Florida Senate - 2014                                    SB 1032
       
       
        
       By Senator Latvala
       
       
       
       
       
       20-00779-14                                           20141032__
    1                        A bill to be entitled                      
    2         An act relating to residential property sales;
    3         creating s. 689.263, F.S.; defining terms; requiring a
    4         seller of residential property to provide written
    5         notification to a prospective buyer of the seller’s
    6         intent to retain subsurface rights; providing
    7         requirements for the form for such notification;
    8         specifying a timeframe for rescission of a contract
    9         under certain circumstances; specifying the
   10         jurisdiction and venue for enforcement; providing
   11         penalties; providing an effective date.
   12          
   13  Be It Enacted by the Legislature of the State of Florida:
   14  
   15         Section 1. Section 689.263, Florida Statutes, is created to
   16  read:
   17         689.263 Sale of residential property; disclosure of
   18  seller’s intent to retain subsurface rights.—
   19         (1) As used in this section, the term:
   20         (a) “Residential property” includes real estate on which
   21  there is located, or will be located, a single-family dwelling,
   22  duplex, triplex, quadruplex, or condominium.
   23         (b) “Subsurface rights” includes rights to the phosphate,
   24  minerals, metals, petroleum, or oil that is or may be in, on, or
   25  under land being transferred to the prospective purchaser.
   26         (2) Notwithstanding any other provision of law, a seller
   27  who intends to retain subsurface rights as part of a contract or
   28  deed for the sale of residential property shall provide to the
   29  prospective purchaser and, if applicable, his or her real estate
   30  agent written notice that the seller intends to retain such
   31  property interest. The prospective purchaser must receive a copy
   32  of the written notice at least 3 business days before entering
   33  into a sales contract for the purchase of the residential
   34  property and must acknowledge receipt of the written notice by
   35  his or her signature.
   36         (3) The written notice required under this section shall be
   37  provided on a sheet of paper that is 8 1/2 inches by 11 inches,
   38  may not address another subject, must be double-spaced, and must
   39  include the following information in a font size of at least 12
   40  points:
   41  
   42                   RETENTION OF SUBSURFACE RIGHTS                  
   43  
   44         AS REQUIRED BY FLORIDA LAW, ......(SELLER’S NAME)......
   45  HEREBY PROVIDES 3 BUSINESS DAYS’ NOTICE TO ......(PROSPECTIVE
   46  PURCHASER’S NAME)...... THAT THE SELLER, AS PART OF THE TRANSFER
   47  OF THE RESIDENTIAL PROPERTY LOCATED AT ......(PROPERTY
   48  ADDRESS)......, INTENDS TO SEVER, RETAIN, RESERVE, OR OTHERWISE
   49  KEEP CERTAIN SUBSURFACE RIGHTS AS PART OF THE SALE OF THAT
   50  PROPERTY. THESE RIGHTS MAY INCLUDE THE RIGHT TO PHOSPHATE,
   51  MINERALS, METALS, PETROLEUM, OR OIL THAT MIGHT BE IN, ON, OR
   52  UNDER THE RESIDENTIAL PROPERTY. BY THIS NOTICE, THE PROSPECTIVE
   53  PURCHASER MAY RENEGOTIATE THE CONTRACT TERMS TO REFLECT THE
   54  DIMINUTION OF VALUE RESULTING FROM THE SEVERANCE OF THESE
   55  SUBSURFACE PROPERTY INTERESTS.
   56  
   57         (4) A purchaser has 3 business days after the contract or
   58  deed is fully executed to rescind the contract or deed if the
   59  seller failed to provide the notice as required by this section.
   60  The rescission must be provided in writing to the seller.
   61         (5) If a court establishes that proper notice as required
   62  by this section was not given to the prospective purchaser, the
   63  court shall issue an order declaring that the provision in the
   64  contract or deed which severed, retained, or reserved the
   65  property interest is void.
   66         (6) Jurisdiction and venue for enforcement of this section
   67  is in the circuit court of the county where the subject real
   68  property is located.
   69         (7) A seller who knowingly violates this section commits a
   70  misdemeanor of the first degree, punishable as provided in s.
   71  775.082 or s. 775.083.
   72         Section 2. This act shall take effect July 1, 2014.