compensation Rule (FL)
In Florida, a real estate sales associate or broker associate may only be compensated for their real estate services by their employing broker, not directly by clients or customers.
- Applies to all real estate services.
- Compensation must flow through the broker.
- Violation can lead to disciplinary action.
Memory trick: Sales associates' money flow: Always through the broker, like a river to the sea, never a direct detour.