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JOHN COLIN & CO.
Compliance · Legal · Risk

The House Standards.

Every form, every deadline, every rule. The standard we hold ourselves to — and how to stay protected on every transaction.

I Critical Alerts — Read First

These two issues account for the majority of agent liability claims and license complaints. Treat them as non-negotiable rules.

Critical · #1 Fraud Threat
Wire Fraud — Verify Every Wire Verbally
  • Never trust wire instructions received by email — fraudsters spoof title-company addresses.
  • Always call the title company at a number from your own records (not from the email) to verify.
  • Send the Wire Fraud Advisory to your buyer at contract acceptance — in writing.
  • If an "update" to wiring instructions arrives by email or text, stop — call to verify before any client wires.
  • Report any suspected fraud to FBI's IC3 (ic3.gov) and the title company immediately.
Critical · Fair Housing
Fair Housing — When in Doubt, Say Nothing
  • Federal protected classes: race, color, religion, sex, national origin, familial status, disability.
  • Never describe neighborhoods using "safe," "good schools," "family-friendly," or similar coded terms.
  • Never steer buyers toward or away from areas. Show them what they ask for.
  • Service animals are not pets — they must be accommodated regardless of "no pet" rules.
  • If a seller asks you to exclude a buyer based on a protected class, refuse — and document the refusal.
II Required Florida Forms & Disclosures

Every transaction. Every time. Missing a form is the fastest path to a FREC complaint or post-closing lawsuit.

Exclusive Right of Sale (ERS-19)
At Listing
The listing agreement. Must be fully executed before the home is entered in MLS.
Seller's Property Disclosure (SPDR)
At Listing
Seller's written disclosure of known material defects. Required by Florida case law (Johnson v. Davis). Failure to disclose = lawsuit.
Working with Real Estate Agent Brochure
First Substantial Contact
Discloses the brokerage relationship — Single Agent, Transaction Broker, or No Brokerage. Must be presented before discussing confidential info.
Lead-Based Paint Disclosure
Pre-1978 Homes
Federal requirement. 10-day inspection right for buyer. Hefty fines for non-compliance.
HOA Disclosure Summary
FL 720.401
For mandatory HOA communities. Must be delivered before contract — buyer can void within 3 days of receipt.
Condominium Disclosure / Docs
FL 718
Includes association docs, financials, FAQs. 3-day cancellation right post-receipt. New-construction = 15-day right.
Radon Gas Disclosure
Every FL Sale
Statutory language required in every Florida real estate contract — including the FAR/BAR form.
Coastal Construction Control Line
If Applicable
Required for properties seaward of the CCCL. Common for SWFL beachfront.
Property Tax Disclosure
FL Statute
Buyer must be informed that their taxes may differ significantly from the seller's after closing (no portability assumed).
Wire Fraud Advisory
At Contract
Sign and deliver to both parties. Documents that the warning was given. Critical liability protection.
Buyer Broker Agreement
Before Showing
Post-NAR settlement (Aug 2024): required in writing before showing a buyer any MLS-listed home.
FAR/BAR or FAR-9 Contract
Offer Stage
"As Is" or "Standard" version. Approved by FL Realtors & FL Bar. Agents may complete — only attorneys may modify.
FIRPTA Affidavit
Closing
Foreign Investment in Real Property Tax Act. 15% withholding on foreign seller proceeds unless exempt. Title handles, but agent should know.
W-9 from Seller
Closing
Required for 1099-S issuance. Title collects at closing.
Closing Disclosure (CD) / ALTA
3+ Days Pre-Close
CD must reach buyer at least 3 business days before closing. Material changes restart the 3-day clock.
Flood Zone Disclosure
If Applicable
SWFL: most coastal properties. FEMA flood zone determination + insurance availability disclosure recommended.
III Transaction Timeline — What's Due When

Florida statutes and the FAR/BAR contract enforce strict deadlines. Missing them can void rights, forfeit deposits, or trigger litigation.

Phase 01
Pre-Listing
  • At Hire: Working with Real Estate Agent brochure delivered.
  • At Listing: ERS-19 + Seller's Property Disclosure signed.
  • At Listing: Lead-Based Paint Disclosure if pre-1978.
  • At Listing: HOA Disclosure Summary (if applicable).
  • Before MLS: All photos owned/licensed; verify CCCL if coastal.
Phase 02
Offer & Acceptance
  • Day of Offer: Use approved FAR/BAR form — do not draft custom contract language.
  • Day of Acceptance: Wire Fraud Advisory + Buyer Broker Agreement on file.
  • Within 3 business days: Earnest money delivered to escrow agent.
  • Day of Acceptance: Send fully executed contract to title, lender, both clients.
Phase 03
Inspection & Diligence
  • Within Inspection Period: Buyer must complete inspections and deliver objections in writing.
  • Inspection Period Expires: Buyer's right to terminate (As Is contract) ends. Document everything in writing.
  • Within 3 days of HOA/Condo doc receipt: Buyer's cancellation right ends.
Phase 04
Financing & Appraisal
  • Within 5 days: Buyer must submit complete loan application (unless contract states otherwise).
  • Loan Approval Date: Buyer must obtain financing commitment by stated date — else risk losing deposit.
  • Appraisal: If under contract price, buyer's options must be exercised within contract terms.
Phase 05
Closing Preparation
  • 3+ Business Days Before Closing: Closing Disclosure must be in buyer's hands.
  • Material CD Changes: Restart the 3-day clock.
  • HOA Estoppel: Order 10–15 days before close.
  • Final Walk-Through: Schedule 24–48 hours before close.
  • Wire Verification: Buyer should call title to verify wire instructions verbally.
Phase 06
Closing & After
  • At Closing: W-9, FIRPTA affidavit, all signatures.
  • Within 24 Hours: Update MLS to Sold; remove signage.
  • Within 30 Days: Submit complete transaction file to broker for compliance review.
  • 5 Years: Retain all transaction records (Florida requirement).
IV Florida Brokerage Relationships

Florida does not permit dual agency. You operate under one of three defined relationships — and you must disclose which one before discussing anything confidential.

Transaction Broker
Limited Representation
The presumed relationship in Florida unless otherwise disclosed in writing. You provide service without fiduciary duty.
  • Deal fairly and honestly
  • Account for funds
  • Skill, care, diligence
  • Disclose material facts
  • Confidentiality (within statute)
  • NO fiduciary loyalty
Single Agent
Full Fiduciary Representation
Highest duty of care. You owe full fiduciary obligations — but can only represent one side.
  • Loyalty
  • Confidentiality
  • Obedience
  • Full disclosure to client
  • Accounting
  • Skill, care, diligence
  • Must be disclosed in writing
No Brokerage Relationship
Customer Service Only
No representation. You assist the party but owe no fiduciary obligation. Disclosure must be in writing.
  • Honest dealing
  • Disclose material defects
  • Account for funds
  • NO loyalty
  • NO confidentiality beyond statute
  • Common with FSBOs or unrepresented buyers
V Escrow & Earnest Money Rules

FREC closely monitors escrow handling. Mistakes here can trigger investigation, fines, or license revocation.

  • Deposit DeadlineEarnest money must be in escrow within 3 business days of contract acceptance — unless the contract states otherwise.
  • Where HeldHeld by brokerage, title company, or attorney trust account. Always disclosed in the contract.
  • Commingling ProhibitedTrust funds may never be mixed with operating accounts. Strict separation.
  • Conflicting DemandsIf buyer and seller both demand the deposit, broker must notify FREC within 15 business days and follow one of four resolution procedures.
  • RecordkeepingReconcile escrow accounts monthly. Retain records 5 years.
  • DisbursementOnly on written authorization from both parties, court order, or FREC-approved resolution.
  • ReceiptsEarnest money receipt must be delivered to the depositor.
VI Common Compliance Pitfalls

These mistakes appear in nearly every FREC disciplinary case. Know them. Avoid them.

Net Listings
Illegal in FL
Promising the seller a "net" price while keeping any excess is prohibited. Always use standard commission structures.
Practicing Law
Statutory Violation
Agents may complete approved FAR/BAR contracts but cannot draft custom legal language, give legal advice, or modify clauses. Refer to an attorney.
Dual Agency
Not Allowed in FL
Cannot represent both buyer and seller as a Single Agent. Must use Transaction Brokerage or Designated Sales Associates.
Signing for Clients
Forgery
Never sign or initial documents for a client — even with permission. Use e-signature platforms.
Failure to Disclose Material Facts
High Liability
Anything that materially affects value or desirability (mold, prior flood, sinkhole, structural) must be disclosed when known.
Late Earnest Money Deposit
FREC Discipline
Beyond 3 business days without contract authorization = escrow violation. Audit trail required.
Advertising Without Brokerage Name
DBPR Fine
Every ad, post, sign, and listing must include "John Colin & Co." — the agent's name alone is not enough.
Email/Text as Record
Recordkeeping
All transaction-related communication is part of the file. Retain 5 years. Personal phone texts are not protected.
"Pocket Listings" Without MLS
Policy & MLS Rules
NAR Clear Cooperation Policy requires MLS submission within 1 business day of public marketing. Limited exceptions only.
Using Stigma to Steer
Fair Housing
"This neighborhood is changing" / "It might be too quiet for you" / "You'd be more comfortable in…" — all fair housing red flags.
VII Fair Housing — Deeper Dive
  • Federal ClassesRace · Color · Religion · National Origin · Sex (incl. orientation/identity) · Familial Status · Disability.
  • Florida AddsAge (in some jurisdictions) — be aware of county-specific protections.
  • SteeringDirecting buyers toward or away from neighborhoods based on demographic assumptions. Never characterize neighborhoods by who lives there.
  • Coded LanguageAvoid: "safe," "exclusive," "quiet," "good schools," "family-friendly," "Christian community," "no children." Describe the home, not the people.
  • Service AnimalsNot pets. Must be accommodated in "no pet" properties. Cannot ask for proof beyond reasonable inquiry. Emotional support animals have similar protections under FHA.
  • AccessibilityReasonable accommodations and modifications must be allowed (at tenant's expense in rentals).
  • Sellers' Discriminatory InstructionsIf a seller asks you to discriminate (e.g., "no families with kids"), refuse in writing and notify your broker.
  • TestersHUD & private organizations conduct fair housing testing. Treat every inquiry identically.
VIII Advertising & Marketing Compliance
  • Brokerage NameEvery ad must clearly include "John Colin & Co." — equal or greater prominence than the agent's name.
  • License StatusUse of "Realtor" requires active NAR membership. Use of "Broker" requires broker license.
  • Truth In AdvertisingNo misleading statements. No outdated SOLD signs left up beyond reason. No exaggerated claims ("#1 agent" without verifiable data).
  • Listing PhotosYou must own or have license to use photos. MLS photos belong to the listing brokerage — do not reuse without permission.
  • Drone FootagePilot must be FAA Part 107 certified. Drone use in restricted airspace (TFRs, airports) requires authorization.
  • Testimonials & ReviewsFTC rules: must be genuine, with substantiation. Cannot pay for reviews. Disclose material relationships.
  • Music in VideosMust be licensed (DMCA). Most stock services include licensing — verify before posting.
  • TCPA & TextingPrior express written consent required for marketing texts/calls. Honor opt-outs immediately. Maintain DNC scrubbing.
  • CAN-SPAMMarketing emails must have an unsubscribe link, physical address, and accurate sender info.
IX Frequently Asked Questions

The questions agents ask compliance most often. Click to expand.

Can I represent both buyer and seller on the same transaction?

Not as a Single Agent — Florida prohibits dual agency. You can serve both as a Transaction Broker, which provides limited representation to each. Both parties must be informed in writing of the transition. An alternative: Designated Sales Associates (two agents from the same brokerage representing each side) — permitted for non-residential transactions over $1M.

When does earnest money need to be deposited?

By default, within 3 business days of contract acceptance (the Effective Date). The FAR/BAR contract allows the parties to specify a different deadline. Document the deposit with a receipt and store proof in the file.

What happens if a seller doesn't disclose a known material defect?

Under Johnson v. Davis, Florida sellers must disclose known material defects affecting property value that are not readily observable. Failure can result in buyer rescission, damages, and attorney's fees. As the agent, if you know about a defect, you must disclose — even if the seller refuses.

Do I need to disclose a death or stigma in the home?

Florida Statute 689.25 says you are not required to disclose that a home was the site of a death (including homicide, suicide) or that an occupant had HIV/AIDS. However, if a buyer asks directly, you cannot lie. Practical guidance: when asked, refer them to public records or law enforcement.

Can I write the contract myself or modify clauses?

You may complete approved FAR/BAR forms (filling in blanks). You may not draft custom legal language or substantially modify clauses — that's the unauthorized practice of law. For anything non-standard, route the client to a real estate attorney.

What if my buyer wants to make an offer on a FSBO?

Have your Buyer Broker Agreement already in place. Approach the FSBO seller in writing with a one-time-showing or compensation agreement specifying who pays what. Never assume the seller will cooperate with compensation — get it in writing before showing.

When does the buyer get the condo docs, and what's the 3-day right?

Under FL Statute 718, a buyer of a resale condo has 3 days from receipt of the governing documents (declaration, bylaws, financials, FAQ, articles, rules) to cancel the contract. For new construction, it's 15 days. Document the delivery date carefully — that starts the clock.

Can I sign or initial documents for my client if they're traveling?

No — never. That's forgery, even with verbal permission. Use DocuSign or Dotloop, which work from any device anywhere in the world.

What's the difference between FAR/BAR "As Is" and "Standard"?

As Is: Buyer has the inspection right but the seller is not obligated to make repairs. Buyer's only remedy is to terminate within the inspection period. Most common in SWFL.

Standard: Seller is obligated to repair up to a specified dollar limit. More seller risk.

How long do I keep transaction records?

Florida: 5 years minimum from closing or termination. IRS: 7 years for tax-related records. Recommended: keep digital copies indefinitely — storage is cheap, lawsuits are not.

What is FIRPTA and when does it apply?

Foreign Investment in Real Property Tax Act. When a foreign person sells US real estate, the buyer (through title) must withhold 15% of the gross sales price and remit to IRS. Exemptions exist (e.g., property under $300K with personal use). Title handles the paperwork — but the agent should flag foreign seller status early.

Do I need a Buyer Broker Agreement before showing a home?

Yes. Following the August 2024 NAR settlement, a written buyer agreement is required before touring any MLS-listed property. The agreement must specify compensation terms, and you cannot collect compensation higher than stated.

Can I refuse to show a property to someone?

You can decline service for legitimate, non-discriminatory reasons (unqualified financing, no buyer rep agreement, scheduling). You cannot refuse based on any protected class. Apply the same standards to every buyer.

What if both parties demand the earnest money?

If broker holds the escrow and the parties make conflicting demands, the broker must notify FREC within 15 business days and follow one of four procedures: mediation, arbitration, litigation, or escrow disbursement order from FREC. Never release on one party's demand alone.

How do I handle a wire fraud attempt?

If a client receives suspicious wire instructions: STOP. Call title at a verified number from your own records. If funds were already wired, contact the receiving bank and the FBI's Internet Crime Complaint Center (ic3.gov) within 72 hours for the best recovery chance. Notify broker immediately.

What are my CE requirements?

Florida license renewal: every 2 years. 14 hours of CE including 3 hours of Core Law. First renewal post-licensing requires a 45-hour Post-License course instead. NAR Code of Ethics training is required every 3 years.

What if I find out a previous agent committed fraud on this transaction?

Notify your broker immediately. The broker decides whether to report to FREC (often required), the client, and potentially law enforcement. Document everything in writing. Don't continue the transaction without consulting your broker and possibly counsel.

Can I represent a family member?

Yes, but you must disclose the relationship in writing to all parties to the transaction (typically in the listing/buyer agreement and to the cooperating broker). This protects you and the brokerage from claims of conflict.

Can I post a listing on social media before it hits MLS?

NAR's Clear Cooperation Policy requires submission to MLS within 1 business day of any public marketing. "Public marketing" includes social media posts, yard signs, websites, and emails to anyone outside the brokerage. Office-exclusive listings are limited and require seller's written consent.

What's the "Effective Date" of a contract?

The date the last party to sign communicates acceptance to the other (typically when the broker receives the signed contract back). All timelines run from this date. Write it on the contract. Confusion here is a top source of disputes.

What if a seller is hiding mold or a leak from inspection?

You cannot facilitate concealment. If you know the seller is actively hiding a material defect, you must refuse to participate. Document the situation in writing, notify your broker, and if the seller persists, withdraw from the representation. Failure to act puts your license at risk.
No questions match that search.
X Hotlines & Resources

When in doubt, ask. Better to call a hotline for ten minutes than face a FREC complaint for ten months.

This page summarizes Florida real estate compliance for John Colin & Co. agents. It is not legal advice. For specific situations, consult a licensed Florida real estate attorney or the FL Realtors Legal Hotline.