Senate Bill sb1596

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    Florida Senate - 2007                                  SB 1596

    By Senator Constantine





    22-736-07

  1                      A bill to be entitled

  2         An act relating to residential tenancies;

  3         amending s. 83.43, F.S.; revising the

  4         definition of "rental agreement"; defining

  5         "early termination fee"; amending s. 83.595,

  6         F.S.; authorizing a landlord to terminate a

  7         rental agreement and recover liquidated damages

  8         for breach of the agreement or charge the

  9         tenant an early termination fee, or both, under

10         certain circumstances; providing a limit on the

11         combined total damages and fee; requiring the

12         tenant to indicate acceptance of an early

13         termination fee or liquidated damages provision

14         in the rental agreement; specifying liability

15         of the tenant for rent, other charges otherwise

16         due, and rental concessions under certain

17         circumstances; providing applicability and

18         certain retroactive effect; providing that the

19         act does not invalidate any liquidated damages

20         or early termination fee in any rental

21         agreement entered into prior to the effective

22         date of the act; providing an effective date.

23  

24  Be It Enacted by the Legislature of the State of Florida:

25  

26         Section 1.  Subsection (7) of section 83.43, Florida

27  Statutes, is amended, and subsection (17) is added to that

28  section, to read:

29         83.43  Definitions.--As used in this part, the

30  following words and terms shall have the following meanings

31  unless some other meaning is plainly indicated:

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    Florida Senate - 2007                                  SB 1596
    22-736-07




 1         (7)  "Rental agreement" means any written agreement,

 2  including amendments or addenda, or oral agreement if for less

 3  duration than 1 year, providing for use and occupancy of

 4  premises.

 5         (17)  "Early termination fee" means any charge, fee, or

 6  forfeiture which is contained in a written rental agreement

 7  and which is assessed to a tenant when a tenant vacates a

 8  dwelling unit before the end of the rental agreement. An early

 9  termination fee does not include:

10         (a)  Charges for services actually rendered to the

11  tenant.

12         (b)  Unpaid rent through the end of the month in which

13  the tenant occupied the dwelling unit.

14         (c)  Charges for damages to the dwelling unit.

15         Section 2.  Section 83.595, Florida Statutes, is

16  amended to read:

17         83.595  Choice of remedies upon breach by tenant.--

18         (1)  If the tenant breaches the rental agreement lease

19  for the dwelling unit and the landlord has obtained a writ of

20  possession, or the tenant has surrendered possession of the

21  dwelling unit to the landlord, or the tenant has abandoned the

22  dwelling unit, the landlord may:

23         (a)  Treat the rental agreement lease as terminated and

24  retake possession for his or her own account, thereby

25  terminating any further liability of the tenant; or

26         (b)  Retake possession of the dwelling unit for the

27  account of the tenant, holding the tenant liable for the

28  difference between the rent rental stipulated to be paid under

29  the lease agreement and what, in good faith, the landlord is

30  able to recover from a reletting; or

31  

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    Florida Senate - 2007                                  SB 1596
    22-736-07




 1         (c)  Stand by and do nothing, holding the lessee liable

 2  for the rent as it comes due; or.

 3         (d)1.  If provided for in the rental agreement, recover

 4  liquidated damages upon the breach or charge the tenant a fee

 5  for early termination of the rental agreement upon the

 6  tenant's giving the landlord notice as provided for in the

 7  rental agreement. The landlord is entitled to liquidated

 8  damages and an early termination fee if the combined total

 9  charged for liquidated damages and the early termination fee

10  does not exceed an amount equal to 2 months' rent. The

11  landlord shall treat the rental agreement as terminated and

12  charge the tenant liquidated damages or the early termination

13  fee as specified in the rental agreement. In such event, the

14  remedies set forth in paragraphs (a), (b), and (c) are not

15  available to the landlord. This subparagraph does not apply

16  when the breach is failure to give notice at the end of the

17  rental agreement as provided in s. 83.575.

18         2.  The tenant shall indicate acceptance of the

19  provision in the rental agreement requiring an early

20  termination fee or liquidated damages. Acceptance for purposes

21  of this subparagraph includes, but is not limited to, the

22  tenant's placing of his or her initials next to the provision

23  or otherwise indicating his or her agreement with the

24  provision. If acceptance is not indicated, the remedies in

25  this paragraph will not apply.

26         (2)  The landlord may charge the tenant for any unpaid

27  rent, other charges due under the rental agreement through the

28  end of the month in which the landlord retakes possession of

29  the dwelling unit, and any rental concessions that the tenant

30  has received. For purposes of this subsection, the term

31  "rental concessions" means any amount contained in the rental

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    Florida Senate - 2007                                  SB 1596
    22-736-07




 1  agreement by which all or a portion of the base rent or

 2  options is reduced or any service or thing of value is given

 3  in consideration for the tenant's entering into the rental

 4  agreement.

 5         (3)(2)  If the landlord retakes possession of the

 6  dwelling unit for the account of the tenant pursuant to

 7  paragraph (1)(b), the landlord has a duty to exercise good

 8  faith in attempting to relet the premises, and any rent

 9  rentals received by the landlord as a result of the reletting

10  shall be deducted from the balance of rent due from the

11  tenant. For purposes of this section, "good faith in

12  attempting to relet the premises" means that the landlord

13  shall use at least the same efforts to relet the premises as

14  were used in the initial rental or at least the same efforts

15  as the landlord uses in attempting to rent lease other similar

16  rental units but does not require the landlord to give a

17  preference in leasing the premises over other vacant dwelling

18  units that the landlord owns or has the responsibility to

19  rent.

20         Section 3.  This act applies to any rental agreement

21  entered into before the effective date of the act in which the

22  parties agree to the remedies authorized in this act, except

23  that s. 83.595(1)(d)2., Florida Statutes, applies to any

24  rental agreement entered into on or after the effective date

25  of this act. However, this act does not invalidate any

26  liquidated damages or early termination fee in any rental

27  agreement entered into before the effective date of the act.

28         Section 4.  This act shall take effect upon becoming a

29  law.

30  

31  

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    Florida Senate - 2007                                  SB 1596
    22-736-07




 1            *****************************************

 2                          SENATE SUMMARY

 3    Revises the definition of "rental agreement." Defines
      "early termination fee." Allows a landlord to terminate a
 4    rental agreement and recover liquidated damages for
      breach of the agreement or charge the tenant an early
 5    termination fee, or both, under certain circumstances.
      Provides a limit on the combined total damages and fee.
 6    Requires the tenant to indicate acceptance of an early
      termination fee or liquidated damages provision in the
 7    rental agreement. Specifies liability of the tenant for
      rent, other charges otherwise due, and rental concessions
 8    under certain circumstances. Provides applicability and
      certain retroactive effect. Provides that the act does
 9    not invalidate any liquidated damages or early
      termination fee in any rental agreement entered into
10    prior to the effective date of the act.

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