Florida Real Estate Broker ExaminationReal Estate Brokerage ManagementHard
A Florida real estate broker is establishing a new brokerage and plans to operate as a corporation. Which of the following statements correctly describes a requirement for a real estate brokerage corporation in Florida?
- ASales associates may serve as officers or directors, provided they are employed by the corporation.
- BThe corporation must be registered with the Florida Department of State, but does not require registration with the DBPR.
- CAt least one officer of the corporation must be an active Florida real estate broker.
- DAll officers and directors of the corporation must hold an active Florida real estate broker's license.
Show answer & explanationAnswer & explanation
Correct answer: C. At least one officer of the corporation must be an active Florida real estate broker.
Florida Statute 475.15 and FREC rules state that at least one officer of a real estate brokerage corporation must be an actively licensed real estate broker. While other officers and directors may not need a license, the qualifying broker must be an officer.
Why the other options are wrong
- A. While sales associates can be employed, they cannot serve as officers or directors if they are not also actively licensed brokers, as the qualifying broker must be an officer.
- B. A brokerage corporation must be registered with both the Florida Department of State (as a business entity) and the DBPR (as a real estate brokerage).
- D. This is incorrect. Only a qualifying broker (who must be an officer) is required to hold an active broker's license.
Real Estate Brokerage Corporation Structure
In Florida, a real estate brokerage corporation must have at least one officer who is an actively licensed real estate broker to serve as the qualifying broker.
- Corporation itself must be registered as a brokerage.
- All real estate services must be performed under the direction of the qualifying broker.
- Unlicensed individuals can be shareholders, but not officers performing brokerage services.
Memory trick: For a Broker Corp, one Officer must be the Key Broker, guiding the service flow.