After successfully completing this topic, you will be able to
• describe the FREC rules regarding rental fee refunds, and
• state the length of time a broker has to refund the rental list fees.
Many brokers advertise rental property on their web sites, and offer printed lists of the rental properties. This is a legal function of marketing properties.
Persons who sell rental lists
• must be brokers, and
• must provide a contract or a receipt that requires the broker to refund within 30 days:
-75% of the fee if the buyer fails to find a rental property, or
-100% of the fee if the list is not current or accurate (material misrepresentation).
The buyer of the list must request a refund within 30 days of the purchase of the list.
The contract must conform to the FREC’s guidelines, and the broker must send a copy of the contract to the FREC within 30 days after first using it.
A person who violates the rental list requirements is guilty of a first-degree misdemeanor, and is subject to a fine of up to $1,000 and imprisonment up to one year. Additionally, the license of the broker many be suspended or revoked.