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Ray
Ray, Lawyer
Category: Real Estate Law
Satisfied Customers: 38256
Experience:  Texas Attorney for 30 years dealing in real estate
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Can a real estate sales llc pay its unlicensed directors a

Customer Question

Can a real estate sales llc pay its unlicensed directors a share of the profits from
income received from commissions?
Submitted: 1 year ago.
Category: Real Estate Law
Customer: replied 1 year ago.
(Posted by JustAnswer at customer's request) Hello. I would like to request the following Expert Service(s) from you: Live Phone Call. Let me know if you need more information, or send me the service offer(s) so we can proceed.
Expert:  Ray replied 1 year ago.
Hi and welcome to JA. I am Ray and will be the expert helping you today.
I wanted to help you about your situation.I an unable to do a phone conference but let me try and resolve this for you without additional service.
Here Florida law likely prohibits you from doing this.Either the directors have to become licensed or you come up with a different mechanism to compensate them.
Section 475.25(1)(h), Florida Statutes, prohibits a Florida licensee from paying a fee or compensating someone who doesn’t hold a real estate license in Florida or another state.
You would want to request an informal opinion here to verify whether you can do what you want to do here.This opinion would then give you authority to proceed if they give you the green light or let you know that this is not possible under the statute above.
I appreciate the chance to help you today.I will be happy to answer any follow up you have her by email if that is ok.Thanks again.
Expert:  Ray replied 1 year ago.
Here is the entire statute I referenced above.
http://www.leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Statute&Search_String=&URL=0400-0499/0475/Sections/0475.25.html
Florida is pretty strict on who can split commissions here.The board members of the LLC could seek licensure as an option to receive payments as an alternative.
You should consider the informal opinion here the real estate commission has the final say.
Thanks again.