Florida Broker Practice Exam

Under which circumstance can sales staff of an owner developer be exempted from licensure?

1. If they receive commission-based pay

2. If they are strictly paid a salary

3. If they operate under a broker

4. If they work part-time

The correct answer is: If they are strictly paid a salary

Sales staff of an owner developer can be exempted from licensure when they are strictly paid a salary. In the state of Florida, individuals who are employed by an owner-developer and receive a salary are not required to hold a real estate license. This exemption exists because salaried employees are typically considered to be working for the owner developer rather than engaging in licensed real estate activities on behalf of others. In contrast, commission-based pay typically indicates that the individual is engaging in activities that require licensure, as they are often in a role similar to that of a real estate agent. Operating under a broker may suggest that the individual is practicing real estate, which also would necessitate licensure. Working part-time does not inherently provide an exemption, as the need for a license is generally determined by the nature of the compensation rather than the hours worked. Thus, the key factor for exemption in this case is the method of compensation—salary versus commission.