FL RE Broker key terms

A limited non-fiduciary brokerage relationship in which the broker assists both buyer and seller and must treat all parties honestly and fairly, but owes no undivided loyalty, confidentiality, or full disclosure to either party.

A brokerage relationship in which the broker represents only one party as a fiduciary, owing full duties including loyalty, confidentiality, obedience, full disclosure, accounting, and reasonable skill and care.

A non-representation status in which the licensee deals honestly and fairly with the customer, discloses all known material facts, and owes limited statutory duties but no fiduciary obligations.

A licensee appointed in writing by a broker to represent one party in a nonresidential transaction while another associate represents the other party, allowing both to act as single agents within one brokerage.

The legal obligations a single agent owes a principal: loyalty, confidentiality, obedience to lawful instructions, full disclosure of material facts, accounting for funds, and reasonable skill, care, and diligence.

The principle holding a broker legally responsible for the acts and omissions of sales associates and employees performed within the scope of their association with the brokerage.

The broker's ongoing duty to train, monitor, and control associates and employees, including review of contracts, advertising, and escrow activity, as required under Florida license law.

A written brokerage document setting procedures for listings, contracts, advertising, escrow handling, fair housing, and associate conduct; it evidences the broker's supervisory system.

A written arrangement defining a sales associate as a non-employee, specifying compensation splits, duties, and tax treatment while preserving the broker's statutory supervisory authority.

A trust bank account in a Florida institution into which a broker deposits funds entrusted by others, such as earnest money deposits, to be held until disbursement is properly authorized.

Money or property received by a broker on behalf of another, including deposits, rents, and security deposits, which must be handled according to Florida escrow and recordkeeping rules.

A disagreement over entitlement to escrowed funds; Florida rules require the broker to notify FREC within a set period and hold the funds until a written release or legal determination.

The monthly process of comparing the broker's trust account bank balance to individual ledger balances and outstanding items to confirm that client funds are fully accounted for.

The Florida Real Estate Commission, the body that adopts rules, administers licensing examinations, and imposes discipline on licensees under Florida Statutes Chapter 475.

The Florida Department of Business and Professional Regulation, the agency that receives applications, issues and renews licenses, and prosecutes administrative complaints against licensees.

A status imposed by FREC or DBPR that suspends a licensee's ability to operate, often for failure to pay fines or complete education, until the deficiency is corrected.

A disciplinary disposition for a minor first violation that allows the licensee to correct the problem and pay a fine without formal probation or suspension.

The formal charging document filed by DBPR alleging violations of license law, which initiates disciplinary proceedings before an administrative law judge or FREC.

The requirement that a licensed broker register the brokerage business with DBPR, including its name, address, and the associates operating under it, before conducting business.

A Florida excise tax imposed on written obligations to pay money and on deeds transferring real property, calculated per dollar of consideration with specific rounding rules.

The allocation of an item such as property taxes or rent between buyer and seller at closing based on the number of days each party owns the property during the period.

A settlement document itemizing debits and credits to buyer and seller, including price, loan amounts, prorations, taxes, and fees, showing the net funds due each party.

The amount a seller receives at closing after subtracting payoff amounts, commissions, prorated expenses, and closing costs from the sale price.

Compensation paid to a brokerage for services under a brokerage agreement, typically a percentage of the sale price, negotiable between the parties and split per the independent contractor agreement.

The loan amount divided by the property's appraised value or purchase price, whichever is lower, used by lenders to measure risk and set mortgage insurance requirements.

Lender benchmarks comparing a borrower's housing expense and total debt payments to gross monthly income, used to decide whether a mortgage applicant is approved.

An opinion of value prepared by a state-certified or licensed appraiser using the sales comparison, cost, or income approach and complying with uniform professional standards.

A licensee's analysis of comparable sales, listings, and market conditions to suggest a listing or offer price; it is not an appraisal and must not be presented as one.

Intentionally misstating income, assets, occupancy, or property facts to obtain financing, including occupancy fraud and inflated-appraisal schemes; it exposes licensees to criminal and license discipline.

The federal Real Estate Settlement Procedures Act, which requires settlement cost disclosures, limits escrow practices, and prohibits kickbacks for referral of settlement service business.

The federal Truth in Lending Act disclosure showing the annual percentage rate, finance charge, amount financed, and total payments so borrowers can compare credit costs.

An agreement in which the buyer takes possession and pays installments while the seller retains legal title until the price is paid, creating distinct default and recording issues.

An agreement granting a party the right, but not the obligation, to buy, sell, or lease property within a stated period in exchange for consideration paid to the optionor.

Funds a buyer delivers with a purchase offer to show good faith, typically held in the broker's escrow account and applied to the purchase price or disbursed per contract terms.

A written instrument that transfers an interest in real property from grantor to grantee, containing words of conveyance, a legal description, and delivery and acceptance.

A policy indemnifying an owner or lender against loss from defects in title existing at the policy date, issued after a title search and subject to listed exceptions.

A charge against real property securing payment of a debt or obligation, such as a mortgage, judgment, mechanic's lien, or tax lien, which must be cleared at closing.

Florida constitutional protection limiting forced sale of a debtor's residence and providing property tax exemptions and caps, subject to residency and acreage limits.

A nonpossessory right to use another's land for a specific purpose, such as access or utilities, which may be appurtenant, in gross, prescriptive, or created by express grant.

Local government regulation dividing land into districts and specifying permitted uses, density, setbacks, and height, subject to variances and nonconforming use rules.

Federal, state, and local rules protecting wetlands, coastal zones, endangered species, and water quality, which can restrict development and require permits before construction or dredging.

Federal and Florida statutes prohibiting discrimination in sale, rental, advertising, and financing based on protected classes such as race, color, religion, sex, disability, familial status, and national origin.

Directing prospective buyers or tenants toward or away from neighborhoods based on protected characteristics; it is a fair housing violation regardless of intent.

Inducing owners to sell by suggesting that members of a protected class are moving into the area and will lower property values; it is illegal under fair housing law.

Intentional or negligent false statements of material fact that induce reliance and cause damages; licensees must disclose known material defects and avoid misleading advertising.

Federal and Florida telemarketing restrictions requiring licensees to scrub calling lists, honor the national and state registries, and obtain prior written consent where required.

Florida requirements that brokerage advertising be truthful, include the registered brokerage name, and avoid misleading claims, with the broker responsible for associates' ads.

Federal and state competition law prohibiting price fixing, group boycotts, and market allocation among brokers; commissions must be independently set and negotiated.

The most probable price a property should bring in a competitive, open market under all conditions requisite to a fair sale, with buyer and seller acting prudently and knowledgeably.