Florida Broker Practice Exam

What must be done for a trade name to be valid in real estate brokerage?

1. It must be registered with the local government

2. It must be noted in the records of the Commission and on the broker's license

3. It must be established as a corporation

4. It must be filed as an LLC

The correct answer is: It must be noted in the records of the Commission and on the broker's license

For a trade name to be valid in real estate brokerage, it must be noted in the records of the Commission and appear on the broker's license. This means that the appropriate state regulatory body must officially recognize the trade name associated with the brokerage. The purpose of this requirement is to ensure that the trade name is properly authenticated and associated with the licensed broker, providing transparency to the public and maintaining regulatory oversight. This stipulation helps to prevent confusion in the marketplace, ensuring that consumers can identify the responsible party behind a brokerage's operations. By requiring the trade name to be officially recorded, the Commission promotes accountability and adherence to local real estate laws and regulations.