Name the licensee
State who holds the active or inactive real estate license. Do not rely on a business card, email signature or assumption that everyone already knows.
Paragraph 19 · Addendum AA
A real estate license does not prevent a personal stake—but that interest must be disclosed.
Addendum AA identifies an active or inactive real estate licensee who has a personal interest in the property and explains the licensee’s relationship to the transaction.
What Addendum AA does
It replaces ambiguity with a written, transaction-specific disclosure.
A person may hold a real estate license and also buy, sell, own, inherit or otherwise have a personal interest in property. The license does not prohibit that participation—but the other parties should know about the interest.
Addendum AA identifies the licensee, states that the license is active or inactive, and provides space to describe the actual personal relationship to the property or a party.
The disclosure framework
Three facts turn a generic statement into meaningful disclosure.
The rider works best when the name, license status and personal interest are described precisely.
1 · 2 · 3Identify, disclose and describe
Explain the connection
Specify whether the licensee is the buyer, seller, owner, relative of a party or has another personal or financial interest in the property.
Six disclosure mechanics
The rider is only one sentence—but each blank matters.
Identify the person
Enter the complete name of the individual holding the real estate license.
Active or inactive
The rider applies whether the person’s real estate license is currently active or inactive.
Personal interest
Confirm that the licensee has a personal connection to the property or transaction.
Describe the role
State whether the licensee is acting as buyer, seller, owner, relative or in another capacity.
Put it in writing
Attach the completed rider and obtain the parties’ initials with the contract package.
Preserve the record
Keep the executed disclosure with the brokerage and transaction records.
License status is not brokerage capacity
A licensee can have a personal interest without acting as someone’s real estate representative.
A licensed person buying a home for themselves may be acting as the buyer, not as the other party’s broker. An inactive licensee may still possess knowledge and experience that an ordinary consumer does not.
Addendum AA discloses the personal interest. It does not, by itself, establish an agency relationship, define brokerage duties, disclose compensation or replace any separate brokerage disclosure required for the transaction.
Do not use the personal-interest rider as a substitute for explaining the actual brokerage relationship—or the absence of one.
Describe—do not merely label
“Licensee has an interest” is less useful than stating what the interest actually is.
The rider specifically invites the parties to explain whether the licensee is related to a party, acting as buyer or seller, or has another personal interest. The disclosure should be direct enough that the other party understands the conflict or connection.
Names, ownership percentages, family relationships or entity connections may require more precise language. When the relationship is complicated, the parties should obtain legal guidance rather than improvise custom legal wording.
1
State the name
“Jordan Example holds an active Florida real estate license.”
2
State the role
“Jordan Example is the Buyer purchasing the Property personally.”
3
Add the connection
Include ownership, entity or family details that make the interest understandable.
4
Obtain acknowledgment
Include the completed rider with the documents initialed by the parties.
Common personal-interest situations
The disclosure is broader than an agent purchasing their own listing.
The question is whether a licensee has a personal interest—not merely whether a commission will be earned.
Licensee is buying
An active or inactive licensee purchases the property personally or through an entity in which the licensee has an interest.
Licensee is selling
The owner holds a real estate license and is selling their own property, whether or not another brokerage handles the listing.
Licensee is connected
The licensee is related to a buyer or seller, owns part of an involved entity or otherwise expects a personal benefit.
Three concepts—not one
Personal interest, representation and compensation should not be conflated.
A transaction may involve one, two or all three. Each should be documented through the correct form and agreement.
Personal interest
Explains why a licensee has a personal connection to the property or a party in the transaction.
Brokerage and compensation
Agency or transaction-broker relationships, buyer representation, listing services and compensation arise from other disclosures and agreements.
Before the contract is finalized
Every party should understand both the interest and the licensee’s role.
Licensee checklist
- Disclose the license even if it is inactive.
- Identify yourself by complete legal name.
- Describe the personal interest accurately.
- Disclose entity ownership or family relationships when relevant.
- Clarify whether you are acting in a brokerage capacity.
- Avoid implying that you represent the other party.
- Use separate brokerage and compensation forms when required.
- Keep the executed rider with the transaction file.
Other party checklist
- Read the description of the interest—not only the title.
- Ask whether the licensee is a principal, relative or entity owner.
- Confirm who represents whom in the transaction.
- Understand that the licensee may have professional experience.
- Do not assume the licensee owes duties to both parties.
- Review compensation separately from personal interest.
- Request clarification before signing if the description is vague.
- Seek independent advice when the relationship creates concern.
A practical disclosure path
Transparency should arrive before the relationship influences consent.
License status exists
Confirm whether anyone with a personal interest holds an active or inactive license.
Connection is defined
Determine whether the person is a party, relative, owner or beneficiary.
Rider is completed
Name the licensee and describe the specific personal interest in writing.
Parties initial
Include the rider with the contract and preserve the completed record.
Frequently asked questions
Florida Addendum AA, in plain English.
Does Addendum AA apply to an inactive licensee?
Yes. The rider expressly refers to a person holding an active or inactive real estate license who has a personal interest in the property.
When is a licensee’s interest considered personal?
Examples include acting as the buyer or seller, being related to a party, owning an interested entity or otherwise having a personal or financial stake in the property.
Is saying “licensed real estate agent” enough?
The rider also calls for the nature of the personal interest to be specified. A clear description is more meaningful than a generic license statement.
Does Addendum AA create a brokerage relationship?
No. It discloses personal interest. Brokerage capacity, representation and related duties must be determined from the applicable brokerage disclosures and agreements.
Must a licensee disclose when buying their own home?
A licensee acting as the buyer is one of the situations the rider specifically identifies as an example of a personal interest to describe.
What if the licensee purchases through an LLC?
Entity ownership can still create a personal interest. The connection should be described accurately, with legal guidance when ownership or authority is complicated.
Does the rider disclose the licensee’s compensation?
Not by itself. Compensation and brokerage services are addressed through separate agreements and disclosures.
Why should an inactive license still be disclosed?
The form includes inactive licenses, recognizing that the person may retain professional knowledge or experience relevant to the other party’s informed decision.
A licensee has a stake in the transaction?
Clear disclosure protects trust before the personal interest becomes a source of conflict.
DW&Co. can help coordinate the correct contract documents, brokerage disclosures and appropriate Florida legal guidance for a licensee-interest transaction.
Talk with DW&Co. Real Estate