In Florida, a real estate agent operates under the supervision of licensed brokers and must follow regulations set by the Florida Real Estate Commission (“FREC”) and Chapter 475 of the Florida Statutes.
Their primary responsibilities include guiding buyers and sellers through real estate contracts, determining their clients’ needs and financial capabilities, and performing market analyses to estimate property values.
Recent changes in Florida have significantly impacted how agents handle commissions and client relationships. Under new rules, agents can no longer list buyer compensation in the Multiple Listing Service, and buyer’s agents must have signed agreements about their compensation.
Agents spend most of their working time marketing properties, conducting showings, negotiating deals, and preparing real estate documents, while ensuring compliance with Florida’s disclosure requirements.
Real estate agents in Florida have specific legal obligations as licensed professionals. These include avoiding discrimination under fair housing laws, maintaining proper licensing through FREC, completing mandatory continuing education requirements, and adhering to state ethical standards and fiduciary responsibilities. They must also ensure proper disclosure of all material facts about properties and maintain accurate transaction records as required by Florida law.
What Are Real Estate Agents Not Authorized To Do in Florida?
Under Florida law, specifically Chapter 475 of the Florida Statutes and rules established by the Florida Real Estate Commission, real estate agents face several important restrictions on what they are authorized to do.
First, real estate agents cannot practice law by drafting legal documents such as deeds, contracts, or lease agreements beyond filling in standard forms approved by the Florida Bar and FREC. They can utilize standard forms and assist an attorney by providing necessary information, but they cannot draft contracts themselves or give legal advice.
Agents are further prohibited from misrepresenting property conditions, operating without proper licensure, or working independently without broker supervision. They cannot guarantee investment returns, discriminate against protected classes, or receive compensation from multiple parties without full disclosure. Florida law specifically requires written disclosure of all compensation arrangements.
Furthermore, agents cannot perform professional services outside their scope of expertise, such as conducting property inspections, providing property valuations as appraisals, or making repairs to properties they’re selling. Recent Florida legislation has also implemented new restrictions on how commissions can be structured and advertised.
The law prohibits agents from sharing commissions with unlicensed individuals or engaging in deceptive practices. Florida specifically prohibits “net listings,” where a seller sets a minimum price they’ll accept for their property, and the real estate agent keeps any amount above that price as their commission. This practice is considered a violation of fiduciary duty under Florida law.
For example, if a seller agrees to receive $500,000 net from their home sale, and the agent sells it for $600,000, the agent cannot keep the $100,000 difference as commission. This would violate Florida’s regulations on commission structures, as well as violate the agent’s fiduciary responsibilities to the seller.
What Are Misrepresentations and Failures To Disclose?
In Florida, misrepresentations and failures to disclose in real estate transactions are governed by Chapter 475 of the Florida Statutes, Florida Administrative Code, and common law principles. Florida law requires real estate agents to disclose any known material defects, adverse conditions, or circumstances that could reasonably affect a buyer’s decision to purchase.
A misrepresentation occurs when an agent makes false statements about property conditions. Under Florida law, fraudulent misrepresentation in real estate occurs when someone makes a false representation of a past or existing material fact to induce another person into entering a contract, and that person relies on the false information when entering the agreement.
Misrepresentations can also occur when someone makes a false promise about future actions with no intention of fulfilling their promise, provided the promise is material and was relied upon by the other party in entering the contract.
Florida courts may hold the person making fraudulent misrepresentations liable for actual damages, and in cases of intentional misconduct, they may also be responsible for punitive damages, attorney’s fees, and court costs.
A failure to disclose occurs when an agent knowingly conceals material facts about the property. In Florida, material facts can include structural issues, water damage, foundation problems, flooding history, environmental hazards, and legal issues that affect the property. Florida’s Johnson v. Davis case precedent specifically requires disclosure of facts materially affecting the value of property which are not readily observable.
Agents can face serious consequences from FREC, including suspension or revocation of their professional license, for engaging in dishonest conduct or failing to disclose known significant defects.
Florida law further requires agents to act with integrity and place their clients’ interests above their own, maintaining their fiduciary duties of obedience, loyalty, disclosure, confidentiality, accountability, and reasonable care.
What Are Specific Examples of Real Estate Agent Misrepresentation in Florida?
Examples of common real estate agent misrepresentations in Florida include falsely stating a property is not in a flood zone, misstating the condition of a roof, especially given Florida’s hurricane exposure, concealing known termite damage, and exaggerating property value based on false appraisals.
Florida’s climate and environmental conditions make certain misrepresentations particularly serious, such as failing to disclose previous water damage or mold issues.
Other examples where the agent may face liability under Florida law include misrepresenting property boundaries, incorrectly stating that improvements comply with local zoning laws or homeowners’ association rules, and failing to disclose known structural defects or building code violations. In Florida’s coastal areas, misrepresentations about sea walls, erosion issues, or storm protection features are particularly serious.
All of these misrepresentations can lead to serious legal consequences under Florida law, including civil lawsuits, disciplinary action by FREC (including license suspension or revocation), and potential damages under Florida’s Deceptive and Unfair Trade Practices Act (“FDUTPA”). Florida courts have consistently upheld strict penalties for agents who engage in fraudulent misrepresentation or intentional failure to disclose material facts.
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What Are the Most Common Lawsuits Against Real Estate Agents?
In Florida, common lawsuits against real estate agents include failure to disclose material defects, particularly those related to water damage, sinkholes, or structural issues common in Florida, misrepresentation of property features or values, and breach of fiduciary duty under Chapter 475, Florida Statutes.
Other frequent claims brought against Florida agents involve negligence in handling transactions, improper handling of escrow deposits, violations of fair housing laws, and fraudulent misrepresentation. Florida’s unique environmental challenges and property conditions often factor into these claims.
Additionally, Florida agents may also face liability for unauthorized practice of law when they exceed their scope beyond FREC-approved forms, engage in dishonest conduct, or violate trust account requirements under Florida Administrative Code.
All in all, most lawsuits stem from agents either failing to meet their statutory obligations under Florida law or exceeding their authorized scope of practice as defined by FREC.
How To Sue a Real Estate Agent for Misrepresentation in Florida
In order to sue a real estate agent for misrepresentation, you must first gather evidence of all false statements or undisclosed facts that warrant legal action. You should be sure to document all damages suffered, particularly those unique to Florida property issues such as hurricane damage, flood damage, or sinkhole-related problems.
Next, you must file your claim within Florida’s statute of limitations, which is four years for fraud under Florida Statute Section 95.11(3)(j) or two years for professional negligence under Section 95.11(4)(a).
Your lawsuit must prove that the agent knew about, or should have known about, the misrepresentation, that you relied on their statements when making your decision, and that you suffered quantifiable financial harm as a result.
If you’re planning to sue a real estate agent in Florida, it’s recommended to set up a legal consultation with a Florida real estate lawyer experienced in real estate litigation. They can help you establish professional negligence or intentional misrepresentation and assist you in suing a realtor for misrepresentation under Florida real estate law. They can also assist with suing under the Florida Deceptive and Unfair Trade Practices Act, or federal Fair Housing Act.
What Remedies Are Available if You Sue a Real Estate Agent?
In Florida, remedies for successful claims against real estate agents can include actual damages (i.e., monetary losses suffered), punitive damages in cases of intentional fraud or gross negligence under Florida Statute Section 768.72, and recovery of attorney’s fees and court costs when specifically authorized by statute or contract.
The court may order rescission of the contract or specific performance under Florida contract law. For licensed agents who violate professional standards, the Florida Real Estate Commission can impose penalties, including license suspension, revocation, and fines up to $5,000 per violation under Chapter 475, Florida Statutes.
In cases involving violations of the Florida Deceptive and Unfair Trade Practices Act, plaintiffs may be entitled to actual damages, declaratory judgment, and injunctive relief, plus their attorney’s fees and costs.
Do I Need an Attorney To Sue a Real Estate Agent in Florida?
If you are having issues related to the actions or inactions of a real estate agent in Florida, and you have suffered measurable harm, then it is recommended to consult with an experienced Florida real estate lawyer near you.
LegalMatch can assist you in locating Florida lawyers near you who practice real estate law and assist you in setting up an initial consultation. An experienced real estate litigation attorney will be able to properly evaluate your case, ensure compliance with legal procedures, gather necessary evidence, and navigate both civil court requirements and FREC regulations.
Although you can technically represent yourself, the technical nature of real estate law, strict procedural requirements, and the likelihood that the agent will have legal representation themselves make it highly advisable to have professional legal counsel to protect your interests and maximize your chances of success.
They can also assist you in negotiating a fair settlement for the harm you suffered or file a civil lawsuit on your behalf against the agent. Finally, they can also represent you in court, as needed.