23 . Types of Business Entities that May Register as a Real Estate BrokerageA broker may wish to do business as abusiness entityinstead of using his own name.
The broker should consult with his own attorney or accountant to find the specific entitythat meets his specific needs. These companies will need to be registered with the DBPR.These specific types of business units can be registered:End of Page
24 . More forms of Real Estate Business EntitiesGeneral Partnership: is a business owned by more than onebroker. Each partner in a general partnership is liable for any debt; each partner helps tomake the decisions and receives a share of the profits. At least one of the brokers mustbe specified asthe active broker.All partners dealing with the public must be anactive broker.A sales associate or a broker associate cannotbe partners in a generalpartnership. Any change in the makeup of the partnership must be reported to the FREC.The partnership is registered with the FREC but does not have to be filed with theSecretary of State.If the primary broker dies, that broker must be replaced by another active brokerwithin 14 days. If this does not occur, the partnership registration is cancelled andall the licensees associated with the partnership become involuntarily inactive.A general partnership is dissolved by:agreement of the partners
End of Page25 . More forms of Real Estate Business EntitiesLimited Partnerships:is a business owned byat least one general partner and atleast one limited partner.All the management is done by the general partner. Limitedpartners contribute investment cash but are limited in the amount of liability to the amountof money they have already given. Limited partners (sometimes called silent partners) donot have a voice in the managing of the company. The limited partnership is registeredwith the FREC, and at least one of the general partners must be an active broker.The partnership is created by filing with the Secretary of State. The partnership must bealso be registered with the FREC. General partners who work with the public must beactive brokers and licensed with the FREC. All other general partners must also beregistered with the DRE. Limited partners do not have to be licensed or registered. Salesassociates and broker associates cannot be general partners but they may be limitedpartners.
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Requirements to Register a Real Estate Company
To qualify a real estate company, it requires:
- At least one active Florida Broker who is an officer, director, member, manager, or partner of the entity. This must be reflected on the Department of State, Division of Corporation website www.sunbiz.org
- Sales Associates may not be an officer, director, member, manager, or partner of a real estate company
- Broker-Associates may not be an officer, director, member, manager, or partner unless they upgrade to active qualifying broker with the new company.
- Initial fee $77.00
- Form DBPR-RE 7 - Application for Real Estate Company (this may be filled out using our online service or printable application)
Please click here to access the requirements and application located on dbpr website www.myfloridalicense.com
References:
- Chapter 475.15, F.S.
- A.C. 61J2-4
- A.C. 61J2-5
More Details:
- Division of Real Estate Page
Additional Links:
- Department of Business and Professional Regulation Page
- Real Estate Application & Transaction selection page