For a Real Estate Brokerage Limited Partnership, what are the formation requirements?

• A. Must be registered with the DBPR, and at least one general partner must hold an active broker's license.
• B. Must be registered with the Secretary of State.
• C. No registration is required.
• D. Must file with the IRS.

Answer: (A)

The main idea here is regulatory oversight for a real estate brokerage entity. A Real Estate Brokerage Limited Partnership must be registered with the Florida Department of Business and Professional Regulation (DBPR), and at least one general partner must hold an active broker’s license. This ensures there is a licensed broker in charge to supervise all brokerage activities and ensure compliance with Florida real estate laws and rules.

The general partner with an active license is the person responsible for supervising real estate transactions conducted by the partnership, which aligns with how limited partnerships are structured—general partners manage the business while limited partners contribute capital and have limited involvement in management. This combination of DBPR registration and licensed supervision is what legitimizes the entity to perform real estate brokerage activities.

Filing with the Secretary of State is not the primary formation requirement for a real estate brokerage partnership, and while the IRS handles tax-related matters, it does not establish the entity’s real estate-licensing credentials. A blanket statement that no registration is required is incorrect because regulatory oversight is mandatory to engage in licensed brokerage work.