Is practicing real estate without a license a crime in Florida?

Yes. Under Section 475.42(1)(a) of the Florida Statutes, operating as a broker or sales associate without a valid, current, and active license is a third-degree felony, punishable by up to five years in prison under the general penalty statutes. This applies to anyone who performs real estate brokerage services for compensation without the required license. It is one of the most serious violations in the license law, reflecting the consumer-protection purpose of licensing.

Does an expired license count as unlicensed?

Yes. Section 475.42(1)(a) requires a valid, current, and active license, so a person whose license is inactive, expired, or otherwise not current is treated the same as someone who never held a license. A licensee who continues to practice after letting a license lapse is committing the same third-degree felony as an unlicensed person. This is why keeping a license active and current is essential before performing any brokerage activity for compensation.

Can a sales associate be paid directly by a customer?

No. Section 475.42 provides that a sales associate may not collect any money in connection with a brokerage transaction — whether commission, deposit, payment, or rent — except in the name of the employing broker and with the broker's express consent. A sales associate works for and is compensated through the broker, not independently. Collecting money directly from a customer outside the broker relationship violates the statute and the basic structure of Florida brokerage.

Can a broker employ an unlicensed assistant?

A broker may employ unlicensed personnel only for tasks that are not licensed real estate activity, such as clerical work. A broker may not employ or continue to employ someone as a sales associate who lacks a valid current license, and may not aid, assist, procure, employ, or advise an unlicensed person to perform brokerage services. An unlicensed assistant who negotiates transactions or performs other licensed services exposes the broker to discipline and the assistant to felony liability.

What penalty applies to unlicensed practice?

Unlicensed practice under Section 475.42(1)(a) is a third-degree felony, punishable as provided in Sections 775.082 and 775.083 — generally up to five years of imprisonment and a fine. For a corporation, the penalty is as provided in Section 775.083. Beyond the criminal penalty, the Florida Real Estate Commission can seek injunctions against unlicensed activity. The felony classification is the key point: unlicensed real estate practice is a criminal offense, not merely a regulatory infraction.

What is the difference between Section 475.42 and license discipline?

Section 475.42 defines criminal violations and penalties, including the third-degree felony for unlicensed practice. License discipline under Section 475.25 governs administrative penalties — suspension, revocation, fines — that the Commission imposes on licensees for prohibited conduct. The two overlap: some acts violate both. But Section 475.42 is the criminal-enforcement provision reaching unlicensed people and enabling licensees, while Section 475.25 is the administrative-discipline provision for licensee misconduct.

Florida Unlicensed Real Estate Practice: F.S. 475.42

TL;DR

Florida treats practicing real estate without a license as a serious crime, and the rule sits in Section 475.42 of the Florida Statutes. Under Section 475.42(1)(a), a person may not operate as a broker or sales associate without holding a valid, current, and active license, and anyone who does commits a third-degree felony — punishable by up to five years in prison under the general penalty statutes. Section 475.42 goes further than just unlicensed strangers. It also prohibits a licensed sales associate from operating as a broker or working for an employer who is not a registered broker, bars a broker from employing an unlicensed sales associate, and prohibits a sales associate from collecting money in a brokerage transaction except in the name of, and with the consent of, the employing broker. A separate provision makes it a violation for anyone to commit certain acts of fraud and dishonest dealing that the license law defines elsewhere. The unifying idea is that real estate brokerage for compensation is a licensed activity, and both unlicensed people who perform it and licensees who enable them face consequences. An inactive or expired license counts as no license for this purpose, so a licensee who lets a license lapse and keeps working is committing the same felony as someone who never held one.

Why unlicensed practice is a crime

Real estate brokerage involves handling other people's largest financial transactions, so Florida requires a license to do it for compensation and backs that requirement with criminal penalties. The point is consumer protection: a licensed broker or sales associate has met education and examination requirements, is subject to the Florida Real Estate Commission's discipline, and can be held accountable through the license law. An unlicensed person operating outside that framework exposes the public to exactly the risks licensing is meant to prevent. That is why Section 475.42 makes unlicensed practice not merely a civil matter but a third-degree felony.

The statute defines the licensed activity by reference to the services listed in the license law — negotiating sales, leases, or exchanges of real property for another, for compensation. A person who performs those services for pay without a license is practicing unlawfully. The same disciplinary framework that governs licensed conduct is the broader context here, covered in our guide to license law and ethics conduct rules. Section 475.42 is the enforcement edge of that framework, the provision that turns unlicensed activity into a prosecutable offense.

The core prohibitions in Section 475.42

Section 475.42(1)(a) is the central rule: a person may not operate as a broker or sales associate without a valid and current active license, and violating it is a third-degree felony under Sections 775.082 and 775.083. The felony classification is what candidates most need to remember — unlicensed practice is not a slap on the wrist but a criminal offense carrying potential imprisonment. Critically, this applies to a licensee whose license is inactive or expired just as it applies to someone who never held one, because the statute requires a valid, current, and active license.

The section then addresses relationships between licensees and their brokers. A sales associate may not operate as a broker, or work as a sales associate for any person who is not a registered broker-employer. A broker may not employ, or keep employing, a person as a sales associate who does not hold a valid current sales-associate license. And a sales associate may not collect any money in a brokerage transaction — commission, deposit, rent, or otherwise — except in the name of the employing broker and with the broker's express consent. This last rule reflects a foundational principle of Florida brokerage: a sales associate works for and is paid through the broker, never independently. The financial protection backstop for consumers harmed by licensee misconduct connects to our guide to the real estate recovery fund.

Enabling unlicensed activity

Section 475.42 is not only about the unlicensed person; it also reaches licensees who facilitate unlicensed practice. Beyond the employment prohibitions above, the license law separately makes it a disciplinable offense for a licensee to aid, assist, procure, employ, or advise any unlicensed person or entity to practice real estate. A licensed broker who lets an unlicensed assistant negotiate deals, or who pays an unlicensed person for brokerage services, is exposed to discipline even though the broker holds a license. The statute closes the loop so that licensing cannot be circumvented by having a licensee front for unlicensed work.

Section 475.42 also prohibits related obstructive conduct: making a false affidavit or giving false testimony before the Commission, and failing to appear or produce records in response to a lawfully issued subpoena. These provisions protect the integrity of the Commission's enforcement process itself. Taken together, the section criminalizes unlicensed practice, forbids licensees from enabling it, and protects the disciplinary machinery that enforces the license law. The agency that administers licensing and discipline is covered in our guide to the FREC and DBPR licensing structure.

Frequently Asked Questions

Is practicing real estate without a license a crime in Florida?: Yes. Under Section 475.42(1)(a) of the Florida Statutes, operating as a broker or sales associate without a valid, current, and active license is a third-degree felony, punishable by up to five years in prison under the general penalty statutes. This applies to anyone who performs real estate brokerage services for compensation without the required license. It is one of the most serious violations in the license law, reflecting the consumer-protection purpose of licensing.
Does an expired license count as unlicensed?: Yes. Section 475.42(1)(a) requires a valid, current, and active license, so a person whose license is inactive, expired, or otherwise not current is treated the same as someone who never held a license. A licensee who continues to practice after letting a license lapse is committing the same third-degree felony as an unlicensed person. This is why keeping a license active and current is essential before performing any brokerage activity for compensation.
Can a sales associate be paid directly by a customer?: No. Section 475.42 provides that a sales associate may not collect any money in connection with a brokerage transaction — whether commission, deposit, payment, or rent — except in the name of the employing broker and with the broker's express consent. A sales associate works for and is compensated through the broker, not independently. Collecting money directly from a customer outside the broker relationship violates the statute and the basic structure of Florida brokerage.
Can a broker employ an unlicensed assistant?: A broker may employ unlicensed personnel only for tasks that are not licensed real estate activity, such as clerical work. A broker may not employ or continue to employ someone as a sales associate who lacks a valid current license, and may not aid, assist, procure, employ, or advise an unlicensed person to perform brokerage services. An unlicensed assistant who negotiates transactions or performs other licensed services exposes the broker to discipline and the assistant to felony liability.
What penalty applies to unlicensed practice?: Unlicensed practice under Section 475.42(1)(a) is a third-degree felony, punishable as provided in Sections 775.082 and 775.083 — generally up to five years of imprisonment and a fine. For a corporation, the penalty is as provided in Section 775.083. Beyond the criminal penalty, the Florida Real Estate Commission can seek injunctions against unlicensed activity. The felony classification is the key point: unlicensed real estate practice is a criminal offense, not merely a regulatory infraction.
What is the difference between Section 475.42 and license discipline?: Section 475.42 defines criminal violations and penalties, including the third-degree felony for unlicensed practice. License discipline under Section 475.25 governs administrative penalties — suspension, revocation, fines — that the Commission imposes on licensees for prohibited conduct. The two overlap: some acts violate both. But Section 475.42 is the criminal-enforcement provision reaching unlicensed people and enabling licensees, while Section 475.25 is the administrative-discipline provision for licensee misconduct.

Bottom Line

Section 475.42 of the Florida Statutes makes practicing real estate without a license a third-degree felony. Under Section 475.42(1)(a), operating as a broker or sales associate without a valid, current, and active license is punishable by up to five years in prison — and an inactive or expired license counts as no license. The section also bars a sales associate from operating as a broker or working for an unregistered employer, bars a broker from employing an unlicensed sales associate, and prohibits a sales associate from collecting money except in the broker's name and with the broker's consent. Licensees who aid or employ unlicensed people to perform brokerage services face discipline, and obstructing the Commission's process is separately prohibited. The through-line is that brokerage for compensation is a licensed activity, and both unlicensed practitioners and the licensees who enable them are accountable. For related topics, see our guides to license law and ethics, the recovery fund, and the FREC and DBPR structure.

Source: Florida Statutes § 475.42 (violations and penalties); §§ 775.082, 775.083 (penalties). F.S. § 475.42 (Florida Senate) · F.S. § 475.42 (FindLaw) · F.S. § 475.42 (Justia)