Question

A Florida broker pays referral fees to a Georgia broker who comes to Florida and helps write the contract. Which of the following statements best applies to this situation?

a. This is legal because Florida has mutual recognition with Georgia.
b. The Florida broker is in violation of chapter 475.
c. The Georgia broker is in violation of chapter 475.
d. Both brokers are in violation of chapter 475.

Answer 1

Both brokers are in violation of chapter 475.

Step-by-step explanation:

The correct answer is d. Both brokers are in violation of chapter 475.

Chapter 475 of the Florida Statutes governs the licensing and regulation of real estate brokers and sales associates in Florida. According to this chapter, a broker is required to have a valid license to engage in the business of brokering real estate transactions in Florida. In the given scenario, the Georgia broker is not licensed in Florida and is therefore in violation of chapter 475.

The Florida broker is also in violation of chapter 475 because they are paying a referral fee to the Georgia broker, which is not allowed under the law. Real estate brokers in Florida are only permitted to pay referral fees to individuals who hold a valid Florida real estate license.