Referrals

Referrals

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  • Section 475.25(1)(h), Florida Statutes, prohibits real estate licensees from sharing a commission with, or paying a fee to, any person “not properly licensed as a broker, broker-associate, or sales associate” under Florida law who refers “real estate business, clients, prospects, or customers” to a real estate licensee. Section 475.42 (1) (a), Florida Statutes, now stipulates that a person who operates as a broker or sales associate without being the holder of a valid and current active license “commits a felony of the third degree.” Pursuant to Section 775.082, Florida Statutes, third degree felonies are punishable by a term of imprisonment not exceeding five years. Section 475.25(1)(h), Florida Statutes, permits a “licensed broker of this state to share a real estate brokerage commission with a broker licensed or registered under the laws of a foreign state so long as the foreign broker does not violate any law of this state.” It’s been FREC’s (Florida Real Estate Commission) position that a Florida broker may pay a referral fee or share a commission with someone from a foreign country that lacks licensing requirements so long as: 1) the person has not violated the laws/regulations of the country where the referral is being made and; 2) the person has not violated Florida law.