HB 1009

1	A bill to be entitled
2	An act relating to real estate profession regulation;
3	amending s. 475.161, F.S.; providing for broker associate
4	or sales associate licensure as a professional limited
5	liability company; amending s. 475.181, F.S.; revising and
6	adding conditions for licensure; amending s. 475.183,
7	F.S.; providing continuing education requirements for
8	certain license renewal; requiring the Florida Real Estate
9	Commission to prescribe certain continuing education
10	courses; amending s. 475.25, F.S.; increasing a maximum
11	disciplinary administrative fine; providing additional
12	grounds for discipline for brokers; providing filing
13	limitations for administrative complaints against sales
14	associates; requiring the Department of Business and
15	Professional Regulation or the commission to provide
16	notification to certain persons upon the department's or
17	commission's filing of a formal complaint against a
18	licensee; amending s. 475.278, F.S.; revising the required
19	information on a transaction broker notice, a single agent
20	notice, and a no brokerage relationship notice; amending
21	s. 475.42, F.S.; removing a cross-reference to conform to
22	changes made by the act; amending s. 475.451, F.S.;
23	requiring schools teaching real estate practice to keep
24	certain records and documents and make them available to
25	the department; requiring certain personnel of schools
26	teaching real estate practice to deliver course rosters to
27	the department by a certain date; specifying the
28	information required in a course roster; amending s.
29	475.453, F.S.; revising a provision relating to rental
30	information given by a broker or sales associate to a
31	prospective tenant; amending s. 475.701, F.S.; revising
32	definitions; amending s. 475.707, F.S.; revising a
33	provision relating to commission notice recording;
34	amending s. 475.709, F.S.; clarifying provisions relating
35	to claim of commission; amending s. 475.711, F.S.;
36	clarifying provisions relating to actions involving
37	disputed reserved proceeds; amending s. 475.713, F.S.;
38	revising the award of costs and attorney's fees in civil
39	actions concerning commission; amending s. 475.715, F.S.;
40	revising the method by which an owner's net proceeds are
41	computed; amending s. 475.719, F.S.; removing an exception
42	from a buyer's broker provision shielding the rights and
43	remedies available to an owner, a buyer, or a buyer's
44	broker; amending s. 475.807, F.S.; revising a provision
45	relating to the recordation of lien notices; providing
46	that the recording of a broker's lien notice or any
47	extension thereof and any lis pendens shall not constitute
48	notice of the existence of any lease; amending s. 721.20,
49	F.S.; removing a cross-reference to conform to changes
50	made by the act; repealing s. 475.452, F.S., relating to
51	advance fees, deposit, accounting, penalty, and damages;
52	providing an effective date.
53
54	Be It Enacted by the Legislature of the State of Florida:
55
56	Section 1.  Section 475.161, Florida Statutes, is amended
57	to read:
58	475.161  Licensing of broker associates and sales
59	associates.--The commission shall license a broker associate or
60	sales associate as an individual or, upon the licensee providing
61	the commission with authorization from the Department of State,
62	as a professional corporation, limited liability company, or
63	professional limited liability company. A license shall be
64	issued in the licensee's legal name only and, when appropriate,
65	shall include the entity designation. This section shall not
66	operate to permit a broker associate or sales associate to
67	register or be licensed as a general partner, member, manager,
68	officer, or director of a brokerage firm under s. 475.15.
69	Section 2.  Subsection (2) of section 475.181, Florida
70	Statutes, is amended to read:
71	475.181  Licensure.--
72	(2)  The commission shall certify for licensure any
73	applicant who satisfies the requirements of ss. 475.17, 475.175,
74	and 475.180. The commission may refuse to certify any applicant
75	who has violated any of the provisions of s. 475.42 or who is
76	subject to discipline under s. 475.25. The application shall
77	expire 2 years 1 year after the date received if the applicant
78	does not pass fails to take the appropriate examination.
79	Additionally, if an applicant does not pass the licensing
80	examination within 2 years after the successful course
81	completion date, the applicant's successful course completion is
82	invalid for licensure.
83	Section 3.  Subsection (2) of section 475.183, Florida
84	Statutes, is amended to read:
85	475.183  Inactive status.--
86	(2)(a)  A licensee may reactivate a license that has been
87	involuntarily inactive for 12 months or less by satisfactorily
88	completing at least 14 hours of a commission-prescribed
89	continuing education course. Notwithstanding the provisions of
90	s. 455.271, a licensee may reactivate a license that has been
91	involuntarily inactive for more than 12 months but fewer than 24
92	months by satisfactorily completing 28 hours of a commission-
93	prescribed education course.
94	(b)  Any license that which has been involuntarily inactive
95	for more than 2 years shall automatically expire. Once a license
96	expires, it becomes null and void without any further action by
97	the commission or department. Ninety days prior to expiration of
98	the license, the department shall give notice to the licensee.
99	The commission shall prescribe by rule a fee not to exceed $100
100	for the late renewal of an involuntarily inactive license. The
101	department shall collect the current renewal fee for each
102	renewal period in which the license was involuntarily inactive
103	in addition to any applicable late renewal fee.
104	Section 4.  Subsections (1) and (5) of section 475.25,
105	Florida Statutes, are amended, subsection (6) is renumbered as
106	subsection (7), and a new subsection (6) is added to that
107	section, to read:
108	475.25  Discipline.--
109	(1)  The commission may deny an application for licensure,
110	registration, or permit, or renewal thereof; may place a
111	licensee, registrant, or permittee on probation; may suspend a
112	license, registration, or permit for a period not exceeding 10
113	years; may revoke a license, registration, or permit; may impose
114	an administrative fine not to exceed $5,000 $1,000 for each
115	count or separate offense; and may issue a reprimand, and any or
116	all of the foregoing, if it finds that the licensee, registrant,
117	permittee, or applicant:
118	(a)  Has violated any provision of s. 455.227(1) or s.
119	475.42. However, licensees under this part are exempt from the
120	provisions of s. 455.227(1)(i).
121	(b)  Has been guilty of fraud, misrepresentation,
122	concealment, false promises, false pretenses, dishonest dealing
123	by trick, scheme, or device, culpable negligence, or breach of
124	trust in any business transaction in this state or any other
125	state, nation, or territory; has violated a duty imposed upon
126	her or him by law or by the terms of a listing contract,
127	written, oral, express, or implied, in a real estate
128	transaction; has aided, assisted, or conspired with any other
129	person engaged in any such misconduct and in furtherance
130	thereof; or has formed an intent, design, or scheme to engage in
131	any such misconduct and committed an overt act in furtherance of
132	such intent, design, or scheme. It is immaterial to the guilt of
133	the licensee that the victim or intended victim of the
134	misconduct has sustained no damage or loss; that the damage or
135	loss has been settled and paid after discovery of the
136	misconduct; or that such victim or intended victim was a
137	customer or a person in confidential relation with the licensee
138	or was an identified member of the general public.
139	(c)  Has advertised property or services in a manner which
140	is fraudulent, false, deceptive, or misleading in form or
141	content. The commission may adopt rules defining methods of
142	advertising that violate this paragraph.
143	(d)1.  Has failed to account or deliver to any person,
144	including a licensee under this chapter, at the time which has
145	been agreed upon or is required by law or, in the absence of a
146	fixed time, upon demand of the person entitled to such
147	accounting and delivery, any personal property such as money,
148	fund, deposit, check, draft, abstract of title, mortgage,
149	conveyance, lease, or other document or thing of value,
150	including a share of a real estate commission if a civil
151	judgment relating to the practice of the licensee's profession
152	has been obtained against the licensee and said judgment has not
153	been satisfied in accordance with the terms of the judgment
154	within a reasonable time, or any secret or illegal profit, or
155	any divisible share or portion thereof, which has come into the
156	licensee's hands and which is not the licensee's property or
157	which the licensee is not in law or equity entitled to retain
158	under the circumstances. However, if the licensee, in good
159	faith, entertains doubt as to what person is entitled to the
160	accounting and delivery of the escrowed property, or if
161	conflicting demands have been made upon the licensee for the
162	escrowed property, which property she or he still maintains in
163	her or his escrow or trust account, the licensee shall promptly
164	notify the commission of such doubts or conflicting demands and
165	shall promptly:
166	a.  Request that the commission issue an escrow
167	disbursement order determining who is entitled to the escrowed
168	property;
169	b.  With the consent of all parties, submit the matter to
170	arbitration;
171	c.  By interpleader or otherwise, seek adjudication of the
172	matter by a court; or
173	d.  With the written consent of all parties, submit the
174	matter to mediation. The department may conduct mediation or may
175	contract with public or private entities for mediation services.
176	However, the mediation process must be successfully completed
177	within 90 days following the last demand or the licensee shall
178	promptly employ one of the other escape procedures contained in
179	this section. Payment for mediation will be as agreed to in
180	writing by the parties. The department may adopt rules to
181	implement this section.
182
183	If the licensee promptly employs one of the escape procedures
184	contained herein and abides by the order or judgment resulting
185	therefrom, no administrative complaint may be filed against the
186	licensee for failure to account for, deliver, or maintain the
187	escrowed property. Under certain circumstances, which the
188	commission shall set forth by rule, a licensee may disburse
189	property from the licensee's escrow account without notifying
190	the commission or employing one of the procedures listed in sub-
191	subparagraphs a.-d. If the buyer of a residential condominium
192	unit delivers to a licensee written notice of the buyer's intent
193	to cancel the contract for sale and purchase, as authorized by
194	s. 718.503, or if the buyer of real property in good faith fails
195	to satisfy the terms in the financing clause of a contract for
196	sale and purchase, the licensee may return the escrowed property
197	to the purchaser without notifying the commission or initiating
198	any of the procedures listed in sub-subparagraphs a.-d.
199	2.  Has failed to deposit money in an escrow account when
200	the licensee is the purchaser of real estate under a contract
201	where the contract requires the purchaser to place deposit money
202	in an escrow account to be applied to the purchase price if the
203	sale is consummated.
204	(e)  Has violated any of the provisions of this chapter or
205	any lawful order or rule made or issued under the provisions of
206	this chapter or chapter 455.
207	(f)  Has been convicted or found guilty of, or entered a
208	plea of nolo contendere to, regardless of adjudication, a crime
209	in any jurisdiction which directly relates to the activities of
210	a licensed broker or sales associate, or involves moral
211	turpitude or fraudulent or dishonest dealing. The record of a
212	conviction certified or authenticated in such form as to be
213	admissible in evidence under the laws of the state shall be
214	admissible as prima facie evidence of such guilt.
215	(g)  Has had a broker's or sales associate's license
216	revoked, suspended, or otherwise acted against, or has had an
217	application for such licensure denied, by the real estate
218	licensing agency of another state, territory, or country.
219	(h)  Has shared a commission with, or paid a fee or other
220	compensation to, a person not properly licensed as a broker,
221	broker associate, or sales associate under the laws of this
222	state, for the referral of real estate business, clients,
223	prospects, or customers, or for any one or more of the services
224	set forth in s. 475.01(1)(a). For the purposes of this section,
225	it is immaterial that the person to whom such payment or
226	compensation is given made the referral or performed the service
227	from within this state or elsewhere; however, a licensed broker
228	of this state may pay a referral fee or share a real estate
229	brokerage commission with a broker licensed or registered under
230	the laws of a foreign state so long as the foreign broker does
231	not violate any law of this state.
232	(i)  Has become temporarily incapacitated from acting as a
233	broker or sales associate with safety to investors or those in a
234	fiduciary relation with her or him because of drunkenness, use
235	of drugs, or temporary mental derangement; but suspension of a
236	license in such a case shall be only for the period of such
237	incapacity.
238	(j)  Has rendered an opinion that the title to any property
239	sold is good or merchantable, except when correctly based upon a
240	current opinion of a licensed attorney at law, or has failed to
241	advise a prospective purchaser to consult her or his attorney on
242	the merchantability of the title or to obtain title insurance.
243	(k)  Has failed, if a broker, to immediately place, upon
244	receipt, any money, fund, deposit, check, or draft entrusted to
245	her or him by any person dealing with her or him as a broker in
246	escrow with a title company, banking institution, credit union,
247	or savings and loan association located and doing business in
248	this state, or to deposit such funds in a trust or escrow
249	account maintained by her or him with some bank, credit union,
250	or savings and loan association located and doing business in
251	this state, wherein the funds shall be kept until disbursement
252	thereof is properly authorized; or has failed, if a sales
253	associate, to immediately place with her or his registered
254	employer any money, fund, deposit, check, or draft entrusted to
255	her or him by any person dealing with her or him as agent of the
256	registered employer. The commission shall establish rules to
257	provide for records to be maintained by the broker and the
258	manner in which such deposits shall be made. A broker may place
259	and maintain up to $5,000 of personal or brokerage funds in the
260	broker's property management escrow account and up to $1,000 of
261	personal or brokerage funds in the broker's sales escrow
262	account. A broker shall be provided a reasonable amount of time
263	to correct escrow errors if there is no shortage of funds and
264	such errors pose no significant threat to economically harm the
265	public. It is the intent of the Legislature that, in the event
266	of legal proceedings concerning a broker's escrow account, the
267	disbursement of escrowed funds not be delayed due to any dispute
268	over the personal or brokerage funds that may be present in the
269	escrow account.
270	(l)  Has made or filed a report or record which the
271	licensee knows to be false, has willfully failed to file a
272	report or record required by state or federal law, has willfully
273	impeded or obstructed such filing, or has induced another person
274	to impede or obstruct such filing; but such reports or records
275	shall include only those which are signed in the capacity of a
276	licensed broker or sales associate.
277	(m)  Has obtained a license by means of fraud,
278	misrepresentation, or concealment.
279	(n)  Is confined in any county jail, postadjudication; is
280	confined in any state or federal prison or mental institution;
281	is under home confinement ordered in lieu of institutional
282	confinement; or, through mental disease or deterioration, can no
283	longer safely be entrusted to competently deal with the public.
284	(o)  Has been found guilty, for a second time, of any
285	misconduct that warrants her or his suspension or has been found
286	guilty of a course of conduct or practices which show that she
287	or he is so incompetent, negligent, dishonest, or untruthful
288	that the money, property, transactions, and rights of investors,
289	or those with whom she or he may sustain a confidential
290	relation, may not safely be entrusted to her or him.
291	(p)  Has failed to inform the commission in writing within
292	30 days after pleading guilty or nolo contendere to, or being
293	convicted or found guilty of, any felony.
294	(q)  Has violated any provision of s. 475.2755 or s.
295	475.278, including the duties owed under those sections.
296	(r)  Has failed in any written listing agreement to include
297	a definite expiration date, description of the property, price
298	and terms, fee or commission, and a proper signature of the
299	principal(s); and has failed to give the principal(s) a legible,
300	signed, true and correct copy of the listing agreement within 24
301	hours of obtaining the written listing agreement. The written
302	listing agreement shall contain no provision requiring the
303	person signing the listing to notify the broker of the intention
304	to cancel the listing after such definite expiration date.
305	(s)  Has had a registration suspended, revoked, or
306	otherwise acted against in any jurisdiction. The record of the
307	disciplinary action certified or authenticated in such form as
308	to be admissible in evidence under the laws of the state shall
309	be admissible as prima facie evidence of such disciplinary
310	action.
311	(t)  Has violated any standard for the development or
312	communication of a real estate appraisal or other provision of
313	the Uniform Standards of Professional Appraisal Practice, as
314	defined in s. 475.611, as approved and adopted by the Appraisal
315	Standards Board of the Appraisal Foundation, as defined in s.
316	475.611. This paragraph does not apply to a real estate broker
317	or sales associate who, in the ordinary course of business,
318	performs a comparative market analysis, gives a broker price
319	opinion, or gives an opinion of value of real estate. However,
320	in no event may this comparative market analysis, broker price
321	opinion, or opinion of value of real estate be referred to as an
322	appraisal, as defined in s. 475.611.
323	(u)  Has failed, if a broker, to reasonably manage or
324	supervise any broker associate or sales associate whose license
325	is affiliated with such broker.
326	(v)  Has failed, if a broker, to review the brokerage's
327	trust accounting practices in order to ensure compliance with
328	this chapter.
329	(5)  An administrative complaint against a broker, or
330	broker associate, or sales associate shall must be filed within
331	5 years after the time of the act giving rise to the complaint
332	or within 5 years after the time the act is discovered or should
333	have been discovered with the exercise of due diligence.
334	(6)  The department shall promptly notify a licensee's
335	broker or employer, as defined in this part, in writing any time
336	the department files a formal complaint against a licensee. The
337	notice required in this subsection shall be provided by the
338	commission in those instances where the commission files a
339	formal complaint against a licensee.
340	(7)(6)  The commission shall promptly report to the proper
341	prosecuting authority any criminal violation of any statute
342	relating to the practice of a real estate profession regulated
343	by the commission.
344	Section 5.  Paragraph (c) of subsection (2), paragraph (c)
345	of subsection (3), and paragraph (c) of subsection (4) of
346	section 475.278, Florida Statutes, are amended to read:
347	475.278  Authorized brokerage relationships; presumption of
348	transaction brokerage; required disclosures.--
349	(2)  TRANSACTION BROKER RELATIONSHIP.--
350	(c)  Contents of disclosure.--The required notice given
351	under paragraph (b) must include the following information in
352	the following form:
353
354	IMPORTANT NOTICE
355
356	FLORIDA LAW REQUIRES THAT REAL ESTATE LICENSEES PROVIDE THIS
357	NOTICE TO POTENTIAL SELLERS AND BUYERS OF REAL ESTATE.
358
359	You should not assume that any real estate broker or sales
360	associate represents you unless you agree to engage a real
361	estate licensee in an authorized brokerage relationship, either
362	as a single agent or as a transaction broker. You are advised
363	not to disclose any information you want to be held in
364	confidence until you make a decision on representation.
365
366	TRANSACTION BROKER NOTICE
367
368	FLORIDA LAW REQUIRES THAT REAL ESTATE LICENSEES OPERATING AS
369	TRANSACTION BROKERS DISCLOSE TO BUYERS AND SELLERS THEIR ROLE
370	AND DUTIES IN PROVIDING A LIMITED FORM OF REPRESENTATION.
371
372	As a transaction broker,   (insert name of Real Estate Firm and
373	its Associates)  , provides to you a limited form of
374	representation that includes the following duties:
375	1.  Dealing honestly and fairly;
376	2.  Accounting for all funds;
377	3.  Using skill, care, and diligence in the transaction;
378	4.  Disclosing all known facts that materially affect the
379	value of residential real property and are not readily
380	observable to the buyer;
381	5.  Presenting all offers and counteroffers in a timely
382	manner, unless a party has previously directed the licensee
383	otherwise in writing;
384	6.  Limited confidentiality, unless waived in writing by a
385	party. This limited confidentiality will prevent disclosure that
386	the seller will accept a price less than the asking or listed
387	price, that the buyer will pay a price greater than the price
388	submitted in a written offer, of the motivation of any party for
389	selling or buying property, that a seller or buyer will agree to
390	financing terms other than those offered, or of any other
391	information requested by a party to remain confidential; and
392	7.  Any additional duties that are entered into by this or
393	by separate written agreement.
394
395	Limited representation means that a buyer or seller is not
396	responsible for the acts of the licensee. Additionally, parties
397	are giving up their rights to the undivided loyalty of the
398	licensee. This aspect of limited representation allows a
399	licensee to facilitate a real estate transaction by assisting
400	both the buyer and the seller, but a licensee will not work to
401	represent one party to the detriment of the other party when
402	acting as a transaction broker to both parties.
403
	__________Date ______________________________ Signature
404
	______________________________ Signature
405
406	This paragraph expires July 1, 2008.
407	(3)  SINGLE AGENT RELATIONSHIP.--
408	(c)  Contents of disclosure.--
409	1.  Single agent duties disclosure.--The notice required
410	under subparagraph (b)1. must include the following information
411	in the following form:
412
413	IMPORTANT NOTICE
414
415	FLORIDA LAW REQUIRES THAT REAL ESTATE LICENSEES PROVIDE THIS
416	NOTICE TO POTENTIAL SELLERS AND BUYERS OF REAL ESTATE.
417
418	You should not assume that any real estate broker or sales
419	associate represents you unless you agree to engage a real
420	estate licensee in an authorized brokerage relationship, either
421	as a single agent or as a transaction broker. You are advised
422	not to disclose any information you want to be held in
423	confidence until you make a decision on representation.
424
425	SINGLE AGENT NOTICE
426
427	FLORIDA LAW REQUIRES THAT REAL ESTATE LICENSEES OPERATING AS
428	SINGLE AGENTS DISCLOSE TO BUYERS AND SELLERS THEIR DUTIES.
429
430	As a single agent,   (insert name of Real Estate Entity and
431	its Associates)   owe to you the following duties:
432	1.  Dealing honestly and fairly;
433	2.  Loyalty;
434	3.  Confidentiality;
435	4.  Obedience;
436	5.  Full disclosure;
437	6.  Accounting for all funds;
438	7.  Skill, care, and diligence in the transaction;
439	8.  Presenting all offers and counteroffers in a timely
440	manner, unless a party has previously directed the licensee
441	otherwise in writing; and
442	9.  Disclosing all known facts that materially affect the
443	value of residential real property and are not readily
444	observable.
445
	__________Date ______________________________ Signature
446
447	2.  Transition disclosure.--To gain the principal's written
448	consent to a change in relationship, a licensee must use the
449	following disclosure:
450
451	CONSENT TO TRANSITION TO
452	TRANSACTION BROKER
453
454	FLORIDA LAW ALLOWS REAL ESTATE LICENSEES WHO REPRESENT A BUYER
455	OR SELLER AS A SINGLE AGENT TO CHANGE FROM A SINGLE AGENT
456	RELATIONSHIP TO A TRANSACTION BROKERAGE RELATIONSHIP IN ORDER
457	FOR THE LICENSEE TO ASSIST BOTH PARTIES IN A REAL ESTATE
458	TRANSACTION BY PROVIDING A LIMITED FORM OF REPRESENTATION TO
459	BOTH THE BUYER AND THE SELLER. THIS CHANGE IN RELATIONSHIP
460	CANNOT OCCUR WITHOUT YOUR PRIOR WRITTEN CONSENT.
461
462	As a transaction broker,   (insert name of Real Estate Firm and
463	its Associates)  , provides to you a limited form of
464	representation that includes the following duties:
465	1.  Dealing honestly and fairly;
466	2.  Accounting for all funds;
467	3.  Using skill, care, and diligence in the transaction;
468	4.  Disclosing all known facts that materially affect the
469	value of residential real property and are not readily
470	observable to the buyer;
471	5.  Presenting all offers and counteroffers in a timely
472	manner, unless a party has previously directed the licensee
473	otherwise in writing;
474	6.  Limited confidentiality, unless waived in writing by a
475	party. This limited confidentiality will prevent disclosure that
476	the seller will accept a price less than the asking or listed
477	price, that the buyer will pay a price greater than the price
478	submitted in a written offer, of the motivation of any party for
479	selling or buying property, that a seller or buyer will agree to
480	financing terms other than those offered, or of any other
481	information requested by a party to remain confidential; and
482	7.  Any additional duties that are entered into by this or
483	by separate written agreement.
484
485	Limited representation means that a buyer or seller is not
486	responsible for the acts of the licensee. Additionally, parties
487	are giving up their rights to the undivided loyalty of the
488	licensee. This aspect of limited representation allows a
489	licensee to facilitate a real estate transaction by assisting
490	both the buyer and the seller, but a licensee will not work to
491	represent one party to the detriment of the other party when
492	acting as a transaction broker to both parties.
493
494	____________________I agree that my agent may assume the role
495	and duties of a transaction broker. [must be initialed or
496	signed]
497	(4)  NO BROKERAGE RELATIONSHIP.--
498	(c)  Contents of disclosure.--The notice required under
499	paragraph (b) must include the following information in the
500	following form:
501
502	IMPORTANT NOTICE
503
504	FLORIDA LAW REQUIRES THAT REAL ESTATE LICENSEES PROVIDE THIS
505	NOTICE TO POTENTIAL SELLERS AND BUYERS OF REAL ESTATE.
506
507	You should not assume that any real estate broker or sales
508	associate represents you unless you agree to engage a real
509	estate licensee in an authorized brokerage relationship, either
510	as a single agent or as a transaction broker. You are advised
511	not to disclose any information you want to be held in
512	confidence until you decide on representation.
513
514	NO BROKERAGE RELATIONSHIP NOTICE
515
516	FLORIDA LAW REQUIRES THAT REAL ESTATE LICENSEES WHO HAVE NO
517	BROKERAGE RELATIONSHIP WITH A POTENTIAL SELLER OR BUYER DISCLOSE
518	THEIR DUTIES TO SELLERS AND BUYERS.
519
520	As a real estate licensee who has no brokerage relationship
521	with you,   (insert name of Real Estate Entity and its
522	Associates)   owe to you the following duties:
523
524	1.  Dealing honestly and fairly;
525	2.  Disclosing all known facts that materially affect the
526	value of residential real property which are not readily
527	observable to the buyer.
528	3.  Accounting for all funds entrusted to the licensee.
529
530	(Date)         (Signature)
531
532	Section 6.  Paragraph (n) of subsection (1) of section
533	475.42, Florida Statutes, is amended to read:
534	475.42  Violations and penalties.--
535	(1)  VIOLATIONS.--
536	(n)  A broker or sales associate may not enter into any
537	listing or other agreement regarding her or his services in
538	connection with the resale of a timeshare period unless the
539	broker or sales associate fully and fairly discloses all
540	material aspects of the agreement to the owner of the timeshare
541	period and fully complies with the provisions of s. 475.452.
542	Further, a broker or sales associate may not use any form of
543	contract or purchase and sale agreement in connection with the
544	resale of a timeshare period unless the contract or purchase and
545	sale agreement fully and fairly discloses all material aspects
546	of the timeshare plan and the rights and obligations of both
547	buyer and seller. The commission is authorized to adopt rules
548	pursuant to chapter 120 as necessary to implement, enforce, and
549	interpret this paragraph.
550	Section 7.  Subsections (8) and (9) are added to section
551	475.451, Florida Statutes, to read:
552	475.451  Schools teaching real estate practice.--
553	(8)  Beginning October 1, 2006, each person, school, or
554	institution permitted under this section is required to keep
555	registration records, course rosters, attendance records, a file
556	copy of each examination and progress test, and all student
557	answer sheets for a period of at least 3 years subsequent to the
558	beginning of each course and make them available to the
559	department for inspection and copying upon request.
560	(9)(a)  Each school permitholder of a proprietary real
561	estate school, each chief administrative person of such an
562	institution, or each course sponsor shall deliver to the
563	department, in a format acceptable to the department, a copy of
564	the classroom course roster of courses that require satisfactory
565	completion of an examination no later than 30 days beyond the
566	end of the calendar month in which the course was completed.
567	(b)  The course roster shall consist of the institution or
568	school name and permit number, if applicable, the instructor's
569	name and permit number, if applicable, course title, beginning
570	and ending dates of the course, number of course hours, course
571	location, if applicable, each student's full name and license
572	number, if applicable, each student's mailing address, and the
573	numerical grade each student achieved. The course roster shall
574	also include the signature of the school permitholder, the chief
575	administrative person, or the course sponsor.
576	Section 8.  Subsection (1) of section 475.453, Florida
577	Statutes, is amended to read:
578	475.453  Rental information; contract or receipt; refund;
579	penalty.--
580	(1)  Each broker or sales associate who attempts to
581	negotiate a rental, or who furnishes a rental information list
582	to a prospective tenant, for a fee paid by the prospective
583	tenant, shall provide such prospective tenant with a contract or
584	receipt, which contract or receipt contains a provision for the
585	repayment of any amount over 25 percent of the fee to the
586	prospective tenant if the prospective tenant does not obtain a
587	rental. If the rental information list provided by the broker or
588	sales associate to a prospective tenant is not current or
589	accurate in any material respect, the full fee shall be repaid
590	to the prospective tenant upon demand. A demand from the
591	prospective tenant for the return of the fee, or any part
592	thereof, shall be made within 30 days following the day on which
593	the real estate broker or sales associate has contracted to
594	perform services to the prospective tenant. The contract or
595	receipt shall also conform to the guidelines adopted by the
596	commission in order to effect disclosure of material information
597	regarding the service to be provided to the prospective tenant.
598	Section 9.  Subsections (10) and (12) of section 475.701,
599	Florida Statutes, are amended to read:
600	475.701  Definitions.--As used in this part:
601	(10)  "Disputed reserved proceeds" means the portion of the
602	owner's net proceeds reserved by a closing agent under s.
603	475.709 that the owner disputes the broker's right to receive
604	such reserved proceeds under s. 475.709(5).
605	(12)  "Owner's net proceeds" means the gross sales proceeds
606	that the owner is entitled to receive from the disposition of
607	any commercial real estate specified in a brokerage agreement,
608	less all of the following:
609	(a)  The amount of Any money secured by that is required to
610	pay any encumbrance, claim, or lien that has priority over the
611	recorded commission notice as provided in s. 475.715 other than
612	an encumbrance, claim, or lien that the buyer of the commercial
613	real estate authorizes to remain after the disposition.
614	(b)  Any costs incurred by the owner to close the
615	disposition, including, but not limited to, real estate transfer
616	tax, title insurance premiums, ad valorem taxes and assessments,
617	and escrow fees payable by the owner pursuant to an agreement
618	with the buyer.
619	Section 10.  Subsection (3) of section 475.707, Florida
620	Statutes, is amended to read:
621	475.707  Recording commission notice; effectiveness.--
622	(3)  A commission notice recorded under this part expires 1
623	year after the date of recording, unless the owner remains
624	obligated to pay a commission to the broker brokerage agreement
625	remains effective after the expiration date of the commission
626	notice and the broker records an extension notice in the same
627	public records within the last 60 days before such expiration
628	date. An extension notice shall refer to the recording
629	information of the original commission notice, shall state that
630	the owner remains obligated to pay a commission to the broker
631	brokerage agreement remains effective, and shall include the
632	information and be executed in the manner as required by s.
633	475.705(1) for the original commission notice. A timely recorded
634	extension notice shall extend the expiration date of the
635	original recorded commission notice by 1 additional year.
636	Successive extension notices may be recorded for so long as the
637	owner remains obligated to pay a commission to the broker
638	brokerage agreement remains effective between the broker and the
639	owner. Within 10 days after recording an extension notice, the
640	broker shall deliver a copy thereof to the owner.
641	Section 11.  Subsection (6) of section 475.709, Florida
642	Statutes, is amended to read:
643	475.709  Duties of closing agent; reservation of owner's
644	net proceeds.--
645	(6)  The commission claimed in the commission notice shall
646	be deemed confirmed by the owner, and the closing agent shall
647	release the reserved proceeds to the broker, if the closing
648	agent is required pursuant to subsection (1) to reserve any or
649	all of the owner's net proceeds, and if all of the following
650	conditions have been met:
651	(a)  Five days have passed after the closing.
652	(b)  The owner has neither confirmed nor disputed the
653	claimed commission to the closing agent.
654	(c)  The closing agent receives reasonably satisfactory
655	evidence that the broker delivered a copy of the commission
656	notice to the owner in accordance with s. 475.705.
657	Section 12.  Subsection (1) of section 475.711, Florida
658	Statutes, is amended to read:
659	475.711  Interpleader or other proceedings; deposit of
660	reserved proceeds in court registry; discharge of closing agent
661	from further liability.--
662	(1)  The closing agent shall, by interpleader action or
663	other legal proceeding, seek adjudication of the rights of the
664	parties with respect to disputed reserved proceeds by the county
665	court or circuit court, whichever may have jurisdiction of
666	controversies in the amount of the disputed reserved proceeds,
667	in a county where all or a portion of the commercial real estate
668	is located if, after the closing of a transaction for the
669	disposition of the commercial real estate, all of the following
670	conditions are met:
671	(a)  The closing agent has reserved all or a portion of the
672	owner's net proceeds pursuant to s. 475.709 and the owner
673	disputes the release to the broker of all or any portion of the
674	reserved proceeds.
675	(b)  The owner and the broker have not agreed in writing,
676	within 5 days after the closing, regarding the closing agent's
677	release of the disputed reserved proceeds.
678	(c)  Neither the owner nor the broker have commenced a
679	civil action to determine the rights of the parties with respect
680	to the disputed reserved proceeds.
681	Section 13.  Subsection (5) of section 475.713, Florida
682	Statutes, is amended to read:
683	475.713  Civil action concerning commission; order to show
684	cause; hearing; release of proceeds; award of costs and
685	attorney's fees.--
686	(5)(a)  In a civil action commenced by the owner or the
687	broker under this section or in an interpleader action or other
688	proceeding commenced by the closing agent under s. 475.711, the
689	owner or the broker that is not the prevailing party shall be
690	required to pay:
691	1.  The costs and reasonable attorney's fees incurred in
692	the action by the prevailing party.
693	2.  The costs and reasonable attorney's fees incurred in
694	the action by the closing agent.
695	3.  The amount of any costs, recording charges, and service
696	charges of the clerk of court that were deducted from the
697	disputed reserved proceeds under s. 475.711(2) in determining
698	the net amount thereof deposited into the registry of the court.
699	(b)  If the court determines that neither the owner nor the
700	broker is the prevailing party, the amounts set forth in
701	subparagraphs (a)2.1. and 3.2. shall be divided equally between
702	and paid by the owner and the broker.
703	Section 14.  Section 475.715, Florida Statutes, is amended
704	to read:
705	475.715  Priority of recorded commission notice.--All
706	statutory liens, consensual liens, mortgages, deeds of trust,
707	assignments of rents, and other encumbrances, including all
708	advances or charges made or accruing thereunder, whether
709	voluntary or obligatory, and all modifications, extensions,
710	renewals, and replacements thereof, recorded prior to the
711	recording of a commission notice pursuant to the provisions of
712	s. 475.707, have priority over the commission notice. The
713	closing agent shall compute the owner's net proceeds by
714	subtracting from the gross sales proceeds, and the amount
715	required to discharge any such prior recorded lien and the
716	amount of money secured by any such prior recorded lien that
717	liens shall be subtracted from gross sales proceeds in computing
718	the owner's net proceeds unless the buyer permits the same to
719	remain a lien against the title to the commercial real estate. A
720	prior recorded lien includes, without limitation, a valid
721	construction lien claim that is recorded after the recording of
722	the broker's commission notice but which relates back to a
723	notice of commencement recorded under s. 713.13 prior to the
724	recording date of the broker's commission notice.
725	Section 15.  Subsection (3) of section 475.719, Florida
726	Statutes, is amended to read:
727	475.719  Buyer's broker.--As used in this section, the term
728	"buyer's broker" means a broker that is entitled to receive
729	payment from the buyer of commercial real estate of any fee or
730	other compensation for licensed services, as specified in a
731	written contract made between the buyer and the broker on or
732	after the effective date of this act relating to the buyer's
733	purchase of the commercial real estate.
734	(3)  No such notice given by the buyer's broker pursuant to
735	subsection (2) shall constitute a tortious interference with the
736	sale or disposition or financing of the commercial real estate,
737	except this section shall not affect the rights and remedies
738	otherwise available to the owner, the buyer, or the buyer's
739	broker under other applicable law.
740	Section 16.  Paragraph (b) of subsection (8) of section
741	475.807, Florida Statutes, is amended, and subsection (9) is
742	added to that section, to read:
743	475.807  Recording lien notice; effectiveness.--
744	(8)
745	(b)  To the extent that a lien notice recorded by a broker
746	under this part claims an automatic renewal commission that is
747	earned but not then payable, the lien notice expires 10 years
748	after the date of recording, unless within that time the broker
749	commences an action to foreclose the lien under s. 475.809 and
750	records a notice of lis pendens in the public records of the
751	county where the lien notice was recorded. If the owner remains
752	obligated to pay a commission to the broker brokerage agreement
753	remains effective, the broker may extend the expiration date of
754	a lien notice for an automatic renewal commission by recording
755	an extension notice in the same public records within the last 6
756	months before such expiration date. An extension notice shall
757	refer to the recording information of the original lien notice,
758	shall state that the owner remains obligated to pay a commission
759	to the broker brokerage agreement remains effective, and shall
760	include the same information and be executed in the same manner
761	as required by s. 475.805(1) for the original lien notice. A
762	timely recorded extension notice shall extend the expiration
763	date of the original recorded lien notice by 10 additional
764	years. Successive extension notices may be recorded for so long
765	as the owner remains obligated to pay a commission to the broker
766	brokerage agreement remains effective between the broker and the
767	owner. Within 10 days after recording an extension notice, the
768	broker shall deliver a copy thereof to the owner.
769	(9)  Neither the recording of a broker's lien notice or any
770	extension thereof nor the recording of any lis pendens to
771	foreclose a broker's lien thereunder shall constitute notice to
772	any creditor or subsequent purchaser pursuant to s. 695.01 or
773	chapter 712 of the existence of any lease described in the lien
774	notice, extension notice, or lis pendens.
775	Section 17.  Subsection (6) of section 721.20, Florida
776	Statutes, is amended to read:
777	721.20  Licensing requirements; suspension or revocation of
778	license; exceptions to applicability; collection of advance fees
779	for listings unlawful.--
780	(6)  Notwithstanding the provisions of s. 475.452, It is
781	unlawful for any real estate broker, broker associate, or sales
782	associate to collect any advance fee for the listing of any
783	timeshare estate or timeshare license.
784	Section 18.  Section 475.452, Florida Statutes, is
785	repealed.
786	Section 19.  This act shall take effect July 1, 2006.

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