Lesson 07 · 13 min read
Florida Leasing Law, Commissions, and Closing the Deal
The Florida rules leasing agents must know, how to protect your commission, and the steps from signed lease to possession and follow-up.
A signed lease is not the end of a leasing deal. It is the moment your commission is at risk and the tenant needs a building that works on day one.
This lesson covers the Florida rules a leasing agent needs at a broker's level, how to protect your commission, the checklist from signed lease to keys, and what to do after move-in. It builds on The LOI and Lease Negotiation and The Listing Agreement and Addenda.
Who owns the legal questions
You are not the lawyer. Your broker of record is the licensed broker responsible for your brokerage's compliance and agreements. Legal questions go to your broker of record first, then to a Florida real estate attorney. This lesson is education, not legal advice, and the law changes, so re-check before you rely on it. Your job: spot the issue, say "that is a question for counsel," and route it before a deadline runs.
What Florida law covers, and what the lease controls
Nonresidential leases fall under F.S. chapter 83, Part I (F.S. 83.001 and following), plus contract law. Part I covers tenancy types, notice and removal. Most of what you negotiated in Lessons 5 and 6 is not in it.
| Topic | What Florida sets | Your move |
|---|---|---|
| Unsigned or unwritten lease | A tenancy at will: no fixed term, following the rent period (F.S. 83.01) | Never let a tenant move in on an LOI |
| Holdover after a written lease | A tenancy at sufferance. Accepting rent does not renew it (F.S. 83.04). A tenant who refuses to give up possession can be charged double the monthly rent (F.S. 83.06), though most leases set their own holdover rent | Calendar every expiration. Lesson 3 has the cost math |
| Nonpayment or other breach | Written 3 days' notice for unpaid rent, or 15 days to cure other breaches where the lease is silent, then a court case (F.S. 83.20). Whether weekends count is for counsel | Read the lease notice terms. Do not count days yourself |
| Getting possession back | Court action, tenant surrender or abandonment (F.S. 83.05) | No lockouts or shutoffs. Call an attorney |
| Deposits, late fees, CAM (common area maintenance) charges, guaranties | Part I has no section on them | The lease controls |
Signed writing, witnesses and recording
- Statute of frauds: the rule that some contracts must be in a signed writing to be enforced. A lease for more than one year needs one (F.S. 725.01). Whether a lease of more than one year needs two subscribing witnesses (F.S. 689.01) is a question for counsel, so have two witnesses sign anyway.
- Recording: a lease for one year or longer is effective against creditors and later purchasers without notice only if recorded (F.S. 695.01), and recording needs an acknowledgment (F.S. 695.03).
- Memorandum of lease: a short recorded summary used in place of the full lease, which keeps rent private. It is common for long terms and big build-outs, such as a 10-year industrial tenant with yard improvements. No statute we found defines it, so treat it as practice and leave it to the attorneys.
Sales tax on commercial rent is gone
Florida repealed the sales tax on commercial rent (F.S. 212.031), and the county surtax with it, for rental or occupancy periods beginning on or after October 1, 2025. Tax follows the rental period, not the payment date, so rent for periods through September 2025 stays taxable even if paid later.
- New quotes, LOIs and leases: strike sales tax lines from proposals and comparison sheets.
- Older forms with "plus applicable sales tax": flag them to counsel. Whether rent should change is a contract question, so never promise a cut.
- Old periods and tax collected in error: refer the client to their CPA.
- Still taxable under F.S. 212.03: some vehicle parking or storage and equipment items. Whether a truck or trailer yard is caught is unresolved, so tell industrial outdoor storage (IOS) clients to ask their CPA.
Older association forms may still mention the tax. See the Florida CRE Tax and Deadline Reference.
Licensing and brokerage relationships
License. Leasing for others for pay requires a license (F.S. 475.01), with an exemption for owners leasing their own property (F.S. 475.011). Unlicensed practice is a third-degree felony (F.S. 475.42), and a commission contract is invalid if licensing rules were not met (F.S. 475.41).
You are paid through your broker. An associate may not collect money in a brokerage transaction except in the employer's name (F.S. 475.42). Never take a check made out to you, and never share a commission with an unlicensed referral source (F.S. 475.25(1)(h)).
Relationships. Florida presumes a licensee is a transaction broker (limited representation) unless a single agent or no relationship is set in writing (F.S. 475.278(1)(b)). The statutory written notices do not apply to nonresidential transactions or leasing (F.S. 475.278(5)(b)). A dual agent is one licensee acting as a fiduciary for both sides, and Florida bans it (F.S. 475.278(1)(a)). We read the ban as still applying to commercial leases, though we know of no rule or decision saying so expressly, so follow it and ask your broker of record.
Designated sales associates are the one sanctioned split. Under F.S. 475.2755, a broker may designate different associates as single agents for landlord and tenant, but only if both have assets of $1 million or more and both sign the required disclosures. Put your role in writing even where no notice is required. If your brokerage lists a building your tenant client wants, tell your broker of record first.
Protecting your commission
Write it down first
We know of no Florida statute that requires a written commission agreement in every commercial leasing case. Three rules push you there anyway. The lien act needs one. F.S. 475.25(1)(r) requires a written listing agreement to state an expiration date, property, price and terms, fee and signature, with a signed copy to the principal within 24 hours, and we treat that as covering leasing listings. And agreements not performable within a year fall under F.S. 725.01. Do not test whether an oral promise is enforceable.
Commissions are not set by law. Every clause below is market practice that varies and is negotiable, so the table shows what to write down, not what to charge.
| Compensation event | What to spell out | Why it matters |
|---|---|---|
| Lease signing | Amount or formula, who pays, when due | Earned at the earlier of your named event or the owner signing a lease (F.S. 475.803) |
| Possession, opening or rent start | Define "occupancy" as delivery, opening or rent commencement | A half-and-half payment hinges on this one word |
| Free rent (abatement) | Percentage of scheduled rent or of rent actually payable | The same lease yields two different fees |
| Renewal, expansion or ROFR | Rate, and whether added space or term earns a fee. A right of first refusal (ROFR) lets a tenant match an offer on adjacent space | The next bay taken later is often forgotten |
| Tail period | The protection period after expiration when a fee is still owed on named prospects | Negotiated, from about 30 days to a year |
| Landlord pays less than agreed (tenant rep) | Whether the tenant owes any shortfall | Uncommon, so disclose up front |
Abatement matters in both asset types. An illustrative 6,000 SF flex bay at $12.00 per SF NNN abates 2 x ($72,000 / 12) = $12,000 over two free months.
The commercial leasing commission lien
The Commercial Real Estate Leasing Commission Lien Act (F.S. 475.800 to 475.813) gives a broker a recordable lien, a legal claim against property until a debt is paid. It attaches to the owner's interest: the landlord's interest if the landlord owes the fee, the tenant's leasehold if the tenant owes it. The separate sales lien act (F.S. 475.700 to 475.719) covers sales, not leases.
| Requirement | What the statute says (paraphrase) |
|---|---|
| Written agreement (F.S. 475.801) | A signed contract between the owner and the broker |
| Disclosure (F.S. 475.803(6)) | Tell the owner at or before signing that lien rights exist. Without it, no enforcement |
| Who holds it | The named broker, not an associate. Not assignable or waivable before the fee is earned |
| Recording deadline (F.S. 475.807) | Sworn notice recorded by the earlier of 90 days after the tenant takes possession or the owner's deed to a bona fide purchaser (a buyer who paid value without notice). Late is void. A copy goes to the owner within 7 days |
| Life of the lien | 2 years after recording unless suit and a lis pendens (a recorded notice of a pending suit) are filed. An owner's notice of contest gives the broker 60 days from service to sue |
A tenant-rep broker paid through the listing broker may need its own written agreement with the owner to hold a lien. That is our inference, so ask your broker of record. Recording a lien is a serious step for your broker of record and an attorney.
Disclosures and honesty
- Square footage and use: give square footage with its source and say whether anyone measured it (Lesson 2). Say a use such as a truck yard or restaurant is subject to zoning and a permit, never "it's zoned industrial, so anything goes."
- Rent: label it asking or signed, NNN or gross, concessions in or out. An NNN estimate is not "the cost."
- Known conditions: tell the client what you know about roof leaks, flooding or past industrial use. If you do not know, say "let me find out."
- Radon: put the statutory notice in the lease (F.S. 404.056(5)). By its text it covers any building, so confirm with counsel.
- Confidentiality: never tell the other side your client's ceiling, deadline or motivation.
Misrepresentation and concealment are grounds for discipline (F.S. 475.25(1)(b)), including fines up to $5,000 per count.
Closing checklist: signed lease to possession
Signing is day zero. Office deals follow the same steps.
| Step | Who leads | Industrial and retail watch-outs |
|---|---|---|
| Insurance certificates | Tenant provides, landlord checks | Industrial: forklift, yard or hazardous-use coverage. Retail: liability, glass |
| Security deposit | Tenant funds, landlord holds | Any money your brokerage holds goes to escrow through your broker of record |
| Guaranty | Guarantor, landlord's counsel | Signer name, entity and title must match |
| SNDA and estoppel | Landlord obtains, tenant signs | An SNDA (subordination, non-disturbance and attornment agreement) protects the tenant if the landlord's lender forecloses. An estoppel confirms lease terms and no defaults. See SNDA and estoppel |
| Tenant improvement (TI) allowance and permits | Per lease: who pulls permits and pays | Industrial: power upgrade, racking, dock work. Retail: signage, hood, grease interceptor. Ask the building department about timing |
| Delivery condition and punch list (open items the landlord must fix) | Landlord delivers, both walk it | Industrial: clear height, dock doors, roof. Retail: HVAC, restrooms, storefront. Date-stamp photos |
| Commencement date memo | You draft, both confirm | Template below |
| Utilities | Tenant | Industrial: start the power request early. Retail: transfer accounts |
| Signage approvals | Tenant applies, landlord approves | Subject to sign code. Retail may need a pylon panel |
| Key handoff | Landlord | Signed receipt for keys, gate remotes and alarm codes |
Use the Commercial Property Tour Checklist for the delivery walk and the Lease Abstract Checklist to pull the dates.
(a) Commencement date memo
Subject: Key dates for [Suite or Building], [Street]
[Tenant] and [Landlord], here are the dates as we read the lease. Delivery: [date]. Rent commencement: [date]. First rent step: [date]. Option notice window: [open date] to [close date]. Expiration: [date]. Please reply by [date] to confirm or correct. The lease controls.
After the deal: keep the client
| Time before expiration | Action |
|---|---|
| 24 to 18 months | Abstract the lease. Note option notice dates, rent steps and holdover terms |
| 18 to 12 months | Check the market and the tenant's growth needs, then open the renewal talk. Twelve months is the minimum runway |
| Option notice deadline | Commonly 6 to 12 months out, but the lease controls. Missing it can end the right. Remind yourself 60 days ahead |
(b) Follow-up script, 60 to 90 days after move-in
"Hi [Name], it is [Name] from MaxLife Commercial. Is everything at [Street] working the way the walk-through promised? If anything is open, I will take it to the landlord's manager this week. And if you know an owner or operator thinking about space in [county], I would value an introduction. May I check back on [date]?" Coaching note: service question first, referral request second.
A leasing client can become a sales lead. A growing industrial tenant may weigh owning (Advising the Business Owner). A strong retail operator may want its own site (Course 13). A landlord with a leased-up building may consider a sale (Course 22). Hand off to your broker, since sales work is a separate agreement, and never promise a result.
Track in your CRM: lease expiration, option notice date, next rent step, guaranty, commission status, recording deadline, renewal outreach date and referral-asked date. Setup is in Pipeline Tracking and Your First 90 Days.
Your first 90 days and common rookie mistakes
Adjust these starting suggestions with your broker of record.
| Weeks | Focus |
|---|---|
| 1 to 2 | Learn your brokerage's agreements and lien disclosure, so you can explain your commission agreement |
| 3 to 4 | Pick one industrial and one retail farm (Choosing Your Farm), and log every lease expiration |
| 5 to 8 | Tour buildings weekly. Abstract two real leases, noting each one's rent, NNN charges and concessions |
| 9 to 12 | Sign a first representation agreement in writing. Set a renewal calendar. Ask for a referral |
Common rookie mistakes:
- A handshake commission deal with no written agreement or lien disclosure
- An undefined "occupancy," so nobody knows when the second payment is due
- A missed recording deadline because possession happened quietly
- Giving a legal opinion when the question belonged to counsel
- Forgetting the client after move-in
A worked example (illustrative commission timeline, invented parties)
Assumptions, not MaxLife Commercial results: the 2,400 RSF (rentable square feet) strip-center bay from Worked example 2 in Lesson 5. It is a 5-year lease at $28.00 per SF per year NNN with 3% annual increases and 2 months of free rent. The landlord pays 5% of aggregate base rent, split 50/50 with the tenant-rep broker, half at signing and half at occupancy. The 5%, split and timing are invented and negotiable.
- Year 1: 2,400 x $28.00 = $67,200.00
- Years 2 to 5, each the prior year x 1.03: $69,216.00, $71,292.48, $73,431.25, $75,634.19
- Aggregate base rent: $356,773.92
- Commission at 5% of scheduled rent: $356,773.92 x 0.05 = $17,838.70
- Each broker: $17,838.70 / 2 = $8,919.35, paid as $4,459.68 at signing and $4,459.67 at occupancy (cent rounding)
If the agreement pays on rent actually payable and two months are free, the free rent is 2 x ($67,200 / 12) = $11,200.00. Payable rent is $356,773.92 - $11,200.00 = $345,573.92, and 5% is $17,278.70, so $8,639.35 each, the same figures Lesson 5 shows. The agreement must say which base applies.
| Date (invented) | Event | Note |
|---|---|---|
| Mon, Jan 11, 2027 | Lease signed | First installment: $4,459.68 per broker |
| Wed, Mar 3, 2027 | Tenant takes possession to build out | The 90-day recording clock starts |
| Tue, Jun 1, 2027 | 90th day | 28 days left in March, 30 in April, 31 in May, so day 90 is June 1 |
| Tue, Jun 15, 2027 | Tenant opens | Second installment due if the agreement says "at opening" |
On our reading of F.S. 475.807(1), the 90 days run from possession, not from the payment date. The second installment falls due 14 days after the recording deadline, so if it looks at risk, your broker of record must decide by June 1.
Key takeaways
- Your broker of record and a Florida attorney own legal questions, so spot the issue and route it
- Chapter 83 Part I covers tenancy, notice and removal, while deposits, late fees, CAM and guaranties are left to the lease
- Sales tax no longer applies to commercial rent for periods beginning October 1, 2025 or later
- Get a written commission agreement with the lien disclosure, define occupancy, and say whether the fee is on scheduled or payable rent
- Record any lien within 90 days after possession
- Close with a checklist and commencement memo, and start the renewal calendar 12 to 18 months out
Next: Course complete. Continue with negotiation in Course 12 and prospecting in Course 23.