Myths vs. Facts of Florida Realtor Commission Disputes
The Florida real estate market has had a record year. In the past few months, Southwest Florida has seen a major increase in buyers purchasing homes in the Sunshine State. So much so, that inventory is currently down 77% and closing prices are up 29% according to the Naples Area Board of Realtors.
Whenever there’s an increase in real estate transactions, there’s also an increase in commission disputes. Disputes are often between sellers, buyers and co-brokers disputing the commission for selling or buying a property.
As experts in the legalities of commission disputes, the real estate attorneys at Bonaquist|Allen have put together the following myths vs. facts on Florida Realtor commission disputes.
Myth: The Florida Real Estate Commission (FREC) will not force a broker to pay the commission to the salesperson.
Fact: This myth is true. But if the broker does not satisfy that judgment in accordance with its agreed-upon terms, the salesperson can file a complaint with FREC for violating its licensing law. (Section 475.25 (1)(d), Florida Statutes)
Myth: A realtor that does not receive an agreed-upon commission can sue the seller for their commission.
Fact: This myth is false. According to Section 475.42(1)(d), in the Florida Statutes, if a seller refuses to pay a commission, a sales associate or broker associate is not allowed to sue the seller. Therefore, the associate’s broker must file the lawsuit on the listing brokerage firm. After signing a brokerage agreement, one party acts under a sales agent of another, meaning the offense is not against the sales agent, but the managing brokerage.
Myth: A sales associate or real estate agent does not need to sign a written listing agreement.
Fact: This myth is false. This is a necessity when representing a real estate deal because, when a broker or agent signs a written listing agreement the contract authorizes the third party to represent the seller and find a buyer for the property.
When signing, each party should carefully read their contact or hire an attorney to review terms of payment, agreements and other legal matters at hand.
If you’re looking to hire a Naples real estate attorney to handle commission disputes, hire the best. Hire Bonaquist|Allen. Our expert real estate attorneys are intimately familiar with the practice area and have a long track record of success in real estate law.
In order to best serve the surrounding community, and to make sure that the real estate market is backed with integrity and sound business practices, the lawyers at Bonaquist|Allen can help clients with drafting legal agreements, documents and contracts as well as resolving disputes over real estate brokerage contracts, seeking litigation involving sellers who don’t pay agreed-upon commissions or cross-firm disputes. To schedule a consultation with one of our experienced real estate attorneys contact 239-276-7127 or visit bonaquistallenlaw.com.