September 8, 2015 Issue

ASK FRED


Planning to open an office encompasses many decisions, including where to locate.


 

Question:  I am recently licensed as a real estate broker and since my business is fairly new, I am uncertain about where I’d like to open the doors to an office so am wondering if I’m allowed to work out of my home for the time being?

 

Answer:  A quick reading of Florida Administrative Code (F.A.C.) Rule 61J2-10.002 answers your question.  F.A.C. 61J2-10.002 states that you may maintain your office in a residential location, but you must meet the minimum requirements for an office found in section 475.22(1), F.S., and you must display the required broker’s sign.  Further, sales associates must be registered from and work out of an office maintianed and registered in the name of the employer.  Keep in mind you must also follow zoning rules for your area, if any.

Click to read the statute.

 

Thanks for asking, Fred Gray
Have a question for Fred?Click here!

 

 

 

 

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Broker's Lien
Right to collect your commission

on commercial sales

 

As a real estate broker, you are allowed by law to attach a broker’s lien for your commercial sales commission upon the owner’s net proceeds.  The lien attaches to the owner’s personal property net proceeds only, and not to the real property itself.  Under section 475.703, F.S., a broker has a lien upon the owner’s net proceeds from the disposition of commercial real estate for any commission earned by the broker with respect to that disposition pursuant to a brokerage agreement.

 

The statute further provides that a commission is payable at the time provided in the brokerage agreement and if the commission is made conditional upon the occurrence of an event and that event does not occur, then the broker may not enforce a lien for that commission.

 

The broker’s lien belongs to the broker named in the brokerage agreement and not an employee or independent contractor of the broker, which means that only the broker may enforce the lien.  The broker’s right to the broker’s lien may not be waived before the commission is earned and may only be waived by the broker if he or she so chooses.


As a broker, you must disclose to the owner at or before the time the owner executes the brokerage agreement that a right to a broker’s lien for a commission earned by the broker is not waivable before the commission is earned by the broker.  If the required disclosure is not made then you may not enforce your broker’s lien. 

 

The appropriate language for the disclosure is as follows:

THE FLORIDA COMMERCIAL REAL ESTATE SALES COMMISSION LIEN ACT PROVIDES THAT WHEN A BROKER HAS EARNED A COMMISSION BY PERFORMING LICENSED SERVICES UNDER A BROKERAGE AGREEMENT WITH YOU, THE BROKER MAY CLAIM A LIEN AGAINST YOUR NET SALES PROCEEDS FOR THE BROKER’S COMMISSION. THE BROKER’S LIEN RIGHTS UNDER THE ACT CANNOT BE WAIVED BEFORE THE COMMISSION IS EARNED.

 

Click to read the statute

 

Note: Gray Systems, Inc is not a law firm and this article does not constitute, nor is it intended to be, legal advice or an interpretation of law. All sources are cited, and a matter of public record.

 

 

Drones for real estate surveillance?  

Hearing about drones hovering overhead is becoming commonplace and maybe you’re wondering, “May I use a drone to take a closer look at real property listings?”  The short answer is, “NO!”  In 2015, Florida enacted its own version of a Freedom from Unwarranted Surveillance statute, found at section 934.50, F.S.  The longer answer is that the statue details the prohibitive uses of drones and a person, a state agency, or a political subdivision may not use a drone equipped with an imaging device to record an image of privately owned real property or of the owner, tenant, occupant, invitee, or licensee of such property with the intent to conduct surveillance on the individual or property captured in the image in violation of such person’s reasonable expectation of privacy.  A person could of course, give consent to such surveillance. 

 

A reasonable expectation of privacy means privacy on a person’s privately owned real property if he or she is not observable by persons located at ground level in a place where they have a legal right to be, regardless of whether he or she is observable from the air with the use of a drone.  In other words, you can’t attempt to peer into the backyard or inside the house of another with a drone. 

 

Exceptions to the prohibitive uses for a drone exist within the statute, but they really only apply to law enforcement, the United States government or licensed state agencies and utility companies.  For instance, the electric, water or natural gas departments may use a drone to read the meter! 

 

A violation of the statute may be adjudicated in a civil action and the owner, tenant, occupant, invitee, or licensee of privately owned real property may seek compensatory damages and injunctive relief to prevent future violations. Click to read the statute

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111 E Central Avenue Howey-in-the-Hills Florida United States
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