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.
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