HB 1459

CS

CHAMBER ACTION

1	The Justice Council 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
10	a lien upon the owner's net proceeds from the disposition
11	of commercial real estate for any commission earned by the
12	broker under a brokerage agreement; providing that the
13	lien cannot be assigned, enforced, or waived by anyone
14	other than the broker; requiring disclosure; providing for
15	the contents of the commission notice and delivery to
16	certain parties; providing a form for the commission
17	notice; providing that a lien may not be enforced if the
18	notice is not delivered to certain parties; providing that
19	the commission notice may be recorded; providing for
20	expiration and extension under certain conditions;
21	providing for release of the commission notice under
22	certain conditions; providing the duties of the closing
23	agent; requiring the closing agent to reserve an owner's
24	proceeds under certain conditions; providing for the
25	release of proceeds under certain conditions; requiring
26	deduction of certain costs from the proceeds; providing
27	for interpleader or other legal proceedings sought by a
28	closing agent to adjudicate certain rights; providing for
29	the deposit of reserved proceeds in a court registry;
30	providing for the discharge of the closing agent from
31	further liability; providing for a civil action if a
32	dispute arises concerning the proceeds; providing that the
33	prevailing party may recover certain fees and costs
34	incurred in a civil action; establishing the priority of a
35	recorded commission notice; providing for the service of
36	notice; providing that a buyer's broker is not entitled to
37	a lien; providing certain conditions under which a buyer's
38	broker may seek payment of a commission; creating part IV
39	of ch. 475, F.S., the "Commercial Real Estate Leasing
40	Commission Lien Act"; providing definitions; providing
41	conditions under which a broker may place a lien upon an
42	owner's interest in commercial real estate for any
43	commission earned under a brokerage agreement with respect
44	to a lease of commercial real estate; providing that the
45	lien cannot be assigned, enforced, or waived by anyone
46	other than the broker; requiring disclosure; providing for
47	the contents of the lien notice; providing a form for the
48	lien notice; providing that the lien notice may be
49	recorded; providing that a lien may not be enforced if the
50	broker fails to record the notice; providing for
51	effectiveness of a recorded lien notice; providing for
52	release of the lien notice under certain conditions;
53	providing for expiration and extension under certain
54	conditions; providing for foreclosure of a recorded lien
55	under certain conditions; providing a form; providing for
56	a civil action if a dispute arises concerning the
57	proceeds; providing that the prevailing party may recover
58	certain fees and costs incurred in a civil action;
59	providing procedures to transfer a lien to a security;
60	providing that the clerk of court may collect a service
61	charge; providing for subordination of a broker's lien;
62	amending s. 475.42, F.S.; providing that a broker may
63	place a lien when allowed by law; providing an effective
64	date.
65
66	Be it Enacted by the Legislature of the State of Florida:
67
68	Section 1.  Part III of chapter 475, Florida Statutes,
69	consisting of sections 475.700, 475.701, 475.703, 475.705,
70	475.707, 475.709, 475.711, 475.713, 475.715, 475.717, and
71	475.719, is created to read:
72	475.700  Popular name.--Sections 475.700-475.719 may be
73	cited as the "Commercial Real Estate Sales Commission Lien Act."
74	475.701  Definitions.--As used in this part:
75	(1)  "Broker" has the same meaning as in s. 475.01.
76	(2)  "Brokerage agreement" means a written contract entered
77	into on or after the effective date of this act between an owner
78	of commercial real estate and a broker that obligates the owner
79	to pay a commission to the broker for licensed services provided
80	by the broker relating to the sale or disposition of the
81	commercial real estate as specified in the contract.
82	(3)  "Closing" means the delivery, exchange, and release of
83	documents and funds for the completion of a transaction for the
84	disposition of commercial real estate.
85	(4)  "Closing agent" means the person who receives
86	documents and funds for recording and disbursement in closing a
87	transaction for the disposition of commercial real estate.
88	(5)  "Commercial real estate" means a fee simple interest
89	or other possessory estate in real property, except an interest
90	in real property that is:
91	(a)  Improved with one single-family residential unit or
92	one multifamily structure containing one to four residential
93	units;
94	(b)  Unimproved and the maximum permitted development is
95	one to four residential units under any restrictive covenants,
96	zoning regulations, or comprehensive plan applicable to that
97	real property; or
98	(c)  Improved with single-family residential units such as
99	condominiums, townhouses, timeshares, mobile homes, or houses in
100	a subdivision that may be legally sold, leased, or otherwise
101	conveyed on a unit-by-unit basis, regardless of whether these
102	units may be a part of a larger building or parcel containing
103	more than four residential units.
104	(6)  "Commission" means any fee or other compensation that
105	an owner agrees to pay a broker for licensed services as
106	specified in a brokerage agreement.
107	(7)  "Commission notice" means the written notice claiming
108	a commission made by a broker under s. 475.705.
109	(8)  "Days" means calendar days, but if a period would end
110	on a day other than a business day, then the last day of that
111	period shall instead be the next business day.
112	(9)  "Disposition" means a voluntary conveyance or transfer
113	of the title to or other ownership interest in any commercial
114	real estate specified in a brokerage agreement. A disposition
115	does not include a transfer pursuant to a foreclosure sale and
116	does not include a lease.
117	(10)  "Disputed reserved proceeds" means the portion of the
118	owner's net proceeds reserved by a closing agent under s.
119	475.709 that the owner disputes the broker's right to receive
120	such reserved proceeds under s. 475.709(5).
121	(11)  "Owner" means a person that is vested with fee simple
122	title or a possessory estate in commercial real estate.
123	(12)  "Owner's net proceeds" means the gross sales proceeds
124	that the owner is entitled to receive from the disposition of
125	any commercial real estate specified in a brokerage agreement,
126	less the following:
127	(a)  Any money that is required to pay any encumbrance,
128	claim, or lien that has priority over the recorded commission
129	notice as provided in s. 475.715 other than an encumbrance,
130	claim, or lien that the buyer of the commercial real estate
131	authorizes to remain after the disposition.
132	(b)  Any costs incurred by the owner to close the
133	disposition, including, but not limited to, real estate transfer
134	tax, title insurance premiums, ad valorem taxes and assessments,
135	and escrow fees payable by the owner pursuant to an agreement
136	with the buyer.
137	(13)  "Real property" means one or more parcels or tracts
138	of land located in this state, including any appurtenances and
139	improvements.
140	475.703  Broker's lien for sales commission.--
141	(1)  A broker has a lien upon the owner's net proceeds from
142	the disposition of commercial real estate for any commission
143	earned by the broker with respect to that disposition pursuant
144	to a brokerage agreement. The lien upon the owner's net proceeds
145	pursuant to this part for a broker's commission is a lien upon
146	personal property, attaches to the owner's net proceeds only,
147	and does not attach to any interest in real property.
148	(2)  For purposes of this part, a commission is earned on
149	the earlier of the date that:
150	(a)  An event occurs under the brokerage agreement that
151	defines when the commission is earned; or
152	(b)  The owner enters into a contract for the disposition
153	of all or part of the commercial real estate specified in the
154	brokerage agreement, provided that a commission would be payable
155	to the broker pursuant to the brokerage agreement if the
156	disposition occurs under that contract.
157	(3)  For the purposes of this part, a commission is payable
158	at the time provided in the brokerage agreement. If payment of
159	the commission is conditioned on the occurrence of an event and
160	that event does not occur, a broker may not enforce a lien for
161	that commission under this part.
162	(4)  A broker's lien for commission arising under this
163	part:
164	(a)  Belongs to the broker named in the brokerage agreement
165	and not to an employee or independent contractor of the broker.
166	(b)  Cannot be assigned voluntarily or by operation of law
167	and may not be enforced by a person other than the broker.
168	(c)  Cannot be waived before the commission is earned.
169	(d)  Cannot be waived by any person other than the broker,
170	regardless of whether that person may execute and bind the
171	broker to a brokerage agreement.
172	(5)  A broker shall disclose to the owner at or before the
173	time the owner executes the brokerage agreement that this part
174	creates lien rights for a commission earned by the broker that
175	are not waivable before the commission is earned by the broker.
176	A broker may not enforce a lien under this part for a commission
177	earned under a brokerage agreement for which the disclosure
178	required by this subsection was not made. A disclosure in
179	substantially the following form shall be sufficient: "The
180	Florida Commercial Real Estate Sales Commission Lien Act
181	provides that when a broker has earned a commission by
182	performing licensed services under a brokerage agreement with
183	you, the broker may claim a lien against your net sales proceeds
184	for the broker's commission. The broker's lien rights under the
185	act cannot be waived before the commission is earned."
186	475.705  Contents of commission notice; delivery to owner
187	and closing agent.--
188	(1)  A commission notice made by a broker with respect to a
189	commission claimed under this part shall be in writing, shall be
190	signed and sworn to or affirmed by the broker under penalty of
191	perjury before a notary public, and shall include the following:
192	(a)  The name of the owner of the commercial real estate
193	who is obligated to pay the claimed commission.
194	(b)  The legal description of the commercial real estate.
195	(c)  The name, mailing address, telephone number, and
196	license number of the broker.
197	(d)  The effective date of the brokerage agreement.
198	(e)  The amount of the commission claimed by the broker,
199	which may be stated in a dollar amount or may be stated in the
200	form of a formula determining the amount, such as a percentage
201	of the sales price.
202	(f)  A statement under penalty of perjury that the broker
203	has read the commission notice, knows its contents, believes the
204	same to be true and correct, and makes the commission claim
205	pursuant to the brokerage agreement described in the notice.
206	(g)  A statement that the commission notice or a copy
207	thereof has been delivered to the owner and that the commission
208	notice may be recorded in the public records of the county or
209	counties where the commercial real estate is located.
210	(h)  A statement that this part provides that if the owner
211	disputes the claimed commission the owner shall notify the
212	closing agent of such dispute not later than 5 days after the
213	closing, or the owner will be deemed to have confirmed the
214	commission and this part will require the closing agent to pay
215	the commission to the broker from the owner's net proceeds from
216	the disposition of the commercial real estate.
217	(2)  A commission notice in substantially the following
218	form shall be sufficient for purposes of subsection (1):
219
220	BROKER'S COMMISSION NOTICE UNDER
221	FLORIDA COMMERCIAL REAL ESTATE SALES COMMISSION LIEN ACT
222
223	Notice is hereby given pursuant to the Florida Commercial Real
224	Estate Sales Commission Lien Act, part III of chapter 475,
225	Florida Statutes (the "act"), that the undersigned real estate
226	broker is entitled to receive a sales commission in the amount
227	set forth below from the owner named below pursuant to the terms
228	of a written brokerage commission agreement regarding the
229	commercial real estate described below, and the undersigned
230	broker claims a lien under the act against the owner's net
231	proceeds from the disposition of the commercial real estate. The
232	act and this commission notice do not create a lien against the
233	commercial real estate itself, but only against the owner's net
234	proceeds.
235
236	1.  Name of the owner who is obligated to pay the commission:
237	_____________________________________________
238	2.  Legal description of the commercial real estate:
239	_____________________________________________
240	3.  Name, mailing address, telephone number, and Florida broker
241	license number of the undersigned broker:
242	______________________________
243	______________________________
244	______________________________
245	4.  Effective date of the written brokerage commission agreement
246	between the owner and the broker under which the commission is
247	or will be payable: ________, ____
248	5.  Amount of commission claimed by the undersigned broker:
249	$______________, or
250	______________ percent of sales price, or
251	[specify other formula for determination of commission amount]:
252	_____________________________________________.
253	6.  The undersigned broker, under penalty of perjury, hereby
254	swears or affirms that the undersigned broker has read this
255	commission notice, knows its contents and believes the same to
256	be true and correct, and that the undersigned broker is making
257	this commission claim pursuant to the written brokerage
258	commission agreement described in this commission notice.
259	7.  The undersigned broker confirms that this commission notice
260	or a copy thereof has been delivered to the owner.
261
262	Signed: ________(broker)___________
263
264	Signed and sworn to or affirmed under penalty of perjury before
265	me, a notary public, this _____ day of _______, ____, by
266	___________
267
268	Signed: ________(notary public)____
269	WARNING TO OWNER: The act provides that if you dispute the
270	commission claimed in this commission notice, you must notify
271	the closing agent of the dispute no later than 5 days after the
272	closing. If you fail to notify the closing agent before that
273	date that you dispute the commission, you will be deemed to have
274	confirmed the commission and the act will require the closing
275	agent to pay the commission to the broker from your net proceeds
276	from the disposition of the commercial real estate.
277
278	This commission notice may be recorded in the public records of
279	the county or counties where the commercial real estate is
280	located.
281	(3)  Subject to subsection (4), if a broker wishes to
282	enforce a lien for a commission under this part, the broker
283	shall, within 30 days after a commission is earned by the broker
284	pursuant to s. 475.703(2) and at least 1 day before the closing,
285	deliver a copy of the commission notice to:
286	(a)  The owner of the commercial real estate specified in
287	the brokerage agreement.
288	(b)  The closing agent designated to close the transaction
289	for the disposition of the commercial real estate, if the broker
290	then knows the identity of the closing agent. If the identity of
291	the closing agent thereafter becomes known to the broker, then
292	the broker shall deliver a copy of the commission notice to the
293	closing agent within 3 days after the broker acquires such
294	knowledge and at least 1 day before the closing.
295	(4)  Except as provided in this subsection, a broker who
296	fails to deliver a copy of a commission notice as required under
297	subsection (3) within the period specified therein may not
298	enforce a lien for the commission under this part. If a broker
299	fails to deliver a copy of the commission notice within said
300	period solely because the owner entered into a contract for the
301	disposition of the commercial real estate without the knowledge
302	of the broker, the broker may enforce a lien for the commission
303	under this part if:
304	(a)  The copy of the commission notice is delivered to the
305	owner and the closing agent before the closing agent disburses
306	the owner's net proceeds to the owner.
307	(b)  The broker executes and delivers to the closing agent
308	a sworn affidavit stating that the copy of the commission notice
309	was not delivered within the time period specified in subsection
310	(3) solely because the owner entered into a contract for the
311	disposition of the commercial real estate without the knowledge
312	of the broker.
313
314	Notwithstanding the provisions of this subsection, a broker who
315	fails to deliver a copy of a commission notice to the owner and
316	the closing agent before the disbursement of the owner's net
317	proceeds may not enforce a lien for the commission under this
318	part, and the delivery of a copy of a commission notice after
319	such disbursement is ineffective under this part.
320	475.707  Recording commission notice; effectiveness.--
321	(1)  After a broker delivers the copies of a commission
322	notice as provided in s. 475.705, the broker may record the
323	commission notice in the public records maintained by the clerk
324	of court in the county or counties in which the commercial real
325	estate is located.
326	(a)  Subject to the limitation in paragraph (b), the
327	broker's lien created by this part against the owner's net
328	proceeds is perfected by such recording of the commission notice
329	and takes priority pursuant to this part as of the date of the
330	recording of the commission notice. The priority of the lien
331	does not relate back to the date of the brokerage agreement.
332	(b)  The recording of the commission notice shall not
333	constitute constructive notice to a closing agent unless the
334	commission notice has been of record for at least 60 days.
335	(2)  A recorded commission notice is effective under this
336	part only with respect to dispositions made by the owner named
337	in the commission notice and after the recordation of a deed
338	from the owner conveying the commercial real estate specified in
339	the commission notice to a bona fide purchaser for value the
340	commission notice is ineffective with respect to any subsequent
341	dispositions of that commercial real estate.
342	(3)  A commission notice recorded under this part expires 1
343	year after the date of recording, unless the brokerage agreement
344	remains effective after the expiration date of the commission
345	notice and the broker records an extension notice in the same
346	public records within the last 60 days before such expiration
347	date. An extension notice shall refer to the recording
348	information of the original commission notice, shall state that
349	the brokerage agreement remains effective, and shall include the
350	information and be executed in the manner as required by s.
351	475.705(1) for the original commission notice. A timely recorded
352	extension notice shall extend the expiration date of the
353	original recorded commission notice by 1 additional year.
354	Successive extension notices may be recorded for so long as the
355	brokerage agreement remains effective between the broker and the
356	owner. Within 10 days after recording an extension notice the
357	broker shall deliver a copy thereof to the owner.
358	(4)  The delivery or recording of a commission notice or
359	the enforcement of a commission claim by a broker under this
360	part does not relieve the owner from the owner's obligation to
361	close a disposition transaction for any commercial real estate.
362	(5)  Whenever a commission notice is recorded and a
363	condition or event occurs or fails to occur that would preclude
364	the broker from receiving the claimed commission under the terms
365	of the brokerage agreement, including the filing of a commission
366	notice in a manner that does not comply with this part, the
367	broker shall, within 7 days following demand by the owner,
368	record a written release of the commission notice in the public
369	records of the county where the commission notice was recorded.
370	(6)  If a broker records a commission notice pursuant to
371	this section and the claimed commission is paid or the
372	commission notice is otherwise discharged or satisfied pursuant
373	to this part, the broker shall, within 7 days after the
374	commission is paid or the commission notice is otherwise
375	discharged or satisfied, record a written release of the
376	commission notice in the public records of the county where the
377	commission notice was recorded.
378	475.709  Duties of closing agent; reservation of owner's
379	net proceeds.--
380	(1)(a)  The closing agent shall reserve from the owner's
381	net proceeds an amount equal to the commission claimed by the
382	broker in the commission notice if, before the closing agent
383	disburses the owner's net proceeds from the closing of a
384	disposition of commercial real estate:
385	1.  A commission notice pertaining to the commercial real
386	estate is delivered to the closing agent in accordance with s.
387	475.705;
388	2.  A commission notice pertaining to the commercial real
389	estate has been recorded for at least 60 days pursuant to s.
390	475.707 and has not expired or been released or canceled as
391	provided in this part; or
392	3.  The closing agent has actual knowledge of a commission
393	notice pertaining to the commercial real estate that has been
394	recorded pursuant to s. 475.707 and has not expired or been
395	released or canceled as provided in this part.
396	(b)  If the owner's net proceeds are insufficient to pay
397	the full amount of the claimed commission, the closing agent
398	shall reserve the entire amount of the owner's net proceeds. The
399	closing agent shall release the reserved proceeds only in
400	accordance with the provisions of this part.
401	(2)(a)  The closing agent designated to close a transaction
402	for the disposition of commercial real estate may require the
403	owner of the commercial real estate to deliver a sworn affidavit
404	identifying the commercial real estate and disclosing to the
405	closing agent:
406	1.  Whether the owner is a party to any brokerage agreement
407	under which any broker or brokers may have a right to claim a
408	commission from the disposition of the commercial real estate.
409	2.  The name, mailing address, and telephone number of any
410	brokers who may have a right to claim a commission, if known to
411	the owner.
412	3.  The amount of any and all commissions that may be
413	claimed under any brokerage agreement disclosed in the owner's
414	affidavit, to the best of the owner's knowledge and belief.
415	4.  Whether the owner confirms or disputes the amount of
416	any commission claimed from the disposition of the commercial
417	real estate as disclosed in the owner's affidavit.
418	(b)  If the closing agent receives an affidavit from the
419	owner under this subsection disclosing that any commission may
420	be claimed from the disposition of the commercial real estate,
421	regardless of whether the owner confirms or disputes the
422	commission, the closing agent shall reserve from the owner's net
423	proceeds an amount equal to the total commission amount
424	disclosed by the owner in the affidavit. Upon request by a
425	broker who has a brokerage agreement with the owner covering the
426	commercial real estate identified in the owner's affidavit, the
427	closing agent shall deliver a copy of the affidavit to the
428	broker. If the owner's net proceeds are insufficient to pay the
429	full amount of the commission so disclosed, the closing agent
430	shall reserve the entire amount of the owner's net proceeds. If
431	the owner's affidavit discloses a commission amount that is
432	different from the commission amount required to be reserved
433	under subsection (1), the closing agent shall reserve the
434	greater of the two commission amounts. The closing agent shall
435	release the reserved proceeds only in accordance with the
436	provisions of this part.
437	(3)  If the provisions of subsection (1) do not require the
438	closing agent to reserve against the owner's net proceeds on
439	account of a commission notice pertaining to the commercial real
440	estate, and if the closing agent receives an owner's affidavit
441	pursuant to subsection (2) stating that the owner is not a party
442	to any brokerage agreement under which any commission may be
443	claimed from the disposition of the commercial real estate, the
444	closing agent has no duty under this part to reserve any money
445	or property for a commission from the owner's net proceeds from
446	the disposition of the commercial real estate.
447	(4)  If the closing agent determines that the owner's net
448	proceeds from a disposition of commercial real estate are
449	insufficient to pay the full amount of the commission claimed in
450	a commission notice or disclosed in an owner's affidavit, the
451	closing agent shall, within 3 days after making that
452	determination but no later than the closing of the disposition,
453	notify the owner and the broker of the determination. The
454	closing agent's determination that the owner's net proceeds are
455	insufficient under this part, however, does not relieve the
456	owner from the owner's contractual obligations under the
457	brokerage agreement to pay the full commission owing to the
458	broker.
459	(5)  If the owner confirms that a commission is payable to
460	the broker, at the closing of the disposition of the commercial
461	real estate the closing agent shall release to the broker the
462	confirmed amount of the commission from the reserved proceeds. A
463	settlement statement executed by the owner and showing the
464	payment of a commission to the broker is confirmation by the
465	owner of the commission amount shown on the settlement
466	statement. If the owner disputes the broker's right to receive
467	all or any portion of the claimed commission, the closing agent
468	shall release to the broker from the reserved proceeds only the
469	undisputed portion of the commission, if any. Until the rights
470	of the owner and the broker with respect to the disputed
471	reserved proceeds are determined pursuant to s. 475.711 or s.
472	475.713 or the owner and the broker otherwise agree in writing,
473	the closing agent shall not release the disputed reserved
474	proceeds to any person other than to deposit the same in the
475	registry of the court having jurisdiction of the dispute.
476	(6)  The commission claimed in the commission notice shall
477	be deemed confirmed by the owner and the closing agent shall
478	release the reserved proceeds to the broker, if the closing
479	agent is required pursuant to subsection (1) to reserve any or
480	all of the owner's net proceeds, and if:
481	(a)  Five days have passed after the closing.
482	(b)  The owner has neither confirmed nor disputed the
483	claimed commission to the closing agent.
484	(c)  The closing agent receives reasonably satisfactory
485	evidence that the broker delivered a copy of the commission
486	notice to the owner in accordance with s. 475.705.
487	(7)  If the owner's net proceeds consist in whole or in
488	part of a purchase-money note, and if the money portion of the
489	owner's net proceeds is insufficient to pay the full amount of
490	the commission claimed, the broker's lien under this part for
491	the portion of the commission not paid from the money proceeds
492	shall attach to the purchase-money note and any security
493	therefor, and the closing agent shall reserve and release the
494	purchase-money note in accordance with this part in the same
495	manner as the money portion of the reserved proceeds. If the
496	owner and the broker are unable to agree within 5 days after the
497	closing regarding the closing agent's release of the purchase-
498	money note, the closing agent shall interplead the purchase-
499	money note along with any money reserved proceeds in accordance
500	with s. 475.711.
501	(8)  If the disposition of the commercial real estate is
502	part of a like-kind exchange by the owner which is deferred from
503	federal income tax under section 1031 of the Internal Revenue
504	Code of 1986, as amended, and if all of the owner's net proceeds
505	in excess of undisputed commissions shall be delivered to a
506	third party in order to qualify the disposition for such tax
507	deferral treatment, the owner may substitute other cash, a
508	surety bond, an unconditional letter of credit, or other liquid
509	security acceptable to the broker in lieu of any disputed
510	reserved proceeds held by the closing agent under this section
511	or deposited in the court registry in accordance with s.
512	475.711.
513	(9)  Upon request of the closing agent or the owner, any
514	broker who has recorded a commission notice under s. 475.707
515	shall submit a satisfaction or release of the commission notice
516	in recordable form to the closing agent to be held in escrow
517	pending the closing and the closing agent's release to the
518	broker of the portion of the owner's net proceeds reserved by
519	the closing agent under this section. The closing agent is
520	authorized to deduct from the reserved proceeds payable to the
521	broker the cost of recording the satisfaction or release of the
522	commission notice.
523	(10)  Neither the closing agent's requirement for an
524	owner's affidavit pursuant to subsection (2), nor the closing
525	agent's reservation of any portion of an owner's net proceeds
526	pursuant to subsections (1) or (2), shall relieve the owner of
527	the owner's obligation to close the transaction for the
528	disposition of the commercial real estate, including, without
529	limitation, any obligation of the owner to the buyer under the
530	purchase and sale contract to discharge mortgages, liens, or
531	encumbrances against the commercial real estate that were
532	recorded after the commission notice and therefore are not
533	subtracted from gross sales proceeds when computing the owner's
534	net proceeds under s. 475.719.
535	(11)  A closing agent is not liable to the owner, the
536	broker, or any other person in any civil action for any action
537	taken by the closing agent to comply with the provisions of this
538	part.
539	(12)  No provision of this part shall require a closing
540	agent to serve involuntarily more than 5 days after a closing as
541	an escrow agent or stakeholder for any monies or other property
542	that are disputed by the owner and the broker under the
543	provisions of this part.
544	475.711  Interpleader or other proceedings; deposit of
545	reserved proceeds in court registry; discharge of closing agent
546	from further liability.--
547	(1)  The closing agent shall, by interpleader action or
548	other legal proceeding, seek adjudication of the rights of the
549	parties with respect to disputed reserved proceeds by the county
550	court or circuit court, whichever may have jurisdiction of
551	controversies in the amount of the disputed reserved proceeds,
552	in a county where all or a portion of the commercial real estate
553	is located if, after the closing of a transaction for the
554	disposition of the commercial real estate:
555	(a)  The closing agent has reserved all or a portion of the
556	owner's net proceeds pursuant to s. 475.709 and the owner
557	disputes the release to the broker of all or any portion of the
558	reserved proceeds.
559	(b)  The owner and the broker have not agreed in writing,
560	within 5 days after the closing, regarding the closing agent's
561	release of the disputed reserved proceeds.
562	(c)  Neither the owner nor the broker have commenced a
563	civil action to determine the rights of the parties with respect
564	to the disputed reserved proceeds.
565	(2)  Unless otherwise agreed to by the owner and the broker
566	in writing, the closing agent shall deposit the net amount of
567	disputed reserved proceeds in the registry of the court having
568	jurisdiction of any legal action or proceeding to determine the
569	rights of the parties in the disputed reserved proceeds, whether
570	commenced by the closing agent under subsection (1) or commenced
571	by the owner or the broker under s. 475.713 or otherwise. The
572	closing agent shall determine the net amount of disputed
573	reserved proceeds deposited in the court registry by deducting
574	from the disputed reserved proceeds:
575	(a)  Any costs incurred by the closing agent to commence
576	such action or proceeding, or to appear in any such action or
577	proceeding commenced by the owner or the broker, including
578	reasonable attorney's fees.
579	(b)  The costs of recording the affidavit described in
580	subsection (3) if any commission notice has been recorded.
581	(c)  The service charges of the clerk of court under s.
582	28.24 for receiving the net amount of such disputed reserved
583	proceeds into the registry of the court.
584	(3)  If a commission notice has been recorded in the public
585	records of the county or counties where the commercial real
586	estate is located, upon depositing the net disputed reserved
587	proceeds with the clerk of court pursuant to subsection (2), the
588	closing agent shall execute and record an affidavit referring to
589	the recorded commission notice and stating that the net disputed
590	reserved proceeds have been so deposited in accordance with this
591	part. The recording of the affidavit shall operate to release
592	the recorded commission notice.
593	(4)  If a closing agent deposits the net disputed reserved
594	proceeds with the clerk of court pursuant to subsection (2), the
595	closing agent is discharged from any further liability or
596	responsibility concerning the disputed reserved proceeds.
597	475.713  Civil action concerning commission; order to show
598	cause; hearing; release of proceeds; award of costs and
599	attorney's fees.--
600	(1)  If a commission notice claiming a commission is
601	delivered to an owner pursuant to s. 475.705 and the owner
602	disputes the claimed commission, the owner or the broker may
603	file a civil action concerning the commission claim in the
604	county court or circuit court, whichever has jurisdiction of
605	controversies in the amount of the claimed commission, of the
606	county where the commercial real estate or a portion of the
607	commercial real estate is located.
608	(2)  In a civil action by the owner, at the time the
609	summons is issued or at any time before the complaint is
610	answered by the broker, the owner may apply to the court for an
611	order directing the broker to appear before the court at a time
612	not earlier than 7 days or later than 15 days after the date of
613	service of the motion and order on the broker to show cause why
614	the commission claim should not be dismissed. The motion must
615	state the grounds upon which relief is sought and must be
616	supported by the affidavit of the owner setting forth a concise
617	statement of the facts upon which the motion is based. The order
618	to show cause shall clearly state that if the broker fails to
619	appear at the time and place specified in the order, the
620	broker's claim of lien against the owner's net proceeds under
621	this part shall be released, with prejudice, and the broker
622	shall be ordered to pay the costs incurred by the owner and the
623	closing agent, including reasonable attorney's fees.
624	(3)  The court shall issue an order releasing the broker's
625	claim of lien against the owner's net proceeds from such
626	disposition, discharging any commission notice that may be have
627	been recorded, ordering the release to the owner of the disputed
628	reserved proceeds, and awarding costs and reasonable attorney's
629	fees to the owner to be paid by the broker if, following a
630	hearing, the court determines that the owner is not a party to a
631	brokerage agreement that will result in the owner being
632	obligated to pay the broker the claimed commission or any
633	portion thereof with respect to the disposition of the
634	commercial real estate identified in the commission notice. If
635	the court determines that the owner is a party to a brokerage
636	agreement that will result in the owner being obligated to pay
637	the broker the claimed commission or any portion thereof with
638	respect to the disposition of the commercial real estate
639	identified in the commission notice, the court shall issue an
640	order so stating, ordering the release to the broker of the
641	disputed reserved proceeds or such portion thereof to which the
642	court determines that the broker is entitled, and awarding costs
643	and reasonable attorney's fees to the broker to be paid by the
644	owner. Such orders are final judgments.
645	(4)  A certified copy of any order issued by the court
646	pursuant to subsection (3) discharging a recorded commission
647	notice shall be recorded at the expense of the broker in the
648	public records where the commission notice was recorded, and
649	such order shall operate as a cancellation of the recorded
650	commission notice.
651	(5)(a)  In a civil action commenced by the owner or the
652	broker under this section or in an interpleader action or other
653	proceeding commenced by the closing agent under s. 475.711, the
654	owner or the broker that is not the prevailing party shall be
655	required to pay:
656	1.  The costs and reasonable attorney's fees incurred in
657	the action by the prevailing party.
658	2.  The costs and reasonable attorney's fees incurred in
659	the action by the closing agent.
660	3.  The amount of any costs, recording charges, and service
661	charges of the clerk of court that were deducted from the
662	disputed reserved proceeds under s. 475.711(2) in determining
663	the net amount thereof deposited into the registry of the court.
664	(b)  If the court determines that neither the owner nor the
665	broker is the prevailing party, the amounts set forth in
666	subparagraphs 1.and 2. of this subsection shall be divided
667	equally between and paid by the owner and the broker.
668	(6)  Proceedings conducted pursuant to this section shall
669	not affect rights and remedies otherwise available to the owner
670	or the broker under other applicable law.
671	475.715  Priority of recorded commission notice.--All
672	statutory liens, consensual liens, mortgages, deeds of trust,
673	assignments of rents, and other encumbrances, including all
674	advances or charges made or accruing thereunder, whether
675	voluntary or obligatory, and all modifications, extensions,
676	renewals, and replacements thereof, recorded prior to the
677	recording of a commission notice pursuant to the provisions of
678	s. 475.707, have priority over the commission notice, and the
679	amount required to discharge such prior recorded liens shall be
680	subtracted from gross sales proceeds in computing the owner's
681	net proceeds unless the buyer permits the same to remain a lien
682	against the title to the commercial real estate. A prior
683	recorded lien includes, without limitation, a valid construction
684	lien claim that is recorded after the recording of the broker's
685	commission notice but which relates back to a notice of
686	commencement recorded under s. 713.13 prior to the recording
687	date of the broker's commission notice.
688	475.717  Service of notice.--Notices to be delivered to a
689	party pursuant to this part other than service of process as
690	required in civil actions shall be by service of process, by
691	registered or certified mail with return receipt requested, or
692	by personal or electronic delivery and obtaining evidence of
693	delivery in the form of a receipt or other paper or electronic
694	acknowledgment by the party to whom the notice is delivered.
695	Delivery is effective at the time of personal service, personal
696	or electronic delivery, or 3 days following deposit in the mail
697	as required by this section. Notice to a broker or owner may be
698	given to the address of the broker or owner that is contained in
699	the brokerage agreement or such other address as is contained in
700	a written notice from the broker or owner to the party giving
701	the notice. If no address is provided in the brokerage
702	agreement, the notice to the broker may be given to the broker's
703	address contained in the commission notice. Notice to a closing
704	agent shall be addressed to the individual responsible for the
705	closing if the person sending the notice knows that individual's
706	name.
707	475.719  Buyer's broker.--As used in this section, the term
708	"buyer's broker" means a broker that is entitled to receive
709	payment from the buyer of commercial real estate of any fee or
710	other compensation for licensed services, as specified in a
711	written contract made between the buyer and the broker on or
712	after the effective date of this act relating to the buyer's
713	purchase of the commercial real estate.
714	(1)  A written contract between a buyer and a buyer's
715	broker for the payment by the buyer of any fee or other
716	compensation to the buyer's broker for licensed services
717	relating to the sale or disposition of commercial real estate to
718	the buyer is not a brokerage agreement with the owner under this
719	part, and the buyer's broker is not entitled under this part to
720	record any commission notice, to claim any lien against
721	commercial real estate, or to claim any lien against the owner's
722	net proceeds from the sale or disposition of commercial real
723	estate.
724	(2)  If an owner enters into a written contract with a
725	buyer for the sale or disposition of any commercial real estate
726	that will entitle the buyer's broker to receive a fee or other
727	compensation from the buyer under the terms of the buyer's
728	broker's written contract with the buyer, the buyer's broker may
729	give notice of the buyer's broker's right to receive such
730	payment to the closing agent, the owner, the buyer, or any other
731	party to the sale or disposition or the financing thereof,
732	provided that such notice may be given without violating any
733	confidentiality provisions contained in either such written
734	contract.
735	(3)  No such notice given by the buyer's broker pursuant to
736	subsection (2) shall constitute a tortious interference with the
737	sale or disposition or financing of the commercial real estate,
738	except this section shall not affect the rights and remedies
739	otherwise available to the owner, the buyer, or the buyer's
740	broker under other applicable law.
741	Section 2.  Part IV of chapter 475, Florida Statutes,
742	consisting of sections 475.800, 475.801, 475.803, 475.805,
743	475.807, 475.809, 475.811, and 475.813, is created to read:
744	475.800  Short title.--Sections 475.800-475.813 may be
745	cited as the "Commercial Real Estate Leasing Commission Lien
746	Act."
747	475.801  Definitions.--As used in this part:
748	(1)  "Automatic renewal commission" means a renewal
749	commission for which the brokerage agreement does not expressly
750	require the broker to perform any additional services in order
751	to receive the renewal commission.
752	(2)  "Broker" has the same meaning as in s. 475.01.
753	(3)  "Brokerage agreement" means a written contract,
754	entered into on or after the effective date of this act, between
755	an owner of commercial real estate and a broker that obligates
756	the owner to pay a commission to the broker for licensed
757	services provided by the broker relating to the leasing of the
758	commercial real estate as specified in the contract.
759	(4)  "Commercial real estate" means a fee simple interest
760	or other possessory estate in real property, except an interest
761	in real property that is:
762	(a)  Improved with one single-family residential unit or
763	one multifamily structure containing one to four residential
764	units;
765	(b)  Unimproved and the maximum permitted development is
766	one to four residential units under any restrictive covenants,
767	zoning regulations, or comprehensive plan applicable to that
768	real property; or
769	(c)  Improved with single-family residential units such as
770	condominiums, townhouses, timeshares, mobile homes, or houses in
771	a subdivision that may be legally sold, leased, or otherwise
772	conveyed on a unit-by-unit basis, regardless of whether these
773	units may be a part of a larger building or parcel containing
774	more than four residential units.
775	(5)  "Commission" means any fee or other compensation that
776	an owner agrees to pay a broker for licensed services as
777	specified in a brokerage agreement.
778	(6)  "Days" means calendar days, but if a period would end
779	on a day other than a business day, the last day of that period
780	shall instead be the next business day.
781	(7)  "Lease" means a written agreement creating a
782	relationship of landlord and tenant with respect to commercial
783	real estate, such that the tenant acquires from the landlord the
784	right to possess the commercial real estate for a specified
785	period of time.
786	(8)  "Lien notice" means the written notice of lien made by
787	a broker claiming a commission under s. 745.805.
788	(9)  "Owner" means a person that is vested with fee simple
789	title or a possessory estate, including a leasehold, in
790	commercial real estate that is the subject of a lease. For
791	purposes of this part, the owner obligated to pay a commission
792	under a brokerage agreement may be a landlord or a tenant.
793	(10)  "Real property" means one or more parcels or tracts
794	of land located in this state, including any appurtenances and
795	improvements.
796	(11)  "Renewal commission" means an additional commission
797	that may become payable to a broker under a brokerage agreement
798	if a lease subject to that brokerage agreement is later renewed
799	or is later modified to expand the leased premises or extend the
800	lease term.
801	475.803  Broker's lien for leasing commission.--
802	(1)  A broker has a lien upon the owner's interest in
803	commercial real estate for any commission earned by the broker
804	pursuant to a brokerage agreement with respect to a lease of the
805	commercial real estate. If the owner obligated to pay the
806	commission is the landlord, the broker's lien attaches to the
807	landlord's interest in the commercial real estate identified in
808	the brokerage agreement but not to the tenant's leasehold
809	estate. If the owner obligated to pay the commission is the
810	tenant, the broker's lien attaches to the tenant's leasehold
811	estate but not to the landlord's interest in the commercial real
812	estate.
813	(2)  For purposes of this part, a commission other than a
814	renewal commission is earned on the earlier of the date that:
815	(a)  An event occurs that, under the brokerage agreement,
816	defines when the commission is earned; or
817	(b)  The owner enters into a lease of all or part of the
818	commercial real estate specified in the brokerage agreement,
819	provided that a commission would be payable to the broker
820	pursuant to the brokerage agreement for that lease.
821	(3)  For the purposes of this part, a renewal commission
822	with respect to a lease renewal or lease modification is deemed
823	earned when the broker performs all additional services relating
824	to the lease renewal or lease modification that are expressly
825	required by the brokerage agreement. If the brokerage agreement
826	does not expressly require the broker to perform any additional
827	services in order to receive the renewal commission, the renewal
828	commission is an automatic renewal commission and is deemed
829	earned when the broker first earned a commission for that lease.
830	(4)  For purposes of this part, a commission is payable at
831	the time provided in the brokerage agreement. If payment of the
832	commission is conditioned on the occurrence of an event and that
833	event does not occur, a broker may not enforce a lien for that
834	commission under this part.
835	(5)  A broker's lien for commission arising under this
836	part:
837	(a)  Belongs to the broker named in the brokerage agreement
838	and not to an employee or independent contractor of the broker.
839	(b)  Cannot be assigned voluntarily or by operation of law
840	and may not be enforced by a person other than the broker.
841	(c)  Cannot be waived before the commission is earned.
842	(d)  Cannot be waived by any person other than the broker,
843	regardless of whether that person may execute and bind the
844	broker to a brokerage agreement.
845	(6)  A broker shall disclose to the owner at or before the
846	time the owner executes the brokerage agreement that this part
847	creates lien rights for a commission earned by the broker that
848	are not waivable before the commission is earned by the broker.
849	A broker may not enforce a lien under this part for a commission
850	earned under a brokerage agreement for which the disclosure
851	required by this subsection was not made. A disclosure in
852	substantially the following form shall be sufficient: "The
853	Florida Commercial Real Estate Leasing Commission Lien Act
854	provides that when a broker has earned a commission by
855	performing licensed services under a brokerage agreement with
856	you, the broker may claim a lien against your interest in the
857	property for the broker's commission. The broker's lien rights
858	under the act cannot be waived before the commission is earned."
859	475.805  Contents of lien notice.--
860	(1)  A lien notice made by a broker with respect to a
861	commission claimed under this part shall be in writing, shall be
862	signed and sworn to or affirmed by the broker under penalty of
863	perjury before a notary public, and shall include the following:
864	(a)  The name of the owner of the commercial real estate
865	who is obligated to pay the claimed commission.
866	(b)  A statement whether the owner obligated to pay the
867	commission is the landlord or the tenant under the lease for
868	which the commission is claimed.
869	(c)  The name of the person owning the fee simple interest
870	in the commercial real estate, if other than the owner obligated
871	to pay the commission.
872	(d)  The legal description of the commercial real estate.
873	(e)  The name, mailing address, telephone number, and
874	license number of the broker.
875	(f)  The effective date of the brokerage agreement.
876	(g)  The amount of the commission claimed by the broker,
877	which may be stated in a dollar amount or may be stated in the
878	form of a formula determining the amount, such as a percentage
879	of the rents payable under the lease.
880	(h)  A description of the lease sufficient to identify the
881	lease for which the commission is claimed, including, if then
882	known to the broker, the names of the landlord and tenant under
883	the lease, the date of the lease, and the identification of the
884	leased premises.
885	(i)  A statement of whether the broker is claiming an
886	automatic renewal commission and the amount of such automatic
887	renewal commission or the formula for computing the same.
888	(j)  A statement under penalty of perjury that the broker
889	has read the lien notice, knows its contents, believes the same
890	to be true and correct, and makes the commission claim pursuant
891	to the brokerage agreement described in the lien notice.
892	(2)  A lien notice in substantially the following form
893	shall be sufficient for purposes of subsection (1):
894
895	BROKER'S COMMISSION LIEN NOTICE UNDER
896	FLORIDA COMMERCIAL REAL ESTATE LEASING COMMISSION LIEN ACT
897
898	Notice is hereby given, pursuant to the Florida Commercial Real
899	Estate Leasing Commission Lien Act, part IV of chapter 475,
900	Florida Statutes (the "act"), that the undersigned real estate
901	broker is entitled to receive a leasing commission from the
902	owner named below pursuant to the terms of a written brokerage
903	commission agreement regarding a lease of the commercial real
904	estate described below, and the undersigned broker claims a lien
905	under the act against the owner's interest in the commercial
906	real estate in the amount set forth below.
907	1.  Name of the owner who is obligated to pay the commission:
908	_____________________________________________
909	2.  (Check one:) The owner obligated to pay the commission is:
910	[  ] the landlord under the lease.
911	[  ] the tenant under the lease.
912	3.  Name of the person owing the fee simple interest in the
913	commercial real estate, if other than the owner who is obligated
914	to pay the commission:
915	_____________________________________________
916	4.  Legal description of the commercial real estate:
917	_____________________________________________
918	5.  Name, mailing address, telephone number, and Florida broker
919	license number of the undersigned broker:
920	______________________________
921	______________________________
922	______________________________
923	6.  Effective date of the written brokerage commission agreement
924	between the owner and the broker under which the commission is
925	or will be payable: _______, ____
926	7.  Amount of commission claimed by the undersigned broker:
927	$______________, or
928	______________ percent of rents payable under lease, or
929	[specify other formula for determination of commission
930	amount]: _____________________________________________.
931	8.  The lease for which the commission is claimed is described
932	as follows [provide all information known to the broker]:
933	Name of landlord: _________________________
934	Name of tenant: ___________________________
935	Date of lease: ______________, _________
936	Leased premises: __________________________
937	9.  Automatic renewal commissions (check yes or no): Is the
938	undersigned broker claiming a commission that may become payable
939	if the lease is later renewed or modified to expand the leased
940	premises or to extend the lease term, but the written brokerage
941	commission agreement does not expressly require the broker to
942	perform any additional services in order to receive this later
943	commission?
944	[  ] Yes
945	[  ] No
946	If yes, specify the amount of such later commission or the
947	formula for computing the later commission:
948	_____________________________________________________________
949	10.  The expiration date of this lien notice is 2 years after
950	the date of recording, unless the answer to paragraph 9 is yes,
951	in which case the expiration date of this lien notice for the
952	commission described in paragraph 9 is 10 years after the date
953	of recording.
954	11.  The undersigned broker, under penalty of perjury, hereby
955	swears or affirms that the undersigned broker has read this lien
956	notice, knows its contents and believes the same to be true and
957	correct, and that the undersigned broker is making this
958	commission claim pursuant to the written brokerage commission
959	agreement described in this lien notice.
960
961	Signed: ________(broker)___________
962
963	Signed and sworn to or affirmed under penalty of perjury before
964	me, a notary public, this _____ day of _______, ____, by
965	___________
966
967	Signed: ________(notary public)____
968
969	475.807  Recording lien notice; effectiveness.--
970	(1)(a)  After a commission is earned under this part, the
971	broker may record a lien notice in the public records maintained
972	by the clerk of court in the county or counties in which the
973	commercial real estate is located. The lien notice shall be
974	recorded no later than the earlier of:
975	1.  Ninety days after the tenant takes possession of the
976	leased premises or, in the case of a renewal commission that
977	requires the broker to perform additional services as provided
978	in s. 475.803(3), 90 days after the broker performs the
979	additional services required for the renewal commission; or
980	2.  The date on which the owner who is obligated to pay the
981	commission records in the public records a deed or assignment
982	transferring the owner's interest in the commercial real estate
983	to a bona fide purchaser for value.
984	(b)  A broker who fails to record a lien notice within the
985	time period prescribed by this section may not enforce a lien
986	for the claimed commission under this part, and a lien notice
987	that is recorded outside of the time period prescribed by this
988	section is void.
989	(2)  Within 7 days after recording the lien notice, the
990	broker shall deliver a copy of the lien notice to the owner
991	obligated to pay the claimed commission.
992	(3)  The broker's lien created by this part against the
993	commercial real estate is perfected by such recording of the
994	lien notice and takes priority under this part as of the date of
995	the recording of the lien notice. The priority of the lien
996	notice does not relate back to the date of the brokerage
997	agreement.
998	(4)  If the commission is to be paid in installments and
999	any of those installments are due after the lease is executed,
1000	the lien notice is valid only to the extent that moneys remain
1001	unpaid by the owner to the broker.
1002	(5)  A recorded lien notice is effective under this part
1003	only with respect to leases made by the owner named in the lien
1004	notice and the lien notice is ineffective with respect to any
1005	leases that are made by:
1006	(a)  A bona fide purchaser for value of the commercial real
1007	estate;
1008	(b)  A purchaser at any mortgage foreclosure sale of the
1009	commercial real estate; or
1010	(c)  Any successor owner acquiring the commercial real
1011	estate from a purchaser described in paragraphs (a) or (b).
1012	(6)  Whenever a lien notice is recorded and a condition or
1013	event occurs or fails to occur that would preclude the broker
1014	from receiving the claimed commission under the terms of the
1015	brokerage agreement, including the filing of a lien notice in a
1016	manner that does not comply with this part, the broker shall,
1017	within 7 days following demand by the owner, record a written
1018	release of the lien notice in the public records of the county
1019	where the lien notice was recorded.
1020	(7)  If a broker records a lien notice pursuant to this
1021	section and the claimed commission is paid or the lien notice is
1022	otherwise discharged or satisfied pursuant to this part, the
1023	broker shall, within 7 days after the commission is paid or the
1024	lien notice is otherwise discharged or satisfied, record a
1025	written release of the lien notice in the public records of the
1026	county where the lien notice was recorded.
1027	(8)(a)  Except as provided in paragraph (b), a lien notice
1028	recorded by a broker under this part for a claimed commission
1029	expires 2 years after the date of recording, unless within that
1030	time the broker commences an action to foreclose the lien under
1031	s. 475.809 and records a notice of lis pendens in the public
1032	records of the county where the lien notice was recorded.
1033	(b)  To the extent that a lien notice recorded by a broker
1034	under this part claims an automatic renewal commission that is
1035	earned but not then payable, the lien notice expires 10 years
1036	after the date of recording, unless within that time the broker
1037	commences an action to foreclose the lien under s. 475.809 and
1038	records a notice of lis pendens in the public records of the
1039	county where the lien notice was recorded. If the brokerage
1040	agreement remains effective, the broker may extend the
1041	expiration date of a lien notice for an automatic renewal
1042	commission by recording an extension notice in the same public
1043	records within the last 6 months before such expiration date. An
1044	extension notice shall refer to the recording information of the
1045	original lien notice, shall state that the brokerage agreement
1046	remains effective, and shall include the same information and be
1047	executed in the same manner as required by s. 475.805(1) for the
1048	original lien notice. A timely recorded extension notice shall
1049	extend the expiration date of the original recorded lien notice
1050	by 10 additional years. Successive extension notices may be
1051	recorded for so long as the brokerage agreement remains
1052	effective between the broker and the owner. Within 10 days after
1053	recording an extension notice, the broker shall deliver a copy
1054	thereof to the owner.
1055	(c)  The owner or the owner's agent or attorney may elect
1056	to shorten the time within which the broker shall commence an
1057	action to foreclose a lien under s. 475.809, or to enforce a
1058	claim against a transfer bond or other security under s.
1059	475.811, by recording in the clerk's office a notice of contest
1060	in substantially the following form:
1061
1062	NOTICE OF CONTEST OF BROKER'S LIEN
1063
1064	To:      (Name and address of broker)   _
1065	You are notified that the undersigned contests the lien notice
1066	filed by you on _________,  (year) , and recorded in Official
1067	Records Book _____, Page _____, of the public records of
1068	______________ County, Florida, and that the time within which
1069	you may file suit to enforce your lien is limited to 60 days
1070	from the date of service of this notice.  This _____ day of
1071	_______,   (year)  .
1072
1073	Signed:  (Owner or Attorney)
1074
1075	The lien of any broker upon whom such a notice of contest is
1076	served and who fails to institute a suit to enforce the lien
1077	within 60 days after service of such notice of contest shall be
1078	extinguished automatically. The clerk shall mail a copy of the
1079	notice of contest to the broker at the address shown in the lien
1080	notice or most recent amendment thereto and shall certify to
1081	such service on the face of the notice of contest and record the
1082	notice of contest. Service of the notice of contest by the clerk
1083	shall be deemed complete upon mailing.
1084	475.809  Foreclosure of lien; civil action by owner; award
1085	of costs and attorney's fees.--
1086	(1)  A broker may enforce a lien for a commission that is
1087	earned and payable under this part by a foreclosure suit in the
1088	same manner as if the lien notice were a mortgage recorded
1089	against the commercial real estate of the owner obligated to pay
1090	the claimed commission. The foreclosure shall be commenced in
1091	the county court or circuit court, whichever may have
1092	jurisdiction of controversies in the amount of the claimed
1093	commission, of the county where the lien notice was recorded.
1094	The foreclosure action shall be commenced before the lien notice
1095	expires or is extinguished under s. 475.807(8), otherwise the
1096	lien notice shall become null and void and have no further force
1097	or effect.
1098	(2)  If a lien notice is recorded pursuant to s. 475.807
1099	and the owner disputes the claimed commission, the owner may
1100	file a civil action seeking to discharge the lien in the county
1101	court or circuit court, whichever may have jurisdiction of
1102	controversies in the amount of the claimed commission, of the
1103	county where the lien notice was recorded.
1104	(3)  In any action to foreclose a lien or to discharge a
1105	lien pursuant to this section, the prevailing party shall be
1106	awarded costs and reasonable attorney's fees.
1107	475.811  Transfer of lien to security.--
1108	(1)(a)  Any lien claimed by a broker by recording a lien
1109	notice under this part may be transferred by any person having
1110	an interest in the commercial real estate upon which the lien is
1111	imposed from such commercial real estate to other security by
1112	either:
1113	1.  Depositing in the clerk's office a sum of money; or
1114	2.  Filing in the clerk's office a bond executed as surety
1115	by a surety insurer licensed to do business in this state,
1116	either to be in an amount equal to the amount claimed in the
1117	lien notice, plus interest thereon at the legal rate for 3
1118	years, plus $1,000 or 25 percent of the amount demanded in the
1119	lien notice, whichever is greater, to apply on any attorney's
1120	fees and court costs that may be taxed in any proceeding to
1121	enforce said lien.
1122	(b)  Such deposit or bond shall be conditioned to pay any
1123	judgment or decree that may be rendered for the satisfaction of
1124	the lien for which such lien notice was recorded. Upon making
1125	such deposit or filing such bond, the clerk shall make and
1126	record a certificate showing the transfer of the lien from the
1127	commercial real estate to the security and shall mail a copy
1128	thereof by registered or certified mail to the broker named in
1129	the lien notice at the address stated therein. Upon filing the
1130	certificate of transfer the commercial real estate shall
1131	thereupon be released from the lien claimed and such lien shall
1132	be transferred to said security. Subject to any order of the
1133	court increasing the amount required for the lien transfer
1134	deposit or bond, no other judgment or decree to pay money may be
1135	entered by the court against the owner on account of the
1136	commission claimed in the lien notice. The clerk shall be
1137	entitled to a service charge for making and serving the
1138	certificate, in the amount of up to $15. If the transaction
1139	involves the transfer of multiple liens, an additional charge of
1140	up to $7.50 for each additional lien shall be charged. For
1141	recording the certificate and approving the bond, the clerk
1142	shall receive her or his usual statutory service charges as
1143	prescribed in s. 28.24. Any number of liens may be transferred
1144	to one such security.
1145	(2)  Any excess of the security over the aggregate amount
1146	of any judgments or decrees rendered plus costs actually taxed
1147	shall be repaid to the party filing the security or her or his
1148	successor in interest. Any deposit of money shall be considered
1149	as paid into court and shall be subject to the provisions of law
1150	relative to payments of money into court and the disposition of
1151	same.
1152	(3)  In any action pending under s. 475.809 to foreclose or
1153	discharge a lien any party having an interest in such security
1154	or the commercial real estate from which the lien was
1155	transferred may at any time and any number of times file a
1156	motion for an order to require additional security, reduction of
1157	security, change or substitution of sureties, payment of
1158	discharge thereof, or any other matter affecting said security.
1159	If the court finds that the amount of the deposit or bond in
1160	excess of the amount claimed in the lien notice is insufficient
1161	to pay the broker's attorney's fees and court costs incurred in
1162	the action to enforce the lien, the court shall increase the
1163	amount of the cash deposit or lien transfer bond.
1164	(4)  If a proceeding to enforce a transferred lien is not
1165	commenced within the time specified in s. 475.809 or if it
1166	appears that the transferred lien has been satisfied of record,
1167	the clerk shall return said security upon request of the person
1168	depositing or filing the same, or the insurer.
1169	475.813  Subordination of lien.--
1170	(1)  Nothing contained in this part precludes a broker from
1171	agreeing to subordinate a lien claimed by the broker under this
1172	part in favor of the holder of any mortgage or other lien
1173	against the owner's interest in the commercial real estate that
1174	is subject to the broker's lien.
1175	(2)  With or without the consent of the broker, the owner
1176	may subordinate a lien claimed by the broker for an automatic
1177	renewal commission in favor of the holder of a subsequent
1178	mortgage encumbering the owner's interest in the commercial real
1179	estate. The subordination instrument described in this
1180	subsection shall be made in writing and shall be recorded by the
1181	owner in the public records of the same county where the
1182	broker's lien notice was recorded.
1183	(3)  A broker's lien notice recorded against commercial
1184	real estate under this part is subordinate to any mortgage that
1185	has at any time secured any purchase money indebtedness,
1186	provided that the mortgage is made by the owner of the
1187	commercial real estate in favor of a person unrelated to the
1188	owner. This subordination provision affects only the relative
1189	priority of the broker's lien notice and the mortgage with
1190	respect to each other, and this provision does not affect their
1191	relative priority with respect to any other mortgage, lien,
1192	encumbrance, or other matter affecting the title to the
1193	commercial real estate.
1194	Section 3.  Paragraph (j) of subsection (1) of section
1195	475.42, Florida Statutes, is amended to read:
1196	475.42  Violations and penalties.--
1197	(1)  VIOLATIONS.--
1198	(j)  A broker or sales associate may not place, or cause to
1199	be placed, upon the public records of any county, any contract,
1200	assignment, deed, will, mortgage, affidavit, or other writing
1201	which purports to affect the title of, or encumber, any real
1202	property if the same is known to her or him to be false, void,
1203	or not authorized to be placed of record, or not executed in the
1204	form entitling it to be recorded, or the execution or recording
1205	whereof has not been authorized by the owner of the property,
1206	maliciously or for the purpose of collecting a commission, or to
1207	coerce the payment of money to the broker or sales associate or
1208	other person, or for any unlawful purpose. However, nothing in
1209	this paragraph shall be construed to prohibit a broker or a
1210	sales associate from recording a judgment rendered by a court of
1211	this state or to prohibit a broker from placing a lien on a
1212	property where expressly permitted by contractual agreement or
1213	otherwise allowed by law.
1214	Section 4.  This act shall take effect October 1, 2005.

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