Broker. Opening a Real Estate Office. Chapter 2. Copyright Gold Coast Schools 1
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1 Broker Chapter 2 Opening a Real Estate Office 1
2 Learning Objectives Differentiate among the various types of businesses that may be registered as brokerage entities; Explain the requirements associated with registering a trade name with the DRE Explain the requirements for fictitious name registration Identify the requirements for a broker's office(s) Explain what determines whether a temporary shelter must be registered as a branch office 2
3 Learning Objectives Describe accessibility requirements outlined in the Americans with Disabilities as it applies to real estate offices List the license law requirements related to advertising by real estate brokers Describe the requirements for rental lists Describe the Fair Housing Act requirements for advertising real estate List the Federal Communications Commission's do-not-call rules 3
4 Business Structures that May be Registered as Brokerage Entities Sole Proprietorship Broker Only (sole) owner Personally liable for business debts and torts Broker must Register sole proprietorship with the DRE Register trade name (if applicable) with the DRE 4
5 General Partnership 2 or more persons joining together to conduct business Partners share Profit - equal or non equal Liability - full Responsibility full May be created by contract Written Oral Implied 5
6 General Brokerage Partnership Business entity is registered Partners Must be active or inactive brokers or non-licensed registered person At least 1 must be an active broker If the only active broker is gone the registration is canceled if not replaced within 14 calendar days May not be Sales Associate or Broker Associate 6
7 Ostensible (Quasi) Partnership When no partnership actually exists Public has reason to believe that one does Created by legal theory of estoppel 7
8 Limited Partnership Created by filing with the Florida Secretary of State Requires at least One general partner - full liability One limited partner - liability limited to their investment 8
9 Limited Brokerage Partnership Business entity is registered General Partners Must be active or inactive brokers or non-licensed registered person At least 1 must be an active broker If the only active broker is gone the registration is canceled if not replaced within 14 calendar days May not be Sales Associate or Broker Associate 9
10 Limited Liability Partnership Created by filing with the Florida Secretary of State Partners liable for Errors, Omissions, Negligence or Wrongful Acts Created by him or her or under his or her direct supervision Name must include Limited Liability Partnership (LLP) 10
11 Corporation An Artificial person Created by filing with the Florida Secretary of State Domestic corporation - under the laws of Florida Foreign corporation - under the laws of a state other than Florida Alien corporation formed outside the U.S. or its territories Managed by a Board of Directors, acting through the Officers 11
12 Corporation Brokerage corporation Business entity is registered Officers and Directors Must be active or inactive brokers or non-licensed registered person At least 1 must be an active broker If the only active broker is gone the registration is canceled if not replaced within 14 calendar days May not be Sales Associate or Broker Associate 12
13 S Corporations Must be organized under the laws of the United States One class of stock No more then 100 shareholders Shareholders limited to citizens or residents of the United States 13
14 Limited Liability Company Limited personal liability Great flexibility when passing income and deductions to its members Name must include Limited Liability Company (LLC) 14
15 Brokerage Entities active or inactive Broker or registered Corporation General Partnership Registered as brokerage At least one active broker Limited Partnership 14 calendar days to replace loss of only active broker Officers and Directors General Partners General Partners Sales Associate may not be Officers or Directors General Partners General Partners 15
16 Business Forms that May Not Register Corporation Sole Ecclesiastical or church organization Do not confuse with not for profit corporation Title descends to successors in office Brokers should use caution 16
17 Business Forms that May Not Register Joint Venture Business Trusts Associations 17
18 Trade or Fictitious Names Fictitious Name Act Register with Secretary of State Brokerage sole proprietorships are exempt If broker s full name is included in the fictitious name Register directly with Florida Real Estate Commission Only 1 trade name per brokerage entity 18
19 The Real Estate Office Principal office Primary office If local zoning allows, may be in residence Transferable Branch Offices Any additional location where the business is conducted Change of location requires a New Registration Registration is not Transferable May be reopened with no further action if the registration has not expired 19
20 Entrance Signs Sign must include the trade name (if applicable) Broker's name Words, "Licensed (or Lic.) Real Estate Broker" 20
21 Sign Contents John Smith Licensed Real Estate Broker Jane Smith, Sales Associate John Doe, Broker Associate 21
22 Americans with Disabilities Act (ADA) Locations that must be accessible to persons with physical or mental disabilities Places of Public accommodations and Commercial facilities Brokerage offices are consider to be both ADA s accessibility guidelines mandates the location and dimensions of accessible parking spaces 22
23 Advertising Must contain the name of the Brokerage Firm Blind Ad Contains only a phone number or address Does not disclose the name of the brokerage firm Illegal Sales Associate s name Not required If used in the advertising Last Name must appear As registered with DBPR 23
24 Advertising Internet advertising Point of contact must be adjacent or above or below brokerage firm name Any means to contact Keep listings up-to-date Current information sales associates Financing Be cautious of violations of Truth in Lending 24
25 Fair Housing (Title VIII) Prohibits discrimination in sales, leasing, advertising, financing or brokerage services based on: Race Color Religion Sex National Origin Handicap Family Status 25
26 Summary of Protected Classes Year Added and legislation 1866 Civil Rights Act 1968 Title VIII of the Civil Rights Act (Fair Housing Act) 1988 Fair Housing Amendment Act Race Color Protected Classes Religion Sex National Origin Handicap Family Status Memory Aid Realtors Can Really Sell Nice Houses Fast
27 Rental Lists Must receive written contract or receipt Refund within 30 days 75% if rental is not obtained 100% if not current or is inaccurate 27
28 Rental Lists Violation Would be a First Degree Misdemeanor 28
29 Do Not Call list Federal Communication Commission Calls can only be made with prior written consent Exceptions Prior business relationship Personal relationship Respond to inquiry Hours for calling 8 a.m. 9 p.m. Caller must give identifying information Violation results in $11,000 fine per offense 29
30 Do Not Call list Licensee cannot Call FSBO s to solicit the listing Call Persons with whom the licensee has not engaged in a business relationship with in the last 18 months Send unsolicited faxes to fax machines 30
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