A Florida licensed real estate broker has decided to open a branch office in a neighboring city. The new branch office will be located in a separate building from the main office. Which of the following statements regarding the branch office registration is TRUE?
- AA temporary shelter used for a specific subdivision sale does not require branch office registration if sales activities cease after the development is sold.
- BEach branch office must be registered with the Department of Business and Professional Regulation (DBPR) and the registration is permanent.
- CIf the branch office is closed, the registration can be reactivated within two years for the same location.
- DA branch office registration is transferable to a new location if the broker decides to move the branch.
Show answer & explanationAnswer & explanation
Correct answer: A. A temporary shelter used for a specific subdivision sale does not require branch office registration if sales activities cease after the development is sold.
Florida Statute 475.24 states that a temporary shelter used by a broker for the convenient transaction of business and not intended to be maintained as a permanent office after the conclusion of a particular transaction or during the development of a particular subdivision, does not have to be registered as a branch office. This is an exception to the general rule that each branch office requires registration.
Why the other options are wrong
- B. This is incorrect; while each branch needs registration, the registration is not permanent. It expires and must be renewed, and is not permanent in the sense of being fixed to a location indefinitely if the office moves.
- C. This is incorrect; if a branch office is closed, its registration ceases to exist. A new registration is required if the broker later decides to open an office at that (or any other) location.
- D. This is incorrect; branch office registrations are not transferable. A new registration is required for a new location.
Florida Branch Office Exceptions
In Florida, a temporary shelter used by a real estate broker for the convenient transaction of business, such as for a specific subdivision, is generally exempt from branch office registration requirements if it is not intended to be permanent.
- Temporary shelters may be exempt.
- Must be for specific, limited purpose.
- Not intended as permanent office.
Memory trick: Main office is a must, branches need a stamp, but temporary tents can sometimes skip the line.