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What is a ‘Florida Compliance Commission’

March 29, 2019
By ERIC FEICHTHALER - Real Estate Law , Cape Coral Daily Breeze

Dear Mr. Feichthaler:

I plan to sell my house, and I have been researching and interviewing Realtors. I decided on the Realtor I feel will sell my house quickly and at the best price, and they have provided me a listing agreement. The time of the listing is 12 months, and the commission is 6 percent. In the middle of the contract, it also lists a $295 "Florida Compliance Commission." Is this a fee that is paid to the state? I have never heard of this before.

- Parker F.

Dear Parker:

I have the pleasure of working with many excellent Realtors through my practice, and I hope you have excellent results with the person you have chosen. The commission rate of 6 percent you reference is standard in Lee County for the sale of a home. Similarly, a 12-month listing is fairly common. Depending on the comfort level you have with the Realtor, you may want to reduce the time of the listing to six months to ensure you are not locked in for a full year with a new Realtor not performing. From the Realtor's perspective, a longer listing will give them the confidence to spend the money to properly market the property, and it will be likely they will sell the home in that time. If the time of listing is too short, this wouldn't be fair to the Realtor. Like any other contract term, the length of the listing can be negotiated.

As for the "Florida Compliance Commission," this is an additional fee some Realtors in Cape Coral charge their clients. This fee has no connection with the state of Florida or any local government 100 percent of this fee is retained by the Realtor of their broker. Historically, the 6 percent commission was the only amount charged to a seller, with the Realtor covering any type of costs like advertising, signs and showing the property. You will also want to read the entire agreement carefully, as there could be clauses that will not protect your interests.

You made a good decision to research and speak to Realtors prior to making a hiring decision. The more knowledge you have about the Realtor you hire, and their reputation in the community, the better. Good luck!

Eric P. Feichthaler has lived in Cape Coral for over 30 years and graduated from Mariner High School in Cape Coral. After completing law school at Georgetown University in Washington, D.C., he returned to Southwest Florida to practice law and raise a family. He served as mayor of Cape Coral from 2005-2008, and continues his service to the community through the Cape Coral Caring Center, Cape Coral Historical Museum, and Cape Coral Kiwanis. He has been married to his wife, Mary, for over 18 years, and they have four children together. He earned his board certification in Real Estate Law from the Florida Bar. He is AV Preeminent rated by Martindale-Hubbell for professional ethics and legal ability, and is a Supreme Court Certified Circuit Civil Mediator.

Mr. Feichthaler can be reached at eric@capecoralattorney.com, or (239) 542-4733.

This article is general in nature and not intended as legal advice to anyone. Individuals should seek legal counsel before acting on any matter of legal rights and obligations.

 
 
 

 

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