Broker's commission: antitrust law, commission liens, and sales associate compensation

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Who sets the fee?

Commissions are negotiable; Florida law sets no commission rate. A brokerage may independently set its pricing and negotiate with customers. Competing brokers must not agree to fix rates, divide markets, rig bids, or organize an unlawful group boycott. The Sherman Act prohibits agreements restraining interstate trade. Florida also has an antitrust act. Independent pricing is different from coordinated restraint.

Who pays the associate?

A Florida sales associate receives compensation only from the employing broker. Collecting transaction funds for the employer is different: collection must be in the employer's name and with express consent. An associate's compensation action may be brought against the person registered as employer when the services were performed, not the customer. Independent contractor status does not change this.

What secures a commission?

Florida's commercial sales commission lien reaches the owner's net proceeds, not the real estate. The commercial lien acts do not apply to ordinary residential sales. A buyer-paid broker does not acquire the owner's proceeds lien through the buyer's payment agreement.

A commercial leasing lien reaches the obligated owner's interest: the landlord's interest if the landlord owes, or the tenant's leasehold if the tenant owes. It belongs to the named broker, not the associate. Earned and payable are separate; a failed payment condition can prevent enforcement. Record a leasing lien no later than the earlier of 90 days after tenant possession or the obligated owner's recorded transfer to a bona fide purchaser for value. Deliver a copy within seven days after recording. Priority dates from recording, not the brokerage agreement. These are study distinctions, not a complete filing checklist for a live lien dispute.

Three branches separate commission issues. Rates come from independent pricing and negotiation. Associate compensation flows through the employing broker. Commercial lien security divides into an owner's net sale proceeds and the obligated owner's interest in leased commercial property. These acts do not create a residential commission lien.
Separate fee setting, associate payment, and commercial lien security.

Key terms

Sample questions

Which statement correctly describes commission rates in Florida real estate transactions?

  • They are negotiable; Florida law does not establish a commission rate.
  • They follow a minimum percentage established by the Florida Real Estate Commission.
  • They are set by the local broker association for its members.
  • They follow a statutory schedule based on the property's sale price.
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