Which statement about an out-of-state broker who provides a referral but does not participate is true under Florida license law?

Which statement about an out-of-state broker who provides a referral but does not participate is true under Florida license law?

• A. It is always a violation of Florida license law.
• B. The Florida license law requires participation by the out-of-state broker.
• C. Violations depend on the transaction.
• D. A Florida license law was not violated.

Answer: (D)

The main idea is that Florida license law governs real estate activities performed in Florida and requires licensure for those activities. If an out-of-state broker only makes a referral and does not actually participate in the transaction within Florida, they are not performing real estate services in Florida. Because nothing real estate-related is being carried out in Florida by a licensed or unlicensed person, there’s no violation of Florida license law in this scenario. Think of it as the difference between giving information or a lead and actively handling Florida real estate duties. A referral alone, with no participation in negotiation, showing properties, or facilitating the deal in Florida, doesn’t trigger Florida licensing requirements. The law would come into play only if the out-of-state broker became involved in Florida-based real estate activities.

The main idea is that Florida license law governs real estate activities performed in Florida and requires licensure for those activities. If an out-of-state broker only makes a referral and does not actually participate in the transaction within Florida, they are not performing real estate services in Florida. Because nothing real estate-related is being carried out in Florida by a licensed or unlicensed person, there’s no violation of Florida license law in this scenario.

Think of it as the difference between giving information or a lead and actively handling Florida real estate duties. A referral alone, with no participation in negotiation, showing properties, or facilitating the deal in Florida, doesn’t trigger Florida licensing requirements. The law would come into play only if the out-of-state broker became involved in Florida-based real estate activities.