HB 1459

CS

CHAMBER ACTION

1	The Civil Justice Committee recommends the following:
2
3	Council/Committee Substitute
4	Remove the entire bill and insert:
5	A bill to be entitled
6	An act relating to liens on commercial real estate;
7	creating part III of ch. 475, F.S., the "Commercial Real
8	Estate Sales Commission Lien Act"; providing definitions;
9	specifying conditions under which a broker is entitled to a
10	lien upon the owner's net proceeds from the disposition of
11	commercial real estate for any commission earned by the
12	broker under a brokerage agreement; providing that the lien
13	cannot be assigned, enforced, or waived by anyone other
14	than the broker; requiring disclosure; providing for the
15	contents of the commission notice and delivery to certain
16	parties; providing a form for the commission notice;
17	providing that a lien may not be enforced if the notice is
18	not delivered to certain parties; providing that the
19	commission notice may be recorded; providing for expiration
20	and extension under certain conditions; providing for
21	release of the commission notice under certain conditions;
22	providing the duties of the closing agent; requiring the
23	closing agent to reserve an owner's proceeds under certain
24	conditions; providing for the release of proceeds under
25	certain conditions; requiring deduction of certain costs
26	from the proceeds; providing for interpleader or other
27	legal proceedings sought by a closing agent to adjudicate
28	certain rights; providing for the deposit of reserved
29	proceeds in a court registry; providing for the discharge
30	of the closing agent from further liability; providing for
31	a civil action if a dispute arises concerning the proceeds;
32	providing that the prevailing party may recover certain
33	fees and costs incurred in a civil action; establishing the
34	priority of a recorded commission notice; providing for the
35	service of notice; providing that a buyer's broker is not
36	entitled to a lien; providing certain conditions under
37	which a buyer's broker may seek payment of a commission;
38	creating part IV of ch. 475, F.S., the "Commercial Real
39	Estate Leasing Commission Lien Act"; providing definitions;
40	providing conditions under which a broker may place a lien
41	upon an owner's interest in commercial real estate for any
42	commission earned under a brokerage agreement with respect
43	to a lease of commercial real estate; providing that the
44	lien cannot be assigned, enforced, or waived by anyone
45	other than the broker; requiring disclosure; providing for
46	the contents of the lien notice; providing a form for the
47	lien notice; providing that the lien notice may be
48	recorded; providing that a lien may not be enforced if the
49	broker fails to record the notice; providing for
50	effectiveness of a recorded lien notice; providing for
51	release of the lien notice under certain conditions;
52	providing for expiration and extension under certain
53	conditions; providing for foreclosure of a recorded lien
54	under certain conditions; providing a form; providing for a
55	civil action if a dispute arises concerning the proceeds;
56	providing that the prevailing party may recover certain
57	fees and costs incurred in a civil action; providing
58	procedures to transfer a lien to a security; providing that
59	the clerk of court may collect a service charge; amending
60	s. 475.42, F.S.; providing that a broker may place a lien
61	when allowed by law; providing an effective date.
62
63	Be it Enacted by the Legislature of the State of Florida:
64
65	Section 1.  Part III of chapter 475, Florida Statutes,
66	consisting of sections 475.700, 475.701, 475.703, 475.705,
67	475.707, 475.709, 475.711, 475.713, 475.715, 475.717, and
68	475.719, is created to read:
69	475.700  Popular name.--Sections 475.700-475.719 may be
70	cited as the "Commercial Real Estate Sales Commission Lien Act."
71	475.701  Definitions.--As used in this part:
72	(1)  "Broker" has the same meaning as in s. 475.01.
73	(2)  "Brokerage agreement" means a written contract entered
74	into on or after the effective date of this act between an owner
75	of commercial real estate and a broker that obligates the owner
76	to pay a commission to the broker for licensed services provided
77	by the broker relating to the sale or disposition of the
78	commercial real estate as specified in the contract.
79	(3)  "Closing" means the delivery, exchange, and release of
80	documents and funds for the completion of a transaction for the
81	disposition of commercial real estate.
82	(4)  "Closing agent" means the person who receives
83	documents and funds for recording and disbursement in closing a
84	transaction for the disposition of commercial real estate.
85	(5)  "Commercial real estate" means a fee simple interest
86	or other possessory estate in real property, except an interest
87	in real property that is:
88	(a)  Improved with one single-family residential unit or
89	one multifamily structure containing one to four residential
90	units;
91	(b)  Unimproved and the maximum permitted development is
92	one to four residential units under any restrictive covenants,
93	zoning regulations, or comprehensive plan applicable to that
94	real property; or
95	(c)  Improved with single-family residential units such as
96	condominiums, townhouses, timeshares, mobile homes, or houses in
97	a subdivision that may be legally sold, leased, or otherwise
98	conveyed on a unit-by-unit basis, regardless of whether these
99	units may be a part of a larger building or parcel containing
100	more than four residential units.
101	(6)  "Commission" means any fee or other compensation that
102	an owner agrees to pay a broker for licensed services as
103	specified in a brokerage agreement.
104	(7)  "Commission notice" means the written notice claiming
105	a commission made by a broker under s. 475.705.
106	(8)  "Days" means calendar days, but if a period would end
107	on a day other than a business day, then the last day of that
108	period shall instead be the next business day.
109	(9)  "Disposition" means a voluntary conveyance or transfer
110	of the title to or other ownership interest in any commercial
111	real estate specified in a brokerage agreement. A disposition
112	does not include a transfer pursuant to a foreclosure sale and
113	does not include a lease.
114	(10)  "Disputed reserved proceeds" means the portion of the
115	owner's net proceeds reserved by a closing agent under s.
116	475.709 that the owner disputes the broker's right to receive
117	such reserved proceeds under s. 475.709(5).
118	(11)  "Owner" means a person that is vested with fee simple
119	title or a possessory estate in commercial real estate.
120	(12)  "Owner's net proceeds" means the gross sales proceeds
121	that the owner is entitled to receive from the disposition of
122	any commercial real estate specified in a brokerage agreement,
123	less the following:
124	(a)  Any money that is required to pay any encumbrance,
125	claim, or lien that has priority over the recorded commission
126	notice as provided in s. 475.715 other than an encumbrance,
127	claim, or lien that the buyer of the commercial real estate
128	authorizes to remain after the disposition.
129	(b)  Any costs incurred by the owner to close the
130	disposition, including, but not limited to, real estate transfer
131	tax, title insurance premiums, ad valorem taxes and assessments,
132	and escrow fees payable by the owner pursuant to an agreement
133	with the buyer.
134	(13)  "Real property" means one or more parcels or tracts
135	of land located in this state, including any appurtenances and
136	improvements.
137	475.703  Broker's lien for sales commission.--
138	(1)  A broker has a lien upon the owner's net proceeds from
139	the disposition of commercial real estate for any commission
140	earned by the broker with respect to that disposition pursuant
141	to a brokerage agreement. The lien upon the owner's net proceeds
142	pursuant to this part for a broker's commission is a lien upon
143	personal property, attaches to the owner's net proceeds only,
144	and does not attach to any interest in real property.
145	(2)  For purposes of this part, a commission is earned on
146	the earlier of the date that:
147	(a)  An event occurs under the brokerage agreement that
148	defines when the commission is earned; or
149	(b)  The owner enters into a contract for the disposition
150	of all or part of the commercial real estate specified in the
151	brokerage agreement, provided that a commission would be payable
152	to the broker pursuant to the brokerage agreement if the
153	disposition occurs under that contract.
154	(3)  For the purposes of this part, a commission is payable
155	at the time provided in the brokerage agreement. If payment of
156	the commission is conditioned on the occurrence of an event and
157	that event does not occur, a broker may not enforce a lien for
158	that commission under this part.
159	(4)  A broker's lien for commission arising under this
160	part:
161	(a)  Belongs to the broker named in the brokerage agreement
162	and not to an employee or independent contractor of the broker.
163	(b)  Cannot be assigned voluntarily or by operation of law
164	and may not be enforced by a person other than the broker.
165	(c)  Cannot be waived before the commission is earned.
166	(d)  Cannot be waived by any person other than the broker,
167	regardless of whether that person may execute and bind the
168	broker to a brokerage agreement.
169	(5)  A broker shall disclose to the owner at or before the
170	time the owner executes the brokerage agreement that this part
171	creates lien rights for a commission earned by the broker that
172	are not waivable before the commission is earned by the broker.
173	A broker may not enforce a lien under this part for a commission
174	earned under a brokerage agreement for which the disclosure
175	required by this subsection was not made. A disclosure in
176	substantially the following form shall be sufficient: "The
177	Florida Commercial Real Estate Sales Commission Lien Act
178	provides that when a broker has earned a commission by
179	performing licensed services under a brokerage agreement with
180	you, the broker may claim a lien against your net sales proceeds
181	for the broker's commission. The broker's lien rights under the
182	act cannot be waived before the commission is earned."
183	475.705  Contents of commission notice; delivery to owner
184	and closing agent.--
185	(1)  A commission notice made by a broker with respect to a
186	commission claimed under this part shall be in writing, shall be
187	signed and sworn to or affirmed by the broker under penalty of
188	perjury before a notary public, and shall include the following:
189	(a)  The name of the owner of the commercial real estate
190	who is obligated to pay the claimed commission.
191	(b)  The legal description of the commercial real estate.
192	(c)  The name, mailing address, telephone number, and
193	license number of the broker.
194	(d)  The effective date of the brokerage agreement.
195	(e)  The amount of the commission claimed by the broker,
196	which may be stated in a dollar amount or may be stated in the
197	form of a formula determining the amount, such as a percentage
198	of the sales price.
199	(f)  A statement under penalty of perjury that the broker
200	has read the commission notice, knows its contents, believes the
201	same to be true and correct, and makes the commission claim
202	pursuant to the brokerage agreement described in the notice.
203	(g)  A statement that the commission notice or a copy
204	thereof has been delivered to the owner and that the commission
205	notice may be recorded in the public records of the county or
206	counties where the commercial real estate is located.
207	(h)  A statement that this part provides that if the owner
208	disputes the claimed commission the owner shall notify the
209	closing agent of such dispute not later than 5 days after the
210	closing, or the owner will be deemed to have confirmed the
211	commission and this part will require the closing agent to pay
212	the commission to the broker from the owner's net proceeds from
213	the disposition of the commercial real estate.
214	(2)  A commission notice in substantially the following
215	form shall be sufficient for purposes of subsection (1):
216
217	BROKER'S COMMISSION NOTICE UNDER
218	FLORIDA COMMERCIAL REAL ESTATE SALES COMMISSION LIEN ACT
219
220	Notice is hereby given pursuant to the Florida Commercial Real
221	Estate Sales Commission Lien Act, part III of chapter 475,
222	Florida Statutes (the "act"), that the undersigned real estate
223	broker is entitled to receive a sales commission in the amount
224	set forth below from the owner named below pursuant to the terms
225	of a written brokerage commission agreement regarding the
226	commercial real estate described below, and the undersigned
227	broker claims a lien under the act against the owner's net
228	proceeds from the disposition of the commercial real estate. The
229	act and this commission notice do not create a lien against the
230	commercial real estate itself, but only against the owner's net
231	proceeds.
232
233	1.  Name of the owner who is obligated to pay the commission:
234	_____________________________________________
235	2.  Legal description of the commercial real estate:
236	_____________________________________________
237	3.  Name, mailing address, telephone number, and Florida broker
238	license number of the undersigned broker:
239	______________________________
240	______________________________
241	______________________________
242	4.  Effective date of the written brokerage commission agreement
243	between the owner and the broker under which the commission is
244	or will be payable: ________, ____
245	5.  Amount of commission claimed by the undersigned broker:
246	$______________, or
247	______________ percent of sales price, or
248	[specify other formula for determination of commission amount]:
249	_____________________________________________.
250	6.  The undersigned broker, under penalty of perjury, hereby
251	swears or affirms that the undersigned broker has read this
252	commission notice, knows its contents and believes the same to
253	be true and correct, and that the undersigned broker is making
254	this commission claim pursuant to the written brokerage
255	commission agreement described in this commission notice.
256	7.  The undersigned broker confirms that this commission notice
257	or a copy thereof has been delivered to the owner.
258
259	Signed: ________(broker)___________
260
261	Signed and sworn to or affirmed under penalty of perjury before
262	me, a notary public, this _____ day of _______, ____, by
263	___________
264
265	Signed: ________(notary public)____
266	WARNING TO OWNER: The act provides that if you dispute the
267	commission claimed in this commission notice, you must notify
268	the closing agent of the dispute no later than 5 days after the
269	closing. If you fail to notify the closing agent before that
270	date that you dispute the commission, you will be deemed to have
271	confirmed the commission and the act will require the closing
272	agent to pay the commission to the broker from your net proceeds
273	from the disposition of the commercial real estate.
274
275	This commission notice may be recorded in the public records of
276	the county or counties where the commercial real estate is
277	located.
278	(3)  Subject to subsection (4), if a broker wishes to
279	enforce a lien for a commission under this part, the broker
280	shall, within 30 days after a commission is earned by the broker
281	pursuant to s. 475.703(2) and at least 1 day before the closing,
282	deliver a copy of the commission notice to:
283	(a)  The owner of the commercial real estate specified in
284	the brokerage agreement.
285	(b)  The closing agent designated to close the transaction
286	for the disposition of the commercial real estate, if the broker
287	then knows the identity of the closing agent. If the identity of
288	the closing agent thereafter becomes known to the broker, then
289	the broker shall deliver a copy of the commission notice to the
290	closing agent within 3 days after the broker acquires such
291	knowledge and at least 1 day before the closing.
292	(4)  Except as provided in this subsection, a broker who
293	fails to deliver a copy of a commission notice as required under
294	subsection (3) within the period specified therein may not
295	enforce a lien for the commission under this part. If a broker
296	fails to deliver a copy of the commission notice within said
297	period solely because the owner entered into a contract for the
298	disposition of the commercial real estate without the knowledge
299	of the broker, the broker may enforce a lien for the commission
300	under this part if:
301	(a)  The copy of the commission notice is delivered to the
302	owner and the closing agent before the closing agent disburses
303	the owner's net proceeds to the owner.
304	(b)  The broker executes and delivers to the closing agent
305	a sworn affidavit stating that the copy of the commission notice
306	was not delivered within the time period specified in subsection
307	(3) solely because the owner entered into a contract for the
308	disposition of the commercial real estate without the knowledge
309	of the broker.
310
311	Notwithstanding the provisions of this subsection, a broker who
312	fails to deliver a copy of a commission notice to the owner and
313	the closing agent before the disbursement of the owner's net
314	proceeds may not enforce a lien for the commission under this
315	part, and the delivery of a copy of a commission notice after
316	such disbursement is ineffective under this part.
317	475.707  Recording commission notice; effectiveness.--
318	(1)  After a broker delivers the copies of a commission
319	notice as provided in s. 475.705, the broker may record the
320	commission notice in the public records maintained by the clerk
321	of court in the county or counties in which the commercial real
322	estate is located.
323	(a)  Subject to the limitation in paragraph (b), the
324	broker's lien created by this part against the owner's net
325	proceeds is perfected by such recording of the commission notice
326	and takes priority pursuant to this part as of the date of the
327	recording of the commission notice. The priority of the lien
328	does not relate back to the date of the brokerage agreement.
329	(b)  The recording of the commission notice shall not
330	constitute constructive notice to a closing agent unless the
331	commission notice has been of record for at least 60 days.
332	(2)  A recorded commission notice is effective under this
333	part only with respect to dispositions made by the owner named
334	in the commission notice and after the recordation of a deed
335	from the owner conveying the commercial real estate specified in
336	the commission notice to a bona fide purchaser for value the
337	commission notice is ineffective with respect to any subsequent
338	dispositions of that commercial real estate.
339	(3)  A commission notice recorded under this part expires 1
340	year after the date of recording, unless the brokerage agreement
341	remains effective after the expiration date of the commission
342	notice and the broker records an extension notice in the same
343	public records within the last 60 days before such expiration
344	date. An extension notice shall refer to the recording
345	information of the original commission notice, shall state that
346	the brokerage agreement remains effective, and shall include the
347	information and be executed in the manner as required by s.
348	475.705(1) for the original commission notice. A timely recorded
349	extension notice shall extend the expiration date of the
350	original recorded commission notice by 1 additional year.
351	Successive extension notices may be recorded for so long as the
352	brokerage agreement remains effective between the broker and the
353	owner. Within 10 days after recording an extension notice the
354	broker shall deliver a copy thereof to the owner.
355	(4)  The delivery or recording of a commission notice or
356	the enforcement of a commission claim by a broker under this
357	part does not relieve the owner from the owner's obligation to
358	close a disposition transaction for any commercial real estate.
359	(5)  Whenever a commission notice is recorded and a
360	condition or event occurs or fails to occur that would preclude
361	the broker from receiving the claimed commission under the terms
362	of the brokerage agreement, including the filing of a commission
363	notice in a manner that does not comply with this part, the
364	broker shall, within 7 days following demand by the owner,
365	record a written release of the commission notice in the public
366	records of the county where the commission notice was recorded.
367	(6)  If a broker records a commission notice pursuant to
368	this section and the claimed commission is paid or the
369	commission notice is otherwise discharged or satisfied pursuant
370	to this part, the broker shall, within 7 days after the
371	commission is paid or the commission notice is otherwise
372	discharged or satisfied, record a written release of the
373	commission notice in the public records of the county where the
374	commission notice was recorded.
375	475.709  Duties of closing agent; reservation of owner's
376	net proceeds.--
377	(1)(a)  The closing agent shall reserve from the owner's
378	net proceeds an amount equal to the commission claimed by the
379	broker in the commission notice if, before the closing agent
380	disburses the owner's net proceeds from the closing of a
381	disposition of commercial real estate:
382	1.  A commission notice pertaining to the commercial real
383	estate is delivered to the closing agent in accordance with s.
384	475.705;
385	2.  A commission notice pertaining to the commercial real
386	estate has been recorded for at least 60 days pursuant to s.
387	475.707 and has not expired or been released or canceled as
388	provided in this part; or
389	3.  The closing agent has actual knowledge of a commission
390	notice pertaining to the commercial real estate that has been
391	recorded pursuant to s. 475.707 and has not expired or been
392	released or canceled as provided in this part.
393	(b)  If the owner's net proceeds are insufficient to pay
394	the full amount of the claimed commission, the closing agent
395	shall reserve the entire amount of the owner's net proceeds. The
396	closing agent shall release the reserved proceeds only in
397	accordance with the provisions of this part.
398	(2)(a)  The closing agent designated to close a transaction
399	for the disposition of commercial real estate may require the
400	owner of the commercial real estate to deliver a sworn affidavit
401	identifying the commercial real estate and disclosing to the
402	closing agent:
403	1.  Whether the owner is a party to any brokerage agreement
404	under which any broker or brokers may have a right to claim a
405	commission from the disposition of the commercial real estate.
406	2.  The name, mailing address, and telephone number of any
407	brokers who may have a right to claim a commission, if known to
408	the owner.
409	3.  The amount of any and all commissions that may be
410	claimed under any brokerage agreement disclosed in the owner's
411	affidavit, to the best of the owner's knowledge and belief.
412	4.  Whether the owner confirms or disputes the amount of
413	any commission claimed from the disposition of the commercial
414	real estate as disclosed in the owner's affidavit.
415	(b)  If the closing agent receives an affidavit from the
416	owner under this subsection disclosing that any commission may
417	be claimed from the disposition of the commercial real estate,
418	regardless of whether the owner confirms or disputes the
419	commission, the closing agent shall reserve from the owner's net
420	proceeds an amount equal to the total commission amount
421	disclosed by the owner in the affidavit. Upon request by a
422	broker who has a brokerage agreement with the owner covering the
423	commercial real estate identified in the owner's affidavit, the
424	closing agent shall deliver a copy of the affidavit to the
425	broker. If the owner's net proceeds are insufficient to pay the
426	full amount of the commission so disclosed, the closing agent
427	shall reserve the entire amount of the owner's net proceeds. If
428	the owner's affidavit discloses a commission amount that is
429	different from the commission amount required to be reserved
430	under subsection (1), the closing agent shall reserve the
431	greater of the two commission amounts. The closing agent shall
432	release the reserved proceeds only in accordance with the
433	provisions of this part.
434	(3)  If the provisions of subsection (1) do not require the
435	closing agent to reserve against the owner's net proceeds on
436	account of a commission notice pertaining to the commercial real
437	estate, and if the closing agent receives an owner's affidavit
438	pursuant to subsection (2) stating that the owner is not a party
439	to any brokerage agreement under which any commission may be
440	claimed from the disposition of the commercial real estate, the
441	closing agent has no duty under this part to reserve any money
442	or property for a commission from the owner's net proceeds from
443	the disposition of the commercial real estate.
444	(4)  If the closing agent determines that the owner's net
445	proceeds from a disposition of commercial real estate are
446	insufficient to pay the full amount of the commission claimed in
447	a commission notice or disclosed in an owner's affidavit, the
448	closing agent shall, within 3 days after making that
449	determination but no later than the closing of the disposition,
450	notify the owner and the broker of the determination. The
451	closing agent's determination that the owner's net proceeds are
452	insufficient under this part, however, does not relieve the
453	owner from the owner's contractual obligations under the
454	brokerage agreement to pay the full commission owing to the
455	broker.
456	(5)  If the owner confirms that a commission is payable to
457	the broker, at the closing of the disposition of the commercial
458	real estate the closing agent shall release to the broker the
459	confirmed amount of the commission from the reserved proceeds. A
460	settlement statement executed by the owner and showing the
461	payment of a commission to the broker is confirmation by the
462	owner of the commission amount shown on the settlement
463	statement. If the owner disputes the broker's right to receive
464	all or any portion of the claimed commission, the closing agent
465	shall release to the broker from the reserved proceeds only the
466	undisputed portion of the commission, if any. Until the rights
467	of the owner and the broker with respect to the disputed
468	reserved proceeds are determined pursuant to s. 475.711 or s.
469	475.713 or the owner and the broker otherwise agree in writing,
470	the closing agent shall not release the disputed reserved
471	proceeds to any person other than to deposit the same in the
472	registry of the court having jurisdiction of the dispute.
473	(6)  The commission claimed in the commission notice shall
474	be deemed confirmed by the owner and the closing agent shall
475	release the reserved proceeds to the broker, if the closing
476	agent is required pursuant to subsection (1) to reserve any or
477	all of the owner's net proceeds, and if:
478	(a)  Five days have passed after the closing.
479	(b)  The owner has neither confirmed nor disputed the
480	claimed commission to the closing agent.
481	(c)  The closing agent receives reasonably satisfactory
482	evidence that the broker delivered a copy of the commission
483	notice to the owner in accordance with s. 475.705.
484	(7)  If the owner's net proceeds consist in whole or in
485	part of a purchase-money note, and if the money portion of the
486	owner's net proceeds is insufficient to pay the full amount of
487	the commission claimed, the broker's lien under this part for
488	the portion of the commission not paid from the money proceeds
489	shall attach to the purchase-money note and any security
490	therefor, and the closing agent shall reserve and release the
491	purchase-money note in accordance with this part in the same
492	manner as the money portion of the reserved proceeds. If the
493	owner and the broker are unable to agree within 5 days after the
494	closing regarding the closing agent's release of the purchase-
495	money note, the closing agent shall interplead the purchase-
496	money note along with any money reserved proceeds in accordance
497	with s. 475.711.
498	(8)  If the disposition of the commercial real estate is
499	part of a like-kind exchange by the owner which is deferred from
500	federal income tax under section 1031 of the Internal Revenue
501	Code of 1986, as amended, and if all of the owner's net proceeds
502	in excess of undisputed commissions shall be delivered to a
503	third party in order to qualify the disposition for such tax
504	deferral treatment, the owner may substitute other cash, a
505	surety bond, an unconditional letter of credit, or other liquid
506	security acceptable to the broker in lieu of any disputed
507	reserved proceeds held by the closing agent under this section
508	or deposited in the court registry in accordance with s.
509	475.711.
510	(9)  Upon request of the closing agent or the owner, any
511	broker who has recorded a commission notice under s. 475.707
512	shall submit a satisfaction or release of the commission notice
513	in recordable form to the closing agent to be held in escrow
514	pending the closing and the closing agent's release to the
515	broker of the portion of the owner's net proceeds reserved by
516	the closing agent under this section. The closing agent is
517	authorized to deduct from the reserved proceeds payable to the
518	broker the cost of recording the satisfaction or release of the
519	commission notice.
520	(10)  Neither the closing agent's requirement for an
521	owner's affidavit pursuant to subsection (2), nor the closing
522	agent's reservation of any portion of an owner's net proceeds
523	pursuant to subsections (1) or (2), shall relieve the owner of
524	the owner's obligation to close the transaction for the
525	disposition of the commercial real estate, including, without
526	limitation, any obligation of the owner to the buyer under the
527	purchase and sale contract to discharge mortgages, liens, or
528	encumbrances against the commercial real estate that were
529	recorded after the commission notice and therefore are not
530	subtracted from gross sales proceeds when computing the owner's
531	net proceeds under s. 475.719.
532	(11)  A closing agent is not liable to the owner, the
533	broker, or any other person in any civil action for any action
534	taken by the closing agent to comply with the provisions of this
535	part.
536	(12)  No provision of this part shall require a closing
537	agent to serve involuntarily more than 5 days after a closing as
538	an escrow agent or stakeholder for any monies or other property
539	that are disputed by the owner and the broker under the
540	provisions of this part.
541	475.711  Interpleader or other proceedings; deposit of
542	reserved proceeds in court registry; discharge of closing agent
543	from further liability.--
544	(1)  The closing agent shall, by interpleader action or
545	other legal proceeding, seek adjudication of the rights of the
546	parties with respect to disputed reserved proceeds by the county
547	court or circuit court, whichever may have jurisdiction of
548	controversies in the amount of the disputed reserved proceeds,
549	in a county where all or a portion of the commercial real estate
550	is located if, after the closing of a transaction for the
551	disposition of the commercial real estate:
552	(a)  The closing agent has reserved all or a portion of the
553	owner's net proceeds pursuant to s. 475.709 and the owner
554	disputes the release to the broker of all or any portion of the
555	reserved proceeds.
556	(b)  The owner and the broker have not agreed in writing,
557	within 5 days after the closing, regarding the closing agent's
558	release of the disputed reserved proceeds.
559	(c)  Neither the owner nor the broker have commenced a
560	civil action to determine the rights of the parties with respect
561	to the disputed reserved proceeds.
562	(2)  Unless otherwise agreed to by the owner and the broker
563	in writing, the closing agent shall deposit the net amount of
564	disputed reserved proceeds in the registry of the court having
565	jurisdiction of any legal action or proceeding to determine the
566	rights of the parties in the disputed reserved proceeds, whether
567	commenced by the closing agent under subsection (1) or commenced
568	by the owner or the broker under s. 475.713 or otherwise. The
569	closing agent shall determine the net amount of disputed
570	reserved proceeds deposited in the court registry by deducting
571	from the disputed reserved proceeds:
572	(a)  Any costs incurred by the closing agent to commence
573	such action or proceeding, or to appear in any such action or
574	proceeding commenced by the owner or the broker, including
575	reasonable attorney's fees.
576	(b)  The costs of recording the affidavit described in
577	subsection (3) if any commission notice has been recorded.
578	(c)  The service charges of the clerk of court under s.
579	28.24 for receiving the net amount of such disputed reserved
580	proceeds into the registry of the court.
581	(3)  If a commission notice has been recorded in the public
582	records of the county or counties where the commercial real
583	estate is located, upon depositing the net disputed reserved
584	proceeds with the clerk of court pursuant to subsection (2), the
585	closing agent shall execute and record an affidavit referring to
586	the recorded commission notice and stating that the net disputed
587	reserved proceeds have been so deposited in accordance with this
588	part. The recording of the affidavit shall operate to release
589	the recorded commission notice.
590	(4)  If a closing agent deposits the net disputed reserved
591	proceeds with the clerk of court pursuant to subsection (2), the
592	closing agent is discharged from any further liability or
593	responsibility concerning the disputed reserved proceeds.
594	475.713  Civil action concerning commission; order to show
595	cause; hearing; release of proceeds; award of costs and
596	attorney's fees.--
597	(1)  If a commission notice claiming a commission is
598	delivered to an owner pursuant to s. 475.705 and the owner
599	disputes the claimed commission, the owner or the broker may
600	file a civil action concerning the commission claim in the
601	county court or circuit court, whichever has jurisdiction of
602	controversies in the amount of the claimed commission, of the
603	county where the commercial real estate or a portion of the
604	commercial real estate is located.
605	(2)  In a civil action by the owner, at the time the
606	summons is issued or at any time before the complaint is
607	answered by the broker, the owner may apply to the court for an
608	order directing the broker to appear before the court at a time
609	not earlier than 7 days or later than 15 days after the date of
610	service of the motion and order on the broker to show cause why
611	the commission claim should not be dismissed. The motion must
612	state the grounds upon which relief is sought and must be
613	supported by the affidavit of the owner setting forth a concise
614	statement of the facts upon which the motion is based. The order
615	to show cause shall clearly state that if the broker fails to
616	appear at the time and place specified in the order, the
617	broker's claim of lien against the owner's net proceeds under
618	this part shall be released, with prejudice, and the broker
619	shall be ordered to pay the costs incurred by the owner and the
620	closing agent, including reasonable attorney's fees.
621	(3)  The court shall issue an order releasing the broker's
622	claim of lien against the owner's net proceeds from such
623	disposition, discharging any commission notice that may be have
624	been recorded, ordering the release to the owner of the disputed
625	reserved proceeds, and awarding costs and reasonable attorney's
626	fees to the owner to be paid by the broker if, following a
627	hearing, the court determines that the owner is not a party to a
628	brokerage agreement that will result in the owner being
629	obligated to pay the broker the claimed commission or any
630	portion thereof with respect to the disposition of the
631	commercial real estate identified in the commission notice. If
632	the court determines that the owner is a party to a brokerage
633	agreement that will result in the owner being obligated to pay
634	the broker the claimed commission or any portion thereof with
635	respect to the disposition of the commercial real estate
636	identified in the commission notice, the court shall issue an
637	order so stating, ordering the release to the broker of the
638	disputed reserved proceeds or such portion thereof to which the
639	court determines that the broker is entitled, and awarding costs
640	and reasonable attorney's fees to the broker to be paid by the
641	owner. Such orders are final judgments.
642	(4)  A certified copy of any order issued by the court
643	pursuant to subsection (3) discharging a recorded commission
644	notice shall be recorded at the expense of the broker in the
645	public records where the commission notice was recorded, and
646	such order shall operate as a cancellation of the recorded
647	commission notice.
648	(5)(a)  In a civil action commenced by the owner or the
649	broker under this section or in an interpleader action or other
650	proceeding commenced by the closing agent under s. 475.711, the
651	owner or the broker that is not the prevailing party shall be
652	required to pay:
653	1.  The costs and reasonable attorney's fees incurred in
654	the action by the prevailing party.
655	2.  The costs and reasonable attorney's fees incurred in
656	the action by the closing agent.
657	3.  The amount of any costs, recording charges, and service
658	charges of the clerk of court that were deducted from the
659	disputed reserved proceeds under s. 475.711(2) in determining
660	the net amount thereof deposited into the registry of the court.
661	(b)  If the court determines that neither the owner nor the
662	broker is the prevailing party, the amounts set forth in
663	subparagraphs 1.and 2. of this subsection shall be divided
664	equally between and paid by the owner and the broker.
665	(6)  Proceedings conducted pursuant to this section shall
666	not affect rights and remedies otherwise available to the owner
667	or the broker under other applicable law.
668	475.715  Priority of recorded commission notice.--All
669	statutory liens, consensual liens, mortgages, deeds of trust,
670	assignments of rents, and other encumbrances, including all
671	advances or charges made or accruing thereunder, whether
672	voluntary or obligatory, and all modifications, extensions,
673	renewals, and replacements thereof, recorded prior to the
674	recording of a commission notice pursuant to the provisions of
675	s. 475.707, have priority over the commission notice, and the
676	amount required to discharge such prior recorded liens shall be
677	subtracted from gross sales proceeds in computing the owner's
678	net proceeds unless the buyer permits the same to remain a lien
679	against the title to the commercial real estate. A prior
680	recorded lien includes, without limitation, a valid construction
681	lien claim that is recorded after the recording of the broker's
682	commission notice but which relates back to a notice of
683	commencement recorded under s. 713.13 prior to the recording
684	date of the broker's commission notice.
685	475.717  Service of notice.--Notices to be delivered to a
686	party pursuant to this part other than service of process as
687	required in civil actions shall be by service of process, by
688	registered or certified mail with return receipt requested, or
689	by personal or electronic delivery and obtaining evidence of
690	delivery in the form of a receipt or other paper or electronic
691	acknowledgment by the party to whom the notice is delivered.
692	Delivery is effective at the time of personal service, personal
693	or electronic delivery, or 3 days following deposit in the mail
694	as required by this section. Notice to a broker or owner may be
695	given to the address of the broker or owner that is contained in
696	the brokerage agreement or such other address as is contained in
697	a written notice from the broker or owner to the party giving
698	the notice. If no address is provided in the brokerage
699	agreement, the notice to the broker may be given to the broker's
700	address contained in the commission notice. Notice to a closing
701	agent shall be addressed to the individual responsible for the
702	closing if the person sending the notice knows that individual's
703	name.
704	475.719  Buyer's broker.--As used in this section, the term
705	"buyer's broker" means a broker that is entitled to receive
706	payment from the buyer of commercial real estate of any fee or
707	other compensation for licensed services, as specified in a
708	written contract made between the buyer and the broker on or
709	after the effective date of this act relating to the buyer's
710	purchase of the commercial real estate.
711	(1)  A written contract between a buyer and a buyer's
712	broker for the payment by the buyer of any fee or other
713	compensation to the buyer's broker for licensed services
714	relating to the sale or disposition of commercial real estate to
715	the buyer is not a brokerage agreement with the owner under this
716	part, and the buyer's broker is not entitled under this part to
717	record any commission notice, to claim any lien against
718	commercial real estate, or to claim any lien against the owner's
719	net proceeds from the sale or disposition of commercial real
720	estate.
721	(2)  If an owner enters into a written contract with a
722	buyer for the sale or disposition of any commercial real estate
723	that will entitle the buyer's broker to receive a fee or other
724	compensation from the buyer under the terms of the buyer's
725	broker's written contract with the buyer, the buyer's broker may
726	give notice of the buyer's broker's right to receive such
727	payment to the closing agent, the owner, the buyer, or any other
728	party to the sale or disposition or the financing thereof,
729	provided that such notice may be given without violating any
730	confidentiality provisions contained in either such written
731	contract.
732	(3)  No such notice given by the buyer's broker pursuant to
733	subsection (2) shall constitute a tortious interference with the
734	sale or disposition or financing of the commercial real estate,
735	except this section shall not affect the rights and remedies
736	otherwise available to the owner, the buyer, or the buyer's
737	broker under other applicable law.
738	Section 2.  Part IV of chapter 475, Florida Statutes,
739	consisting of sections 475.800, 475.801, 475.803, 475.805,
740	475.807, 475.809, and 475.811, is created to read:
741	475.800  Short title.--Sections 475.800-475.811 may be
742	cited as the "Commercial Real Estate Leasing Commission Lien
743	Act."
744	475.801  Definitions.--As used in this part:
745	(1)  "Automatic renewal commission" means a renewal
746	commission for which the brokerage agreement does not expressly
747	require the broker to perform any additional services in order
748	to receive the renewal commission.
749	(2)  "Broker" has the same meaning as in s. 475.01.
750	(3)  "Brokerage agreement" means a written contract,
751	entered into on or after the effective date of this act, between
752	an owner of commercial real estate and a broker that obligates
753	the owner to pay a commission to the broker for licensed
754	services provided by the broker relating to the leasing of the
755	commercial real estate as specified in the contract.
756	(4)  "Commercial real estate" means a fee simple interest
757	or other possessory estate in real property, except an interest
758	in real property that is:
759	(a)  Improved with one single-family residential unit or
760	one multifamily structure containing one to four residential
761	units;
762	(b)  Unimproved and the maximum permitted development is
763	one to four residential units under any restrictive covenants,
764	zoning regulations, or comprehensive plan applicable to that
765	real property; or
766	(c)  Improved with single-family residential units such as
767	condominiums, townhouses, timeshares, mobile homes, or houses in
768	a subdivision that may be legally sold, leased, or otherwise
769	conveyed on a unit-by-unit basis, regardless of whether these
770	units may be a part of a larger building or parcel containing
771	more than four residential units.
772	(5)  "Commission" means any fee or other compensation that
773	an owner agrees to pay a broker for licensed services as
774	specified in a brokerage agreement.
775	(6)  "Days" means calendar days, but if a period would end
776	on a day other than a business day, the last day of that period
777	shall instead be the next business day.
778	(7)  "Lease" means a written agreement creating a
779	relationship of landlord and tenant with respect to commercial
780	real estate, such that the tenant acquires from the landlord the
781	right to possess the commercial real estate for a specified
782	period of time.
783	(8)  "Lien notice" means the written notice of lien made by
784	a broker claiming a commission under s. 745.805.
785	(9)  "Owner" means a person that is vested with fee simple
786	title or a possessory estate, including a leasehold, in
787	commercial real estate that is the subject of a lease. For
788	purposes of this part, the owner obligated to pay a commission
789	under a brokerage agreement may be a landlord or a tenant.
790	(10)  "Real property" means one or more parcels or tracts
791	of land located in this state, including any appurtenances and
792	improvements.
793	(11)  "Renewal commission" means an additional commission
794	that may become payable to a broker under a brokerage agreement
795	if a lease subject to that brokerage agreement is later renewed
796	or is later modified to expand the leased premises or extend the
797	lease term.
798	475.803  Broker's lien for leasing commission.--
799	(1)  A broker has a lien upon the owner's interest in
800	commercial real estate for any commission earned by the broker
801	pursuant to a brokerage agreement with respect to a lease of the
802	commercial real estate. If the owner obligated to pay the
803	commission is the landlord, the broker's lien attaches to the
804	landlord's interest in the commercial real estate identified in
805	the brokerage agreement but not to the tenant's leasehold
806	estate. If the owner obligated to pay the commission is the
807	tenant, the broker's lien attaches to the tenant's leasehold
808	estate but not to the landlord's interest in the commercial real
809	estate.
810	(2)  For purposes of this part, a commission other than a
811	renewal commission is earned on the earlier of the date that:
812	(a)  An event occurs that, under the brokerage agreement,
813	defines when the commission is earned; or
814	(b)  The owner enters into a lease of all or part of the
815	commercial real estate specified in the brokerage agreement,
816	provided that a commission would be payable to the broker
817	pursuant to the brokerage agreement for that lease.
818	(3)  For the purposes of this part, a renewal commission
819	with respect to a lease renewal or lease modification is deemed
820	earned when the broker performs all additional services relating
821	to the lease renewal or lease modification that are expressly
822	required by the brokerage agreement. If the brokerage agreement
823	does not expressly require the broker to perform any additional
824	services in order to receive the renewal commission, the renewal
825	commission is an automatic renewal commission and is deemed
826	earned when the broker first earned a commission for that lease.
827	(4)  For purposes of this part, a commission is payable at
828	the time provided in the brokerage agreement. If payment of the
829	commission is conditioned on the occurrence of an event and that
830	event does not occur, a broker may not enforce a lien for that
831	commission under this part.
832	(5)  A broker's lien for commission arising under this
833	part:
834	(a)  Belongs to the broker named in the brokerage agreement
835	and not to an employee or independent contractor of the broker.
836	(b)  Cannot be assigned voluntarily or by operation of law
837	and may not be enforced by a person other than the broker.
838	(c)  Cannot be waived before the commission is earned.
839	(d)  Cannot be waived by any person other than the broker,
840	regardless of whether that person may execute and bind the
841	broker to a brokerage agreement.
842	(6)  A broker shall disclose to the owner at or before the
843	time the owner executes the brokerage agreement that this part
844	creates lien rights for a commission earned by the broker that
845	are not waivable before the commission is earned by the broker.
846	A broker may not enforce a lien under this part for a commission
847	earned under a brokerage agreement for which the disclosure
848	required by this subsection was not made. A disclosure in
849	substantially the following form shall be sufficient: "The
850	Florida Commercial Real Estate Leasing Commission Lien Act
851	provides that when a broker has earned a commission by
852	performing licensed services under a brokerage agreement with
853	you, the broker may claim a lien against your interest in the
854	property for the broker's commission. The broker's lien rights
855	under the act cannot be waived before the commission is earned."
856	475.805  Contents of lien notice.--
857	(1)  A lien notice made by a broker with respect to a
858	commission claimed under this part shall be in writing, shall be
859	signed and sworn to or affirmed by the broker under penalty of
860	perjury before a notary public, and shall include the following:
861	(a)  The name of the owner of the commercial real estate
862	who is obligated to pay the claimed commission.
863	(b)  A statement whether the owner obligated to pay the
864	commission is the landlord or the tenant under the lease for
865	which the commission is claimed.
866	(c)  The name of the person owning the fee simple interest
867	in the commercial real estate, if other than the owner obligated
868	to pay the commission.
869	(d)  The legal description of the commercial real estate.
870	(e)  The name, mailing address, telephone number, and
871	license number of the broker.
872	(f)  The effective date of the brokerage agreement.
873	(g)  The amount of the commission claimed by the broker,
874	which may be stated in a dollar amount or may be stated in the
875	form of a formula determining the amount, such as a percentage
876	of the rents payable under the lease.
877	(h)  A description of the lease sufficient to identify the
878	lease for which the commission is claimed, including, if then
879	known to the broker, the names of the landlord and tenant under
880	the lease, the date of the lease, and the identification of the
881	leased premises.
882	(i)  A statement of whether the broker is claiming an
883	automatic renewal commission and the amount of such automatic
884	renewal commission or the formula for computing the same.
885	(j)  A statement under penalty of perjury that the broker
886	has read the lien notice, knows its contents, believes the same
887	to be true and correct, and makes the commission claim pursuant
888	to the brokerage agreement described in the lien notice.
889	(2)  A lien notice in substantially the following form
890	shall be sufficient for purposes of subsection (1):
891
892	BROKER'S COMMISSION LIEN NOTICE UNDER
893	FLORIDA COMMERCIAL REAL ESTATE LEASING COMMISSION LIEN ACT
894
895	Notice is hereby given, pursuant to the Florida Commercial Real
896	Estate Leasing Commission Lien Act, part IV of chapter 475,
897	Florida Statutes (the "act"), that the undersigned real estate
898	broker is entitled to receive a leasing commission from the
899	owner named below pursuant to the terms of a written brokerage
900	commission agreement regarding a lease of the commercial real
901	estate described below, and the undersigned broker claims a lien
902	under the act against the owner's interest in the commercial
903	real estate in the amount set forth below.
904	1.  Name of the owner who is obligated to pay the commission:
905	_____________________________________________
906	2.  (Check one:) The owner obligated to pay the commission is:
907	[  ] the landlord under the lease.
908	[  ] the tenant under the lease.
909	3.  Name of the person owing the fee simple interest in the
910	commercial real estate, if other than the owner who is obligated
911	to pay the commission:
912	_____________________________________________
913	4.  Legal description of the commercial real estate:
914	_____________________________________________
915	5.  Name, mailing address, telephone number, and Florida broker
916	license number of the undersigned broker:
917	______________________________
918	______________________________
919	______________________________
920	6.  Effective date of the written brokerage commission agreement
921	between the owner and the broker under which the commission is
922	or will be payable: _______, ____
923	7.  Amount of commission claimed by the undersigned broker:
924	$______________, or
925	______________ percent of rents payable under lease, or
926	[specify other formula for determination of commission
927	amount]: _____________________________________________.
928	8.  The lease for which the commission is claimed is described
929	as follows [provide all information known to the broker]:
930	Name of landlord: _________________________
931	Name of tenant: ___________________________
932	Date of lease: ______________, _________
933	Leased premises: __________________________
934	9.  Automatic renewal commissions (check yes or no): Is the
935	undersigned broker claiming a commission that may become payable
936	if the lease is later renewed or modified to expand the leased
937	premises or to extend the lease term, but the written brokerage
938	commission agreement does not expressly require the broker to
939	perform any additional services in order to receive this later
940	commission?
941	[  ] Yes
942	[  ] No
943	If yes, specify the amount of such later commission or the
944	formula for computing the later commission:
945	_____________________________________________________________
946	10.  The expiration date of this lien notice is 2 years after
947	the date of recording, unless the answer to paragraph 9 is yes,
948	in which case the expiration date of this lien notice for the
949	commission described in paragraph 9 is 10 years after the date
950	of recording.
951	11.  The undersigned broker, under penalty of perjury, hereby
952	swears or affirms that the undersigned broker has read this lien
953	notice, knows its contents and believes the same to be true and
954	correct, and that the undersigned broker is making this
955	commission claim pursuant to the written brokerage commission
956	agreement described in this lien notice.
957
958	Signed: ________(broker)___________
959
960	Signed and sworn to or affirmed under penalty of perjury before
961	me, a notary public, this _____ day of _______, ____, by
962	___________
963
964	Signed: ________(notary public)____
965
966	475.807  Recording lien notice; effectiveness.--
967	(1)(a)  After a commission is earned under this part, the
968	broker may record a lien notice in the public records maintained
969	by the clerk of court in the county or counties in which the
970	commercial real estate is located. The lien notice shall be
971	recorded no later than the earlier of:
972	1.  Ninety days after the tenant takes possession of the
973	leased premises or, in the case of a renewal commission that
974	requires the broker to perform additional services as provided
975	in s. 475.803(3), 90 days after the broker performs the
976	additional services required for the renewal commission; or
977	2.  The date on which the owner who is obligated to pay the
978	commission records in the public records a deed or assignment
979	transferring the owner's interest in the commercial real estate
980	to a bona fide purchaser for value.
981	(b)  A broker who fails to record a lien notice within the
982	time period prescribed by this section may not enforce a lien
983	for the claimed commission under this part, and a lien notice
984	that is recorded outside of the time period prescribed by this
985	section is void.
986	(2)  Within 7 days after recording the lien notice, the
987	broker shall deliver a copy of the lien notice to the owner
988	obligated to pay the claimed commission.
989	(3)  The broker's lien created by this part against the
990	commercial real estate is perfected by such recording of the
991	lien notice and takes priority under this part as of the date of
992	the recording of the lien notice. The priority of the lien
993	notice does not relate back to the date of the brokerage
994	agreement.
995	(4)  If the commission is to be paid in installments and
996	any of those installments are due after the lease is executed,
997	the lien notice is valid only to the extent that moneys remain
998	unpaid by the owner to the broker.
999	(5)  A recorded lien notice is effective under this part
1000	only with respect to leases made by the owner named in the lien
1001	notice and the lien notice is ineffective with respect to any
1002	leases that are made by:
1003	(a)  A bona fide purchaser for value of the commercial real
1004	estate;
1005	(b)  A purchaser at any mortgage foreclosure sale of the
1006	commercial real estate; or
1007	(c)  Any successor owner acquiring the commercial real
1008	estate from a purchaser described in paragraphs (a) or (b).
1009	(6)  Whenever a lien notice is recorded and a condition or
1010	event occurs or fails to occur that would preclude the broker
1011	from receiving the claimed commission under the terms of the
1012	brokerage agreement, including the filing of a lien notice in a
1013	manner that does not comply with this part, the broker shall,
1014	within 7 days following demand by the owner, record a written
1015	release of the lien notice in the public records of the county
1016	where the lien notice was recorded.
1017	(7)  If a broker records a lien notice pursuant to this
1018	section and the claimed commission is paid or the lien notice is
1019	otherwise discharged or satisfied pursuant to this part, the
1020	broker shall, within 7 days after the commission is paid or the
1021	lien notice is otherwise discharged or satisfied, record a
1022	written release of the lien notice in the public records of the
1023	county where the lien notice was recorded.
1024	(8)(a)  Except as provided in paragraph (b), a lien notice
1025	recorded by a broker under this part for a claimed commission
1026	expires 2 years after the date of recording, unless within that
1027	time the broker commences an action to foreclose the lien under
1028	s. 475.809 and records a notice of lis pendens in the public
1029	records of the county where the lien notice was recorded.
1030	(b)  To the extent that a lien notice recorded by a broker
1031	under this part claims an automatic renewal commission that is
1032	earned but not then payable, the lien notice expires 10 years
1033	after the date of recording, unless within that time the broker
1034	commences an action to foreclose the lien under s. 475.809 and
1035	records a notice of lis pendens in the public records of the
1036	county where the lien notice was recorded. If the brokerage
1037	agreement remains effective, the broker may extend the
1038	expiration date of a lien notice for an automatic renewal
1039	commission by recording an extension notice in the same public
1040	records within the last 6 months before such expiration date. An
1041	extension notice shall refer to the recording information of the
1042	original lien notice, shall state that the brokerage agreement
1043	remains effective, and shall include the same information and be
1044	executed in the same manner as required by s. 475.805(1) for the
1045	original lien notice. A timely recorded extension notice shall
1046	extend the expiration date of the original recorded lien notice
1047	by 10 additional years. Successive extension notices may be
1048	recorded for so long as the brokerage agreement remains
1049	effective between the broker and the owner. Within 10 days after
1050	recording an extension notice, the broker shall deliver a copy
1051	thereof to the owner.
1052	(c)  The owner or the owner's agent or attorney may elect
1053	to shorten the time within which the broker shall commence an
1054	action to foreclose a lien under s. 475.809, or to enforce a
1055	claim against a transfer bond or other security under s.
1056	475.811, by recording in the clerk's office a notice of contest
1057	in substantially the following form:
1058
1059	NOTICE OF CONTEST OF BROKER'S LIEN
1060
1061	To:      (Name and address of broker)   _
1062	You are notified that the undersigned contests the lien notice
1063	filed by you on _________,  (year) , and recorded in Official
1064	Records Book _____, Page _____, of the public records of
1065	______________ County, Florida, and that the time within which
1066	you may file suit to enforce your lien is limited to 60 days
1067	from the date of service of this notice.  This _____ day of
1068	_______,   (year)  .
1069
1070	Signed:  (Owner or Attorney)
1071
1072	The lien of any broker upon whom such a notice of contest is
1073	served and who fails to institute a suit to enforce the lien
1074	within 60 days after service of such notice of contest shall be
1075	extinguished automatically. The clerk shall mail a copy of the
1076	notice of contest to the broker at the address shown in the lien
1077	notice or most recent amendment thereto and shall certify to
1078	such service on the face of the notice of contest and record the
1079	notice of contest. Service of the notice of contest by the clerk
1080	shall be deemed complete upon mailing.
1081	475.809  Foreclosure of lien; civil action by owner; award
1082	of costs and attorney's fees.--
1083	(1)  A broker may enforce a lien for a commission that is
1084	earned and payable under this part by a foreclosure suit in the
1085	same manner as if the lien notice were a mortgage recorded
1086	against the commercial real estate of the owner obligated to pay
1087	the claimed commission. The foreclosure shall be commenced in
1088	the county court or circuit court, whichever may have
1089	jurisdiction of controversies in the amount of the claimed
1090	commission, of the county where the lien notice was recorded.
1091	The foreclosure action shall be commenced before the lien notice
1092	expires or is extinguished under s. 475.807(8), otherwise the
1093	lien notice shall become null and void and have no further force
1094	or effect.
1095	(2)  If a lien notice is recorded pursuant to s. 475.807
1096	and the owner disputes the claimed commission, the owner may
1097	file a civil action seeking to discharge the lien in the county
1098	court or circuit court, whichever may have jurisdiction of
1099	controversies in the amount of the claimed commission, of the
1100	county where the lien notice was recorded.
1101	(3)  In any action to foreclose a lien or to discharge a
1102	lien pursuant to this section, the prevailing party shall be
1103	awarded costs and reasonable attorney's fees.
1104	475.811  Transfer of lien to security.--
1105	(1)(a)  Any lien claimed by a broker by recording a lien
1106	notice under this part may be transferred by any person having
1107	an interest in the commercial real estate upon which the lien is
1108	imposed from such commercial real estate to other security by
1109	either:
1110	1.  Depositing in the clerk's office a sum of money; or
1111	2.  Filing in the clerk's office a bond executed as surety
1112	by a surety insurer licensed to do business in this state,
1113	either to be in an amount equal to the amount claimed in the
1114	lien notice, plus interest thereon at the legal rate for 3
1115	years, plus $1,000 or 25 percent of the amount demanded in the
1116	lien notice, whichever is greater, to apply on any attorney's
1117	fees and court costs that may be taxed in any proceeding to
1118	enforce said lien.
1119	(b)  Such deposit or bond shall be conditioned to pay any
1120	judgment or decree that may be rendered for the satisfaction of
1121	the lien for which such lien notice was recorded. Upon making
1122	such deposit or filing such bond, the clerk shall make and
1123	record a certificate showing the transfer of the lien from the
1124	commercial real estate to the security and shall mail a copy
1125	thereof by registered or certified mail to the broker named in
1126	the lien notice at the address stated therein. Upon filing the
1127	certificate of transfer the commercial real estate shall
1128	thereupon be released from the lien claimed and such lien shall
1129	be transferred to said security. Subject to any order of the
1130	court increasing the amount required for the lien transfer
1131	deposit or bond, no other judgment or decree to pay money may be
1132	entered by the court against the owner on account of the
1133	commission claimed in the lien notice. The clerk shall be
1134	entitled to a service charge for making and serving the
1135	certificate, in the amount of up to $15. If the transaction
1136	involves the transfer of multiple liens, an additional charge of
1137	up to $7.50 for each additional lien shall be charged. For
1138	recording the certificate and approving the bond, the clerk
1139	shall receive her or his usual statutory service charges as
1140	prescribed in s. 28.24. Any number of liens may be transferred
1141	to one such security.
1142	(2)  Any excess of the security over the aggregate amount
1143	of any judgments or decrees rendered plus costs actually taxed
1144	shall be repaid to the party filing the security or her or his
1145	successor in interest. Any deposit of money shall be considered
1146	as paid into court and shall be subject to the provisions of law
1147	relative to payments of money into court and the disposition of
1148	same.
1149	(3)  In any action pending under s. 475.809 to foreclose or
1150	discharge a lien any party having an interest in such security
1151	or the commercial real estate from which the lien was
1152	transferred may at any time and any number of times file a
1153	motion for an order to require additional security, reduction of
1154	security, change or substitution of sureties, payment of
1155	discharge thereof, or any other matter affecting said security.
1156	If the court finds that the amount of the deposit or bond in
1157	excess of the amount claimed in the lien notice is insufficient
1158	to pay the broker's attorney's fees and court costs incurred in
1159	the action to enforce the lien, the court shall increase the
1160	amount of the cash deposit or lien transfer bond.
1161	(4)  If a proceeding to enforce a transferred lien is not
1162	commenced within the time specified in s. 475.809 or if it
1163	appears that the transferred lien has been satisfied of record,
1164	the clerk shall return said security upon request of the person
1165	depositing or filing the same, or the insurer.
1166	Section 3.  Paragraph (j) of subsection (1) of section
1167	475.42, Florida Statutes, is amended to read:
1168	475.42  Violations and penalties.--
1169	(1)  VIOLATIONS.--
1170	(j)  A broker or sales associate may not place, or cause to
1171	be placed, upon the public records of any county, any contract,
1172	assignment, deed, will, mortgage, affidavit, or other writing
1173	which purports to affect the title of, or encumber, any real
1174	property if the same is known to her or him to be false, void,
1175	or not authorized to be placed of record, or not executed in the
1176	form entitling it to be recorded, or the execution or recording
1177	whereof has not been authorized by the owner of the property,
1178	maliciously or for the purpose of collecting a commission, or to
1179	coerce the payment of money to the broker or sales associate or
1180	other person, or for any unlawful purpose. However, nothing in
1181	this paragraph shall be construed to prohibit a broker or a
1182	sales associate from recording a judgment rendered by a court of
1183	this state or to prohibit a broker from placing a lien on a
1184	property where expressly permitted by contractual agreement or
1185	otherwise allowed by law.
1186	Section 4.  This act shall take effect October 1, 2005.

CODING: Words stricken are deletions; words underlined are additions.