Brokerage Entity Registration and Broker as Escrow Holder
Florida brokers who form a brokerage business must register the entity and qualify it, and may serve as the escrow holder. This chapter covers entity registration and the broker's escrow-holder role.
Registering the Brokerage Entity
A brokerage operating as a corporation or LLC must be registered with the DBPR and must have at least one active broker who qualifies the entity and is responsible for its real estate activities. Filing with the state's corporate office is separate from the required real estate registration. The qualifying broker supervises the firm's licensees and escrow.
Broker as Escrow Holder
A Florida broker may act as the escrow holder, keeping the buyer's good-faith deposit in the brokerage escrow account until closing or resolution of any dispute, or may let a title company or attorney hold the funds instead. The broker may never spend escrow money or release it prematurely; it is held in trust for the parties.