1. Ownership of a Broker’s Office
Only real estate brokers can own and maintain a real estate office in Florida. A broker has at least two years of real estate sales experience, has completed advanced coursework, and passed the 72-Hour Broker Pre-License Course and the state exam to get a license.
Florida’s real estate law prohibits real estate salespeople, or licensed sales associates, from office ownership. Real estate sales associates work from the broker’s office, where they are registered, under the employ and guidance of the managing broker.
There is a multitude of factors you must consider when opening an office. Location is a significant factor.
As a broker, you must consider:
- If your office is located close to target customers.
- Your office’s proximity to other competing brokerages.
- A well-located office will also provide customers with adequate parking.
- If it is located in an area that it can be easily viewed by passing customers.
When starting a brokerage business, you could be working independently or with a small team of sales associates.
When renting or purchasing office space, you must also consider the growth of your brokerage firm.
- Do you have the space to employ more sales associates?
- Will your brokerage office meet the needs of a growing sales team?
Once you have decided on the location of your office and other necessary factors, you must meet the legal requirements to operate a brokerage legally.
2. Attributes of the Broker’s Principal Office and Branch Offices
It is essential for sales and broker associates and licensed brokers to understand the legal requirements, formation, and operations that a broker must adhere to to set up their brokerage. Sales associates will be educated on the basics of brokers’ office requirements within the 63 sales associate pre-license course, and their knowledge of the subject will be tested when they sit their state exam for licensure.
As a licensed real estate broker, you may operate more than one office, with the main office registered as the principal office and other offices registered as branch offices.
Florida Statute outlines the legal requirements you must follow when establishing and maintaining a brokerage.
- All brokers’ offices must be registered with the DBPR by submitting an application and paying the applicable fee.
- At least one member of the brokerage firm must be a licensed broker.
- The real estate office must have at least one enclosed room and be located in a stationary building.
- The office must have space to conduct private real estate closings and transactions.
To comply with Florida regulations, you are required to keep any real estate files and records in the office. This ensures that all documents are readily available for inspection by the real estate governing authority. An exception to the office’s location is that it may be in a broker’s home if local zoning permits it and if the broker displays a proper sign.
Suppose you wish to conduct business from an alternative office other than your principal office. In that case, the alternative office must be registered as your firm’s branch office. You may have multiple branch offices as long as each branch office is registered with the DBPR and the appropriate fee is paid.
All branch offices must also have their registration renewed every two years. Sales associates registered under the supervision of your brokerage are then permitted to work across your principal office and registered branch offices.
Temporary shelters used by your sales associates may or may not be considered a branch office, depending on the tasks carried out and the duration of the use of the shelter.
Example: A temporary shelter will not be classed as a branch office if the purpose of the shelter is to protect sales associates and customers on a construction site. This could include a construction trailer located in a subdivision.
3. Brokerage Sign Requirements
Every broker must maintain a sign on or about the entrance of the principal office and branch offices’ entrances.
- Signs must be positioned to be easily seen by anyone who enters the office.
- Each sign must be posted on either the office’s exterior or interior entrance area (Section 475.22, F.S.)
- Each office entrance sign must contain the broker’s name as registered with the FREC and the trade name, if any.
- For a partnership or corporation, the sign must include the name of the firm or corporation or the trade name of the firm or corporation, together with the name of at least one of the brokers.
- In addition, each sign must at least display the words “Licensed Real Estate Broker” or “Lic. Real Estate Broker.” (No other abbreviations are allowed.)
With the passage of the changes to Section 475.22, F.S., effective July 1, 2003, there is no longer a minimum size requirement for the letters in the sign. If you maintain a registered office in your residence, you are not required to post the office entrance sign on the front door or outside your home. The sign may be posted on the exterior of the door to the actual office.
If you wish to include a sales associate or broker associate on your brokerage sign, you must not include their name next to your name (the licensed broker). The associates’ names must be separate, and their license type must be clearly stated.
4. Accessibility – Americans with Disabilities Act (ADA)
A brokerage office, by law, is considered public accommodation and a commercial facility. Therefore, the location of a real estate office must comply with federal and state laws regarding physical and mental handicapped accessibility.
Title III of the Americans with Disabilities Act (ADA) governs Florida real estate office accessibility.
You must be aware of these laws when opening a brokerage office and may wish to consult a local inspection department or consultant to inspect your brokerage office to ensure you comply with the law.
The Americans with Disabilities Act also applies to brokers with registered home offices.
- The office must have a minimum amount of clearly marked accessible parking spaces.
- The law requires a ramp for wheelchairs and rooms inside the office big enough to accommodate the wheelchairs.
- Any work or renovation to a real estate office must comply with ADA guidelines.
A broker setting up their office should consider all these factors when choosing a location.
Do you want to get your real estate broker license in Florida and open your own real estate brokerage?
Follow the link to view our 72-Hour Broker Pre-License Course and Out Of State Packages. Enroll Now and Save 40%
30 Days Limited Money Back Guarantee Policy
If you decide you’re not 100% satisfied within the First 30 Days of your initial purchase, simply contact us by email and request a cancellation and full refund. You will receive a full refund of your purchase price. If the final exam has been taken, a refund can not be issued. The Real Estate Exam Prep Master and the Exam Prep Math, if purchased separately are not refundable.
Course Duration
The course is active for six months from the date of purchase. We offer the 7th month for free if needed. If your course has been active for 7 months or more, you can purchase one-month extensions. It is possible to have the course extended by up to one year by purchasing monthly extensions online.
Customer Support: Call us at (877) 331-6235 or Contact us by Email
If we can assist you with Technical Support, General License Inquiries or Questions about Course Material please contact us.
Questions about course material: An Instructor is available Monday through Friday a week from 9 am to 7 pm (EST)
Technical Support or any other questions: Our office staff are available Monday through Friday a week from 9 am to 7 pm (EST)
We do our best to reply promptly to emails on Weekends
*Except for Major Holidays
Join Over 100,000 Students Enroll With MLS Campus now
Become Part of MLS Campus School to Further Your Career.