License law guide

Florida Real Estate License Law: Key Chapter 475 Rules for the Exam

What are the Florida real estate license types?

• Broker: for compensation, performs real estate services for others, such as selling, buying, renting, auctioning or appraising real property or business opportunities, or advertising that service (s. 475.01(1)(a), F.S.).
• Sales associate: performs the same acts as a broker, but under the direction, control or management of another person (s. 475.01, F.S.).
• Broker associate: qualified to be licensed as a broker, but works as a sales associate in the employ of another (s. 475.01, F.S.).

A sales associate or broker associate can have only one registered employer at a time (s. 475.215(2), F.S.). A sales associate may collect money in a transaction (commission, deposit, rent) only in the employer's name and with the employer's express consent, and can sue for a commission only against the employer registered at the time (s. 475.42(1)(d), F.S.).

What are the authorized brokerage relationships in Florida?

Under s. 475.278, F.S. a licensee may work with buyers and sellers as a transaction broker or a single agent, or with no brokerage relationship. A dual agent, meaning a broker who represents both buyer and seller as a fiduciary, is not allowed, whether disclosed or not. Every licensee is presumed to be a transaction broker unless a single agent or no brokerage relationship is set up in writing. A customer never has to enter into a brokerage relationship.

What duties does each relationship carry?

Source: s. 475.278(2)–(4), F.S..

Limited confidentiality means a transaction broker may not reveal, unless a party waives it in writing, that the seller will take less than the asking price, that the buyer will pay more than the written offer, what motivates either party, that a party will accept other financing terms, or anything else a party asked to keep confidential (s. 475.278(2)(f), F.S.).

When must the brokerage relationship be disclosed?

• Single agent notice: in writing, before or at the time of entering into a listing or representation agreement, or before showing property, whichever comes first (s. 475.278(3)(b)1., F.S.).
• Consent to transition to transaction broker: written consent from the principal before the change (s. 475.278(3)(b)2., F.S.).
• No brokerage relationship notice: in writing, before showing property (s. 475.278(4)(b), F.S.).

These disclosure rules apply to residential sales: improved residential property of four units or fewer, unimproved residential land intended for four units or fewer, and agricultural property of 10 acres or fewer. They do not apply to nonresidential deals, most rentals and leases, or bona fide open houses with no negotiation (s. 475.278(5), F.S.).

What are the escrow basics?

A sales associate must turn deposits over to the broker by the end of the next business day, and the broker must place them in escrow by the end of the third business day after receipt (Rule 61J2-14.009, F.A.C.; Rule 61J2-14.008, F.A.C.). If the broker gets conflicting demands for a deposit, the broker must notify FREC within 15 business days of the last demand and start a settlement procedure within 30 business days (Rule 61J2-10.032, F.A.C.). The settlement procedures in the statute are an escrow disbursement order from the commission, arbitration (with everyone's consent), litigation (interpleader) or mediation (with everyone's written consent) (s. 475.25(1)(d)1., F.S.). The broker can return a deposit without notifying FREC when a condo buyer cancels under s. 718.503, F.S., or when a buyer in good faith cannot meet the contract's financing terms. The full list of deadlines and limits, with rule citations, is on our Florida escrow deposit rules page.

What education does a Florida license require?

What can lead to discipline under Chapter 475?

Under s. 475.25(1), F.S. the commission can deny, suspend (up to 10 years), revoke, put on probation, fine (up to $5,000 per count or separate offense) or reprimand. Common grounds tested on the exam:

• Fraud, misrepresentation, concealment, false promises, dishonest dealing, culpable negligence or breach of trust. The victim does not need to have suffered a loss.
• Fraudulent, false, deceptive or misleading advertising.
• Failing to account for or deliver money or property, including escrowed deposits.
• A conviction or nolo contendere plea for a crime that directly relates to real estate activities, or that involves moral turpitude or fraudulent or dishonest dealing.
• Paying a commission or referral fee to someone not properly licensed in Florida.

An administrative complaint must be filed within 5 years of the act or of when it was or should have been discovered (s. 475.25(5), F.S.). Operating as a broker or sales associate without a valid, current, active license is a third-degree felony (s. 475.42(1)(a), F.S.).

What are the broker office rules?

Every active broker must keep an office of at least one enclosed room in a building of stationary construction, with a sign at the entrance of the main office and each branch office. The sign shows the broker's name (and trade name, if any) and the words "licensed real estate broker" or "lic. real estate broker" (s. 475.22(1), F.S.).

FAQ

Summaries are our own plain-English wording of the statutes and rules linked above, checked on November 4, 2026. They are a study aid, not legal advice. Official text: Chapter 475, Part I, F.S. and Chapter 61J2, F.A.C.

The Florida State Pack has 497 Florida-law questions on license law, brokerage relationships, escrow and violations, each with a statute or rule citation. Exam facts: questions, passing score, what to bring →