PEL Realty LLC; The Notice of the Petition was published in Volume 45, No. 152, of the August 6, 2019, issue of the Florida Administrative Register. Petitioner sought the Commission’s opinion on four (4) inter-related questions regarding ...
DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION
Florida Real Estate Commission
NOTICE IS HEREBY GIVEN that Florida Real Estate Commission has issued an order disposing of the petition for declaratory statement filed by PEL Realty LLC on July 22, 2019. The following is a summary of the agency's disposition of the petition:
The Notice of the Petition was published in Volume 45, No. 152, of the August 6, 2019, issue of the Florida Administrative Register. Petitioner sought the Commission’s opinion on four (4) inter-related questions regarding interpretation of Rules 61J2-5.015, 5.016 and 5.017, Florida Administrative Code, and the requirements, permissions, or prohibitions on ownership, management, licensure and/or compensation between various parties. The Board reviewed the declaratory statement at its meeting held on September 18, 2019. The Commission’s Order, filed on October 24, 2019, granted the petition for declaratory statement. Under the facts and circumstances outlined by the Petitioner in their Petition, and accepted by the Commission, the Commission answers the questions and states as follows: A. Yes. Probate Executors LLC is allowed to have an ownership interest in PEL Realty, because a non-licensed corporation or other legal entity is allowed to have an ownership interest in a licensed Florida real estate brokerage. B. Yes, in part. C. Leon McKenzie and A. Paul Shapansky are able to manage PEL Realty. The Commission is unable to answer the remainder of the question, since unlicensed individuals are not allowed to engage in activities which constitute the practice of Real Estate in Florida, and for which a license under chapter 475, F.S., is required. Without specific details of the exact activities to be performed regarding “valuations” or “identification of real estate opportunities,” the Commission is unable to determine whether such activities constitute the practice of real estate and for which a Florida Real Estate license is required. C. The Commission is unable to answer this question without additional details. D. Yes. Probate Executors, LLC is allowed to receive distributions from the earnings of PEL Realty, LLC because earnings are not commissions as defined by Florida Statute and Administrative Code.
A copy of the Commission’s Order may be obtained by contacting Lori Crawford, Executive Director, Florida Real Estate Commission, 400 West Robinson Street, #N801, Orlando, FL 32801.
