Opening up a Real Estate Brokerage in Florida

In order to become a broker in Florida, you need to:

1. Have an active sales associate license for 24 months, or submit certification of history if you have had an active license in a different jurisdiction that has reciprocity with Florida via a mutual agreement.
2. Complete 72-hour FREC approved pre-licensing course for brokers.
3. Submit an application, fingerprints and pay a fee.
4. Pass the broker exam (75% or higher) administered by Pearson Vue.

Once you pass the exam, you will remain active with the company currently holding your license as the broker associate. When you decide to become a qualifying broker, you will have to apply with the Department of Business and Professional Regulation (DBPR).

To act as a broker, you can do so in one of three ways:

As a Sole Proprietor. All you need to do is submit RE 13 application with the DBPR.

As a Qualifying Broker of an existing brokerage. All you need to do is to make sure your name is listed with the Department of State, and submit RE 13 application with the DBPR.

Or, as a Qualifying Broker of a new brokerage. The process is simple. See below.

If you intend to register a new brokerage, you will need to note the following:

• Choose whether you or another broker will serve as a Qualified Broker. The company must have at least one active broker qualifying the company.

• Register a new entity with the Florida Division of Corporations. Determine which structure is best for you. The most common entity is a limited liability company (LLC).
  1. Check name availability;
  2. File Articles of Organization; and
     1. Formation fee: $125
     2. Annual Report: $138.75. It must be filed with the Division of Corporations between January 1st and May 1st of every year to maintain “active” status. If not paid by May 1st, a $400 late fee will be added
  3. Create an Operating Agreement. This document is created internally if your brokerage/business includes 2 or more brokers sharing revenue in the brokerage.

• File for a Federal Employer Identification Number (FEIN). This allows your business to be considered qualified. You will not be able to submit your application with the DBPR until you the company has been issued a FEIN.

• Submit RE 7 application with the DBPR.
  1. Include a check in the amount of $77, payable to the “Florida Department of Business and Professional Regulation.”
  2. Your mailing address can be a P.O. Box, but not your business address.
  3. List all brokers with the company. All “Active” brokers must be listed as an officer, director, partner, member or manager of the business with the Florida Division of Corporations.
  4. All non-licensed officers are to be listed as “Inactive.”
  5. A sales associate may not be an officer, director, member, manager or partner. A sales associate may be a shareholder.
  6. List the name and license number of each broker that is to be associated with the company. If listed as an “Inactive” broker, they may not participate in real estate related duties. You may be an inactive broker in this company only if you are a broker in another company.
  7. A person may not hold designations as both a broker (active or inactive) and a broker sales associate at the same time.
  8. Multiple License Request: if a listed broker is currently qualifying another company (brokerage) and wishes to continue operating as a qualifying broker for that company, then a multiple license must be requested. If you do not request a multiple license, your relationship status with the previous company will be ended.

• Wait for approval from the DBPR. Once received, congratulations! You are officially a new real estate brokerage.

Disclaimer: The information provided herein does not, and is not intended to constitute legal advice. All content on this website is for general informational purposes only.