Florida Broker Practice Exam

Is it a violation of license law to pay an unlicensed person for the referral of real estate business?

1. Yes

2. No

3. Only if the amount exceeds a certain limit

4. Only for residential properties

The correct answer is: Yes

Paying an unlicensed person for the referral of real estate business is indeed a violation of license law. In the state of Florida, as in many other jurisdictions, real estate transactions require the involvement of licensed professionals to ensure consumer protection and adherence to legal standards. The law strictly prohibits any compensation or payment for services related to real estate activity to individuals who do not hold a valid real estate license. The rationale behind this regulation lies in the intention to prevent unqualified individuals from engaging in activities that could adversely affect consumers' interests, such as providing misleading information or lack of accountability. Therefore, any arrangement where an unlicensed person receives payment for a referral of business is unlawful and constitutes a breach of the provisions established by the Florida Real Estate Commission. Overall, the clear expectation is that only licensed professionals can receive compensation for real estate-related activities, thereby maintaining the integrity and professionalism of the real estate industry.