JOHN ERFMAN, APPELLANT,
v.
DEPARTMENT OF PROFESSIONAL REGULATION, APPELLEE
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A condominium manager who received commissions on rental arrangements appealed an injunction prohibiting him from receiving compensation beyond his salary. The court held that a 1987 statutory amendment requiring managers to be employed 'for a salary' eliminated the prior exemption allowing unlicensed managers to collect commissions on unit rentals.
An unlicensed condominium manager employed 'for a salary' may not receive commissions on rental arrangements beyond his salary. The 1987 amendment to section 475.011(5) that inserted 'for a salary' eliminates the prior exemption allowing unlicensed managers to collect commissions, and all persons working for a commission on real estate transactions must be licensed.
[1] A person employed as a manager of a condominium complex who arranges rentals for periods no greater than 1 year is exempt from real estate licensing requirements only if…
[2] Governmental agencies charged with licensing and regulating a profession are given deference by courts in their interpretation of relevant statutes.
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“Any person employed for a salary as a manager of a condominium or cooperative or cooperative apartment complex as a result of any activities or duties which he may have in relation to the renting of individual units within such condominium or cooperative apartment complex if rentals arranged by him are for periods no greater than 1 year”
The statute's exemption language that the court interpreted to prohibit commissions in addition to salary
Previewing 1 of 3 key quotes on this case — the court’s exact language, pinpointed for members.
Join FLexlaw to unlock all legal intelligenceErfman was a manager of a condominium project who received commissions from rental charges on individual units in addition to his manager's salary. He…
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DAUKSCH, Judge.
This is an appeal from an injunction.
Appellant is a manager of a condominium project and was engaged in the renting of individual units to various persons for which he received a commission from the rental charges. He is not a licensed real estate broker or salesman.
Appellee, the licensing agency, obtained an injunction to prohibit appellant
from receiving any compensation, other than his manager’s salary, as a result of any activities or duties he may have in relation to the renting of individual condominium units within the condominium complex he manages. Receipt of any compensation other than his salary constitutes a violation of Chapter 475, F.S.
At issue is the interpretation of section 475.011(5), Florida Statutes (1988) which allows the following exemption from the licensing requirements:
Any person employed for a salary as a manager of a condominium or cooperative or cooperative apartment complex as a result of any activities or duties which he may have in relation to the renting of individual units within such condominium or cooperative apartment complex if rentals arranged by him are for periods no greater than 1 year[.] (emphasis added)
Before the subject statute was changed in 1988 managers of condominium buildings were exempt from licensing requirements and thus could receive commissions on rentals. The 1987 amendment inserted the phrase “for a salary”; appellee interprets this language to mean that unlicensed managers can no longer collect commissions in addition to their salaries. By issuing the injunction the trial court agreed with appellee. We agree, also.
Appellee is charged by the legislature to license and regulate persons who engage in the real estate brokerage business. Governmental agencies acting by legislative mandate are given administrative authority to carry out that mandate and their interpretation of relevant statutes is given deference by the courts. PW Ventures, Inc. v. Nichols, 533 So. 2d 281 (Fla. 1988). Unless an agency interpretation appears strained or illogical the courts should recognize the superior knowledge and experience of the administrative bodies and boards in the promulgation of rules and application of statutory directions. It is not an unreasonable restriction to require all persons working for a commission on real estate transactions be licensed.
The injunction is affirmed.
AFFIRMED.
DIAMANTIS, J., concurs.
COBB, J., concurs specially with opinion.
COBB, Judge,
concurring specially.
I concur in the result reached by the majority based upon the issues and arguments presented in this case. The appellant has not challenged the constitutionality of the 1988 amendment of section 475.-011(5), Florida Statutes by Chapter 88-20, Laws of Florida. I cannot readily agree with the majority’s confident assertion that it is reasonable for the state legislature to prohibit the owner of private property from compensating his property manager (other than a licensed broker or salesman) via commission rather than salary. The reasonableness of that proscription seems dubious to me, and I would leave determination of that constitutional issue for future resolution at such time as it is directly raised and argued to us.