Senate Bill 0340
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Florida Senate - 1998 SB 340
By Senators Clary, Harris, McKay, Williams and Kurth
7-463-98 See HB
1 A bill to be entitled
2 An act relating to real estate; amending s.
3 475.15, F.S.; providing registration and
4 licensing requirements for additional business
5 entities; eliminating a conflicting provision
6 relating to automatic cancellation of the
7 registration of a real estate broker
8 partnership; amending s. 475.17, F.S.;
9 providing additional requirements for licensure
10 as a real estate broker; amending s. 475.183,
11 F.S.; revising the period after which
12 involuntarily inactive licenses expire;
13 revising the time for the required notice to
14 the licensee; amending s. 475.25, F.S.;
15 increasing the administrative fine; revising a
16 ground for disciplinary action to exempt
17 licensees from the reporting of certain
18 violators; providing that violations of certain
19 standards of the Appraisal Foundation are
20 grounds for the Florida Real Estate Commission
21 to deny, revoke, or suspend the license of, or
22 to fine, real estate brokers or salespersons;
23 reenacting ss. 475.180(2)(b), 475.181(2),
24 475.22(2), 475.422(2), and 475.482(1), F.S.,
25 relating to nonresident licenses, licensure,
26 refusal of a broker to comply with certain
27 requests or notices, furnishing of copies of
28 termite and roof inspection reports, and
29 recovery from the Real Estate Recovery Fund, to
30 incorporate the amendment to s. 475.25, F.S.,
31 in references thereto; amending s. 475.272,
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1 F.S.; deleting a provision that restricts a
2 real estate licensee to operating as a single
3 agent or as a transaction broker; amending s.
4 475.278, F.S.; revising provisions relating to
5 disclosure of authorized brokerage
6 relationships and the corresponding duties of
7 real estate licensees; amending s. 475.451,
8 F.S.; revising provisions relating to the
9 permitting of instructors for proprietary real
10 estate schools or state institutions; providing
11 permit renewal requirements; revising
12 references relating to examinations; amending
13 s. 475.452, F.S.; providing requirements
14 applicable to advance expenses, commissions, or
15 fees for brokers auctioning real property;
16 amending s. 475.484, F.S.; providing
17 applicability with respect to a conflict with
18 federal law in the disciplining of certain
19 licensees against whom a judgment has been paid
20 from the Real Estate Recovery Fund; creating s.
21 475.5016, F.S.; granting the department
22 authority to inspect and audit brokers and
23 brokerage offices; amending ss. 475.611 and
24 475.612, F.S.; redesignating registered
25 appraisers as registered assistant appraisers;
26 amending ss. 475.01, 475.011, 475.616, 475.618,
27 475.619, 475.620, 475.622, 475.623, 475.626,
28 475.627, 475.628, 475.629, and 475.630, F.S.,
29 to conform and correct references; creating s.
30 475.6145, F.S.; providing for a seal for the
31 Florida Real Estate Appraisal Board to
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1 authenticate its proceedings, records, and
2 acts; creating s. 475.6147, F.S.; providing a
3 separate section relating to establishment of
4 fees applicable to the regulation of real
5 estate appraisers; amending s. 475.615, F.S.;
6 revising provisions relating to qualifications
7 for registration, licensure, or certification
8 of appraisers; providing for a charge for
9 application for a change in status of appraisal
10 licensure; amending s. 475.617, F.S.; revising
11 continuing education and experience
12 requirements for real estate appraisers;
13 amending s. 475.624, F.S.; revising a ground
14 for disciplinary action to exempt licensees
15 from the reporting of certain violators;
16 creating s. 475.6295, F.S.; granting the
17 department authority to inspect appraisers and
18 appraisal offices; amending s. 553.991, F.S.;
19 limiting the purpose of the "Florida Building
20 Energy-Efficiency Rating Act" to providing for
21 a statewide uniform system for rating the
22 energy efficiency of buildings; amending s.
23 553.994, F.S.; deleting the schedule for
24 phasing in the rating system; amending s.
25 553.996, F.S.; requiring provision of an
26 information brochure to prospective purchasers
27 of certain real property; deleting a provision
28 authorizing such prospective purchasers to
29 receive a rating on the property upon request;
30 providing an effective date.
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1 Be It Enacted by the Legislature of the State of Florida:
2
3 Section 1. Paragraph (a) of subsection (1) of section
4 475.01, Florida Statutes, is amended to read:
5 475.01 Definitions.--
6 (1) As used in this part:
7 (a) "Broker" means a person who, for another, and for
8 a compensation or valuable consideration directly or
9 indirectly paid or promised, expressly or impliedly, or with
10 an intent to collect or receive a compensation or valuable
11 consideration therefor, appraises, auctions, sells, exchanges,
12 buys, rents, or offers, attempts or agrees to appraise,
13 auction, or negotiate the sale, exchange, purchase, or rental
14 of business enterprises or business opportunities or any real
15 property or any interest in or concerning the same, including
16 mineral rights or leases, or who advertises or holds out to
17 the public by any oral or printed solicitation or
18 representation that she or he is engaged in the business of
19 appraising, auctioning, buying, selling, exchanging, leasing,
20 or renting business enterprises or business opportunities or
21 real property of others or interests therein, including
22 mineral rights, or who takes any part in the procuring of
23 sellers, purchasers, lessors, or lessees of business
24 enterprises or business opportunities or the real property of
25 another, or leases, or interest therein, including mineral
26 rights, or who directs or assists in the procuring of
27 prospects or in the negotiation or closing of any transaction
28 which does, or is calculated to, result in a sale, exchange,
29 or leasing thereof, and who receives, expects, or is promised
30 any compensation or valuable consideration, directly or
31 indirectly therefor; and all persons who advertise rental
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1 property information or lists. A broker renders a
2 professional service and is a professional within the meaning
3 of s. 95.11(4)(a). Where the term "appraise" or "appraising"
4 appears in the definition of the term "broker," it
5 specifically excludes those appraisal services which must be
6 performed only by a state-licensed or state-certified
7 appraiser, and those appraisal services which may be performed
8 by a registered assistant appraiser as defined in part II.
9 The term "broker" also includes any person who is a general
10 partner, officer, or director of a partnership or corporation
11 which acts as a broker. The term "broker" also includes any
12 person or entity who undertakes to list or sell one or more
13 timeshare periods per year in one or more timeshare plans on
14 behalf of any number of persons, except as provided in ss.
15 475.011 and 721.20.
16 Section 2. Subsection (9) of section 475.011, Florida
17 Statutes, is amended to read:
18 475.011 Exemptions.--This part does not apply to:
19 (9) Any person registered, licensed, or certified by
20 the department under part II as an appraiser or assistant
21 appraiser performing appraisals in accordance with that part.
22 Section 3. Section 475.15, Florida Statutes, is
23 amended to read:
24 475.15 Registration and licensing of general partners,
25 members, officers, and directors of a firm.--Each partnership,
26 limited liability partnership, limited liability company, or
27 corporation which acts as a broker shall register with the
28 commission and shall renew the licenses or registrations of
29 its members, officers, and directors for each license period.
30 The registration of a partnership is canceled automatically
31 during any period of time that the license or registration of
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1 any one or more of its partners is not in force. However, if
2 the partnership is a limited partnership, only the general
3 partners must be licensed brokers or brokerage corporations
4 registered pursuant to this part. If the license or
5 registration of at least one active broker member is not in
6 force, the registration of a corporation, limited liability
7 company, limited liability partnership, or partnership is
8 canceled automatically during that period of time.
9 Section 4. Subsection (2) of section 475.17, Florida
10 Statutes, is amended to read:
11 475.17 Qualifications for practice.--
12 (2)(a) In addition to other requirements under this
13 part, the commission may require the satisfactory completion
14 of one or more of the educational courses or equivalent
15 courses conducted, offered, sponsored, prescribed, or approved
16 pursuant to s. 475.04, taken at an accredited college,
17 university, or community college, at an area technical center,
18 or at a registered real estate school, as a condition
19 precedent for any person to become licensed or to renew her or
20 his license as a broker, broker-salesperson, or salesperson.
21 The course or courses required for one to become initially
22 licensed shall not exceed a total of 63 classroom hours of 50
23 minutes each, inclusive of examination, for a salesperson and
24 72 classroom hours of 50 minutes each, inclusive of
25 examination, for a broker. The satisfactory completion of an
26 examination administered by the accredited college,
27 university, or community college, by the area technical
28 center, or by the registered real estate school shall be the
29 basis for determining satisfactory completion of the course.
30 However, notice of satisfactory completion shall not be issued
31 if the student has absences in excess of 8 classroom hours.
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1 Such required course or courses must be made available by
2 correspondence or other suitable means to any person who, by
3 reason of hardship, as defined by rule, cannot attend the
4 place or places where the course is regularly conducted.
5 (b) A person may not be licensed as a real estate
6 broker unless, in addition to the other requirements of law,
7 the person has held:
8 1. An active real estate salesperson's license for at
9 least 12 months during the preceding 5 years in the office of
10 one or more real estate brokers licensed in this state or any
11 other state, territory, or jurisdiction of the United States
12 or in any foreign national jurisdiction;
13 2. A current and valid real estate salesperson's
14 license for at least 12 months during the preceding 5 years in
15 the employ of a governmental agency for a salary and
16 performing the duties authorized in this part for real estate
17 licensees; or
18 3. A current and valid real estate broker's license
19 for at least 12 months during the preceding 5 years in any
20 other state, territory, or jurisdiction of the United States
21 or in any foreign national jurisdiction.
22
23 This paragraph does not apply to a person employed as a real
24 estate investigator by the Division of Real Estate, provided
25 the person has been employed as a real estate investigator for
26 at least 24 months. The person must be currently employed as a
27 real estate investigator to sit for the real estate broker's
28 examination and have held a valid and current salesperson's
29 license for at least 12 months.
30 (c) A person who has been licensed as a real estate
31 salesperson in Florida during the preceding 5 years may not be
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1 licensed as a real estate broker unless, in addition to the
2 other requirements of law, she or he has completed the
3 salesperson postlicensure educational requirements, if these
4 requirements have been prescribed by the commission pursuant
5 to paragraph (3)(a).
6 Section 5. Subsection (2) of section 475.183, Florida
7 Statutes, is amended to read:
8 475.183 Inactive status.--
9 (2) Any license which has been involuntarily inactive
10 for more than 2 4 years shall automatically expire. Once a
11 license expires, it becomes null and void without any further
12 action by the commission or department. Ninety days Two years
13 prior to expiration of the license, the department shall give
14 notice to the licensee. The commission shall prescribe by
15 rule a fee not to exceed $100 for the late renewal of an
16 involuntarily inactive license. The department shall collect
17 the current renewal fee for each renewal period in which the
18 license was involuntarily inactive in addition to any
19 applicable late renewal fee.
20 Section 6. Subsection (1) of section 475.25, Florida
21 Statutes, is amended to read:
22 475.25 Discipline.--
23 (1) The commission may deny an application for
24 licensure, registration, or permit, or renewal thereof; may
25 place a licensee, registrant, or permittee on probation; may
26 suspend a license, registration, or permit for a period not
27 exceeding 10 years; may revoke a license, registration, or
28 permit; may impose an administrative fine not to exceed $5,000
29 $1,000 for each count or separate offense; and may issue a
30 reprimand, and any or all of the foregoing, if it finds that
31 the licensee, registrant, permittee, or applicant:
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1 (a) Has violated any provision of s. 455.227(1) or of
2 s. 475.42. However, licensees under this part are exempt from
3 the provisions of s. 455.227(1)(i).
4 (b) Has been guilty of fraud, misrepresentation,
5 concealment, false promises, false pretenses, dishonest
6 dealing by trick, scheme, or device, culpable negligence, or
7 breach of trust in any business transaction in this state or
8 any other state, nation, or territory; has violated a duty
9 imposed upon her or him by law or by the terms of a listing
10 contract, written, oral, express, or implied, in a real estate
11 transaction; has aided, assisted, or conspired with any other
12 person engaged in any such misconduct and in furtherance
13 thereof; or has formed an intent, design, or scheme to engage
14 in any such misconduct and committed an overt act in
15 furtherance of such intent, design, or scheme. It is
16 immaterial to the guilt of the licensee that the victim or
17 intended victim of the misconduct has sustained no damage or
18 loss; that the damage or loss has been settled and paid after
19 discovery of the misconduct; or that such victim or intended
20 victim was a customer or a person in confidential relation
21 with the licensee or was an identified member of the general
22 public.
23 (c) Has advertised property or services in a manner
24 which is fraudulent, false, deceptive, or misleading in form
25 or content.
26 (d)1. Has failed to account or deliver to any person,
27 including a licensee under this chapter, at the time which has
28 been agreed upon or is required by law or, in the absence of a
29 fixed time, upon demand of the person entitled to such
30 accounting and delivery, any personal property such as money,
31 fund, deposit, check, draft, abstract of title, mortgage,
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1 conveyance, lease, or other document or thing of value,
2 including a share of a real estate commission if a civil
3 judgment relating to the practice of the licensee's profession
4 has been obtained against the licensee and said judgment has
5 not been satisfied in accordance with the terms of the
6 judgment within a reasonable time, or any secret or illegal
7 profit, or any divisible share or portion thereof, which has
8 come into the licensee's hands and which is not the licensee's
9 property or which the licensee is not in law or equity
10 entitled to retain under the circumstances. However, if the
11 licensee, in good faith, entertains doubt as to what person is
12 entitled to the accounting and delivery of the escrowed
13 property, or if conflicting demands have been made upon the
14 licensee for the escrowed property, which property she or he
15 still maintains in her or his escrow or trust account, the
16 licensee shall promptly notify the commission of such doubts
17 or conflicting demands and shall promptly:
18 a. Request that the commission issue an escrow
19 disbursement order determining who is entitled to the escrowed
20 property;
21 b. With the consent of all parties, submit the matter
22 to arbitration;
23 c. By interpleader or otherwise, seek adjudication of
24 the matter by a court; or
25 d. With the written consent of all parties, submit the
26 matter to mediation. The department may conduct mediation or
27 may contract with public or private entities for mediation
28 services. However, the mediation process must be successfully
29 completed within 90 days following the last demand or the
30 licensee shall promptly employ one of the other escape
31 procedures contained in this section. Payment for mediation
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1 will be as agreed to in writing by the parties. The
2 department may adopt rules to implement this section.
3
4 If the licensee promptly employs one of the escape procedures
5 contained herein, and if she or he abides by the order or
6 judgment resulting therefrom, no administrative complaint may
7 be filed against the licensee for failure to account for,
8 deliver, or maintain the escrowed property.
9 2. Has failed to deposit money in an escrow account
10 when the licensee is the purchaser of real estate under a
11 contract where the contract requires the purchaser to place
12 deposit money in an escrow account to be applied to the
13 purchase price if the sale is consummated.
14 (e) Has violated any of the provisions of this chapter
15 or any lawful order or rule made or issued under the
16 provisions of this chapter or chapter 455.
17 (f) Has been convicted or found guilty of, or entered
18 a plea of nolo contendere to, regardless of adjudication, a
19 crime in any jurisdiction which directly relates to the
20 activities of a licensed broker or salesperson, or involves
21 moral turpitude or fraudulent or dishonest dealing. The record
22 of a conviction certified or authenticated in such form as to
23 be admissible in evidence under the laws of the state shall be
24 admissible as prima facie evidence of such guilt.
25 (g) Has had a broker's or salesperson's license
26 revoked, suspended, or otherwise acted against, or has had an
27 application for such licensure denied, by the real estate
28 licensing agency of another state, territory, or country.
29 (h) Has shared a commission with, or paid a fee or
30 other compensation to, a person not properly licensed as a
31 broker, broker-salesperson, or salesperson under the laws of
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1 this state, for the referral of real estate business, clients,
2 prospects, or customers, or for any one or more of the
3 services set forth in s. 475.01(1)(a). For the purposes of
4 this section, it is immaterial that the person to whom such
5 payment or compensation is given made the referral or
6 performed the service from within this state or elsewhere;
7 however, a licensed broker of this state may pay a referral
8 fee or share a real estate brokerage commission with a broker
9 licensed or registered under the laws of a foreign state so
10 long as the foreign broker does not violate any law of this
11 state.
12 (i) Has become temporarily incapacitated from acting
13 as a broker or salesperson with safety to investors or those
14 in a fiduciary relation with her or him because of
15 drunkenness, use of drugs, or temporary mental derangement;
16 but suspension of a license in such a case shall be only for
17 the period of such incapacity.
18 (j) Has rendered an opinion that the title to any
19 property sold is good or merchantable, except when correctly
20 based upon a current opinion of a licensed attorney at law, or
21 has failed to advise a prospective purchaser to consult her or
22 his attorney on the merchantability of the title or to obtain
23 title insurance.
24 (k) Has failed, if a broker, to immediately place,
25 upon receipt, any money, fund, deposit, check, or draft
26 entrusted to her or him by any person dealing with her or him
27 as a broker in escrow with a title company, banking
28 institution, credit union, or savings and loan association
29 located and doing business in this state, or to deposit such
30 funds in a trust or escrow account maintained by her or him
31 with some bank, credit union, or savings and loan association
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1 located and doing business in this state, wherein the funds
2 shall be kept until disbursement thereof is properly
3 authorized; or has failed, if a salesperson, to immediately
4 place with her or his registered employer any money, fund,
5 deposit, check, or draft entrusted to her or him by any person
6 dealing with her or him as agent of the registered employer.
7 The commission shall establish rules to provide for records to
8 be maintained by the broker and the manner in which such
9 deposits shall be made.
10 (l) Has made or filed a report or record which the
11 licensee knows to be false, has willfully failed to file a
12 report or record required by state or federal law, has
13 willfully impeded or obstructed such filing, or has induced
14 another person to impede or obstruct such filing; but such
15 reports or records shall include only those which are signed
16 in the capacity of a licensed broker or salesperson.
17 (m) Has obtained a license by means of fraud,
18 misrepresentation, or concealment.
19 (n) Is confined in any county jail, postadjudication;
20 is confined in any state or federal prison or mental
21 institution; is under home confinement ordered in lieu of
22 institutional confinement; or, through mental disease or
23 deterioration, can no longer safely be entrusted to
24 competently deal with the public.
25 (o) Has been found guilty, for a second time, of any
26 misconduct that warrants her or his suspension or has been
27 found guilty of a course of conduct or practices which show
28 that she or he is so incompetent, negligent, dishonest, or
29 untruthful that the money, property, transactions, and rights
30 of investors, or those with whom she or he may sustain a
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1 confidential relation, may not safely be entrusted to her or
2 him.
3 (p) Has failed to inform the commission in writing
4 within 30 days after pleading guilty or nolo contendere to, or
5 being convicted or found guilty of, any felony.
6 (q) Has violated any provision of s. 475.276 or s.
7 475.278, including the duties owed under those sections.
8 (r) Has failed in any written listing agreement to
9 include a definite expiration date, description of the
10 property, price and terms, fee or commission, and a proper
11 signature of the principal(s); and has failed to give the
12 principal(s) a legible, signed, true and correct copy of the
13 listing agreement within 24 hours of obtaining the written
14 listing agreement. The written listing agreement shall
15 contain no provision requiring the person signing the listing
16 to notify the broker of the intention to cancel the listing
17 after such definite expiration date.
18 (s) Has had a registration suspended, revoked, or
19 otherwise acted against in any jurisdiction. The record of the
20 disciplinary action certified or authenticated in such form as
21 to be admissible in evidence under the laws of the state shall
22 be admissible as prima facie evidence of such disciplinary
23 action.
24 (t) Has violated any standard for the development or
25 communication of a real estate appraisal or other provision of
26 the Uniform Standards of Professional Appraisal Practice, as
27 defined in s. 475.611, as approved and adopted by the
28 Appraisal Standards Board of the Appraisal Foundation, as
29 defined in s. 475.611. This paragraph does not apply to a real
30 estate broker or salesperson who, in the ordinary course of
31 business, performs a comparative market analysis. However, in
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1 no event may this comparative market analysis be referred to
2 as an appraisal, as defined in s. 475.611.
3 Section 7. For the purpose of incorporating the
4 amendments to section 475.25, Florida Statutes, in references
5 thereto, paragraph (b) of subsection (2) of section 475.180,
6 Florida Statutes, is reenacted to read:
7 475.180 Nonresident licenses.--
8 (2)
9 (b) Any resident licensee who becomes a nonresident
10 shall, within 60 days, notify the commission of the change in
11 residency and comply with nonresident requirements. Failure to
12 notify and comply is a violation of the license law, subject
13 to the penalties in s. 475.25.
14 Section 8. For the purpose of incorporating the
15 amendments to section 475.25, Florida Statutes, in references
16 thereto, subsection (2) of section 475.181, Florida Statutes,
17 is reenacted to read:
18 475.181 Licensure.--
19 (2) The commission shall certify for licensure any
20 applicant who satisfies the requirements of ss. 475.17,
21 475.175, and 475.180. The commission may refuse to certify any
22 applicant who has violated any of the provisions of s. 475.42
23 or who is subject to discipline under s. 475.25. The
24 application shall expire 1 year from the date received if the
25 applicant fails to take the appropriate examination.
26 Section 9. For the purpose of incorporating the
27 amendments to section 475.25, Florida Statutes, in references
28 thereto, subsection (2) of section 475.22, Florida Statutes,
29 is reenacted to read:
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1 475.22 Broker to maintain office and sign at entrance
2 of office; registered office outside state; broker required to
3 cooperate in investigation.--
4 (2) If a broker's registered office is located outside
5 the State of Florida, prior to registering such office or
6 branch office, the broker shall agree in writing to cooperate
7 and shall cooperate with any investigation initiated in
8 accordance with this chapter or commission rules including,
9 but not limited to, the broker promptly supplying any
10 documents requested by any authorized representative of the
11 department and by personally appearing at any designated
12 office of the department or other location in the state or
13 elsewhere as reasonably requested by the department. If the
14 department sends, by certified mail to the broker at the
15 broker's last known business address as registered with the
16 department, a notice or request to produce any documents or to
17 appear for an interview with an authorized representative of
18 the department and the broker fails to substantially comply
19 with that request or notice, then such failure by the broker
20 is a violation of the license law, subject to the penalties of
21 s. 475.25.
22 Section 10. For the purpose of incorporating the
23 amendments to section 475.25, Florida Statutes, in references
24 thereto, subsection (2) of section 475.422, Florida Statutes,
25 is reenacted to read:
26 475.422 Disclosure.--
27 (2) Failure to comply with this section may subject
28 the licensee to disciplinary action pursuant to s. 475.25.
29 Section 11. For the purpose of incorporating the
30 amendments to section 475.25, Florida Statutes, in references
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1 thereto, subsection (1) of section 475.482, Florida Statutes,
2 is reenacted to read:
3 475.482 Real Estate Recovery Fund.--There is created
4 the Florida Real Estate Recovery Fund as a separate account in
5 the Professional Regulation Trust Fund.
6 (1) The Florida Real Estate Recovery Fund shall be
7 disbursed as provided in s. 475.484, on order of the
8 commission, as reimbursement to any person, partnership, or
9 corporation adjudged by a court of competent civil
10 jurisdiction in this state to have suffered monetary damages
11 by reason of any act committed, as a part of any real estate
12 brokerage transaction involving real property in this state,
13 by any broker or salesperson who:
14 (a) Was, at the time the alleged act was committed,
15 the holder of a current, valid, active real estate license
16 issued under this part;
17 (b) Was neither the seller, buyer, landlord, or tenant
18 in the transaction nor an officer or a director of a
19 corporation or a member of a partnership which was the seller,
20 buyer, landlord, or tenant in the transaction; and
21 (c) Was acting solely in the capacity of a real estate
22 licensee in the transaction;
23
24 provided the act was a violation proscribed in s. 475.25 or s.
25 475.42.
26 Section 12. Section 475.272, Florida Statutes, is
27 amended to read:
28 475.272 Purpose.--In order to eliminate confusion and
29 provide for a better understanding on the part of customers in
30 real estate transactions, the Legislature finds that the
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1 intent of the Brokerage Relationship Disclosure Act is to
2 provide that:
3 (1) Disclosed dual agency as an authorized form of
4 representation by a real estate licensee in this state is
5 expressly revoked;
6 (2) Real estate licensees be required to disclose to
7 customers upon first contact in residential real estate
8 transactions that they are not and will not be represented by
9 a licensee in a real estate transaction unless they engage a
10 real estate licensee in an authorized form of representation,
11 either as a single agent or as a transaction broker;
12 (3) Disclosure requirements for real estate licensees
13 relating to nonrepresentation and authorized forms of
14 brokerage representation are established;
15 (4) Florida law provides that real estate licensees
16 will operate as single agents or in a limited representative
17 capacity known as transaction brokers;
18 (4)(5) Single agents may represent either a buyer or a
19 seller, but not both, in a real estate transaction; and
20 (5)(6) Transaction brokers provide a limited form of
21 nonfiduciary representation to a buyer, a seller, or both in a
22 real estate transaction.
23 Section 13. Section 475.278, Florida Statutes, is
24 amended to read:
25 475.278 Authorized brokerage relationships; required
26 disclosures.--
27 (1) AUTHORIZED BROKERAGE RELATIONSHIPS.--A real estate
28 licensee in this state may enter into a brokerage relationship
29 as either a single agent or as a transaction broker with
30 potential buyers and sellers. A real estate licensee may not
31 operate as a disclosed or nondisclosed dual agent. As used in
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1 this section, the term "dual agent" means a broker who
2 represents as a fiduciary both the prospective buyer and the
3 prospective seller in a real estate transaction. Once a
4 brokerage relationship is established, this part does not
5 prevent a licensee from changing from one brokerage
6 relationship to the other as long as the buyer or the seller,
7 or both, gives consent as required by subparagraph (3)(c)2.
8 before the change and the appropriate disclosure of duties as
9 provided in this part is made to the buyer or seller. This
10 part does not require a customer to enter into a brokerage
11 relationship with any real estate licensee.
12 (2) TRANSACTION BROKER RELATIONSHIP.--
13 (a) Transaction broker - duties of limited
14 representation.--A transaction broker provides a limited form
15 of representation to a buyer, a seller, or both in a real
16 estate transaction but does not represent either in a
17 fiduciary capacity or as a single agent. The duties of the
18 real estate licensee in this limited form of representation
19 include the following:
20 1. Dealing honestly and fairly;
21 2. Accounting for all funds;
22 3. Using skill, care, and diligence in the
23 transaction;
24 4. Disclosing all known facts that materially affect
25 the value of residential real property and are not readily
26 observable to the buyer;
27 5. Presenting all offers and counteroffers in a timely
28 manner, unless a party has previously directed the licensee
29 otherwise in writing;
30 6. Limited confidentiality, unless waived in writing
31 by a party. This limited confidentiality will prevent
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1 disclosure that the seller will accept a price less than the
2 asking or listed price, that the buyer will pay a price
3 greater than the price submitted in a written offer, of the
4 motivation of any party for selling or buying property, that a
5 seller or buyer will agree to financing terms other than those
6 offered, or of any other information requested by a party to
7 remain confidential; and
8 7. Any additional duties that are mutually agreed to
9 with a party.
10 (b) Disclosure requirements.--Duties of a transaction
11 broker must be fully described and disclosed in writing to a
12 buyer or seller either as a separate and distinct disclosure
13 document or included as part of another document such as a
14 listing agreement or agreement for representation. The
15 disclosure must be made before, or at the time of, entering
16 into a listing agreement or an agreement for representation.
17 When incorporated into other documents, the required notice
18 must be of the same size type, or larger, as other provisions
19 of the document and must be conspicuous in its placement so as
20 to advise customers of the duties of limited representation,
21 except that the first sentence of the information identified
22 in paragraph (c) must be printed in uppercase and bold type.
23 (c) Contents of disclosure.--The required notice given
24 under paragraph (b) must include the following information in
25 the following form:
26
27 TRANSACTION BROKER NOTICE
28
29 FLORIDA LAW REQUIRES THAT REAL ESTATE LICENSEES OPERATING AS
30 TRANSACTION BROKERS DISCLOSE TO BUYERS AND SELLERS THEIR ROLE
31 AND DUTIES IN PROVIDING A LIMITED FORM OF REPRESENTATION.
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1
2 As a transaction broker, ................ (insert name of Real
3 Estate Firm and its Associates), provides to you a limited
4 form of representation that includes the following duties:
5 1. Dealing honestly and fairly;
6 2. Accounting for all funds;
7 3. Using skill, care, and diligence in the
8 transaction;
9 4. Disclosing all known facts that materially affect
10 the value of residential real property and are not readily
11 observable to the buyer;
12 5. Presenting all offers and counteroffers in a timely
13 manner, unless a party has previously directed the licensee
14 otherwise in writing;
15 6. Limited confidentiality, unless waived in writing
16 by a party. This limited confidentiality will prevent
17 disclosure that the seller will accept a price less than the
18 asking or listed price, that the buyer will pay a price
19 greater than the price submitted in a written offer, of the
20 motivation of any party for selling or buying property, that a
21 seller or buyer will agree to financing terms other than those
22 offered, or of any other information requested by a party to
23 remain confidential; and
24 7. Any additional duties that are entered into by this
25 or by separate written agreement.
26
27 Limited representation means that a buyer or seller is not
28 responsible for the acts of the licensee. Additionally,
29 parties are giving up their rights to the undivided loyalty of
30 the licensee. This aspect of limited representation allows a
31 licensee to facilitate a real estate transaction by assisting
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1 both the buyer and the seller, but a licensee will not work to
2 represent one party to the detriment of the other party when
3 acting as a transaction broker to both parties.
4
5
6 ........ ........................
7 Date Signature
8
9 ........................
10 Signature
11 (3) SINGLE AGENT RELATIONSHIP.--
12 (a) Single agent - duties.--The duties of a real
13 estate licensee owed to a buyer or seller who engages the real
14 estate licensee as a single agent include the following:
15 1. Dealing honestly and fairly;
16 2. Loyalty;
17 3. Confidentiality;
18 4. Obedience;
19 5. Full disclosure;
20 6. Accounting for all funds;
21 7. Skill, care, and diligence in the transaction; and
22 8. Presenting all offers and counteroffers in a timely
23 manner, unless a party has previously directed the licensee
24 otherwise in writing; and.
25 9. Disclosing all known facts that materially affect
26 the value of residential real property and are not readily
27 observable.
28 (b) Disclosure requirements.--
29 1. Single agent disclosure.--Duties of a single agent
30 must be fully described and disclosed in writing to a buyer or
31 seller either as a separate and distinct disclosure document
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1 or included as part of another document such as a listing
2 agreement or other agreement for representation. The
3 disclosure must be made before, or at the time of, entering
4 into a listing agreement or an agreement for representation.
5 When incorporated into other documents, the required notice
6 must be of the same size type, or larger, as other provisions
7 of the document and must be conspicuous in its placement so as
8 to advise customers of the duties of a single agent, except
9 that the first sentence of the information identified in
10 paragraph (c) must be printed in uppercase and bold type.
11 2. Transition to transaction broker disclosure.--A
12 single agent relationship may be changed to a transaction
13 broker relationship at any time during the relationship
14 between an agent and principal, provided the agent gives the
15 disclosure required under paragraph (2)(b) and the principal
16 gives to the agent consent as required under subparagraph
17 (c)2. before a change in relationship. This disclosure must be
18 in writing to the principal either as a separate and distinct
19 document or included as part of other documents such as a
20 listing agreement or other agreements for representation. When
21 incorporated into other documents, the required notice must be
22 of the same size type, or larger, as other provisions of the
23 document and must be conspicuous in its placement so as to
24 advise customers of the duties of limited representation,
25 except that the first sentence of the information identified
26 in subparagraph (c)2. must be printed in uppercase and bold
27 type.
28 (c) Contents of disclosure.--
29 1. Single agent duties disclosure.--The notice
30 required under subparagraph (b)1. must include the following
31 information in the following form:
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1
2 SINGLE AGENT NOTICE
3
4 FLORIDA LAW REQUIRES THAT REAL ESTATE LICENSEES OPERATING AS
5 SINGLE AGENTS DISCLOSE TO BUYERS AND SELLERS THEIR DUTIES.
6
7 As a single agent, ................ (insert name of
8 Real Estate Entity and its Associates) owe to you the
9 following duties:
10 1. Dealing honestly and fairly;
11 2. Loyalty;
12 3. Confidentiality;
13 4. Obedience;
14 5. Full disclosure;
15 6. Accounting for all funds;
16 7. Skill, care, and diligence in the transaction; and
17 8. Presenting all offers and counteroffers in a timely
18 manner, unless a party has previously directed the licensee
19 otherwise in writing; and.
20 9. Disclosing all known facts that materially affect
21 the value of residential real property and are not readily
22 observable.
23
24
25 ........ ........................
26 Date Signature
27
28 2. Transition disclosure.--The notice required under
29 subparagraph (b)2. must include the following information in
30 the following form as well as the information required in
31 paragraph (2)(c):
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1
2 CONSENT TO TRANSITION TO TRANSACTION BROKER
3
4 FLORIDA LAW ALLOWS REAL ESTATE LICENSEES WHO REPRESENT A BUYER
5 OR SELLER AS A SINGLE AGENT TO CHANGE FROM A SINGLE AGENT
6 RELATIONSHIP TO A TRANSACTION BROKERAGE RELATIONSHIP IN ORDER
7 FOR THE LICENSEE TO ASSIST BOTH PARTIES IN A REAL ESTATE
8 TRANSACTION BY PROVIDING A LIMITED FORM OF REPRESENTATION TO
9 BOTH THE BUYER AND THE SELLER. THIS CHANGE IN RELATIONSHIP
10 CANNOT OCCUR WITHOUT YOUR PRIOR WRITTEN CONSENT.
11
12 ........I agree that my agent may assume the role and duties
13 of a transaction broker. [must be initialed or signed]
14
15 (4) NO BROKERAGE RELATIONSHIP - DUTIES.--A real estate
16 licensee owes to a customer with whom the licensee has no
17 brokerage relationship the following duties:
18 (a) Dealing honestly and fairly;
19 (b) Disclosing all known facts that materially affect
20 the value of the residential real property which are not
21 readily observable to the buyer; and
22 (c) Accounting for all funds entrusted to the
23 licensee.
24 Section 14. Section 475.451, Florida Statutes, is
25 amended to read:
26 475.451 Schools teaching real estate practice.--
27 (1) Each person, school, or institution, except
28 approved and accredited colleges, universities, community
29 colleges, and area technical centers in this state, which
30 offers or conducts any course of study in real estate
31 practice, teaches any course prescribed by the commission as a
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1 condition precedent to licensure or renewal of licensure as a
2 broker or salesperson, or teaches any course designed or
3 represented to enable or assist applicants for licensure as
4 brokers or salespersons to pass examinations for such
5 licensure conducted by the department shall, before commencing
6 or continuing further to offer or conduct such course or
7 courses, obtain a permit from the department and abide by the
8 regulations imposed upon such person, school, or institution
9 by this chapter and rules of the commission adopted pursuant
10 to this chapter. The exemption for colleges, universities,
11 community colleges, and area technical centers is limited to
12 transferable college credit courses offered by such
13 institutions.
14 (2) An applicant for a permit to operate a proprietary
15 real estate school, to be a chief administrator of a
16 proprietary real estate school or a state institution, or to
17 be an instructor for a proprietary real estate school or a
18 state institution must meet the qualifications for practice
19 set forth in s. 475.17(1) and the following minimal
20 requirements:
21 (a) "School permitholder" means the is defined as that
22 individual who is responsible for directing the overall
23 operation of a proprietary real estate school. A school
24 permitholder She or he must be the holder of a license as a
25 broker, either active or voluntarily inactive, or must have
26 passed an instructor's examination approved by the commission
27 administered by the department. A school permitholder must
28 also meet the requirements of a school instructor if she or he
29 is actively engaged in teaching.
30 (b) "Chief administrative person" means the is defined
31 as that individual who is responsible for the administration
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1 of the overall policies and practices of the institution or
2 proprietary real estate school. A chief administrative person
3 She or he must also meet the requirements of a school
4 instructor if she or he is actively engaged in teaching.
5 (c) "School instructor" means an is defined as that
6 individual who actively instructs persons in the classroom in
7 noncredit college courses in a college, university, or
8 community college or courses in an area technical center or
9 proprietary real estate school.
10 1. Before commencing to provide such instruction, the
11 applicant instruct noncredit college courses in a college,
12 university, or community college, or courses in an area
13 technical center or proprietary real estate school, she or he
14 must certify the applicant's her or his competency and obtain
15 an instructor permit by meeting one of the following
16 requirements:
17 a. Hold a bachelor's degree in a business-related
18 subject, such as real estate, finance, accounting, business
19 administration, or its equivalent and hold a valid broker's
20 license in this state.
21 b. Hold a bachelor's degree, have extensive real
22 estate experience, as defined by rule, and hold a valid
23 broker's license in this state.
24 c. Pass an instructor's examination approved by the
25 commission administered by the Division of Real Estate.
26 2. Any requirement by the commission for a teaching
27 demonstration or practical examination must apply to all
28 school instructor applicants.
29 3. The department shall renew an instructor permit
30 upon receipt of a renewal application and fee. The renewal
31 application shall include proof that the permitholder has,
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1 since the issuance or renewal of the current permit, Every
2 second year, each instructor must recertify her or his
3 competency by presenting to the commission evidence of her or
4 his having successfully completed a minimum of 15 classroom
5 hours of instruction in real estate subjects or instructional
6 techniques, as prescribed by the commission. The commission
7 shall adopt rules providing for the renewal of instructor
8 permits at least every 2 years. Any permit that is not renewed
9 at the end of the permit period established by the department
10 shall automatically revert to involuntarily inactive status.
11
12 The department may require an applicant to submit names of
13 persons having knowledge concerning the applicant and the
14 enterprise; may propound interrogatories to such persons and
15 to the applicant concerning the character of the applicant,
16 including the taking of fingerprints for processing through
17 the Federal Bureau of Investigation; and shall make such
18 investigation of the applicant or the school or institution as
19 it may deem necessary to the granting of the permit. If an
20 objection is filed, it shall be considered in the same manner
21 as objections or administrative complaints against other
22 applicants for licensure by the department.
23 (3) It is unlawful for any person, school, or
24 institution to offer the courses described in subsection (1)
25 or to conduct classes in such courses, regardless of the
26 number of pupils, whether by correspondence or otherwise,
27 without first procuring a permit, or to guarantee that its
28 pupils will pass any examinations required for licensure given
29 by the department, or to represent that the issuance of a
30 permit is any recommendation or endorsement of the person,
31
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1 school, or institution to which it is issued or of any course
2 of instruction given thereunder.
3 (4) Any person who violates this section commits is
4 guilty of a misdemeanor of the second degree, punishable as
5 provided in s. 775.082 or s. 775.083.
6 (5) The location of classes and frequency of class
7 meetings shall be in the discretion of the school offering
8 real estate courses, so long as such courses conform to s.
9 475.17(2).
10 (6) Any course prescribed by the commission as a
11 condition precedent to any person's becoming initially
12 licensed as a salesperson may be taught in any real estate
13 school through the use of a video tape of instruction by a
14 currently permitted licensed instructor from any such school.
15 The commission may require that any such video tape course
16 have a single session of live instruction by a currently
17 permitted licensed instructor from any such school; however,
18 this requirement shall not exceed 3 classroom hours. All
19 other prescribed courses, except the continuing education
20 course required by s. 475.182, shall be taught by a currently
21 permitted licensed school instructor personally in attendance
22 at such course. The continuing education course required by
23 s. 475.182 may be taught by an equivalent correspondence
24 course; however, any such course of correspondence shall be
25 required to have a final examination, prepared and
26 administered by the school issuing the correspondence course.
27 The continuing education requirements provided in this section
28 or provided in any other section in this chapter do not apply
29 with respect to any attorney who is otherwise qualified under
30 the provisions of this chapter.
31
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1 (7) Any person holding a school instructor permit on
2 October 1, 1983, is exempt from the instructor examination
3 requirements of paragraph (2)(c) as long as the person
4 continuously holds such a permit and complies with all other
5 requirements of this chapter.
6 (8) A permitholder under pursuant to this section may
7 be issued additional permits whenever it is clearly shown that
8 the requested additional permits are necessary to the conduct
9 of the business of a real estate school and that the
10 additional permits will not be used in a manner likely to be
11 prejudicial to any person, including a licensee or a
12 permitholder under this chapter.
13 Section 15. Subsection (6) is added to section
14 475.452, Florida Statutes, to read:
15 475.452 Advance fees; deposit; accounting; penalty;
16 damages.--
17 (6) This section does not apply to a real estate
18 broker auctioning real property if in advance of the auction
19 the broker and seller have entered into a written agreement
20 specifically providing for anticipated expenses to be incurred
21 and paid. However, any trust funds received by the broker in
22 advance of the auction may not be disbursed or otherwise used
23 as an advance commission or fee for services without the
24 broker's first having complied with the provisions of this
25 subsection.
26 Section 16. Subsection (7) of section 475.484, Florida
27 Statutes, is amended to read:
28 475.484 Payment from the fund.--
29 (7) Upon the payment of any amount from the Real
30 Estate Recovery Fund in settlement of a claim in satisfaction
31 of a judgment against a broker or salesperson as described in
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1 s. 475.482(1), the license of such broker or salesperson shall
2 be automatically suspended upon the date of payment from the
3 fund. The license of such broker or salesperson may not be
4 reinstated until the licensee has repaid in full, plus
5 interest, the amount paid from the fund. No further
6 administrative action is necessary. A discharge of bankruptcy
7 does not relieve a licensee from the penalties and
8 disabilities provided in this section, except to the extent
9 that this subsection conflicts with 11 U.S.C. s. 525, in which
10 case the commission may order the license not to be suspended
11 or otherwise discriminated against.
12 Section 17. Section 475.5016, Florida Statutes, is
13 created to read:
14 475.5016 Authority to inspect and audit.--Duly
15 authorized agents and employees of the department shall have
16 the power to inspect and audit in a lawful manner at all
17 reasonable hours any broker or brokerage office licensed under
18 this chapter, for the purpose of determining if any of the
19 provisions of this chapter, chapter 455, or any rule adopted
20 under authority of either chapter is being violated.
21 Section 18. Paragraphs (a), (e), and (l) of subsection
22 (1) and subsection (2) of section 475.611, Florida Statutes,
23 are amended to read:
24 475.611 Definitions.--
25 (1) As used in this part, the term:
26 (a) "Appraisal" or "appraisal services" means the
27 services provided by certified or, licensed appraisers, or
28 registered assistant appraisers, and includes:
29 1. "Appraisal assignment" denotes an engagement for
30 which a person is employed or retained to act, or could be
31 perceived by third parties or the public as acting, as an
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1 agent or a disinterested third party in rendering an unbiased
2 analysis, opinion, review, or conclusion relating to the
3 nature, quality, value, or utility of specified interests in,
4 or aspects of, identified real property.
5 2. "Analysis assignment" denotes appraisal services
6 that relate to the employer's or client's individual needs or
7 investment objectives and includes specialized marketing,
8 financing, and feasibility studies as well as analyses,
9 opinions, and conclusions given in connection with activities
10 such as real estate brokerage, mortgage banking, or real
11 estate counseling.
12 (e) "Appraiser" means any person who is a registered
13 assistant real estate appraiser, licensed real estate
14 appraiser, or a certified real estate appraiser. An appraiser
15 renders a professional service and is a professional within
16 the meaning of s. 95.11(4)(a).
17 (l) "Registered assistant appraiser" means a person
18 who is registered with the department as qualified to perform
19 appraisal services under the supervision of a licensed or
20 certified appraiser.
21 (2) Wherever the word "operate" or "operating" appears
22 in this part with respect to a registered assistant appraiser,
23 licensed appraiser, or certified appraiser; in any order,
24 rule, or regulation of the board; in any pleading, indictment,
25 or information under this part section; in any court action or
26 proceeding; or in any order or judgment of a court, it shall
27 be deemed to mean the commission of one or more acts described
28 in this part section as constituting or defining a registered
29 assistant appraiser, licensed appraiser, or certified
30 appraiser, not including, however, any of the exceptions
31 stated therein. A single act is sufficient to bring a person
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1 within the meaning of this subsection section, and each act,
2 if prohibited herein, constitutes a separate offense.
3 Section 19. Section 475.612, Florida Statutes, is
4 amended to read:
5 475.612 Certification, or licensure, or registration
6 required.--
7 (1) A person may not use the title "certified real
8 estate appraiser," "licensed real estate appraiser," or
9 "registered assistant real estate appraiser," or any
10 abbreviation or words to that effect, or issue an appraisal
11 report in connection with any federally related transaction,
12 unless such person is certified, licensed, or registered by
13 the department under pursuant to this part section. However,
14 the work upon which an appraisal report is based may be
15 performed by a person who is not a certified or, licensed
16 appraiser, or registered assistant appraiser if the report is
17 approved and signed by a certified or licensed appraiser.
18 (2) This section does not preclude a broker,
19 salesperson, or broker-salesperson who is not a certified or,
20 licensed real estate appraiser, or registered assistant real
21 estate appraiser from appraising real estate for compensation.
22 Such persons may continue to provide appraisals and appraisal
23 services for compensation so long as they do not represent
24 themselves as certified, or licensed, or registered under this
25 part section.
26 (3) This section does shall not apply to a real estate
27 broker or salesperson who, in the ordinary course of business,
28 performs a comparative market analysis and/or gives an opinion
29 of the value of real estate. However, in no event may this
30 opinion be referred to or construed as an appraisal.
31
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1 (4) This section does shall not prevent any state
2 court or administrative law judge from certifying as an expert
3 witness in any legal or administrative proceeding an appraiser
4 who is not certified, licensed, or registered; nor does shall
5 it prevent any appraiser from testifying, with respect to the
6 results of an appraisal.
7 (5) This section does shall not apply to any full-time
8 graduate student who is enrolled in a degree program in
9 appraising at a college or university in this state, if the
10 student is acting under the direct supervision of a certified
11 or licensed appraiser or licensed broker and is engaged only
12 in appraisal activities related to the approved degree
13 program. Any appraisal report by the student must be issued in
14 the name of the supervising individual.
15 (6) This section does shall not apply to any employee
16 of a local, state, or federal agency who performs appraisal
17 services within the scope of her or his employment. However,
18 this exemption does shall not apply where any local, state, or
19 federal agency requires an employee to be registered,
20 licensed, or certified to perform appraisal services.
21 Section 20. Section 475.6145, Florida Statutes, is
22 created to read:
23 475.6145 Seal.--The board shall adopt a seal by which
24 it shall authenticate its proceedings, records, and acts.
25 Copies of the proceedings, records, and acts of the board, and
26 certificates purporting to relate the facts concerning such
27 proceedings, records, and acts, which are signed by the board
28 chair, the custodian of such records, or any other person
29 authorized to make such certification and which are
30 authenticated by such seal, shall be prima facie evidence of
31
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1 such proceedings, records, and acts in all courts of this
2 state.
3 Section 21. Section 475.6147, Florida Statutes, is
4 created to read:
5 475.6147 Fees.--
6 (1) The board by rule may establish fees to be paid
7 for application, licensing and renewal, certification and
8 recertification, reinstatement, and recordmaking and
9 recordkeeping. The fee for initial application may not exceed
10 $150, and the combined cost of the application and examination
11 may not exceed $300. The initial license fee and the license
12 renewal fee may not exceed $150 for each year of the duration
13 of the license. The board may also establish by rule a late
14 renewal penalty. The board shall establish fees that are
15 adequate to ensure its continued operation. Fees shall be
16 based on estimates made by the department of the revenue
17 required to implement this part and other provisions of law
18 relating to the regulation of real estate appraisers.
19 (2) Application and license fees shall be refunded
20 upon a determination by the board that the state is not
21 entitled to the fees or that only a portion of the resources
22 have been expended in the processing of the application or
23 shall be refunded if for any other reason the application is
24 not completely processed. The board shall implement this
25 subsection by rule.
26 Section 22. Section 475.615, Florida Statutes, is
27 amended to read:
28 475.615 Qualifications for registration, licensure, or
29 certification.--
30 (1) Any person desiring to act as a registered
31 assistant appraiser or as a, licensed, or certified appraiser
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1 must make application in writing to the department in such
2 form and detail as the board shall prescribe. Each applicant
3 must be at least 18 years of age and hold a high school
4 diploma or its equivalent. At the time of application, a
5 person must furnish evidence of successful completion of
6 required education and evidence of required experience, if
7 any.
8 (2) The board is authorized to waive or modify any
9 education, experience, or examination requirements established
10 in this section in order to conform with any such requirements
11 established by the Appraisal Qualifications Board of the
12 Appraisal Foundation and recognized by the Appraisal
13 Subcommittee or any successor body recognized by federal law.
14 (3) Appropriate fees, as set forth in the rules of the
15 board pursuant to s. 475.6147, and fingerprints for processing
16 through appropriate law enforcement agencies must accompany
17 all applications for registration, licensure, and
18 certification.
19 (4) In the event that the applicant is currently a
20 registered assistant appraiser or a licensed or certified
21 appraiser and is making application to obtain a different
22 status of appraisal licensure, should such application be
23 received by the department within 180 days prior to through
24 180 days after the applicant's scheduled renewal, the charge
25 for the application shall be established by the rules of the
26 board pursuant to s. 475.6147.
27 (5)(4) At the time of filing a notarized application
28 for registration, licensure, or certification, the applicant
29 must sign a pledge to comply with the Uniform Standards of
30 Professional Appraisal Practice upon registration, licensure,
31 or certification, and must indicate in writing that she or he
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1 understands the types of misconduct for which disciplinary
2 proceedings may be initiated. The application shall expire 1
3 year from the date received, if the applicant for
4 registration, licensure, or certification fails to take the
5 appropriate examination.
6 (6)(5) All applicants must be competent and qualified
7 to make real estate appraisals with safety to those with whom
8 they may undertake a relationship of trust and confidence and
9 the general public. If any applicant has been denied
10 registration, licensure, or certification, or has been
11 disbarred, or the applicant's registration, license, or
12 certificate to practice or conduct any regulated profession,
13 business, or vocation has been revoked or suspended by this or
14 any other state, any nation, or any possession or district of
15 the United States, or any court or lawful agency thereof,
16 because of any conduct or practices which would have warranted
17 a like result under this part section, or if the applicant has
18 been guilty of conduct or practices in this state or elsewhere
19 which would have been grounds for disciplining her or his
20 registration, license, or certification under this part
21 section had the applicant then been a registered assistant
22 appraiser or a, licensed, or certified appraiser, the
23 applicant shall be deemed not to be qualified unless, because
24 of lapse of time and subsequent good conduct and reputation,
25 or other reason deemed sufficient, it appears to the board
26 that the interest of the public is not likely to be endangered
27 by the granting of registration, licensure, or certification.
28 (7)(6) No applicant seeking to become registered,
29 licensed, or certified under this part section may be rejected
30 solely by virtue of membership or lack of membership in any
31 particular appraisal organization.
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1 Section 23. Subsections (3) and (4) of section
2 475.616, Florida Statutes, are amended to read:
3 475.616 Examination requirements.--To be licensed or
4 certified as an appraiser, the applicant must demonstrate, by
5 passing a written examination, that she or he possesses:
6 (3) An understanding of the standards for the
7 development and communication of real estate appraisals as
8 provided in this part section.
9 (4) An understanding of the types of misconduct for
10 which disciplinary proceedings may be initiated against a
11 licensed or certified appraiser, as set forth in this part
12 section.
13 Section 24. Section 475.617, Florida Statutes, is
14 amended to read:
15 475.617 Education and experience requirements.--
16 (1) To be registered as an assistant appraiser, an
17 applicant must present evidence satisfactory to the board that
18 she or he has successfully completed at least up to 75 hours
19 of approved academic courses in subjects related to real
20 estate appraisal, which shall include coverage of the Uniform
21 Standards of Professional Appraisal Practice from a nationally
22 recognized or state-recognized appraisal organization, area
23 technical center, accredited community college, college, or
24 university, state or federal agency or commission, or
25 proprietary real estate school that holds a permit pursuant to
26 s. 475.451. A classroom hour is defined as 50 minutes out of
27 each 60-minute segment. Past courses may be approved on an
28 hour-for-hour basis.
29 (2) To be licensed as an appraiser, an applicant must
30 present evidence satisfactory to the board that she or he:
31
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1 (a) Has at least 2 years of experience in real
2 property appraisal as defined by rule.
3 (b) Has successfully completed at least 75 classroom
4 hours, inclusive of examination, of approved academic courses
5 in subjects related to real estate appraisal, which shall
6 include coverage of the Uniform Standards of Professional
7 Appraisal Practice from a nationally recognized or
8 state-recognized appraisal organization, area technical
9 center, accredited community college, college, or university,
10 state or federal agency or commission, or proprietary real
11 estate school that holds a permit pursuant to s. 475.451. A
12 classroom hour is defined as 50 minutes out of each 60-minute
13 segment. Past courses may be approved by the board and
14 substituted on an hour-for-hour basis.
15 (3) To be certified as a residential appraiser, an
16 applicant must present satisfactory evidence to the board that
17 she or he:
18 (a) Has at least 2 years of experience in real
19 property appraisal as defined by rule.
20 (b) Has successfully completed at least 120 up to 165
21 classroom hours, inclusive of examination, of approved
22 academic courses in subjects related to real estate appraisal,
23 which shall include coverage of the Uniform Standards of
24 Professional Appraisal Practice from a nationally recognized
25 or state-recognized appraisal organization, area technical
26 center, accredited community college, college, or university,
27 state or federal agency or commission, or proprietary real
28 estate school that holds a permit pursuant to s. 475.451. A
29 classroom hour is defined as 50 minutes out of each 60-minute
30 segment. Past courses may be approved by the board and
31 substituted on an hour-for-hour basis.
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1 (4) To be certified as a general appraiser, an
2 applicant must present evidence satisfactory to the board that
3 she or he:
4 (a) Has at least 2 years of experience in real
5 property appraisal as defined by rule.
6 (b) Has successfully completed at least 165 classroom
7 hours, inclusive of examination, of approved academic courses
8 in subjects related to real estate appraisal, which shall
9 include coverage of the Uniform Standards of Professional
10 Appraisal Practice from a nationally recognized or
11 state-recognized appraisal organization, area technical
12 center, accredited community college, college, or university,
13 state or federal agency or commission, or proprietary real
14 estate school that holds a permit pursuant to s. 475.451. A
15 classroom hour is defined as 50 minutes out of each 60-minute
16 segment. Past courses may be approved by the board and
17 substituted on an hour-for-hour basis.
18 (5) Each applicant must furnish, under oath, a
19 detailed statement of the experience for each year of
20 experience she or he claims. Upon request, the applicant
21 shall furnish to the board, for its examination, copies of
22 appraisal reports or file memoranda to support the claim for
23 experience.
24 Section 25. Subsection (4) of section 475.618, Florida
25 Statutes, is amended to read:
26 475.618 Renewal of registration, license,
27 certification, or instructor permit; continuing education.--
28 (4) At least 60 days prior to the end of the
29 registration, license, certification, or instructor permit
30 period, the department shall cause to be mailed a notice of
31 renewal and possible reversion to the last known address of
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1 the registered assistant registrant, licensee,
2 certificateholder, or permitholder.
3 Section 26. Subsection (2) of section 475.619, Florida
4 Statutes, is amended to read:
5 475.619 Inactive status.--
6 (2) Any registration, license, or certification which
7 has been inactive for more than 4 years shall automatically
8 expire. Once a registration, license, or certification
9 expires, it becomes null and void without any further action
10 by the board or department. Two years prior to the expiration
11 of the registration, license, or certification, the department
12 shall give notice by mail to the registered assistant
13 registrant, licensee, or certificateholder at her or his last
14 known address. The board shall prescribe by rule a fee not to
15 exceed $100 for the late renewal of an inactive registration,
16 license, or certification. The department shall collect the
17 current renewal fee for each renewal period in which the
18 registration, license, or certification was inactive, in
19 addition to any applicable late renewal fee.
20 Section 27. Section 475.620, Florida Statutes, is
21 amended to read:
22 475.620 Corporations and partnerships ineligible for
23 licensure or certification.--
24 (1) A license or certification may not be issued under
25 this part section to a corporation, partnership, firm, or
26 group. However, an appraiser licensed or certified under this
27 part section may provide an appraisal report for or on behalf
28 of a corporation, partnership, firm, or group, if the report
29 is prepared by, or under the personal direction of, such
30 appraiser and is reviewed and signed by her or him.
31
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1 (2) The term "state-registered assistant appraiser,"
2 "state-licensed appraiser," or "state-certified appraiser" may
3 only be used to refer to an individual who is registered,
4 licensed, or certified under this part section and may not be
5 used following or immediately in connection with the name or
6 signature of a corporation, partnership, firm, or group, or in
7 such manner that it could be interpreted as implying
8 registration, licensure, or certification under this part
9 section of a corporation, partnership, firm, or group, or
10 anyone other than an individual appraiser. Corporations,
11 partnerships, firms, or groups which employ certified or,
12 licensed appraisers, or registered assistant appraisers who
13 provide appraisal reports, as defined by this part section,
14 may represent to the public and advertise that they offer
15 appraisals performed by registered, licensed, or certified
16 appraisers.
17 Section 28. Section 475.622, Florida Statutes, is
18 amended to read:
19 475.622 Display and disclosure of licensure, or
20 certification, or registration.--
21 (1) Each appraiser registered, licensed, or certified
22 under this part section shall place her or his registration,
23 license, or certification number adjacent to or immediately
24 beneath the designation "state-registered assistant real
25 estate appraiser," "state-licensed real estate appraiser,"
26 "state-certified residential real estate appraiser," or
27 "state-certified general real estate appraiser," or their
28 appropriate abbreviations as defined by rule, as applicable,
29 when such term is used in an appraisal report or in a contract
30 or other instrument used by the appraiser in conducting real
31 property appraisal activities. The applicable designation
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1 shall be included in any newspaper, telephone directory, or
2 other advertising medium, as defined by rule, used by the
3 appraiser.
4 (2) A registered assistant appraiser or, licensed, or
5 certified appraiser may not sign any appraisal report or
6 communicate same without disclosing in writing that she or he
7 is a state-registered assistant appraiser or, state-licensed,
8 state-certified residential, or state-certified general
9 appraiser, as applicable, even if the appraisal performed is
10 outside of the scope of the appraiser's registration,
11 licensure, or certification as an appraiser.
12 Section 29. Section 475.623, Florida Statutes, is
13 amended to read:
14 475.623 Registration of office location.--Each
15 appraiser registered, licensed, or certified under this part
16 section shall furnish in writing to the department each
17 business address from which she or he operates in the
18 performance of appraisal services. Each appraiser must notify
19 the department of any change of address within 10 days on a
20 form provided by the department.
21 Section 30. Section 475.624, Florida Statutes, is
22 amended to read:
23 475.624 Discipline.--The board may deny an application
24 for registration, licensure, or certification; may investigate
25 the actions of any appraiser registered, licensed, or
26 certified under this part section; and may reprimand or impose
27 an administrative, fine not to exceed $5,000 for each count or
28 separate offense against any such appraiser; and may, revoke,
29 or suspend, for a period not to exceed 10 years, the
30 registration, license, or certification of any such appraiser,
31 or place any such appraiser on probation, if it finds that the
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1 registered assistant registrant, licensee, or
2 certificateholder:
3 (1) Has violated any provisions of this part or of s.
4 455.227(1); however, licensees under this part are exempt from
5 the provisions of s. 455.227(1)(i).
6 (2) Has been guilty of fraud, misrepresentation,
7 concealment, false promises, false pretenses, dishonest
8 conduct, culpable negligence, or breach of trust in any
9 business transaction in this state or any other state, nation,
10 or territory; has violated a duty imposed upon her or him by
11 law or by the terms of a contract, whether written, oral,
12 express, or implied, in an appraisal assignment; has aided,
13 assisted, or conspired with any other person engaged in any
14 such misconduct and in furtherance thereof; or has formed an
15 intent, design, or scheme to engage in such misconduct and
16 committed an overt act in furtherance of such intent, design,
17 or scheme. It is immaterial to the guilt of the registered
18 assistant registrant, licensee, or certificateholder that the
19 victim or intended victim of the misconduct has sustained no
20 damage or loss; that the damage or loss has been settled and
21 paid after discovery of the misconduct; or that such victim or
22 intended victim was a customer or a person in confidential
23 relation with the registered assistant registrant, licensee,
24 or certificateholder, or was an identified member of the
25 general public.
26 (3) Has advertised services in a manner which is
27 fraudulent, false, deceptive, or misleading in form or
28 content.
29 (4) Has violated any of the provisions of this section
30 or any lawful order or rule issued under the provisions of
31 this section or chapter 455.
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1 (5) Has been convicted or found guilty of, or entered
2 a plea of nolo contendere to, regardless of adjudication, a
3 crime in any jurisdiction which directly relates to the
4 activities of a registered assistant appraiser or, licensed,
5 or certified appraiser, or which involves moral turpitude or
6 fraudulent or dishonest conduct. The record of a conviction
7 certified or authenticated in such form as admissible in
8 evidence under the laws of the state shall be admissible as
9 prima facie evidence of such guilt.
10 (6) Has had a registration, license, or certification
11 as an appraiser revoked, suspended, or otherwise acted
12 against, or has been disbarred, or has had her or his
13 registration, license, or certificate to practice or conduct
14 any regulated profession, business, or vocation revoked or
15 suspended by this or any other state, any nation, or any
16 possession or district of the United States, or has had an
17 application for such registration, licensure, or certification
18 to practice or conduct any regulated profession, business, or
19 vocation denied by this or any other state, any nation, or any
20 possession or district of the United States.
21 (7) Has become temporarily incapacitated from acting
22 as an appraiser with safety to those in a fiduciary
23 relationship with her or him because of drunkenness, use of
24 drugs, or temporary mental derangement; however, suspension of
25 a license, or certification, or registration in such cases
26 shall only be for the period of such incapacity.
27 (8) Is confined in any county jail, postadjudication;
28 is confined in any state or federal prison or mental
29 institution; or, through mental disease or deterioration, can
30 no longer safely be entrusted to deal with the public or in a
31 confidential capacity.
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1 (9) Has failed to inform the board in writing within
2 30 days after pleading guilty or nolo contendere to, or being
3 convicted or found guilty of, any felony.
4 (10) Has been found guilty, for a second time, of any
5 misconduct that warrants disciplinary action, or has been
6 found guilty of a course of conduct or practice which shows
7 that she or he is incompetent, negligent, dishonest, or
8 untruthful to an extent that those with whom she or he may
9 sustain a confidential relationship may not safely do so.
10 (11) Has made or filed a report or record, either
11 written or oral, which the registered assistant, licensee, or
12 certificateholder knows to be false; has willfully failed to
13 file a report or record required by state or federal law; has
14 willfully impeded or obstructed such filing, or has induced
15 another person to impede or obstruct such filing. However,
16 such reports or records shall include only those which are
17 signed or presented in the capacity of a registered assistant
18 appraiser or licensed or certified appraiser.
19 (12) Has obtained or attempted to obtain a
20 registration, license, or certification by means of knowingly
21 making a false statement, submitting false information,
22 refusing to provide complete information in response to an
23 application question, or engaging in fraud, misrepresentation,
24 or concealment.
25 (13) Has paid money or other valuable consideration,
26 except as required by this section, to any member or employee
27 of the board to obtain a registration, license, or
28 certification under this section.
29 (14) Has violated any standard for the development or
30 communication of a real estate appraisal or other provision of
31 the Uniform Standards of Professional Appraisal Practice.
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1 (15) Has failed or refused to exercise reasonable
2 diligence in developing an appraisal or preparing an appraisal
3 report.
4 (16) Has failed to communicate an appraisal without
5 good cause.
6 (17) Has accepted an appraisal assignment if the
7 employment itself is contingent upon the appraiser reporting a
8 predetermined result, analysis, or opinion, or if the fee to
9 be paid for the performance of the appraisal assignment is
10 contingent upon the opinion, conclusion, or valuation reached
11 upon the consequences resulting from the appraisal assignment.
12 (18) Has failed to timely notify the department of any
13 change in business location, or has failed to fully disclose
14 all business locations from which she or he operates as a
15 registered assistant real estate appraiser or, licensed, or
16 certified real estate appraiser.
17 Section 31. Paragraph (a) of subsection (1) of section
18 475.626, Florida Statutes, is amended to read:
19 475.626 Violations and penalties.--
20 (1) VIOLATIONS.--
21 (a) No person shall operate or attempt to operate as a
22 registered assistant appraiser or, licensed, or certified
23 appraiser without being the holder of a valid and current
24 registration, license, or certification.
25 Section 32. Subsections (1) and (2) of section
26 475.627, Florida Statutes, are amended to read:
27 475.627 Appraisal course instructors.--
28 (1) Where the course or courses to be taught are
29 prescribed by the board or approved precedent to registration,
30 licensure, certification, or renewal as a registered assistant
31 appraiser, licensed appraiser, or certified residential
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1 appraiser, before commencing to instruct noncredit college
2 courses in a college, university, or community college, or
3 courses in an area technical center or proprietary real estate
4 school, a person must certify her or his competency by meeting
5 one of the following requirements:
6 (a) Hold a valid certification as a residential real
7 estate appraiser in this or any other state.
8 (b) Pass an appraiser instructor's examination which
9 shall test knowledge of residential appraisal topics.
10 (2) Where the course or courses to be taught are
11 prescribed by the board or approved precedent to registration,
12 licensure, certification, or renewal as a registered assistant
13 appraiser, licensed appraiser, or certified appraiser, before
14 commencing to instruct noncredit college courses in a college,
15 university, or community college, or courses in an area
16 technical center or proprietary real estate school, a person
17 must certify her or his competency by meeting one of the
18 following requirements:
19 (a) Hold a valid certification as a general real
20 estate appraiser in this or any other state.
21 (b) Pass an appraiser instructor's examination which
22 shall test knowledge of residential and nonresidential
23 appraisal topics.
24 Section 33. Section 475.628, Florida Statutes, is
25 amended to read:
26 475.628 Professional standards for licensed and
27 certified appraisers registered, licensed, or certified under
28 this part.--Each appraiser registered, licensed, or certified
29 under this part section shall comply with the Uniform
30 Standards of Professional Appraisal Practice. Statements on
31 appraisal standards which may be issued for the purpose of
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1 clarification, interpretation, explanation, or elaboration
2 through the Appraisal Foundation shall also be binding on any
3 appraiser registered, licensed, or certified under this part
4 section.
5 Section 34. Section 475.629, Florida Statutes, is
6 amended to read:
7 475.629 Retention of records.--An appraiser
8 registered, licensed, or certified under this part section
9 shall retain, for at least 5 years, original or true copies of
10 any contracts engaging the appraiser's services, appraisal
11 reports, and supporting data assembled and formulated by the
12 appraiser in preparing appraisal reports. The period for
13 retention of the records applicable to each engagement of the
14 services of the appraiser runs from the date of the submission
15 of the appraisal report to the client. These records must be
16 made available by the appraiser for inspection and copying by
17 the department on reasonable notice to the appraiser. If an
18 appraisal has been the subject of or has served as evidence
19 for litigation, reports and records must be retained for at
20 least 2 years after the trial.
21 Section 35. Section 475.6295, Florida Statutes, is
22 created to read:
23 475.6295 Authority to inspect.--Duly authorized agents
24 and employees of the department shall have the power to
25 inspect in a lawful manner at all reasonable hours any
26 appraiser or appraisal office licensed under this chapter, for
27 the purpose of determining if any of the provisions of this
28 chapter, chapter 455, or any rule adopted under authority of
29 either chapter is being violated.
30 Section 36. Paragraph (c) of subsection (2) of section
31 475.630, Florida Statutes, is amended to read:
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1 475.630 Temporary practice.--
2 (2) In order to register with the board, the appraiser
3 must:
4 (c) Agree in writing to cooperate with any
5 investigation initiated under this part section by promptly
6 supplying such documents that any authorized representative of
7 the department may request. If the department sends a notice
8 by certified mail to the last known address of a nonresident
9 appraiser to produce documents or to appear in conjunction
10 with an investigation and the nonresident appraiser fails to
11 comply with that request, the board may impose on that
12 nonresident appraiser any disciplinary action or penalty
13 authorized under this part section.
14 Section 37. Section 553.991, Florida Statutes, is
15 amended to read:
16 553.991 Purpose.--The purpose of this part is to
17 provide for a statewide uniform system for rating the energy
18 efficiency of buildings and to ensure that those ratings are
19 disclosed to prospective purchasers at their request. It is
20 in the interest of the state to encourage the consideration of
21 the energy-efficiency rating system in the market so as to
22 provide market rewards for energy-efficient buildings and to
23 those persons or companies designing, building, or selling
24 energy-efficient buildings.
25 Section 38. Section 553.994, Florida Statutes, is
26 amended to read:
27 553.994 Applicability.--The rating system shall apply
28 to all public, commercial, and existing residential buildings
29 in the state. and may be applied to new residential buildings,
30 except as identified by the department by rule in accordance
31
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1 with the procedures of chapter 120, according to the following
2 schedule:
3 (1) For new residential buildings, by January 1, 1994.
4 (2) For existing residential buildings, by January 1,
5 1995.
6 (3) For new public buildings, by January 1, 1994.
7 (4) For existing public buildings, by July 1, 1994.
8 (5) For new commercial buildings, by January 1, 1995.
9 (6) For existing commercial buildings, by January 1,
10 1996.
11 Section 39. Section 553.996, Florida Statutes, is
12 amended to read:
13 553.996 Energy-efficiency rating disclosure;
14 information brochure.--
15 (1)(a) In accordance with the schedules in s. 553.994,
16 the prospective purchaser of real property with a building for
17 occupancy located thereon shall be provided written
18 notification that the purchaser may have the building's
19 energy-efficiency rating determined. Such notice shall be
20 provided at the time of, or prior to, the purchaser's
21 execution of the contract for sale and purchase.
22 (b) The energy-efficiency rating of a residential or
23 commercial building shall be provided upon request of the
24 prospective purchaser, in writing, at the time of, or prior
25 to, the purchaser's execution of the contract for sale and
26 purchase.
27 (2) A prospective purchaser of real property with a
28 building for occupancy located thereon Concurrent with the
29 provisions of subsection (1), the prospective purchaser shall
30 be provided with a copy of an information brochure, at the
31 time of or prior to the purchaser's execution of the contract
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1 for sale and purchase, notifying the purchaser of the option
2 for an energy-efficiency rating on the building. Such brochure
3 shall be prepared, made available for distribution, and
4 provided at no cost by the department. Such brochure shall
5 contain information relevant to that class of building,
6 including, but not limited to:
7 (1)(a) How to analyze the building's energy-efficiency
8 rating.
9 (2)(b) Comparisons to statewide averages for new and
10 existing construction of that class.
11 (3)(c) Information concerning methods to improve the
12 building's energy-efficiency rating.
13 (4)(d) A notice to residential purchasers that the
14 energy-efficiency rating may qualify the purchaser for an
15 energy-efficient mortgage from lending institutions.
16 Section 40. This act shall take effect July 1 of the
17 year in which enacted.
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1 *****************************************
2 LEGISLATIVE SUMMARY
3
Amends and creates various provisions of law relating to
4 real estate transactions. Provides registration and
licensing requirements for additional business entities
5 and eliminates a conflicting provision relating to
automatic cancellation of the registration of a real
6 estate broker partnership. Provides additional
requirements for licensure as a real estate broker.
7 Revises the period after which involuntarily inactive
licenses expire, and revises the time for the required
8 notice to the licensee. Increases the administrative fine
and revises a ground for disciplinary action to exempt
9 licensees from the reporting of certain violators.
Provides that violations of certain standards of the
10 Appraisal Foundation are grounds for the Florida Real
Estate Commission to deny, revoke, or suspend the license
11 of, or to fine, real estate brokers or salespersons.
Deletes a provision that restricts a real estate licensee
12 to operating as a single agent or as a transaction
broker. Revises provisions relating to disclosure of
13 authorized brokerage relationships and the corresponding
duties of real estate licensees. Revises provisions
14 relating to the permitting of instructors for proprietary
real estate schools or state institutions, provides
15 permit renewal requirements, and revises references
relating to examinations. Provides requirements
16 applicable to advance expenses, commissions, or fees for
brokers auctioning real property. Provides applicability
17 with respect to a conflict with federal law in the
disciplining of certain licensees against whom a judgment
18 has been paid from the Real Estate Recovery Fund. Grants
the department authority to inspect and audit brokers and
19 brokerage offices.
20
Redesignates registered appraisers as registered
21 assistant appraisers. Provides for a seal for the Florida
Real Estate Appraisal Board to authenticate its
22 proceedings, records, and acts. Provides a separate
section relating to establishment of fees applicable to
23 the regulation of real estate appraisers. Revises
provisions relating to qualifications for registration,
24 licensure, or certification of appraisers. Provides for a
charge for application for a change in status of
25 appraisal licensure. Revises continuing education and
experience requirements for real estate appraisers.
26 Revises a ground for disciplinary action to exempt
licensees from the reporting of certain violators. Grants
27 the department authority to inspect appraisers and
appraisal offices.
28
29 Limits the purpose of the "Florida Building
Energy-Efficiency Rating Act" to providing for a
30 statewide uniform system for rating the energy efficiency
of buildings. Deletes the schedule for phasing-in the
31 rating system. Requires provision of an information
brochure to prospective purchasers of certain real
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1 property. Deletes a provision authorizing such
prospective purchasers to receive a rating on the
2 property upon request.
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