Florida License Law and Brokerage Relationships
Florida real estate practice is governed primarily by Chapter 475 of the Florida Statutes and the rules of the Florida Real Estate Commission (FREC). This chapter covers licensing, the duties licensees owe consumers, handling of escrow funds, and the fair housing and disclosure rules that protect the public. Because statutes and rules are amended over time, treat specific requirements as subject to change and confirm current law.
FREC and the Regulatory Structure
The Florida Real Estate Commission administers and enforces the real estate license law within the Department of Business and Professional Regulation. FREC adopts rules, issues licenses, and disciplines licensees who violate the law. Sales associates must work under a licensed broker and cannot operate independently. This structure centers accountability on the broker while protecting consumers.
Brokerage Relationships and Duties
Florida law presumes a transaction broker relationship unless the parties agree otherwise in writing. A transaction broker provides limited representation and owes duties such as honesty, accounting for funds, and disclosing material facts, but not full fiduciary loyalty. A single agent owes full fiduciary duties, including loyalty and confidentiality, to one principal. Disclosure requirements govern how and when these relationships are communicated.
Handling Escrow and Trust Funds
Brokers who receive earnest money and other trust funds must place them in a designated escrow account within the time required by law. Funds must never be commingled with the broker's personal or business money, and using them improperly is conversion. When there are conflicting demands over a deposit, the broker must notify FREC and select an authorized settlement procedure. Proper fund handling is one of the most heavily enforced areas of license law.
Licensing, Discipline, and the Recovery Fund
Applicants must meet age, education, and character requirements, pass the state exam, and renew periodically with continuing education. Violations such as fraud, misrepresentation, and concealment can lead to fines, suspension, or revocation. The Florida Real Estate Recovery Fund reimburses consumers with uncollectible judgments against licensees. These mechanisms protect the public and maintain professional standards.
Fair Housing and Advertising
Federal and state fair housing laws prohibit discrimination in housing based on protected classes, and licensees must avoid steering, blockbusting, and redlining. The federal Fair Housing Act protects race, color, religion, sex, national origin, familial status, and disability. Advertising must be truthful and must identify the brokerage. Compliance protects consumers and shields licensees from serious liability.
Last updated: July 2026