Twelve Real Estate License Violations to Avoid in 2026 (Part 2)

Snow may not be in the air in Florida, but the holiday season is almost here. With the new year come new business prospects and with them new challenges and potential pitfalls. To help you deal with these challenges, here is the second half  of a list of twelve real estate violations for licensees to avoid in the new year, based on the most common recent disciplinary actions seen by the Florida Real Estate Commission (“FREC”):

Florida Real Estate Record-Keeping Requirements for 2026

1. § 475.5015, F.S. – Failing to maintain required records for a statutory retention period. This violation involves the failure to keep records, such as transaction files or escrow materials, for the period of time mandated by law. The best way to avoid this violation is to implement a strict system for record maintenance and use routine record audits to ensure that your system is being followed. Note that, as a licensee, the duty is on you, not your staff members, to maintain records. Accordingly, it is your responsibility to ensure that your staff is doing this, as a failure to do so by your staff member will not be viewed as an acceptable excuse by the FREC.

What Counts as Dishonest Dealing or Misrepresentation in Florida Real Estate?

2. § 475.25(1)(b), F.S. – Committing dishonest dealings, making false promises or misrepresentations to induce a transaction, committing culpable negligence or breach of trust, or violating a duty imposed by a law or contract in a real estate transaction, among other violations. This is a large violation that encompasses a wide range of actions. However, most of these are addressed in a fairly simple manner: by engaging in honest and fair dealings as a real estate licensee, even in situations where being honest could decrease the chances of a successful transaction.

Can Florida Sales Associates Perform Broker Duties or Work for Multiple Employers?

3. § 475.42(1)(b), F.S. – Operating as a broker while a sales associate or as a sales associate for any person who is not registered as the associate’s employer. These are two different violations, although they may be present in the same situation. First, a sales associate may not engage in tasks that are limited to a broker. A common example is that only a broker may maintain an escrow account for client funds; when a sales associate maintains their own escrow account, this is a violation. Second, a sales associate may not work for another broker that is not their registered employer. An example is that a sales associate cannot be employed by one broker, but then do extra work on the side for another broker that they are not registered with. You can help avoid the first violation by speaking with your broker regarding your duties and their duties, as well as reviewing the applicable statutes and rules. You can help avoid the second violation by keeping firm boundaries as to whom you work for and with and by avoiding engaging in off-the-books work to “assist” another broker in need.

Can a Florida Sales Associate Collect Payments Directly or Sue for Commissions?

4. § 475.42(1)(d), F.S. – Collecting money as a sales associate in connection with a real estate brokerage transaction except in the name of the employer and with the employer’s consent or maintain actions regarding a commission against anyone except for the sales associate’s employer.  Again, these are two different violations. The first takes place when a sales associate takes a payment for a transaction in their own name. Although there may be no ill intent on the associate’s part and they may plan to simply transfer these funds to their broker’s account, their receipt of these funds in their own name is nonetheless a violation. The second takes place when a sales associate files suit against a party to a transaction to obtain a commission they claim is rightfully theirs. This is a violation regardless of the legitimacy of the sales associate’s claim regarding the commission. To avoid both of these violations, a sales associate should communicate with their broker regarding receipt of funds and procedures for addressing grievances over commissions. If a dispute regarding a commission arises, the sales associate’s action should be against their employer, rather than the party to the transaction.

Other Florida Real Estate Statutory Violations to Avoid in 2026

5. § 475.25(1)(a), F.S. – Violating any of a number of statutes pertaining to the practice of real estate. This includes violations such as employment of sales associates without valid licenses, making of false affidavits or affidavits or giving false testimony before the FREC, and knowingly letting title to property be encumbered by false or void devices. You can help avoid these violations by thoroughly reviewing the applicable statutes and ensuring that the items in them are addressed. For example, you can set calendar reminders to renew your license in a timely manner and can ensure that any filings affecting title to property have been reviewed by legal counsel.
   
6. § 475.24, F.S. – Failing to register a branch office. This violation occurs when an office other than a broker’s principal office or a registerd branch office has a sign or is otherwise displaying a broker’s name in a way that would cause the public to reasonably believe that the office is owned or operated by the broker. This includes not just signage or other materials at a physical office location but also includes advertisements of the broker. The FREC also has certain discretion in determining whether the public interest would require registration of a branch office. You can help avoid this violation by avoiding placement of signage or other conspicuous materials which would signal to the public the location of your office at or near any location other than your principal office or a registered branch office.

If you have questions about navigating Florida’s real estate licensing laws or need guidance on avoiding FREC violations, the attorneys at Jimerson Birr are here to help. Contact us today to discuss your situation.