Florida Senate - 2005                      COMMITTEE AMENDMENT
    Bill No. SB 2036
                        Barcode 322466
                            CHAMBER ACTION
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11  The Committee on Regulated Industries (Posey) recommended the
12  following amendment:
13  
14         Senate Amendment (with title amendment) 
15         Delete everything after the enacting clause
16  
17  and insert:  
18         Section 1.  Part III of chapter 475, Florida Statutes,
19  consisting of sections 475.700, 475.701, 475.703, 475.705,
20  475.707, 475.709, 475.711, 475.713, 475.715, 475.717, and
21  475.719, is created to read:
22         475.700  Popular name.--Sections 475.700-475.719 may be
23  cited as the "Commercial Real Estate Sales Commission Lien
24  Act."
25         475.701  Definitions.--As used in this part:
26         (1)  "Broker" has the same meaning as in s. 475.01.
27         (2)  "Brokerage agreement" means a written contract
28  entered into on or after the effective date of this act
29  between an owner of commercial real estate and a broker that
30  obligates the owner to pay a commission to the broker for
31  licensed services provided by the broker relating to the sale
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Florida Senate - 2005 COMMITTEE AMENDMENT Bill No. SB 2036 Barcode 322466 1 or disposition of the commercial real estate as specified in 2 the contract. 3 (3) "Closing" means the delivery, exchange, and 4 release of documents and funds for the completion of a 5 transaction for the disposition of commercial real estate. 6 (4) "Closing agent" means the person who receives 7 documents and funds for recording and disbursement in closing 8 a transaction for the disposition of commercial real estate. 9 (5) "Commercial real estate" means a fee simple 10 interest or other possessory estate in real property, except 11 an interest in real property that is: 12 (a) Improved with one single-family residential unit 13 or one multifamily structure containing one to four 14 residential units; 15 (b) Unimproved and the maximum permitted development 16 is one to four residential units under any restrictive 17 covenants, zoning regulations, or comprehensive plan 18 applicable to that real property; or 19 (c) Improved with single-family residential units such 20 as condominiums, townhouses, timeshares, mobile homes, or 21 houses in a subdivision that may be legally sold, leased, or 22 otherwise conveyed on a unit-by-unit basis, regardless of 23 whether these units may be a part of a larger building or 24 parcel containing more than four residential units. 25 (6) "Commission" means any fee or other compensation 26 that an owner agrees to pay a broker for licensed services as 27 specified in a brokerage agreement. 28 (7) "Commission notice" means the written notice 29 claiming a commission made by a broker under s. 475.705. 30 (8) "Days" means calendar days, but if a period would 31 end on a day other than a business day, then the last day of 2 7:42 AM 04/18/05 s2036d-ri24-ta1
Florida Senate - 2005 COMMITTEE AMENDMENT Bill No. SB 2036 Barcode 322466 1 that period shall instead be the next business day. 2 (9) "Disposition" means a voluntary conveyance or 3 transfer of the title to or other ownership interest in any 4 commercial real estate specified in a brokerage agreement. A 5 disposition does not include a transfer pursuant to a 6 foreclosure sale and does not include a lease. 7 (10) "Disputed reserved proceeds" means the portion of 8 the owner's net proceeds reserved by a closing agent under s. 9 475.709 which the owner disputes the broker's right to receive 10 such reserved proceeds under s. 475.709(5). 11 (11) "Owner" means a person that is vested with fee 12 simple title or a possessory estate in commercial real estate. 13 (12) "Owner's net proceeds" means the gross sales 14 proceeds that the owner is entitled to receive from the 15 disposition of any commercial real estate specified in a 16 brokerage agreement, less the following: 17 (a) Any money that is required to pay any encumbrance, 18 claim, or lien that has priority over the recorded commission 19 notice as provided in s. 475.715 other than an encumbrance, 20 claim, or lien that the buyer of the commercial real estate 21 authorizes to remain after the disposition. 22 (b) Any costs incurred by the owner to close the 23 disposition, including, but not limited to, real estate 24 transfer tax, title insurance premiums, ad valorem taxes and 25 assessments, and escrow fees payable by the owner pursuant to 26 an agreement with the buyer. 27 (13) "Real property" means one or more parcels or 28 tracts of land located in this state, including any 29 appurtenances and improvements. 30 475.703 Broker's lien for sales commission.-- 31 (1) A broker has a lien upon the owner's net proceeds 3 7:42 AM 04/18/05 s2036d-ri24-ta1
Florida Senate - 2005 COMMITTEE AMENDMENT Bill No. SB 2036 Barcode 322466 1 from the disposition of commercial real estate for any 2 commission earned by the broker with respect to that 3 disposition pursuant to a brokerage agreement. The lien upon 4 the owner's net proceeds pursuant to this part for a broker's 5 commission is a lien upon personal property, attaches to the 6 owner's net proceeds only, and does not attach to any interest 7 in real property. 8 (2) For purposes of this part, a commission is earned 9 on the earlier of the date that: 10 (a) An event occurs under the brokerage agreement 11 which defines when the commission is earned; or 12 (b) The owner enters into a contract for the 13 disposition of all or part of the commercial real estate 14 specified in the brokerage agreement, provided that a 15 commission would be payable to the broker pursuant to the 16 brokerage agreement if the disposition occurs under that 17 contract. 18 (3) For the purposes of this part, a commission is 19 payable at the time provided in the brokerage agreement. If 20 payment of the commission is conditioned on the occurrence of 21 an event and that event does not occur, a broker may not 22 enforce a lien for that commission under this part. 23 (4) A broker's lien for commission arising under this 24 part: 25 (a) Belongs to the broker named in the brokerage 26 agreement and not to an employee or independent contractor of 27 the broker. 28 (b) Cannot be assigned voluntarily or by operation of 29 law and may not be enforced by a person other than the broker. 30 (c) Cannot be waived before the commission is earned. 31 (d) Cannot be waived by any person other than the 4 7:42 AM 04/18/05 s2036d-ri24-ta1
Florida Senate - 2005 COMMITTEE AMENDMENT Bill No. SB 2036 Barcode 322466 1 broker, regardless of whether that person may execute and bind 2 the broker to a brokerage agreement. 3 (5) A broker shall disclose to the owner at or before 4 the time the owner executes the brokerage agreement that this 5 part creates lien rights for a commission earned by the broker 6 that are not waivable before the commission is earned by the 7 broker. A broker may not enforce a lien under this part for a 8 commission earned under a brokerage agreement for which the 9 disclosure required by this subsection was not made. A 10 disclosure in substantially the following form shall be 11 sufficient: "The Florida Commercial Real Estate Sales 12 Commission Lien Act provides that when a broker has earned a 13 commission by performing licensed services under a brokerage 14 agreement with you, the broker may claim a lien against your 15 net sales proceeds for the broker's commission. The broker's 16 lien rights under the act cannot be waived before the 17 commission is earned." 18 475.705 Contents of commission notice; delivery to 19 owner and closing agent.-- 20 (1) A commission notice made by a broker with respect 21 to a commission claimed under this part shall be in writing, 22 shall be signed and sworn to or affirmed by the broker under 23 penalty of perjury before a notary public, and shall include 24 the following: 25 (a) The name of the owner of the commercial real 26 estate who is obligated to pay the claimed commission. 27 (b) The legal description of the commercial real 28 estate. 29 (c) The name, mailing address, telephone number, and 30 license number of the broker. 31 (d) The effective date of the brokerage agreement. 5 7:42 AM 04/18/05 s2036d-ri24-ta1
Florida Senate - 2005 COMMITTEE AMENDMENT Bill No. SB 2036 Barcode 322466 1 (e) The amount of the commission claimed by the 2 broker, which may be stated in a dollar amount or may be 3 stated in the form of a formula determining the amount, such 4 as a percentage of the sales price. 5 (f) A statement under penalty of perjury that the 6 broker has read the commission notice, knows its contents, 7 believes the same to be true and correct, and makes the 8 commission claim pursuant to the brokerage agreement described 9 in the notice. 10 (g) A statement that the commission notice or a copy 11 thereof has been delivered to the owner and that the 12 commission notice may be recorded in the public records of the 13 county or counties where the commercial real estate is 14 located. 15 (h) A statement that this part provides that if the 16 owner disputes the claimed commission the owner shall notify 17 the closing agent of such dispute not later than 5 days after 18 the closing or the owner will be deemed to have confirmed the 19 commission and this part will require the closing agent to pay 20 the commission to the broker from the owner's net proceeds 21 from the disposition of the commercial real estate. 22 (2) A commission notice in substantially the following 23 form shall be sufficient for purposes of subsection (1): 24 25 BROKER'S COMMISSION NOTICE UNDER 26 FLORIDA COMMERCIAL REAL ESTATE SALES COMMISSION LIEN ACT 27 28 Notice is hereby given pursuant to the Florida Commercial Real 29 Estate Sales Commission Lien Act, part III of chapter 475, 30 Florida Statutes (the "act"), that the undersigned real estate 31 broker is entitled to receive a sales commission in the amount 6 7:42 AM 04/18/05 s2036d-ri24-ta1
Florida Senate - 2005 COMMITTEE AMENDMENT Bill No. SB 2036 Barcode 322466 1 set forth below from the owner named below pursuant to the 2 terms of a written brokerage commission agreement regarding 3 the commercial real estate described below, and the 4 undersigned broker claims a lien under the act against the 5 owner's net proceeds from the disposition of the commercial 6 real estate. The act and this commission notice do not create 7 a lien against the commercial real estate itself, but only 8 against the owner's net proceeds. 9 10 1. Name of the owner who is obligated to pay the commission: 11 _____________________________________________ 12 2. Legal description of the commercial real estate: 13 _____________________________________________ 14 3. Name, mailing address, telephone number, and Florida 15 broker license number of the undersigned broker: 16 ______________________________ 17 ______________________________ 18 ______________________________ 19 4. Effective date of the written brokerage commission 20 agreement between the owner and the broker under which the 21 commission is or will be payable: ________, ____ 22 5. Amount of commission claimed by the undersigned broker: 23 $______________, or 24 ______________ percent of sales price, or 25 [specify other formula for determination of commission 26 amount]: 27 _______________________________________________. 28 6. The undersigned broker, under penalty of perjury, hereby 29 swears or affirms that the undersigned broker has read this 30 commission notice, knows its contents and believes the same to 31 be true and correct, and that the undersigned broker is making 7 7:42 AM 04/18/05 s2036d-ri24-ta1
Florida Senate - 2005 COMMITTEE AMENDMENT Bill No. SB 2036 Barcode 322466 1 this commission claim pursuant to the written brokerage 2 commission agreement described in this commission notice. 3 7. The undersigned broker confirms that this commission 4 notice or a copy thereof has been delivered to the owner. 5 6 Signed:________(broker)___________ 7 8 Signed and sworn to or affirmed under penalty of perjury 9 before me, a notary public, this _____ day of _______, ____, 10 by ___________ 11 Signed: ________(notary public)____ 12 WARNING TO OWNER: The act provides that if you dispute the 13 commission claimed in this commission notice, you must notify 14 the closing agent of the dispute no later than 5 days after 15 the closing. If you fail to notify the closing agent before 16 that date that you dispute the commission, you will be deemed 17 to have confirmed the commission and the act will require the 18 closing agent to pay the commission to the broker from your 19 net proceeds from the disposition of the commercial real 20 estate. 21 22 This commission notice may be recorded in the public records 23 of the county or counties where the commercial real estate is 24 located. 25 (3) Subject to subsection (4), if a broker wishes to 26 enforce a lien for a commission under this part, the broker 27 shall, within 30 days after a commission is earned by the 28 broker pursuant to s. 475.703(2) and at least 1 day before the 29 closing, deliver a copy of the commission notice to: 30 (a) The owner of the commercial real estate specified 31 in the brokerage agreement. 8 7:42 AM 04/18/05 s2036d-ri24-ta1
Florida Senate - 2005 COMMITTEE AMENDMENT Bill No. SB 2036 Barcode 322466 1 (b) The closing agent designated to close the 2 transaction for the disposition of the commercial real estate, 3 if the broker then knows the identity of the closing agent. If 4 the identity of the closing agent thereafter becomes known to 5 the broker, then the broker shall deliver a copy of the 6 commission notice to the closing agent within 3 days after the 7 broker acquires such knowledge and at least 1 day before the 8 closing. 9 (4) Except as provided in this subsection, a broker 10 who fails to deliver a copy of a commission notice as required 11 under subsection (3) within the period specified therein may 12 not enforce a lien for the commission under this part. If a 13 broker fails to deliver a copy of the commission notice within 14 said period solely because the owner entered into a contract 15 for the disposition of the commercial real estate without the 16 knowledge of the broker, the broker may enforce a lien for the 17 commission under this part if: 18 (a) The copy of the commission notice is delivered to 19 the owner and the closing agent before the closing agent 20 disburses the owner's net proceeds to the owner. 21 (b) The broker executes and delivers to the closing 22 agent a sworn affidavit stating that the copy of the 23 commission notice was not delivered within the time period 24 specified in subsection (3) solely because the owner entered 25 into a contract for the disposition of the commercial real 26 estate without the knowledge of the broker. 27 28 Notwithstanding the provisions of this subsection, a broker 29 who fails to deliver a copy of a commission notice to the 30 owner and the closing agent before the disbursement of the 31 owner's net proceeds may not enforce a lien for the commission 9 7:42 AM 04/18/05 s2036d-ri24-ta1
Florida Senate - 2005 COMMITTEE AMENDMENT Bill No. SB 2036 Barcode 322466 1 under this part, and the delivery of a copy of a commission 2 notice after such disbursement is ineffective under this part. 3 475.707 Recording commission notice; effectiveness.-- 4 (1) After a broker delivers the copies of a commission 5 notice as provided in s. 475.705, the broker may record the 6 commission notice in the public records maintained by the 7 clerk of court in the county or counties in which the 8 commercial real estate is located. 9 (a) Subject to the limitation in paragraph (b), the 10 broker's lien created by this part against the owner's net 11 proceeds is perfected by such recording of the commission 12 notice and takes priority pursuant to this part as of the date 13 of the recording of the commission notice. The priority of the 14 lien does not relate back to the date of the brokerage 15 agreement. 16 (b) The recording of the commission notice shall not 17 constitute constructive notice to a closing agent unless the 18 commission notice has been of record for at least 60 days. 19 (2) A recorded commission notice is effective under 20 this part only with respect to dispositions made by the owner 21 named in the commission notice, and, after the recordation of 22 a deed from the owner conveying the commercial real estate 23 specified in the commission notice to a bona fide purchaser 24 for value, the commission notice is ineffective with respect 25 to any subsequent dispositions of that commercial real estate. 26 (3) A commission notice recorded under this part 27 expires 1 year after the date of recording, unless the 28 brokerage agreement remains effective after the expiration 29 date of the commission notice and the broker records an 30 extension notice in the same public records within the last 60 31 days before such expiration date. An extension notice shall 10 7:42 AM 04/18/05 s2036d-ri24-ta1
Florida Senate - 2005 COMMITTEE AMENDMENT Bill No. SB 2036 Barcode 322466 1 refer to the recording information of the original commission 2 notice, shall state that the brokerage agreement remains 3 effective, and shall include the information and be executed 4 in the manner required by s. 475.705(1) for the original 5 commission notice. A timely recorded extension notice shall 6 extend the expiration date of the original recorded commission 7 notice by 1 additional year. Successive extension notices may 8 be recorded for so long as the brokerage agreement remains 9 effective between the broker and the owner. Within 10 days 10 after recording an extension notice the broker shall deliver a 11 copy thereof to the owner. 12 (4) The delivery or recording of a commission notice 13 or the enforcement of a commission claim by a broker under 14 this part does not relieve the owner from the owner's 15 obligation to close a disposition transaction for any 16 commercial real estate. 17 (5) Whenever a commission notice is recorded and a 18 condition or event occurs or fails to occur that would 19 preclude the broker from receiving the claimed commission 20 under the terms of the brokerage agreement, including the 21 filing of a commission notice in a manner that does not comply 22 with this part, the broker shall, within 7 days following 23 demand by the owner, record a written release of the 24 commission notice in the public records of the county where 25 the commission notice was recorded. 26 (6) If a broker records a commission notice pursuant 27 to this section and the claimed commission is paid or the 28 commission notice is otherwise discharged or satisfied 29 pursuant to this part, the broker shall, within 7 days after 30 the commission is paid or the commission notice is otherwise 31 discharged or satisfied, record a written release of the 11 7:42 AM 04/18/05 s2036d-ri24-ta1
Florida Senate - 2005 COMMITTEE AMENDMENT Bill No. SB 2036 Barcode 322466 1 commission notice in the public records of the county where 2 the commission notice was recorded. 3 475.709 Duties of closing agent; reservation of 4 owner's net proceeds.-- 5 (1)(a) The closing agent shall reserve from the 6 owner's net proceeds an amount equal to the commission claimed 7 by the broker in the commission notice if, before the closing 8 agent disburses the owner's net proceeds from the closing of a 9 disposition of commercial real estate: 10 1. A commission notice pertaining to the commercial 11 real estate is delivered to the closing agent in accordance 12 with s. 475.705; 13 2. A commission notice pertaining to the commercial 14 real estate has been recorded for at least 60 days pursuant to 15 s. 475.707 and has not expired or been released or canceled as 16 provided in this part; or 17 3. The closing agent has actual knowledge of a 18 commission notice pertaining to the commercial real estate 19 that has been recorded pursuant to s. 475.707 and has not 20 expired or been released or canceled as provided in this part. 21 (b) If the owner's net proceeds are insufficient to 22 pay the full amount of the claimed commission, the closing 23 agent shall reserve the entire amount of the owner's net 24 proceeds. The closing agent shall release the reserved 25 proceeds only in accordance with the provisions of this part. 26 (2)(a) The closing agent designated to close a 27 transaction for the disposition of commercial real estate may 28 require the owner of the commercial real estate to deliver a 29 sworn affidavit identifying the commercial real estate and 30 disclosing to the closing agent: 31 1. Whether the owner is a party to any brokerage 12 7:42 AM 04/18/05 s2036d-ri24-ta1
Florida Senate - 2005 COMMITTEE AMENDMENT Bill No. SB 2036 Barcode 322466 1 agreement under which any broker or brokers may have a right 2 to claim a commission from the disposition of the commercial 3 real estate. 4 2. The name, mailing address, and telephone number of 5 any brokers who may have a right to claim a commission, if 6 known to the owner. 7 3. The amount of any and all commissions that may be 8 claimed under any brokerage agreement disclosed in the owner's 9 affidavit, to the best of the owner's knowledge and belief. 10 4. Whether the owner confirms or disputes the amount 11 of any commission claimed from the disposition of the 12 commercial real estate as disclosed in the owner's affidavit. 13 (b) If the closing agent receives an affidavit from 14 the owner under this subsection disclosing that any commission 15 may be claimed from the disposition of the commercial real 16 estate, regardless of whether the owner confirms or disputes 17 the commission, the closing agent shall reserve from the 18 owner's net proceeds an amount equal to the total commission 19 amount disclosed by the owner in the affidavit. Upon request 20 by a broker who has a brokerage agreement with the owner 21 covering the commercial real estate identified in the owner's 22 affidavit, the closing agent shall deliver a copy of the 23 affidavit to the broker. If the owner's net proceeds are 24 insufficient to pay the full amount of the commission so 25 disclosed, the closing agent shall reserve the entire amount 26 of the owner's net proceeds. If the owner's affidavit 27 discloses a commission amount that is different from the 28 commission amount required to be reserved under subsection 29 (1), the closing agent shall reserve the greater of the two 30 commission amounts. The closing agent shall release the 31 reserved proceeds only in accordance with the provisions of 13 7:42 AM 04/18/05 s2036d-ri24-ta1
Florida Senate - 2005 COMMITTEE AMENDMENT Bill No. SB 2036 Barcode 322466 1 this part. 2 (3) If the provisions of subsection (1) do not require 3 the closing agent to reserve against the owner's net proceeds 4 on account of a commission notice pertaining to the commercial 5 real estate, and if the closing agent receives an owner's 6 affidavit pursuant to subsection (2) stating that the owner is 7 not a party to any brokerage agreement under which any 8 commission may be claimed from the disposition of the 9 commercial real estate, the closing agent has no duty under 10 this part to reserve any money or property for a commission 11 from the owner's net proceeds from the disposition of the 12 commercial real estate. 13 (4) If the closing agent determines that the owner's 14 net proceeds from a disposition of commercial real estate are 15 insufficient to pay the full amount of the commission claimed 16 in a commission notice or disclosed in an owner's affidavit, 17 the closing agent shall, within 3 days after making that 18 determination but no later than the closing of the 19 disposition, notify the owner and the broker of the 20 determination. The closing agent's determination that the 21 owner's net proceeds are insufficient under this part, 22 however, does not relieve the owner from the owner's 23 contractual obligations under the brokerage agreement to pay 24 the full commission owing to the broker. 25 (5) If the owner confirms that a commission is payable 26 to the broker, at the closing of the disposition of the 27 commercial real estate the closing agent shall release to the 28 broker the confirmed amount of the commission from the 29 reserved proceeds. A settlement statement executed by the 30 owner and showing the payment of a commission to the broker is 31 confirmation by the owner of the commission amount shown on 14 7:42 AM 04/18/05 s2036d-ri24-ta1
Florida Senate - 2005 COMMITTEE AMENDMENT Bill No. SB 2036 Barcode 322466 1 the settlement statement. If the owner disputes the broker's 2 right to receive all or any portion of the claimed commission, 3 the closing agent shall release to the broker from the 4 reserved proceeds only the undisputed portion of the 5 commission, if any. Until the rights of the owner and the 6 broker with respect to the disputed reserved proceeds are 7 determined pursuant to s. 475.711 or s. 475.713 or the owner 8 and the broker otherwise agree in writing, the closing agent 9 shall not release the disputed reserved proceeds to any person 10 other than to deposit the same in the registry of the court 11 having jurisdiction of the dispute. 12 (6) The commission claimed in the commission notice 13 shall be deemed confirmed by the owner and the closing agent 14 shall release the reserved proceeds to the broker, if the 15 closing agent is required pursuant to subsection (1) to 16 reserve any or all of the owner's net proceeds, and if: 17 (a) Five days have passed after the closing. 18 (b) The owner has neither confirmed nor disputed the 19 claimed commission to the closing agent. 20 (c) The closing agent receives reasonably satisfactory 21 evidence that the broker delivered a copy of the commission 22 notice to the owner in accordance with s. 475.705. 23 (7) If the owner's net proceeds consist in whole or in 24 part of a purchase-money note, and if the money portion of the 25 owner's net proceeds is insufficient to pay the full amount of 26 the commission claimed, the broker's lien under this part for 27 the portion of the commission not paid from the money proceeds 28 shall attach to the purchase-money note and any security 29 therefor, and the closing agent shall reserve and release the 30 purchase-money note in accordance with this part in the same 31 manner as the money portion of the reserved proceeds. If the 15 7:42 AM 04/18/05 s2036d-ri24-ta1
Florida Senate - 2005 COMMITTEE AMENDMENT Bill No. SB 2036 Barcode 322466 1 owner and the broker are unable to agree within 5 days after 2 the closing regarding the closing agent's release of the 3 purchase-money note, the closing agent shall interplead the 4 purchase-money note along with any reserved proceeds in 5 accordance with s. 475.711. 6 (8) If the disposition of the commercial real estate 7 is part of a like-kind exchange by the owner which is deferred 8 from federal income tax under section 1031 of the Internal 9 Revenue Code of 1986, as amended, and if all of the owner's 10 net proceeds in excess of undisputed commissions shall be 11 delivered to a third party in order to qualify the disposition 12 for such tax deferral treatment, the owner may substitute 13 other cash, a surety bond, an unconditional letter of credit, 14 or other liquid security acceptable to the broker in lieu of 15 any disputed reserved proceeds held by the closing agent under 16 this section or deposited in the court registry in accordance 17 with s. 475.711. 18 (9) Upon request of the closing agent or the owner, 19 any broker who has recorded a commission notice under s. 20 475.707 shall submit a satisfaction or release of the 21 commission notice in recordable form to the closing agent to 22 be held in escrow pending the closing and the closing agent's 23 release to the broker of the portion of the owner's net 24 proceeds reserved by the closing agent under this section. The 25 closing agent is authorized to deduct from the reserved 26 proceeds payable to the broker the cost of recording the 27 satisfaction or release of the commission notice. 28 (10) Neither the closing agent's requirement for an 29 owner's affidavit pursuant to subsection (2), nor the closing 30 agent's reservation of any portion of an owner's net proceeds 31 pursuant to subsections (1) or (2), shall relieve the owner of 16 7:42 AM 04/18/05 s2036d-ri24-ta1
Florida Senate - 2005 COMMITTEE AMENDMENT Bill No. SB 2036 Barcode 322466 1 the owner's obligation to close the transaction for the 2 disposition of the commercial real estate, including, without 3 limitation, any obligation of the owner to the buyer under the 4 purchase and sale contract to discharge mortgages, liens, or 5 encumbrances against the commercial real estate which were 6 recorded after the commission notice and therefore are not 7 subtracted from gross sales proceeds when computing the 8 owner's net proceeds under s. 475.719. 9 (11) A closing agent is not liable to the owner, the 10 broker, or any other person in any civil action for any action 11 taken by the closing agent to comply with the provisions of 12 this part. 13 (12) No provision of this part shall require a closing 14 agent to serve involuntarily more than 5 days after a closing 15 as an escrow agent or stakeholder for any moneys or other 16 property that are disputed by the owner and the broker under 17 the provisions of this part. 18 475.711 Interpleader or other proceedings; deposit of 19 reserved proceeds in court registry; discharge of closing 20 agent from further liability.-- 21 (1) The closing agent shall, by interpleader action or 22 other legal proceeding, seek adjudication of the rights of the 23 parties with respect to disputed reserved proceeds by the 24 county court or circuit court, whichever may have jurisdiction 25 of controversies in the amount of the disputed reserved 26 proceeds, in a county where all or a portion of the commercial 27 real estate is located if, after the closing of a transaction 28 for the disposition of the commercial real estate: 29 (a) The closing agent has reserved all or a portion of 30 the owner's net proceeds pursuant to s. 475.709 and the owner 31 disputes the release to the broker of all or any portion of 17 7:42 AM 04/18/05 s2036d-ri24-ta1
Florida Senate - 2005 COMMITTEE AMENDMENT Bill No. SB 2036 Barcode 322466 1 the reserved proceeds. 2 (b) The owner and the broker have not agreed in 3 writing, within 5 days after the closing, regarding the 4 closing agent's release of the disputed reserved proceeds. 5 (c) Neither the owner nor the broker have commenced a 6 civil action to determine the rights of the parties with 7 respect to the disputed reserved proceeds. 8 (2) Unless otherwise agreed to by the owner and the 9 broker in writing, the closing agent shall deposit the net 10 amount of disputed reserved proceeds in the registry of the 11 court having jurisdiction of any legal action or proceeding to 12 determine the rights of the parties in the disputed reserved 13 proceeds, whether commenced by the closing agent under 14 subsection (1) or commenced by the owner or the broker under 15 s. 475.713 or otherwise. The closing agent shall determine the 16 net amount of disputed reserved proceeds deposited in the 17 court registry by deducting from the disputed reserved 18 proceeds: 19 (a) Any costs incurred by the closing agent to 20 commence such action or proceeding, or to appear in any such 21 action or proceeding commenced by the owner or the broker, 22 including reasonable attorney's fees. 23 (b) The costs of recording the affidavit described in 24 subsection (3) if any commission notice has been recorded. 25 (c) The service charges of the clerk of court under s. 26 28.24 for receiving the net amount of such disputed reserved 27 proceeds into the registry of the court. 28 (3) If a commission notice has been recorded in the 29 public records of the county or counties where the commercial 30 real estate is located, upon depositing the net disputed 31 reserved proceeds with the clerk of court pursuant to 18 7:42 AM 04/18/05 s2036d-ri24-ta1
Florida Senate - 2005 COMMITTEE AMENDMENT Bill No. SB 2036 Barcode 322466 1 subsection (2), the closing agent shall execute and record an 2 affidavit referring to the recorded commission notice and 3 stating that the net disputed reserved proceeds have been so 4 deposited in accordance with this part. The recording of the 5 affidavit shall operate to release the recorded commission 6 notice. 7 (4) If a closing agent deposits the net disputed 8 reserved proceeds with the clerk of court pursuant to 9 subsection (2), the closing agent is discharged from any 10 further liability or responsibility concerning the disputed 11 reserved proceeds. 12 475.713 Civil action concerning commission; order to 13 show cause; hearing; release of proceeds; award of costs and 14 attorney's fees.-- 15 (1) If a commission notice claiming a commission is 16 delivered to an owner pursuant to s. 475.705 and the owner 17 disputes the claimed commission, the owner or the broker may 18 file a civil action concerning the commission claim in the 19 county court or circuit court, whichever has jurisdiction of 20 controversies in the amount of the claimed commission, of the 21 county where the commercial real estate or a portion of the 22 commercial real estate is located. 23 (2) In a civil action by the owner, at the time the 24 summons is issued or at any time before the complaint is 25 answered by the broker, the owner may apply to the court for 26 an order directing the broker to appear before the court at a 27 time not earlier than 7 days or later than 15 days after the 28 date of service of the motion and order on the broker to show 29 cause why the commission claim should not be dismissed. The 30 motion must state the grounds upon which relief is sought and 31 must be supported by the affidavit of the owner setting forth 19 7:42 AM 04/18/05 s2036d-ri24-ta1
Florida Senate - 2005 COMMITTEE AMENDMENT Bill No. SB 2036 Barcode 322466 1 a concise statement of the facts upon which the motion is 2 based. The order to show cause shall clearly state that if the 3 broker fails to appear at the time and place specified in the 4 order, the broker's claim of lien against the owner's net 5 proceeds under this part shall be released, with prejudice, 6 and the broker shall be ordered to pay the costs incurred by 7 the owner and the closing agent, including reasonable 8 attorney's fees. 9 (3) The court shall issue an order releasing the 10 broker's claim of lien against the owner's net proceeds from 11 such disposition, discharging any commission notice that may 12 be have been recorded, ordering the release to the owner of 13 the disputed reserved proceeds, and awarding costs and 14 reasonable attorney's fees to the owner to be paid by the 15 broker if, following a hearing, the court determines that the 16 owner is not a party to a brokerage agreement that will result 17 in the owner being obligated to pay the broker the claimed 18 commission or any portion thereof with respect to the 19 disposition of the commercial real estate identified in the 20 commission notice. If the court determines that the owner is a 21 party to a brokerage agreement that will result in the owner 22 being obligated to pay the broker the claimed commission or 23 any portion thereof with respect to the disposition of the 24 commercial real estate identified in the commission notice, 25 the court shall issue an order so stating, ordering the 26 release to the broker of the disputed reserved proceeds or 27 such portion thereof to which the court determines that the 28 broker is entitled, and awarding costs and reasonable 29 attorney's fees to the broker to be paid by the owner. Such 30 orders are final judgments. 31 (4) A certified copy of any order issued by the court 20 7:42 AM 04/18/05 s2036d-ri24-ta1
Florida Senate - 2005 COMMITTEE AMENDMENT Bill No. SB 2036 Barcode 322466 1 pursuant to subsection (3) discharging a recorded commission 2 notice shall be recorded at the expense of the broker in the 3 public records where the commission notice was recorded, and 4 such order shall operate as a cancellation of the recorded 5 commission notice. 6 (5)(a) In a civil action commenced by the owner or the 7 broker under this section or in an interpleader action or 8 other proceeding commenced by the closing agent under s. 9 475.711, the owner or the broker that is not the prevailing 10 party shall be required to pay: 11 1. The costs and reasonable attorney's fees incurred 12 in the action by the prevailing party. 13 2. The costs and reasonable attorney's fees incurred 14 in the action by the closing agent. 15 3. The amount of any costs, recording charges, and 16 service charges of the clerk of court that were deducted from 17 the disputed reserved proceeds under s. 475.711(2) in 18 determining the net amount thereof deposited into the registry 19 of the court. 20 (b) If the court determines that neither the owner nor 21 the broker is the prevailing party, the amounts set forth in 22 subparagraphs 1.and 2. of this subsection shall be divided 23 equally between and paid by the owner and the broker. 24 (6) Proceedings conducted pursuant to this section 25 shall not affect rights and remedies otherwise available to 26 the owner or the broker under other applicable law. 27 475.715 Priority of recorded commission notice.--All 28 statutory liens, consensual liens, mortgages, deeds of trust, 29 assignments of rents, and other encumbrances, including all 30 advances or charges made or accruing thereunder, whether 31 voluntary or obligatory, and all modifications, extensions, 21 7:42 AM 04/18/05 s2036d-ri24-ta1
Florida Senate - 2005 COMMITTEE AMENDMENT Bill No. SB 2036 Barcode 322466 1 renewals, and replacements thereof, recorded prior to the 2 recording of a commission notice pursuant to the provisions of 3 s. 475.707, have priority over the commission notice, and the 4 amount required to discharge such prior recorded liens shall 5 be subtracted from gross sales proceeds in computing the 6 owner's net proceeds unless the buyer permits the same to 7 remain a lien against the title to the commercial real estate. 8 A prior recorded lien includes, without limitation, a valid 9 construction lien claim that is recorded after the recording 10 of the broker's commission notice but which relates back to a 11 notice of commencement recorded under s. 713.13 prior to the 12 recording date of the broker's commission notice. 13 475.717 Service of notice.--Notices to be delivered to 14 a party pursuant to this part other than service of process as 15 required in civil actions shall be by service of process, by 16 registered or certified mail with return receipt requested, or 17 by personal or electronic delivery and obtaining evidence of 18 delivery in the form of a receipt or other paper or electronic 19 acknowledgment by the party to whom the notice is delivered. 20 Delivery is effective at the time of personal service, 21 personal or electronic delivery, or 3 days following deposit 22 in the mail as required by this section. Notice to a broker or 23 owner may be given to the address of the broker or owner that 24 is contained in the brokerage agreement or such other address 25 as is contained in a written notice from the broker or owner 26 to the party giving the notice. If no address is provided in 27 the brokerage agreement, the notice to the broker may be given 28 to the broker's address contained in the commission notice. 29 Notice to a closing agent shall be addressed to the individual 30 responsible for the closing if the person sending the notice 31 knows that individual's name. 22 7:42 AM 04/18/05 s2036d-ri24-ta1
Florida Senate - 2005 COMMITTEE AMENDMENT Bill No. SB 2036 Barcode 322466 1 475.719 Buyer's broker.--As used in this section, the 2 term "buyer's broker" means a broker that is entitled to 3 receive payment from the buyer of commercial real estate of 4 any fee or other compensation for licensed services, as 5 specified in a written contract made between the buyer and the 6 broker on or after the effective date of this act relating to 7 the buyer's purchase of the commercial real estate. 8 (1) A written contract between a buyer and a buyer's 9 broker for the payment by the buyer of any fee or other 10 compensation to the buyer's broker for licensed services 11 relating to the sale or disposition of commercial real estate 12 to the buyer is not a brokerage agreement with the owner under 13 this part, and the buyer's broker is not entitled under this 14 part to record any commission notice, to claim any lien 15 against commercial real estate, or to claim any lien against 16 the owner's net proceeds from the sale or disposition of 17 commercial real estate. 18 (2) If an owner enters into a written contract with a 19 buyer for the sale or disposition of any commercial real 20 estate that will entitle the buyer's broker to receive a fee 21 or other compensation from the buyer under the terms of the 22 buyer's broker's written contract with the buyer, the buyer's 23 broker may give notice of the buyer's broker's right to 24 receive such payment to the closing agent, the owner, the 25 buyer, or any other party to the sale or disposition or the 26 financing thereof, provided that such notice may be given 27 without violating any confidentiality provisions contained in 28 either such written contract. 29 (3) No such notice given by the buyer's broker 30 pursuant to subsection (2) shall constitute a tortious 31 interference with the sale or disposition or financing of the 23 7:42 AM 04/18/05 s2036d-ri24-ta1
Florida Senate - 2005 COMMITTEE AMENDMENT Bill No. SB 2036 Barcode 322466 1 commercial real estate, except this section shall not affect 2 the rights and remedies otherwise available to the owner, the 3 buyer, or the buyer's broker under other applicable law. 4 Section 2. Part IV of chapter 475, Florida Statutes, 5 consisting of sections 475.800, 475.801, 475.803, 475.805, 6 475.807, 475.809, and 475.811, is created to read: 7 475.800 Short title.--Sections 475.800-475.811 may be 8 cited as the "Commercial Real Estate Leasing Commission Lien 9 Act." 10 475.801 Definitions.--As used in this part: 11 (1) "Automatic renewal commission" means a renewal 12 commission for which the brokerage agreement does not 13 expressly require the broker to perform any additional 14 services in order to receive the renewal commission. 15 (2) "Broker" has the same meaning as in s. 475.01. 16 (3) "Brokerage agreement" means a written contract, 17 entered into on or after the effective date of this act, 18 between an owner of commercial real estate and a broker that 19 obligates the owner to pay a commission to the broker for 20 licensed services provided by the broker relating to the 21 leasing of the commercial real estate as specified in the 22 contract. 23 (4) "Commercial real estate" means a fee simple 24 interest or other possessory estate in real property except an 25 interest in real property that is: 26 (a) Improved with one single-family residential unit 27 or one multifamily structure containing one to four 28 residential units; 29 (b) Unimproved and the maximum permitted development 30 is one to four residential units under any restrictive 31 covenants, zoning regulations, or comprehensive plan 24 7:42 AM 04/18/05 s2036d-ri24-ta1
Florida Senate - 2005 COMMITTEE AMENDMENT Bill No. SB 2036 Barcode 322466 1 applicable to that real property; or 2 (c) Improved with single-family residential units such 3 as condominiums, townhouses, timeshares, mobile homes, or 4 houses in a subdivision that may be legally sold, leased, or 5 otherwise conveyed on a unit-by-unit basis, regardless of 6 whether these units may be a part of a larger building or 7 parcel containing more than four residential units. 8 (5) "Commission" means any fee or other compensation 9 that an owner agrees to pay a broker for licensed services as 10 specified in a brokerage agreement. 11 (6) "Days" means calendar days, but if a period would 12 end on a day other than a business day, the last day of that 13 period shall instead be the next business day. 14 (7) "Lease" means a written agreement creating a 15 relationship of landlord and tenant with respect to commercial 16 real estate, such that the tenant acquires from the landlord 17 the right to possess the commercial real estate for a 18 specified period of time. 19 (8) "Lien notice" means the written notice of lien 20 made by a broker claiming a commission under s. 745.805. 21 (9) "Owner" means a person that is vested with fee 22 simple title or a possessory estate, including a leasehold, in 23 commercial real estate that is the subject of a lease. For 24 purposes of this part, the owner obligated to pay a commission 25 under a brokerage agreement may be a landlord or a tenant. 26 (10) "Real property" means one or more parcels or 27 tracts of land located in this state, including any 28 appurtenances and improvements. 29 (11) "Renewal commission" means an additional 30 commission that may become payable to a broker under a 31 brokerage agreement if a lease subject to that brokerage 25 7:42 AM 04/18/05 s2036d-ri24-ta1
Florida Senate - 2005 COMMITTEE AMENDMENT Bill No. SB 2036 Barcode 322466 1 agreement is later renewed or is later modified to expand the 2 leased premises or extend the lease term. 3 475.803 Broker's lien for leasing commission.-- 4 (1) A broker has a lien upon the owner's interest in 5 commercial real estate for any commission earned by the broker 6 pursuant to a brokerage agreement with respect to a lease of 7 the commercial real estate. If the owner obligated to pay the 8 commission is the landlord, the broker's lien attaches to the 9 landlord's interest in the commercial real estate identified 10 in the brokerage agreement but not to the tenant's leasehold 11 estate. If the owner obligated to pay the commission is the 12 tenant, the broker's lien attaches to the tenant's leasehold 13 estate but not to the landlord's interest in the commercial 14 real estate. 15 (2) For purposes of this part, a commission other than 16 a renewal commission is earned on the earlier of the date 17 that: 18 (a) An event occurs that, under the brokerage 19 agreement, defines when the commission is earned; or 20 (b) The owner enters into a lease of all or part of 21 the commercial real estate specified in the brokerage 22 agreement, provided that a commission would be payable to the 23 broker pursuant to the brokerage agreement for that lease. 24 (3) For the purposes of this part, a renewal 25 commission with respect to a lease renewal or lease 26 modification is deemed earned when the broker performs all 27 additional services relating to the lease renewal or lease 28 modification which are expressly required by the brokerage 29 agreement. If the brokerage agreement does not expressly 30 require the broker to perform any additional services in order 31 to receive the renewal commission, the renewal commission is 26 7:42 AM 04/18/05 s2036d-ri24-ta1
Florida Senate - 2005 COMMITTEE AMENDMENT Bill No. SB 2036 Barcode 322466 1 an automatic renewal commission and is deemed earned when the 2 broker first earned a commission for that lease. 3 (4) For purposes of this part, a commission is payable 4 at the time provided in the brokerage agreement. If payment of 5 the commission is conditioned on the occurrence of an event 6 and that event does not occur, a broker may not enforce a lien 7 for that commission under this part. 8 (5) A broker's lien for commission arising under this 9 part: 10 (a) Belongs to the broker named in the brokerage 11 agreement and not to an employee or independent contractor of 12 the broker. 13 (b) Cannot be assigned voluntarily or by operation of 14 law and may not be enforced by a person other than the broker. 15 (c) Cannot be waived before the commission is earned. 16 (d) Cannot be waived by any person other than the 17 broker, regardless of whether that person may execute and bind 18 the broker to a brokerage agreement. 19 (6) A broker shall disclose to the owner at or before 20 the time the owner executes the brokerage agreement that this 21 part creates lien rights for a commission earned by the broker 22 that are not waivable before the commission is earned by the 23 broker. A broker may not enforce a lien under this part for a 24 commission earned under a brokerage agreement for which the 25 disclosure required by this subsection was not made. A 26 disclosure in substantially the following form shall be 27 sufficient: "The Florida Commercial Real Estate Leasing 28 Commission Lien Act provides that when a broker has earned a 29 commission by performing licensed services under a brokerage 30 agreement with you, the broker may claim a lien against your 31 interest in the property for the broker's commission. The 27 7:42 AM 04/18/05 s2036d-ri24-ta1
Florida Senate - 2005 COMMITTEE AMENDMENT Bill No. SB 2036 Barcode 322466 1 broker's lien rights under the act cannot be waived before the 2 commission is earned." 3 475.805 Contents of lien notice.-- 4 (1) A lien notice made by a broker with respect to a 5 commission claimed under this part shall be in writing, shall 6 be signed and sworn to or affirmed by the broker under penalty 7 of perjury before a notary public, and shall include the 8 following: 9 (a) The name of the owner of the commercial real 10 estate who is obligated to pay the claimed commission. 11 (b) A statement whether the owner obligated to pay the 12 commission is the landlord or the tenant under the lease for 13 which the commission is claimed. 14 (c) The name of the person owning the fee simple 15 interest in the commercial real estate, if other than the 16 owner obligated to pay the commission. 17 (d) The legal description of the commercial real 18 estate. 19 (e) The name, mailing address, telephone number, and 20 license number of the broker. 21 (f) The effective date of the brokerage agreement. 22 (g) The amount of the commission claimed by the 23 broker, which may be stated in a dollar amount or may be 24 stated in the form of a formula determining the amount, such 25 as a percentage of the rents payable under the lease. 26 (h) A description of the lease sufficient to identify 27 the lease for which the commission is claimed, including, if 28 then known to the broker, the names of the landlord and tenant 29 under the lease, the date of the lease, and the identification 30 of the leased premises. 31 (i) A statement of whether the broker is claiming an 28 7:42 AM 04/18/05 s2036d-ri24-ta1
Florida Senate - 2005 COMMITTEE AMENDMENT Bill No. SB 2036 Barcode 322466 1 automatic renewal commission and the amount of such automatic 2 renewal commission or the formula for computing the same. 3 (j) A statement under penalty of perjury that the 4 broker has read the lien notice, knows its contents, believes 5 the same to be true and correct, and makes the commission 6 claim pursuant to the brokerage agreement described in the 7 lien notice. 8 (2) A lien notice in substantially the following form 9 shall be sufficient for purposes of subsection (1): 10 11 BROKER'S COMMISSION LIEN NOTICE UNDER 12 FLORIDA COMMERCIAL REAL ESTATE LEASING COMMISSION LIEN ACT 13 14 Notice is hereby given, pursuant to the Florida Commercial 15 Real Estate Leasing Commission Lien Act, part IV of chapter 16 475, Florida Statutes (the "act"), that the undersigned real 17 estate broker is entitled to receive a leasing commission from 18 the owner named below pursuant to the terms of a written 19 brokerage commission agreement regarding a lease of the 20 commercial real estate described below, and the undersigned 21 broker claims a lien under the act against the owner's 22 interest in the commercial real estate in the amount set forth 23 below. 24 1. Name of the owner who is obligated to pay the commission: 25 _____________________________________________ 26 2. (Check one:) The owner obligated to pay the commission is: 27 [ ] the landlord under the lease. 28 [ ] the tenant under the lease. 29 3. Name of the person owing the fee simple interest in the 30 commercial real estate, if other than the owner who is 31 obligated to pay the commission: 29 7:42 AM 04/18/05 s2036d-ri24-ta1
Florida Senate - 2005 COMMITTEE AMENDMENT Bill No. SB 2036 Barcode 322466 1 _____________________________________________ 2 4. Legal description of the commercial real estate: 3 _____________________________________________ 4 5. Name, mailing address, telephone number, and Florida 5 broker license number of the undersigned broker: 6 ______________________________ 7 ______________________________ 8 ______________________________ 9 6. Effective date of the written brokerage commission 10 agreement between the owner and the broker under which the 11 commission is or will be payable: _______, ____ 12 7. Amount of commission claimed by the undersigned broker: 13 $______________, or 14 ______________ percent of rents payable under lease, or 15 [specify other formula for determination of commission 16 amount]:_____________________________________________. 17 8. The lease for which the commission is claimed is described 18 as follows [provide all information known to the broker] : 19 Name of landlord: _________________________ 20 Name of tenant: ___________________________ 21 Date of lease: ______________, ____________ 22 Leased premises: __________________________ 23 9. Automatic renewal commissions (check yes or no): Is the 24 undersigned broker claiming a commission that may become 25 payable if the lease is later renewed or modified to expand 26 the leased premises or to extend the lease term, but the 27 written brokerage commission agreement does not expressly 28 require the broker to perform any additional services in order 29 to receive this later commission? 30 [ ] Yes 31 [ ] No 30 7:42 AM 04/18/05 s2036d-ri24-ta1
Florida Senate - 2005 COMMITTEE AMENDMENT Bill No. SB 2036 Barcode 322466 1 If yes, specify the amount of such later commission or the 2 formula for computing the later commission: 3 ____________________________________________________________ 4 10. The expiration date of this lien notice is 2 years after 5 the date of recording, unless the answer to paragraph 9 is 6 yes, in which case the expiration date of this lien notice for 7 the commission described in paragraph 9 is 10 years after the 8 date of recording. 9 11. The undersigned broker, under penalty of perjury, hereby 10 swears or affirms that the undersigned broker has read this 11 lien notice, knows its contents and believes the same to be 12 true and correct, and that the undersigned broker is making 13 this commission claim pursuant to the written brokerage 14 commission agreement described in this lien notice. 15 Signed: ________(broker)___________ 16 17 Signed and sworn to or affirmed under penalty of perjury 18 before me, a notary public, this _____ day of _______, ____, 19 by ___________ 20 Signed: ________(notary public)____ 21 22 475.807 Recording lien notice; effectiveness.-- 23 (1)(a) After a commission is earned under this part, 24 the broker may record a lien notice in the public records 25 maintained by the clerk of court in the county or counties in 26 which the commercial real estate is located. The lien notice 27 shall be recorded no later than the earlier of: 28 1. Ninety days after the tenant takes possession of 29 the leased premises or, in the case of a renewal commission 30 that requires the broker to perform additional services as 31 provided in s. 475.803(3), 90 days after the broker performs 31 7:42 AM 04/18/05 s2036d-ri24-ta1
Florida Senate - 2005 COMMITTEE AMENDMENT Bill No. SB 2036 Barcode 322466 1 the additional services required for the renewal commission; 2 or 3 2. The date on which the owner who is obligated to pay 4 the commission records in the public records a deed or 5 assignment transferring the owner's interest in the commercial 6 real estate to a bona fide purchaser for value. 7 (b) A broker who fails to record a lien notice within 8 the time period prescribed by this section may not enforce a 9 lien for the claimed commission under this part, and a lien 10 notice that is recorded outside of the time period prescribed 11 by this section is void. 12 (2) Within 7 days after recording the lien notice, the 13 broker shall deliver a copy of the lien notice to the owner 14 obligated to pay the claimed commission. 15 (3) The broker's lien created by this part against the 16 commercial real estate is perfected by such recording of the 17 lien notice and takes priority under this part as of the date 18 of the recording of the lien notice. The priority of the lien 19 notice does not relate back to the date of the brokerage 20 agreement. 21 (4) If the commission is to be paid in installments 22 and any of those installments are due after the lease is 23 executed, the lien notice is valid only to the extent that 24 moneys remain unpaid by the owner to the broker. 25 (5) A recorded lien notice is effective under this 26 part only with respect to leases made by the owner named in 27 the lien notice and the lien notice is ineffective with 28 respect to any leases that are made by: 29 (a) A bona fide purchaser for value of the commercial 30 real estate; 31 (b) A purchaser at any mortgage foreclosure sale of 32 7:42 AM 04/18/05 s2036d-ri24-ta1
Florida Senate - 2005 COMMITTEE AMENDMENT Bill No. SB 2036 Barcode 322466 1 the commercial real estate; or 2 (c) Any successor owner acquiring the commercial real 3 estate from a purchaser described in paragraphs (a) or (b). 4 (6) Whenever a lien notice is recorded and a condition 5 or event occurs or fails to occur that would preclude the 6 broker from receiving the claimed commission under the terms 7 of the brokerage agreement, including the filing of a lien 8 notice in a manner that does not comply with this part, the 9 broker shall, within 7 days following demand by the owner, 10 record a written release of the lien notice in the public 11 records of the county where the lien notice was recorded. 12 (7) If a broker records a lien notice pursuant to this 13 section and the claimed commission is paid or the lien notice 14 is otherwise discharged or satisfied pursuant to this part, 15 the broker shall, within 7 days after the commission is paid 16 or the lien notice is otherwise discharged or satisfied, 17 record a written release of the lien notice in the public 18 records of the county where the lien notice was recorded. 19 (8)(a) Except as provided in paragraph (b), a lien 20 notice recorded by a broker under this part for a claimed 21 commission expires 2 years after the date of recording, unless 22 within that time the broker commences an action to foreclose 23 the lien under s. 475.809 and records a notice of lis pendens 24 in the public records of the county where the lien notice was 25 recorded. 26 (b) To the extent that a lien notice recorded by a 27 broker under this part claims an automatic renewal commission 28 that is earned but not then payable, the lien notice expires 29 10 years after the date of recording, unless within that time 30 the broker commences an action to foreclose the lien under s. 31 475.809 and records a notice of lis pendens in the public 33 7:42 AM 04/18/05 s2036d-ri24-ta1
Florida Senate - 2005 COMMITTEE AMENDMENT Bill No. SB 2036 Barcode 322466 1 records of the county where the lien notice was recorded. If 2 the brokerage agreement remains effective, the broker may 3 extend the expiration date of a lien notice for an automatic 4 renewal commission by recording an extension notice in the 5 same public records within the last 6 months before such 6 expiration date. An extension notice shall refer to the 7 recording information of the original lien notice, shall state 8 that the brokerage agreement remains effective, and shall 9 include the same information and be executed in the same 10 manner as required by s. 475.805(1) for the original lien 11 notice. A timely recorded extension notice shall extend the 12 expiration date of the original recorded lien notice by 10 13 additional years. Successive extension notices may be recorded 14 for so long as the brokerage agreement remains effective 15 between the broker and the owner. Within 10 days after 16 recording an extension notice, the broker shall deliver a copy 17 thereof to the owner. 18 (c) The owner or the owner's agent or attorney may 19 elect to shorten the time within which the broker shall 20 commence an action to foreclose a lien under s. 475.809, or to 21 enforce a claim against a transfer bond or other security 22 under s. 475.811, by recording in the clerk's office a notice 23 of contest in substantially the following form: 24 25 NOTICE OF CONTEST OF BROKER'S LIEN 26 27 To:__________(Name and address of broker)_____ 28 You are notified that the undersigned contests the lien notice 29 filed by you on _________, (year) , and recorded in Official 30 Records Book _____, Page _____, of the public records of 31 ______________ County, Florida, and that the time within which 34 7:42 AM 04/18/05 s2036d-ri24-ta1
Florida Senate - 2005 COMMITTEE AMENDMENT Bill No. SB 2036 Barcode 322466 1 you may file suit to enforce your lien is limited to 60 days 2 from the date of service of this notice. This _____ day of 3 _____________________________________________________,(year) . 4 Signed: (Owner or Attorney) 5 6 The lien of any broker upon whom such a notice of contest is 7 served and who fails to institute a suit to enforce the lien 8 within 60 days after service of such notice of contest shall 9 be extinguished automatically. The clerk shall mail a copy of 10 the notice of contest to the broker at the address shown in 11 the lien notice or most recent amendment thereto and shall 12 certify to such service on the face of the notice of contest 13 and record the notice of contest. Service of the notice of 14 contest by the clerk shall be deemed complete upon mailing. 15 475.809 Foreclosure of lien; civil action by owner; 16 award of costs and attorney's fees.-- 17 (1) A broker may enforce a lien for a commission that 18 is earned and payable under this part by a foreclosure suit in 19 the same manner as if the lien notice were a mortgage recorded 20 against the commercial real estate of the owner obligated to 21 pay the claimed commission. The foreclosure shall be commenced 22 in the county court or circuit court, whichever may have 23 jurisdiction of controversies in the amount of the claimed 24 commission, of the county where the lien notice was recorded. 25 The foreclosure action shall be commenced before the lien 26 notice expires or is extinguished under s. 475.807(8); 27 otherwise the lien notice shall become null and void and have 28 no further force or effect. 29 (2) If a lien notice is recorded pursuant to s. 30 475.807 and the owner disputes the claimed commission, the 31 owner may file a civil action seeking to discharge the lien in 35 7:42 AM 04/18/05 s2036d-ri24-ta1
Florida Senate - 2005 COMMITTEE AMENDMENT Bill No. SB 2036 Barcode 322466 1 the county court or circuit court, whichever may have 2 jurisdiction of controversies in the amount of the claimed 3 commission, of the county where the lien notice was recorded. 4 (3) In any action to foreclose a lien or to discharge 5 a lien pursuant to this section, the prevailing party shall be 6 awarded costs and reasonable attorney's fees. 7 475.811 Transfer of lien to security.-- 8 (1)(a) Any lien claimed by a broker by recording a 9 lien notice under this part may be transferred by any person 10 having an interest in the commercial real estate upon which 11 the lien is imposed from such commercial real estate to other 12 security by either: 13 1. Depositing in the clerk's office a sum of money; or 14 2. Filing in the clerk's office a bond executed as 15 surety by a surety insurer licensed to do business in this 16 state, either to be in an amount equal to the amount claimed 17 in the lien notice, plus interest thereon at the legal rate 18 for 3 years, plus $1,000 or 25 percent of the amount demanded 19 in the lien notice, whichever is greater, to apply on any 20 attorney's fees and court costs that may be taxed in any 21 proceeding to enforce said lien. 22 (b) Such deposit or bond shall be conditioned to pay 23 any judgment or decree that may be rendered for the 24 satisfaction of the lien for which such lien notice was 25 recorded. Upon making such deposit or filing such bond, the 26 clerk shall make and record a certificate showing the transfer 27 of the lien from the commercial real estate to the security 28 and shall mail a copy thereof by registered or certified mail 29 to the broker named in the lien notice at the address stated 30 therein. Upon filing the certificate of transfer the 31 commercial real estate shall thereupon be released from the 36 7:42 AM 04/18/05 s2036d-ri24-ta1
Florida Senate - 2005 COMMITTEE AMENDMENT Bill No. SB 2036 Barcode 322466 1 lien claimed and such lien shall be transferred to said 2 security. Subject to any order of the court increasing the 3 amount required for the lien transfer deposit or bond, no 4 other judgment or decree to pay money may be entered by the 5 court against the owner on account of the commission claimed 6 in the lien notice. The clerk shall be entitled to a service 7 charge for making and serving the certificate, in the amount 8 of up to $15. If the transaction involves the transfer of 9 multiple liens, an additional charge of up to $7.50 for each 10 additional lien shall be charged. For recording the 11 certificate and approving the bond, the clerk shall receive 12 her or his usual statutory service charges as prescribed in s. 13 28.24. Any number of liens may be transferred to one such 14 security. 15 (2) Any excess of the security over the aggregate 16 amount of any judgments or decrees rendered plus costs 17 actually taxed shall be repaid to the party filing the 18 security or her or his successor in interest. Any deposit of 19 money shall be considered as paid into court and shall be 20 subject to the provisions of law relative to payments of money 21 into court and the disposition of same. 22 (3) In any action pending under s. 475.809 to 23 foreclose or discharge a lien, any party having an interest in 24 such security or the commercial real estate from which the 25 lien was transferred may at any time and any number of times 26 file a motion for an order to require additional security, 27 reduction of security, change or substitution of sureties, 28 payment of discharge thereof, or any other matter affecting 29 said security. If the court finds that the amount of the 30 deposit or bond in excess of the amount claimed in the lien 31 notice is insufficient to pay the broker's attorney's fees and 37 7:42 AM 04/18/05 s2036d-ri24-ta1
Florida Senate - 2005 COMMITTEE AMENDMENT Bill No. SB 2036 Barcode 322466 1 court costs incurred in the action to enforce the lien, the 2 court shall increase the amount of the cash deposit or lien 3 transfer bond. 4 (4) If a proceeding to enforce a transferred lien is 5 not commenced within the time specified in s. 475.809 or if it 6 appears that the transferred lien has been satisfied of 7 record, the clerk shall return said security upon request of 8 the person depositing or filing the same, or the insurer. 9 475.813 Subordination of lien.-- 10 (1) This part does not preclude a broker from agreeing 11 to subordinate a lien claimed by the broker under this part in 12 favor of the holder of any mortgage or other lien against the 13 owner's interest in the commercial real estate that is subject 14 to the lien of the broker. 15 (2) With or without the consent of the broker, the 16 owner may subordinate a lien claimed by the broker for an 17 automatic renewal commission in favor of the holder of a 18 subsequent mortgage encumbering the owner's interest in the 19 commercial real estate. The subordination instrument described 20 in this subsection must be made in writing and must be 21 recorded by the owner in the public records of the same county 22 where the lien notice of the broker was recorded. 23 (3) A lien notice of the broker recorded against 24 commercial real estate under this part is subordinate to any 25 mortgage that has at any time secured any purchase money 26 indebtedness, if the mortgage is made by the owner of the 27 commercial real estate in favor of a person unrelated to the 28 owner. This subsection applies only to the relative priority 29 of the lien notice of the broker and the mortgage with respect 30 to each other, and this subsection does not affect their 31 relative priority with respect to any other mortgage, lien, 38 7:42 AM 04/18/05 s2036d-ri24-ta1
Florida Senate - 2005 COMMITTEE AMENDMENT Bill No. SB 2036 Barcode 322466 1 encumbrance, or other matter affecting the title to the 2 commercial real estate. 3 Section 3. Paragraph (j) of subsection (1) of section 4 475.42, Florida Statutes, is amended to read: 5 475.42 Violations and penalties.-- 6 (1) VIOLATIONS.-- 7 (j) A broker or sales associate may not place, or 8 cause to be placed, upon the public records of any county, any 9 contract, assignment, deed, will, mortgage, affidavit, or 10 other writing which purports to affect the title of, or 11 encumber, any real property if the same is known to her or him 12 to be false, void, or not authorized to be placed of record, 13 or not executed in the form entitling it to be recorded, or 14 the execution or recording whereof has not been authorized by 15 the owner of the property, maliciously or for the purpose of 16 collecting a commission, or to coerce the payment of money to 17 the broker or sales associate or other person, or for any 18 unlawful purpose. However, nothing in this paragraph shall be 19 construed to prohibit a broker or a sales associate from 20 recording a judgment rendered by a court of this state or to 21 prohibit a broker from placing a lien on a property where 22 expressly permitted by contractual agreement or otherwise 23 allowed by law. 24 Section 4. This act shall take effect October 1, 2005. 25 26 27 ================ T I T L E A M E N D M E N T =============== 28 And the title is amended as follows: 29 Delete everything before the enacting clause 30 31 and insert: 39 7:42 AM 04/18/05 s2036d-ri24-ta1
Florida Senate - 2005 COMMITTEE AMENDMENT Bill No. SB 2036 Barcode 322466 1 A bill to be entitled 2 An act relating to liens on commercial real 3 estate; creating part III of ch. 475, F.S., the 4 "Commercial Real Estate Sales Commission Lien 5 Act"; providing definitions; specifying 6 conditions under which a broker is entitled to 7 a lien upon the owner's net proceeds from the 8 disposition of commercial real estate for any 9 commission earned by the broker under a 10 brokerage agreement; providing that the lien 11 cannot be assigned, enforced, or waived by 12 anyone other than the broker; requiring 13 disclosure; providing for the contents of the 14 commission notice and delivery to certain 15 parties; providing a form for the commission 16 notice; providing that a lien may not be 17 enforced if the notice is not delivered to 18 certain parties; providing that the commission 19 notice may be recorded; providing for 20 expiration and extension under certain 21 conditions; providing for release of the 22 commission notice under certain conditions; 23 providing the duties of the closing agent; 24 requiring the closing agent to reserve an 25 owner's proceeds under certain conditions; 26 providing for the release of proceeds under 27 certain conditions; requiring deduction of 28 certain costs from the proceeds; providing for 29 interpleader or other legal proceedings sought 30 by a closing agent to adjudicate certain 31 rights; providing for the deposit of reserved 40 7:42 AM 04/18/05 s2036d-ri24-ta1
Florida Senate - 2005 COMMITTEE AMENDMENT Bill No. SB 2036 Barcode 322466 1 proceeds in a court registry; providing for the 2 discharge of the closing agent from further 3 liability; providing for a civil action if a 4 dispute arises concerning the proceeds; 5 providing that the prevailing party may recover 6 certain fees and costs incurred in a civil 7 action; establishing the priority of a recorded 8 commission notice; providing for the service of 9 notice; providing that a buyer's broker is not 10 entitled to a lien; providing certain 11 conditions under which a buyer's broker may 12 seek payment of a commission; creating part IV 13 of ch. 475, F.S., the "Commercial Real Estate 14 Leasing Commission Lien Act"; providing 15 definitions; providing conditions under which a 16 broker may place a lien upon an owner's 17 interest in commercial real estate for any 18 commission earned under a brokerage agreement 19 with respect to a lease of commercial real 20 estate; providing that the lien cannot be 21 assigned, enforced, or waived by anyone other 22 than the broker; requiring disclosure; 23 providing for the contents of the lien notice; 24 providing a form for the lien notice; providing 25 that the lien notice may be recorded; providing 26 that a lien may not be enforced if the broker 27 fails to record the notice; providing for 28 effectiveness of a recorded lien notice; 29 providing for release of the lien notice under 30 certain conditions; providing for expiration 31 and extension under certain conditions; 41 7:42 AM 04/18/05 s2036d-ri24-ta1
Florida Senate - 2005 COMMITTEE AMENDMENT Bill No. SB 2036 Barcode 322466 1 providing for foreclosure of a recorded lien 2 under certain conditions; providing a form; 3 providing for a civil action if a dispute 4 arises concerning the proceeds; providing that 5 the prevailing party may recover certain fees 6 and costs incurred in a civil action; providing 7 procedures to transfer a lien to a security; 8 providing that the clerk of court may collect a 9 service charge; providing for a subordination 10 of a lien; amending s. 475.42, F.S.; providing 11 that a broker may place a lien when allowed by 12 law; providing an effective date. 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 42 7:42 AM 04/18/05 s2036d-ri24-ta1