LARRY FULLER, APPELLANT,
v.
HELENE ALBERTS, FORMERLY KNOWN AS HELENE BLUMENTHAL, PACIFIC ENVIRONMENTAL PROPERTIES, INC., A CALIFORNIA CORPORATION AND TRADEWINDS ASSOCIATES LTD., D/B/A PINELLAS CASCADE MOBILE HOME PARK, A CALIFORNIA LIMITED PARTNERSHIP, APPELLEES
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In this real estate licensing case, the court held that a real estate salesman who performed broker services to procure a sale cannot sue for finder's fees in her own name, as Florida law requires compensation to be collected through her registered employer. The court reversed the trial court's judgment and remanded with directions to dismiss the complaint.
A real estate salesman cannot collect compensation or maintain an action for commission in connection with a real estate brokerage transaction except in the name of her employer and against persons registered as her employer. Since Alberts's services constituted real estate brokerage activities under Florida law, her suit in her own name was prohibited.
[1] A person who, for compensation, assists in procuring prospects that result in a sale of real estate is considered a real estate broker or salesman under Florida law.
[2] A real estate salesman cannot maintain an action for compensation in connection with a real estate brokerage transaction against any person except their registered employ…
Previewing 2 of 3 headnotes on this case. FLexlaw’s editorially structured points of law — every proposition, pinpointed — are reserved for members.
Join FLexlaw to unlock all legal intelligence“Every person who shall, in this state, for another, and for a compensation or valuable consideration directly or indirectly paid or promised . . direct or assist in the procuring of prospects . which does, or is calculated to, result in a sale . . . shall be deemed and held to be a 'real estate broker' or a 'real estate salesman'”
Establishes that Alberts's services of locating the property and introducing the buyer qualified her as a real estate salesman under statutory definition
Previewing 1 of 2 key quotes on this case — the court’s exact language, pinpointed for members.
Join FLexlaw to unlock all legal intelligenceHelene Alberts, at appellant Fuller's standing request, located a mobile home park for sale in Pinellas Park and introduced Fuller to the owner. Fulle…
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OTT, Judge.
Appellee (Helene Alberts) had a standing request from appellant to furnish him particulars as to Florida mobile home parks which were available for purchase. Pursuant to this request, appellee informed appellant of a certain mobile home park in Pinel-las Park that was for sale and put appellant in touch with the owner of the park. Subsequently the corporation with which appellant was associated purchased the park. Three days before the transaction was closed, appellant wrote apftellee a letter in which he agreed to pay her $10,000 “for services rendered in connection with feasibility studies in the State of Florida.”
Appellee filed suit alleging in her amended complaint that the letter was a bona fide promissory note for the “finder’s fee” due her. Appellant moved to dismiss the amended complaint, asserting that appellee had failed to allege that she was a licensed broker or salesman, though her actions as described therein came within the purview of Chapter 475, Florida Statutes, the Florida Real Estate License Law. The motion was denied and, following a nonjury trial, final judgment was entered for appellee.
Appellee testified that the service for which she sought compensation was a “feasibility study, which is actually putting them [appellant] in touch with the owner of the park.” She testified that she was a registered real estate salesman, employed with or under a duly licensed Miami broker, and that she was employed by the broker at the time the sale of the subject mobile home park was consummated. Appellee’s services — regardless of how characterized— were clearly that of a real estate salesman or broker under Section 475.01(2), Florida Statutes (1977). That section provides in pertinent part:
Every person who shall, in this state, for another, and for a compensation or valuable consideration directly or indirectly paid or promised . . direct or assist in the procuring of prospects . which does, or is calculated to, result in a sale . . . shall be deemed and held to be a ‘real estate broker’ or a ‘real estate salesman’ .
Since appellee operated as a real estate salesman in the subject transaction, we hold that suit in her own name to collect the “finder’s fee” is prohibited by Section 475.-42(l)(d), Florida Statutes (Supp.1978), which provides:
No salesman shall collect any money in connection with any real estate brokerage transaction, whether as a commission, deposit, payment, rental, or otherwise, except in the name of the employer, . and no real estate salesman, whether the holder of a valid current registration certificate or not, shall commence or maintain any action for a commission or compensation, in connection with a real estate brokerage transaction, against any person except a person registered as his employer at the time the cause of action is alleged to have arisen.
Accordingly, we set aside the final judgment entered below and remand with directions that appellee’s amended complaint be dismissed.
SCHEB, Acting C. J., and RYDER, J., concur.
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Marks v. M.S.F. Mgmt. Corp., 540 So. 2d 138 (Fla. 5th DCA 1989)…rating without brokers; commission agreements made by salesmen are enforceable by the broker who is their employer at the time the services entitling the salesman to compensation are rendered. § 475.42(1)(b), Fla.Stat. (1983); see Fuller v. Alberts, 382 So. 2d 113 (Fla. 2d DCA 1980); Geneva Investment, Ltd. v. Trafalgar Developers, Ltd., 274 So. 2d 581 (Fla. 3d DCA) cert. discharged, 285 So. 2d 593 (Fla.1973) (holding a real estate brokerage contract is not void ab initio where the broker is unlicensed; it is…