Senate Bill sb1266

CODING: Words stricken are deletions; words underlined are additions.
    Florida Senate - 2003                                  SB 1266

    By Senator Posey





    24-466A-03

  1                      A bill to be entitled

  2         An act relating to regulation of real estate

  3         professionals; amending s. 475.001, F.S.;

  4         redesignating "salespersons" as "broker

  5         associates"; amending s. 475.01, F.S.; defining

  6         and redefining terms; amending s. 475.011,

  7         F.S.; revising exemptions from regulation

  8         requirements; amending s. 475.02, F.S.;

  9         conforming terminology; amending s. 475.03,

10         F.S.; deleting authority of the Attorney

11         General with respect to retention of legal

12         counsel by the Florida Real Estate Commission;

13         amending s. 475.04, F.S.; conforming

14         terminology; providing powers of independent

15         certification organizations; amending s.

16         475.15, F.S.; revising requirements related to

17         registration and licensing of partnerships;

18         amending s. 475.17, F.S.; conforming

19         terminology; requiring that distance learning

20         courses be interactive; authorizing additional

21         subjects for postlicensure education; amending

22         s. 475.175, F.S.; revising requirements for

23         license examination applications; amending s.

24         475.181, F.S.; conforming terminology; amending

25         s. 475.182, F.S.; providing guidelines for

26         approving specialty courses; providing for

27         duration of initial licenses; amending s.

28         475.215, F.S.; conforming terminology; amending

29         s. 475.22, F.S.; revising requirements with

30         respect to brokers' signs; amending s. 475.23,

31         F.S.; providing for notice of change of

                                  1

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






    Florida Senate - 2003                                  SB 1266
    24-466A-03




  1         address; amending s. 475.25, F.S.; revising

  2         duties of licensees with respect to escrowed

  3         property; providing guidelines for real estate

  4         transactions in cooperation between licensed

  5         professionals and professionals licensed

  6         out-of-state; allowing a broker to place

  7         personal funds in his or her escrow account;

  8         providing a time limit on filing complaints

  9         against a licensee; providing for referral of

10         criminal violations to prosecuting authorities;

11         amending s. 475.2755, F.S.; conforming

12         terminology; amending s. 475.278, F.S.;

13         revising provisions relating to authorized

14         brokerage relationships; providing a

15         presumption of transaction brokerage; revising

16         disclosure requirements; amending s. 475.31,

17         F.S.; providing effect of revocation on

18         suspension of broker's license; amending s.

19         475.37, F.S.; conforming terminology; creating

20         s. 475.4005, F.S.; providing penalties for

21         unlicensed practice of real estate; providing

22         for cease and desist orders; authorizing rules;

23         amending s. 475.41, F.S.; conforming

24         terminology; amending s. 475.42, F.S.;

25         providing an additional ground for disciplinary

26         action; providing penalties; amending s.

27         475.43, F.S.; conforming terminology; amending

28         s. 475.451, F.S.; revising prerequisites for

29         renewal of an instructor permit; revising

30         period for which instructor permits may be

31         issued; repealing the prohibition against real

                                  2

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






    Florida Senate - 2003                                  SB 1266
    24-466A-03




  1         estate schools advertising a guarantee that

  2         their pupils will pass licensure examinations;

  3         amending s. 475.4511, F.S.; repealing

  4         prohibitions against certain advertising;

  5         amending ss. 475.453, 475.455, F.S.; conforming

  6         terminology; amending s. 475.482, F.S.;

  7         increasing the maximum amount that may be in

  8         the Real Estate Recovery Fund; amending s.

  9         475.483, F.S.; revising guidelines for payment

10         of attorney's fees with respect to recovery

11         from the fund; amending ss. 475.484, 475.5017,

12         F.S.; increasing maximum amounts payable from

13         the fund; amending s. 475.612, F.S.; conforming

14         terminology; amending s. 689.25, F.S.;

15         prescribing facts and conditions the existence

16         of which need not be disclosed in a real estate

17         transaction; repealing ss. 475.421, F.S.,

18         relating to publication of false or misleading

19         information, 475.422, F.S., relating to

20         disclosure, 475.452, F.S., relating to advance

21         fees; providing an effective date.

22

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

24

25         Section 1.  Section 475.001, Florida Statutes, is

26  amended to read:

27         475.001  Purpose.--The Legislature deems it necessary

28  in the interest of the public welfare to regulate real estate

29  brokers, broker associates salespersons, and schools in this

30  state.

31

                                  3

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






    Florida Senate - 2003                                  SB 1266
    24-466A-03




  1         Section 2.  Section 475.01, Florida Statutes, is

  2  amended to read:

  3         475.01  Definitions.--

  4         (1)  As used in this part:

  5         (a)  "Broker" means a person who, for another, and for

  6  a compensation or valuable consideration directly or

  7  indirectly paid or promised, expressly or impliedly, or with

  8  an intent to collect or receive a compensation or valuable

  9  consideration therefor, appraises, auctions, sells, exchanges,

10  buys, rents, or offers, attempts or agrees to appraise,

11  auction, or negotiate the sale, exchange, purchase, or rental

12  of business enterprises or business opportunities or any real

13  property or any interest in or concerning the same, including

14  mineral rights or leases, or who advertises or holds out to

15  the public by any oral or printed solicitation or

16  representation that she or he is engaged in the business of

17  appraising, auctioning, buying, selling, exchanging, leasing,

18  or renting business enterprises or business opportunities or

19  real property of others or interests therein, including

20  mineral rights, or who takes any part in the procuring of

21  sellers, purchasers, lessors, or lessees of business

22  enterprises or business opportunities or the real property of

23  another, or leases, or interest therein, including mineral

24  rights, or who directs or assists in the procuring of

25  prospects or in the negotiation or closing of any transaction

26  which does, or is calculated to, result in a sale, exchange,

27  or leasing thereof, and who receives, expects, or is promised

28  any compensation or valuable consideration, directly or

29  indirectly therefor; and all persons who advertise rental

30  property information or lists.  A broker renders a

31  professional service and is a professional within the meaning

                                  4

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






    Florida Senate - 2003                                  SB 1266
    24-466A-03




  1  of s. 95.11(4)(a).  Where the term "appraise" or "appraising"

  2  appears in the definition of the term "broker," it

  3  specifically excludes those appraisal services which must be

  4  performed only by a state-licensed or state-certified

  5  appraiser, and those appraisal services which may be performed

  6  by a registered assistant appraiser as defined in part II. The

  7  term "broker" also includes any person who is a general

  8  partner, officer, or director of a partnership or corporation

  9  which acts as a broker. The term "broker" also includes any

10  person who is qualified to be issued a license as a broker but

11  who operates as a broker associate in the employ of another

12  and any person or entity who undertakes to list or sell one or

13  more timeshare periods per year in one or more timeshare plans

14  on behalf of any number of persons, except as provided in ss.

15  475.011 and 721.20.

16         (b)  "Broker associate" means a person who performs any

17  act specified in the definition of "broker" but who performs

18  such act under the employment of another person. A broker

19  associate renders a professional service and is a professional

20  within the meaning of s. 95.11(4)(a). This definition does not

21  limit a broker associate from registering as an officer or

22  director of a brokerage corporation or a general partner of a

23  brokerage partnership. A broker associate may also form or be

24  a member of a partnership, limited liability company, limited

25  liability partnership, or corporation with brokers and other

26  broker associates. "Broker-salesperson" means a person who is

27  qualified to be issued a license as a broker but who operates

28  as a salesperson in the employ of another.

29         (c)  "Commission" means the Florida Real Estate

30  Commission.

31

                                  5

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






    Florida Senate - 2003                                  SB 1266
    24-466A-03




  1         (d)  "Customer" means a member of the public who is or

  2  may be a buyer or seller of real property and may or may not

  3  be represented by a real estate licensee in an authorized

  4  brokerage relationship.

  5         (e)  "Department" means the Department of Business and

  6  Professional Regulation.

  7         (f)  "Fiduciary" means a broker in a relationship of

  8  trust and confidence between that broker as agent and the

  9  seller or buyer as principal. The duties of the broker as a

10  fiduciary are loyalty, confidentiality, obedience, full

11  disclosure, and accounting and the duty to use skill, care,

12  and diligence.

13         (g)  "Involuntarily inactive status" means the

14  licensure status that results when a license is not renewed at

15  the end of the license period prescribed by the department.

16         (h)  "Principal" means the party with whom a real

17  estate licensee has entered into a single agent relationship.

18         (i)  "Real property" or "real estate" means any

19  interest or estate in land and any interest in business

20  enterprises or business opportunities, including any

21  assignment, leasehold, subleasehold, or mineral right;

22  however, the term does not include any cemetery lot or right

23  of burial in any cemetery; nor does the term include the

24  renting of a mobile home lot or recreational vehicle lot in a

25  mobile home park or travel park.

26         (j)  "Salesperson" means a person who performs any act

27  specified in the definition of "broker," but who performs such

28  act under the direction, control, or management of another

29  person. A salesperson renders a professional service and is a

30  professional within the meaning of s. 95.11(4)(a).

31

                                  6

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






    Florida Senate - 2003                                  SB 1266
    24-466A-03




  1         (j)(k)  "Single agent" means a broker who represents,

  2  as a fiduciary, either the buyer or seller but not both in the

  3  same transaction.

  4         (k)(l)  "Transaction broker" means a broker who

  5  provides limited representation to a buyer, a seller, or both,

  6  in a real estate transaction, but does not represent either in

  7  a fiduciary capacity or as a single agent. In a transaction

  8  broker relationship, a buyer or seller is not responsible for

  9  the acts of a licensee. Additionally, the parties to a real

10  estate transaction are giving up their rights to the undivided

11  loyalty of a licensee. This aspect of limited representation

12  allows a licensee to facilitate a real estate transaction by

13  assisting both the buyer and the seller, but a licensee will

14  not work to represent one party to the detriment of the other

15  party when acting as a transaction broker to both parties.

16         (l)(m)  "Voluntarily inactive status" means the

17  licensure status that results when a licensee has applied to

18  the department to be placed on inactive status and has paid

19  the fee prescribed by rule.

20         (2)  The terms "employ," "employment," "employer," and

21  "employee," when used in this chapter and in rules adopted

22  pursuant thereto to describe the relationship between a broker

23  and a broker associate salesperson, include an independent

24  contractor relationship when such relationship is intended by

25  and established between a broker and a broker associate

26  salesperson. The existence of such relationship shall not

27  relieve either the broker or the broker associate salesperson

28  of her or his duties, obligations, or responsibilities under

29  this chapter.

30         (3)  Wherever the word "operate" or "operating" as a

31  broker, broker-salesperson, or broker associate salesperson

                                  7

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






    Florida Senate - 2003                                  SB 1266
    24-466A-03




  1  appears in this chapter; in any order, rule, or regulation of

  2  the commission; in any pleading, indictment, or information

  3  under this chapter; in any court action or proceeding; or in

  4  any order or judgment of a court, it shall be deemed to mean

  5  the commission of one or more acts described in this chapter

  6  as constituting or defining a broker, broker-salesperson, or

  7  broker associate salesperson, not including, however, any of

  8  the exceptions stated therein.  A single such act is

  9  sufficient to bring a person within the meaning of this

10  chapter, and each act, if prohibited herein, constitutes a

11  separate offense.

12         (4)  A broker acting as a trustee of a trust created

13  under chapter 689 is subject to the provisions of this chapter

14  unless the trustee is a bank, state or federal association, or

15  trust company possessing trust powers as defined in s.

16  658.12(23).

17         Section 3.  Section 475.011, Florida Statutes, is

18  amended to read:

19         475.011  Exemptions.--This part does not apply to:

20         (1)  Any person acting as an attorney in fact for the

21  purpose of the execution of contracts or conveyances only; as

22  an attorney at law within the scope of her or his duties as

23  such; as a certified public accountant, as defined in chapter

24  473, within the scope of her or his duties as such; as the

25  personal representative, receiver, trustee, or master under,

26  or by virtue of, an appointment by will or by order of a court

27  of competent jurisdiction; or as trustee under a deed of

28  trust, or under a trust agreement, the ultimate purpose and

29  intent whereof is charitable, is philanthropic, or provides

30  for those having a natural right to the bounty of the donor or

31  trustor;

                                  8

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






    Florida Senate - 2003                                  SB 1266
    24-466A-03




  1         (2)  Any individual, corporation, partnership, trust,

  2  joint venture, or other entity which sells, exchanges, or

  3  leases its own real property; however, this exemption shall

  4  not be available if and to the extent that an agent, employee,

  5  or independent contractor paid a commission or other

  6  compensation strictly on a transactional basis is employed to

  7  make sales, exchanges, or leases to or with customers in the

  8  ordinary course of an owner's business of selling, exchanging,

  9  or leasing real property to the public;

10         (3)  Any employee of a public utility, a rural electric

11  cooperative, a railroad, or a state or local governmental

12  agency who acts within the scope of her or his employment, for

13  which no compensation in addition to the employee's salary is

14  paid, to buy, sell, appraise, exchange, rent, auction, or

15  lease any real property or any interest in real property for

16  the use of her or his employer;

17         (4)  Any salaried employee of an owner, or of a

18  registered broker for an owner, of an apartment community who

19  works in an onsite rental office of the apartment community in

20  a leasing capacity, provided the salaried employee works

21  without any other compensation in addition to the salary;

22         (5)  Any person employed for a salary as a manager of a

23  condominium or cooperative apartment complex as a result of

24  any activities or duties which the person may have in relation

25  to the renting of individual units within such condominium or

26  cooperative apartment complex if rentals arranged by the

27  person are for periods no greater than 1 year, provided the

28  person works without any other compensation in addition to the

29  salary;

30         (6)  Any person, partnership, corporation, or other

31  legal entity which, for another and for compensation or other

                                  9

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






    Florida Senate - 2003                                  SB 1266
    24-466A-03




  1  valuable consideration, sells, offers to sell, advertises for

  2  sale, buys, offers to buy, or negotiates the sale or purchase

  3  of radio, television, or cable enterprises licensed and

  4  regulated by the Federal Communications Commission pursuant to

  5  the Communications Act of 1934.  However, if the sale or

  6  purchase of the radio, television, or cable enterprise

  7  involves the sale or lease of land, buildings, fixtures, and

  8  all other improvements to the land, a broker or broker

  9  associate salesperson licensed under this chapter shall be

10  retained for the portion of the transaction which includes the

11  land, buildings, fixtures, and all other improvements to the

12  land; or

13         (7)  Any full-time graduate student who is enrolled in

14  a commission-approved degree program in appraising at a

15  college or university in this state, if the student is acting

16  under the direct supervision of a licensed broker or a

17  licensed or certified appraiser and is engaged only in

18  appraisal activities related to the approved degree program.

19  Any appraisal report by the student must be issued in the name

20  of the supervising individual;.

21         (8)(a)  An owner of one or part of one or more

22  timeshare periods for the owner's own use and occupancy who

23  later offers one or more of such periods for resale;.

24         (b)  An exchange company, as that term is defined by s.

25  721.05(14), but only to the extent that the exchange company

26  is engaged in exchange program activities as described in and

27  is in compliance with s. 721.18;.

28         (9)  Any person registered, licensed, or certified by

29  the department under part II as an appraiser or assistant

30  appraiser performing appraisals in accordance with that part;.

31

                                  10

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






    Florida Senate - 2003                                  SB 1266
    24-466A-03




  1         (10)  Any person who appraises under the unit-rule

  2  method of valuation a railroad or railroad terminal company

  3  assessed for ad valorem tax purposes pursuant to s. 193.085;.

  4         (11)  Any person, partnership, corporation, or other

  5  legal entity which, for another and for compensation or other

  6  valuable consideration, rents or advertises for rent, for

  7  transient occupancy, any public lodging establishment licensed

  8  under chapter 509;.

  9         (12)  Any dealer registered under the Securities and

10  Exchange Act of 1934, as amended, or any federally insured

11  depository institution and any parent, subsidiary, or

12  affiliate thereof, in connection with the sale, exchange,

13  purchase, or rental of a business enterprise to or by a person

14  who is an accredited investor as defined by 15 U.S.C. s. 77b,

15  the Securities Act of 1933, or any regulation adopted

16  thereunder. This exemption applies whether stock or assets of

17  the business enterprise are purchased or sold. The exemption

18  does not apply to a sale, exchange, purchase, or rental of

19  land, buildings, fixtures or other improvements to the land

20  which is not made in connection with the sale, exchange,

21  purchase, or rental of a business enterprise. Any reference to

22  rental in this subsection includes a lease transaction; or.

23         (13)  Any property management firm or any owner of an

24  apartment complex for the act of paying a finder's fee or

25  referral fee to an unlicensed person who is a tenant in such

26  apartment complex provided the value of the fee does not

27  exceed $50 per transaction. Nothing in this subsection

28  authorizes an unlicensed person to advertise or otherwise

29  promote the person's services in procuring or assisting in

30  procuring prospective lessees or tenants of apartment units.

31  For purposes of this subsection, "finder's fee" or "referral

                                  11

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






    Florida Senate - 2003                                  SB 1266
    24-466A-03




  1  fee" means a fee paid, credit towards rent, or some other

  2  thing of value provided to a person for introducing or

  3  arranging an introduction between parties to a transaction

  4  involving the rental or lease of an apartment unit. It is a

  5  violation of s. 475.25(1)(h) and punishable under s. 475.42

  6  for a property management firm or any owner of an apartment

  7  complex to pay a finder's fee or a referral fee to an

  8  unlicensed person unless expressly authorized by this

  9  subsection.

10         Section 4.  Subsection (1) of section 475.02, Florida

11  Statutes, is amended to read:

12         475.02  Florida Real Estate Commission.--

13         (1)  There is created within the department the Florida

14  Real Estate Commission. The commission shall consist of seven

15  members who shall be appointed by the Governor, subject to

16  confirmation by the Senate. Four members must be licensed

17  brokers, each of whom has held an active license for the 5

18  years preceding appointment; one member must be a licensed

19  broker or a licensed broker associate salesperson who has held

20  an active license for the 2 years preceding appointment; and

21  two members must be persons who are not, and have never been,

22  brokers or broker associates salespersons. At least one member

23  of the commission must be 60 years of age or older. The

24  current members may complete their present terms unless

25  removed for cause.

26         Section 5.  Subsection (2) of section 475.03, Florida

27  Statutes, is amended to read:

28         475.03  Delegation of powers and duties; legal

29  services.--

30         (2)  Subject to the prior approval of the Attorney

31  General, The commission may retain independent legal counsel

                                  12

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






    Florida Senate - 2003                                  SB 1266
    24-466A-03




  1  to provide legal advice to the commission on a specific

  2  matter.

  3         Section 6.  Section 475.04, Florida Statutes, is

  4  amended to read:

  5         475.04  Duty of commission to educate members of

  6  profession.--

  7         (1)  The commission shall foster the education of

  8  brokers, broker associates broker-salespersons, salespersons,

  9  and instructors concerning the ethical, legal, and business

10  principles which should govern their conduct.

11         (2)  For the purpose of performing its duty under

12  subsection (1) to educate persons holding a license or permit,

13  the commission may conduct, offer, sponsor, prescribe, or

14  approve real estate educational courses for all persons

15  licensed or permitted by the department as brokers, broker

16  associates broker-salespersons, salespersons, or instructors;

17  and the cost and expense of such courses shall be paid as

18  provided in s. 475.125.

19         (3)  The commission may also publish and sell, at a

20  reasonable price intended to cover costs, a handbook on this

21  chapter and other publications intended to be textbooks or

22  guidelines for study and guidance of students, applicants,

23  licensees, certificateholders, and permitholders, and members

24  of the general public, copyright of which shall be the

25  property of the state.

26         (4)  The commission may authorize independent

27  certification organizations to certify or approve the delivery

28  mechanism of distance learning courses. Certification must

29  occur before the time a distance learning course is submitted

30  to the commission for content approval by an accredited

31

                                  13

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






    Florida Senate - 2003                                  SB 1266
    24-466A-03




  1  college, university, community college, area technical center,

  2  registered real estate school, or commission-approved sponsor.

  3         Section 7.  Section 475.15, Florida Statutes, is

  4  amended to read:

  5         475.15  Registration and licensing of general partners,

  6  members, officers, and directors of a firm.--Each partnership,

  7  limited liability partnership, limited liability company, or

  8  corporation which acts as a broker shall register with the

  9  commission and shall renew the licenses or registrations of

10  its members, officers, and directors for each license period.

11  However, if the partnership is a limited partnership, only the

12  general partners must be licensed brokers or brokerage

13  corporations registered pursuant to this part. If the license

14  or registration of at least one active broker member is not in

15  force, the registration of a corporation, limited liability

16  company, limited liability partnership, or partnership is

17  canceled automatically during that period of time.

18         Section 8.  Section 475.17, Florida Statutes, is

19  amended to read:

20         475.17  Qualifications for practice.--

21         (1)(a)  An applicant for licensure who is a natural

22  person must be at least 18 years of age; hold a high school

23  diploma or its equivalent; be honest, truthful, trustworthy,

24  and of good character; and have a good reputation for fair

25  dealing.  An applicant for an active broker's license or a

26  broker associate's salesperson's license must be competent and

27  qualified to make real estate transactions and conduct

28  negotiations therefor with safety to investors and to those

29  with whom the applicant may undertake a relationship of trust

30  and confidence. If the applicant has been denied registration

31  or a license or has been disbarred, or the applicant's

                                  14

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






    Florida Senate - 2003                                  SB 1266
    24-466A-03




  1  registration or license to practice or conduct any regulated

  2  profession, business, or vocation has been revoked or

  3  suspended, by this or any other state, any nation, or any

  4  possession or district of the United States, or any court or

  5  lawful agency thereof, because of any conduct or practices

  6  which would have warranted a like result under this chapter,

  7  or if the applicant has been guilty of conduct or practices in

  8  this state or elsewhere which would have been grounds for

  9  revoking or suspending her or his license under this chapter

10  had the applicant then been registered, the applicant shall be

11  deemed not to be qualified unless, because of lapse of time

12  and subsequent good conduct and reputation, or other reason

13  deemed sufficient, it appears to the commission that the

14  interest of the public and investors will not likely be

15  endangered by the granting of registration. The commission may

16  adopt rules requiring an applicant for licensure to provide

17  written information to the commission regarding the

18  applicant's good character.

19         (b)  An application may be disapproved if the applicant

20  has acted or attempted to act, or has held herself or himself

21  out as entitled to act, during the period of 1 year next prior

22  to the filing of the application, as a real estate broker or

23  broker associate salesperson in the state in violation of this

24  chapter. This paragraph may be deemed to bar any person from

25  licensure who has performed any of the acts or services

26  described in s. 475.01(3), unless exempt pursuant to s.

27  475.011, during a period of 1 year next preceding the filing

28  of the application, or during the pendency of the application,

29  and until a valid current license has been duly issued to the

30  person, regardless of whether the performance of the act or

31  service was done for compensation or valuable consideration.

                                  15

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






    Florida Senate - 2003                                  SB 1266
    24-466A-03




  1         (2)(a)1.  In addition to other requirements under this

  2  part, the commission may require the satisfactory completion

  3  of one or more of the educational courses or equivalent

  4  courses conducted, offered, sponsored, prescribed, or approved

  5  pursuant to s. 475.04, taken at an accredited college,

  6  university, or community college, at an area technical center,

  7  or at a registered real estate school, as a condition

  8  precedent for any person to become licensed or to renew her or

  9  his license as a broker, broker-salesperson, or broker

10  associate salesperson. The course or courses required for one

11  to become initially licensed shall not exceed a total of 63

12  classroom hours of 50 minutes each, inclusive of examination,

13  for a broker associate salesperson and 72 classroom hours of

14  50 minutes each, inclusive of examination, for a broker. The

15  satisfactory completion of an examination administered by the

16  accredited college, university, or community college, by the

17  area technical center, or by the registered real estate school

18  shall be the basis for determining satisfactory completion of

19  the course. However, notice of satisfactory completion shall

20  not be issued if the student has absences in excess of 8

21  classroom hours.

22         2.  A distance learning course or courses shall be

23  approved by the commission as an option to classroom hours as

24  satisfactory completion of the course or courses as required

25  by this section.  The schools authorized by this section have

26  the option of providing classroom courses, interactive

27  distance learning courses, or both.  However, satisfactory

28  completion of a distance learning course requires the

29  satisfactory completion of a timed distance learning course

30  examination.  Such examination shall not be required to be

31  monitored or given at a centralized location.

                                  16

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






    Florida Senate - 2003                                  SB 1266
    24-466A-03




  1         3.  Such required course or courses must be made

  2  available by correspondence or other suitable means to any

  3  person who, by reason of hardship, as defined by rule, cannot

  4  attend the place or places where the course or courses are

  5  regularly conducted or does not have access to the distance

  6  learning course or courses.

  7         (b)  A person may not be licensed as a real estate

  8  broker unless, in addition to the other requirements of law,

  9  the person has held:

10         1.  An active real estate broker associate's

11  salesperson's license for at least 12 months during the

12  preceding 5 years in the office of one or more real estate

13  brokers licensed in this state or any other state, territory,

14  or jurisdiction of the United States or in any foreign

15  national jurisdiction;

16         2.  A current and valid real estate broker associate's

17  salesperson's license for at least 12 months during the

18  preceding 5 years in the employ of a governmental agency for a

19  salary and performing the duties authorized in this part for

20  real estate licensees; or

21         3.  A current and valid real estate broker's license

22  for at least 12 months during the preceding 5 years in any

23  other state, territory, or jurisdiction of the United States

24  or in any foreign national jurisdiction.

25

26  This paragraph does not apply to a person employed as a real

27  estate investigator by the Division of Real Estate, provided

28  the person has been employed as a real estate investigator for

29  at least 24 months. The person must be currently employed as a

30  real estate investigator to sit for the real estate broker's

31

                                  17

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






    Florida Senate - 2003                                  SB 1266
    24-466A-03




  1  examination and have held a valid and current broker

  2  associate's salesperson's license for at least 12 months.

  3         (c)  A person who has been licensed as a real estate

  4  broker associate salesperson in Florida during the preceding 5

  5  years may not be licensed as a real estate broker unless, in

  6  addition to the other requirements of law, she or he has

  7  completed the broker associate salesperson postlicensure

  8  educational requirements, if these requirements have been

  9  prescribed by the commission pursuant to paragraph (3)(a).

10         (3)(a)  The commission may prescribe a postlicensure

11  education requirement in order for a person to maintain a

12  valid broker associate's salesperson's license, which shall

13  not exceed 45 classroom hours of 50 minutes each, inclusive of

14  examination, prior to the first renewal following initial

15  licensure.  If prescribed, this shall consist of one or more

16  commission-approved courses which total at least 45 classroom

17  hours on one or more subjects which include, but are not

18  limited to, property management, appraisal, real estate

19  finance, or the economics of real estate management,

20  marketing, technology, sales and listing of properties,

21  business office management, courses teaching practical real

22  estate application skills, development of business plans,

23  marketing of property, and time management. Required

24  postlicensure education courses must be provided by an

25  accredited college, university, or community college, by an

26  area technical center, by a registered real estate school, or

27  by a commission-approved sponsor.

28         (b)  Satisfactory completion of the postlicensure

29  education requirement is demonstrated by successfully meeting

30  all standards established for the commission-prescribed or

31  commission-approved institution or school. However, notice of

                                  18

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






    Florida Senate - 2003                                  SB 1266
    24-466A-03




  1  satisfactory completion shall not be issued if the student has

  2  absences in excess of 10 percent of the required classroom

  3  hours or has not satisfactorily completed a timed distance

  4  learning course examination.

  5         (c)  The license of any broker associate salesperson

  6  who does not complete the postlicensure education requirement

  7  prior to the first renewal following initial licensure shall

  8  be considered null and void. Such person wishing to again

  9  operate as a real estate broker associate salesperson must

10  requalify by satisfactorily completing the broker associate's

11  salesperson's prelicensure course and passing the state

12  examination for licensure as a broker associate salesperson.

13         (d)  A broker associate salesperson who is required to

14  complete any postlicensure education requirement must complete

15  any postlicensure education requirement and hold a current and

16  valid license in order to be eligible for licensure as a

17  broker.

18         (4)(a)  The commission may prescribe a postlicensure

19  education requirement in order for a person to maintain a

20  valid broker's license, which shall not exceed 60 classroom

21  hours of 50 minutes each, inclusive of examination, prior to

22  the first renewal following initial licensure.  If prescribed,

23  this shall consist of one or more commission-approved courses

24  which total at least 60 classroom hours on one or more

25  subjects which include, but are not limited to, advanced

26  appraisal, advanced property management, real estate

27  marketing, business law, advanced real estate investment

28  analyses, advanced legal aspects, general accounting, real

29  estate economics, syndications, commercial brokerage,

30  feasibility analyses, advanced real estate finance,

31  residential brokerage, advanced marketing, technology,

                                  19

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






    Florida Senate - 2003                                  SB 1266
    24-466A-03




  1  advanced business planning, time management, or real estate

  2  brokerage office operations. Required postlicensure education

  3  courses must be provided by an accredited college, university,

  4  or community college, by an area technical center, by a

  5  registered real estate school, or by a commission-approved

  6  sponsor.

  7         (b)  Satisfactory completion of the postlicensure

  8  education requirement is demonstrated by successfully meeting

  9  all standards established for the commission-prescribed or

10  commission-approved institution or school. However, notice of

11  satisfactory completion shall not be issued if the student has

12  absences in excess of 10 percent of the required classroom

13  hours or has not satisfactorily completed a timed distance

14  learning course examination.

15         (c)  The license of any broker who does not complete

16  the postlicensure education requirement prior to the first

17  renewal following initial licensure shall be considered null

18  and void.  If the licensee wishes to operate as a broker

19  associate salesperson, she or he may be issued a broker

20  associate's salesperson's license after providing proof that

21  she or he has satisfactorily completed the 14-hour continuing

22  education course within the 6 months following expiration of

23  her or his broker's license. To operate as a broker, the

24  licensee must requalify by satisfactorily completing the

25  broker's prelicensure course and passing the state examination

26  for licensure as a broker.

27         (5)(a)  The commission may allow an additional 6-month

28  period after the first renewal following initial licensure for

29  completing the postlicensure education courses for broker

30  associates salespersons and brokers who cannot, due to

31

                                  20

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






    Florida Senate - 2003                                  SB 1266
    24-466A-03




  1  individual physical hardship, as defined by rule, complete the

  2  courses within the required time.

  3         (b)  Except as provided in subsection (4), broker

  4  associates salespersons and brokers are not required to meet

  5  the 14-hour continuing education requirement prior to the

  6  first renewal following initial licensure.

  7         (c)1.  A distance learning course or courses shall be

  8  approved by the commission as an option to classroom hours as

  9  satisfactory completion of the postlicensure education course

10  or courses as required by this section. The schools or

11  sponsors authorized by this section have the option of

12  providing classroom courses, interactive distance learning

13  courses, or both.  However, satisfactory completion of a

14  distance learning postlicensure education course or courses

15  requires the satisfactory completion of a timed distance

16  learning course examination.  Such examination shall not be

17  required to be monitored or given at a centralized location.

18         2.  The commission shall provide for postlicensure

19  education courses to be made available by correspondence or

20  other suitable means to any person who, by reason of hardship,

21  as defined by rule, cannot attend the place or places where

22  courses are regularly conducted or does not have access to the

23  distance learning courses.

24         (6)  The postlicensure education requirements of this

25  section, and the education course requirements for one to

26  become initially licensed, do not apply to any applicant or

27  licensee who has received a 4-year degree in real estate from

28  an accredited institution of higher education.

29         Section 9.  Section 475.175, Florida Statutes, is

30  amended to read:

31         475.175  Examinations.--

                                  21

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






    Florida Senate - 2003                                  SB 1266
    24-466A-03




  1         (1)  A person shall be entitled to take the license

  2  examination to practice in this state if the person:

  3         (a)  Submits to the department the appropriate

  4  notarized or electronically authenticated application and fee,

  5  two photographs of herself or himself taken within the

  6  preceding year, and a fingerprint card. The fingerprint card

  7  shall be forwarded to the Division of Criminal Justice

  8  Information Systems within the Department of Law Enforcement

  9  for purposes of processing the fingerprint card to determine

10  if the applicant has a criminal history record. The

11  fingerprint card shall also be forwarded to the Federal Bureau

12  of Investigation for purposes of processing the fingerprint

13  card to determine if the applicant has a criminal history

14  record. The information obtained by the processing of the

15  fingerprint card by the Florida Department of Law Enforcement

16  and the Federal Bureau of Investigation shall be sent to the

17  department for the purpose of determining if the applicant is

18  statutorily qualified for examination.

19         (b)  Submits at the time of examination the certificate

20  specified in subsection (2), the examination admissions

21  authorization letter card issued by the commission, and proof

22  of identification.

23         (2)  Each accredited college, university, community

24  college, or registered real estate school shall notify the

25  commission of the names of all persons who have satisfactorily

26  completed the educational requirements provided for in s.

27  475.17(2) and (3) in a manner prescribed by the commission.

28  Furthermore, each such educational institution shall provide

29  to each person satisfactorily completing the educational

30  requirements provided for in s. 475.17(2) and (3) a

31  certificate as proof of such satisfactory completion.

                                  22

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






    Florida Senate - 2003                                  SB 1266
    24-466A-03




  1         Section 10.  Subsection (1) of section 475.181, Florida

  2  Statutes, is amended to read:

  3         475.181  Licensure.--

  4         (1)  The department shall license any applicant whom

  5  the commission certifies, pursuant to subsection (2), to be

  6  qualified to practice as a broker or broker associate

  7  salesperson.

  8         Section 11.  Section 475.182, Florida Statutes, is

  9  amended to read:

10         475.182  Renewal of license; continuing education.--

11         (1)  The department shall renew a license upon receipt

12  of the renewal application and fee. The renewal application

13  for an active license as broker, broker-salesperson, or broker

14  associate salesperson shall include proof satisfactory to the

15  commission that the licensee has, since the issuance or

16  renewal of her or his current license, satisfactorily

17  completed at least 14 classroom hours of 50 minutes each of a

18  continuing education course during each biennium of a license

19  period, as prescribed by the commission. Approval or denial of

20  a specialty course must be based on the extent to which the

21  course content focuses on real estate issues relevant to the

22  modern practice of real estate by a real estate licensee,

23  including technology used in the real estate industry. The

24  commission may accept as a substitute for such continuing

25  education course, on a classroom-hour-for-classroom-hour

26  basis, any satisfactorily completed education course that the

27  commission finds is adequate to educate licensees within the

28  intent of this section, including an approved distance

29  learning course. However, the commission may not require, for

30  the purpose of satisfactorily completing an approved

31  correspondence or distance learning course, a written

                                  23

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






    Florida Senate - 2003                                  SB 1266
    24-466A-03




  1  examination that is to be taken at a centralized location and

  2  is to be monitored.

  3         (2)  The initial license of a broker or broker

  4  associate shall be issued for a period of not less than 18

  5  months or longer than 24 months from its effective date, and

  6  it shall expire no later than 24 months after its effective

  7  date.

  8         (3)(2)  The department shall adopt rules establishing a

  9  procedure for the renewal of licenses at least every 4 years.

10         (4)(3)  Any license that which is not renewed at the

11  end of the license period prescribed by the department shall

12  automatically revert to involuntarily inactive status.  Such

13  license may subsequently be renewed only if the licensee meets

14  the other qualifications specified in s. 475.183.

15         (5)(4)  Sixty days before prior to the end of the

16  license period and automatic reversion of a license to

17  inactive status, the department shall mail a notice of renewal

18  and possible reversion to the last known address of the

19  licensee.

20         Section 12.  Section 475.215, Florida Statutes, is

21  amended to read:

22         475.215  Multiple licenses.--

23         (1)  A licensed broker may be issued upon request

24  additional licenses as a broker, but not as a broker associate

25  salesperson or as a broker-salesperson, whenever it is clearly

26  shown that the requested additional licenses are necessary to

27  the conduct of real estate brokerage business and that the

28  additional licenses will not be used in a manner likely to be

29  prejudicial to any person, including a licensee under this

30  chapter.

31

                                  24

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






    Florida Senate - 2003                                  SB 1266
    24-466A-03




  1         (2)  A broker associate may salesperson or

  2  broker-salesperson shall have no more than one registered

  3  employer at any one time.

  4         Section 13.  Subsection (1) of section 475.22, Florida

  5  Statutes, is amended to read:

  6         475.22  Broker to maintain office and sign at entrance

  7  of office; registered office outside state; broker required to

  8  cooperate in investigation.--

  9         (1)  Each active broker shall maintain an office, which

10  shall consist of at least one enclosed room in a building of

11  stationary construction. Each active broker shall maintain a

12  sign on or about the entrance of her or his principal office

13  and each branch office, which sign may be easily observed and

14  read by any person about to enter such office and shall be of

15  such form and minimum dimensions as shall be prescribed by the

16  commission. Each sign must contain the name of the broker,

17  together with the trade name, if any. For a partnership or

18  corporation, the sign must contain the name of the firm or

19  corporation or trade name of the firm or corporation, together

20  with the name of at least one of the brokers. At a minimum,

21  the words "licensed real estate broker" or "lic. real estate

22  broker" must appear on the office entrance signs.

23         Section 14.  Section 475.23, Florida Statutes, is

24  amended to read:

25         475.23  License to expire on change of address.--A

26  license shall cease to be in force whenever a broker changes

27  her or his business address, a real estate school operating

28  under a permit issued pursuant to s. 475.451 changes its

29  business address, or a broker associate salesperson working

30  for a broker or an instructor working for a real estate school

31  changes employer.  The licensee shall notify the commission of

                                  25

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






    Florida Senate - 2003                                  SB 1266
    24-466A-03




  1  the change no later than 10 days after the change, on a form

  2  provided by the commission. When a broker or a real estate

  3  school changes business address, the brokerage firm or school

  4  permitholder must file a notice of the change of address with

  5  the commission, and such notice also fulfills the

  6  change-of-address notification for brokers and broker

  7  associates employed by the brokerage and instructors employed

  8  by the school.

  9         Section 15.  Subsection (1) of section 475.25, Florida

10  Statutes, is amended, and subsections (5), (6), and (7) are

11  added to that section, to read:

12         475.25  Discipline.--

13         (1)  The commission may deny an application for

14  licensure, registration, or permit, or renewal thereof; may

15  place a licensee, registrant, or permittee on probation; may

16  suspend a license, registration, or permit for a period not

17  exceeding 10 years; may revoke a license, registration, or

18  permit; may impose an administrative fine not to exceed $1,000

19  for each count or separate offense; and may issue a reprimand,

20  and any or all of the foregoing, if it finds that the

21  licensee, registrant, permittee, or applicant:

22         (a)  Has violated any provision of s. 455.227(1) or s.

23  475.42. However, licensees under this part are exempt from the

24  provisions of s. 455.227(1)(i).

25         (b)  Has been guilty of fraud, misrepresentation,

26  concealment, false promises, false pretenses, dishonest

27  dealing by trick, scheme, or device, culpable negligence, or

28  breach of trust in any business transaction in this state or

29  any other state, nation, or territory; has violated a duty

30  imposed upon her or him by law or by the terms of a listing

31  contract, written, oral, express, or implied, in a real estate

                                  26

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






    Florida Senate - 2003                                  SB 1266
    24-466A-03




  1  transaction; has aided, assisted, or conspired with any other

  2  person engaged in any such misconduct and in furtherance

  3  thereof; or has formed an intent, design, or scheme to engage

  4  in any such misconduct and committed an overt act in

  5  furtherance of such intent, design, or scheme.  It is

  6  immaterial to the guilt of the licensee that the victim or

  7  intended victim of the misconduct has sustained no damage or

  8  loss; that the damage or loss has been settled and paid after

  9  discovery of the misconduct; or that such victim or intended

10  victim was a customer or a person in confidential relation

11  with the licensee or was an identified member of the general

12  public.

13         (c)  Has advertised property or services in a manner

14  which is fraudulent, false, deceptive, or misleading in form

15  or content. The commission may adopt rules defining methods of

16  advertising that violate this paragraph.

17         (d)1.  Has failed to account or deliver to any person,

18  including a licensee under this chapter, at the time which has

19  been agreed upon or is required by law or, in the absence of a

20  fixed time, upon demand of the person entitled to such

21  accounting and delivery, any personal property such as money,

22  fund, deposit, check, draft, abstract of title, mortgage,

23  conveyance, lease, or other document or thing of value,

24  including a share of a real estate commission if a civil

25  judgment relating to the practice of the licensee's profession

26  has been obtained against the licensee and said judgment has

27  not been satisfied in accordance with the terms of the

28  judgment within a reasonable time, or any secret or illegal

29  profit, or any divisible share or portion thereof, which has

30  come into the licensee's hands and which is not the licensee's

31  property or which the licensee is not in law or equity

                                  27

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






    Florida Senate - 2003                                  SB 1266
    24-466A-03




  1  entitled to retain under the circumstances. However, if the

  2  licensee, in good faith, entertains doubt as to what person is

  3  entitled to the accounting and delivery of the escrowed

  4  property, or if conflicting demands have been made upon the

  5  licensee for the escrowed property, which property she or he

  6  still maintains in her or his escrow or trust account, the

  7  licensee shall either promptly notify the commission of such

  8  doubts or conflicting demands and shall promptly:

  9         a.  Request that the commission issue an escrow

10  disbursement order determining who is entitled to the escrowed

11  property;

12         b.  With the consent of all parties, submit the matter

13  to arbitration;

14         c.  By interpleader or otherwise, seek adjudication of

15  the matter by a court; or

16         d.  With the written consent of all parties, submit the

17  matter to mediation.  The department may conduct mediation or

18  may contract with public or private entities for mediation

19  services. However, the mediation process must be successfully

20  completed within 90 days following the last demand or the

21  licensee shall promptly employ one of the other escape

22  procedures contained in this section. Payment for mediation

23  will be as agreed to in writing by the parties. The department

24  may adopt rules to implement this section.

25

26  In the alternative, a licensee may promptly disburse property

27  from the licensee's escrow account without notifying the

28  commission or employing one of the procedures listed in

29  sub-subparagraphs a.-d., and an administrative complaint may

30  not be filed against a licensee solely because the licensee

31  did so. However, a licensee may be civilly liable for

                                  28

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






    Florida Senate - 2003                                  SB 1266
    24-466A-03




  1  improperly disbursing escrowed property. If the licensee

  2  promptly employs one of the escape procedures contained

  3  herein, and if she or he abides by the order or judgment

  4  resulting therefrom, no administrative complaint may be filed

  5  against the licensee for failure to account for, deliver, or

  6  maintain the escrowed property. If the buyer of a residential

  7  condominium unit delivers to a licensee written notice of the

  8  buyer's intent to cancel the contract for sale and purchase,

  9  as authorized by s. 718.503, or if the buyer of real property

10  in good faith fails to satisfy the terms in the financing

11  clause of a contract for sale and purchase, the licensee may

12  return the escrowed property to the purchaser without

13  notifying the commission or initiating any of the procedures

14  listed in sub-subparagraphs a.-d.

15         2.  Has failed to deposit money in an escrow account

16  when the licensee is the purchaser of real estate under a

17  contract where the contract requires the purchaser to place

18  deposit money in an escrow account to be applied to the

19  purchase price if the sale is consummated.

20         (e)  Has violated any of the provisions of this chapter

21  or any lawful order or rule made or issued under the

22  provisions of this chapter or chapter 455.

23         (f)  Has been convicted or found guilty of, or entered

24  a plea of nolo contendere to, regardless of adjudication, a

25  crime in any jurisdiction which directly relates to the

26  activities of a licensed broker or broker associate

27  salesperson, or involves moral turpitude or fraudulent or

28  dishonest dealing. The record of a conviction certified or

29  authenticated in such form as to be admissible in evidence

30  under the laws of the state shall be admissible as prima facie

31  evidence of such guilt.

                                  29

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






    Florida Senate - 2003                                  SB 1266
    24-466A-03




  1         (g)  Has had a broker's or broker associate's

  2  salesperson's license revoked, suspended, or otherwise acted

  3  against, or has had an application for such licensure denied,

  4  by the real estate licensing agency of another state,

  5  territory, or country.

  6         (h)  Has shared a commission with, or paid a fee or

  7  other compensation to, a person not properly licensed as a

  8  broker, broker-salesperson, or broker associate salesperson

  9  under the laws of this state, for the referral of real estate

10  business, clients, prospects, or customers, or for any one or

11  more of the services set forth in s. 475.01(1)(a). For the

12  purposes of this section, it is immaterial that the person to

13  whom such payment or compensation is given made the referral

14  or performed the service from within this state or elsewhere;

15  however, a licensed broker of this state may pay a referral

16  fee or share a real estate brokerage commission with a broker

17  licensed or registered under the laws of a foreign state so

18  long as the foreign broker does not violate any law of this

19  state. However, when a broker has compensated a broker

20  associate or a legal entity formed and controlled by a broker

21  associate, that broker associate may compensate persons

22  associated with the broker associate or legal entity. Nothing

23  in this paragraph or s. 475.71 is intended to prevent a real

24  estate broker licensed in this state from sharing a commission

25  on a cooperative real estate transaction, other than a

26  residential sale as defined in s. 475.278(5)(a), with a person

27  who holds an active real estate license in another state or

28  country, provided that:

29         1.  Before the out-of-state real estate licensee

30  performs any act in this state which constitutes professional

31  real estate activity, the licensee and the cooperating real

                                  30

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






    Florida Senate - 2003                                  SB 1266
    24-466A-03




  1  estate broker licensed in this state shall enter a written

  2  agreement that states the terms of cooperation and

  3  compensation, that the services set forth in s. 475.01(1)(a),

  4  if conducted in this state, will be under the supervision and

  5  control of the cooperating broker licensed in this state, that

  6  the out-of-state licensee will comply with all applicable laws

  7  of this state, and that civil actions may be commenced against

  8  the out-of-state real estate licensee, the cooperating real

  9  estate broker licensed in this state, or both in any court of

10  competent jurisdiction in any county of this state in which a

11  claim arises;

12         2.  The cooperating real estate broker licensed in this

13  state or a Florida-licensed real estate broker engaged by the

14  cooperating broker accompanies the out-of-state real estate

15  licensee and the potential buyer or potential lessee during

16  any initial property showing; and

17         3.  All subsequent property showings and all

18  negotiations regarding the cooperative real estate transaction

19  are conducted under the supervision, control, and express

20  permission of the cooperating real estate broker licensed in

21  this state or a Florida-licensed real estate broker engaged by

22  the cooperating broker.

23         (i)  Has become temporarily incapacitated from acting

24  as a broker or broker associate salesperson with safety to

25  investors or those in a fiduciary relation with her or him

26  because of drunkenness, use of drugs, or temporary mental

27  derangement; but suspension of a license in such a case shall

28  be only for the period of such incapacity.

29         (j)  Has rendered an opinion that the title to any

30  property sold is good or merchantable, except when correctly

31  based upon a current opinion of a licensed attorney at law, or

                                  31

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






    Florida Senate - 2003                                  SB 1266
    24-466A-03




  1  has failed to advise a prospective purchaser to consult her or

  2  his attorney on the merchantability of the title or to obtain

  3  title insurance.

  4         (k)  Has failed, if a broker, to immediately place,

  5  upon receipt, any money, fund, deposit, check, or draft

  6  entrusted to her or him by any person dealing with her or him

  7  as a broker in an escrow account with a title company, banking

  8  institution, credit union, or savings and loan association

  9  located and doing business in this state in a manner

10  consistent with the broker's fiduciary obligations and

11  requirements of timely disbursement, or to deposit such funds

12  in a trust or escrow account maintained by her or him with

13  some bank, credit union, or savings and loan association

14  located and doing business in this state, wherein the funds

15  shall be kept and, with the written consent of the parties to

16  a transaction, invested in a manner not inconsistent with s.

17  18.10(2) until disbursement thereof is properly authorized; or

18  has failed, if a broker associate salesperson, to immediately

19  place with her or his registered employer any money, fund,

20  deposit, check, or draft entrusted to her or him by any person

21  dealing with her or him as agent of the registered employer.

22  The commission shall establish rules to provide for records to

23  be maintained by the broker and the manner in which such

24  deposits shall be made. A broker may place and maintain up to

25  $5,000 of personal or brokerage funds in the broker's escrow

26  account and shall be provided a reasonable amount of time to

27  correct escrow errors if there is no shortage of funds and

28  such errors pose no significant threat to economically harm

29  the public. It is the intent of the Legislature that, in the

30  event of legal proceedings concerning a broker's escrow

31  account, the disbursement of escrowed funds not be delayed due

                                  32

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






    Florida Senate - 2003                                  SB 1266
    24-466A-03




  1  to any dispute over the personal or brokerage funds that may

  2  be present in the escrow account.

  3         (l)  Has made or filed a report or record which the

  4  licensee knows to be false, has willfully failed to file a

  5  report or record required by state or federal law, has

  6  willfully impeded or obstructed such filing, or has induced

  7  another person to impede or obstruct such filing; but such

  8  reports or records shall include only those which are signed

  9  in the capacity of a licensed broker or broker associate

10  salesperson.

11         (m)  Has obtained a license by means of fraud,

12  misrepresentation, or concealment.

13         (n)  Is confined in any county jail, postadjudication;

14  is confined in any state or federal prison or mental

15  institution; is under home confinement ordered in lieu of

16  institutional confinement; or, through mental disease or

17  deterioration, can no longer safely be entrusted to

18  competently deal with the public.

19         (o)  Has been found guilty, for a second time, of any

20  misconduct that warrants her or his suspension or has been

21  found guilty of a course of conduct or practices which show

22  that she or he is so incompetent, negligent, dishonest, or

23  untruthful that the money, property, transactions, and rights

24  of investors, or those with whom she or he may sustain a

25  confidential relation, may not safely be entrusted to her or

26  him.

27         (p)  Has failed to inform the commission in writing

28  within 30 days after pleading guilty or nolo contendere to, or

29  being convicted or found guilty of, any felony.

30         (q)  Has violated any provision of s. 475.2755 or s.

31  475.278, including the duties owed under those sections.

                                  33

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






    Florida Senate - 2003                                  SB 1266
    24-466A-03




  1         (r)  Has failed in any written listing agreement to

  2  include a definite expiration date, description of the

  3  property, price and terms, fee or commission, and a proper

  4  signature of the principal(s); and has failed to give the

  5  principal(s) a legible, signed, true and correct copy of the

  6  listing agreement within 24 hours of obtaining the written

  7  listing agreement.  The written listing agreement shall

  8  contain no provision requiring the person signing the listing

  9  to notify the broker of the intention to cancel the listing

10  after such definite expiration date.

11         (s)  Has had a registration suspended, revoked, or

12  otherwise acted against in any jurisdiction. The record of the

13  disciplinary action certified or authenticated in such form as

14  to be admissible in evidence under the laws of the state shall

15  be admissible as prima facie evidence of such disciplinary

16  action.

17         (t)  Has violated any standard for the development or

18  communication of a real estate appraisal or other provision of

19  the Uniform Standards of Professional Appraisal Practice, as

20  defined in s. 475.611, as approved and adopted by the

21  Appraisal Standards Board of the Appraisal Foundation, as

22  defined in s. 475.611. This paragraph does not apply to a real

23  estate broker or broker associate salesperson who, in the

24  ordinary course of business, performs a comparative market

25  analysis, gives a broker price opinion, or gives an opinion of

26  value of real estate. However, in no event may this

27  comparative market analysis, broker price opinion, or opinion

28  of value of real estate be referred to as an appraisal, as

29  defined in s. 475.611.

30         (5)  An administrative complaint against a broker or

31  broker associate must be filed within 4 years after the time

                                  34

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






    Florida Senate - 2003                                  SB 1266
    24-466A-03




  1  of the act giving rise to the complaint or within 2 years

  2  after the time the act is discovered or should have been

  3  discovered with the exercise of due diligence. In no event may

  4  a complaint be filed more than 6 years after the date of the

  5  act giving rise to the complaint.

  6         (6)  The commission shall promptly notify the

  7  licensee's employer, in writing, any time the commission

  8  places a licensee on probation, reprimands a licensee,

  9  suspends or revokes the license of a licensee, imposes an

10  administrative fine against a licensee, or takes any other

11  final disciplinary action against a licensee.

12         (7)  The commission shall promptly report to the proper

13  prosecuting authority for prosecution any criminal violation

14  of any statute relating to the practice of a real estate

15  profession regulated by the commission.

16         Section 16.  Section 475.2755, Florida Statutes, is

17  amended to read:

18         475.2755  Designated broker associate salesperson.--

19         (1)  For purposes of this part, in any real estate

20  transaction other than a residential sale as defined in s.

21  475.278(5)(a), and where the buyer and seller have assets of

22  $1 million or more, the broker at the request of the customers

23  may designate broker associates salespersons to act as single

24  agents for different customers in the same transaction. Such

25  designated broker associates salespersons shall have the

26  duties of a single agent as outlined in s. 475.278(3),

27  including disclosure requirements in s. 475.278(3)(b) and (c).

28  In addition to disclosure requirements in s. 475.278(3)(b) and

29  (c), the buyer and seller as customers shall both sign

30  disclosures stating that their assets meet the threshold

31  described in this subsection and requesting that the broker

                                  35

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






    Florida Senate - 2003                                  SB 1266
    24-466A-03




  1  use the designated broker associate salesperson form of

  2  representation. In lieu of the transition disclosure

  3  requirement in s. 475.278(3)(c)2., the required disclosure

  4  notice shall include the following:

  5

  6  FLORIDA LAW PROHIBITS A DESIGNATED BROKER ASSOCIATE

  7  SALESPERSON FROM DISCLOSING, EXCEPT TO THE BROKER OR PERSONS

  8  SPECIFIED BY THE BROKER, INFORMATION MADE CONFIDENTIAL BY

  9  REQUEST OR AT THE INSTRUCTION OF THE CUSTOMER THE DESIGNATED

10  BROKER ASSOCIATE SALESPERSON IS REPRESENTING. HOWEVER, FLORIDA

11  LAW ALLOWS A DESIGNATED BROKER ASSOCIATE SALESPERSON TO

12  DISCLOSE INFORMATION ALLOWED TO BE DISCLOSED OR REQUIRED TO BE

13  DISCLOSED BY LAW AND ALSO ALLOWS A DESIGNATED BROKER ASSOCIATE

14  SALESPERSON TO DISCLOSE TO HIS OR HER BROKER, OR PERSONS

15  SPECIFIED BY THE BROKER, CONFIDENTIAL INFORMATION OF A

16  CUSTOMER FOR THE PURPOSE OF SEEKING ADVICE OR ASSISTANCE FOR

17  THE BENEFIT OF THE CUSTOMER IN REGARD TO A TRANSACTION.

18  FLORIDA LAW REQUIRES THAT THE BROKER MUST HOLD THIS

19  INFORMATION CONFIDENTIAL AND MAY NOT USE SUCH INFORMATION TO

20  THE DETRIMENT OF THE OTHER PARTY.

21         (2)  For purposes of this section, the term "buyer"

22  means a transferee or lessee in a real property transaction,

23  and the term "seller" means the transferor or lessor in a real

24  property transaction.

25         Section 17.  Section 475.278, Florida Statutes, is

26  amended to read:

27         (Substantial rewording of section. See

28         s. 475.278, F.S., for present text.)

29         475.278  Authorized brokerage relationships.--

30         (1)  TRANSACTION BROKER RELATIONSHIP.--

31

                                  36

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






    Florida Senate - 2003                                  SB 1266
    24-466A-03




  1         (a)  Presumption of transaction brokerage.--It shall be

  2  presumed that all licensees are operating as transaction

  3  brokers unless a single agent or no brokerage relationship is

  4  established, in writing, with a customer.

  5         (b)  Transaction broker duties.--A transaction broker

  6  provides a limited form of representation to a buyer, a

  7  seller, or both in a real estate transaction but does not

  8  represent either in a fiduciary capacity or as a single agent.

  9  The duties of a licensee in this limited form of

10  representation include the following:

11         1.  Dealing honestly and fairly;

12         2.  Accounting for all funds;

13         3.  Using skill, care, and diligence in the

14  transaction;

15         4.  Disclosing all known facts that materially affect

16  the value of residential real property and are not readily

17  observable to the buyer;

18         5.  Presenting all offers and counteroffers in a timely

19  manner, unless a party has previously directed the licensee

20  otherwise in writing;

21         6.  Limited confidentiality, unless waived in writing

22  by a party. This limited confidentiality will prevent

23  disclosure that the seller will accept a price less than the

24  asking or listed price, that the buyer will pay a price

25  greater than the price submitted in a written offer, of the

26  motivation of any party for selling or buying property, that a

27  seller or buyer will agree to financing terms other than those

28  offered, or of any other information requested by a party to

29  remain confidential; and

30         7.  Any additional duties that are mutually agreed to

31  with a party.

                                  37

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






    Florida Senate - 2003                                  SB 1266
    24-466A-03




  1

  2         (2)  SINGLE AGENT RELATIONSHIP.--

  3         (a)  Single agent duties.--The duties a licensee owes

  4  to a buyer or seller who engages the licensee as a single

  5  agent include the following:

  6         1.  Dealing honestly and fairly;

  7         2.  Loyalty;

  8         3.  Confidentiality;

  9         4.  Obedience;

10         5.  Full disclosure;

11         6.  Accounting for all funds;

12         7.  Skill, care, and diligence in the transaction;

13         8.  Presenting all offers and counteroffers in a timely

14  manner, unless a party has previously directed the licensee

15  otherwise in writing; and

16         9.  Disclosing all known facts that materially affect

17  the value of residential real property and are not readily

18  observable.

19         (b)  Disclosure requirements.--Licensees who seek to

20  enter into a single agent relationship with a potential buyer

21  or potential seller must give the potential buyer or potential

22  seller the disclosure contained in paragraph (c), either as a

23  separate and distinct disclosure document or included as part

24  of another document such as a listing agreement or other

25  agreement for representation. The disclosure must be made

26  before, or at the time of, entering into a listing agreement

27  or an agreement for representation or before the showing of

28  property, whichever occurs first. When incorporated into other

29  documents, the required disclosure must be of the same size

30  type, or larger, as other provisions of the document and must

31  be conspicuous in its placement so as to advise customers of

                                  38

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






    Florida Senate - 2003                                  SB 1266
    24-466A-03




  1  the duties of a single agent, except that the first sentence

  2  of the disclosure contained in paragraph (c) must be printed

  3  in uppercase and bold type.

  4         (c)  Contents of disclosure.--The disclosure required

  5  under paragraph (b) must include the following information in

  6  the following form:

  7

  8                       SINGLE AGENT NOTICE

  9

10  FLORIDA LAW REQUIRES THAT REAL ESTATE LICENSEES OPERATING AS

11  SINGLE AGENTS DISCLOSE THEIR DUTIES TO BUYERS AND SELLERS.

12

13  As a single agent, ................ (insert name of Real

14  Estate Entity and its Associate) owe to you the following

15  duties:

16         1.  Dealing honestly and fairly;

17         2.  Loyalty;

18         3.  Confidentiality;

19         4.  Obedience;

20         5.  Full disclosure;

21         6.  Accounting for all funds;

22         7.  Skill, care, and diligence in the transaction;

23         8.  Presenting all offers and counteroffers in a timely

24  manner, unless a party has previously directed the licensee

25  otherwise in writing; and

26         9.  Disclosing all known facts that materially affect

27  the value of residential real property and are not readily

28  observable.

29

30  ........                     ..............................

31  Date                         Signature

                                  39

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






    Florida Senate - 2003                                  SB 1266
    24-466A-03




  1

  2                               ..............................

  3                               Signature

  4         (d)  Dual agency prohibited.--A licensee may enter into

  5  a brokerage relationship as a single agent with potential

  6  buyers and sellers, but may not operate as a disclosed or

  7  undisclosed dual agent. As used in this section, the term

  8  "dual agent" means a broker who represents as a fiduciary both

  9  the prospective buyer and the prospective seller in a real

10  estate transaction.

11         (3)  TRANSITION TO TRANSACTION BROKER.--

12         (a) From single agent relationship.--A single agent

13  relationship may be changed to a transaction broker

14  relationship at any time during the relationship between an

15  agent and principal, provided the agent gives the disclosure

16  contained in paragraph (b) to the principal and the principal

17  gives written consent to the agent before a change in

18  relationship. This disclosure must be given to the principal

19  in writing, either as a separate and distinct document or

20  included as part of other documents such as a listing

21  agreement or other agreements for representation. When

22  incorporated into other documents, the required disclosure

23  must be of the same size type, or larger, as other provisions

24  of the document and must be conspicuous in its placement so as

25  to advise customers of the duties of limited representation,

26  except that the first sentence of the disclosure must be

27  printed in uppercase bold type.

28         (b)  Contents of disclosure.--The disclosure required

29  under paragraph (a) must include the following information in

30  the following form:

31

                                  40

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






    Florida Senate - 2003                                  SB 1266
    24-466A-03




  1                          TRANSITION TO

  2                    TRANSACTION BROKER NOTICE

  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  As a transaction broker, ................ (insert name of Real

13  Estate Firm and its Associate), provides to you a limited form

14  of representation that includes the following duties:

15         1.  Dealing honestly and fairly;

16         2.  Accounting for all funds;

17         3.  Using skill, care, and diligence in the

18  transaction;

19         4.  Disclosing all known facts that materially affect

20  the value of residential real property and are not readily

21  observable to the buyer;

22         5.  Presenting all offers and counteroffers in a timely

23  manner, unless a party has previously directed the licensee

24  otherwise in writing;

25         6.  Limited confidentiality, unless waived in writing

26  by a party. This limited confidentiality will prevent

27  disclosure that the seller will accept a price less than the

28  asking or listed price, that the buyer will pay a price

29  greater than the price submitted in a written offer, of the

30  motivation of any party for selling or buying property, that a

31  seller or buyer will agree to financing terms other than those

                                  41

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






    Florida Senate - 2003                                  SB 1266
    24-466A-03




  1  offered, or of any other information requested by a party to

  2  remain confidential; and

  3         7.  Any additional duties that are entered into by this

  4  or by separate written agreement.

  5

  6  Limited representation means that a buyer or seller is not

  7  responsible for the acts of the licensee. Additionally,

  8  parties are giving up their rights to the undivided loyalty of

  9  the licensee. This aspect of limited representation allows a

10  licensee to facilitate a real estate transaction by assisting

11  both the buyer and the seller, but a licensee will not work to

12  represent one party to the detriment of the other party when

13  acting as a transaction broker to both parties.

14

15  I agree that the licensee named above may assume the role and

16  duties of a transaction broker.

17

18  ........                     ..............................

19  Date                         Signature

20

21                               ..............................

22                               Signature

23         (4)  NO BROKERAGE RELATIONSHIP.--

24         (a)  Brokerage relationship not required.--This part

25  does not require a customer to enter into a brokerage

26  relationship with any licensee.

27         (b)  No brokerage relationship duties.--A licensee owes

28  to a potential seller or potential buyer with whom the

29  licensee has no brokerage relationship the following duties:

30         1.  Dealing honestly and fairly;

31

                                  42

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






    Florida Senate - 2003                                  SB 1266
    24-466A-03




  1         2.  Disclosing all known facts that materially affect

  2  the value of the residential real property which are not

  3  readily observable to the buyer; and

  4         3.  Accounting for all funds entrusted to the licensee.

  5         (c)  Disclosure requirements.--A licensee who has no

  6  brokerage relationship with a potential buyer or potential

  7  seller must give the potential buyer or potential seller the

  8  disclosure contained in paragraph (d). The disclosure must be

  9  given in writing prior to the showing of property. When

10  incorporated into other documents, the required disclosure

11  must be of the same size type, or larger, as other provisions

12  of the document and must be conspicuous in its placement so as

13  to advise customers of the duties of a licensee that has no

14  brokerage relationship with a buyer or seller, except that the

15  first sentence of the information identified in paragraph (d)

16  must be printed in uppercase bold type.

17         (d)  Contents of disclosure.--The disclosure required

18  under paragraph (c) must include the following information in

19  the following form:

20

21                 NO BROKERAGE RELATIONSHIP NOTICE

22

23  FLORIDA LAW REQUIRES THAT REAL ESTATE LICENSEES WHO HAVE NO

24  BROKERAGE RELATIONSHIP WITH A POTENTIAL SELLER OF BUYER

25  DISCLOSE THEIR DUTIES TO SELLERS AND BUYERS.

26

27  As a real estate licensee who has no brokerage relationship

28  with you, ................ (insert name of Real Estate Entity

29  and its Associate) owe to you the following duties:

30         1.  Dealing honestly and fairly;

31

                                  43

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






    Florida Senate - 2003                                  SB 1266
    24-466A-03




  1         2.  Disclosing all known facts that materially affect

  2  the value of residential real property which are not readily

  3  observable to the buyer.

  4         3.  Accounting for all funds entrusted to the licensee.

  5

  6  ........                     ..............................

  7  Date                         Signature

  8

  9                               ..............................

10                               Signature

11         (5)  APPLICABILITY.--

12         (a)  Residential sales.--The disclosure requirements

13  contained in this section apply to all residential sales. As

14  used in this subsection, the term "residential sale" means the

15  sale of improved residential property of four units or fewer,

16  the sale of unimproved residential property intended for use

17  of four units or fewer, or the sale of agricultural property

18  of 10 acres or less.

19         (b)  Disclosure limitations.--

20         1.  The disclosure requirements contained in this

21  section do not apply when a licensee knows that the potential

22  seller or buyer is represented by a single agent or a

23  transaction broker; or when an owner is selling new

24  residential units built by the owner and the circumstances or

25  setting should reasonably inform the potential buyer that the

26  owner's employee or single agent is acting on behalf of the

27  owner, whether because of the location of the sales office or

28  because of office signage or placards or identification badges

29  worn by the owner's employee or single agent.

30         2.  The disclosure requirements contained in this

31  section do not apply to nonresidential transactions; the

                                  44

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






    Florida Senate - 2003                                  SB 1266
    24-466A-03




  1  rental or leasing of real property, unless an option to

  2  purchase all or a portion of the property improved with four

  3  or fewer residential units is given; a bona fide "open house"

  4  or model home showing that does not involve eliciting

  5  confidential information, the execution of a contractual offer

  6  or an agreement for representation, or negotiations concerning

  7  price, terms, or conditions of a potential sale; unanticipated

  8  casual conversations between a licensee and a seller or buyer

  9  which do not involve eliciting confidential information, the

10  execution of a contractual offer or agreement for

11  representation, or negotiations concerning price, terms, or

12  conditions of a potential sale; responding to general factual

13  questions from a potential buyer or seller concerning

14  properties that have been advertised for sale; situations in

15  which a licensee's communications with a potential buyer or

16  seller are limited to providing general factual information,

17  oral or written, about the qualifications, background, and

18  services of the licensee or the licensee's brokerage firm;

19  auctions; appraisals; and dispositions of any interest in

20  business enterprises or business opportunities, except for

21  property with four or fewer residential units.

22         Section 18.  Subsection (1) of section 475.31, Florida

23  Statutes, is amended to read:

24         475.31  Final orders.--

25         (1)  An order revoking or suspending the license of a

26  broker shall automatically cause cancel the licenses of all

27  broker associates salespersons registered with the broker,

28  and, if a partnership or corporation, of all members,

29  officers, and directors thereof to become involuntarily

30  inactive, while the license of the broker is inoperative or

31  until new employment or connection is secured.

                                  45

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






    Florida Senate - 2003                                  SB 1266
    24-466A-03




  1         Section 19.  Section 475.37, Florida Statutes, is

  2  amended to read:

  3         475.37  Effect of reversal of order of court or

  4  commission.--If the order of the court or commission denying a

  5  license or taking any disciplinary action against a licensee

  6  is finally reversed and set aside, the defendant shall be

  7  restored to her or his rights and privileges as a broker or

  8  broker associate salesperson as of the date of filing the

  9  mandate or a copy thereof with the commission. The matters and

10  things alleged in the information shall not thereafter be

11  reexamined in any other proceeding concerning the licensure of

12  the defendant. If the inquiry concerned was in reference to an

13  application for licensure, the application shall stand

14  approved, and such application shall be remanded for further

15  proceedings according to law.

16         Section 20.  Section 475.4005, Florida Statutes, is

17  created to read:

18         475.4005  Unlicensed practice of profession regulated

19  in this chapter; cease and desist notice; civil penalty;

20  enforcement; citations; allocation of moneys.--

21         (1)  When the commission has probable cause to believe

22  that any person not licensed by the department has violated

23  any provision of this chapter or any statute that relates to

24  the practice of a profession regulated under this chapter or

25  any rule adopted pursuant thereto, the commission may issue

26  and deliver to such person a notice to cease and desist from

27  such violation. In addition, the commission may issue and

28  deliver a notice to cease and desist to any person who aids

29  and abets such unlicensed practice by employing such

30  unlicensed persons. The issuance of a notice to cease and

31  desist shall not constitute agency action for which a hearing

                                  46

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






    Florida Senate - 2003                                  SB 1266
    24-466A-03




  1  under ss. 120.569 and 120.57 may be sought. For the purpose of

  2  enforcing a cease and desist order, the commission may file a

  3  proceeding in the name of the state seeking issuance of an

  4  injunction or a writ of mandamus against any person who

  5  violates any provision of such order. In addition to the

  6  foregoing remedies, the commission may impose an

  7  administrative penalty not to exceed $5,000 per incident

  8  pursuant to the provisions of chapter 120 or may issue a

  9  citation pursuant to subsection (3). If the commission is

10  required to seek enforcement of the order for a penalty

11  pursuant to s. 120.569, it is entitled to collect its

12  attorney's fees and costs, together with any cost of

13  collection.

14         (2)  In addition to or in lieu of any remedy provided

15  in subsection (1), the department may seek the imposition of a

16  civil penalty through the circuit court for any violation for

17  which the commission may issue a notice to cease and desist

18  under subsection (1). The civil penalty shall be no less than

19  $500 and no more than $5,000 for each offense. The court may

20  also award to the prevailing party court costs and reasonable

21  attorney's fees and, if the commission prevails, may also

22  award reasonable costs of investigation.

23         (3)(a)  Notwithstanding s. 455.225, the commission

24  shall adopt rules to permit the issuance of citations for

25  unlicensed practice of a profession regulated under this

26  chapter. The citation shall be issued to the subject and shall

27  contain the subject's name and any other information the

28  department determines to be necessary to identify the subject,

29  a brief factual statement, the sections of law allegedly

30  violated, and the penalty imposed. The citation must clearly

31  state that the subject may choose, in lieu of accepting the

                                  47

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






    Florida Senate - 2003                                  SB 1266
    24-466A-03




  1  citation, to follow the procedure under s. 455.225. If the

  2  subject disputes the matter in the citation, the procedures

  3  set forth in s. 455.225 must be followed. However, if the

  4  subject does not dispute the matter in the citation with the

  5  commission within 30 days after the citation is served, the

  6  citation shall become a final order of the commission. The

  7  penalty shall be a fine of not less than $500 or more than

  8  $5,000 or other conditions as established by rule.

  9         (b)  Each day that the unlicensed practice continues

10  after issuance of a citation constitutes a separate violation.

11         (c)  The commission may recover the costs of

12  investigation, in addition to any penalty provided according

13  to commission rule as part of the penalty levied pursuant to

14  the citation.

15         (d)  Service of a citation may be made by personal

16  service or certified mail, restricted delivery, to the subject

17  at the subject's last known address.

18         (4)  All fines, fees, and costs collected through the

19  procedures set forth in this section shall be allocated to the

20  Real Estate Recovery Fund.

21         (5) The commission shall employ attorneys and

22  investigators to investigate and prosecute unlicensed activity

23  in real estate transactions.

24         Section 21.  Section 475.41, Florida Statutes, is

25  amended to read:

26         475.41  Contracts of unlicensed person for commissions

27  invalid.--No contract for a commission or compensation for any

28  act or service enumerated in s. 475.01(3) is valid unless the

29  broker or broker associate salesperson has complied with this

30  chapter in regard to issuance and renewal of the license at

31  the time the act or service was performed.

                                  48

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






    Florida Senate - 2003                                  SB 1266
    24-466A-03




  1         Section 22.  Subsection (1) of section 475.42, Florida

  2  Statutes, is amended to read:

  3         475.42  Violations and penalties.--

  4         (1)  VIOLATIONS.--

  5         (a)  A No person may not shall operate as a broker or

  6  broker associate salesperson without being the holder of a

  7  valid and current active license therefor.

  8         (b)  A No person licensed as a broker associate may not

  9  salesperson shall operate as a broker or operate as a broker

10  associate salesperson for any person not registered as her or

11  his employer.

12         (c)  A No broker may not shall employ, or continue in

13  employment, any person as a broker or broker associate

14  salesperson who is not the holder of a valid and current

15  license as broker or broker associate, respectively

16  salesperson; but a license as salesperson may be issued to a

17  person licensed as an active broker, upon request and

18  surrender of the license as broker, without a fee in addition

19  to that paid for the issuance of the broker's active license.

20         (d)  A broker associate may not No salesperson shall

21  collect any money in connection with any real estate brokerage

22  transaction, whether as a commission, deposit, payment,

23  rental, or otherwise, except in the name of the employer and

24  with the express consent of the employer; and no real estate

25  broker associate salesperson, whether the holder of a valid

26  and current license or not, shall commence or maintain any

27  action for a commission or compensation in connection with a

28  real estate brokerage transaction against any person except a

29  person registered as her or his employer at the time the

30  broker associate salesperson performed the act or rendered the

31  service for which the commission or compensation is due.

                                  49

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






    Florida Senate - 2003                                  SB 1266
    24-466A-03




  1         (e)  A No person may not shall violate any lawful order

  2  or rule of the commission which is binding upon her or him.

  3         (f)  A No person may not shall commit any conduct or

  4  practice set forth in s. 475.25(1)(b), (c), (d), or (h).

  5         (g)  A No person may not shall make any false affidavit

  6  or affirmation intended for use as evidence by or before the

  7  commission or a member thereof, or by any of its authorized

  8  representatives, nor may shall any person give false testimony

  9  under oath or affirmation to or before the commission or any

10  member thereof in any proceeding authorized by this chapter.

11         (h)  A No person may not shall fail or refuse to appear

12  at the time and place designated in a subpoena issued with

13  respect to a violation of this chapter, unless because of

14  facts that are sufficient to excuse appearance in response to

15  a subpoena from the circuit court; nor may shall a person who

16  is present before the commission or a member thereof or one of

17  its authorized representatives acting under authority of this

18  chapter refuse to be sworn or to affirm or fail or refuse to

19  answer fully any question propounded by the commission, the

20  member, or such representative, or by any person by the

21  authority of such officer or appointee; nor may shall any

22  person, so being present, conduct herself or himself in a

23  disorderly, disrespectful, or contumacious manner.

24         (i)  A No person may not shall obstruct or hinder in

25  any manner the enforcement of this chapter or the performance

26  of any lawful duty by any person acting under the authority of

27  this chapter or interfere with, intimidate, or offer any bribe

28  to any member of the commission or any of its employees or any

29  person who is, or is expected to be, a witness in any

30  investigation or proceeding relating to a violation of this

31  chapter.

                                  50

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






    Florida Senate - 2003                                  SB 1266
    24-466A-03




  1         (j)  A No broker or broker associate may not

  2  salesperson shall place, or cause to be placed, upon the

  3  public records of any county, any contract, assignment, deed,

  4  will, mortgage, affidavit, or other writing which purports to

  5  affect the title of, or encumber, any real property if the

  6  same is known to her or him to be false, void, or not

  7  authorized to be placed of record, or not executed in the form

  8  entitling it to be recorded, or the execution or recording

  9  whereof has not been authorized by the owner of the property,

10  maliciously or for the purpose of collecting a commission, or

11  to coerce the payment of money to the broker or broker

12  associate salesperson or other person, or for any unlawful

13  purpose.  However, nothing in this paragraph shall be

14  construed to prohibit a broker or a broker associate

15  salesperson from recording a judgment rendered by a court of

16  this state or to prohibit a broker from placing a lien on a

17  property where expressly permitted by contractual agreement.

18         (k)  A No person may not shall operate as a broker

19  under a trade name without causing the trade name to be noted

20  in the records of the commission and placed on the person's

21  license, or so operate as a member of a partnership or as a

22  corporation or as an officer or manager thereof, unless such

23  partnership or corporation is the holder of a valid current

24  registration.

25         (l)  A No person may not shall knowingly conceal any

26  information relating to violations of this chapter.

27         (m)  A No person may not shall undertake to list or

28  sell one or more timeshare periods per year in one or more

29  timeshare plans on behalf of any number of persons without

30  first being the holder of a valid and current license as a

31

                                  51

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






    Florida Senate - 2003                                  SB 1266
    24-466A-03




  1  broker or broker associate salesperson pursuant to this

  2  chapter, except as provided in s. 475.011 and chapter 721.

  3         (n)  A No broker or broker associate may not

  4  salesperson shall enter into any listing or other agreement

  5  regarding her or his services in connection with the resale of

  6  a timeshare period unless the broker or broker associate

  7  salesperson fully and fairly discloses all material aspects of

  8  the agreement to the owner of the timeshare period and fully

  9  complies with the provisions of s. 475.452.  Further, a no

10  broker or broker associate may not use salesperson shall

11  utilize any form of contract or purchase and sale agreement in

12  connection with the resale of a timeshare period unless the

13  contract or purchase and sale agreement fully and fairly

14  discloses all material aspects of the timeshare plan and the

15  rights and obligations of both buyer and seller. The

16  commission is authorized to adopt promulgate rules pursuant to

17  chapter 120 as necessary to implement, enforce, and interpret

18  this paragraph.

19         (o)  A person may not disseminate or cause to be

20  disseminated by any means any false or misleading information

21  for the purpose of offering for sale, or for the purpose of

22  causing or inducing any other person to purchase, lease, or

23  rent, real estate located in the state or for the purpose of

24  causing or inducing any other person to acquire an interest in

25  the title to real estate located in the state.

26         Section 23.  Section 475.43, Florida Statutes, is

27  amended to read:

28         475.43  Presumptions.--In all criminal cases, contempt

29  cases, and other cases filed pursuant to this chapter, if a

30  party has sold, leased, or let real estate, the title to which

31  was not in the party when it was offered for sale, lease, or

                                  52

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






    Florida Senate - 2003                                  SB 1266
    24-466A-03




  1  letting, or such party has maintained an office bearing signs

  2  that real estate is for sale, lease, or rental thereat, or has

  3  advertised real estate for sale, lease, or rental, generally,

  4  or describing property, the title to which was not in such

  5  party at the time, it shall be a presumption that such party

  6  was acting or attempting to act as a real estate broker, and

  7  the burden of proof shall be upon him or her to show that he

  8  or she was not acting or attempting to act as a broker or

  9  broker associate salesperson.  All contracts, options, or

10  other devices not based upon a substantial consideration, or

11  that are otherwise employed to permit an unlicensed person to

12  sell, lease, or let real estate, the beneficial title to which

13  has not, in good faith, passed to such party for a substantial

14  consideration, are hereby declared void and ineffective in all

15  cases, suits, or proceedings had or taken under this chapter;

16  however, this section shall not apply to irrevocable gifts, to

17  unconditional contracts to purchase, or to options based upon

18  a substantial consideration actually paid and not subject to

19  any agreements to return or right of return reserved.

20         Section 24.  Section 475.451, Florida Statutes, is

21  amended to read:

22         475.451  Schools teaching real estate practice.--

23         (1)  Each person, school, or institution, except

24  approved and accredited colleges, universities, community

25  colleges, and area technical centers in this state, which

26  offers or conducts any course of study in real estate

27  practice, teaches any course prescribed by the commission as a

28  condition precedent to licensure or renewal of licensure as a

29  broker or broker associate salesperson, or teaches any course

30  designed or represented to enable or assist applicants for

31  licensure as brokers or broker associates salespersons to pass

                                  53

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






    Florida Senate - 2003                                  SB 1266
    24-466A-03




  1  examinations for such licensure shall, before commencing or

  2  continuing further to offer or conduct such course or courses,

  3  obtain a permit from the department and abide by the

  4  regulations imposed upon such person, school, or institution

  5  by this chapter and rules of the commission adopted pursuant

  6  to this chapter. The exemption for colleges, universities,

  7  community colleges, and area technical centers is limited to

  8  transferable college credit courses offered by such

  9  institutions.

10         (2)  An applicant for a permit to operate a proprietary

11  real estate school, to be a chief administrator of a

12  proprietary real estate school or a state institution, or to

13  be an instructor for a proprietary real estate school or a

14  state institution must meet the qualifications for practice

15  set forth in s. 475.17(1) and the following minimal

16  requirements:

17         (a)  "School permitholder" means the individual who is

18  responsible for directing the overall operation of a

19  proprietary real estate school.  A school permitholder must be

20  the holder of a license as a broker, either active or

21  voluntarily inactive, or must have passed an instructor's

22  examination approved by the commission.  A school permitholder

23  must also meet the requirements of a school instructor if

24  actively engaged in teaching.

25         (b)  "Chief administrative person" means the individual

26  who is responsible for the administration of the overall

27  policies and practices of the institution or proprietary real

28  estate school. A chief administrative person must also meet

29  the requirements of a school instructor if actively engaged in

30  teaching.

31

                                  54

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






    Florida Senate - 2003                                  SB 1266
    24-466A-03




  1         (c)  "School instructor" means an individual who

  2  instructs persons in the classroom in noncredit college

  3  courses in a college, university, or community college or

  4  courses in an area technical center or proprietary real estate

  5  school.

  6         1.  Before commencing to provide such instruction, the

  7  applicant must certify the applicant's competency and obtain

  8  an instructor permit by meeting one of the following

  9  requirements:

10         a.  Hold a bachelor's degree in a business-related

11  subject, such as real estate, finance, accounting, business

12  administration, or its equivalent and hold a valid broker's

13  license in this state.

14         b.  Hold a bachelor's degree, have extensive real

15  estate experience, as defined by rule, and hold a valid

16  broker's license in this state.

17         c.  Pass an instructor's examination approved by the

18  commission.

19         2.  Any requirement by the commission for a teaching

20  demonstration or practical examination must apply to all

21  school instructor applicants.

22         3.  The department shall renew an instructor permit

23  upon receipt of a renewal application and fee. The renewal

24  application shall include proof that the permitholder has,

25  since the issuance or renewal of the current permit,

26  successfully completed a minimum of 4 15 classroom hours of

27  instruction provided by the commission covering changes in the

28  law and case law for each biennium of a license period in real

29  estate subjects or instructional techniques, as prescribed by

30  the commission. The commission shall adopt rules providing for

31  the renewal of instructor permits at least every 4 2 years.

                                  55

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






    Florida Senate - 2003                                  SB 1266
    24-466A-03




  1  Any permit which is not renewed at the end of the permit

  2  period established by the department shall automatically

  3  revert to involuntarily inactive status.

  4

  5  The department may require an applicant to submit names of

  6  persons having knowledge concerning the applicant and the

  7  enterprise; may propound interrogatories to such persons and

  8  to the applicant concerning the character of the applicant,

  9  including the taking of fingerprints for processing through

10  the Federal Bureau of Investigation; and shall make such

11  investigation of the applicant or the school or institution as

12  it may deem necessary to the granting of the permit. If an

13  objection is filed, it shall be considered in the same manner

14  as objections or administrative complaints against other

15  applicants for licensure by the department.

16         (3)  It is unlawful for any person, school, or

17  institution to offer the courses described in subsection (1)

18  or to conduct classes in such courses, regardless of the

19  number of pupils, whether by correspondence or otherwise,

20  without first procuring a permit, or to guarantee that its

21  pupils will pass any examinations required for licensure, or

22  to represent that the issuance of a permit is any

23  recommendation or endorsement of the person, school, or

24  institution to which it is issued or of any course of

25  instruction given thereunder.

26         (4)  Any person who violates this section commits a

27  misdemeanor of the second degree, punishable as provided in s.

28  775.082 or s. 775.083.

29         (5)  The location of classes and frequency of class

30  meetings and the provision of interactive distance learning

31  courses shall be in the discretion of the school offering real

                                  56

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






    Florida Senate - 2003                                  SB 1266
    24-466A-03




  1  estate courses, so long as such courses conform to s.

  2  475.17(2).

  3         (6)  Any course prescribed by the commission as a

  4  condition precedent to any person's becoming initially

  5  licensed as a broker associate salesperson may be taught in

  6  any real estate school through the use of a video tape of

  7  instruction by a currently permitted instructor from any such

  8  school or may be taught by interactive distance learning

  9  pursuant to s. 475.17(2).  The commission may require that any

10  such video tape course have a single session of live

11  instruction by a currently permitted instructor from any such

12  school; however, this requirement shall not exceed 3 classroom

13  hours.  All other prescribed courses, except the continuing

14  education course required by s. 475.182, shall be taught by a

15  currently permitted school instructor personally in attendance

16  at such course or by interactive distance learning pursuant to

17  s. 475.17.  The continuing education course required by s.

18  475.182 may be taught by interactive distance learning

19  pursuant to s. 475.17 or by an equivalent correspondence

20  course; however, any such correspondence course shall be

21  required to have a final examination, prepared and

22  administered by the school issuing the correspondence course.

23  The continuing education requirements provided in this section

24  or provided in any other section in this chapter do not apply

25  with respect to any attorney who is otherwise qualified under

26  the provisions of this chapter.

27         (7)  Any person holding a school instructor permit on

28  October 1, 1983, is exempt from the instructor examination

29  requirements of paragraph (2)(c) as long as the person

30  continuously holds such a permit and complies with all other

31  requirements of this chapter.

                                  57

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






    Florida Senate - 2003                                  SB 1266
    24-466A-03




  1         (7) (8)  A permitholder under this section may be

  2  issued additional permits whenever it is clearly shown that

  3  the requested additional permits are necessary to the conduct

  4  of the business of a real estate school and that the

  5  additional permits will not be used in a manner likely to be

  6  prejudicial to any person, including a licensee or a

  7  permitholder under this chapter.

  8         Section 25.  Subsections (3), (4), and (5) of section

  9  475.4511, Florida Statutes, are repealed.

10         Section 26.  Section 475.453, Florida Statutes, is

11  amended to read:

12         475.453  Rental information; contract or receipt;

13  refund; penalty.--

14         (1)  Each broker or broker associate salesperson who

15  attempts to negotiate a rental, or who furnishes rental

16  information to a prospective tenant, for a fee paid by the

17  prospective tenant shall provide such prospective tenant with

18  a contract or receipt, which contract or receipt contains a

19  provision for the repayment of any amount over 25 percent of

20  the fee to the prospective tenant if the prospective tenant

21  does not obtain a rental.  If the rental information provided

22  by the broker or broker associate salesperson to a prospective

23  tenant is not current or accurate in any material respect, the

24  full fee shall be repaid to the prospective tenant upon

25  demand.  A demand from the prospective tenant for the return

26  of the fee, or any part thereof, shall be made within 30 days

27  following the day on which the real estate broker or broker

28  associate salesperson has contracted to perform services to

29  the prospective tenant.  The contract or receipt shall also

30  conform to the guidelines adopted by the commission in order

31

                                  58

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






    Florida Senate - 2003                                  SB 1266
    24-466A-03




  1  to effect disclosure of material information regarding the

  2  service to be provided to the prospective tenant.

  3         (2)  The commission may adopt a guideline for the form

  4  of the contract or receipt required to be provided by brokers

  5  or broker associates salespersons pursuant to the provisions

  6  of subsection (1).

  7         (3)(a)  Any person who violates any provision of

  8  subsection (1) is guilty of a misdemeanor of the first degree,

  9  punishable as provided in s. 775.082 or s. 775.083.

10         (b)  In addition to the penalty prescribed in paragraph

11  (a), the license of any broker or broker associate salesperson

12  who participates in any rental information transaction which

13  is in violation of the provisions of subsection (1) shall be

14  subject to suspension or revocation by the commission in the

15  manner prescribed by law.

16         Section 27.  Section 475.455, Florida Statutes, is

17  amended to read:

18         475.455  Exchange of disciplinary information.--The

19  commission shall inform the Division of Florida Land Sales,

20  Condominiums, and Mobile Homes of the Department of Business

21  and Professional Regulation of any disciplinary action the

22  commission has taken against any of its licensees. The

23  division shall inform the commission of any disciplinary

24  action the division has taken against any broker or broker

25  associate salesperson registered with the division.

26         Section 28.  Section 475.482, Florida Statutes, is

27  amended to read:

28         475.482  Real Estate Recovery Fund.--There is created

29  the Florida Real Estate Recovery Fund as a separate account in

30  the Professional Regulation Trust Fund.

31

                                  59

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






    Florida Senate - 2003                                  SB 1266
    24-466A-03




  1         (1)  The Florida Real Estate Recovery Fund shall be

  2  disbursed as provided in s. 475.484, on order of the

  3  commission, as reimbursement to any person, partnership, or

  4  corporation adjudged by a court of competent civil

  5  jurisdiction in this state to have suffered monetary damages

  6  by reason of any act committed, as a part of any real estate

  7  brokerage transaction involving real property in this state,

  8  by any broker or broker associate salesperson who:

  9         (a)  Was, at the time the alleged act was committed,

10  the holder of a current, valid, active real estate license

11  issued under this part;

12         (b)  Was neither the seller, buyer, landlord, or tenant

13  in the transaction nor an officer or a director of a

14  corporation, a member of a partnership, a member of a limited

15  liability company, or a partner of a limited liability

16  partnership which was the seller, buyer, landlord, or tenant

17  in the transaction; and

18         (c)  Was acting solely in the capacity of a real estate

19  licensee in the transaction;

20

21  provided the act was a violation proscribed in s. 475.25 or s.

22  475.42.

23         (2)  The Real Estate Recovery Fund shall also be

24  disbursed as provided in s. 475.484, on order of the

25  commission, as reimbursement to any broker or broker associate

26  salesperson who is required by a court of competent civil

27  jurisdiction to pay monetary damages due to a distribution of

28  escrow moneys which is made in compliance with an escrow

29  disbursement order issued by the commission. However, in no

30  case shall the fund be disbursed when the broker or broker

31  associate salesperson fails to notify the commission and to

                                  60

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






    Florida Senate - 2003                                  SB 1266
    24-466A-03




  1  diligently defend an action wherein the broker or broker

  2  associate salesperson may be required by a court of competent

  3  civil jurisdiction to pay monetary damages due to a

  4  distribution of escrow moneys which is made in compliance with

  5  an escrow disbursement order issued by the commission.

  6         (3)  A fee of $3.50 per year shall be added to the

  7  license fee for both new licenses and renewals of licenses for

  8  brokers, and a fee of $1.50 per year shall be added for new

  9  licenses and renewals of licenses for broker associates

10  salespersons.  This fee shall be in addition to the regular

11  license fee and shall be deposited in or transferred to the

12  Real Estate Recovery Fund.  If the fund at any time exceeds $1

13  million $750,000, collection of special fees for this fund

14  shall be discontinued at the end of the licensing renewal

15  cycle.  Such special fees shall not be reimposed unless the

16  fund is reduced below $500,000 by disbursement made in

17  accordance with this chapter.

18         (4)  In addition, all moneys collected from fines

19  imposed by the commission and collected by the department

20  shall be transferred into the Real Estate Recovery Fund.

21         Section 29.  Paragraph (a) of subsection (1) and

22  subsections (2) and (3) of section 475.483, Florida Statutes,

23  are amended to read:

24         475.483  Conditions for recovery; eligibility.--

25         (1)  Any person is eligible to seek recovery from the

26  Real Estate Recovery Fund if:

27         (a)  Such person has received a final judgment in a

28  court of competent civil jurisdiction in this state against an

29  individual broker or broker associate salesperson in any

30  action wherein the cause of action was based on a real estate

31  brokerage transaction. If such person is unable to secure a

                                  61

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






    Florida Senate - 2003                                  SB 1266
    24-466A-03




  1  final judgment against a licensee due to the death of the

  2  licensee, the commission may waive the requirement for a final

  3  judgment. The filing of a bankruptcy petition by a broker or

  4  broker associate salesperson does not relieve a claimant from

  5  the obligation to obtain a final judgment against the

  6  licensee. In this instance, the claimant must seek to have

  7  assets involving the real estate transaction that gave rise to

  8  the claim removed from the bankruptcy proceedings so that the

  9  matter might be heard in a court of competent civil

10  jurisdiction in this state. If, after due diligence, the

11  claimant is precluded by action of the bankruptcy court from

12  securing a final judgment against the licensee, the commission

13  may waive the requirement for a final judgment.

14         (2)  A person is not qualified to make a claim for

15  recovery from the Real Estate Recovery Fund, if:

16         (a)  Such person is the spouse of the judgment debtor

17  or a personal representative of such spouse;

18         (b)  Such person is a licensed broker or broker

19  associate salesperson who acted as a single agent or

20  transaction broker in the transaction that is the subject of

21  the claim;

22         (c)  Such person's claim is based upon a real estate

23  transaction in which the licensed broker or broker associate

24  salesperson was the owner of or controlled the property

25  involved in the transaction; in which the licensee was dealing

26  for the licensee's own account; or in which the licensee was

27  not acting as a broker or broker associate salesperson;

28         (d)  Such person's claim is based upon a real estate

29  transaction in which the broker or broker associate

30  salesperson did not hold a valid, current, and active license

31  at the time of the real estate transaction; or

                                  62

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






    Florida Senate - 2003                                  SB 1266
    24-466A-03




  1         (e)  The judgment is against a real estate brokerage

  2  corporation, partnership, limited liability company, or

  3  limited liability partnership.

  4         (3)  The commission may pay attorney's fees and court

  5  costs If the claim is of the type described in s. 475.482(2),

  6  the commission shall pay the defendant's attorney's fees and

  7  court costs and, if the plaintiff prevails in court, the

  8  plaintiff's attorney's fees and court costs.

  9         Section 30.  Subsections (1), (3), (4), (5), and (7) of

10  section 475.484, Florida Statutes, are amended to read:

11         475.484  Payment from the fund.--

12         (1)  Any person who meets all of the conditions

13  prescribed in s. 475.482(1) or (2) may apply to the commission

14  to cause payment to be made to such person from the Real

15  Estate Recovery Fund:

16         (a)  Under s. 475.482(1), in an amount equal to the

17  unsatisfied portion of such person's judgment or $50,000

18  $25,000, whichever is less, but only to the extent and amount

19  reflected in the judgment as being actual or compensatory

20  damages. Except as provided in s. 475.483, treble damages,

21  court costs, attorney's fees, and interest shall not be

22  recovered from the fund.

23         (b)  Under s. 475.482(2), in an amount equal to the

24  judgment against the broker or broker associate salesperson or

25  $50,000 $25,000, whichever is less.

26         (3)  Payments for claims arising out of the same

27  transaction shall be limited, in the aggregate, to $50,000

28  $25,000, regardless of the number of claimants or parcels of

29  real estate involved in the transaction.

30

31

                                  63

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






    Florida Senate - 2003                                  SB 1266
    24-466A-03




  1         (4)  Payments for claims based upon judgments against

  2  any one broker or broker associate salesperson may not exceed,

  3  in the aggregate, $150,000 $75,000.

  4         (5)  If at any time the moneys in the Real Estate

  5  Recovery Fund are insufficient to satisfy any valid claim or

  6  portion thereof, the commission shall satisfy such unpaid

  7  claim or portion thereof as soon as a sufficient amount of

  8  money has been deposited in or transferred to the fund. When

  9  there is more than one unsatisfied claim outstanding, such

10  claims shall be paid in the order in which the claims were

11  approved by the commission. However, if the total claims

12  approved at any one commission meeting exceed the aggregate

13  amount established in subsection (4) against any one broker or

14  broker associate salesperson, the claims approved on that day

15  shall be prorated.

16         (7)  Upon the payment of any amount from the Real

17  Estate Recovery Fund in settlement of a claim in satisfaction

18  of a judgment against a broker or broker associate salesperson

19  as described in s. 475.482(1), the license of such broker or

20  broker associate salesperson shall be automatically suspended

21  upon the date of payment from the fund. The license of such

22  broker or broker associate salesperson may not be reinstated

23  until the licensee has repaid in full, plus interest, the

24  amount paid from the fund. No further administrative action is

25  necessary. A discharge of bankruptcy does not relieve a

26  licensee from the penalties and disabilities provided in this

27  section, except to the extent that this subsection conflicts

28  with 11 U.S.C. s. 525, in which case the commission may order

29  the license not to be suspended or otherwise discriminated

30  against.

31

                                  64

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






    Florida Senate - 2003                                  SB 1266
    24-466A-03




  1         Section 31.  Subsection (2) of section 475.5017,

  2  Florida Statutes, is amended to read:

  3         475.5017  Injunctive relief; powers.--

  4         (2)  All expenses of the receiver shall be paid out of

  5  the assets of the brokerage firm upon application to and

  6  approval by the court. If the assets are not sufficient to pay

  7  all the expenses of the receiver, the court may order

  8  disbursement from the Real Estate Recovery Fund, which may not

  9  exceed $100,000 $75,000 per receivership.

10         Section 32.  Subsections (2) and (3) of section

11  475.612, Florida Statutes, are amended to read:

12         475.612  Certification, licensure, or registration

13  required.--

14         (2)  This section does not preclude a broker,

15  salesperson, or broker associate broker-salesperson who is not

16  a certified or licensed real estate appraiser or registered

17  assistant real estate appraiser from appraising real estate

18  for compensation.  Such persons may continue to provide

19  appraisals and appraisal services for compensation so long as

20  they do not represent themselves as certified, licensed, or

21  registered under this part.

22         (3)  This section does not apply to a real estate

23  broker or broker associate salesperson who, in the ordinary

24  course of business, performs a comparative market analysis,

25  gives a broker price opinion, or gives an opinion of the value

26  of real estate.  However, in no event may this comparative

27  market analysis, broker price opinion, or opinion of value of

28  real estate be referred to or construed as an appraisal.

29         Section 33.  Section 689.25, Florida Statutes, is

30  amended to read:

31

                                  65

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






    Florida Senate - 2003                                  SB 1266
    24-466A-03




  1         689.25  Failure to disclose homicide, other felony,

  2  suicide, deaths, or diagnosis of HIV or AIDS infection in an

  3  occupant of real property.--

  4         (1)(a)  The fact that an occupant of real property is

  5  infected or has been infected with human immunodeficiency

  6  virus or diagnosed with acquired immune deficiency syndrome is

  7  not a material fact that must be disclosed in a real estate

  8  transaction.

  9         (b)  The fact that a property was, or was at any time

10  suspected to have been, the site of a homicide or other

11  felony, suicide, or death is not a material fact that must be

12  disclosed in a real estate transaction.

13         (2)  A No cause of action shall not arise arises

14  against an owner of real property, or his or her agent, an or

15  against any agent of a transferee of real property, or a

16  person licensed under chapter 475 for the failure to disclose

17  to the transferee that the property was or was suspected to

18  have been the site of a homicide or other felony, suicide, or

19  death or that an occupant of that property was infected with

20  human immunodeficiency virus or diagnosed with acquired immune

21  deficiency syndrome.

22         Section 34.  Sections 475.421, 475.422, and 475.452,

23  Florida Statutes, are repealed.

24         Section 35.  This act shall take effect July 1, 2003.

25

26            *****************************************

27                          SENATE SUMMARY

28    Revises a variety of provisions relating to the practice
      of professions dealing with real estate, including
29    terminology, licensure requirements, uses of the Real
      Estate Recovery Fund, advertising, real estate schools,
30    powers and duties of the Florida Real Estate Commission,
      and powers and duties of brokers with respect to their
31    professional activities. (See bill for details.)

                                  66

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