Florida License Law
A Florida real estate sales associate earns a commission on a sale. Who is legally entitled to receive and pay the commission?
AThe sales associate directly from the closing agent
BThe sales associate's employing broker, who then pays the sales associate✓ Correct
CThe title company, which distributes funds to all parties
DThe sales associate's entity (LLC) if they have formed one for tax purposes
Explanation
Under Florida law, commissions must be paid to and through the employing broker — not directly to the sales associate. The broker then pays the sales associate their portion. Even if a sales associate has formed an entity (LLC, PA) for tax purposes, the commission must still go to the broker first. The broker cannot pay a commission directly to an unlicensed entity, though they can pay to a licensed entity owned by the sales associate.
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