HB 0637 2003
   
1 CHAMBER ACTION
2         
3         
4         
5         
6          The Committee on Business Regulation recommends the following:
7         
8          Committee Substitute
9          Remove the entire bill and insert:
10 A bill to be entitled
11          An act relating to regulation of real estate
12    professionals; amending s. 475.001, F.S.; conforming
13    terminology; amending s. 475.01, F.S.; redesignating
14    "broker-salespersons" as "broker associates" and
15    "salespersons" as "sales associates"; expanding the
16    definition of "transaction broker"; amending s. 475.011,
17    F.S.; revising certain exemptions from regulation;
18    conforming terminology; amending ss. 475.02 and 475.04,
19    F.S.; conforming terminology; creating s. 475.161, F.S.;
20    providing for licensing of broker associates and sales
21    associates; amending s. 475.17, F.S.; revising
22    qualifications for practice; authorizing additional
23    subjects for postlicensure education; restricting approval
24    of distance learning courses to instances of hardship;
25    conforming terminology; amending s. 475.175, F.S.;
26    revising requirements to take the license examination;
27    revising requirements with respect to notice of completion
28    of educational requirements; amending s. 475.181, F.S.;
29    conforming terminology; amending s. 475.182, F.S.;
30    providing guidelines for approving specialty courses;
31    conforming terminology; amending s. 475.215, F.S.;
32    conforming terminology; amending s. 475.22, F.S.; revising
33    requirements with respect to brokers' signs; amending s.
34    475.23, F.S.; providing for notice of change of address;
35    conforming terminology; amending s. 475.25, F.S.; revising
36    duties of licensees with respect to escrowed property;
37    allowing a broker to place personal or brokerage funds in
38    property management and sales escrow accounts; providing
39    for investment of escrow moneys; providing penalties;
40    providing a time limit on filing complaints against a
41    licensee; requiring notice to employer of disciplinary
42    action against a licensee; providing for referral of
43    criminal violations to prosecuting authorities; conforming
44    terminology; amending s. 475.2755, F.S.; conforming
45    terminology; amending s. 475.278, F.S.; revising
46    provisions relating to authorized brokerage relationships;
47    providing a presumption of transaction brokerage; revising
48    disclosure requirements; amending s. 475.31, F.S.;
49    providing effect of revocation or suspension of a broker's
50    license; conforming terminology; amending ss. 475.37 and
51    475.41, F.S.; conforming terminology; amending s. 475.42,
52    F.S.; providing an additional ground for disciplinary
53    action relating to false or misleading information on real
54    estate located in the state; providing penalties;
55    conforming terminology; amending s. 475.43, F.S.;
56    conforming terminology; amending s. 475.451, F.S.;
57    revising prerequisites for renewal of an instructor
58    permit; removing an exemption from instructor examination
59    requirements; conforming terminology; repealing s.
60    475.4511(4), F.S., relating to the prohibition against a
61    school advertising in conjunction with an affiliated
62    broker; amending ss. 475.453 and 475.455, F.S.; conforming
63    terminology; amending s. 475.482, F.S.; increasing the
64    maximum amount that may be in the Real Estate Recovery
65    Fund; conforming terminology; amending s. 475.483, F.S.;
66    revising guidelines for payment of attorney's fees with
67    respect to recovery from the fund; conforming terminology;
68    amending ss. 475.484 and 475.5017, F.S.; increasing
69    maximum amounts payable from the fund; conforming
70    terminology; creating s. 475.505, F.S.; providing
71    requirements for temporary practice; amending s. 475.612,
72    F.S.; conforming terminology; amending s. 689.25, F.S.;
73    prescribing facts and conditions the existence of which
74    need not be disclosed in a real estate transaction;
75    repealing s. 475.421, F.S., relating to publication of
76    false or misleading information on real estate located in
77    the state; repealing s. 475.422, F.S., relating to
78    disclosure of termite and roof inspection reports;
79    amending ss. 83.49, 440.02, 443.036, 501.604, 687.14,
80    721.20, and 760.29, F.S.; conforming terminology;
81    providing an effective date.
82         
83          Be It Enacted by the Legislature of the State of Florida:
84         
85          Section 1. Section 475.001, Florida Statutes, is amended
86    to read:
87          475.001 Purpose.--The Legislature deems it necessary in
88    the interest of the public welfare to regulate real estate
89    brokers, sales associatessalespersons, and schools in this
90    state.
91          Section 2. Section 475.01, Florida Statutes, is amended to
92    read:
93          475.01 Definitions.--
94          (1) As used in this part:
95          (a) "Broker" means a person who, for another, and for a
96    compensation or valuable consideration directly or indirectly
97    paid or promised, expressly or impliedly, or with an intent to
98    collect or receive a compensation or valuable consideration
99    therefor, appraises, auctions, sells, exchanges, buys, rents, or
100    offers, attempts or agrees to appraise, auction, or negotiate
101    the sale, exchange, purchase, or rental of business enterprises
102    or business opportunities or any real property or any interest
103    in or concerning the same, including mineral rights or leases,
104    or who advertises or holds out to the public by any oral or
105    printed solicitation or representation that she or he is engaged
106    in the business of appraising, auctioning, buying, selling,
107    exchanging, leasing, or renting business enterprises or business
108    opportunities or real property of others or interests therein,
109    including mineral rights, or who takes any part in the procuring
110    of sellers, purchasers, lessors, or lessees of business
111    enterprises or business opportunities or the real property of
112    another, or leases, or interest therein, including mineral
113    rights, or who directs or assists in the procuring of prospects
114    or in the negotiation or closing of any transaction which does,
115    or is calculated to, result in a sale, exchange, or leasing
116    thereof, and who receives, expects, or is promised any
117    compensation or valuable consideration, directly or indirectly
118    therefor; and all persons who advertise rental property
119    information or lists. A broker renders a professional service
120    and is a professional within the meaning of s. 95.11(4)(a).
121    Where the term "appraise" or "appraising" appears in the
122    definition of the term "broker," it specifically excludes those
123    appraisal services which must be performed only by a state-
124    licensed or state-certified appraiser, and those appraisal
125    services which may be performed by a registered assistant
126    appraiser as defined in part II. The term "broker" also includes
127    any person who is a general partner, officer, or director of a
128    partnership or corporation which acts as a broker. The term
129    "broker" also includes any person or entity who undertakes to
130    list or sell one or more timeshare periods per year in one or
131    more timeshare plans on behalf of any number of persons, except
132    as provided in ss. 475.011 and 721.20.
133          (b) "Broker associateBroker-salesperson" means a person
134    who is qualified to be issued a license as a broker but who
135    operates as a sales associatesalespersonin the employ of
136    another.
137          (c) "Commission" means the Florida Real Estate Commission.
138          (d) "Customer" means a member of the public who is or may
139    be a buyer or seller of real property and may or may not be
140    represented by a real estate licensee in an authorized brokerage
141    relationship.
142          (e) "Department" means the Department of Business and
143    Professional Regulation.
144          (f) "Fiduciary" means a broker in a relationship of trust
145    and confidence between that broker as agent and the seller or
146    buyer as principal. The duties of the broker as a fiduciary are
147    loyalty, confidentiality, obedience, full disclosure, and
148    accounting and the duty to use skill, care, and diligence.
149          (g) "Involuntarily inactive status" means the licensure
150    status that results when a license is not renewed at the end of
151    the license period prescribed by the department.
152          (h) "Principal" means the party with whom a real estate
153    licensee has entered into a single agent relationship.
154          (i) "Real property" or "real estate" means any interest or
155    estate in land and any interest in business enterprises or
156    business opportunities, including any assignment, leasehold,
157    subleasehold, or mineral right; however, the term does not
158    include any cemetery lot or right of burial in any cemetery; nor
159    does the term include the renting of a mobile home lot or
160    recreational vehicle lot in a mobile home park or travel park.
161          (j) "Sales associateSalesperson" means a person who
162    performs any act specified in the definition of "broker," but
163    who performs such act under the direction, control, or
164    management of another person. A salesperson renders a
165    professional service and is a professional within the meaning of
166    s. 95.11(4)(a).
167          (k) "Single agent" means a broker who represents, as a
168    fiduciary, either the buyer or seller but not both in the same
169    transaction.
170          (l) "Transaction broker" means a broker who provides
171    limited representation to a buyer, a seller, or both, in a real
172    estate transaction, but does not represent either in a fiduciary
173    capacity or as a single agent. In a transaction broker
174    relationship, a buyer or seller is not responsible for the acts
175    of a licensee. Additionally, the parties to a real estate
176    transaction are giving up their rights to the undivided loyalty
177    of a licensee. This aspect of limited representation allows a
178    licensee to facilitate a real estate transaction by assisting
179    both the buyer and the seller, but a licensee will not work to
180    represent one party to the detriment of the other party when
181    acting as a transaction broker to both parties.
182          (m) "Voluntarily inactive status" means the licensure
183    status that results when a licensee has applied to the
184    department to be placed on inactive status and has paid the fee
185    prescribed by rule.
186          (2) The terms "employ," "employment," "employer," and
187    "employee," when used in this chapter and in rules adopted
188    pursuant thereto to describe the relationship between a broker
189    and a sales associatesalesperson, include an independent
190    contractor relationship when such relationship is intended by
191    and established between a broker and a sales associate
192    salesperson. The existence of such relationship shall not
193    relieve either the broker or the sales associatesalespersonof
194    her or his duties, obligations, or responsibilities under this
195    chapter.
196          (3) Wherever the word "operate" or "operating" as a
197    broker, broker associatebroker-salesperson, or sales associate
198    salespersonappears in this chapter; in any order, rule, or
199    regulation of the commission; in any pleading, indictment, or
200    information under this chapter; in any court action or
201    proceeding; or in any order or judgment of a court, it shall be
202    deemed to mean the commission of one or more acts described in
203    this chapter as constituting or defining a broker, broker
204    associatebroker-salesperson, or sales associatesalesperson,
205    not including, however, any of the exceptions stated therein. A
206    single such act is sufficient to bring a person within the
207    meaning of this chapter, and each act, if prohibited herein,
208    constitutes a separate offense.
209          (4) A broker acting as a trustee of a trust created under
210    chapter 689 is subject to the provisions of this chapter unless
211    the trustee is a bank, state or federal association, or trust
212    company possessing trust powers as defined in s. 658.12(23).
213          Section 3. Section 475.011, Florida Statutes, is amended
214    to read:
215          475.011 Exemptions.--This part does not apply to:
216          (1) Any person acting as an attorney in fact for the
217    purpose of the execution of contracts or conveyances only; as an
218    attorney at law within the scope of her or his duties as such;
219    as a certified public accountant, as defined in chapter 473,
220    within the scope of her or his duties as such; as the personal
221    representative, receiver, trustee, or master under, or by virtue
222    of, an appointment by will or by order of a court of competent
223    jurisdiction; or as trustee under a deed of trust, or under a
224    trust agreement, the ultimate purpose and intent whereof is
225    charitable, is philanthropic, or provides for those having a
226    natural right to the bounty of the donor or trustor.;
227          (2) Any individual, corporation, partnership, trust, joint
228    venture, or other entity which sells, exchanges, or leases its
229    own real property; however, this exemption shall not be
230    available if and to the extent that an agent, employee, or
231    independent contractor paid a commission or other compensation
232    strictly on a transactional basis is employed to make sales,
233    exchanges, or leases to or with customers in the ordinary course
234    of an owner's business of selling, exchanging, or leasing real
235    property to the public.;
236          (3) Any employee of a public utility, a rural electric
237    cooperative, a railroad, or a state or local governmental agency
238    who acts within the scope of her or his employment, for which no
239    compensation in addition to the employee's salary is paid, to
240    buy, sell, appraise, exchange, rent, auction, or lease any real
241    property or any interest in real property for the use of her or
242    his employer.;
243          (4) Any salaried employee of an owner, or of a registered
244    broker for an owner, of an apartment community who works in an
245    onsite rental office of the apartment community in a leasing
246    capacity, provided the employee does not receive compensation
247    based on the lease transaction.;
248          (5) Any person employed for a salary as a manager of a
249    condominium or cooperative apartment complex as a result of any
250    activities or duties which the person may have in relation to
251    the renting of individual units within such condominium or
252    cooperative apartment complex if rentals arranged by the person
253    are for periods no greater than 1 year, provided the person does
254    not receive compensation based on the rental transaction.;
255          (6) Any person, partnership, corporation, or other legal
256    entity which, for another and for compensation or other valuable
257    consideration, sells, offers to sell, advertises for sale, buys,
258    offers to buy, or negotiates the sale or purchase of radio,
259    television, or cable enterprises licensed and regulated by the
260    Federal Communications Commission pursuant to the Communications
261    Act of 1934. However, if the sale or purchase of the radio,
262    television, or cable enterprise involves the sale or lease of
263    land, buildings, fixtures, and all other improvements to the
264    land, a broker or sales associatesalespersonlicensed under
265    this chapter shall be retained for the portion of the
266    transaction which includes the land, buildings, fixtures, and
267    all other improvements to the land.; or
268          (7) Any full-time graduate student who is enrolled in a
269    commission-approved degree program in appraising at a college or
270    university in this state, if the student is acting under the
271    direct supervision of a licensed broker or a licensed or
272    certified appraiser and is engaged only in appraisal activities
273    related to the approved degree program. Any appraisal report by
274    the student must be issued in the name of the supervising
275    individual.
276          (8)(a) An owner of one or part of one or more timeshare
277    periods for the owner's own use and occupancy who later offers
278    one or more of such periods for resale.
279          (b) An exchange company, as that term is defined by s.
280    721.05(14), but only to the extent that the exchange company is
281    engaged in exchange program activities as described in and is in
282    compliance with s. 721.18.
283          (9) Any person registered, licensed, or certified by the
284    department under part II as an appraiser or assistant appraiser
285    performing appraisals in accordance with that part.
286          (10) Any person who appraises under the unit-rule method
287    of valuation a railroad or railroad terminal company assessed
288    for ad valorem tax purposes pursuant to s. 193.085.
289          (11) Any person, partnership, corporation, or other legal
290    entity which, for another and for compensation or other valuable
291    consideration, rents or advertises for rent, for transient
292    occupancy, any public lodging establishment licensed under
293    chapter 509.
294          (12) Any dealer registered under the Securities and
295    Exchange Act of 1934, as amended, or any federally insured
296    depository institution and any parent, subsidiary, or affiliate
297    thereof, in connection with the sale, exchange, purchase, or
298    rental of a business enterprise to or by a person who is an
299    accredited investor as defined by 15 U.S.C. s. 77b, the
300    Securities Act of 1933, or any regulation adopted thereunder.
301    This exemption applies whether stock or assets of the business
302    enterprise are purchased or sold. The exemption does not apply
303    to a sale, exchange, purchase, or rental of land, buildings,
304    fixtures or other improvements to the land which is not made in
305    connection with the sale, exchange, purchase, or rental of a
306    business enterprise. Any reference to rental in this subsection
307    includes a lease transaction.
308          (13) Any property management firm or any owner of an
309    apartment complex for the act of paying a finder's fee or
310    referral fee to an unlicensed person who is a tenant in such
311    apartment complex provided the value of the fee does not exceed
312    $50 per transaction. Nothing in this subsection authorizes an
313    unlicensed person to advertise or otherwise promote the person's
314    services in procuring or assisting in procuring prospective
315    lessees or tenants of apartment units. For purposes of this
316    subsection, "finder's fee" or "referral fee" means a fee paid,
317    credit towards rent, or some other thing of value provided to a
318    person for introducing or arranging an introduction between
319    parties to a transaction involving the rental or lease of an
320    apartment unit. It is a violation of s. 475.25(1)(h) and
321    punishable under s. 475.42 for a property management firm or any
322    owner of an apartment complex to pay a finder's fee or a
323    referral fee to an unlicensed person unless expressly authorized
324    by this subsection.
325          Section 4. Subsection (1) of section 475.02, Florida
326    Statutes, is amended to read:
327          475.02 Florida Real Estate Commission.--
328          (1) There is created within the department the Florida
329    Real Estate Commission. The commission shall consist of seven
330    members who shall be appointed by the Governor, subject to
331    confirmation by the Senate. Four members must be licensed
332    brokers, each of whom has held an active license for the 5 years
333    preceding appointment; one member must be a licensed broker or a
334    licensed sales associatesalespersonwho has held an active
335    license for the 2 years preceding appointment; and two members
336    must be persons who are not, and have never been, brokers or
337    sales associatessalespersons. At least one member of the
338    commission must be 60 years of age or older. The current members
339    may complete their present terms unless removed for cause.
340          Section 5. Section 475.04, Florida Statutes, is amended to
341    read:
342          475.04 Duty of commission to educate members of
343    profession.--
344          (1) The commission shall foster the education of brokers,
345    broker associatesbroker-salespersons, sales associates
346    salespersons, and instructors concerning the ethical, legal, and
347    business principles which should govern their conduct.
348          (2) For the purpose of performing its duty under
349    subsection (1) to educate persons holding a license or permit,
350    the commission may conduct, offer, sponsor, prescribe, or
351    approve real estate educational courses for all persons licensed
352    or permitted by the department as brokers, broker associates
353    broker-salespersons, sales associatessalespersons, or
354    instructors; and the cost and expense of such courses shall be
355    paid as provided in s. 475.125.
356          (3) The commission may also publish and sell, at a
357    reasonable price intended to cover costs, a handbook on this
358    chapter and other publications intended to be textbooks or
359    guidelines for study and guidance of students, applicants,
360    licensees, certificateholders, and permitholders, and members of
361    the general public, copyright of which shall be the property of
362    the state.
363          Section 6. Section 475.161, Florida Statutes, is created
364    to read:
365          475.161 Licensing of broker associates and sales
366    associates.--The commission shall license a broker associate or
367    sales associate as an individual or, upon the licensee providing
368    the commission with authorization from the Department of State,
369    as a professional corporation or limited liability company. A
370    license shall be issued in the licensee’s legal name only and,
371    when appropriate, shall include the entity designation. This
372    section shall not operate to permit a broker associate or sales
373    associate to register or be licensed as a general partner,
374    member, officer, or director of a brokerage firm under s.
375    475.15.
376          Section 7. Section 475.17, Florida Statutes, is amended to
377    read:
378          475.17 Qualifications for practice.--
379          (1)(a) An applicant for licensure who is a natural person
380    must be at least 18 years of age; hold a high school diploma or
381    its equivalent; be honest, truthful, trustworthy, and of good
382    character; and have a good reputation for fair dealing. An
383    applicant for an active broker's license or a sales associate's
384    salesperson'slicense must be competent and qualified to make
385    real estate transactions and conduct negotiations therefor with
386    safety to investors and to those with whom the applicant may
387    undertake a relationship of trust and confidence. If the
388    applicant has been denied registration or a license or has been
389    disbarred, or the applicant's registration or license to
390    practice or conduct any regulated profession, business, or
391    vocation has been revoked or suspended, by this or any other
392    state, any nation, or any possession or district of the United
393    States, or any court or lawful agency thereof, because of any
394    conduct or practices which would have warranted a like result
395    under this chapter, or if the applicant has been guilty of
396    conduct or practices in this state or elsewhere which would have
397    been grounds for revoking or suspending her or his license under
398    this chapter had the applicant then been registered, the
399    applicant shall be deemed not to be qualified unless, because of
400    lapse of time and subsequent good conduct and reputation, or
401    other reason deemed sufficient, it appears to the commission
402    that the interest of the public and investors will not likely be
403    endangered by the granting of registration. The commission may
404    adopt rules requiring an applicant for licensure to provide
405    written information to the commission regarding the applicant's
406    good character.
407          (b) An application may be disapproved if the applicant has
408    acted or attempted to act, or has held herself or himself out as
409    entitled to act, during the period of 1 year next prior to the
410    filing of the application, as a real estate broker or sales
411    associatesalespersonin the state in violation of this chapter.
412    This paragraph may be deemed to bar any person from licensure
413    who has performed any of the acts or services described in s.
414    475.01(3), unless exempt pursuant to s. 475.011, during a period
415    of 1 year next preceding the filing of the application, or
416    during the pendency of the application, and until a valid
417    current license has been duly issued to the person, regardless
418    of whether the performance of the act or service was done for
419    compensation or valuable consideration.
420          (2)(a)1. In addition to other requirements under this
421    part, the commission may require the satisfactory completion of
422    one or more of the educational courses or equivalent courses
423    conducted, offered, sponsored, prescribed, or approved pursuant
424    to s. 475.04, taken at an accredited college, university, or
425    community college, at an area technical center, or at a
426    registered real estate school, as a condition precedent for any
427    person to become licensed or to renew her or his license as a
428    broker, broker associatebroker-salesperson, or sales associate
429    salesperson. The course or courses required for one to become
430    initially licensed shall not exceed a total of 63 classroom
431    hours of 50 minutes each, inclusive of examination, for a sales
432    associatesalespersonand 72 classroom hours of 50 minutes each,
433    inclusive of examination, for a broker. The satisfactory
434    completion of an examination administered by the accredited
435    college, university, or community college, by the area technical
436    center, or by the registered real estate school shall be the
437    basis for determining satisfactory completion of the course.
438    However, notice of satisfactory completion shall not be issued
439    if the student has absences in excess of 8 classroom hours.
440          2. A distance learning course or courses shall be approved
441    by the commission as an option to classroom hours as
442    satisfactory completion of the course or courses as required by
443    this section. The schools authorized by this section have the
444    option of providing classroom courses, distance learning
445    courses, or both. However, satisfactory completion of a
446    distance learning course requires the satisfactory completion of
447    a timed distance learning course examination. Such examination
448    shall not be required to be monitored or given at a centralized
449    location.
450          3. Such required course or courses must be made available
451    by correspondence or other suitable means to any person who, by
452    reason of hardship, as defined by rule, cannot attend the place
453    or places where the course or courses are regularly conducted or
454    does not have access to the distance learning course or courses.
455          (b) A person may not be licensed as a real estate broker
456    unless, in addition to the other requirements of law, the person
457    has held:
458          1. An active real estate sales associate'ssalesperson's
459    license for at least 12 months during the preceding 5 years in
460    the office of one or more real estate brokers licensed in this
461    state or any other state, territory, or jurisdiction of the
462    United States or in any foreign national jurisdiction;
463          2. A current and valid real estate sales associate's
464    salesperson'slicense for at least 12 months during the
465    preceding 5 years in the employ of a governmental agency for a
466    salary and performing the duties authorized in this part for
467    real estate licensees; or
468          3. A current and valid real estate broker's license for at
469    least 12 months during the preceding 5 years in any other state,
470    territory, or jurisdiction of the United States or in any
471    foreign national jurisdiction.
472         
473          This paragraph does not apply to a person employed as a real
474    estate investigator by the Division of Real Estate, provided the
475    person has been employed as a real estate investigator for at
476    least 24 months. The person must be currently employed as a real
477    estate investigator to sit for the real estate broker's
478    examination and have held a valid and current sales associate's
479    salesperson'slicense for at least 12 months.
480          (c) A person who has been licensed as a real estate sales
481    associatesalespersonin Florida during the preceding 5 years
482    may not be licensed as a real estate broker unless, in addition
483    to the other requirements of law, she or he has completed the
484    sales associatesalespersonpostlicensure educational
485    requirements, if these requirements have been prescribed by the
486    commission pursuant to paragraph(3)(a).
487          (3)(a) The commission may prescribe a postlicensure
488    education requirement in order for a person to maintain a valid
489    sales associate'ssalesperson'slicense, which shall not exceed
490    45 classroom hours of 50 minutes each, inclusive of examination,
491    prior to the first renewal following initial licensure. If
492    prescribed, this shall consist of one or more commission-
493    approved courses which total at least 45 classroom hours on one
494    or more subjects which include, but are not limited to, property
495    management, appraisal, real estate finance, orthe economics of
496    real estate management, marketing, technology, sales and listing
497    of properties, business office management, courses teaching
498    practical real estate application skills, development of
499    business plans, marketing of property, and time management.
500    Required postlicensure education courses must be provided by an
501    accredited college, university, or community college, by an area
502    technical center, by a registered real estate school, or by a
503    commission-approved sponsor.
504          (b) Satisfactory completion of the postlicensure education
505    requirement is demonstrated by successfully meeting all
506    standards established for the commission-prescribed or
507    commission-approved institution or school. However, notice of
508    satisfactory completion shall not be issued if the student has
509    absences in excess of 10 percent of the required classroom hours
510    or has not satisfactorily completed a timed distance learning
511    course examination.
512          (c) The license of any sales associatesalespersonwho
513    does not complete the postlicensure education requirement prior
514    to the first renewal following initial licensure shall be
515    considered null and void. Such person wishing to again operate
516    as a real estate sales associatesalespersonmust requalify by
517    satisfactorily completing the sales associate'ssalesperson's
518    prelicensure course and passing the state examination for
519    licensure as a sales associatesalesperson.
520          (d) A sales associatesalespersonwho is required to
521    complete any postlicensure education requirement must complete
522    any postlicensure education requirement and hold a current and
523    valid licensein order to be eligible for licensure as a broker.
524          (4)(a) The commission may prescribe a postlicensure
525    education requirement in order for a person to maintain a valid
526    broker's license, which shall not exceed 60 classroom hours of
527    50 minutes each, inclusive of examination, prior to the first
528    renewal following initial licensure. If prescribed, this shall
529    consist of one or more commission-approved courses which total
530    at least 60 classroom hours on one or more subjects which
531    include, but are not limited to, advanced appraisal, advanced
532    property management, real estate marketing, business law,
533    advanced real estate investment analyses, advanced legal
534    aspects, general accounting, real estate economics,
535    syndications, commercial brokerage, feasibility analyses,
536    advanced real estate finance, residential brokerage, advanced
537    marketing, technology, advanced business planning, time
538    management,or real estate brokerage office operations. Required
539    postlicensure education courses must be provided by an
540    accredited college, university, or community college, by an area
541    technical center, by a registered real estate school, or by a
542    commission-approved sponsor.
543          (b) Satisfactory completion of the postlicensure education
544    requirement is demonstrated by successfully meeting all
545    standards established for the commission-prescribed or
546    commission-approved institution or school. However, notice of
547    satisfactory completion shall not be issued if the student has
548    absences in excess of 10 percent of the required classroom hours
549    or has not satisfactorily completed a timed distance learning
550    course examination.
551          (c) The license of any broker who does not complete the
552    postlicensure education requirement prior to the first renewal
553    following initial licensure shall be considered null and void.
554    If the licensee wishes to operate as a sales associate
555    salesperson, she or he may be issued a sales associate's
556    salesperson'slicense after providing proof that she or he has
557    satisfactorily completed the 14-hour continuing education course
558    within the 6 months following expiration of her or his broker's
559    license. To operate as a broker, the licensee must requalify by
560    satisfactorily completing the broker's prelicensure course and
561    passing the state examination for licensure as a broker.
562          (5)(a) The commission may allow an additional 6-month
563    period after the first renewal following initial licensure for
564    completing the postlicensure education courses for sales
565    associatessalespersonsand brokers who cannot, due to
566    individual physical hardship, as defined by rule, complete the
567    courses within the required time.
568          (b) Except as provided in subsection (4), sales associates
569    salespersonsand brokers are not required to meet the 14-hour
570    continuing education requirement prior to the first renewal
571    following initial licensure.
572          (c)1. A distance learning course or courses shall be
573    approved by the commission as an option to classroom hours as
574    satisfactory completion of the postlicensure education course or
575    courses as required by this section. The schools or sponsors
576    authorized by this section have the option of providing
577    classroom courses, distance learning courses, or both. However,
578    satisfactory completion of a distance learning postlicensure
579    education course or courses requires the satisfactory completion
580    of a timed distance learning course examination. Such
581    examination shall not be required to be monitored or given at a
582    centralized location.
583          2. The commission shall provide for postlicensure
584    education courses to be made available by correspondence or
585    other suitable means to any person who, by reason of hardship,
586    as defined by rule, cannot attend the place or places where
587    courses are regularly conducted or does not have access to the
588    distance learning courses.
589          (6) The postlicensure education requirements of this
590    section, and the education course requirements for one to become
591    initially licensed, do not apply to any applicant or licensee
592    who has received a 4-year degree in real estate from an
593    accredited institution of higher education.
594          (7) The commission may not approve prelicensure or
595    postlicensure distance learning courses for brokers, broker
596    associates, and sales associates by correspondence methods,
597    except in instances of hardship pursuant to subparagraphs
598    (2)(a)3. and (5)(c)2.
599          Section 8. Section 475.175, Florida Statutes, is amended
600    to read:
601          475.175 Examinations.--
602          (1) A person shall be entitled to take the license
603    examination to practice in this state if the person:
604          (a) Submits to the department the appropriate notarized or
605    electronically authenticated application and fee, two
606    photographs of herself or himself taken within the preceding
607    year,and a fingerprint card. The fingerprint card shall be
608    forwarded to the Division of Criminal Justice Information
609    Systems within the Department of Law Enforcement for purposes of
610    processing the fingerprint card to determine if the applicant
611    has a criminal history record. The fingerprint card shall also
612    be forwarded to the Federal Bureau of Investigation for purposes
613    of processing the fingerprint card to determine if the applicant
614    has a criminal history record. The information obtained by the
615    processing of the fingerprint card by the Florida Department of
616    Law Enforcement and the Federal Bureau of Investigation shall be
617    sent to the department for the purpose of determining if the
618    applicant is statutorily qualified for examination. Effective
619    July 1, 2006, an applicant shall provide fingerprints in
620    electronic format.
621          (b) Submits at the time of examination the certificate
622    specified in subsection (2), the examination admissions
623    authorization lettercard issued by the commission, and proof of
624    identification.
625          (2) Each accredited college, university, community
626    college, or registered real estate school shall notify the
627    commission of the names of all persons who have satisfactorily
628    completed the educational requirements provided for in s.
629    475.17(2), (3), and (4) in a manner prescribed by the
630    commission. Furthermore, each such educational institution
631    shall provide to each person satisfactorily completing the
632    educational requirements provided for in s. 475.17(2), (3), and
633    (4)a certificate as proof of such satisfactory completion.
634          Section 9. Subsection (1) of section 475.181, Florida
635    Statutes, is amended to read:
636          475.181 Licensure.--
637          (1) The department shall license any applicant whom the
638    commission certifies, pursuant to subsection (2), to be
639    qualified to practice as a broker or sales associate
640    salesperson.
641          Section 10. Section 475.182, Florida Statutes, is amended
642    to read:
643          475.182 Renewal of license; continuing education.--
644          (1) The department shall renew a license upon receipt of
645    the renewal application and fee. The renewal application for an
646    active license as broker, broker associatebroker-salesperson,
647    or sales associatesalespersonshall include proof satisfactory
648    to the commission that the licensee has, since the issuance or
649    renewal of her or his current license, satisfactorily completed
650    at least 14 classroom hours of 50 minutes each of a continuing
651    education course during each biennium of a license period, as
652    prescribed by the commission. Approval or denial of a specialty
653    course must be based on the extent to which the course content
654    focuses on real estate issues relevant to the modern practice of
655    real estate by a real estate licensee, including technology used
656    in the real estate industry.The commission may accept as a
657    substitute for such continuing education course, on a classroom-
658    hour-for-classroom-hour basis, any satisfactorily completed
659    education course that the commission finds is adequate to
660    educate licensees within the intent of this section, including
661    an approved distance learning course. However, the commission
662    may not require, for the purpose of satisfactorily completing an
663    approved correspondence or distance learning course, a written
664    examination that is to be taken at a centralized location and is
665    to be monitored.
666          (2) The department shall adopt rules establishing a
667    procedure for the renewal of licenses at least every 4 years.
668          (3) Any license thatwhichis not renewed at the end of
669    the license period prescribed by the department shall
670    automatically revert to involuntarily inactive status. Such
671    license may subsequently be renewed only if the licensee meets
672    the other qualifications specified in s. 475.183.
673          (4) Sixty days beforeprior tothe end of the license
674    period and automatic reversion of a license to inactive status,
675    the department shall mail a notice of renewal and possible
676    reversion to the last known address of the licensee.
677          Section 11. Section 475.215, Florida Statutes, is amended
678    to read:
679          475.215 Multiple licenses.--
680          (1) A licensed broker may be issued upon request
681    additional licenses as a broker, but not as a sales associate
682    salesperson or as a broker associatebroker-salesperson,
683    whenever it is clearly shown that the requested additional
684    licenses are necessary to the conduct of real estate brokerage
685    business and that the additional licenses will not be used in a
686    manner likely to be prejudicial to any person, including a
687    licensee under this chapter.
688          (2) A sales associatesalesperson or broker associate
689    broker-salespersonshall have no more than one registered
690    employer at any one time.
691          Section 12. Subsection (1) of section 475.22, Florida
692    Statutes, is amended to read:
693          475.22 Broker to maintain office and sign at entrance of
694    office; registered office outside state; broker required to
695    cooperate in investigation.--
696          (1) Each active broker shall maintain an office, which
697    shall consist of at least one enclosed room in a building of
698    stationary construction. Each active broker shall maintain a
699    sign on or about the entrance of her or his principal office and
700    each branch office, which sign may be easily observed and read
701    by any person about to enter such office and shall be of such
702    form and minimum dimensions as shall be prescribed by the
703    commission. Each sign must contain the name of the broker,
704    together with the trade name, if any. For a partnership or
705    corporation, the sign must contain the name of the firm or
706    corporation or trade name of the firm or corporation, together
707    with the name of at least one of the brokers. At a minimum, the
708    words "licensed real estate broker" or "lic. real estate broker"
709    must appear on the office entrance signs.
710          Section 13. Section 475.23, Florida Statutes, is amended
711    to read:
712          475.23 License to expire on change of address.-- A license
713    shall cease to be in force whenever a broker changes her or his
714    business address, a real estate school operating under a permit
715    issued pursuant to s. 475.451 changes its business address, or a
716    sales associatesalespersonworking for a broker or an
717    instructor working for a real estate school changes employer.
718    The licensee shall notify the commission of the change no later
719    than 10 days after the change, on a form provided by the
720    commission. When a broker or a real estate school changes
721    business address, the brokerage firm or school permitholder must
722    file with the commission a notice of the change of address,
723    along with the names of any sales associates or instructors who
724    are no longer employed by the brokerage or school. Such
725    notification shall also fulfill the change of address
726    notification requirements for sales associates who remain
727    employed by the brokerage and instructors who remain employed by
728    the school.
729          Section 14. Subsection (1) of section 475.25, Florida
730    Statutes, is amended, and subsections (5), (6), and (7) are
731    added to said section, to read:
732          475.25 Discipline.--
733          (1) The commission may deny an application for licensure,
734    registration, or permit, or renewal thereof; may place a
735    licensee, registrant, or permittee on probation; may suspend a
736    license, registration, or permit for a period not exceeding 10
737    years; may revoke a license, registration, or permit; may impose
738    an administrative fine not to exceed $1,000 for each count or
739    separate offense; and may issue a reprimand, and any or all of
740    the foregoing, if it finds that the licensee, registrant,
741    permittee, or applicant:
742          (a) Has violated any provision of s. 455.227(1) or s.
743    475.42. However, licensees under this part are exempt from the
744    provisions of s. 455.227(1)(i).
745          (b) Has been guilty of fraud, misrepresentation,
746    concealment, false promises, false pretenses, dishonest dealing
747    by trick, scheme, or device, culpable negligence, or breach of
748    trust in any business transaction in this state or any other
749    state, nation, or territory; has violated a duty imposed upon
750    her or him by law or by the terms of a listing contract,
751    written, oral, express, or implied, in a real estate
752    transaction; has aided, assisted, or conspired with any other
753    person engaged in any such misconduct and in furtherance
754    thereof; or has formed an intent, design, or scheme to engage in
755    any such misconduct and committed an overt act in furtherance of
756    such intent, design, or scheme. It is immaterial to the guilt
757    of the licensee that the victim or intended victim of the
758    misconduct has sustained no damage or loss; that the damage or
759    loss has been settled and paid after discovery of the
760    misconduct; or that such victim or intended victim was a
761    customer or a person in confidential relation with the licensee
762    or was an identified member of the general public.
763          (c) Has advertised property or services in a manner which
764    is fraudulent, false, deceptive, or misleading in form or
765    content. The commission may adopt rules defining methods of
766    advertising that violate this paragraph.
767          (d)1. Has failed to account or deliver to any person,
768    including a licensee under this chapter, at the time which has
769    been agreed upon or is required by law or, in the absence of a
770    fixed time, upon demand of the person entitled to such
771    accounting and delivery, any personal property such as money,
772    fund, deposit, check, draft, abstract of title, mortgage,
773    conveyance, lease, or other document or thing of value,
774    including a share of a real estate commission if a civil
775    judgment relating to the practice of the licensee's profession
776    has been obtained against the licensee and said judgment has not
777    been satisfied in accordance with the terms of the judgment
778    within a reasonable time, or any secret or illegal profit, or
779    any divisible share or portion thereof, which has come into the
780    licensee's hands and which is not the licensee's property or
781    which the licensee is not in law or equity entitled to retain
782    under the circumstances. However, if the licensee, in good
783    faith, entertains doubt as to what person is entitled to the
784    accounting and delivery of the escrowed property, or if
785    conflicting demands have been made upon the licensee for the
786    escrowed property, which property she or he still maintains in
787    her or his escrow or trust account, the licensee shall promptly
788    notify the commission of such doubts or conflicting demands and
789    shall promptly:
790          a. Request that the commission issue an escrow
791    disbursement order determining who is entitled to the escrowed
792    property;
793          b. With the consent of all parties, submit the matter to
794    arbitration;
795          c. By interpleader or otherwise, seek adjudication of the
796    matter by a court; or
797          d. With the written consent of all parties, submit the
798    matter to mediation. The department may conduct mediation or
799    may contract with public or private entities for mediation
800    services. However, the mediation process must be successfully
801    completed within 90 days following the last demand or the
802    licensee shall promptly employ one of the other escape
803    procedures contained in this section. Payment for mediation will
804    be as agreed to in writing by the parties. The department may
805    adopt rules to implement this section.
806         
807          If the licensee promptly employs one of the escape procedures
808    contained herein, and if she or heabides by the order or
809    judgment resulting therefrom, no administrative complaint may be
810    filed against the licensee for failure to account for, deliver,
811    or maintain the escrowed property. Under certain circumstances,
812    which the commission shall set forth by rule, a licensee may
813    disburse property from the licensee's escrow account without
814    notifying the commission or employing one of the procedures
815    listed in sub-subparagraphs a.-d.If the buyer of a residential
816    condominium unit delivers to a licensee written notice of the
817    buyer's intent to cancel the contract for sale and purchase, as
818    authorized by s. 718.503, or if the buyer of real property in
819    good faith fails to satisfy the terms in the financing clause of
820    a contract for sale and purchase, the licensee may return the
821    escrowed property to the purchaser without notifying the
822    commission or initiating any of the procedures listed in sub-
823    subparagraphs a.-d.
824          2. Has failed to deposit money in an escrow account when
825    the licensee is the purchaser of real estate under a contract
826    where the contract requires the purchaser to place deposit money
827    in an escrow account to be applied to the purchase price if the
828    sale is consummated.
829          (e) Has violated any of the provisions of this chapter or
830    any lawful order or rule made or issued under the provisions of
831    this chapter or chapter 455.
832          (f) Has been convicted or found guilty of, or entered a
833    plea of nolo contendere to, regardless of adjudication, a crime
834    in any jurisdiction which directly relates to the activities of
835    a licensed broker or sales associatesalesperson, or involves
836    moral turpitude or fraudulent or dishonest dealing. The record
837    of a conviction certified or authenticated in such form as to be
838    admissible in evidence under the laws of the state shall be
839    admissible as prima facie evidence of such guilt.
840          (g) Has had a broker's or sales associate'ssalesperson's
841    license revoked, suspended, or otherwise acted against, or has
842    had an application for such licensure denied, by the real estate
843    licensing agency of another state, territory, or country.
844          (h) Has shared a commission with, or paid a fee or other
845    compensation to, a person not properly licensed as a broker,
846    broker associatebroker-salesperson, or sales associate
847    salespersonunder the laws of this state, for the referral of
848    real estate business, clients, prospects, or customers, or for
849    any one or more of the services set forth in s. 475.01(1)(a).
850    For the purposes of this section, it is immaterial that the
851    person to whom such payment or compensation is given made the
852    referral or performed the service from within this state or
853    elsewhere; however, a licensed broker of this state may pay a
854    referral fee or share a real estate brokerage commission with a
855    broker licensed or registered under the laws of a foreign state
856    so long as the foreign broker does not violate any law of this
857    state.
858          (i) Has become temporarily incapacitated from acting as a
859    broker or sales associatesalespersonwith safety to investors
860    or those in a fiduciary relation with her or him because of
861    drunkenness, use of drugs, or temporary mental derangement; but
862    suspension of a license in such a case shall be only for the
863    period of such incapacity.
864          (j) Has rendered an opinion that the title to any property
865    sold is good or merchantable, except when correctly based upon a
866    current opinion of a licensed attorney at law, or has failed to
867    advise a prospective purchaser to consult her or his attorney on
868    the merchantability of the title or to obtain title insurance.
869          (k) Has failed, if a broker, to immediately place, upon
870    receipt, any money, fund, deposit, check, or draft entrusted to
871    her or him by any person dealing with her or him as a broker in
872    escrow with a title company, banking institution, credit union,
873    or savings and loan association located and doing business in
874    this state, or to deposit such funds in a trust or escrow
875    account maintained by her or him with some bank, credit union,
876    or savings and loan association located and doing business in
877    this state, wherein the funds shall be kept until disbursement
878    thereof is properly authorized; or has failed, if a sales
879    associatesalesperson, to immediately place with her or his
880    registered employer any money, fund, deposit, check, or draft
881    entrusted to her or him by any person dealing with her or him as
882    agent of the registered employer. The commission shall establish
883    rules to provide for records to be maintained by the broker and
884    the manner in which such deposits shall be made. A broker may
885    place and maintain up to $5,000 of personal or brokerage funds
886    in the broker's property management escrow account and up to
887    $1,000 of personal or brokerage funds in the broker's sales
888    escrow account. A broker shall be provided a reasonable amount
889    of time to correct escrow errors if there is no shortage of
890    funds and such errors pose no significant threat to economically
891    harm the public. It is the intent of the Legislature that, in
892    the event of legal proceedings concerning a broker's escrow
893    account, the disbursement of escrowed funds not be delayed due
894    to any dispute over the personal or brokerage funds that may be
895    present in the escrow account. With the written consent of the
896    parties, a broker may invest escrow moneys in:
897          1. Bonds, notes, or other obligations of the United States
898    or those guaranteed by the United States or for which the credit
899    of the United States is pledged for the payment of the principal
900    and interest or dividends thereof.
901          2. State bonds pledging the full faith and credit of the
902    state and revenue bonds additionally secured by the full faith
903    and credit of the state.
904          3. Savings accounts in, or certificates of deposit of, any
905    bank, savings bank, or savings and loan association incorporated
906    under the laws of this state or organized under the laws of the
907    United States doing business and situated in this state, the
908    accounts of which are insured by the Federal Government or an
909    agency thereof.
910          4. Notes, bonds, and other obligations of agencies of the
911    United States.
912          5. Commercial paper of prime quality of the highest letter
913    and numerical rating as provided for by at least one nationally
914    recognized rating service.
915          6. Mortgage securities which represent participation in or
916    are collateralized by mortgage loans secured by real property.
917    Such securities must be issued by an agency of or enterprise
918    sponsored by the United States Government, including, but not
919    limited to, the Government National Mortgage Association, the
920    Federal National Mortgage Association, and the Federal Home Loan
921    Mortgage Corporation.
922          (l) Has made or filed a report or record which the
923    licensee knows to be false, has willfully failed to file a
924    report or record required by state or federal law, has willfully
925    impeded or obstructed such filing, or has induced another person
926    to impede or obstruct such filing; but such reports or records
927    shall include only those which are signed in the capacity of a
928    licensed broker or sales associatesalesperson.
929          (m) Has obtained a license by means of fraud,
930    misrepresentation, or concealment.
931          (n) Is confined in any county jail, postadjudication; is
932    confined in any state or federal prison or mental institution;
933    is under home confinement ordered in lieu of institutional
934    confinement; or, through mental disease or deterioration, can no
935    longer safely be entrusted to competently deal with the public.
936          (o) Has been found guilty, for a second time, of any
937    misconduct that warrants her or his suspension or has been found
938    guilty of a course of conduct or practices which show that she
939    or he is so incompetent, negligent, dishonest, or untruthful
940    that the money, property, transactions, and rights of investors,
941    or those with whom she or he may sustain a confidential
942    relation, may not safely be entrusted to her or him.
943          (p) Has failed to inform the commission in writing within
944    30 days after pleading guilty or nolo contendere to, or being
945    convicted or found guilty of, any felony.
946          (q) Has violated any provision of s. 475.2755 or s.
947    475.278, including the duties owed under those sections.
948          (r) Has failed in any written listing agreement to include
949    a definite expiration date, description of the property, price
950    and terms, fee or commission, and a proper signature of the
951    principal(s); and has failed to give the principal(s) a legible,
952    signed, true and correct copy of the listing agreement within 24
953    hours of obtaining the written listing agreement. The written
954    listing agreement shall contain no provision requiring the
955    person signing the listing to notify the broker of the intention
956    to cancel the listing after such definite expiration date.
957          (s) Has had a registration suspended, revoked, or
958    otherwise acted against in any jurisdiction. The record of the
959    disciplinary action certified or authenticated in such form as
960    to be admissible in evidence under the laws of the state shall
961    be admissible as prima facie evidence of such disciplinary
962    action.
963          (t) Has violated any standard for the development or
964    communication of a real estate appraisal or other provision of
965    the Uniform Standards of Professional Appraisal Practice, as
966    defined in s. 475.611, as approved and adopted by the Appraisal
967    Standards Board of the Appraisal Foundation, as defined in s.
968    475.611. This paragraph does not apply to a real estate broker
969    or sales associatesalespersonwho, in the ordinary course of
970    business, performs a comparative market analysis, gives a broker
971    price opinion, or gives an opinion of value of real estate.
972    However, in no event may this comparative market analysis,
973    broker price opinion, or opinion of value of real estate be
974    referred to as an appraisal, as defined in s. 475.611.
975          (5) An administrative complaint against a broker or broker
976    associate must be filed within 5 years after the time of the act
977    giving rise to the complaint or within 5 years after the time
978    the act is discovered or should have been discovered with the
979    exercise of due diligence.
980          (6) The commission shall promptly notify the licensee's
981    broker or employer, as defined in this part, in writing, any
982    time the commission places a licensee on probation, reprimands a
983    licensee, suspends or revokes the license of a licensee, imposes
984    an administrative fine against a licensee, or takes any other
985    final disciplinary action against a licensee.
986          (7) The commission shall promptly report to the proper
987    prosecuting authority any criminal violation of any statute
988    relating to the practice of a real estate profession regulated
989    by the commission.
990          Section 15. Section 475.2755, Florida Statutes, is amended
991    to read:
992          475.2755 Designated sales associatesalesperson.--
993          (1) For purposes of this part, in any real estate
994    transaction other than a residential sale as defined in s.
995    475.278(5)(a), and where the buyer and seller have assets of $1
996    million or more, the broker at the request of the customers may
997    designate sales associatessalespersonsto act as single agents
998    for different customers in the same transaction. Such designated
999    sales associatessalespersonsshall have the duties of a single
1000    agent as outlined in s. 475.278(3), including disclosure
1001    requirements in s. 475.278(3)(b) and (c). In addition to
1002    disclosure requirements in s. 475.278(3)(b) and (c), the buyer
1003    and seller as customers shall both sign disclosures stating that
1004    their assets meet the threshold described in this subsection and
1005    requesting that the broker use the designated sales associate
1006    salespersonform of representation. In lieu of the transition
1007    disclosure requirement in s. 475.278(3)(c)2., the required
1008    disclosure notice shall include the following:
1009         
1010          FLORIDA LAW PROHIBITS A DESIGNATED SALES ASSOCIATESALESPERSON
1011    FROM DISCLOSING, EXCEPT TO THE BROKER OR PERSONS SPECIFIED BY
1012    THE BROKER, INFORMATION MADE CONFIDENTIAL BY REQUEST OR AT THE
1013    INSTRUCTION OF THE CUSTOMER THE DESIGNATED SALES ASSOCIATE
1014    SALESPERSONIS REPRESENTING. HOWEVER, FLORIDA LAW ALLOWS A
1015    DESIGNATED SALES ASSOCIATESALESPERSONTO DISCLOSE INFORMATION
1016    ALLOWED TO BE DISCLOSED OR REQUIRED TO BE DISCLOSED BY LAW AND
1017    ALSO ALLOWS A DESIGNATED SALES ASSOCIATESALESPERSONTO DISCLOSE
1018    TO HIS OR HER BROKER, OR PERSONS SPECIFIED BY THE BROKER,
1019    CONFIDENTIAL INFORMATION OF A CUSTOMER FOR THE PURPOSE OF
1020    SEEKING ADVICE OR ASSISTANCE FOR THE BENEFIT OF THE CUSTOMER IN
1021    REGARD TO A TRANSACTION. FLORIDA LAW REQUIRES THAT THE BROKER
1022    MUST HOLD THIS INFORMATION CONFIDENTIAL AND MAY NOT USE SUCH
1023    INFORMATION TO THE DETRIMENT OF THE OTHER PARTY.
1024          (2) For purposes of this section, the term "buyer" means a
1025    transferee or lessee in a real property transaction, and the
1026    term "seller" means the transferor or lessor in a real property
1027    transaction.
1028          Section 16. Section 475.278, Florida Statutes, is amended
1029    to read:
1030          475.278 Authorized brokerage relationships; presumption of
1031    transaction brokerage;required disclosures.--
1032          (1) BROKERAGE RELATIONSHIPS.--
1033          (a)Authorized brokerage relationships.--A real estate
1034    licensee in this state may enter into a brokerage relationship
1035    as either a single agent or as a transaction broker or as a
1036    single agentwith potential buyers and sellers. A real estate
1037    licensee may not operate as a disclosed or nondisclosed dual
1038    agent. As used in this section, the term "dual agent" means a
1039    broker who represents as a fiduciary both the prospective buyer
1040    and the prospective seller in a real estate transaction. Once a
1041    brokerage relationship is established,This part does not
1042    prevent a licensee from changing from one brokerage relationship
1043    to the other as long as the buyer or the seller, or both, gives
1044    consent as required by subparagraph (3)(c)2. before the change
1045    and the appropriate disclosure of duties as provided in this
1046    part is made to the buyer or seller. This part does not require
1047    a customer to enter into a brokerage relationship with any real
1048    estate licensee.
1049          (b) Presumption of transaction brokerage.--It shall be
1050    presumed that all licensees are operating as transaction brokers
1051    unless a single agent or no brokerage relationship is
1052    established, in writing, with a customer.
1053          (2) TRANSACTION BROKER RELATIONSHIP.--
1054          (a) Transaction broker-duties of limited
1055    representation.--A transaction broker provides a limited form of
1056    representation to a buyer, a seller, or both in a real estate
1057    transaction but does not represent either in a fiduciary
1058    capacity or as a single agent. The duties of the real estate
1059    licensee in this limited form of representation include the
1060    following:
1061          1. Dealing honestly and fairly;
1062          2. Accounting for all funds;
1063          3. Using skill, care, and diligence in the transaction;
1064          4. Disclosing all known facts that materially affect the
1065    value of residential real property and are not readily
1066    observable to the buyer;
1067          5. Presenting all offers and counteroffers in a timely
1068    manner, unless a party has previously directed the licensee
1069    otherwise in writing;
1070          6. Limited confidentiality, unless waived in writing by a
1071    party. This limited confidentiality will prevent disclosure that
1072    the seller will accept a price less than the asking or listed
1073    price, that the buyer will pay a price greater than the price
1074    submitted in a written offer, of the motivation of any party for
1075    selling or buying property, that a seller or buyer will agree to
1076    financing terms other than those offered, or of any other
1077    information requested by a party to remain confidential; and
1078          7. Any additional duties that are mutually agreed to with
1079    a party.
1080          (b) Disclosure requirements.--Duties of a transaction
1081    broker must be fully described and disclosed in writing to a
1082    buyer or seller either as a separate and distinct disclosure
1083    document or included as part of another document such as a
1084    listing agreement or agreement for representation. The
1085    disclosure must be made before, or at the time of, entering into
1086    a listing agreement or an agreement for representation or before
1087    the showing of property, whichever occurs first. When
1088    incorporated into other documents, the required notice must be
1089    of the same size type, or larger, as other provisions of the
1090    document and must be conspicuous in its placement so as to
1091    advise customers of the duties of limited representation, except
1092    that the first sentence of the information identified in
1093    paragraph (c) must be printed in uppercase and bold type. This
1094    paragraph expires July 1, 2008.
1095          (c) Contents of disclosure.--The required notice given
1096    under paragraph (b) must include the following information in
1097    the following form:
1098         
1099 IMPORTANT NOTICE
1100         
1101          FLORIDA LAW REQUIRES THAT REAL ESTATE LICENSEES PROVIDE THIS
1102    NOTICE TO POTENTIAL SELLERS AND BUYERS OF REAL ESTATE.
1103         
1104          You should not assume that any real estate broker or salesperson
1105    represents you unless you agree to engage a real estate licensee
1106    in an authorized brokerage relationship, either as a single
1107    agent or as a transaction broker. You are advised not to
1108    disclose any information you want to be held in confidence until
1109    you make a decision on representation.
1110         
1111 TRANSACTION BROKER NOTICE
1112         
1113          FLORIDA LAW REQUIRES THAT REAL ESTATE LICENSEES OPERATING AS
1114    TRANSACTION BROKERS DISCLOSE TO BUYERS AND SELLERS THEIR ROLE
1115    AND DUTIES IN PROVIDING A LIMITED FORM OF REPRESENTATION.
1116         
1117          As a transaction broker, ____________________ (insert name of
1118    Real Estate Firm and its Associates), provides to you a limited
1119    form of representation that includes the following duties:
1120          1. Dealing honestly and fairly;
1121          2. Accounting for all funds;
1122          3. Using skill, care, and diligence in the transaction;
1123          4. Disclosing all known facts that materially affect the
1124    value of residential real property and are not readily
1125    observable to the buyer;
1126          5. Presenting all offers and counteroffers in a timely
1127    manner, unless a party has previously directed the licensee
1128    otherwise in writing;
1129          6. Limited confidentiality, unless waived in writing by a
1130    party. This limited confidentiality will prevent disclosure that
1131    the seller will accept a price less than the asking or listed
1132    price, that the buyer will pay a price greater than the price
1133    submitted in a written offer, of the motivation of any party for
1134    selling or buying property, that a seller or buyer will agree to
1135    financing terms other than those offered, or of any other
1136    information requested by a party to remain confidential; and
1137          7. Any additional duties that are entered into by this or
1138    by separate written agreement.
1139         
1140          Limited representation means that a buyer or seller is not
1141    responsible for the acts of the licensee. Additionally, parties
1142    are giving up their rights to the undivided loyalty of the
1143    licensee. This aspect of limited representation allows a
1144    licensee to facilitate a real estate transaction by assisting
1145    both the buyer and the seller, but a licensee will not work to
1146    represent one party to the detriment of the other party when
1147    acting as a transaction broker to both parties.
1148          @_@0@_@
1149          This paragraph expires July 1, 2008.
1150          (3) SINGLE AGENT RELATIONSHIP.--
1151          (a) Single agent-duties.--The duties of a real estate
1152    licensee owed to a buyer or seller who engages the real estate
1153    licensee as a single agent include the following:
1154          1. Dealing honestly and fairly;
1155          2. Loyalty;
1156          3. Confidentiality;
1157          4. Obedience;
1158          5. Full disclosure;
1159          6. Accounting for all funds;
1160          7. Skill, care, and diligence in the transaction;
1161          8. Presenting all offers and counteroffers in a timely
1162    manner, unless a party has previously directed the licensee
1163    otherwise in writing; and
1164          9. Disclosing all known facts that materially affect the
1165    value of residential real property and are not readily
1166    observable.
1167          (b) Disclosure requirements.--
1168          1. Single agent disclosure.--Duties of a single agent must
1169    be fully described and disclosed in writing to a buyer or seller
1170    either as a separate and distinct disclosure document or
1171    included as part of another document such as a listing agreement
1172    or other agreement for representation. The disclosure must be
1173    made before, or at the time of, entering into a listing
1174    agreement or an agreement for representation or before the
1175    showing of property, whichever occurs first. When incorporated
1176    into other documents, the required notice must be of the same
1177    size type, or larger, as other provisions of the document and
1178    must be conspicuous in its placement so as to advise customers
1179    of the duties of a single agent, except that the first sentence
1180    of the information identified in paragraph (c) must be printed
1181    in uppercase and bold type.
1182          2. Transition to transaction broker disclosure.--A single
1183    agent relationship may be changed to a transaction broker
1184    relationship at any time during the relationship between an
1185    agent and principal, provided the agent first obtains the
1186    principal's written consent to thegives the disclosure required
1187    under paragraph (2)(b) and the principal gives to the agent
1188    consent as required under subparagraph (c)2. before achange in
1189    relationship. This disclosure must be in writing to the
1190    principal either as a separate and distinct document or included
1191    as part of other documents such as a listing agreement or other
1192    agreements for representation. When incorporated into other
1193    documents, the required notice must be of the same size type, or
1194    larger, as other provisions of the document and must be
1195    conspicuous in its placement so as to advise customers of the
1196    duties of limited representation, except that the first sentence
1197    of the information identified in subparagraph (c)2. must be
1198    printed in uppercase and bold type.
1199          (c) Contents of disclosure.--
1200          1. Single agent duties disclosure.--The notice required
1201    under subparagraph (b)1. must include the following information
1202    in the following form:
1203         
1204 IMPORTANT NOTICE
1205         
1206          FLORIDA LAW REQUIRES THAT REAL ESTATE LICENSEES PROVIDE THIS
1207    NOTICE TO POTENTIAL SELLERS AND BUYERS OF REAL ESTATE.
1208         
1209          You should not assume that any real estate broker or salesperson
1210    represents you unless you agree to engage a real estate licensee
1211    in an authorized brokerage relationship, either as a single
1212    agent or as a transaction broker. You are advised not to
1213    disclose any information you want to be held in confidence until
1214    you make a decision on representation.
1215         
1216 SINGLE AGENT NOTICE
1217         
1218          FLORIDA LAW REQUIRES THAT REAL ESTATE LICENSEES OPERATING AS
1219    SINGLE AGENTS DISCLOSE TO BUYERS AND SELLERS THEIR DUTIES.
1220         
1221          As a single agent, ____________________ (insert name of
1222    Real Estate Entity and its Associates) owe to you the following
1223    duties:
1224          1. Dealing honestly and fairly;
1225          2. Loyalty;
1226          3. Confidentiality;
1227          4. Obedience;
1228          5. Full disclosure;
1229          6. Accounting for all funds;
1230          7. Skill, care, and diligence in the transaction;
1231          8. Presenting all offers and counteroffers in a timely
1232    manner, unless a party has previously directed the licensee
1233    otherwise in writing; and
1234          9. Disclosing all known facts that materially affect the
1235    value of residential real property and are not readily
1236    observable.
1237         
__________Date______________________________ Signature
1238          2. Transition disclosure.--To gain the principal's written
1239    consent to a change in relationship, a licensee must use the
1240    following disclosureThe notice required under subparagraph
1241    (b)2. must include the following information in the following
1242    form as well as the information required in paragraph (2)(c):
1243         
1244 CONSENT TO TRANSITION TO
1245 TRANSACTION BROKER
1246         
1247          FLORIDA LAW ALLOWS REAL ESTATE LICENSEES WHO REPRESENT A BUYER
1248    OR SELLER AS A SINGLE AGENT TO CHANGE FROM A SINGLE AGENT
1249    RELATIONSHIP TO A TRANSACTION BROKERAGE RELATIONSHIP IN ORDER
1250    FOR THE LICENSEE TO ASSIST BOTH PARTIES IN A REAL ESTATE
1251    TRANSACTION BY PROVIDING A LIMITED FORM OF REPRESENTATION TO
1252    BOTH THE BUYER AND THE SELLER. THIS CHANGE IN RELATIONSHIP
1253    CANNOT OCCUR WITHOUT YOUR PRIOR WRITTEN CONSENT.
1254         
1255          As a transaction broker, ____________________ (insert name of
1256    Real Estate Firm and its Associates), provides to you a limited
1257    form of representation that includes the following duties:
1258          1. Dealing honestly and fairly;
1259          2. Accounting for all funds;
1260          3. Using skill, care, and diligence in the transaction;
1261          4. Disclosing all known facts that materially affect the
1262    value of residential real property and are not readily
1263    observable to the buyer;
1264          5. Presenting all offers and counteroffers in a timely
1265    manner, unless a party has previously directed the licensee
1266    otherwise in writing;
1267          6. Limited confidentiality, unless waived in writing by a
1268    party. This limited confidentiality will prevent disclosure that
1269    the seller will accept a price less than the asking or listed
1270    price, that the buyer will pay a price greater than the price
1271    submitted in a written offer, of the motivation of any party for
1272    selling or buying property, that a seller or buyer will agree to
1273    financing terms other than those offered, or of any other
1274    information requested by a party to remain confidential; and
1275          7. Any additional duties that are entered into by this or
1276    by separate written agreement.
1277         
1278          Limited representation means that a buyer or seller is not
1279    responsible for the acts of the licensee. Additionally, parties
1280    are giving up their rights to the undivided loyalty of the
1281    licensee. This aspect of limited representation allows a
1282    licensee to facilitate a real estate transaction by assisting
1283    both the buyer and the seller, but a licensee will not work to
1284    represent one party to the detriment of the other party when
1285    acting as a transaction broker to both parties.
1286         
1287          __________I agree that my agent may assume the role and duties
1288    of a transaction broker. [must be initialed or signed]
1289         
1290          (4) NO BROKERAGE RELATIONSHIP.--
1291          (a) No brokerage relationship-duties.--A real estate
1292    licensee owes to a potential seller or buyer with whom the
1293    licensee has no brokerage relationship the following duties:
1294          1. Dealing honestly and fairly;
1295          2. Disclosing all known facts that materially affect the
1296    value of the residential real property which are not readily
1297    observable to the buyer; and
1298          3. Accounting for all funds entrusted to the licensee.
1299          (b) Disclosure requirements.--Duties of a licensee who has
1300    no brokerage relationship with a buyer or seller must be fully
1301    described and disclosed in writing to the buyer or seller. The
1302    disclosure must be made before the showing of property. When
1303    incorporated into other documents, the required notice must be
1304    of the same size type, or larger, as other provisions of the
1305    document and must be conspicuous in its placement so as to
1306    advise customers of the duties of a licensee that has no
1307    brokerage relationship with a buyer or seller, except that the
1308    first sentence of the information identified in paragraph (c)
1309    must be printed in uppercase bold type.
1310          (c) Contents of disclosure.--The notice required under
1311    paragraph (b) must include the following information in the
1312    following form:
1313         
1314 IMPORTANT NOTICE
1315         
1316          FLORIDA LAW REQUIRES THAT REAL ESTATE LICENSEES PROVIDE THIS
1317    NOTICE TO POTENTIAL SELLERS AND BUYERS OF REAL ESTATE.
1318         
1319          You should not assume that any real estate broker or salesperson
1320    represents you unless you agree to engage a real estate licensee
1321    in an authorized brokerage relationship, either as a single
1322    agent or as a transaction broker. You are advised not to
1323    disclose any information you want to be held in confidence until
1324    you decide on representation.
1325         
1326 NO BROKERAGE RELATIONSHIP NOTICE
1327         
1328          FLORIDA LAW REQUIRES THAT REAL ESTATE LICENSEES WHO HAVE NO
1329    BROKERAGE RELATIONSHIP WITH A POTENTIAL SELLER OR BUYER DISCLOSE
1330    THEIR DUTIES TO SELLERS AND BUYERS.
1331         
1332          As a real estate licensee who has no brokerage relationship
1333    with you, __________(insert name of Real Estate Entity and its
1334    Associates)_____ owe to you the following duties:
1335         
1336          1. Dealing honestly and fairly;
1337          2. Disclosing all known facts that materially affect the
1338    value of residential real property which are not readily
1339    observable to the buyer.
1340          3. Accounting for all funds entrusted to the licensee.
1341         
1342          ... (Date) ...... (Signature) ...
1343          (5) APPLICABILITY.--
1344          (a) Residential sales.--The real estate licensee
1345    disclosure requirements of this section apply to all residential
1346    sales. As used in this subsection, the term "residential sale"
1347    means the sale of improved residential property of four units or
1348    fewer, the sale of unimproved residential property intended for
1349    use of four units or fewer, or the sale of agricultural property
1350    of 10 acres or fewer.
1351          (b) Disclosure limitations.--
1352          1. The real estate disclosure requirements of this section
1353    do not apply when a licensee knows that the potential seller or
1354    buyer is represented by a single agent or a transaction broker;
1355    or when an owner is selling new residential units built by the
1356    owner and the circumstances or setting should reasonably inform
1357    the potential buyer that the owner's employee or single agent is
1358    acting on behalf of the owner, whether because of the location
1359    of the sales office or because of office signage or placards or
1360    identification badges worn by the owner's employee or single
1361    agent.
1362          2. The real estate licensee disclosure requirements of
1363    this section do not apply to: nonresidential transactions; the
1364    rental or leasing of real property, unless an option to purchase
1365    all or a portion of the property improved with four or fewer
1366    residential units is given; a bona fide "open house" or model
1367    home showing that does not involve eliciting confidential
1368    information, the execution of a contractual offer or an
1369    agreement for representation, or negotiations concerning price,
1370    terms, or conditions of a potential sale; unanticipated casual
1371    conversations between a licensee and a seller or buyer which do
1372    not involve eliciting confidential information, the execution of
1373    a contractual offer or agreement for representation, or
1374    negotiations concerning price, terms, or conditions of a
1375    potential sale; responding to general factual questions from a
1376    potential buyer or seller concerning properties that have been
1377    advertised for sale; situations in which a licensee's
1378    communications with a potential buyer or seller are limited to
1379    providing general factual information, oral or written, about
1380    the qualifications, background, and services of the licensee or
1381    the licensee's brokerage firm; auctions; appraisals; and
1382    dispositions of any interest in business enterprises or business
1383    opportunities, except for property with four or fewer
1384    residential units.
1385          Section 17. Subsection (1) of section 475.31, Florida
1386    Statutes, is amended to read:
1387          475.31 Final orders.--
1388          (1) An order revoking or suspending the license of a
1389    broker shall automatically causecancel the licenses of all
1390    sales associates and broker associatessalespersonsregistered
1391    with the broker, and, if a partnership or corporation, of all
1392    members, officers, and directors thereof to become involuntarily
1393    inactive, while the license of the broker is inoperative or
1394    until new employment or connection is secured.
1395          Section 18. Section 475.37, Florida Statutes, is amended
1396    to read:
1397          475.37 Effect of reversal of order of court or
1398    commission.--If the order of the court or commission denying a
1399    license or taking any disciplinary action against a licensee is
1400    finally reversed and set aside, the defendant shall be restored
1401    to her or his rights and privileges as a broker or sales
1402    associatesalespersonas of the date of filing the mandate or a
1403    copy thereof with the commission. The matters and things alleged
1404    in the information shall not thereafter be reexamined in any
1405    other proceeding concerning the licensure of the defendant. If
1406    the inquiry concerned was in reference to an application for
1407    licensure, the application shall stand approved, and such
1408    application shall be remanded for further proceedings according
1409    to law.
1410          Section 19. Section 475.41, Florida Statutes, is amended
1411    to read:
1412          475.41 Contracts of unlicensed person for commissions
1413    invalid.--No contract for a commission or compensation for any
1414    act or service enumerated in s. 475.01(3) is valid unless the
1415    broker or sales associatesalespersonhas complied with this
1416    chapter in regard to issuance and renewal of the license at the
1417    time the act or service was performed.
1418          Section 20. Subsection (1) of section 475.42, Florida
1419    Statutes, is amended to read:
1420          475.42 Violations and penalties.--
1421          (1) VIOLATIONS.--
1422          (a) ANo person may notshall operate as a broker or sales
1423    associatesalespersonwithout being the holder of a valid and
1424    current active license therefor. Any person who violates this
1425    paragraph commits a felony of the third degree, punishable as
1426    provided in s. 775.082 or s. 775.083, or, if a corporation, as
1427    provided in s. 775.083.
1428          (b) ANo person licensed as a sales associate may not
1429    salesperson shall operate as a broker or operate as a sales
1430    associatesalespersonfor any person not registered as her or
1431    his employer.
1432          (c) ANo broker may notshallemploy, or continue in
1433    employment, any person as a sales associatesalespersonwho is
1434    not the holder of a valid and current license as sales associate
1435    salesperson; but a license as sales associatesalespersonmay be
1436    issued to a person licensed as an active broker, upon request
1437    and surrender of the license as broker, without a fee in
1438    addition to that paid for the issuance of the broker's active
1439    license.
1440          (d) A sales associate may notNo salesperson shallcollect
1441    any money in connection with any real estate brokerage
1442    transaction, whether as a commission, deposit, payment, rental,
1443    or otherwise, except in the name of the employer and with the
1444    express consent of the employer; and no real estate sales
1445    associatesalesperson, whether the holder of a valid and current
1446    license or not, shall commence or maintain any action for a
1447    commission or compensation in connection with a real estate
1448    brokerage transaction against any person except a person
1449    registered as her or his employer at the time the sales
1450    associatesalespersonperformed the act or rendered the service
1451    for which the commission or compensation is due.
1452          (e) ANo person may notshallviolate any lawful order or
1453    rule of the commission which is binding upon her or him.
1454          (f) ANo person may notshallcommit any conduct or
1455    practice set forth in s. 475.25(1)(b), (c), (d), or (h).
1456          (g) ANo person may notshallmake any false affidavit or
1457    affirmation intended for use as evidence by or before the
1458    commission or a member thereof, or by any of its authorized
1459    representatives, nor mayshallany person give false testimony
1460    under oath or affirmation to or before the commission or any
1461    member thereof in any proceeding authorized by this chapter.
1462          (h) ANo person may notshallfail or refuse to appear at
1463    the time and place designated in a subpoena issued with respect
1464    to a violation of this chapter, unless because of facts that are
1465    sufficient to excuse appearance in response to a subpoena from
1466    the circuit court; nor mayshalla person who is present before
1467    the commission or a member thereof or one of its authorized
1468    representatives acting under authority of this chapter refuse to
1469    be sworn or to affirm or fail or refuse to answer fully any
1470    question propounded by the commission, the member, or such
1471    representative, or by any person by the authority of such
1472    officer or appointee; nor mayshallany person, so being
1473    present, conduct herself or himself in a disorderly,
1474    disrespectful, or contumacious manner.
1475          (i) ANo person may notshallobstruct or hinder in any
1476    manner the enforcement of this chapter or the performance of any
1477    lawful duty by any person acting under the authority of this
1478    chapter or interfere with, intimidate, or offer any bribe to any
1479    member of the commission or any of its employees or any person
1480    who is, or is expected to be, a witness in any investigation or
1481    proceeding relating to a violation of this chapter.
1482          (j) ANo broker or sales associate may notsalesperson
1483    shallplace, or cause to be placed, upon the public records of
1484    any county, any contract, assignment, deed, will, mortgage,
1485    affidavit, or other writing which purports to affect the title
1486    of, or encumber, any real property if the same is known to her
1487    or him to be false, void, or not authorized to be placed of
1488    record, or not executed in the form entitling it to be recorded,
1489    or the execution or recording whereof has not been authorized by
1490    the owner of the property, maliciously or for the purpose of
1491    collecting a commission, or to coerce the payment of money to
1492    the broker or sales associatesalespersonor other person, or
1493    for any unlawful purpose. However, nothing in this paragraph
1494    shall be construed to prohibit a broker or a sales associate
1495    salespersonfrom recording a judgment rendered by a court of
1496    this state or to prohibit a broker from placing a lien on a
1497    property where expressly permitted by contractual agreement.
1498          (k) ANo person may notshalloperate as a broker under a
1499    trade name without causing the trade name to be noted in the
1500    records of the commission and placed on the person's license, or
1501    so operate as a member of a partnership or as a corporation or
1502    as an officer or manager thereof, unless such partnership or
1503    corporation is the holder of a valid current registration.
1504          (l) ANo person may notshallknowingly conceal any
1505    information relating to violations of this chapter.
1506          (m) ANo person may notshallundertake to list or sell
1507    one or more timeshare periods per year in one or more timeshare
1508    plans on behalf of any number of persons without first being the
1509    holder of a valid and current license as a broker or sales
1510    associatesalespersonpursuant to this chapter, except as
1511    provided in s. 475.011 and chapter 721.
1512          (n) ANo broker or sales associate may notsalesperson
1513    shallenter into any listing or other agreement regarding her or
1514    his services in connection with the resale of a timeshare period
1515    unless the broker or sales associatesalespersonfully and
1516    fairly discloses all material aspects of the agreement to the
1517    owner of the timeshare period and fully complies with the
1518    provisions of s. 475.452. Further, ano broker or sales
1519    associate may not usesalesperson shall utilizeany form of
1520    contract or purchase and sale agreement in connection with the
1521    resale of a timeshare period unless the contract or purchase and
1522    sale agreement fully and fairly discloses all material aspects
1523    of the timeshare plan and the rights and obligations of both
1524    buyer and seller. The commission is authorized to adopt
1525    promulgaterules pursuant to chapter 120 as necessary to
1526    implement, enforce, and interpret this paragraph.
1527          (o) A person may not disseminate or cause to be
1528    disseminated by any means any false or misleading information
1529    for the purpose of offering for sale, or for the purpose of
1530    causing or inducing any other person to purchase, lease, or
1531    rent, real estate located in the state or for the purpose of
1532    causing or inducing any other person to acquire an interest in
1533    the title to real estate located in the state.
1534          Section 21. Section 475.43, Florida Statutes, is amended
1535    to read:
1536          475.43 Presumptions.--In all criminal cases, contempt
1537    cases, and other cases filed pursuant to this chapter, if a
1538    party has sold, leased, or let real estate, the title to which
1539    was not in the party when it was offered for sale, lease, or
1540    letting, or such party has maintained an office bearing signs
1541    that real estate is for sale, lease, or rental thereat, or has
1542    advertised real estate for sale, lease, or rental, generally, or
1543    describing property, the title to which was not in such party at
1544    the time, it shall be a presumption that such party was acting
1545    or attempting to act as a real estate broker, and the burden of
1546    proof shall be upon him or her to show that he or she was not
1547    acting or attempting to act as a broker or sales associate
1548    salesperson. All contracts, options, or other devices not based
1549    upon a substantial consideration, or that are otherwise employed
1550    to permit an unlicensed person to sell, lease, or let real
1551    estate, the beneficial title to which has not, in good faith,
1552    passed to such party for a substantial consideration, are hereby
1553    declared void and ineffective in all cases, suits, or
1554    proceedings had or taken under this chapter; however, this
1555    section shall not apply to irrevocable gifts, to unconditional
1556    contracts to purchase, or to options based upon a substantial
1557    consideration actually paid and not subject to any agreements to
1558    return or right of return reserved.
1559          Section 22. Section 475.451, Florida Statutes, is amended
1560    to read:
1561          475.451 Schools teaching real estate practice.--
1562          (1) Each person, school, or institution, except approved
1563    and accredited colleges, universities, community colleges, and
1564    area technical centers in this state, which offers or conducts
1565    any course of study in real estate practice, teaches any course
1566    prescribed by the commission as a condition precedent to
1567    licensure or renewal of licensure as a broker or sales associate
1568    salesperson, or teaches any course designed or represented to
1569    enable or assist applicants for licensure as brokers or sales
1570    associatessalespersonsto pass examinations for such licensure
1571    shall, before commencing or continuing further to offer or
1572    conduct such course or courses, obtain a permit from the
1573    department and abide by the regulations imposed upon such
1574    person, school, or institution by this chapter and rules of the
1575    commission adopted pursuant to this chapter. The exemption for
1576    colleges, universities, community colleges, and area technical
1577    centers is limited to transferable college credit courses
1578    offered by such institutions.
1579          (2) An applicant for a permit to operate a proprietary
1580    real estate school, to be a chief administrator of a proprietary
1581    real estate school or a state institution, or to be an
1582    instructor for a proprietary real estate school or a state
1583    institution must meet the qualifications for practice set forth
1584    in s. 475.17(1) and the following minimal requirements:
1585          (a) "School permitholder" means the individual who is
1586    responsible for directing the overall operation of a proprietary
1587    real estate school. A school permitholder must be the holder of
1588    a license as a broker, either active or voluntarily inactive, or
1589    must have passed an instructor's examination approved by the
1590    commission. A school permitholder must also meet the
1591    requirements of a school instructor if actively engaged in
1592    teaching.
1593          (b) "Chief administrative person" means the individual who
1594    is responsible for the administration of the overall policies
1595    and practices of the institution or proprietary real estate
1596    school. A chief administrative person must also meet the
1597    requirements of a school instructor if actively engaged in
1598    teaching.
1599          (c) "School instructor" means an individual who instructs
1600    persons in the classroom in noncredit college courses in a
1601    college, university, or community college or courses in an area
1602    technical center or proprietary real estate school.
1603          1. Before commencing to provide such instruction, the
1604    applicant must certify the applicant's competency and obtain an
1605    instructor permit by meeting one of the following requirements:
1606          a. Hold a bachelor's degree in a business-related subject,
1607    such as real estate, finance, accounting, business
1608    administration, or its equivalent and hold a valid broker's
1609    license in this state.
1610          b. Hold a bachelor's degree, have extensive real estate
1611    experience, as defined by rule, and hold a valid broker's
1612    license in this state.
1613          c. Pass an instructor's examination approved by the
1614    commission.
1615          2. Any requirement by the commission for a teaching
1616    demonstration or practical examination must apply to all school
1617    instructor applicants.
1618          3. The department shall renew an instructor permit upon
1619    receipt of a renewal application and fee. The renewal
1620    application shall include proof that the permitholder has, since
1621    the issuance or renewal of the current permit, successfully
1622    completed a minimum of 715classroom hours of instruction in
1623    real estate subjects or instructional techniques, as prescribed
1624    by the commission. The commission shall adopt rules providing
1625    for the renewal of instructor permits at least every 2 years.
1626    Any permit which is not renewed at the end of the permit period
1627    established by the department shall automatically revert to
1628    involuntarily inactive status.
1629         
1630          The department may require an applicant to submit names of
1631    persons having knowledge concerning the applicant and the
1632    enterprise; may propound interrogatories to such persons and to
1633    the applicant concerning the character of the applicant,
1634    including the taking of fingerprints for processing through the
1635    Federal Bureau of Investigation; and shall make such
1636    investigation of the applicant or the school or institution as
1637    it may deem necessary to the granting of the permit. If an
1638    objection is filed, it shall be considered in the same manner as
1639    objections or administrative complaints against other applicants
1640    for licensure by the department.
1641          (3) It is unlawful for any person, school, or institution
1642    to offer the courses described in subsection (1) or to conduct
1643    classes in such courses, regardless of the number of pupils,
1644    whether by correspondence or otherwise, without first procuring
1645    a permit, or to guarantee that its pupils will pass any
1646    examinations required for licensure, or to represent that the
1647    issuance of a permit is any recommendation or endorsement of the
1648    person, school, or institution to which it is issued or of any
1649    course of instruction given thereunder.
1650          (4) Any person who violates this section commits a
1651    misdemeanor of the second degree, punishable as provided in s.
1652    775.082 or s. 775.083.
1653          (5) The location of classes and frequency of class
1654    meetings and the provision of distance learning courses shall be
1655    in the discretion of the school offering real estate courses, so
1656    long as such courses conform to s. 475.17(2).
1657          (6) Any course prescribed by the commission as a condition
1658    precedent to any person's becoming initially licensed as a sales
1659    associatesalespersonmay be taught in any real estate school
1660    through the use of a video tape of instruction by a currently
1661    permitted instructor from any such school or may be taught by
1662    distance learning pursuant to s. 475.17(2). The commission may
1663    require that any such video tape course have a single session of
1664    live instruction by a currently permitted instructor from any
1665    such school; however, this requirement shall not exceed 3
1666    classroom hours. All other prescribed courses, except the
1667    continuing education course required by s. 475.182, shall be
1668    taught by a currently permitted school instructor personally in
1669    attendance at such course or by distance learning pursuant to s.
1670    475.17. The continuing education course required by s. 475.182
1671    may be taught by distance learning pursuant to s. 475.17 or by
1672    an equivalent correspondence course; however, any such
1673    correspondence course shall be required to have a final
1674    examination, prepared and administered by the school issuing the
1675    correspondence course. The continuing education requirements
1676    provided in this section or provided in any other section in
1677    this chapter do not apply with respect to any attorney who is
1678    otherwise qualified under the provisions of this chapter.
1679          (7) Any person holding a school instructor permit on
1680    October 1, 1983, is exempt from the instructor examination
1681    requirements of paragraph (2)(c) as long as the person
1682    continuously holds such a permit and complies with all other
1683    requirements of this chapter.
1684          (7)(8)A permitholder under this section may be issued
1685    additional permits whenever it is clearly shown that the
1686    requested additional permits are necessary to the conduct of the
1687    business of a real estate school and that the additional permits
1688    will not be used in a manner likely to be prejudicial to any
1689    person, including a licensee or a permitholder under this
1690    chapter.
1691          Section 23. Subsection (4) of section 475.4511, Florida
1692    Statutes, is repealed.
1693          Section 24. Section 475.453, Florida Statutes, is amended
1694    to read:
1695          475.453 Rental information; contract or receipt; refund;
1696    penalty.--
1697          (1) Each broker or sales associatesalespersonwho
1698    attempts to negotiate a rental, or who furnishes rental
1699    information to a prospective tenant, for a fee paid by the
1700    prospective tenant shall provide such prospective tenant with a
1701    contract or receipt, which contract or receipt contains a
1702    provision for the repayment of any amount over 25 percent of the
1703    fee to the prospective tenant if the prospective tenant does not
1704    obtain a rental. If the rental information provided by the
1705    broker or sales associatesalespersonto a prospective tenant is
1706    not current or accurate in any material respect, the full fee
1707    shall be repaid to the prospective tenant upon demand. A demand
1708    from the prospective tenant for the return of the fee, or any
1709    part thereof, shall be made within 30 days following the day on
1710    which the real estate broker or sales associatesalespersonhas
1711    contracted to perform services to the prospective tenant. The
1712    contract or receipt shall also conform to the guidelines adopted
1713    by the commission in order to effect disclosure of material
1714    information regarding the service to be provided to the
1715    prospective tenant.
1716          (2) The commission may adopt a guideline for the form of
1717    the contract or receipt required to be provided by brokers or
1718    sales associatessalespersonspursuant to the provisions of
1719    subsection (1).
1720          (3)(a) Any person who violates any provision of subsection
1721    (1) is guilty of a misdemeanor of the first degree, punishable
1722    as provided in s. 775.082 or s. 775.083.
1723          (b) In addition to the penalty prescribed in paragraph
1724    (a), the license of any broker or sales associatesalesperson
1725    who participates in any rental information transaction which is
1726    in violation of the provisions of subsection (1) shall be
1727    subject to suspension or revocation by the commission in the
1728    manner prescribed by law.
1729          Section 25. Section 475.455, Florida Statutes, is amended
1730    to read:
1731          475.455 Exchange of disciplinary information.--The
1732    commission shall inform the Division of Florida Land Sales,
1733    Condominiums, and Mobile Homes of the Department of Business and
1734    Professional Regulation of any disciplinary action the
1735    commission has taken against any of its licensees. The division
1736    shall inform the commission of any disciplinary action the
1737    division has taken against any broker or sales associate
1738    salespersonregistered with the division.
1739          Section 26. Section 475.482, Florida Statutes, is amended
1740    to read:
1741          475.482 Real Estate Recovery Fund.--There is created the
1742    Florida Real Estate Recovery Fund as a separate account in the
1743    Professional Regulation Trust Fund.
1744          (1) The Florida Real Estate Recovery Fund shall be
1745    disbursed as provided in s. 475.484, on order of the commission,
1746    as reimbursement to any person, partnership, or corporation
1747    adjudged by a court of competent civil jurisdiction in this
1748    state to have suffered monetary damages by reason of any act
1749    committed, as a part of any real estate brokerage transaction
1750    involving real property in this state, by any broker or sales
1751    associatesalespersonwho:
1752          (a) Was, at the time the alleged act was committed, the
1753    holder of a current, valid, active real estate license issued
1754    under this part;
1755          (b) Was neither the seller, buyer, landlord, or tenant in
1756    the transaction nor an officer or a director of a corporation, a
1757    member of a partnership, a member of a limited liability
1758    company, or a partner of a limited liability partnership which
1759    was the seller, buyer, landlord, or tenant in the transaction;
1760    and
1761          (c) Was acting solely in the capacity of a real estate
1762    licensee in the transaction;
1763         
1764          provided the act was a violation proscribed in s. 475.25 or s.
1765    475.42.
1766          (2) The Real Estate Recovery Fund shall also be disbursed
1767    as provided in s. 475.484, on order of the commission, as
1768    reimbursement to any broker or sales associatesalespersonwho
1769    is required by a court of competent civil jurisdiction to pay
1770    monetary damages due to a distribution of escrow moneys which is
1771    made in compliance with an escrow disbursement order issued by
1772    the commission. However, in no case shall the fund be disbursed
1773    when the broker or sales associatesalespersonfails to notify
1774    the commission and to diligently defend an action wherein the
1775    broker or sales associatesalespersonmay be required by a court
1776    of competent civil jurisdiction to pay monetary damages due to a
1777    distribution of escrow moneys which is made in compliance with
1778    an escrow disbursement order issued by the commission.
1779          (3) A fee of $3.50 per year shall be added to the license
1780    fee for both new licenses and renewals of licenses for brokers,
1781    and a fee of $1.50 per year shall be added for new licenses and
1782    renewals of licenses for sales associatessalespersons. This
1783    fee shall be in addition to the regular license fee and shall be
1784    deposited in or transferred to the Real Estate Recovery Fund.
1785    If the fund at any time exceeds $1 million$750,000, collection
1786    of special fees for this fund shall be discontinued at the end
1787    of the licensing renewal cycle. Such special fees shall not be
1788    reimposed unless the fund is reduced below $500,000 by
1789    disbursement made in accordance with this chapter.
1790          (4) In addition, all moneys collected from fines imposed
1791    by the commission and collected by the department shall be
1792    transferred into the Real Estate Recovery Fund.
1793          Section 27. Paragraph (a) of subsection (1) and
1794    subsections (2) and (3) of section 475.483, Florida Statutes,
1795    are amended to read:
1796          475.483 Conditions for recovery; eligibility.--
1797          (1) Any person is eligible to seek recovery from the Real
1798    Estate Recovery Fund if:
1799          (a) Such person has received a final judgment in a court
1800    of competent civil jurisdiction in this state against an
1801    individual broker or sales associatesalespersonin any action
1802    wherein the cause of action was based on a real estate brokerage
1803    transaction. If such person is unable to secure a final judgment
1804    against a licensee due to the death of the licensee, the
1805    commission may waive the requirement for a final judgment. The
1806    filing of a bankruptcy petition by a broker or sales associate
1807    salespersondoes not relieve a claimant from the obligation to
1808    obtain a final judgment against the licensee. In this instance,
1809    the claimant must seek to have assets involving the real estate
1810    transaction that gave rise to the claim removed from the
1811    bankruptcy proceedings so that the matter might be heard in a
1812    court of competent civil jurisdiction in this state. If, after
1813    due diligence, the claimant is precluded by action of the
1814    bankruptcy court from securing a final judgment against the
1815    licensee, the commission may waive the requirement for a final
1816    judgment.
1817          (2) A person is not qualified to make a claim for recovery
1818    from the Real Estate Recovery Fund, if:
1819          (a) Such person is the spouse of the judgment debtor or a
1820    personal representative of such spouse;
1821          (b) Such person is a licensed broker or sales associate
1822    salespersonwho acted as a single agent or transaction broker in
1823    the transaction that is the subject of the claim;
1824          (c) Such person's claim is based upon a real estate
1825    transaction in which the licensed broker or sales associate
1826    salespersonwas the owner of or controlled the property involved
1827    in the transaction; in which the licensee was dealing for the
1828    licensee's own account; or in which the licensee was not acting
1829    as a broker or sales associatesalesperson;
1830          (d) Such person's claim is based upon a real estate
1831    transaction in which the broker or sales associatesalesperson
1832    did not hold a valid, current, and active license at the time of
1833    the real estate transaction; or
1834          (e) The judgment is against a real estate brokerage
1835    corporation, partnership, limited liability company, or limited
1836    liability partnership.
1837          (3) The commission may pay attorney's fees and court costs
1838    If the claim is of the type described in s. 475.482(2), the
1839    commission shall pay the defendant's reasonable attorney's fees
1840    and court costs and, if the plaintiff prevails in court, the
1841    plaintiff's reasonable attorney's fees and court costs.
1842          Section 28. Subsections (1), (3), (4), (5), and (7) of
1843    section 475.484, Florida Statutes, are amended to read:
1844          475.484 Payment from the fund.--
1845          (1) Any person who meets all of the conditions prescribed
1846    in s. 475.482(1) or (2) may apply to the commission to cause
1847    payment to be made to such person from the Real Estate Recovery
1848    Fund:
1849          (a) Under s. 475.482(1), in an amount equal to the
1850    unsatisfied portion of such person's judgment or $50,000
1851    $25,000, whichever is less, but only to the extent and amount
1852    reflected in the judgment as being actual or compensatory
1853    damages. Except as provided in s. 475.483, treble damages, court
1854    costs, attorney's fees, and interest shall not be recovered from
1855    the fund.
1856          (b) Under s. 475.482(2), in an amount equal to the
1857    judgment against the broker or sales associatesalesperson or
1858    $50,000$25,000, whichever is less.
1859          (3) Payments for claims arising out of the same
1860    transaction shall be limited, in the aggregate, to $50,000
1861    $25,000, regardless of the number of claimants or parcels of
1862    real estate involved in the transaction.
1863          (4) Payments for claims based upon judgments against any
1864    one broker or sales associatesalespersonmay not exceed, in the
1865    aggregate, $150,000$75,000.
1866          (5) If at any time the moneys in the Real Estate Recovery
1867    Fund are insufficient to satisfy any valid claim or portion
1868    thereof, the commission shall satisfy such unpaid claim or
1869    portion thereof as soon as a sufficient amount of money has been
1870    deposited in or transferred to the fund. When there is more than
1871    one unsatisfied claim outstanding, such claims shall be paid in
1872    the order in which the claims were approved by the commission.
1873    However, if the total claims approved at any one commission
1874    meeting exceed the aggregate amount established in subsection
1875    (4) against any one broker or sales associatesalesperson, the
1876    claims approved on that day shall be prorated.
1877          (7) Upon the payment of any amount from the Real Estate
1878    Recovery Fund in settlement of a claim in satisfaction of a
1879    judgment against a broker or sales associatesalespersonas
1880    described in s. 475.482(1), the license of such broker or sales
1881    associatesalespersonshall be automatically suspended upon the
1882    date of payment from the fund. The license of such broker or
1883    sales associatesalespersonmay not be reinstated until the
1884    licensee has repaid in full, plus interest, the amount paid from
1885    the fund. No further administrative action is necessary. A
1886    discharge of bankruptcy does not relieve a licensee from the
1887    penalties and disabilities provided in this section, except to
1888    the extent that this subsection conflicts with 11 U.S.C. s. 525,
1889    in which case the commission may order the license not to be
1890    suspended or otherwise discriminated against.
1891          Section 29. Subsection (2) of section 475.5017, Florida
1892    Statutes, is amended to read:
1893          475.5017 Injunctive relief; powers.--
1894          (2) All expenses of the receiver shall be paid out of the
1895    assets of the brokerage firm upon application to and approval by
1896    the court. If the assets are not sufficient to pay all the
1897    expenses of the receiver, the court may order disbursement from
1898    the Real Estate Recovery Fund, which may not exceed $100,000
1899    $75,000per receivership.
1900          Section 30. Section 475.505, Florida Statutes, is created
1901    to read:
1902          475.505 Temporary practice.--
1903          (1) The commission shall recognize, on a temporary basis,
1904    the license of a real estate broker issued by another state,
1905    provided:
1906          (a) The real estate broker's business is of a temporary
1907    nature and limited to commercial real estate transactions. For
1908    purposes of this section, "commercial real estate" means any
1909    parcel of real estate in this state other than real estate
1910    containing one to four residential units. "Commercial real
1911    estate" does not include single-family residential units such as
1912    condominiums, townhouses, manufactured homes, or homes in a
1913    subdivision when sold, leased, or otherwise conveyed on a unit-
1914    by-unit basis, even when those units are a part of a larger
1915    building or parcel of real estate containing more than four
1916    residential units.
1917          (b) The real estate broker registers with the commission.
1918          (c) The person requesting recognition of a license as a
1919    real estate broker issued by another state is a nonresident of
1920    Florida.
1921          (2) In order to register with the commission, the real
1922    estate broker must:
1923          (a) Pay any required fee as established by rule.
1924          (b) Provide, or cause the state where the applicant may be
1925    licensed or certified to furnish, proof of licensure or
1926    certification along with the copies of the records of any
1927    disciplinary actions taken against the applicant's license or
1928    certification in that or other jurisdictions.
1929          (c) Agree in writing to cooperate with any investigation
1930    initiated under this part by promptly supplying such documents
1931    that any authorized representative of the department may
1932    request. If the department sends a notice by certified mail to
1933    the last known address of a nonresident real estate broker to
1934    produce documents or to appear in conjunction with an
1935    investigation and the nonresident real estate broker fails to
1936    comply with that request, the commission may impose on that
1937    nonresident real estate broker any disciplinary action or
1938    penalty authorized under this part.
1939          (d) Agree to enter a written agreement with a cooperating
1940    real estate broker licensed in this state before performing any
1941    act in this state which constitutes professional real estate
1942    activity. The written agreement shall provide:
1943          1. The terms of cooperation and compensation.
1944          2. That the services set forth in s. 475.01(1)(a), if
1945    conducted in this state, will be under the supervision and
1946    control of the cooperating real estate broker licensed in this
1947    state.
1948          3. That civil actions may be commenced against the real
1949    estate broker, the cooperating real estate broker licensed in
1950    this state, or both in any court of competent jurisdiction in
1951    any county of this state in which a claim arises.
1952          4. That the cooperating real estate broker licensed in
1953    this state shall accompany the real estate broker and the
1954    potential buyer or potential lessee during any initial property
1955    showing.
1956          5. That all subsequent property showings and all
1957    negotiations regarding the cooperative real estate transaction
1958    are conducted under the supervision, control, and express
1959    permission of the cooperating real estate broker licensed in
1960    this state.
1961          6. That any escrow or trust funds obtained by the real
1962    estate broker in any transaction involving any real property in
1963    Florida shall be held in the escrow account of the cooperating
1964    real estate broker licensed in this state unless otherwise
1965    agreed in writing by the party or parties having any interest in
1966    said escrow or trust funds.
1967          (e) Sign a notarized statement that the applicant has read
1968    this part and all applicable rules and agrees to comply with the
1969    laws of Florida in the performance of all real estate
1970    activities.
1971          (3) For purposes of this section, a "real estate broker
1972    licensed in another state" means the licensed broker and other
1973    brokers or salespersons licensed under such broker. However, the
1974    temporary recognition will extend to other brokers and
1975    salespersons licensed under such broker, provided they follow
1976    all of the foregoing requirements for registration and the
1977    broker provides the commission a notarized statement certifying
1978    that the brokers or salespersons will perform the services of
1979    real estate under the real estate broker's direction, control,
1980    or management and in accordance with the agreement with the
1981    cooperating real estate broker licensed in this state.
1982          Section 31. Subsections (2) and (3) of section 475.612,
1983    Florida Statutes, are amended to read:
1984          475.612 Certification, licensure, or registration
1985    required.--
1986          (2) This section does not preclude a broker, sales
1987    associatesalesperson, or broker associatebroker-salesperson
1988    who is not a certified or licensed real estate appraiser or
1989    registered assistant real estate appraiser from appraising real
1990    estate for compensation. Such persons may continue to provide
1991    appraisals and appraisal services for compensation so long as
1992    they do not represent themselves as certified, licensed, or
1993    registered under this part.
1994          (3) This section does not apply to a real estate broker or
1995    sales associatesalespersonwho, in the ordinary course of
1996    business, performs a comparative market analysis, gives a broker
1997    price opinion, or gives an opinion of the value of real estate.
1998    However, in no event may this comparative market analysis,
1999    broker price opinion, or opinion of value of real estate be
2000    referred to or construed as an appraisal.
2001          Section 32. Section 689.25, Florida Statutes, is amended
2002    to read:
2003          689.25 Failure to disclose homicide, suicide, deaths, or
2004    diagnosis of HIV or AIDS infection in an occupant of real
2005    property.--
2006          (1)(a)The fact that an occupant of real property is
2007    infected or has been infected with human immunodeficiency virus
2008    or diagnosed with acquired immune deficiency syndrome is not a
2009    material fact that must be disclosed in a real estate
2010    transaction.
2011          (b) The fact that a property was, or was at any time
2012    suspected to have been, the site of a homicide, suicide, or
2013    death is not a material fact that must be disclosed in a real
2014    estate transaction.
2015          (2) ANo cause of action shall not arisearisesagainst an
2016    owner of real property,or his or her agent, anor against any
2017    agent of a transferee of real property, or a person licensed
2018    under chapter 475 for the failure to disclose to the transferee
2019    that the property was or was suspected to have been the site of
2020    a homicide, suicide, or death orthat an occupant of that
2021    property was infected with human immunodeficiency virus or
2022    diagnosed with acquired immune deficiency syndrome.
2023          Section 33. Sections 475.421 and 475.422, Florida
2024    Statutes, are repealed.
2025          Section 34. Paragraph (d) of subsection (3) of section
2026    83.49, Florida Statutes, is amended to read:
2027          83.49 Deposit money or advance rent; duty of landlord and
2028    tenant.--
2029          (3)
2030          (d) Compliance with this section by an individual or
2031    business entity authorized to conduct business in this state,
2032    including Florida-licensed real estate brokers and sales
2033    associatessalespersons, shall constitute compliance with all
2034    other relevant Florida Statutes pertaining to security deposits
2035    held pursuant to a rental agreement or other landlord-tenant
2036    relationship. Enforcement personnel shall look solely to this
2037    section to determine compliance. This section prevails over any
2038    conflicting provisions in chapter 475 and in other sections of
2039    the Florida Statutes, and shall operate to permit licensed real
2040    estate brokers to disburse security deposits and deposit money
2041    without having to comply with the notice and settlement
2042    procedures contained in s. 475.25(1)(d).
2043          Section 35. Paragraph (d) of subsection (15) of section
2044    440.02, Florida Statutes, is amended to read:
2045          440.02 Definitions.--When used in this chapter, unless the
2046    context clearly requires otherwise, the following terms shall
2047    have the following meanings:
2048          (15)
2049          (d) "Employee" does not include:
2050          1. An independent contractor, if:
2051          a. The independent contractor maintains a separate
2052    business with his or her own work facility, truck, equipment,
2053    materials, or similar accommodations;
2054          b. The independent contractor holds or has applied for a
2055    federal employer identification number, unless the independent
2056    contractor is a sole proprietor who is not required to obtain a
2057    federal employer identification number under state or federal
2058    requirements;
2059          c. The independent contractor performs or agrees to
2060    perform specific services or work for specific amounts of money
2061    and controls the means of performing the services or work;
2062          d. The independent contractor incurs the principal
2063    expenses related to the service or work that he or she performs
2064    or agrees to perform;
2065          e. The independent contractor is responsible for the
2066    satisfactory completion of work or services that he or she
2067    performs or agrees to perform and is or could be held liable for
2068    a failure to complete the work or services;
2069          f. The independent contractor receives compensation for
2070    work or services performed for a commission or on a per-job or
2071    competitive-bid basis and not on any other basis;
2072          g. The independent contractor may realize a profit or
2073    suffer a loss in connection with performing work or services;
2074          h. The independent contractor has continuing or recurring
2075    business liabilities or obligations; and
2076          i. The success or failure of the independent contractor's
2077    business depends on the relationship of business receipts to
2078    expenditures.
2079         
2080          However, the determination as to whether an individual included
2081    in the Standard Industrial Classification Manual of 1987,
2082    Industry Numbers 0711, 0721, 0722, 0751, 0761, 0762, 0781, 0782,
2083    0783, 0811, 0831, 0851, 2411, 2421, 2435, 2436, 2448, or 2449,
2084    or a newspaper delivery person, is an independent contractor is
2085    governed not by the criteria in this paragraph but by common-law
2086    principles, giving due consideration to the business activity of
2087    the individual. Notwithstanding the provisions of this paragraph
2088    or any other provision of this chapter, with respect to any
2089    commercial building project estimated to be valued at $250,000
2090    or greater, a person who is actively engaged in the construction
2091    industry is not an independent contractor and is either an
2092    employer or an employee who may not be exempt from the coverage
2093    requirements of this chapter.
2094          2. A real estate licenseesalesperson or agent, if that
2095    person agrees, in writing, to perform for remuneration solely by
2096    way of commission.
2097          3. Bands, orchestras, and musical and theatrical
2098    performers, including disk jockeys, performing in licensed
2099    premises as defined in chapter 562, if a written contract
2100    evidencing an independent contractor relationship is entered
2101    into before the commencement of such entertainment.
2102          4. An owner-operator of a motor vehicle who transports
2103    property under a written contract with a motor carrier which
2104    evidences a relationship by which the owner-operator assumes the
2105    responsibility of an employer for the performance of the
2106    contract, if the owner-operator is required to furnish the
2107    necessary motor vehicle equipment and all costs incidental to
2108    the performance of the contract, including, but not limited to,
2109    fuel, taxes, licenses, repairs, and hired help; and the owner-
2110    operator is paid a commission for transportation service and is
2111    not paid by the hour or on some other time-measured basis.
2112          5. A person whose employment is both casual and not in the
2113    course of the trade, business, profession, or occupation of the
2114    employer.
2115          6. A volunteer, except a volunteer worker for the state or
2116    a county, municipality, or other governmental entity. A person
2117    who does not receive monetary remuneration for services is
2118    presumed to be a volunteer unless there is substantial evidence
2119    that a valuable consideration was intended by both employer and
2120    employee. For purposes of this chapter, the term "volunteer"
2121    includes, but is not limited to:
2122          a. Persons who serve in private nonprofit agencies and who
2123    receive no compensation other than expenses in an amount less
2124    than or equivalent to the standard mileage and per diem expenses
2125    provided to salaried employees in the same agency or, if such
2126    agency does not have salaried employees who receive mileage and
2127    per diem, then such volunteers who receive no compensation other
2128    than expenses in an amount less than or equivalent to the
2129    customary mileage and per diem paid to salaried workers in the
2130    community as determined by the department; and
2131          b. Volunteers participating in federal programs
2132    established under Pub. L. No. 93-113.
2133          7. Any officer of a corporation who elects to be exempt
2134    from this chapter.
2135          8. A sole proprietor or officer of a corporation who
2136    actively engages in the construction industry, and a partner in
2137    a partnership that is actively engaged in the construction
2138    industry, who elects to be exempt from the provisions of this
2139    chapter. Such sole proprietor, officer, or partner is not an
2140    employee for any reason until the notice of revocation of
2141    election filed pursuant to s. 440.05 is effective.
2142          9. An exercise rider who does not work for a single horse
2143    farm or breeder, and who is compensated for riding on a case-by-
2144    case basis, provided a written contract is entered into prior to
2145    the commencement of such activity which evidences that an
2146    employee/employer relationship does not exist.
2147          10. A taxicab, limousine, or other passenger vehicle-for-
2148    hire driver who operates said vehicles pursuant to a written
2149    agreement with a company which provides any dispatch, marketing,
2150    insurance, communications, or other services under which the
2151    driver and any fees or charges paid by the driver to the company
2152    for such services are not conditioned upon, or expressed as a
2153    proportion of, fare revenues.
2154          11. A person who performs services as a sports official
2155    for an entity sponsoring an interscholastic sports event or for
2156    a public entity or private, nonprofit organization that sponsors
2157    an amateur sports event. For purposes of this subparagraph, such
2158    a person is an independent contractor. For purposes of this
2159    subparagraph, the term "sports official" means any person who is
2160    a neutral participant in a sports event, including, but not
2161    limited to, umpires, referees, judges, linespersons,
2162    scorekeepers, or timekeepers. This subparagraph does not apply
2163    to any person employed by a district school board who serves as
2164    a sports official as required by the employing school board or
2165    who serves as a sports official as part of his or her
2166    responsibilities during normal school hours.
2167          Section 36. Paragraph (n) of subsection (21) of section
2168    443.036, Florida Statutes, is amended to read:
2169          443.036 Definitions.--As used in this chapter, unless the
2170    context clearly requires otherwise:
2171          (21) EMPLOYMENT.--"Employment," subject to the other
2172    provisions of this chapter, means any service performed by an
2173    employee for the person employing him or her.
2174          (n) Exclusions generally.--The term "employment" does not
2175    include:
2176          1. Domestic service in a private home, local college club,
2177    or local chapter of a college fraternity or sorority, except as
2178    provided in paragraph (g).
2179          2. Service performed on or in connection with a vessel or
2180    aircraft not an American vessel or American aircraft, if the
2181    employee is employed on and in connection with such vessel or
2182    aircraft when outside the United States.
2183          3. Service performed by an individual in, or as an officer
2184    or member of the crew of a vessel while it is engaged in, the
2185    catching, taking, harvesting, cultivating, or farming of any
2186    kind of fish, shellfish, crustacea, sponges, seaweeds, or other
2187    aquatic forms of animal and vegetable life, including service
2188    performed by any such individual as an ordinary incident to any
2189    such activity, except:
2190          a. Service performed in connection with the catching or
2191    taking of salmon or halibut for commercial purposes.
2192          b. Service performed on, or in connection with, a vessel
2193    of more than 10 net tons, determined in the manner provided for
2194    determining the register tonnage of merchant vessels under the
2195    laws of the United States.
2196          4. Service performed by an individual in the employ of his
2197    or her son, daughter, or spouse, including step relationships,
2198    and service performed by a child, or stepchild, under the age of
2199    21 in the employ of his or her father or mother, or stepfather
2200    or stepmother.
2201          5. Service performed in the employ of the United States
2202    Government or of an instrumentality of the United States which
2203    is:
2204          a. Wholly or partially owned by the United States.
2205          b. Exempt from the tax imposed by s. 3301 of the Internal
2206    Revenue Code by virtue of any provision of federal law which
2207    specifically refers to such section, or the corresponding
2208    section of prior law, in granting such exemption; except that to
2209    the extent that the Congress shall permit states to require any
2210    instrumentalities of the United States to make payments into an
2211    unemployment fund under a state unemployment compensation law,
2212    all of the provisions of this law shall be applicable to such
2213    instrumentalities, and to services performed for such
2214    instrumentalities, in the same manner, to the same extent, and
2215    on the same terms as to all other employers, employing units,
2216    individuals, and services. If this state is not certified for
2217    any year by the Secretary of Labor under s. 3304 of the federal
2218    Internal Revenue Code, the payments required of such
2219    instrumentalities with respect to such year shall be refunded by
2220    the division from the fund in the same manner and within the
2221    same period as is provided in s. 443.141(6) with respect to
2222    contributions erroneously collected.
2223          6. Service performed in the employ of a state, or any
2224    political subdivision thereof, or any instrumentality of any one
2225    or more of the foregoing which is wholly owned by one or more
2226    states or political subdivisions, except as provided in
2227    paragraph (b), and any service performed in the employ of any
2228    instrumentality of one or more states or political subdivisions,
2229    to the extent that the instrumentality is, with respect to such
2230    service, immune under the Constitution of the United States from
2231    the tax imposed by s. 3301 of the Internal Revenue Code.
2232          7. Service performed in the employ of a corporation,
2233    community chest, fund, or foundation, organized and operated
2234    exclusively for religious, charitable, scientific, testing for
2235    public safety, literary, or educational purposes, or for the
2236    prevention of cruelty to children or animals, no part of the net
2237    earnings of which inures to the benefit of any private
2238    shareholder or individual, no substantial part of the activities
2239    of which is carrying on propaganda or otherwise attempting to
2240    influence legislation, and which does not participate in, or
2241    intervene in (including the publishing or distributing of
2242    statements), any political campaign on behalf of any candidate
2243    for public office, except as provided in paragraph (c).
2244          8. Service with respect to which unemployment compensation
2245    is payable under an unemployment compensation system established
2246    by an Act of Congress.
2247          9.a. Service performed in any calendar quarter in the
2248    employ of any organization exempt from income tax under s.
2249    501(a) of the Internal Revenue Code, other than an organization
2250    described in s. 401(a), or under s. 521, if the remuneration for
2251    such service is less than $50.
2252          b. Service performed in the employ of a school, college,
2253    or university, if such service is performed by a student who is
2254    enrolled and is regularly attending classes at such school,
2255    college, or university.
2256          10. Service performed in the employ of a foreign
2257    government, including service as a consular or other officer or
2258    employee of a nondiplomatic representative.
2259          11. Service performed in the employ of an instrumentality
2260    wholly owned by a foreign government:
2261          a. If the service is of a character similar to that
2262    performed in foreign countries by employees of the United States
2263    Government or of an instrumentality thereof; and
2264          b. The Secretary of State shall certify to the Secretary
2265    of the Treasury that the foreign government, with respect to
2266    whose instrumentality exemption is claimed, grants an equivalent
2267    exemption with respect to similar service performed in the
2268    foreign country by employees of the United States Government and
2269    of instrumentalities thereof.
2270          12. Service performed as a student nurse in the employ of
2271    a hospital or a nurses' training school by an individual who is
2272    enrolled and is regularly attending classes in a nurses'
2273    training school chartered or approved pursuant to a state law;
2274    service performed as an intern in the employ of a hospital by an
2275    individual who has completed a 4-year course in a medical school
2276    chartered or approved pursuant to state law; and service
2277    performed by a patient of a hospital for such hospital.
2278          13. Service performed by an individual for a person as an
2279    insurance agent or as an insurance solicitor, if all such
2280    service performed by such individual for such person is
2281    performed for remuneration solely by way of commission, except
2282    for such services performed in accordance with 26 U.S.C.S. s.
2283    3306(c)(7) and (8). For purposes of this subsection, those
2284    benefits excluded from the definition of wages pursuant to
2285    subparagraphs (40)(b)2.-6., inclusive, shall not be considered
2286    remuneration.
2287          14. Service performed by an individual for a person as a
2288    real estate licenseesalesperson or agent, if all such service
2289    performed by such individual for such person is performed for
2290    remuneration solely by way of commission.
2291          15. Service performed by an individual under the age of 18
2292    in the delivery or distribution of newspapers or shopping news,
2293    not including delivery or distribution to any point for
2294    subsequent delivery or distribution.
2295          16. Service covered by an arrangement between the division
2296    and the agency charged with the administration of any other
2297    state or federal unemployment compensation law pursuant to which
2298    all services performed by an individual for an employing unit
2299    during the period covered by such employing unit's duly approved
2300    election are deemed to be performed entirely within such
2301    agency's state or under such federal law.
2302          17. Service performed by an individual who is enrolled at
2303    a nonprofit or public educational institution which normally
2304    maintains a regular faculty and curriculum and normally has a
2305    regularly organized body of students in attendance at the place
2306    where its educational activities are carried on as a student in
2307    a full-time program, taken for credit at such institution, which
2308    combines academic instruction with work experience, if such
2309    service is an integral part of such program, and such
2310    institution has so certified to the employer, except that this
2311    subparagraph does not apply to service performed in a program
2312    established for or on behalf of an employer or group of
2313    employers.
2314          18. Service performed by an individual for a person as a
2315    barber, if all such service performed by such individual for
2316    such person is performed for remuneration solely by way of
2317    commission.
2318          19. Casual labor not in the course of the employer's trade
2319    or business.
2320          20. Service performed by a speech therapist, occupational
2321    therapist, or physical therapist who is nonsalaried and working
2322    pursuant to a written contract with a home health agency as
2323    defined in s. 400.462.
2324          21. Service performed by a direct seller. For purposes of
2325    this subparagraph, the term "direct seller" means a person:
2326          a.(I) Who is engaged in the trade or business of selling
2327    or soliciting the sale of consumer products to buyers on a buy-
2328    sell basis or a deposit-commission basis, or on any similar
2329    basis, for resale in the home or in any other place that is not
2330    a permanent retail establishment; or
2331          (II) Who is engaged in the trade or business of selling or
2332    soliciting the sale of consumer products in the home or in any
2333    other place that is not a permanent retail establishment;
2334          b. Substantially all of whose remuneration for services
2335    described in sub-subparagraph a., whether or not paid in cash,
2336    is directly related to sales or other output, rather than to the
2337    number of hours worked; and
2338          c. Who performs such services pursuant to a written
2339    contract with the person for whom the services are performed,
2340    which contract provides that the person will not be treated as
2341    an employee with respect to such services for federal tax
2342    purposes.
2343          22. Service performed by a nonresident alien individual
2344    for the period he or she is temporarily present in the United
2345    States as a nonimmigrant under subparagraph (F) or subparagraph
2346    (J) of s. 101(a)(15) of the Immigration and Nationality Act, and
2347    which is performed to carry out the purpose specified in
2348    subparagraph (F) or subparagraph (J), as the case may be.
2349          23. Service performed by an individual for remuneration
2350    for a private, for-profit delivery or messenger service, if the
2351    individual:
2352          a. Is free to accept or reject jobs from the delivery or
2353    messenger service and the delivery or messenger service has no
2354    control over when the individual works;
2355          b. Is remunerated for each delivery, or the remuneration
2356    is based on factors that relate to the work performed, including
2357    receipt of a percentage of any rate schedule;
2358          c. Pays all expenses and the opportunity for profit or
2359    loss rests solely with the individual;
2360          d. Is responsible for operating costs, including fuel,
2361    repairs, supplies, and motor vehicle insurance;
2362          e. Determines the method of performing the service,
2363    including selection of routes and order of deliveries;
2364          f. Is responsible for the completion of a specific job and
2365    is liable for any failure to complete that job;
2366          g. Enters into a contract with the delivery or messenger
2367    service which specifies the relationship of the individual to
2368    the delivery or messenger service to be that of an independent
2369    contractor and not that of an employee; and
2370          h. Provides the vehicle used to perform the service.
2371          24. Service performed in agricultural labor by an
2372    individual who is an alien admitted to the United States to
2373    perform service in agricultural labor pursuant to ss.
2374    101(a)(15)(H) and 214(c) of the Immigration and Nationality Act.
2375          25. Service performed by a person who is an inmate of a
2376    penal institution.
2377          Section 37. Subsection (25) of section 501.604, Florida
2378    Statutes, is amended to read:
2379          501.604 Exemptions.--The provisions of this part, except
2380    ss. 501.608 and 501.616(6) and (7), do not apply to:
2381          (25) A person who is a licensed real estate salesperson or
2382    brokerpursuant to chapter 475 and who is soliciting within the
2383    scope of the chapter.
2384          Section 38. Subsection (4) of section 687.14, Florida
2385    Statutes, is amended to read:
2386          687.14 Definitions.--As used in this act, unless the
2387    context otherwise requires:
2388          (4) "Loan broker" means any person, except any bank or
2389    savings and loan association, trust company, building and loan
2390    association, credit union, consumer finance company, retail
2391    installment sales company, securities broker-dealer, real estate
2392    broker or sales associatesalesperson, attorney, federal Housing
2393    Administration or United States Department of Veterans Affairs
2394    approved lender, credit card company, installment loan licensee,
2395    mortgage broker or lender, or insurance company, provided that
2396    the person excepted is licensed by and subject to regulation or
2397    supervision of any agency of the United States or this state and
2398    is acting within the scope of the license; and also excepting
2399    subsidiaries of licensed or chartered consumer finance
2400    companies, banks, or savings and loan associations; who:
2401          (a) For or in expectation of consideration arranges or
2402    attempts to arrange or offers to fund a loan of money, a credit
2403    card, or a line of credit;
2404          (b) For or in expectation of consideration assists or
2405    advises a borrower in obtaining or attempting to obtain a loan
2406    of money, a credit card, a line of credit, or related guarantee,
2407    enhancement, or collateral of any kind or nature;
2408          (c) Acts for or on behalf of a loan broker for the purpose
2409    of soliciting borrowers; or
2410          (d) Holds herself or himself out as a loan broker.
2411          Section 39. Subsections (1) and (6) of section 721.20,
2412    Florida Statutes, are amended to read:
2413          721.20 Licensing requirements; suspension or revocation of
2414    license; exceptions to applicability; collection of advance fees
2415    for listings unlawful.--
2416          (1) Any seller of a timeshare plan must be a licensed real
2417    estate salesperson, broker, broker associate, or sales associate
2418    broker-salespersonas defined in s. 475.01, except as provided
2419    in s. 475.011.
2420          (6) Notwithstanding the provisions of s. 475.452, it is
2421    unlawful for any real estate broker, broker associate
2422    salesperson, or sales associatebroker-salespersonto collect
2423    any advance fee for the listing of any timeshare estate or
2424    timeshare license.
2425          Section 40. Paragraph (a) of subsection (1) of section
2426    760.29, Florida Statutes, is amended to read:
2427          760.29 Exemptions.--
2428          (1)(a) Nothing in ss. 760.23 and 760.25 applies to:
2429          1. Any single-family house sold or rented by its owner,
2430    provided such private individual owner does not own more than
2431    three single-family houses at any one time. In the case of the
2432    sale of a single-family house by a private individual owner who
2433    does not reside in such house at the time of the sale or who was
2434    not the most recent resident of the house prior to the sale, the
2435    exemption granted by this paragraph applies only with respect to
2436    one sale within any 24-month period. In addition, the bona fide
2437    private individual owner shall not own any interest in, nor
2438    shall there be owned or reserved on his or her behalf, under any
2439    express or voluntary agreement, title to, or any right to all or
2440    a portion of the proceeds from the sale or rental of, more than
2441    three single-family houses at any one time. The sale or rental
2442    of any single-family house shall be excepted from the
2443    application of ss. 760.20-760.37 only if the house is sold or
2444    rented:
2445          a. Without the use in any manner of the sales or rental
2446    facilities or the sales or rental services of any real estate
2447    licenseebroker, agent, or salespersonor such facilities or
2448    services of any person in the business of selling or renting
2449    dwellings, or of any employee or agent of any such licensee
2450    broker, agent, salesperson,or person; and
2451          b. Without the publication, posting, or mailing, after
2452    notice, of any advertisement or written notice in violation of
2453    s. 760.23(3).
2454         
2455          Nothing in this provision prohibits the use of attorneys, escrow
2456    agents, abstractors, title companies, and other such
2457    professional assistance as is necessary to perfect or transfer
2458    the title.
2459          2. Rooms or units in dwellings containing living quarters
2460    occupied or intended to be occupied by no more than four
2461    families living independently of each other, if the owner
2462    actually maintains and occupies one of such living quarters as
2463    his or her residence.
2464          Section 41. This act shall take effect July 1, 2003.
2465