Senate Bill 2362
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Florida Senate - 2000 SB 2362
By Senator Sullivan
22-1168-00
1 A bill to be entitled
2 An act relating to real estate brokers;
3 amending s. 475.25, F.S.; authorizing brokers
4 to give certain price or value opinions;
5 amending s. 475.278, F.S.; clarifying
6 provisions; exempting brokers from disclosure
7 requirements with respect to specific
8 transactions; amending s. 475.612, F.S.;
9 authorizing brokers to give certain price or
10 value opinions; providing an effective date.
11
12 Be It Enacted by the Legislature of the State of Florida:
13
14 Section 1. Paragraph (t) of subsection (1) of section
15 475.25, Florida Statutes, is amended to read:
16 475.25 Discipline.--
17 (1) The commission may deny an application for
18 licensure, registration, or permit, or renewal thereof; may
19 place a licensee, registrant, or permittee on probation; may
20 suspend a license, registration, or permit for a period not
21 exceeding 10 years; may revoke a license, registration, or
22 permit; may impose an administrative fine not to exceed $1,000
23 for each count or separate offense; and may issue a reprimand,
24 and any or all of the foregoing, if it finds that the
25 licensee, registrant, permittee, or applicant:
26 (t) Has violated any standard for the development or
27 communication of a real estate appraisal or other provision of
28 the Uniform Standards of Professional Appraisal Practice, as
29 defined in s. 475.611, as approved and adopted by the
30 Appraisal Standards Board of the Appraisal Foundation, as
31 defined in s. 475.611. This paragraph does not apply to a real
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Florida Senate - 2000 SB 2362
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1 estate broker or salesperson who, in the ordinary course of
2 business, performs a comparative market analysis, gives a
3 broker price opinion, or gives an opinion on the value of real
4 estate. However, in no event may this comparative market
5 analysis or other opinion be referred to as an appraisal, as
6 defined in s. 475.611.
7 Section 2. Paragraph (c) or subsection (2), paragraph
8 (c) of subsection (3), and subsection (5) of section 475.278,
9 Florida Statutes, are amended to read:
10 475.278 Authorized brokerage relationships; required
11 disclosures.--
12 (2) TRANSACTION BROKER RELATIONSHIP.--
13 (c) Contents of disclosure.--The required notice given
14 under paragraph (b) must include the following information in
15 the following form:
16
17 IMPORTANT NOTICE
18
19 FLORIDA LAW REQUIRES THAT REAL ESTATE LICENSEES PROVIDE THIS
20 NOTICE TO ALL POTENTIAL SELLERS AND BUYERS OF REAL ESTATE.
21
22 You should not assume that any real estate broker or
23 salesperson represents you unless you agree to engage a real
24 estate licensee in an authorized brokerage relationship,
25 either as a single agent or as a transaction broker. You are
26 advised not to disclose any information you want to be held in
27 confidence until you make a decision on representation.
28
29 TRANSACTION BROKER NOTICE
30
31
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Florida Senate - 2000 SB 2362
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1 FLORIDA LAW REQUIRES THAT REAL ESTATE LICENSEES OPERATING AS
2 TRANSACTION BROKERS DISCLOSE TO BUYERS AND SELLERS THEIR ROLE
3 AND DUTIES IN PROVIDING A LIMITED FORM OF REPRESENTATION.
4
5 As a transaction broker, ................ (insert name of Real
6 Estate Firm and its Associates), provides to you a limited
7 form of representation that includes the following duties:
8 1. Dealing honestly and fairly;
9 2. Accounting for all funds;
10 3. Using skill, care, and diligence in the
11 transaction;
12 4. Disclosing all known facts that materially affect
13 the value of residential real property and are not readily
14 observable to the buyer;
15 5. Presenting all offers and counteroffers in a timely
16 manner, unless a party has previously directed the licensee
17 otherwise in writing;
18 6. Limited confidentiality, unless waived in writing
19 by a party. This limited confidentiality will prevent
20 disclosure that the seller will accept a price less than the
21 asking or listed price, that the buyer will pay a price
22 greater than the price submitted in a written offer, of the
23 motivation of any party for selling or buying property, that a
24 seller or buyer will agree to financing terms other than those
25 offered, or of any other information requested by a party to
26 remain confidential; and
27 7. Any additional duties that are entered into by this
28 or by separate written agreement.
29
30 Limited representation means that a buyer or seller is not
31 responsible for the acts of the licensee. Additionally,
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1 parties are giving up their rights to the undivided loyalty of
2 the licensee. This aspect of limited representation allows a
3 licensee to facilitate a real estate transaction by assisting
4 both the buyer and the seller, but a licensee will not work to
5 represent one party to the detriment of the other party when
6 acting as a transaction broker to both parties.
7
8 ........ ..............................
9 Date Signature
10
11 ..............................
12 Signature
13
14 (3) SINGLE AGENT RELATIONSHIP.--
15 (c) Contents of disclosure.--
16 1. Single agent duties disclosure.--The notice
17 required under subparagraph (b)1. must include the following
18 information in the following form:
19
20 IMPORTANT NOTICE
21
22 FLORIDA LAW REQUIRES THAT REAL ESTATE LICENSEES PROVIDE THIS
23 NOTICE TO ALL POTENTIAL SELLERS AND BUYERS OF REAL ESTATE.
24
25 You should not assume that any real estate broker or
26 salesperson represents you unless you agree to engage a real
27 estate licensee in an authorized brokerage relationship,
28 either as a single agent or as a transaction broker. You are
29 advised not to disclose any information you want to be held in
30 confidence until you make a decision on representation.
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Florida Senate - 2000 SB 2362
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1 SINGLE AGENT NOTICE
2
3 FLORIDA LAW REQUIRES THAT REAL ESTATE LICENSEES OPERATING AS
4 SINGLE AGENTS DISCLOSE TO BUYERS AND SELLERS THEIR DUTIES.
5
6 As a single agent, ................ (insert name of
7 Real Estate Entity and its Associates) owe to you the
8 following duties:
9 1. Dealing honestly and fairly;
10 2. Loyalty;
11 3. Confidentiality;
12 4. Obedience;
13 5. Full disclosure;
14 6. Accounting for all funds;
15 7. Skill, care, and diligence in the transaction;
16 8. Presenting all offers and counteroffers in a timely
17 manner, unless a party has previously directed the licensee
18 otherwise in writing; and
19 9. Disclosing all known facts that materially affect
20 the value of residential real property and are not readily
21 observable.
22
23
24 ........ ..............................
25 Date Signature
26
27 2. Transition disclosure.--The notice required under
28 subparagraph (b)2. must include the following information in
29 the following form as well as the information required in
30 paragraph (2)(c):
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1 CONSENT TO TRANSITION TO
2 TRANSACTION BROKER
3
4 FLORIDA LAW ALLOWS REAL ESTATE LICENSEES WHO REPRESENT A BUYER
5 OR SELLER AS A SINGLE AGENT TO CHANGE FROM A SINGLE AGENT
6 RELATIONSHIP TO A TRANSACTION BROKERAGE RELATIONSHIP IN ORDER
7 FOR THE LICENSEE TO ASSIST BOTH PARTIES IN A REAL ESTATE
8 TRANSACTION BY PROVIDING A LIMITED FORM OF REPRESENTATION TO
9 BOTH THE BUYER AND THE SELLER. THIS CHANGE IN RELATIONSHIP
10 CANNOT OCCUR WITHOUT YOUR PRIOR WRITTEN CONSENT.
11
12 ........I agree that my agent may assume the role and duties
13 of a transaction broker. [must be initialed or signed]
14
15 (5) APPLICABILITY.--
16 (a) Residential sales.--The real estate licensee
17 disclosure requirements of this section apply to all
18 residential sales. As used in this subsection, the term
19 "residential sale" means the sale of improved residential
20 property of four units or fewer, the sale of unimproved
21 residential property intended for use of four units or fewer,
22 or the sale of agricultural property of 10 acres or fewer.
23 (b) Disclosure limitations.--The real estate licensee
24 disclosure requirements of this section do not apply to:
25 residential transactions for which there is no brokerage
26 relationship between the potential buyer or seller and the
27 licensee; transactions in which a licensee knows that the
28 potential seller or buyer is represented by a single agent or
29 a transaction broker; or transactions in which an owner is
30 selling new residential units built by the owner when the
31 circumstances or setting should reasonably inform the
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1 potential buyer that the owner's employee or single agent is
2 acting on behalf of the owner, whether because of the location
3 of the sales office, office signage, placards, or
4 identification badges worn by the owner's employee or single
5 agent; nonresidential transactions; the rental or leasing of
6 real property, unless an option to purchase all or a portion
7 of the property improved with four or fewer residential units
8 is given; auctions; appraisals; an open house or model home
9 showing that does not involve eliciting confidential
10 information; the execution of a contractual offer or an
11 agreement for representation or negotiations concerning price,
12 terms, or conditions of a potential sale; unanticipated casual
13 conversations between a licensee and a seller or buyer which
14 do not involve eliciting confidential information; responding
15 to general factual questions from a prospective buyer or
16 seller concerning properties that have been advertised for
17 sale; situations in which a licensee's communications with a
18 customer are limited to providing general factual information,
19 oral or written, concerning the qualifications, background,
20 and services of the licensee or the licensee's brokerage firm;
21 and dispositions of any interest in business enterprises or
22 business opportunities, except for property with four or fewer
23 residential units.
24 Section 3. Subsection (3) of section 475.612, Florida
25 Statutes, is amended to read:
26 475.612 Certification, licensure, or registration
27 required.--
28 (3) This section does not apply to a real estate
29 broker or salesperson who, in the ordinary course of business,
30 performs a comparative market analysis, gives a broker price
31 opinion, or and/or gives an opinion of the value of real
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Florida Senate - 2000 SB 2362
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1 estate. However, such an in no event may this opinion or
2 analysis may not be referred to as or construed to be as an
3 appraisal.
4 Section 4. This act shall take effect July 1, 2000.
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7 SENATE SUMMARY
8 Revises provisions related to real estate brokers. Allows
brokers to give broker price opinions or opinions on the
9 value of real estate. Exempts brokers from disclosure
requirements with respect to specific transactions.
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