Surety Bond Professionals is a family-owned and operated bonding agency with over 30 years of experience. With access to a broad range of surety markets, our expert agents are ready to assist with all of your Florida real estate broker bond needs. Explore the Florida real estate broker license requirements, below.
Who Needs a Florida Real Estate Broker License?
Florida’s Department of Business and Professional Regulation defines a real estate broker as:
“a person who, for another, and for compensation or in anticipation of compensation, appraises, auctions, sells, exchanges, buys, rents or offers, attempts or agrees to appraise, auction, or negotiate any sale, exchange, purchase, or rental of business enterprises or any real property or any interest in or concerning the same or who advertises the same.”
If you intend to engage in any of these activities, you’ll need to obtain a Florida real estate broker license.
What Are the Steps in the Licensing Process?
As part of the licensing process for real estate brokers in Florida, you must provide documentation proving that you have:
- The required prior experience as an active sales associate or held a valid real estate broker’s license in another state or jurisdiction
- Completed an approved 72-hour pre-license education course within the required timeframe or hold a 4-year degree or higher in real estate
- Passed the examination that must be taken by all applicants for licensure as a real estate broker
You must also pay the required application fee or obtained a fee waiver and undergo a background check and fingerprinting.
You can complete your license application online or complete a printable one and mail it in.
Many states require real estate brokers to purchase a surety bond as part of the licensing process, but Florida is not one of them. However, many real estate experts recommend that Florida brokers purchase a fidelity bond when they first become licensed and keep an active bond in place as long as they’re working as brokers.
Why is a Fidelity Bond Recommended?
States that require real estate broker bonds do so to guarantee that money and property turned over to a broker or an agent working under a broker’s supervision are accounted for truthfully. A fidelity bond serves a similar purpose by protecting a broker against employees’ dishonesty.
In the absence of a fidelity bond, if a client takes legal action against a real estate broker because of the unlawful or unethical actions of an employee, the broker would be liable for paying any damages awarded by a court.
How Are Fidelity Bond Claims Paid?
Although fidelity bonds are technically surety bonds, they function more like insurance policies. A real estate broker who has purchased a fidelity bond can file a claim against the bond and collect the funds needed to compensate a client for a loss caused by the dishonest act of an employee.
How Much Does a Fidelity Bond Cost?
Fidelity bonds are sold on a premium basis. The premium depends on a number of factors, such as the coverage amount, the number of employees covered, and the size of the deductible. In most cases, the premium is no more than 2% of the coverage amount.
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Our surety bond professionals will get you a competitive rate for the Florida fidelity bond you want for your real estate brokerage business.
