HB 1009

CS

CHAMBER ACTION

1	The Commerce Council recommends the following:
2	Council/Committee Substitute
3	Remove the entire bill and insert:
4	A bill to be entitled
5	An act relating to real estate profession regulation;
6	amending s. 475.161, F.S.; providing for broker associate
7	or sales associate licensure as a professional limited
8	liability company; amending s. 475.181, F.S.; revising and
9	adding conditions for licensure; amending s. 475.183,
10	F.S.; providing continuing education requirements for
11	certain license renewal; requiring the Florida Real Estate
12	Commission to prescribe certain continuing education
13	courses; amending s. 475.25, F.S.; increasing a maximum
14	disciplinary administrative fine; providing additional
15	grounds for discipline for brokers; providing filing
16	limitations for administrative complaints against sales
17	associates; requiring the Department of Business and
18	Professional Regulation or the commission to provide
19	notification to certain persons upon the department's or
20	commission's filing of a formal complaint against a
21	licensee; amending s. 475.278, F.S.; revising the required
22	information on a transaction broker notice, a single agent
23	notice, and a no brokerage relationship notice; amending
24	s. 475.42, F.S.; removing a cross-reference to conform to
25	changes made by the act; amending s. 475.451, F.S.;
26	requiring schools teaching real estate practice to keep
27	certain records and documents and make them available to
28	the department; requiring certain personnel of schools
29	teaching real estate practice to deliver course rosters to
30	the department by a certain date; specifying the
31	information required in a course roster; amending s.
32	475.453, F.S.; revising a provision relating to rental
33	information given by a broker or sales associate to a
34	prospective tenant; amending s. 475.701, F.S.; revising
35	definitions; amending s. 475.707, F.S.; revising a
36	provision relating to commission notice recording;
37	amending s. 475.709, F.S.; clarifying provisions relating
38	to claim of commission; amending s. 475.711, F.S.;
39	clarifying provisions relating to actions involving
40	disputed reserved proceeds; amending s. 475.713, F.S.;
41	revising the award of costs and attorney's fees in civil
42	actions concerning commission; amending s. 475.715, F.S.;
43	revising the method by which an owner's net proceeds are
44	computed; amending s. 475.719, F.S.; removing an exception
45	from a buyer's broker provision shielding the rights and
46	remedies available to an owner, a buyer, or a buyer's
47	broker; amending s. 475.807, F.S.; revising a provision
48	relating to the recordation of lien notices; providing
49	that the recording of a broker's lien notice or any
50	extension thereof and any lis pendens shall not constitute
51	notice of the existence of any lease; amending s. 721.20,
52	F.S.; removing a cross-reference to conform to changes
53	made by the act; repealing s. 475.452, F.S., relating to
54	advance fees, deposit, accounting, penalty, and damages;
55	providing an effective date.
56
57	Be It Enacted by the Legislature of the State of Florida:
58
59	Section 1.  Section 475.161, Florida Statutes, is amended
60	to read:
61	475.161  Licensing of broker associates and sales
62	associates.--The commission shall license a broker associate or
63	sales associate as an individual or, upon the licensee providing
64	the commission with authorization from the Department of State,
65	as a professional corporation, limited liability company, or
66	professional limited liability company. A license shall be
67	issued in the licensee's legal name only and, when appropriate,
68	shall include the entity designation. This section shall not
69	operate to permit a broker associate or sales associate to
70	register or be licensed as a general partner, member, manager,
71	officer, or director of a brokerage firm under s. 475.15.
72	Section 2.  Subsection (2) of section 475.181, Florida
73	Statutes, is amended to read:
74	475.181  Licensure.--
75	(2)  The commission shall certify for licensure any
76	applicant who satisfies the requirements of ss. 475.17, 475.175,
77	and 475.180. The commission may refuse to certify any applicant
78	who has violated any of the provisions of s. 475.42 or who is
79	subject to discipline under s. 475.25. The application shall
80	expire 2 years 1 year after the date received if the applicant
81	does not pass fails to take the appropriate examination.
82	Additionally, if an applicant does not pass the licensing
83	examination within 2 years after the successful course
84	completion date, the applicant's successful course completion is
85	invalid for licensure.
86	Section 3.  Subsection (2) of section 475.183, Florida
87	Statutes, is amended to read:
88	475.183  Inactive status.--
89	(2)(a)  A licensee may reactivate a license that has been
90	involuntarily inactive for 12 months or less by satisfactorily
91	completing at least 14 hours of a commission-prescribed
92	continuing education course. Notwithstanding the provisions of
93	s. 455.271, a licensee may reactivate a license that has been
94	involuntarily inactive for more than 12 months but fewer than 24
95	months by satisfactorily completing 28 hours of a commission-
96	prescribed education course.
97	(b)  Any license that which has been involuntarily inactive
98	for more than 2 years shall automatically expire. Once a license
99	expires, it becomes null and void without any further action by
100	the commission or department. Ninety days prior to expiration of
101	the license, the department shall give notice to the licensee.
102	The commission shall prescribe by rule a fee not to exceed $100
103	for the late renewal of an involuntarily inactive license. The
104	department shall collect the current renewal fee for each
105	renewal period in which the license was involuntarily inactive
106	in addition to any applicable late renewal fee.
107	Section 4.  Subsections (1) and (5) of section 475.25,
108	Florida Statutes, are amended, subsection (6) is renumbered as
109	subsection (7), and a new subsection (6) is added to that
110	section, to read:
111	475.25  Discipline.--
112	(1)  The commission may deny an application for licensure,
113	registration, or permit, or renewal thereof; may place a
114	licensee, registrant, or permittee on probation; may suspend a
115	license, registration, or permit for a period not exceeding 10
116	years; may revoke a license, registration, or permit; may impose
117	an administrative fine not to exceed $5,000 $1,000 for each
118	count or separate offense; and may issue a reprimand, and any or
119	all of the foregoing, if it finds that the licensee, registrant,
120	permittee, or applicant:
121	(a)  Has violated any provision of s. 455.227(1) or s.
122	475.42. However, licensees under this part are exempt from the
123	provisions of s. 455.227(1)(i).
124	(b)  Has been guilty of fraud, misrepresentation,
125	concealment, false promises, false pretenses, dishonest dealing
126	by trick, scheme, or device, culpable negligence, or breach of
127	trust in any business transaction in this state or any other
128	state, nation, or territory; has violated a duty imposed upon
129	her or him by law or by the terms of a listing contract,
130	written, oral, express, or implied, in a real estate
131	transaction; has aided, assisted, or conspired with any other
132	person engaged in any such misconduct and in furtherance
133	thereof; or has formed an intent, design, or scheme to engage in
134	any such misconduct and committed an overt act in furtherance of
135	such intent, design, or scheme. It is immaterial to the guilt of
136	the licensee that the victim or intended victim of the
137	misconduct has sustained no damage or loss; that the damage or
138	loss has been settled and paid after discovery of the
139	misconduct; or that such victim or intended victim was a
140	customer or a person in confidential relation with the licensee
141	or was an identified member of the general public.
142	(c)  Has advertised property or services in a manner which
143	is fraudulent, false, deceptive, or misleading in form or
144	content. The commission may adopt rules defining methods of
145	advertising that violate this paragraph.
146	(d)1.  Has failed to account or deliver to any person,
147	including a licensee under this chapter, at the time which has
148	been agreed upon or is required by law or, in the absence of a
149	fixed time, upon demand of the person entitled to such
150	accounting and delivery, any personal property such as money,
151	fund, deposit, check, draft, abstract of title, mortgage,
152	conveyance, lease, or other document or thing of value,
153	including a share of a real estate commission if a civil
154	judgment relating to the practice of the licensee's profession
155	has been obtained against the licensee and said judgment has not
156	been satisfied in accordance with the terms of the judgment
157	within a reasonable time, or any secret or illegal profit, or
158	any divisible share or portion thereof, which has come into the
159	licensee's hands and which is not the licensee's property or
160	which the licensee is not in law or equity entitled to retain
161	under the circumstances. However, if the licensee, in good
162	faith, entertains doubt as to what person is entitled to the
163	accounting and delivery of the escrowed property, or if
164	conflicting demands have been made upon the licensee for the
165	escrowed property, which property she or he still maintains in
166	her or his escrow or trust account, the licensee shall promptly
167	notify the commission of such doubts or conflicting demands and
168	shall promptly:
169	a.  Request that the commission issue an escrow
170	disbursement order determining who is entitled to the escrowed
171	property;
172	b.  With the consent of all parties, submit the matter to
173	arbitration;
174	c.  By interpleader or otherwise, seek adjudication of the
175	matter by a court; or
176	d.  With the written consent of all parties, submit the
177	matter to mediation. The department may conduct mediation or may
178	contract with public or private entities for mediation services.
179	However, the mediation process must be successfully completed
180	within 90 days following the last demand or the licensee shall
181	promptly employ one of the other escape procedures contained in
182	this section. Payment for mediation will be as agreed to in
183	writing by the parties. The department may adopt rules to
184	implement this section.
185
186	If the licensee promptly employs one of the escape procedures
187	contained herein and abides by the order or judgment resulting
188	therefrom, no administrative complaint may be filed against the
189	licensee for failure to account for, deliver, or maintain the
190	escrowed property. Under certain circumstances, which the
191	commission shall set forth by rule, a licensee may disburse
192	property from the licensee's escrow account without notifying
193	the commission or employing one of the procedures listed in sub-
194	subparagraphs a.-d. If the buyer of a residential condominium
195	unit delivers to a licensee written notice of the buyer's intent
196	to cancel the contract for sale and purchase, as authorized by
197	s. 718.503, or if the buyer of real property in good faith fails
198	to satisfy the terms in the financing clause of a contract for
199	sale and purchase, the licensee may return the escrowed property
200	to the purchaser without notifying the commission or initiating
201	any of the procedures listed in sub-subparagraphs a.-d.
202	2.  Has failed to deposit money in an escrow account when
203	the licensee is the purchaser of real estate under a contract
204	where the contract requires the purchaser to place deposit money
205	in an escrow account to be applied to the purchase price if the
206	sale is consummated.
207	(e)  Has violated any of the provisions of this chapter or
208	any lawful order or rule made or issued under the provisions of
209	this chapter or chapter 455.
210	(f)  Has been convicted or found guilty of, or entered a
211	plea of nolo contendere to, regardless of adjudication, a crime
212	in any jurisdiction which directly relates to the activities of
213	a licensed broker or sales associate, or involves moral
214	turpitude or fraudulent or dishonest dealing. The record of a
215	conviction certified or authenticated in such form as to be
216	admissible in evidence under the laws of the state shall be
217	admissible as prima facie evidence of such guilt.
218	(g)  Has had a broker's or sales associate's license
219	revoked, suspended, or otherwise acted against, or has had an
220	application for such licensure denied, by the real estate
221	licensing agency of another state, territory, or country.
222	(h)  Has shared a commission with, or paid a fee or other
223	compensation to, a person not properly licensed as a broker,
224	broker associate, or sales associate under the laws of this
225	state, for the referral of real estate business, clients,
226	prospects, or customers, or for any one or more of the services
227	set forth in s. 475.01(1)(a). For the purposes of this section,
228	it is immaterial that the person to whom such payment or
229	compensation is given made the referral or performed the service
230	from within this state or elsewhere; however, a licensed broker
231	of this state may pay a referral fee or share a real estate
232	brokerage commission with a broker licensed or registered under
233	the laws of a foreign state so long as the foreign broker does
234	not violate any law of this state.
235	(i)  Has become temporarily incapacitated from acting as a
236	broker or sales associate with safety to investors or those in a
237	fiduciary relation with her or him because of drunkenness, use
238	of drugs, or temporary mental derangement; but suspension of a
239	license in such a case shall be only for the period of such
240	incapacity.
241	(j)  Has rendered an opinion that the title to any property
242	sold is good or merchantable, except when correctly based upon a
243	current opinion of a licensed attorney at law, or has failed to
244	advise a prospective purchaser to consult her or his attorney on
245	the merchantability of the title or to obtain title insurance.
246	(k)  Has failed, if a broker, to immediately place, upon
247	receipt, any money, fund, deposit, check, or draft entrusted to
248	her or him by any person dealing with her or him as a broker in
249	escrow with a title company, banking institution, credit union,
250	or savings and loan association located and doing business in
251	this state, or to deposit such funds in a trust or escrow
252	account maintained by her or him with some bank, credit union,
253	or savings and loan association located and doing business in
254	this state, wherein the funds shall be kept until disbursement
255	thereof is properly authorized; or has failed, if a sales
256	associate, to immediately place with her or his registered
257	employer any money, fund, deposit, check, or draft entrusted to
258	her or him by any person dealing with her or him as agent of the
259	registered employer. The commission shall establish rules to
260	provide for records to be maintained by the broker and the
261	manner in which such deposits shall be made. A broker may place
262	and maintain up to $5,000 of personal or brokerage funds in the
263	broker's property management escrow account and up to $1,000 of
264	personal or brokerage funds in the broker's sales escrow
265	account. A broker shall be provided a reasonable amount of time
266	to correct escrow errors if there is no shortage of funds and
267	such errors pose no significant threat to economically harm the
268	public. It is the intent of the Legislature that, in the event
269	of legal proceedings concerning a broker's escrow account, the
270	disbursement of escrowed funds not be delayed due to any dispute
271	over the personal or brokerage funds that may be present in the
272	escrow account.
273	(l)  Has made or filed a report or record which the
274	licensee knows to be false, has willfully failed to file a
275	report or record required by state or federal law, has willfully
276	impeded or obstructed such filing, or has induced another person
277	to impede or obstruct such filing; but such reports or records
278	shall include only those which are signed in the capacity of a
279	licensed broker or sales associate.
280	(m)  Has obtained a license by means of fraud,
281	misrepresentation, or concealment.
282	(n)  Is confined in any county jail, postadjudication; is
283	confined in any state or federal prison or mental institution;
284	is under home confinement ordered in lieu of institutional
285	confinement; or, through mental disease or deterioration, can no
286	longer safely be entrusted to competently deal with the public.
287	(o)  Has been found guilty, for a second time, of any
288	misconduct that warrants her or his suspension or has been found
289	guilty of a course of conduct or practices which show that she
290	or he is so incompetent, negligent, dishonest, or untruthful
291	that the money, property, transactions, and rights of investors,
292	or those with whom she or he may sustain a confidential
293	relation, may not safely be entrusted to her or him.
294	(p)  Has failed to inform the commission in writing within
295	30 days after pleading guilty or nolo contendere to, or being
296	convicted or found guilty of, any felony.
297	(q)  Has violated any provision of s. 475.2755 or s.
298	475.278, including the duties owed under those sections.
299	(r)  Has failed in any written listing agreement to include
300	a definite expiration date, description of the property, price
301	and terms, fee or commission, and a proper signature of the
302	principal(s); and has failed to give the principal(s) a legible,
303	signed, true and correct copy of the listing agreement within 24
304	hours of obtaining the written listing agreement. The written
305	listing agreement shall contain no provision requiring the
306	person signing the listing to notify the broker of the intention
307	to cancel the listing after such definite expiration date.
308	(s)  Has had a registration suspended, revoked, or
309	otherwise acted against in any jurisdiction. The record of the
310	disciplinary action certified or authenticated in such form as
311	to be admissible in evidence under the laws of the state shall
312	be admissible as prima facie evidence of such disciplinary
313	action.
314	(t)  Has violated any standard for the development or
315	communication of a real estate appraisal or other provision of
316	the Uniform Standards of Professional Appraisal Practice, as
317	defined in s. 475.611, as approved and adopted by the Appraisal
318	Standards Board of the Appraisal Foundation, as defined in s.
319	475.611. This paragraph does not apply to a real estate broker
320	or sales associate who, in the ordinary course of business,
321	performs a comparative market analysis, gives a broker price
322	opinion, or gives an opinion of value of real estate. However,
323	in no event may this comparative market analysis, broker price
324	opinion, or opinion of value of real estate be referred to as an
325	appraisal, as defined in s. 475.611.
326	(u)  Has failed, if a broker, to manage or supervise a
327	broker associate or sales associate who is employed by such
328	broker or who is registered with the department as employed by
329	such broker.
330	(v)  Has failed, if a broker, to review the brokerage's
331	trust accounting procedures in order to ensure compliance with
332	this chapter.
333	(5)  An administrative complaint against a broker, or
334	broker associate, or sales associate shall must be filed within
335	5 years after the time of the act giving rise to the complaint
336	or within 5 years after the time the act is discovered or should
337	have been discovered with the exercise of due diligence.
338	(6)  The department or commission shall promptly notify a
339	licensee's broker or employer, as defined in this part, in
340	writing, when a formal complaint is filed against the licensee
341	alleging violations of this chapter or chapter 455. The
342	department shall not issue a notification to the broker or
343	employer until 10 days after a finding of probable cause has
344	been found to exist by the probable cause panel or by the
345	department, or until the licensee waives his or her privilege of
346	confidentiality under s. 455.225, whichever occurs first.
347	(7)(6)  The commission shall promptly report to the proper
348	prosecuting authority any criminal violation of any statute
349	relating to the practice of a real estate profession regulated
350	by the commission.
351	Section 5.  Paragraph (c) of subsection (2), paragraph (c)
352	of subsection (3), and paragraph (c) of subsection (4) of
353	section 475.278, Florida Statutes, are amended to read:
354	475.278  Authorized brokerage relationships; presumption of
355	transaction brokerage; required disclosures.--
356	(2)  TRANSACTION BROKER RELATIONSHIP.--
357	(c)  Contents of disclosure.--The required notice given
358	under paragraph (b) must include the following information in
359	the following form:
360
361	IMPORTANT NOTICE
362
363	FLORIDA LAW REQUIRES THAT REAL ESTATE LICENSEES PROVIDE THIS
364	NOTICE TO POTENTIAL SELLERS AND BUYERS OF REAL ESTATE.
365
366	You should not assume that any real estate broker or sales
367	associate represents you unless you agree to engage a real
368	estate licensee in an authorized brokerage relationship, either
369	as a single agent or as a transaction broker. You are advised
370	not to disclose any information you want to be held in
371	confidence until you make a decision on representation.
372
373	TRANSACTION BROKER NOTICE
374
375	FLORIDA LAW REQUIRES THAT REAL ESTATE LICENSEES OPERATING AS
376	TRANSACTION BROKERS DISCLOSE TO BUYERS AND SELLERS THEIR ROLE
377	AND DUTIES IN PROVIDING A LIMITED FORM OF REPRESENTATION.
378
379	As a transaction broker,   (insert name of Real Estate Firm and
380	its Associates)  , provides to you a limited form of
381	representation that includes the following duties:
382	1.  Dealing honestly and fairly;
383	2.  Accounting for all funds;
384	3.  Using skill, care, and diligence in the transaction;
385	4.  Disclosing all known facts that materially affect the
386	value of residential real property and are not readily
387	observable to the buyer;
388	5.  Presenting all offers and counteroffers in a timely
389	manner, unless a party has previously directed the licensee
390	otherwise in writing;
391	6.  Limited confidentiality, unless waived in writing by a
392	party. This limited confidentiality will prevent disclosure that
393	the seller will accept a price less than the asking or listed
394	price, that the buyer will pay a price greater than the price
395	submitted in a written offer, of the motivation of any party for
396	selling or buying property, that a seller or buyer will agree to
397	financing terms other than those offered, or of any other
398	information requested by a party to remain confidential; and
399	7.  Any additional duties that are entered into by this or
400	by separate written agreement.
401
402	Limited representation means that a buyer or seller is not
403	responsible for the acts of the licensee. Additionally, parties
404	are giving up their rights to the undivided loyalty of the
405	licensee. This aspect of limited representation allows a
406	licensee to facilitate a real estate transaction by assisting
407	both the buyer and the seller, but a licensee will not work to
408	represent one party to the detriment of the other party when
409	acting as a transaction broker to both parties.
410
	__________Date ______________________________ Signature
411
	______________________________ Signature
412
413	This paragraph expires July 1, 2008.
414	(3)  SINGLE AGENT RELATIONSHIP.--
415	(c)  Contents of disclosure.--
416	1.  Single agent duties disclosure.--The notice required
417	under subparagraph (b)1. must include the following information
418	in the following form:
419
420	IMPORTANT NOTICE
421
422	FLORIDA LAW REQUIRES THAT REAL ESTATE LICENSEES PROVIDE THIS
423	NOTICE TO POTENTIAL SELLERS AND BUYERS OF REAL ESTATE.
424
425	You should not assume that any real estate broker or sales
426	associate represents you unless you agree to engage a real
427	estate licensee in an authorized brokerage relationship, either
428	as a single agent or as a transaction broker. You are advised
429	not to disclose any information you want to be held in
430	confidence until you make a decision on representation.
431
432	SINGLE AGENT NOTICE
433
434	FLORIDA LAW REQUIRES THAT REAL ESTATE LICENSEES OPERATING AS
435	SINGLE AGENTS DISCLOSE TO BUYERS AND SELLERS THEIR DUTIES.
436
437	As a single agent,   (insert name of Real Estate Entity and
438	its Associates)   owe to you the following duties:
439	1.  Dealing honestly and fairly;
440	2.  Loyalty;
441	3.  Confidentiality;
442	4.  Obedience;
443	5.  Full disclosure;
444	6.  Accounting for all funds;
445	7.  Skill, care, and diligence in the transaction;
446	8.  Presenting all offers and counteroffers in a timely
447	manner, unless a party has previously directed the licensee
448	otherwise in writing; and
449	9.  Disclosing all known facts that materially affect the
450	value of residential real property and are not readily
451	observable.
452
	__________Date ______________________________ Signature
453
454	2.  Transition disclosure.--To gain the principal's written
455	consent to a change in relationship, a licensee must use the
456	following disclosure:
457
458	CONSENT TO TRANSITION TO
459	TRANSACTION BROKER
460
461	FLORIDA LAW ALLOWS REAL ESTATE LICENSEES WHO REPRESENT A BUYER
462	OR SELLER AS A SINGLE AGENT TO CHANGE FROM A SINGLE AGENT
463	RELATIONSHIP TO A TRANSACTION BROKERAGE RELATIONSHIP IN ORDER
464	FOR THE LICENSEE TO ASSIST BOTH PARTIES IN A REAL ESTATE
465	TRANSACTION BY PROVIDING A LIMITED FORM OF REPRESENTATION TO
466	BOTH THE BUYER AND THE SELLER. THIS CHANGE IN RELATIONSHIP
467	CANNOT OCCUR WITHOUT YOUR PRIOR WRITTEN CONSENT.
468
469	As a transaction broker,   (insert name of Real Estate Firm and
470	its Associates)  , provides to you a limited form of
471	representation that includes the following duties:
472	1.  Dealing honestly and fairly;
473	2.  Accounting for all funds;
474	3.  Using skill, care, and diligence in the transaction;
475	4.  Disclosing all known facts that materially affect the
476	value of residential real property and are not readily
477	observable to the buyer;
478	5.  Presenting all offers and counteroffers in a timely
479	manner, unless a party has previously directed the licensee
480	otherwise in writing;
481	6.  Limited confidentiality, unless waived in writing by a
482	party. This limited confidentiality will prevent disclosure that
483	the seller will accept a price less than the asking or listed
484	price, that the buyer will pay a price greater than the price
485	submitted in a written offer, of the motivation of any party for
486	selling or buying property, that a seller or buyer will agree to
487	financing terms other than those offered, or of any other
488	information requested by a party to remain confidential; and
489	7.  Any additional duties that are entered into by this or
490	by separate written agreement.
491
492	Limited representation means that a buyer or seller is not
493	responsible for the acts of the licensee. Additionally, parties
494	are giving up their rights to the undivided loyalty of the
495	licensee. This aspect of limited representation allows a
496	licensee to facilitate a real estate transaction by assisting
497	both the buyer and the seller, but a licensee will not work to
498	represent one party to the detriment of the other party when
499	acting as a transaction broker to both parties.
500
501	____________________I agree that my agent may assume the role
502	and duties of a transaction broker. [must be initialed or
503	signed]
504	(4)  NO BROKERAGE RELATIONSHIP.--
505	(c)  Contents of disclosure.--The notice required under
506	paragraph (b) must include the following information in the
507	following form:
508
509	IMPORTANT NOTICE
510
511	FLORIDA LAW REQUIRES THAT REAL ESTATE LICENSEES PROVIDE THIS
512	NOTICE TO POTENTIAL SELLERS AND BUYERS OF REAL ESTATE.
513
514	You should not assume that any real estate broker or sales
515	associate represents you unless you agree to engage a real
516	estate licensee in an authorized brokerage relationship, either
517	as a single agent or as a transaction broker. You are advised
518	not to disclose any information you want to be held in
519	confidence until you decide on representation.
520
521	NO BROKERAGE RELATIONSHIP NOTICE
522
523	FLORIDA LAW REQUIRES THAT REAL ESTATE LICENSEES WHO HAVE NO
524	BROKERAGE RELATIONSHIP WITH A POTENTIAL SELLER OR BUYER DISCLOSE
525	THEIR DUTIES TO SELLERS AND BUYERS.
526
527	As a real estate licensee who has no brokerage relationship
528	with you,   (insert name of Real Estate Entity and its
529	Associates)   owe to you the following duties:
530
531	1.  Dealing honestly and fairly;
532	2.  Disclosing all known facts that materially affect the
533	value of residential real property which are not readily
534	observable to the buyer.
535	3.  Accounting for all funds entrusted to the licensee.
536
537	(Date)         (Signature)
538
539	Section 6.  Paragraph (n) of subsection (1) of section
540	475.42, Florida Statutes, is amended to read:
541	475.42  Violations and penalties.--
542	(1)  VIOLATIONS.--
543	(n)  A broker or sales associate may not enter into any
544	listing or other agreement regarding her or his services in
545	connection with the resale of a timeshare period unless the
546	broker or sales associate fully and fairly discloses all
547	material aspects of the agreement to the owner of the timeshare
548	period and fully complies with the provisions of s. 475.452.
549	Further, a broker or sales associate may not use any form of
550	contract or purchase and sale agreement in connection with the
551	resale of a timeshare period unless the contract or purchase and
552	sale agreement fully and fairly discloses all material aspects
553	of the timeshare plan and the rights and obligations of both
554	buyer and seller. The commission is authorized to adopt rules
555	pursuant to chapter 120 as necessary to implement, enforce, and
556	interpret this paragraph.
557	Section 7.  Subsections (8) and (9) are added to section
558	475.451, Florida Statutes, to read:
559	475.451  Schools teaching real estate practice.--
560	(8)  Beginning October 1, 2006, each person, school, or
561	institution permitted under this section is required to keep
562	registration records, course rosters, attendance records, a file
563	copy of each examination and progress test, and all student
564	answer sheets for a period of at least 3 years subsequent to the
565	beginning of each course and make them available to the
566	department for inspection and copying upon request.
567	(9)(a)  Each school permitholder of a proprietary real
568	estate school, each chief administrative person of such an
569	institution, or each course sponsor shall deliver to the
570	department, in a format acceptable to the department, a copy of
571	the classroom course roster of courses that require satisfactory
572	completion of an examination no later than 30 days beyond the
573	end of the calendar month in which the course was completed.
574	(b)  The course roster shall consist of the institution or
575	school name and permit number, if applicable, the instructor's
576	name and permit number, if applicable, course title, beginning
577	and ending dates of the course, number of course hours, course
578	location, if applicable, each student's full name and license
579	number, if applicable, each student's mailing address, and the
580	numerical grade each student achieved. The course roster shall
581	also include the signature of the school permitholder, the chief
582	administrative person, or the course sponsor.
583	Section 8.  Subsection (1) of section 475.453, Florida
584	Statutes, is amended to read:
585	475.453  Rental information; contract or receipt; refund;
586	penalty.--
587	(1)  Each broker or sales associate who attempts to
588	negotiate a rental, or who furnishes a rental information list
589	to a prospective tenant, for a fee paid by the prospective
590	tenant, shall provide such prospective tenant with a contract or
591	receipt, which contract or receipt contains a provision for the
592	repayment of any amount over 25 percent of the fee to the
593	prospective tenant if the prospective tenant does not obtain a
594	rental. If the rental information list provided by the broker or
595	sales associate to a prospective tenant is not current or
596	accurate in any material respect, the full fee shall be repaid
597	to the prospective tenant upon demand. A demand from the
598	prospective tenant for the return of the fee, or any part
599	thereof, shall be made within 30 days following the day on which
600	the real estate broker or sales associate has contracted to
601	perform services to the prospective tenant. The contract or
602	receipt shall also conform to the guidelines adopted by the
603	commission in order to effect disclosure of material information
604	regarding the service to be provided to the prospective tenant.
605	Section 9.  Subsections (10) and (12) of section 475.701,
606	Florida Statutes, are amended to read:
607	475.701  Definitions.--As used in this part:
608	(10)  "Disputed reserved proceeds" means the portion of the
609	owner's net proceeds reserved by a closing agent under s.
610	475.709 that the owner disputes the broker's right to receive
611	such reserved proceeds under s. 475.709(5).
612	(12)  "Owner's net proceeds" means the gross sales proceeds
613	that the owner is entitled to receive from the disposition of
614	any commercial real estate specified in a brokerage agreement,
615	less all of the following:
616	(a)  The amount of Any money secured by that is required to
617	pay any encumbrance, claim, or lien that has priority over the
618	recorded commission notice as provided in s. 475.715 other than
619	an encumbrance, claim, or lien that the buyer of the commercial
620	real estate authorizes to remain after the disposition.
621	(b)  Any costs incurred by the owner to close the
622	disposition, including, but not limited to, real estate transfer
623	tax, title insurance premiums, ad valorem taxes and assessments,
624	and escrow fees payable by the owner pursuant to an agreement
625	with the buyer.
626	Section 10.  Subsection (3) of section 475.707, Florida
627	Statutes, is amended to read:
628	475.707  Recording commission notice; effectiveness.--
629	(3)  A commission notice recorded under this part expires 1
630	year after the date of recording, unless the owner remains
631	obligated to pay a commission to the broker brokerage agreement
632	remains effective after the expiration date of the commission
633	notice and the broker records an extension notice in the same
634	public records within the last 60 days before such expiration
635	date. An extension notice shall refer to the recording
636	information of the original commission notice, shall state that
637	the owner remains obligated to pay a commission to the broker
638	brokerage agreement remains effective, and shall include the
639	information and be executed in the manner as required by s.
640	475.705(1) for the original commission notice. A timely recorded
641	extension notice shall extend the expiration date of the
642	original recorded commission notice by 1 additional year.
643	Successive extension notices may be recorded for so long as the
644	owner remains obligated to pay a commission to the broker
645	brokerage agreement remains effective between the broker and the
646	owner. Within 10 days after recording an extension notice, the
647	broker shall deliver a copy thereof to the owner.
648	Section 11.  Subsection (6) of section 475.709, Florida
649	Statutes, is amended to read:
650	475.709  Duties of closing agent; reservation of owner's
651	net proceeds.--
652	(6)  The commission claimed in the commission notice shall
653	be deemed confirmed by the owner, and the closing agent shall
654	release the reserved proceeds to the broker, if the closing
655	agent is required pursuant to subsection (1) to reserve any or
656	all of the owner's net proceeds, and if all of the following
657	conditions have been met:
658	(a)  Five days have passed after the closing.
659	(b)  The owner has neither confirmed nor disputed the
660	claimed commission to the closing agent.
661	(c)  The closing agent receives reasonably satisfactory
662	evidence that the broker delivered a copy of the commission
663	notice to the owner in accordance with s. 475.705.
664	Section 12.  Subsection (1) of section 475.711, Florida
665	Statutes, is amended to read:
666	475.711  Interpleader or other proceedings; deposit of
667	reserved proceeds in court registry; discharge of closing agent
668	from further liability.--
669	(1)  The closing agent shall, by interpleader action or
670	other legal proceeding, seek adjudication of the rights of the
671	parties with respect to disputed reserved proceeds by the county
672	court or circuit court, whichever may have jurisdiction of
673	controversies in the amount of the disputed reserved proceeds,
674	in a county where all or a portion of the commercial real estate
675	is located if, after the closing of a transaction for the
676	disposition of the commercial real estate, all of the following
677	conditions are met:
678	(a)  The closing agent has reserved all or a portion of the
679	owner's net proceeds pursuant to s. 475.709 and the owner
680	disputes the release to the broker of all or any portion of the
681	reserved proceeds.
682	(b)  The owner and the broker have not agreed in writing,
683	within 5 days after the closing, regarding the closing agent's
684	release of the disputed reserved proceeds.
685	(c)  Neither the owner nor the broker have commenced a
686	civil action to determine the rights of the parties with respect
687	to the disputed reserved proceeds.
688	Section 13.  Subsection (5) of section 475.713, Florida
689	Statutes, is amended to read:
690	475.713  Civil action concerning commission; order to show
691	cause; hearing; release of proceeds; award of costs and
692	attorney's fees.--
693	(5)(a)  In a civil action commenced by the owner or the
694	broker under this section or in an interpleader action or other
695	proceeding commenced by the closing agent under s. 475.711, the
696	owner or the broker that is not the prevailing party shall be
697	required to pay:
698	1.  The costs and reasonable attorney's fees incurred in
699	the action by the prevailing party.
700	2.  The costs and reasonable attorney's fees incurred in
701	the action by the closing agent.
702	3.  The amount of any costs, recording charges, and service
703	charges of the clerk of court that were deducted from the
704	disputed reserved proceeds under s. 475.711(2) in determining
705	the net amount thereof deposited into the registry of the court.
706	(b)  If the court determines that neither the owner nor the
707	broker is the prevailing party, the amounts set forth in
708	subparagraphs (a)2.1. and 3.2. shall be divided equally between
709	and paid by the owner and the broker.
710	Section 14.  Section 475.715, Florida Statutes, is amended
711	to read:
712	475.715  Priority of recorded commission notice.--All
713	statutory liens, consensual liens, mortgages, deeds of trust,
714	assignments of rents, and other encumbrances, including all
715	advances or charges made or accruing thereunder, whether
716	voluntary or obligatory, and all modifications, extensions,
717	renewals, and replacements thereof, recorded prior to the
718	recording of a commission notice pursuant to the provisions of
719	s. 475.707, have priority over the commission notice. The
720	closing agent shall compute the owner's net proceeds by
721	subtracting from the gross sales proceeds, and the amount
722	required to discharge any such prior recorded lien and the
723	amount of money secured by any such prior recorded lien that
724	liens shall be subtracted from gross sales proceeds in computing
725	the owner's net proceeds unless the buyer permits the same to
726	remain a lien against the title to the commercial real estate. A
727	prior recorded lien includes, without limitation, a valid
728	construction lien claim that is recorded after the recording of
729	the broker's commission notice but which relates back to a
730	notice of commencement recorded under s. 713.13 prior to the
731	recording date of the broker's commission notice.
732	Section 15.  Subsection (3) of section 475.719, Florida
733	Statutes, is amended to read:
734	475.719  Buyer's broker.--As used in this section, the term
735	"buyer's broker" means a broker that is entitled to receive
736	payment from the buyer of commercial real estate of any fee or
737	other compensation for licensed services, as specified in a
738	written contract made between the buyer and the broker on or
739	after the effective date of this act relating to the buyer's
740	purchase of the commercial real estate.
741	(3)  No such notice given by the buyer's broker pursuant to
742	subsection (2) shall constitute a tortious interference with the
743	sale or disposition or financing of the commercial real estate,
744	except this section shall not affect the rights and remedies
745	otherwise available to the owner, the buyer, or the buyer's
746	broker under other applicable law.
747	Section 16.  Paragraph (b) of subsection (8) of section
748	475.807, Florida Statutes, is amended, and subsection (9) is
749	added to that section, to read:
750	475.807  Recording lien notice; effectiveness.--
751	(8)
752	(b)  To the extent that a lien notice recorded by a broker
753	under this part claims an automatic renewal commission that is
754	earned but not then payable, the lien notice expires 10 years
755	after the date of recording, unless within that time the broker
756	commences an action to foreclose the lien under s. 475.809 and
757	records a notice of lis pendens in the public records of the
758	county where the lien notice was recorded. If the owner remains
759	obligated to pay a commission to the broker brokerage agreement
760	remains effective, the broker may extend the expiration date of
761	a lien notice for an automatic renewal commission by recording
762	an extension notice in the same public records within the last 6
763	months before such expiration date. An extension notice shall
764	refer to the recording information of the original lien notice,
765	shall state that the owner remains obligated to pay a commission
766	to the broker brokerage agreement remains effective, and shall
767	include the same information and be executed in the same manner
768	as required by s. 475.805(1) for the original lien notice. A
769	timely recorded extension notice shall extend the expiration
770	date of the original recorded lien notice by 10 additional
771	years. Successive extension notices may be recorded for so long
772	as the owner remains obligated to pay a commission to the broker
773	brokerage agreement remains effective between the broker and the
774	owner. Within 10 days after recording an extension notice, the
775	broker shall deliver a copy thereof to the owner.
776	(9)  Neither the recording of a broker's lien notice or any
777	extension thereof nor the recording of any lis pendens to
778	foreclose a broker's lien thereunder shall constitute notice to
779	any creditor or subsequent purchaser pursuant to s. 695.01 or
780	chapter 712 of the existence of any lease described in the lien
781	notice, extension notice, or lis pendens.
782	Section 17.  Subsection (6) of section 721.20, Florida
783	Statutes, is amended to read:
784	721.20  Licensing requirements; suspension or revocation of
785	license; exceptions to applicability; collection of advance fees
786	for listings unlawful.--
787	(6)  Notwithstanding the provisions of s. 475.452, It is
788	unlawful for any real estate broker, broker associate, or sales
789	associate to collect any advance fee for the listing of any
790	timeshare estate or timeshare license.
791	Section 18.  Section 475.452, Florida Statutes, is
792	repealed.
793	Section 19.  This act shall take effect July 1, 2006.

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