In Florida, the real estate commission is typically divided between the listing broker, selling broker and sales associates when a property is sold. The commission structure is usually based on a percentage of the final sale price of the property, commonly referred to as the seller's commission. While the specific commission rates may vary, let's assume a 5% total seller commission for the purpose of this discussion.

When a property is sold, the total commission is typically paid by the seller. The 5% seller commission is then divided between the listing broker, who represents the seller, and the selling broker, who represents the buyer. Each party receives a portion of the commission as compensation for their services and efforts throughout the transaction process. Usually, split between the two brokers 50/50, although this can vary.

In this case, out of the 5% seller commission, the listing broker would receive 2.5% (50%) of the total commission, while the selling broker would receive the remaining 2.5% (50%). The division is based on the roles and responsibilities of each party in the real estate transaction.

Brokers then each pay their sales associates (Realtor), the amount of which is contracted between the Broker and the sales associate.

It's important to note that the actual commissions and split between brokers and sales associates can vary depending on the brokerage firm, the experience and performance of the sales associate, and the specific terms outlined in their agreement.

Some Brokers charge a processing fee which can range between $200-$500. 

The above figures are outlined in the Listing Agreement, a copy of which your agent is required to give you within 24 hours of execution.

In the light of recent hurricanes in Florida, I thought it prudent to mention mold and why as a buyer or seller you might want to think about mold.

Mold growth after a hurricane is a common issue due to the increased moisture levels caused by heavy rainfall and flooding. Here are several reasons why mold is a concern after a hurricane:

Flooding: Flooding is a common result of hurricanes and can lead to water damage in homes and buildings. The combination of standing water and high humidity levels can create the perfect conditions for mold to thrive.

Leaks and Damaged Roofs: Hurricanes can cause damage to roofs, windows, and doors, allowing water to enter a building and leading to mold growth.

Power Outages: Power outages are common during hurricanes, and without proper ventilation, moisture buildup can occur, leading to mold growth.

Increased Humidity: Hurricanes bring high humidity levels, which can contribute to mold growth in homes and buildings.

Delayed Clean-Up: After a hurricane, homeowners may be focused on cleaning up debris and making emergency repairs, leaving mold remediation as a secondary priority. Additionally, here in SWFL there are many homeowners who don't live here year round and therefore may not know their home as been damaged by a recent hurricane. However, it is important to address mold as soon as possible to prevent further growth and potential health risks.

Hurricanes can lead to increased moisture levels and the ideal conditions for mold growth in homes and buildings, especially in a hot humid climate like we have in Naples Florida. It is important to address mold as soon as possible to prevent further growth and protect your health and property. If you suspect mold in your home after a hurricane, seek the assistance of a professional mold remediation company to properly address the issue.

If you decide to sell your home after discovering mold it is important to get it taken care of right away as disclosing mold in a home is an important step when buying, selling, or renting a property. There are several reasons why disclosing mold is crucial and can affect your health, wallet, and reputation.

Health Concerns: Mold is a type of fungus that can cause a range of health problems, including allergies, asthma, and respiratory issues. It is important to disclose mold in a home so that potential buyers, tenants, or residents can make informed decisions about their health and well-being.

Financial Costs: If mold is not disclosed, the cost of removing it can be substantial. The longer mold goes undetected, the more damage it can do to a home and the more expensive it becomes to remove. Disclosing mold upfront can help avoid unexpected and costly expenses.

Legal Liability: Failure to disclose mold in a home can result in legal action. In some cases, buyers or tenants may be able to sue the seller or landlord for undisclosed mold. Disclosing mold protects both the buyer and the seller from potential legal battles.

Disclosing mold in a home is a responsible and ethical act that helps protect everyone involved. It is important to take the time to assess and address any mold issues before buying, selling, or renting a property. Don't take any chances with your health or wallet, disclose mold today.

Do you know you have the choice of how you wish to be represented as a buyer, or seller, by a Florida realtor. Below are the different categories.  In Florida it is “assumed” all Realtors work as a "Transaction Agent" unless a separate written notice is given to you stating otherwise, which you will need to acknowledge. Here are the categories of all types of representation: 

• "No Brokerage” means you have no representation at all in the transaction (eg when you buy new construction). So beware of going to new communities where the sales representatives will encourage you to sign a sales contract before you have the chance to see what other homes are on the market in your price range. Representative in new construction sales centers are sales people and not necessarily "Realtors" who are bound by a Code of Ethics.  You can read our Florida Realtor Code of Ethics here.

 • "Transaction Agent” gives you limited representation as a "customer". 

• "Single Agent” fully represents you as a "client" and must look after your interests above all others, including the sellers and the Realtors themselves. You are a “client” and as such are entitled to receive “Loyalty, Obedience and Full Confidentiality” in addition to the entitlements a "customer" in a transaction broker arrangement can expect to receive. There is a fiduciary duty between the agent and the buyer with single agency.

Most real estate companies here in Naples, and surrounding areas, will not allow their agents to work as a single agent.  However, we are able work with you as a Single Agent if you request it. This is a two-way street, however. You will be asked to sign a Buyer Broker Agreement with us, where you also give your loyalty to us as your Agent.

Why should I want a Buyer’s Broker Agreement?

If you wish to be fully represented, the fiduciary duty of agent and buyer to working together is defined in the Buyers Broker Agreement, just as a Listing Agreement does with a seller when listing a home. It details the “client” services you can expect from me and my expectations of cooperation from you.  

• You can expect superior service relative to being just a “customer” as in a Transaction Agency agreement.
• Receive advice and information from us which is not possible to “customers”.
• It’s a relationship based on mutual consent & a defined time period
• You can cancel, in writing, if we fail to meet your expectations.

I can send you each one of the Agency forms for you to review, give me a call and we can talk about it.

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