Texas Agents by Racepgpcnprealtors.info/wp-content/uploads/2012/08/PPTs... · 2017. 5. 11. · 8/9/2012 1 MARS MARS Mortgage Assistance Relief Services Act The MARS Rule covers persons

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MARSMARS

MARSMARS Mortgage Assistance Relief Services ActMortgage Assistance Relief Services Act

The MARS Rule covers persons The MARS Rule covers persons or entities or entities engaged in the engaged in the

marketing or provision of services to assist consumers in marketing or provision of services to assist consumers in obtaining obtaining

modifications modifications of their mortgage loans or other help in avoiding of their mortgage loans or other help in avoiding

foreclosureforeclosure

(1(1) prohibits MARS providers from making false or misleading ) prohibits MARS providers from making false or misleading

claimsclaims,,

((2) mandates 2) mandates that providers that providers disclose certain information about their disclose certain information about their

servicesservices, ,

((3) bars the collection of 3) bars the collection of advance fees advance fees for these services (for these services (i.e., i.e., prior prior

to the completion of the provider’s services and the to the completion of the provider’s services and the consumer’s consumer’s

acceptance acceptance of the resultsof the results),),

((4) prohibits any third party from providing substantial assistance 4) prohibits any third party from providing substantial assistance or or

support support to to another engaged another engaged in a violation in a violation of the of the RuleRule, , and and

((5) imposes recordkeeping and compliance requirements5) imposes recordkeeping and compliance requirements

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Types of Fraud:Types of Fraud:

Foreclosure schemesForeclosure schemes

•• Subjects mislead the homeowners into Subjects mislead the homeowners into

believing that they can save their homes in believing that they can save their homes in

exchange for a transfer of the deed and upexchange for a transfer of the deed and up--

front feesfront fees

There is great news for REALTORS® who There is great news for REALTORS® who

help consumers with short sale help consumers with short sale

transactions. The Federal Trade transactions. The Federal Trade

CommissionCommission (FTC) issued a stay in the (FTC) issued a stay in the

enforcement of MARS against real estate enforcement of MARS against real estate

licenseeslicensees..

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Florida Loan Modification LawFlorida Loan Modification Law

Loan Modification: Real estate licensees negotiating short Loan Modification: Real estate licensees negotiating short

sales are NOT providing loan modification services sales are NOT providing loan modification services

according to Florida Statutes. according to Florida Statutes.

“Loan modification" “Loan modification" means a modification to an existing means a modification to an existing

loan. The term does not include a refinancing transaction.loan. The term does not include a refinancing transaction.

When offering or providing loan modification services, the When offering or providing loan modification services, the

provider must hold a provider must hold a mortgage loan originator license mortgage loan originator license and and

MUST:MUST:

1.1. First execute a written agreement;First execute a written agreement;

2.2. Get the consent of the borrower before executing Get the consent of the borrower before executing

the modification; and the modification; and

3.3. Complete all services included in the agreement Complete all services included in the agreement

before before collecting any paymentcollecting any payment. . A fee may be A fee may be

charged only if the loan modification results in a charged only if the loan modification results in a

material benefit to the borrower. material benefit to the borrower.

NOTE: There is currently no rule defining “material NOTE: There is currently no rule defining “material

benefit to the borrower”benefit to the borrower”

Loan Modification AgreementLoan Modification Agreement

1.1. Copy must be given to borrower at least Copy must be given to borrower at least 11 business business

day BEFORE signing and within day BEFORE signing and within 33 hours AFTER hours AFTER

signingsigning

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2.2. Must be in writing, dated, signed by both parties, Must be in writing, dated, signed by both parties,

and include: and include:

a.a. the name and address of the person providing the name and address of the person providing

loan modification servicesloan modification services

b.b. the exact nature and specific detail of each the exact nature and specific detail of each

service to be providedservice to be provided

c.c. the total amount and terms of charges to be paid the total amount and terms of charges to be paid

by the borrower for the servicesby the borrower for the services

d.d. the BORROWER’S RIGHT OF CANCELLATION the BORROWER’S RIGHT OF CANCELLATION

noticenotice

3.3. Borrower has Borrower has 33 business day right to business day right to cancel cancel after after

signingsigning

BORROWER'S RIGHT OF CANCELLATION

YOU MAY CANCEL THIS AGREEMENT FOR LOAN MODIFICATION

SERVICES WITHOUT ANY PENALTY OR OBLIGATION WITHIN 3

BUSINESS DAYS AFTER THE DATE THIS AGREEMENT IS SIGNED BY

YOU.

THE MORTGAGE BROKER, MORTGAGE BROKERAGE BUSINESS,

MORTGAGE LENDER, OR (CORRESPONDENT MORTGAGE LENDER) IS

PROHIBITED BY LAW FROM ACCEPTING ANY MONEY, PROPERTY, OR

OTHER FORM OF PAYMENT FROM YOU UNTIL ALL PROMISED

SERVICES HAVE BEEN COMPLETED. IF FOR ANY REASON YOU HAVE

PAID THE CONSULTANT BEFORE CANCELLATION, YOUR PAYMENT

MUST BE RETURNED TO YOU WITHIN 10 BUSINESS DAYS AFTER THE

CONSULTANT RECEIVES YOUR CANCELLATION NOTICE.

TO CANCEL THIS AGREEMENT, A SIGNED AND DATED COPY OF A

STATEMENT THAT YOU ARE CANCELING THE AGREEMENT SHOULD BE

MAILED (POSTMARKED) OR DELIVERED TO (NAME) AT (ADDRESS) NO

LATER THAN MIDNIGHT OF (DATE) .

IMPORTANT: IT IS RECOMMENDED THAT YOU CONTACT YOUR

MORTGAGE LENDER OR MORTGAGE SERVICER BEFORE SIGNING

THIS AGREEMENT. YOUR LENDER OR SERVICER MAY BE WILLING TO

NEGOTIATE A PAYMENT PLAN OR A RESTRUCTURING WITH YOU FREE

OF CHARGE.

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Case Number: L09-3-1214

Subject of

investigation:

Direct Mortgage Solutions/

American Senior Lending

Subject's

address:

8725 NW 18th Terrace, #102,

Miami, Florida 33172

Subject's

business:

Telemarketing

Allegation or issue being investigated:

foreclosure rescue services, charging of up

front mortgage modification fees in voilation of

501.1377

AG unit

handling case:

Economic Crimes Division in

Ft. Lauderdale, Florida



Subject of investigation:

Lending Central

Subject's address:

10260 NW 47th Street, Sunrise, Florida

33351

Subject's business:

Telemarketing


Foreclosure rescue services, charging of up front mortgage modification fees in

voilation of 501.1377

AG unit handling case:

Economic Crimes Division in Ft.

Lauderdale, Florida

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Keep Your Property, Inc., William R. Colon, Carlos

A. Hernandez

Subject's address:

2775 West 61st Place, #206, Hialeah, FL

33016(per SunBiz) or 520 NW 165th Street, Suite

106, North Miami Beach, FL 33169-6303 (per

website)

Subject's business:

Mortgage foreclosure rescue


Principals appear to be collecting illegal upfront fees in mortgage foreclosure rescue, as well

as untruthfully representing company to be non-profit and not attempting to obtain mortgage

modifications though collecting money up front, and continuing monthly withdrawals from

consumers bank accounts for that purpose.


Economic Crimes Division in Ft. Lauderdale,

Florida



Mortgage Crisis Solutions

Association, LLC Property Solutions

Specialists, Inc.

Subject's address:

700 S. Royal Poinciana Boulevard,

Suite 1020 Miami, FL 33166

Subject's business:

Mortgage Foreclosure

Relief/Modification


Upfront payment for mortgage rescue services which are not delivered as

represented



Lauderdale, Florida

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JPB Consulting, Inc. a/k/a Mortgage

Modification Solutions

Subject's address:

111 East Monument Avenue - Suite

318 Kissimmee, FL 34741

Subject's business:

Loan Modification/Foreclosure Rescue


FSS 501.1377, Violations involving homeowners during the course of

residential foreclosure proceedings.


Economic Crimes Division in Orlando,

Florida



Force Ten Investments, Inc. d/b/a

Nationwide Short Sale Service, d/b/a

Ameriscott Mortgage; Scott Siegel

Subject's address:

1440 CORAL RIDGE DR. #367, Ft.

Lauderdale, FL 33309

Subject's business:

Mortgages


Alleged misrepresentations and deceptive practices regarding

marketing/advertising and services regarding real estate short sales



Lauderdale, Florida

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LIFEGUARD FINANCIAL, LLC., d/b/a LIFEGUARD FINANCIAL,

INC., RICHARD A. PASSERO, SR., and EFRAIN GARCIA, SAFE

TRUST FINANCIAL, INC., MAIN STREET FINANCIAL GROUP,

1ST PYRAMID FINANCIAL, INC., PLEASE REDUCE MY DEBT,

LLC., PLEASE REDUCE MY MORTGAGE, LLC., PRACTICAL

DEBT SOLUTIONS, FBL ASSOCIATES, LLC., SBL &

ASSOCIATES, LLC./DEBT RELIEF CENTERS OF AMERICA,

VERTEXSOFT CORPORATION, P & E SOLUTIONS COMPANY,

LIFEGUARD MARKETING, INC., LIFEGUARD MARKETING,

INC., THE LIFEGUARD FINANCIAL GROUP, INC.,

Subject's address:

4 West Las Olas Boulevard, 4th Floor, Fort Lauderdale, FL 33301

Subject's business:

Debt Consolidation, Credit Management and Loan Modification.


Lifeguard Financial appears to be in violation of Florida Statute 501.1377


Economic Crimes Division in Ft. Lauderdale, Florida

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Adverse PossessionAdverse Possession

SB 1142 / HB 927 relating to SB 1142 / HB 927 relating to adverse possessionadverse possession

The number of foreclosures around the state has spawned a new kind of scam. Unscrupulous persons or companies scout for vacant homes and rent out the home — often without the knowledge of the property owner. Realtors or family members discover the property takeover when they find the home’s locks have been changed. When confronted, these scam artists claim ownership under adverse possession.

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A company called Helping Hands A company called Helping Hands

Properties, Inc. claimed 48 properties in Properties, Inc. claimed 48 properties in

Broward, including a $1 million house in Broward, including a $1 million house in

Coral Springs. Another, Saving Florida Coral Springs. Another, Saving Florida

Homes, Inc. filed notice in official county Homes, Inc. filed notice in official county

records that it was taking possession of records that it was taking possession of

100 homes in Broward and three in Palm 100 homes in Broward and three in Palm

Beach Beach County. 10 County. 10 properties were claimed properties were claimed

in just one day. in just one day.


Definition of adverse possession

Obtaining title to real property through the

actual, open, continuous, exclusive,

notorious and hostile possession of lands

‘under title’ or ‘under law.’

Requirements to obtain title via adverse

possession ‘under law’

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(1) When the occupant has, or those under whom the occupant

49 claims have, been in actual continued occupation of real

50 property for 7 years under a claim of title exclusive of any

51 other right, but not founded on a written instrument, judgment,

52 or decree, the property actually occupied is shall be held

53 adversely if the person claiming adverse possession made a

54 return, as required under subsection (3), of the property by

55 proper legal description to the property appraiser of the county

56 where it is located within 1 year after entering into possession

57 and has subsequently paid, subject to s. 197.3335, all taxes and

58 matured installments of special improvement liens levied against

59 the property by the state, county, and municipality.


A ‘uniform adverse possession return’ must be

completed and delivered to the property

appraiser within 1 year of taking possession

The property appraiser must notify the owner of

record and make a notation in the public

records.

Tax installments from the record owner have

priority over those of the adverse possessor.

The adverse possessor’s payments will be

returned to the adverse possessor.

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Vacation RentalsVacation Rentals


SB 476 / HB 883 Vacation RentalsSB 476 / HB 883 Vacation Rentals A vacation rental resort condominium is “any unit or A vacation rental resort condominium is “any unit or

group of units in a condominium, cooperative, or group of units in a condominium, cooperative, or

timeshare plan or any individually or collectively timeshare plan or any individually or collectively

owned singleowned single--family, twofamily, two--family, family, ADDED: threeADDED: three--

family family or fouror four--family house or dwelling unit that is family house or dwelling unit that is

also a also a transient public lodging establishment transient public lodging establishment .”.”

NEW DEFINITION: Rented NEW DEFINITION: Rented to guests more to guests more

than three times in a calendar year for than three times in a calendar year for

periods of less than 30 days or 1 calendar periods of less than 30 days or 1 calendar

month, whichever is less, or which is month, whichever is less, or which is

advertised or held out to the public as a advertised or held out to the public as a

place regularly rented to place regularly rented to guests.guests.

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Now exempt from public lodging

requirements and must be treated same

as all other residential property by local

governments.

This law also prohibits local

governments from enacting a ban on

short-term rentals after June 1, 2011.

Local governments with existing rental

ban ordinances are not affected.

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New Legislative IssuesNew Legislative Issues

AMENDMENT 4AMENDMENT 4 If If passed by voters, Amendment 4 passed by voters, Amendment 4

takes effect on Jan. 1, 2013, and would:takes effect on Jan. 1, 2013, and would:

• Reduce the maximum annual • Reduce the maximum annual

“assessed value” increase cap (“assessed value” increase cap (on on nonnon--

school school levies) for levies) for nonhomesteadnonhomestead

property from the current 10 percent property from the current 10 percent to to

5 5 percent percent through the 2022 tax through the 2022 tax year. year.

AMENDMENT 4AMENDMENT 4

• • Provide an Provide an additional homestead additional homestead

exemptionexemption for firstfor first--time Florida time Florida

homebuyers homebuyers ((defined as not owning a defined as not owning a

Florida homestead in the past 3 yearsFlorida homestead in the past 3 years) )

equal equal to 50 percent of “just value” of a to 50 percent of “just value” of a

property, up to the median “just value” of property, up to the median “just value” of

a homestead property in that county. The a homestead property in that county. The

amount of the additional exemption will amount of the additional exemption will

decrease 20% decrease 20% in each succeeding year for in each succeeding year for

5 5 years. This applies to properties years. This applies to properties

PURCHASED after January 1, 2012.PURCHASED after January 1, 2012.

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AMENDMENT 4AMENDMENT 4

MEANING: This means that ‘firstMEANING: This means that ‘first--time time

home buyers’ will receive the $25,000 home buyers’ will receive the $25,000

school exemption PLUS the regular school exemption PLUS the regular

$50,000 exemption PLUS an additional $50,000 exemption PLUS an additional

regular exemption of 50% of the property regular exemption of 50% of the property

value as of 1/1 of the first tax year, not to value as of 1/1 of the first tax year, not to

exceed the median just value of all exceed the median just value of all

homesteads in the county. homesteads in the county.

Let’s try some math!Let’s try some math!

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7222 Lobelia Road7222 Lobelia Road

Sale Price: $100,000Sale Price: $100,000

7222 Lobelia Road7222 Lobelia Road

Sale Price: $100,000Sale Price: $100,000 Assume the County median is $100,000Assume the County median is $100,000

Regular exemption: Regular exemption: $50,000$50,000

AddtlAddtl exemption: maximum up to medianexemption: maximum up to median $100,000$100,000

School exemption: School exemption: $25,000$25,000

Subject #1 Just Value: Subject #1 Just Value: $100,000$100,000

Minus: Minus: Regular Regular -- $50,000$50,000

Minus: Minus: Additional ($100,000 JV x 50%)Additional ($100,000 JV x 50%) -- $50,000$50,000

Equals: Equals: Regular taxable valueRegular taxable value = $0= $0

Schools taxable value $100,000 Schools taxable value $100,000 -- $25,000$25,000 = $75,000= $75,000

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14557 Riverside Drive14557 Riverside Drive


14557 Riverside Drive14557 Riverside Drive


Regular exemption: Regular exemption: $50,000$50,000


School exemption: School exemption: $25,000$25,000


Minus: Minus: Regular Regular -- $50,000$50,000

Minus: Minus: Additional ($150,000 X 50%)Additional ($150,000 X 50%) -- $75,000$75,000

Equals: Equals: Regular taxable valueRegular taxable value = $25,000= $25,000

Schools taxable value $150,000 Schools taxable value $150,000 -- $25,000$25,000 = $125,000= $125,000

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11186 Lakeland Circle11186 Lakeland Circle


11186 Lakeland Circle11186 Lakeland Circle


Regular exemption: Regular exemption: $ 50,000$ 50,000


School exemption: School exemption: $ 25,000$ 25,000


Minus: Minus: Regular Regular -- $ 50,000$ 50,000

Minus: Minus: Additional ($200,000 x 50%) Additional ($200,000 x 50%) -- $100,000$100,000

Equals: Equals: Regular taxable value = $50,000Regular taxable value = $50,000

Schools taxable value $200,000 Schools taxable value $200,000 -- $25,000 = $175,000$25,000 = $175,000

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AMENDMENT 4AMENDMENT 4 Amendment 4 also grants Amendment 4 also grants legislative authority to legislative authority to

eliminate the eliminate the soso--called Save called Save Our Homes “Recapture Our Homes “Recapture

RuleRule.”.”

Section Section 193.155 FS: Save Our Homes ‘Recapture Rule’193.155 FS: Save Our Homes ‘Recapture Rule’

Property is reassessed annually on January 1, and Property is reassessed annually on January 1, and

any change in assessed (SOH) value is limited to the any change in assessed (SOH) value is limited to the

lesser of:lesser of:

1) 1) Three Three percent of the assessed value of the percent of the assessed value of the

property property for the prior year; orfor the prior year; or

22)) The The percentage change in the Consumer price percentage change in the Consumer price

IndexIndex..

Over time this will create a differential Over time this will create a differential

between the between the just just value and the SOH value and the SOH

value. value. As As just just values increase rapidly, values increase rapidly,

that differential can grow substantiallythat differential can grow substantially. .

The The following is an example of the following is an example of the

relationship between relationship between just just value and value and

assessed (SOH) assessed (SOH) value showing what value showing what

can happen if just value drops after can happen if just value drops after

years of increasing values. years of increasing values.

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Year Year 5 shows the recapture provision specified in 5 shows the recapture provision specified in FAC FAC

Rule 12DRule 12D--8.0062(5): As long as the current year 8.0062(5): As long as the current year just just

valuevalue of an individual property exceeds the prior year of an individual property exceeds the prior year

assessed valueassessed value, the property appraiser is required to , the property appraiser is required to

increase the prior year’s increase the prior year’s assessed value assessed value by the 3% or by the 3% or

CPI CPI rule rule even even if the if the just value declinesjust value declines. .

Amendment Amendment 4 grants legislative authority to eliminate 4 grants legislative authority to eliminate

this provision.this provision.

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

Just Value $240,000 $254,400 $284,928 $296,325 $281,510

(-5%)

Assessed

Value – SOH

(3% cap)

$240,000 $247,200 $254,616 $262,254 $270,122

(+3%)

Differential $0 $7,200 $30,312 $34,071 $11,388

HB 303HB 303

Effective July 1, 2011 Effective July 1, 2011

This highly controversial bill relates to appraisal This highly controversial bill relates to appraisal

management companies, known briefly as management companies, known briefly as

AMCs. AMCs. Created after HVCCCreated after HVCC

The legislation defines The legislation defines "appraisal management "appraisal management

company"company" as an individual or business entity as an individual or business entity

that performs appraisal management services that performs appraisal management services

by:by:

1. Employing, contracting with, or otherwise 1. Employing, contracting with, or otherwise

retaining one or more appraisers to perform retaining one or more appraisers to perform

appraisal services for a client; orappraisal services for a client; or

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2. Acting as a broker or intermediary between a 2. Acting as a broker or intermediary between a

client and one or more appraisers to facilitate client and one or more appraisers to facilitate

the client's employing, contracting with, or the client's employing, contracting with, or

otherwise retaining the appraisers.otherwise retaining the appraisers.

Prior to the passage of HB 303 AMCs were not Prior to the passage of HB 303 AMCs were not

recognized by Florida law. The new provisions, recognized by Florida law. The new provisions,

which take effect July 1, 2011, require AMCs to which take effect July 1, 2011, require AMCs to

register with the Department of Business and register with the Department of Business and

Professional Regulation, fulfill application Professional Regulation, fulfill application

requirements including a background check, and requirements including a background check, and

each AMC must comply with standards of each AMC must comply with standards of

conduct.conduct.

An attempt by the DBPR to delay regulation

of Appraisal Management Companies until

2014 failed. Consequently, regulation of

AMCs began July 1, 2011.

NEW Effective October 1, 2012:NEW Effective October 1, 2012:

The new DBPR bill The new DBPR bill expanded the expanded the

definition of appraisal management definition of appraisal management

company to apply to use of terms such company to apply to use of terms such

as “appraiser cooperative” “appraiser as “appraiser cooperative” “appraiser

portal” “mortgage technology company” portal” “mortgage technology company”

or other term.or other term.

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HBHB--713713 Comprehensive DBPR BillComprehensive DBPR Bill

This departmental bill covered lots of territory in This departmental bill covered lots of territory in

2011 and 2012:2011 and 2012:

Temporary license to the spouse of an active duty Temporary license to the spouse of an active duty

member of the Armed Forces of the United States member of the Armed Forces of the United States

The department may issue a temporary professional The department may issue a temporary professional

license to the spouse of an active duty member of the license to the spouse of an active duty member of the

Armed Forces of the United States if the spouse applies Armed Forces of the United States if the spouse applies

in the format prescribed by the department. in the format prescribed by the department.

This provision is limited to a spouse who holds a valid This provision is limited to a spouse who holds a valid

license for the profession in another state or foreign license for the profession in another state or foreign

jurisdiction. The temporary license expires 6 months jurisdiction. The temporary license expires 6 months

after the date of issuance and is not renewable.after the date of issuance and is not renewable.

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NEW: Effective October 1, 2012NEW: Effective October 1, 2012

Waiver of Military Veteran License Waiver of Military Veteran License

Fees: Fees: The bill waives the initial The bill waives the initial

licensing fee, the initial application fee licensing fee, the initial application fee

and the initial unlicensed activity fee and the initial unlicensed activity fee

for a military veteran who applies for a for a military veteran who applies for a

waiver within 24 months after waiver within 24 months after

discharge from any branch of the US discharge from any branch of the US

Armed Forces. To qualify for this Armed Forces. To qualify for this

waiver, the veteran must have been waiver, the veteran must have been

honorably discharged.honorably discharged.

Licensing of home inspectors, mold Licensing of home inspectors, mold

assessors and mold assessors and mold remediatorsremediators

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Effective July 1, 2011 home inspectors are Effective July 1, 2011 home inspectors are

required to be licensed. Licensure requirements required to be licensed. Licensure requirements

include 120 hours of education and successful include 120 hours of education and successful

completion of the state licensing examination. completion of the state licensing examination.

Home inspectors with certifications, experience Home inspectors with certifications, experience

and education may be grandfathered in.and education may be grandfathered in.

Licensing of mold assessors and mold Licensing of mold assessors and mold

remediatorsremediators

Effective July 1, 2011 mold assessors and mold Effective July 1, 2011 mold assessors and mold

remediatorsremediators are required to be licensed. are required to be licensed.

Licensing requirements include education and Licensing requirements include education and

testing. Persons with certifications, experience testing. Persons with certifications, experience

and education may be grandfathered in.and education may be grandfathered in.

Effective Effective October 1, 2012October 1, 2012

Nonresident Nonresident Licenses: Licenses: The The bill repealed bill repealed

the requirement for nonresident the requirement for nonresident

applicants to file an irrevocable consent applicants to file an irrevocable consent

that suits and actions may be made by that suits and actions may be made by

delivering the process to the director of delivering the process to the director of

the Division of Real Estate. The the Division of Real Estate. The

requirement for resident licensees to requirement for resident licensees to

notify FREC within 60 days of becoming notify FREC within 60 days of becoming

a nonresident didn’t change.a nonresident didn’t change.

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Effective October 1, 2012Effective October 1, 2012

EE--mail mail NoticesNotices: DBPR may now forward : DBPR may now forward

licensure notices to an active or inactive licensure notices to an active or inactive

licensee at the licensee's last known licensee at the licensee's last known

address of record or eaddress of record or e--mail address mail address

provided to the department.provided to the department.

Effective October 1, 2012Effective October 1, 2012

Timeshare Timeshare PlansPlans: Some individuals have : Some individuals have

avoided licensing requirements by avoided licensing requirements by

calling their services calling their services “resale “resale servicesservices.” .”

Timeshare resale service providers must Timeshare resale service providers must

have a real estate broker license and have a real estate broker license and

must comply with a new set of must comply with a new set of

requirements and restrictions.requirements and restrictions.

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Effective October 1, 2012Effective October 1, 2012 Local Business Taxes:

1. Individuals licensed and operating as broker

associates and sales associates may not be

required to pay a local business tax and may

not be held liable for the failure of the

employing broker to comply with local

business tax requirements;

2. An employing broker may not be required to

provide personal or contact information

about licensees in order to obtain a local

business tax receipt.

Distressed Condominiums Distressed Condominiums

and HOAsand HOAs

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SB 1196SB 1196

Distressed condominiums and HOAsDistressed condominiums and HOAs

This legislation protects lenders and investors from some of This legislation protects lenders and investors from some of

the liabilities of condominium developers and developerthe liabilities of condominium developers and developer--

controlled boards. On the other hand it required lenders to controlled boards. On the other hand it required lenders to

pay 12 months of past due assessments pay 12 months of past due assessments (or 1% of the (or 1% of the

original mortgage amount) original mortgage amount) on foreclosed properties on foreclosed properties

instead of 6 months. In addition, condominium and HOA instead of 6 months. In addition, condominium and HOA

boards were given the okay to reduce some (90boards were given the okay to reduce some (90--day) day)

delinquent unit or parcel owner privileges, including delinquent unit or parcel owner privileges, including

suspension of voting rights and suspension of rights to use suspension of voting rights and suspension of rights to use

common elements and amenities. common elements and amenities.

Associations now also have the right to be paid Associations now also have the right to be paid

delinquent assessments directly from tenants in delinquent assessments directly from tenants in

the event of unit owner/landlord delinquency. the event of unit owner/landlord delinquency.

Certain records that may have been previously Certain records that may have been previously

accessible are now not accessible to owner accessible are now not accessible to owner

inspection, including einspection, including e--mail addresses, phone mail addresses, phone

numbers, and owner addresses other than those numbers, and owner addresses other than those

provided to fulfill the association’s notice provided to fulfill the association’s notice

requirements.requirements.

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HB 109HB 109

Documentary taxes on a short saleDocumentary taxes on a short sale

Effective July 1, 2010Effective July 1, 2010

This law codifies what has been in practice since This law codifies what has been in practice since

2008. Documentary taxes paid on a short sale 2008. Documentary taxes paid on a short sale

are now by law due on the sale price rather than are now by law due on the sale price rather than

the combination of the sale price plus the the combination of the sale price plus the

forgiven debt amount. forgiven debt amount.

Imported Drywall MarkingsImported Drywall Markings

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HB 965HB 965

Assessment of properties affected by Assessment of properties affected by

defective drywalldefective drywall

Effective June 1, 2010Effective June 1, 2010

When a property appraiser determines that a When a property appraiser determines that a

singlesingle--family residential property is affected by family residential property is affected by

imported or domestic drywall and needs imported or domestic drywall and needs

remediation to bring that property up to current remediation to bring that property up to current

building standards, the property appraiser must building standards, the property appraiser must

now adjust the assessed value by taking into now adjust the assessed value by taking into

consideration the impact of the drywall on the consideration the impact of the drywall on the

assessed value. assessed value.

If the building cannot be used for its intended If the building cannot be used for its intended

purpose without remediation or repair, the value purpose without remediation or repair, the value

will be assessed at the nominal just value of $0. will be assessed at the nominal just value of $0.

This section applies only to properties in which This section applies only to properties in which

the drywall was used in the construction or an the drywall was used in the construction or an

improvement to the property; it has a significant improvement to the property; it has a significant

negative impact on the just value of the property; negative impact on the just value of the property;

and the purchaser was unaware of the imported and the purchaser was unaware of the imported

or domestic drywall at the time of purchase. or domestic drywall at the time of purchase.

This section is repealed July 1, 2017, unless This section is repealed July 1, 2017, unless

reviewed and reenacted by the Legislature on or reviewed and reenacted by the Legislature on or

before that date.before that date.

8/9/2012

31

HB 1279HB 1279

Retroactive property tax assessmentsRetroactive property tax assessments


This legislation requires property appraisers to This legislation requires property appraisers to

assess back taxes, for up to three years, on all assess back taxes, for up to three years, on all

property that should have been assessed and property that should have been assessed and

levied upon but was not. levied upon but was not.

The bill provides that the retroactive assessment The bill provides that the retroactive assessment

and collection of ad valorem taxes is not and collection of ad valorem taxes is not

applicable if: applicable if:

the owner of a building, structure or the owner of a building, structure or

improvement that has not been previously improvement that has not been previously

assessed complied with all necessary assessed complied with all necessary

permitting requirements when the permitting requirements when the

improvement was completed; improvement was completed;

or the owner voluntarily discloses to the or the owner voluntarily discloses to the

property appraiser the existence of the property appraiser the existence of the

property before January 1 of the year the property before January 1 of the year the

property is first assessed. property is first assessed.

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32

HB 927HB 927

Retaining homestead tax cap in certain Retaining homestead tax cap in certain

transferstransfers

Property tax assessments are capped on Property tax assessments are capped on

homestead property for the period of home homestead property for the period of home

ownership. ownership.

Upon sale, however, the property is reassessed at Upon sale, however, the property is reassessed at

its just value. its just value.

This law was passed to allow homeowners to make This law was passed to allow homeowners to make

equitable transfers of their homestead for estate equitable transfers of their homestead for estate

planning purposes without being considered a planning purposes without being considered a

change in ownership that triggers an increase in change in ownership that triggers an increase in

valuation. valuation.

The law also specifies other transfers that do not The law also specifies other transfers that do not

affect valuation, including a transfer between a affect valuation, including a transfer between a

husband and wife and transfers to a surviving husband and wife and transfers to a surviving

spouse or child. spouse or child.

8/9/2012

33

Add your own caption…Add your own caption…

SB 550SB 550

Septic tank inspectionsSeptic tank inspections


Owners of an onsite sewage treatment and disposal Owners of an onsite sewage treatment and disposal

system are now required to have the system evaluated system are now required to have the system evaluated

at least once every 5 years to assess the fundamental at least once every 5 years to assess the fundamental

operational condition of the system and identify any operational condition of the system and identify any

failure within the system. failure within the system.

The inspection will be conducted by the Florida The inspection will be conducted by the Florida

Department of Health at a cost that cannot exceed Department of Health at a cost that cannot exceed

$30. $30.

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34

The evaluation must include a tank and The evaluation must include a tank and

drainfielddrainfield evaluation, a written assessment of the evaluation, a written assessment of the

condition of the system, and, if necessary, a condition of the system, and, if necessary, a

disclosure statement pursuant to the disclosure statement pursuant to the

department’s procedure.department’s procedure.

The legislation also created a grant program for The legislation also created a grant program for

low income homeowners whose septic tanks are low income homeowners whose septic tanks are

in need of repairs.in need of repairs.

Section Section 381.0065 F.S. 381.0065 F.S. -- Onsite sewage Onsite sewage

treatment and disposal systems; regulation.treatment and disposal systems; regulation.

Effective date: April 27, 2012Effective date: April 27, 2012

1.1. Repealed Repealed the mandatory septic tank inspection the mandatory septic tank inspection

law passed in 2010law passed in 2010 and and created created an optional an optional

inspection program for the 19 counties with the inspection program for the 19 counties with the

33 largest springs plus other cities and counties 33 largest springs plus other cities and counties

that choose that choose to participate in the programto participate in the program

22.. Any permit issued by the departmentAny permit issued by the department for the for the

installation, modification, or repair of an onsite installation, modification, or repair of an onsite

sewage treatment and disposal system sewage treatment and disposal system now now

transfers with the titletransfers with the title to the property in a real to the property in a real

estate transactionestate transaction;;

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Section Section 381.0065 F.S. 381.0065 F.S. -- Onsite sewage Onsite sewage



3.3. A title may not be encumbered at the time of A title may not be encumbered at the time of

transfer by new permit requirements transfer by new permit requirements by a by a

governmental entity for an onsite sewage governmental entity for an onsite sewage

treatment and disposal system which differ from treatment and disposal system which differ from

the permitting requirements in effect at the time the permitting requirements in effect at the time

the system was permitted, modified, or repaired;the system was permitted, modified, or repaired;

4.4. An inspection of a system may not be mandated An inspection of a system may not be mandated

by a governmental entity at the point of saleby a governmental entity at the point of sale in a in a

real estate transaction. This paragraph does not real estate transaction. This paragraph does not

affect a septic tank phaseaffect a septic tank phase--out deferral program out deferral program

implemented by a consolidated government.implemented by a consolidated government.

Section 381.0065 F.S. Section 381.0065 F.S. -- Onsite sewage Onsite sewage



5.5. An onsite sewage treatment and disposal system An onsite sewage treatment and disposal system

that serves a property that is foreclosed upon is that serves a property that is foreclosed upon is

not considered abandonednot considered abandoned..

6.6. A modification, replacement, or upgrade of an A modification, replacement, or upgrade of an

onsite sewage treatment and disposal system is onsite sewage treatment and disposal system is

not required for a remodeling addition to a singlenot required for a remodeling addition to a single--

family home if a bedroom is not addedfamily home if a bedroom is not added..

8/9/2012

36

HB 5001 NEW: Florida Forever and Other

Budget Appropriations. The Legislature

swept all monies collected for the Sadowski

Affordable Housing Trust Fund into general

revenue and appropriated the following funds:

$61 million for the State Economic Enhancement and

Development (SEED) Fund including affordable housing

$30 million for Everglades restoration

$27.5 million for Visit Florida (marketing)

$8.6 million for Enterprise Florida, a state economic

development agency.

$8.4 million for Florida Forever (state land acquisition)

$1.5 million to study nitrogen reduction and develop

passive septic systems

$285,000 to combat unlicensed activity

8/9/2012

37

HB 1127: HB 1127: NEW: Effective July 1, 2012NEW: Effective July 1, 2012

Citizens Citizens Property Insurance Property Insurance Corporation Corporation Citizens Citizens is a stateis a state--created, notcreated, not--forfor--profit, taxprofit, tax--exempt exempt

governmental entity whose governmental entity whose public purpose is topublic purpose is to

provide property insurance coverage to those unable provide property insurance coverage to those unable

to find affordable coverage in the voluntary admitted to find affordable coverage in the voluntary admitted

market.market. Citizens writes various types of property Citizens writes various types of property

insurance policies and separates the policies written insurance policies and separates the policies written

into the following accounts, based on the type of into the following accounts, based on the type of

policy: the Personal Lines Account (PLA), the policy: the Personal Lines Account (PLA), the

Commercial Lines Account (CLA), and the Coastal Commercial Lines Account (CLA), and the Coastal

Account. Account.

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If there is a catastrophic storm, Citizens levies If there is a catastrophic storm, Citizens levies

assessments in the following sequence set by statute: assessments in the following sequence set by statute:

1. 1. Citizens Policyholder Assessments: Citizens Policyholder Assessments:

Citizens assess its policyholders up to 15 percent of Citizens assess its policyholders up to 15 percent of

premium per account for a maximum total of 45 premium per account for a maximum total of 45

percent. This assessment is levied for one year. percent. This assessment is levied for one year. HB HB

1127 did not change this provision1127 did not change this provision..

2. 2. Regular Regular Assessments (Assessments (charged on all noncharged on all non--Citizens Citizens

policiespolicies): ): Upon Upon the exhaustion of the Citizens the exhaustion of the Citizens

Policyholder Assessment for a particular account, Policyholder Assessment for a particular account,

Citizens levies a regular assessment of up to six Citizens levies a regular assessment of up to six

percent of premium or six percent of the deficit per percent of premium or six percent of the deficit per

account, for a maximum total of 18 percent. account, for a maximum total of 18 percent. HB 1127 HB 1127

eliminated or reduced Regular Assessment limitseliminated or reduced Regular Assessment limits

The problem: The problem:

Private insurance companies were potentially required Private insurance companies were potentially required

to drain their surplus by being required to prepay the to drain their surplus by being required to prepay the

Citizens’ Regular Assessment and recoup it from Citizens’ Regular Assessment and recoup it from

policyholders over the following year.policyholders over the following year.

The Solution:The Solution:

HB 1127 eliminated the Regular Assessment for the HB 1127 eliminated the Regular Assessment for the

PLA and CLA and reduced the assessment percentage PLA and CLA and reduced the assessment percentage

for the Coastal Account from six percent down to two for the Coastal Account from six percent down to two

percent. The net result is that the amount of percent. The net result is that the amount of

assessments paid by Citizens’ policyholders is assessments paid by Citizens’ policyholders is

increased due to the virtual elimination of the Regular increased due to the virtual elimination of the Regular

Assessments. Assessments.

8/9/2012

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3. 3. Emergency Emergency Assessments: Upon Assessments: Upon the the

exhaustion of the Citizens Policyholder exhaustion of the Citizens Policyholder

Assessment and Regular Assessment for a Assessment and Regular Assessment for a

particular account, Citizens levies an particular account, Citizens levies an

Emergency Assessment of up to 10% of Emergency Assessment of up to 10% of

premium or 10 percent of the deficit per premium or 10 percent of the deficit per

account, for a maximum total of 30 percent. account, for a maximum total of 30 percent.

This assessment can be collected for as This assessment can be collected for as

many years as is necessary to cure a deficit. many years as is necessary to cure a deficit.

Emergency assessments are levied on Emergency assessments are levied on

virtually all property and casualty policies in virtually all property and casualty policies in

the state, including Citizens’ own policies. the state, including Citizens’ own policies.

The Problem:The Problem:

Citizens could require other insurers to pay the Citizens could require other insurers to pay the

assessment within 30 days.assessment within 30 days.

The The Solution:Solution:

While the law didn’t change the amount of the While the law didn’t change the amount of the

Emergency Assessment, it now specifies that Emergency Assessment, it now specifies that

they cannot order this assessment paid sooner they cannot order this assessment paid sooner

than 90 days after the assessment is levied. than 90 days after the assessment is levied.

AlsoAlso, Citizens may issue more pre, Citizens may issue more pre--event and event and

postpost--event bonds than it does currently to event bonds than it does currently to

ensure the corporation has sufficient cash to ensure the corporation has sufficient cash to

pay claims. pay claims.

8/9/2012

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HB 1101 NEWHB 1101 NEW: Effective Date: July 1, 2012: Effective Date: July 1, 2012

Options for challenging Citizens Options for challenging Citizens

replacement cost replacement cost estimates. estimates.

The The Problem: Problem:

Unreasonably high replacement cost Unreasonably high replacement cost

estimates may cause excessive estimates may cause excessive

homeowners’ insurance cost. The prime homeowners’ insurance cost. The prime

suspect: Citizen’s 360Value softwaresuspect: Citizen’s 360Value software.

The The Solution:Solution:

In establishing replacement costs, Citizen’s must In establishing replacement costs, Citizen’s must

accept a replacement cost valuation from any of the accept a replacement cost valuation from any of the

following sources and following sources and must use the lowest valuationmust use the lowest valuation

as the insured value of the dwelling, excluding land as the insured value of the dwelling, excluding land

value, provided the valuation was completed within the value, provided the valuation was completed within the

prior 12 months: prior 12 months:

11. . A replacement cost valuation software A replacement cost valuation software

2.2. An insurance replacement cost valuation by a An insurance replacement cost valuation by a

certified certified or licensed real estate appraiseror licensed real estate appraiser

3.3. A replacement cost valuation prepared by a A replacement cost valuation prepared by a

generalgeneral, building, or residential contractor or a , building, or residential contractor or a

professional professional engineer engineer

8/9/2012

41

HB 521 HB 521

Property Assessments Property Assessments

Previously a property appraiser determined Previously a property appraiser determined

the taxable value of a property, and that the taxable value of a property, and that

value was presumed correct unless the value was presumed correct unless the

taxpayer showed “clear and convincing taxpayer showed “clear and convincing

evidence” that the property appraiser was evidence” that the property appraiser was

wrong. wrong.

This bill retains the appraiser’s presumption, This bill retains the appraiser’s presumption,

but lowers the burden of proof on taxpayers but lowers the burden of proof on taxpayers

to overcome this presumption and win their to overcome this presumption and win their

case to a “preponderance of the evidence.”case to a “preponderance of the evidence.”

8/9/2012

42

HB 179 HB 179

Property Appraisers & 3D Technology Property Appraisers & 3D Technology

Taxpayers who miss the March 1 deadline to file Taxpayers who miss the March 1 deadline to file

their homestead exemption have an opportunity their homestead exemption have an opportunity

to submit their application late for up to 25 days to submit their application late for up to 25 days

without paying the $15 late fee. without paying the $15 late fee.

Another provision allows appraisers to use Another provision allows appraisers to use

images to value property rather than having to images to value property rather than having to

actually look at it in person. actually look at it in person.

Some appraisers believe that using imagery Some appraisers believe that using imagery

instead of physically visiting every property may instead of physically visiting every property may

save 25 percent to 50 percent of field inspection save 25 percent to 50 percent of field inspection

costs.costs.

8/9/2012

43

HB 701 HB 701

Tax Notices Tax Notices

This bill requires past and proposed millage This bill requires past and proposed millage

rates to be included on the Truth in Millage rates to be included on the Truth in Millage

(TRIM) Notices to taxpayers. (TRIM) Notices to taxpayers. Especially Especially

important if Amendment 4 passes.important if Amendment 4 passes.

SB 1580 SB 1580

Property Tax Payments Property Tax Payments

County tax collectors are allowed to accept County tax collectors are allowed to accept

partial payment of taxes under certain partial payment of taxes under certain

circumstances. This provision also established a circumstances. This provision also established a

deadline for payment of the remaining balance deadline for payment of the remaining balance

and imposes a processing fee on partial and imposes a processing fee on partial

payments.payments.

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Conservation EasementsConservation Easements

A voluntary, legally binding agreement A voluntary, legally binding agreement

between a landowner and a government between a landowner and a government

or nongovernment conservation or nongovernment conservation

organization that keeps land in agricultural organization that keeps land in agricultural

and/or open space uses. In most cases it and/or open space uses. In most cases it

is perpetual.is perpetual.

Landowner sells his or her right to develop all or Landowner sells his or her right to develop all or

part of their land for nonpart of their land for non--agricultural or nonagricultural or non--open open

space uses to the conservation organization. space uses to the conservation organization.

Current uses, including residential and Current uses, including residential and

recreational uses, agriculture, forestry, and recreational uses, agriculture, forestry, and

ranching can continue. ranching can continue.

Public access is not a requirement.Public access is not a requirement.

If If it it benefits the public by permanently protecting benefits the public by permanently protecting

important conservation resources and meets other important conservation resources and meets other

federal tax code requirements, it can qualify as a federal tax code requirements, it can qualify as a

taxtax--deductible charitable deductible charitable donation for the donation for the

difference between the land's value with the difference between the land's value with the

agreement and its value without the agreementagreement and its value without the agreement..

8/9/2012

45

HB 7157 HB 7157

Property Tax for Conservation Property Tax for Conservation

The bill grants an ad valorem tax The bill grants an ad valorem tax full exemption full exemption

to real property subject to a conservation to real property subject to a conservation

easement held in perpetuity for conservation easement held in perpetuity for conservation

purposes. purposes.

Commercial use land that is dedicated in Commercial use land that is dedicated in

perpetuity for conservation purposes is perpetuity for conservation purposes is

exempt from ad valorem taxation to the exempt from ad valorem taxation to the

extent of 50 percent of the assessed value of extent of 50 percent of the assessed value of

the land the land

Land less than 40 acres does not qualify unless Land less than 40 acres does not qualify unless

the Acquisition and Restoration Council finds the the Acquisition and Restoration Council finds the

conservation of the property is in the public conservation of the property is in the public

interest. interest.

Lands can be made subject to a 10 year Lands can be made subject to a 10 year

conservation plan and qualify for a lesser conservation plan and qualify for a lesser

assessment based on its conservation use.assessment based on its conservation use.

8/9/2012

46

SB 1196SB 1196

Condominium and HOA amendmentsCondominium and HOA amendments


Senate Bill 1196 amended the Condominium Act Senate Bill 1196 amended the Condominium Act

(Chapter 718) and Homeowners’ Associations (Chapter 718) and Homeowners’ Associations

(Chapter 720). (Chapter 720).

Chapter 718: Distressed Condominium Relief Chapter 718: Distressed Condominium Relief

Act 2010 and 2011Act 2010 and 2011

Tenant's Payment of Assessments in the Tenant's Payment of Assessments in the

Event of a Unit Owner's Failure to Do SoEvent of a Unit Owner's Failure to Do So

If a condominiumIf a condominium--unit owner is 90 days or more unit owner is 90 days or more

delinquent in paying monetary obligations to the delinquent in paying monetary obligations to the

condominium association, the bill now condominium association, the bill now

authorizes the condominium association to:authorizes the condominium association to:

Require that the condominiumRequire that the condominium--unit owner's unit owner's

tenant, in lieu of paying rent to the unit owner, tenant, in lieu of paying rent to the unit owner,

pay the rent directly to the condominium pay the rent directly to the condominium

association.association.

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Delinquent Assessments and Use of Delinquent Assessments and Use of

Common AreasCommon Areas

Suspend the right of a unit owner to use the Suspend the right of a unit owner to use the

common elements, common facilities or other common elements, common facilities or other

association property until the required association property until the required

assessments have been paid. assessments have been paid.

Termination of Owner’s Rights Termination of Owner’s Rights

Terminate the owner’s voting rights. Terminate the owner’s voting rights.

Remove from the Board.Remove from the Board.

Official RecordsOfficial Records

Specific association records may not be disclosed Specific association records may not be disclosed

to unit owners:to unit owners:

email addresses, telephone numbers and email addresses, telephone numbers and

emergency contact information emergency contact information

any addresses of a condominiumany addresses of a condominium--unit owner unit owner

other than as provided to fulfill the condominium other than as provided to fulfill the condominium

association's notice requirements association's notice requirements

personnel records of employees personnel records of employees

any electronic security measure that is used by any electronic security measure that is used by

the condominium association to safeguard data the condominium association to safeguard data

the software and operating system used by the the software and operating system used by the

condominium association condominium association

8/9/2012

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CompetencyCompetency

Within 90 days of being elected, all newly Within 90 days of being elected, all newly

elected or appointed directors must certify to the elected or appointed directors must certify to the

secretary of the condominium association that secretary of the condominium association that

they have read and will uphold the condominium they have read and will uphold the condominium

association's documents. association's documents.

The new directors may comply with this The new directors may comply with this

requirement by attending the required requirement by attending the required

community association manager course through community association manager course through

and an approved condominium educational and an approved condominium educational

provider. provider.

Larson Educational Services offers the required Larson Educational Services offers the required

course monthly.course monthly.

Bulk BuyersBulk Buyers

The "Condominium Bulk Buyer Law," as it has The "Condominium Bulk Buyer Law," as it has

been referred to, removes barriers to been referred to, removes barriers to

condominium bulk buyer acquisitions. Investors condominium bulk buyer acquisitions. Investors

who acquire title to more than seven who acquire title to more than seven

condominium units prior to July 1, 2012 condominium units prior to July 1, 2012

NEW: DBPR bill extends the time period to July NEW: DBPR bill extends the time period to July

1, 20151, 2015

will not be responsible for the original developer's will not be responsible for the original developer's

liabilities, including:liabilities, including:

developer warranties of fitness and merchantabilitydeveloper warranties of fitness and merchantability

8/9/2012

49

developer assessment or budget deficits developer assessment or budget deficits

the obligation to provide an audit during the time the obligation to provide an audit during the time

period in which the developer controlled the period in which the developer controlled the

association association

The Act specifies when a bulk buyer or bulk The Act specifies when a bulk buyer or bulk

assignee is mandated to turn over control of the assignee is mandated to turn over control of the

condominium association and what condominium association and what

documentation is required to be given to the documentation is required to be given to the

association at turnover. association at turnover.

The Act also specifies what documentation and The Act also specifies what documentation and

information a bulk buyer or bulk assignee must information a bulk buyer or bulk assignee must

provide for purchasers of units.provide for purchasers of units.

SB 714SB 714

Condominium insuranceCondominium insurance

This bill removed the requirement for This bill removed the requirement for

condominium owners to maintain insurance condominium owners to maintain insurance

coverage on individual units and eliminated the coverage on individual units and eliminated the

right of the association to “force place” a hazard right of the association to “force place” a hazard

and liability insurance policy on behalf of a unit and liability insurance policy on behalf of a unit

owner. owner.

Another break for condominium owners and Another break for condominium owners and

their associations was a delay until 2025 the their associations was a delay until 2025 the

retrofit requirements for certain sprinkler retrofit requirements for certain sprinkler

systems in common areas.systems in common areas.

8/9/2012

50

Chapter 720: Homeowners' AssociationsChapter 720: Homeowners' Associations

Official RecordsOfficial Records

In order to create a rebuttable presumption that In order to create a rebuttable presumption that

a homeowners' association (HOA) failed to a homeowners' association (HOA) failed to

provide access to the official records within 10 provide access to the official records within 10

business days as required by law, the request business days as required by law, the request

for records must be sent to the HOA by certified for records must be sent to the HOA by certified

mail, return receipt requested.mail, return receipt requested.

The following HOA records may not be disclosed The following HOA records may not be disclosed

to homeowners:to homeowners:

Social Security numbers Social Security numbers

driver's license numbers driver's license numbers

credit card numbers credit card numbers

electronic mailing addresses electronic mailing addresses

telephone numbers and emergency contact telephone numbers and emergency contact

information information

any addresses for a parcel owner other than as any addresses for a parcel owner other than as

provided for HOA notice requirements provided for HOA notice requirements

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other personal identifying information of any other personal identifying information of any

person, excluding the person's name, parcel person, excluding the person's name, parcel

designation, mailing address and property designation, mailing address and property

address; any electronic security measure that is address; any electronic security measure that is

used by the HOA to safeguard data, including used by the HOA to safeguard data, including

passwords; and the software and operating passwords; and the software and operating

system used by the HOA system used by the HOA

BudgetsBudgets

Upon the approval of the majority of the voting Upon the approval of the majority of the voting

interests in the HOA, homeowners are permitted interests in the HOA, homeowners are permitted

to terminate reserve accounts. to terminate reserve accounts.

The notice requirement for financial reports The notice requirement for financial reports

when no reserve accounts have been when no reserve accounts have been

established has been revised. established has been revised.

Additionally, there is now an additional Additionally, there is now an additional

disclosure for financial reports if reserve disclosure for financial reports if reserve

accounts have been established, and the accounts have been established, and the

accounting requirements for pooled reserve accounting requirements for pooled reserve

accounts has been amended.accounts has been amended.

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Board of DirectorsBoard of Directors

Directors, officers or committee members may Directors, officers or committee members may

not receive any salary or compensation from the not receive any salary or compensation from the

HOA for the performance of their duties and may HOA for the performance of their duties and may

not benefit in any other way financially from not benefit in any other way financially from

service to the HOA. service to the HOA.

This provision does not apply to a developer or This provision does not apply to a developer or

its representative.its representative.

Use of Common Areas and FinesUse of Common Areas and Fines

The HOA can suspend the right of a homeowner The HOA can suspend the right of a homeowner

and guest to use the common areas and and guest to use the common areas and

facilities but may not suspend the right to access facilities but may not suspend the right to access

the home. the home.

In addition to its ability to file a lien for unpaid In addition to its ability to file a lien for unpaid

assessments, the association may now file a lien assessments, the association may now file a lien

for an unpaid fine in excess of $1,000.for an unpaid fine in excess of $1,000.

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Tenant's Payment of Assessments in the Tenant's Payment of Assessments in the

Event of a Homeowner's Failure to Do SoEvent of a Homeowner's Failure to Do So

If a homeowner is 90 days or more delinquent in If a homeowner is 90 days or more delinquent in

paying monetary obligations to the HOA, the paying monetary obligations to the HOA, the

association may require that a homeowner's association may require that a homeowner's

tenant, in lieu of paying rent to the homeowner, tenant, in lieu of paying rent to the homeowner,

pay the rent directly to the HOA.pay the rent directly to the HOA.

Special AssessmentsSpecial Assessments

Before turnover, the developer cannot impose a Before turnover, the developer cannot impose a

special assessment, except if approved by a special assessment, except if approved by a

majority of nonmajority of non--developer owners.developer owners.

8/9/2012

54

S.A.F.E ACT S.A.F.E ACT

Chapter 494: Mortgage Loan OriginatorsChapter 494: Mortgage Loan Originators

The Secure and Fair Enforcement (SAFE) Act of 2008 The Secure and Fair Enforcement (SAFE) Act of 2008

imposed strict licensing and standards of conduct on imposed strict licensing and standards of conduct on

all mortgage loan originators in the United States. all mortgage loan originators in the United States.

The Act called for creation of the Nationwide Mortgage The Act called for creation of the Nationwide Mortgage

Licensing System (NMLS) and Registry to be Licensing System (NMLS) and Registry to be

developed and maintained by the Conference of State developed and maintained by the Conference of State

Bank Supervisors and the American association of Bank Supervisors and the American association of

Residential Mortgage Regulators. Residential Mortgage Regulators.

The purpose is to have all loan originators in the US The purpose is to have all loan originators in the US

licensed in each state in which they will conduct licensed in each state in which they will conduct

business and registered in the NMLS Registry. business and registered in the NMLS Registry.

The Florida Department of Financial Services became The Florida Department of Financial Services became

compliant on January 1, 2011. compliant on January 1, 2011.

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Chapter 494 F.S. defines Chapter 494 F.S. defines "Loan originator""Loan originator" as an as an

individualindividual who, directly or indirectly, who, directly or indirectly,

Solicits or offers to solicit a mortgage loan, Solicits or offers to solicit a mortgage loan,

Accepts or offers to accept an application for a Accepts or offers to accept an application for a

mortgage loan, mortgage loan,

Negotiates or offers to negotiate the terms or Negotiates or offers to negotiate the terms or

conditions of a new conditions of a new or existing or existing mortgage loan on mortgage loan on

behalf of a borrower or lender, behalf of a borrower or lender,

NEW: SB 1316 codified into the Florida S.A.F.E.

Mortgage Licensing Act the same language contained

in a federal act that allows Florida real estate licensees

to list and sell short sales without having to first obtain

a mortgage loan originator (MLO) license under

Chapter 494

Processes a mortgage loan application, or Processes a mortgage loan application, or

Negotiates or offers to negotiate the sale Negotiates or offers to negotiate the sale

of an existing mortgage loan to a of an existing mortgage loan to a

noninstitutionalnoninstitutional investor for compensation investor for compensation

or gain. or gain.

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The term The term does notdoes not include an include an employeeemployee of a of a

mortgage broker or mortgage lender who performs mortgage broker or mortgage lender who performs

only administrative or clerical tasks, including only administrative or clerical tasks, including

quoting available interest rates, quoting available interest rates,

physically handling a completed application physically handling a completed application

form, or form, or

transmitting a completed form to a lender on transmitting a completed form to a lender on

behalf of a prospective borrowerbehalf of a prospective borrower

"Mortgage broker""Mortgage broker" means a means a personperson conducting conducting

loan originator activities through one or more loan originator activities through one or more

licensed loan originators employed by the licensed loan originators employed by the

mortgage broker or as independent contractors mortgage broker or as independent contractors

to the mortgage broker. to the mortgage broker.

Each mortgage broker is required to hold a Each mortgage broker is required to hold a

license and appoint a licensed license and appoint a licensed principal loan principal loan

originator originator who is responsible for acts of the who is responsible for acts of the

mortgage broker.mortgage broker.

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"Mortgage lender""Mortgage lender" means a means a personperson making a making a

mortgage loan or servicing a mortgage loan for mortgage loan or servicing a mortgage loan for

others or, for compensation or gain, directly or others or, for compensation or gain, directly or

indirectly, selling or offering to sell a mortgage indirectly, selling or offering to sell a mortgage

loan to a loan to a noninstitutionalnoninstitutional investor. investor.

A mortgage lender is required to maintain a net A mortgage lender is required to maintain a net

worth of at least $63,000 at all times and is worth of at least $63,000 at all times and is

limited to servicing a mortgage loan for not to limited to servicing a mortgage loan for not to

exceed four months. exceed four months.

A mortgage lender who wishes to service in A mortgage lender who wishes to service in

addition to making mortgage loans is required to addition to making mortgage loans is required to

maintain a net worth in excess of $250,000 and maintain a net worth in excess of $250,000 and

receive a servicing endorsementreceive a servicing endorsement..

Exemptions from Chapter 494 RegulationExemptions from Chapter 494 Regulation

Any person operating exclusively as a registered Any person operating exclusively as a registered

loan originator in accordance with the S.A.F.E. loan originator in accordance with the S.A.F.E.

Mortgage Licensing Act of 2008 is exempt from Mortgage Licensing Act of 2008 is exempt from

licensure. licensure. NOW: Real estate licensees exemptNOW: Real estate licensees exempt

"Registered loan originator""Registered loan originator" means a loan means a loan

originator who is employed by a depository originator who is employed by a depository

institution or its regulated subsidiary, and who is institution or its regulated subsidiary, and who is

registered with and maintains a unique identifier registered with and maintains a unique identifier

through the Registry. through the Registry.

Also exempt are Also exempt are “depository institutions,”“depository institutions,”

meaning any Federal or State bank or savings meaning any Federal or State bank or savings

association or its regulated subsidiaries and association or its regulated subsidiaries and

agencies of the Federal government.agencies of the Federal government.

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Loan Originator License RequirementsLoan Originator License Requirements

There are 7 requirements to become a licensed There are 7 requirements to become a licensed

mortgage loan originator:mortgage loan originator:

1.1. Age Age -- The applicant must be at least 18 years of The applicant must be at least 18 years of

ageage

2.2. Education Education -- The applicant must have a high The applicant must have a high

school diploma or GED and complete a 20school diploma or GED and complete a 20--hour hour

prelicensingprelicensing class approved by the Registry.class approved by the Registry.

3.3. Examination Examination –– The applicant must pass the 100 The applicant must pass the 100

question SAFE National Component and a 60question SAFE National Component and a 60--

question SAFE State Component for each state question SAFE State Component for each state

in which the applicant will do business.in which the applicant will do business.

4.4. Application and fees Application and fees –– The applicant must The applicant must

submit a completed license application “Uniform submit a completed license application “Uniform

Individual Mortgage License/Registration & Individual Mortgage License/Registration &

Consent Form, MU4” plus a nonrefundable Consent Form, MU4” plus a nonrefundable

application fee of $195 plus $20 nonrefundable application fee of $195 plus $20 nonrefundable

Mortgage Guaranty Trust fee.Mortgage Guaranty Trust fee.

5.5. Credit report Credit report –– The applicant must authorize the The applicant must authorize the

Registry to obtain an independent credit report Registry to obtain an independent credit report

6.6. Employment Employment -- An individual may not act as a An individual may not act as a

loan originator unless he or she is an employee loan originator unless he or she is an employee

of, or an independent contractor for, a mortgage of, or an independent contractor for, a mortgage

broker or a mortgage lender. broker or a mortgage lender.

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7.7. Background check and fingerprints Background check and fingerprints –– The The

applicant must electronically submit fingerprints applicant must electronically submit fingerprints

for both the State Department of Law for both the State Department of Law

Enforcement criminal history background check Enforcement criminal history background check

and Federal FBI criminal history background and Federal FBI criminal history background

check.check.

Chapter 83, Florida Statutes: Landlords and Chapter 83, Florida Statutes: Landlords and

Tenants (NOT IN THE BOOK)Tenants (NOT IN THE BOOK)

Landlords and property managers must comply Landlords and property managers must comply

with Chapter 83 of the Florida Statutes. with Chapter 83 of the Florida Statutes.

The Florida Department of Agriculture and The Florida Department of Agriculture and

Consumer Services regulates landlords and Consumer Services regulates landlords and

Chapter 83 includes provisions that specify tenant Chapter 83 includes provisions that specify tenant

rights and landlord responsibilities. rights and landlord responsibilities.

Since Chapter 475 specifies that leasing and Since Chapter 475 specifies that leasing and

renting for compensation are real estate services renting for compensation are real estate services

that require a license, each licensee should be that require a license, each licensee should be

aware of the special requirements. aware of the special requirements.

In the following discussion, all provisions that apply In the following discussion, all provisions that apply

to the landlord also apply to a property manager.to the landlord also apply to a property manager.

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This information applies to those who rent a This information applies to those who rent a

dwelling unit as defined in Section dwelling unit as defined in Section 83.43, F. S83.43, F. S.:.:

"Dwelling unit" means:"Dwelling unit" means:

(a)(a) A structure or part of a structure that is A structure or part of a structure that is

rented for use as a home, residence, or sleeping rented for use as a home, residence, or sleeping

place by one person or by two or more persons place by one person or by two or more persons

who maintain a common household.who maintain a common household.

(b)(b) A mobile home rented by a tenant.A mobile home rented by a tenant.

(c)(c) A structure or part of a structure that is A structure or part of a structure that is

furnished, with or without rent, as an incident of furnished, with or without rent, as an incident of

employment for use as a home, residence, or employment for use as a home, residence, or

sleeping place by one or more personssleeping place by one or more persons

Rental agreements may be either written or oral, Rental agreements may be either written or oral,

however, the Statute of Frauds mandates that however, the Statute of Frauds mandates that

leases with a duration in excess of 12 months leases with a duration in excess of 12 months

must be in writing. must be in writing.

Most rental agreements are written because oral Most rental agreements are written because oral

agreements can be subject to agreements can be subject to

misunderstandings and are difficult to prove. misunderstandings and are difficult to prove.

A written rental agreement can be a formal A written rental agreement can be a formal

contract, or simply a copy of a letter stating the contract, or simply a copy of a letter stating the

rights and obligations of both the landlord and rights and obligations of both the landlord and

tenant. tenant.

Florida law requires that Florida law requires that notices to and from a notices to and from a

landlord must be in writing,landlord must be in writing, even if the rental even if the rental

agreement is oral. agreement is oral.

http://www.flsenate.gov/Statutes/index.cfm?App_mode=Display_Statute&Search_String=&URL=0000-0099/0083/Sections/0083.43.html

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Duration of tenancy. Duration of tenancy.

If the rental agreement contains no provision as If the rental agreement contains no provision as

to duration of the tenancy, the duration is to duration of the tenancy, the duration is

determined by the periods for which rent is determined by the periods for which rent is

payable (weekpayable (week--toto--week, monthweek, month--toto--month, etc.). month, etc.).

All other terms are either those specifically All other terms are either those specifically

addressed by law or those that are part of the addressed by law or those that are part of the

agreement between landlord and tenant.agreement between landlord and tenant.

Damage deposits. Damage deposits.

A landlord has the discretion to collect various A landlord has the discretion to collect various

deposits as well as some rent in advance. These deposits as well as some rent in advance. These

advance payments generally vary in range. A advance payments generally vary in range. A

landlord is entitled to charge a nonrefundable landlord is entitled to charge a nonrefundable

deposit as long as it is stated in the rental deposit as long as it is stated in the rental

agreement. agreement.

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A damage deposit is the most common A damage deposit is the most common

requirement of landlords. requirement of landlords.

At the time of the preAt the time of the pre--rental walkrental walk--through with through with

the tenant, ask the tenant to make note of the tenant, ask the tenant to make note of

damaged items or areas, worn rugs, broken damaged items or areas, worn rugs, broken

fixtures, etc. and each keep a copy. fixtures, etc. and each keep a copy.

This will help eliminate or minimize disputes This will help eliminate or minimize disputes

later.later.

When the tenant moves out after giving proper When the tenant moves out after giving proper

notice, the landlord must return the deposit notice, the landlord must return the deposit

within 15 days of termination of the rental within 15 days of termination of the rental

agreement if there is no intent to impose a claim agreement if there is no intent to impose a claim

upon the security deposit. upon the security deposit.

If the landlord is keeping all or a portion of the If the landlord is keeping all or a portion of the

deposit, the landlord must justify in writing by deposit, the landlord must justify in writing by

certified mail, to the tenant's last known mailing certified mail, to the tenant's last known mailing

address within 30address within 30--days of termination, why they days of termination, why they

are keeping a portion of or all of the deposit. are keeping a portion of or all of the deposit.

The notice must be in substantially the following The notice must be in substantially the following

format:format:

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If the notice is not sent as required within the 30If the notice is not sent as required within the 30--

day period, the landlord forfeits any right to impose day period, the landlord forfeits any right to impose

a claim upon the deposit.a claim upon the deposit.

If the tenant does not object to the imposition or If the tenant does not object to the imposition or

the amount of the landlord’s claim within 15 days the amount of the landlord’s claim within 15 days

after receipt of the notice of intent to impose a after receipt of the notice of intent to impose a

claim, the landlord has the right to deduct the claim, the landlord has the right to deduct the

amount of the claim and remit the balance of the amount of the claim and remit the balance of the

deposit within 30 days after the date of the deposit within 30 days after the date of the

notice of intention to impose a claim for notice of intention to impose a claim for

damages. damages.

An objecting tenant may file a complaint with the An objecting tenant may file a complaint with the

Department of Agriculture and Consumer Department of Agriculture and Consumer

Services or institute an action in a court of Services or institute an action in a court of

competent jurisdiction to adjudicate the competent jurisdiction to adjudicate the

landlord’s right to the security deposit. landlord’s right to the security deposit.

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Property maintenance. Property maintenance.

Property maintenance is the responsibility of Property maintenance is the responsibility of

both the tenant and the landlord. both the tenant and the landlord.

The landlord must provide a healthy, properly The landlord must provide a healthy, properly

maintained place to live. maintained place to live.

The tenant is required to keep the premises in The tenant is required to keep the premises in

good condition and to occupy them as a good condition and to occupy them as a

peaceful neighbor.peaceful neighbor.

There are certain responsibilities that apply to There are certain responsibilities that apply to

each party as outlined by law.each party as outlined by law.

Landlord ResponsibilitiesLandlord Responsibilities

The landlord's responsibilities will depend on the The landlord's responsibilities will depend on the

type of rental unit. type of rental unit.

Dwelling unit. Dwelling unit. The landlord of a dwelling unit at The landlord of a dwelling unit at

all times during the tenancy shall:all times during the tenancy shall:

Comply with the requirements of applicable Comply with the requirements of applicable

building, housing and health codes; or building, housing and health codes; or

Where there are no applicable building, housing Where there are no applicable building, housing

or health codes; maintain the roof, windows, or health codes; maintain the roof, windows,

screens, floors, steps, porches, exterior walls, screens, floors, steps, porches, exterior walls,

foundations and all other structural components foundations and all other structural components

in good repair and capable of resisting normal in good repair and capable of resisting normal

forces and loads; forces and loads;

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Keep the plumbing in reasonably good working Keep the plumbing in reasonably good working

condition. condition.

If the dwelling is a singleIf the dwelling is a single--family home or duplex, family home or duplex,

install a working smoke detection device.install a working smoke detection device.

The landlord's obligations may be altered or The landlord's obligations may be altered or

modified in writing with respect to a single family modified in writing with respect to a single family

dwelling or duplex. dwelling or duplex.

Additional responsibilities for 3 units or Additional responsibilities for 3 units or

more. more. In addition to providing the above In addition to providing the above

requirements, the landlord of a dwelling unit requirements, the landlord of a dwelling unit

other than a singleother than a single--family home or duplex shall, family home or duplex shall,

at all times of the tenancy, make reasonable at all times of the tenancy, make reasonable

provisions for:provisions for:

Extermination of rats, mice, ants and wood Extermination of rats, mice, ants and wood

destroying organisms and bed bugs.destroying organisms and bed bugs.

Locks and keys.Locks and keys.

Clean and safe conditions of common areas.Clean and safe conditions of common areas.

Garbage removal and outside receptacles.Garbage removal and outside receptacles.

Functioning facilities for heat during winter, Functioning facilities for heat during winter,

running water and hot water.running water and hot water.

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Tenant ResponsibilitiesTenant Responsibilities

A tenant, at all times during the tenancy shall: A tenant, at all times during the tenancy shall:

Comply with all building, housing and health Comply with all building, housing and health

codes.codes.

Keep the dwelling clean and sanitary.Keep the dwelling clean and sanitary.

Remove garbage from the dwelling in a clean Remove garbage from the dwelling in a clean

and sanitary manner.and sanitary manner.

Keep plumbing fixtures clean, sanitary and in Keep plumbing fixtures clean, sanitary and in

repair.repair.

Not destroy, deface, damage, impair or remove Not destroy, deface, damage, impair or remove

any part of the premises or property belonging to any part of the premises or property belonging to

the landlord, nor permit any person to do so.the landlord, nor permit any person to do so.

Conduct him/herself, and require other persons Conduct him/herself, and require other persons

on the premises with his/her consent, to conduct on the premises with his/her consent, to conduct

themselves in a manner that does not themselves in a manner that does not

unreasonably disturb the tenant's neighbors or unreasonably disturb the tenant's neighbors or

constitute a breach of the peace.constitute a breach of the peace.

Use and operate in a reasonable manner all Use and operate in a reasonable manner all

electrical, plumbing, sanitary, heating, electrical, plumbing, sanitary, heating,

ventilating, airventilating, air--conditioning and other facilities conditioning and other facilities

and appliances, including elevators.and appliances, including elevators.

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Landlord’s Right to EnterLandlord’s Right to Enter

The landlord can enter at reasonable times with The landlord can enter at reasonable times with

proper notice to inspect, make necessary or proper notice to inspect, make necessary or

agreed repairs, decorations, alterations or agreed repairs, decorations, alterations or

improvements, supply agreed services or show it improvements, supply agreed services or show it

to a prospective or actual purchaser, tenant, to a prospective or actual purchaser, tenant,

mortgagee, worker or contractor.mortgagee, worker or contractor.

The landlord may also enter at any time when:The landlord may also enter at any time when:

The tenant has given consent; The tenant has given consent;

In an emergency;In an emergency;

The tenant unreasonably withholds consent; The tenant unreasonably withholds consent;

and/or, and/or,

The tenant is absent from the premises for a The tenant is absent from the premises for a

period of time equal to oneperiod of time equal to one--half the time for half the time for

periodic rental payments. If the rent is current periodic rental payments. If the rent is current

and the tenant notifies the landlord of an and the tenant notifies the landlord of an

intended absence, then the landlord may enter intended absence, then the landlord may enter

only with the consent of the tenant or for the only with the consent of the tenant or for the

protection or preservation of the premises.protection or preservation of the premises.

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If the landlord does not comply. If the landlord does not comply.

The tenant may withhold rent if the landlord fails The tenant may withhold rent if the landlord fails

to do what the law or rental agreement requires. to do what the law or rental agreement requires.

The tenant must announce the intention to The tenant must announce the intention to

withhold rent at least seven days before the rent withhold rent at least seven days before the rent

is due to allow time to remedy the problem. is due to allow time to remedy the problem.

If the problem is not corrected within the seven If the problem is not corrected within the seven

days and the tenant withholds the rent, the days and the tenant withholds the rent, the

landlord may take the tenant to court to collect it. landlord may take the tenant to court to collect it.

Under these circumstances, the tenant must pay Under these circumstances, the tenant must pay

the rent into the court registry, pending the the rent into the court registry, pending the

judge's determination in the case. judge's determination in the case.

If the tenant does not comply If the tenant does not comply The landlord The landlord

may evict a tenant for not living up to the may evict a tenant for not living up to the

agreement. The process of removal depends on agreement. The process of removal depends on

the breach. the breach.

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Eviction ProcessEviction Process

Except for the failure to pay rent, a landlord must Except for the failure to pay rent, a landlord must

notify the tenant in writing of any shortcomings notify the tenant in writing of any shortcomings

and give seven days in which to correct the and give seven days in which to correct the

situation. situation.

If the tenant has not complied after seven days, If the tenant has not complied after seven days,

the landlord can begin the eviction process the landlord can begin the eviction process

based on nonbased on non--compliance.compliance.

Under certain circumstances Under certain circumstances -- destruction, destruction,

damage, misuse of property, unreasonable damage, misuse of property, unreasonable

disturbances disturbances -- the landlord does not have to give the landlord does not have to give

the opportunity to remedy the problem and may the opportunity to remedy the problem and may

terminate tenancy by giving a seventerminate tenancy by giving a seven--day written day written

notice. notice.

A landlord MAY NOT evict solely in retaliation for A landlord MAY NOT evict solely in retaliation for

the tenant complaining to a governmental the tenant complaining to a governmental

agency about code violations or asserting other agency about code violations or asserting other

tenant rights.tenant rights.

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NonNon--payment of rent. payment of rent.

The landlord must serve the tenant a written The landlord must serve the tenant a written

notice allowing three days (excluding weekends notice allowing three days (excluding weekends

and legal holidays) to pay the rent or move from and legal holidays) to pay the rent or move from

the premises. the premises.

If the tenant does not pay the rent or move, the If the tenant does not pay the rent or move, the

landlord may begin legal eviction action. landlord may begin legal eviction action.

In order for the landlord to gain payment of rent In order for the landlord to gain payment of rent

or possession of the dwelling, the landlord files or possession of the dwelling, the landlord files

suit in county court. suit in county court.

If the court agrees with the landlord, the tenant If the court agrees with the landlord, the tenant

will be notified in writing. will be notified in writing.

The tenant then has five days (excluding The tenant then has five days (excluding

weekends and legal holidays) to respond weekends and legal holidays) to respond –– also also

in writing in writing –– to the court. to the court.

If the tenant does not respond or a judgment is If the tenant does not respond or a judgment is

entered against the tenant, the clerk of the entered against the tenant, the clerk of the

county court will issue a “Writ of Possession” to county court will issue a “Writ of Possession” to

the sheriff who will notify the tenant that eviction the sheriff who will notify the tenant that eviction

will take place in 24 hours.will take place in 24 hours.

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Termination of tenancy. Termination of tenancy.

The rental agreement should include a The rental agreement should include a

specification of notice requirements. specification of notice requirements.

In the case of a tenancy at will that does not In the case of a tenancy at will that does not

have a specific termination date, Chapter 83 have a specific termination date, Chapter 83

specifies the number of days written notice that specifies the number of days written notice that

is required prior to termination. is required prior to termination.

Rental intervalRental interval Notice requiredNotice required

Weekly Weekly ------------------ 7 days7 days

Monthly Monthly ---------------- 15 days15 days

Quarterly Quarterly -------------- 30 days30 days

Yearly Yearly -------------------- 60 days60 days

Under certain circumstances, if allowed by the Under certain circumstances, if allowed by the

provisions of the rental agreement, a rental provisions of the rental agreement, a rental

agreement may be ended when either party agreement may be ended when either party

gives written notice to the other of their intention. gives written notice to the other of their intention.

It is recommended that all correspondence It is recommended that all correspondence

relating to intentions should be delivered by relating to intentions should be delivered by

certified mail or by hand (insist on a receipt).certified mail or by hand (insist on a receipt).

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Landlord Prohibited ActionsLandlord Prohibited Actions

Florida Law does not allow a landlord to force a Florida Law does not allow a landlord to force a

tenant out by:tenant out by:

Shutting off the utilities or interrupting service, Shutting off the utilities or interrupting service,

even if that service is under the control of or the even if that service is under the control of or the

landlord makes payment; landlord makes payment;

Changing the locks or using a device that denies Changing the locks or using a device that denies

the tenant access; the tenant access;

Removing the outside doors, locks, roof, walls or Removing the outside doors, locks, roof, walls or

windows (except for purposes of maintenance, windows (except for purposes of maintenance,

repair or replacement); and/or repair or replacement); and/or

Removing the tenant's personal property from Removing the tenant's personal property from

the dwelling unless action is taken after the dwelling unless action is taken after

surrender, abandonment, recovery of surrender, abandonment, recovery of

possession of the dwelling unit due to the death possession of the dwelling unit due to the death

of the last remaining tenant in accordance with of the last remaining tenant in accordance with

section 83.59(3)(d), or lawful eviction. section 83.59(3)(d), or lawful eviction.

However, pursuant to Chapter 83.67(5), the However, pursuant to Chapter 83.67(5), the

landlord is not required to comply with the landlord is not required to comply with the

provisions for storage or disposition of the provisions for storage or disposition of the

tenant’s personal property if the following tenant’s personal property if the following

disclosure is given to the tenant:disclosure is given to the tenant:

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If any of the above violations , the tenant may If any of the above violations , the tenant may

sue for actual and consequential damages or sue for actual and consequential damages or

three months' rent, whichever is greater, plus three months' rent, whichever is greater, plus

court costs and attorney's fees. court costs and attorney's fees.

Lease TerminationLease Termination

One of the most important responsibilities as a One of the most important responsibilities as a

tenant is to leave the premises in a clean tenant is to leave the premises in a clean

condition for the next occupant. condition for the next occupant.

A good tenant will be sure to vacuum, sweep, A good tenant will be sure to vacuum, sweep,

clean all rooms, cabinets and appliances, as clean all rooms, cabinets and appliances, as

well as other areas specified in the terms and well as other areas specified in the terms and

conditions of the rental agreement. conditions of the rental agreement.

Take a last walkTake a last walk--through, note any damages in through, note any damages in

writing and reach a final agreement. writing and reach a final agreement.

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Special provisions for military members. Special provisions for military members.

Section 83.682 specifies the right of termination Section 83.682 specifies the right of termination

of a rental agreement by a of a rental agreement by a servicememberservicemember..

Any Any servicememberservicemember may terminate his or her may terminate his or her

rental agreement by providing the landlord with rental agreement by providing the landlord with

a written notice of termination accompanied by a written notice of termination accompanied by

either a copy of the official military orders or a either a copy of the official military orders or a

written verification signed by the written verification signed by the

servicemember’sservicemember’s commanding officer. commanding officer.

The termination will be effective on the date The termination will be effective on the date

stated in the notice, which must be at least 30 stated in the notice, which must be at least 30

days after the landlord’s receipt of the notice, if days after the landlord’s receipt of the notice, if

any of the following criteria are met:any of the following criteria are met:

The The servicememberservicemember is required, pursuant to a is required, pursuant to a

permanent change of station orders, to move 35 permanent change of station orders, to move 35

miles or more from the location of the rental miles or more from the location of the rental

premises;premises;

The The servicememberservicemember is prematurely or is prematurely or

involuntarily discharged or released from active involuntarily discharged or released from active

duty or state active duty;duty or state active duty;

The The servicememberservicemember is released from active duty is released from active duty

or state active duty after having leased the rental or state active duty after having leased the rental

premises while on active duty or state active premises while on active duty or state active

duty status and the rental premises is 35 miles duty status and the rental premises is 35 miles

or more from the or more from the servicemember’sservicemember’s home of home of

record prior to entering active duty or state record prior to entering active duty or state

active duty;active duty;

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After entering into a rental agreement, the After entering into a rental agreement, the

servicememberservicemember receives military orders requiring receives military orders requiring

him or her to move into government quarters or him or her to move into government quarters or

the the servicememberservicemember becomes eligible to live in becomes eligible to live in

and opts to move into government quarters;and opts to move into government quarters;

The The servicememberservicemember receives temporary duty receives temporary duty

orders, temporary change of station orders, or orders, temporary change of station orders, or

state active duty orders to an area 35 miles or state active duty orders to an area 35 miles or

more from the location of the rental premises, more from the location of the rental premises,

provided such orders are for a period exceeding provided such orders are for a period exceeding

60 days; or60 days; or

The The servicememberservicemember has leased the property, but has leased the property, but

prior to taking possession of the rental premises, prior to taking possession of the rental premises,

receives a change of orders to an area that is 35 receives a change of orders to an area that is 35

miles or more from the location of the rental miles or more from the location of the rental

premises.premises.

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In the event a In the event a servicememberservicemember dies during active dies during active

duty, an adult member of his or her immediate duty, an adult member of his or her immediate

family may terminate the family may terminate the servicemember’sservicemember’s rental rental

agreement by providing the landlord with a agreement by providing the landlord with a

written notice of termination to be effective on written notice of termination to be effective on

the date stated in the notice that is at least 30 the date stated in the notice that is at least 30

days after the landlord’s receipt of the notice. days after the landlord’s receipt of the notice.

The notice to the landlord must be accompanied The notice to the landlord must be accompanied

by either a copy of the official military orders by either a copy of the official military orders

showing the showing the servicememberservicemember was on active duty was on active duty

or a written verification signed by the or a written verification signed by the

servicemember’sservicemember’s commanding officer and a commanding officer and a

copy of the copy of the servicemember’sservicemember’s death certificate.death certificate.

Upon termination of a rental agreement under Upon termination of a rental agreement under

this section, the tenant is liable for the rent due this section, the tenant is liable for the rent due

under the rental agreement prorated to the under the rental agreement prorated to the

effective date of the termination payable at such effective date of the termination payable at such

time as would have otherwise been required by time as would have otherwise been required by

the terms of the rental agreement. the terms of the rental agreement.

The tenant is not liable for any other rent or The tenant is not liable for any other rent or

damages due to the early termination of the damages due to the early termination of the

tenancy as provided for in this section. tenancy as provided for in this section.

Notwithstanding any provision of this section to Notwithstanding any provision of this section to

the contrary, if a tenant terminates the rental the contrary, if a tenant terminates the rental

agreement pursuant to this section 14 or more agreement pursuant to this section 14 or more

days prior to occupancy, no damages or days prior to occupancy, no damages or

penalties of any kind will be assessable.penalties of any kind will be assessable.

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The provisions of this section may not be waived The provisions of this section may not be waived

or modified by the agreement of the parties or modified by the agreement of the parties

under any circumstances.under any circumstances.

LeadLead--Based Paint DisclosureBased Paint Disclosure

Studies suggest that lead exposure from Studies suggest that lead exposure from

deteriorated residential leaddeteriorated residential lead--based paint, based paint,

contaminated soil, and lead in dust are among contaminated soil, and lead in dust are among

the major existing sources of lead exposure the major existing sources of lead exposure

among children in the United States. among children in the United States.

Section 1018 of the Residential LeadSection 1018 of the Residential Lead--Based Based

Paint Hazard Reduction Act of 1992 directed Paint Hazard Reduction Act of 1992 directed

EPA and HUD to jointly issue regulations EPA and HUD to jointly issue regulations

requiring disclosure of known leadrequiring disclosure of known lead--based paint based paint

and/or lead based paint hazards by persons and/or lead based paint hazards by persons

selling or leasing housing constructed before the selling or leasing housing constructed before the

phaseoutphaseout of residential leadof residential lead--basedbased

paint use in 1978. Under that authority, EPA and paint use in 1978. Under that authority, EPA and

HUD established the following requirements: HUD established the following requirements:

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Disclosure. Disclosure.

Sellers and Sellers and lessorslessors of most residential housing of most residential housing

built before 1978 must disclose the presence of built before 1978 must disclose the presence of

known leadknown lead--based paint and/or lead based paint based paint and/or lead based paint

hazards in the housing. hazards in the housing.

They must also provide purchasers and lessees They must also provide purchasers and lessees

with any available records or reports pertaining with any available records or reports pertaining

to the presence of leadto the presence of lead--based paint and/or leadbased paint and/or lead--

based paint hazards.based paint hazards.

EPA pamphlet. EPA pamphlet.

Sellers and Sellers and lessorslessors must provide purchasers must provide purchasers

and lessees with the federally approved lead and lessees with the federally approved lead

hazard information pamphlet EPA 747hazard information pamphlet EPA 747--KK--9999--

001, “Protect Your Family from Lead in Your 001, “Protect Your Family from Lead in Your

Home.”Home.”

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Inspection opportunity. Inspection opportunity.

Sellers must provide purchasers with a 10Sellers must provide purchasers with a 10--day day

opportunity to conduct a risk assessment or opportunity to conduct a risk assessment or

inspection for the presence of leadinspection for the presence of lead--based paint based paint

and/or leadand/or lead--based paint hazards before the based paint hazards before the

purchaser is obligated under any purchase purchaser is obligated under any purchase

contract.contract.

Contract language. Contract language.

Sales and leasing contracts must include certain Sales and leasing contracts must include certain

disclosure and acknowledgment languagedisclosure and acknowledgment language

Real estate licensee obligations. Real estate licensee obligations.

Agents must ensure compliance with these Agents must ensure compliance with these

requirements.requirements.

These provisions ensure that families receive These provisions ensure that families receive

both specific information on the housing’s lead both specific information on the housing’s lead

history and general information on lead history and general information on lead

exposure prevention. exposure prevention.

With this information, consumers can make With this information, consumers can make

more informed decisions concerning home more informed decisions concerning home

purchase, lease, and maintenance to protect purchase, lease, and maintenance to protect

their families from lead hazard exposure.their families from lead hazard exposure.

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Exceptions. Exceptions. The following properties are exempt The following properties are exempt

from the disclosure requirements:from the disclosure requirements:

Housing for the elderlyHousing for the elderly

Housing for persons aged 6 and above with Housing for persons aged 6 and above with

disabilitiesdisabilities

Units with no bedrooms, including dormitories, Units with no bedrooms, including dormitories,

efficiency apartments or studio apartmentsefficiency apartments or studio apartments

Leases of 100 days or lessLeases of 100 days or less

Foreclosure salesForeclosure sales

Houses declared leadHouses declared lead--free by a certified risk free by a certified risk

assessor or inspectorassessor or inspector

EPA Renovation, Repair and Painting ProgramEPA Renovation, Repair and Painting Program

Under the Residential LeadUnder the Residential Lead--based Hazard based Hazard

Reduction Act of 1992, Congress required EPA Reduction Act of 1992, Congress required EPA

to develop regulations to address renovation, to develop regulations to address renovation,

repair and painting (RRP) activities in single and repair and painting (RRP) activities in single and

multimulti--family housing built before 1978. family housing built before 1978.

Common renovation activities like sanding, Common renovation activities like sanding,

cutting, and demolition can create hazardous cutting, and demolition can create hazardous

lead dust and chips by disturbing leadlead dust and chips by disturbing lead--based based

paint, which can be harmful to adults and paint, which can be harmful to adults and

children. The primary purpose of the new rule is children. The primary purpose of the new rule is

to reduce exposure to dust containing lead paint to reduce exposure to dust containing lead paint

created during the course of these activities. created during the course of these activities.

This rule went into effect on April 22, 2010. This rule went into effect on April 22, 2010.

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Application of the rule. Application of the rule.

The requirements apply to renovation, repair or The requirements apply to renovation, repair or

painting activities in single and multipainting activities in single and multi--family family

housing built before 1978. housing built before 1978.

It generally does not apply to property owners It generally does not apply to property owners

conducting the RRP themselves; if the house or conducting the RRP themselves; if the house or

components test lead free by a Certified Risk components test lead free by a Certified Risk

Assessor, Lead Inspector or Certified Renovator; Assessor, Lead Inspector or Certified Renovator;

or to minor maintenance or repair activities or to minor maintenance or repair activities

where less than six square feet of leadwhere less than six square feet of lead--based based

paint is disturbed in a room or where less than paint is disturbed in a room or where less than

20 square feet of lead20 square feet of lead--based paint is disturbed based paint is disturbed

on the exterior. The exception does not apply to on the exterior. The exception does not apply to

window replacement, demolition, or prohibited window replacement, demolition, or prohibited

practices. practices.

Training and certification. Training and certification.

The rule requires contractors and renovators to The rule requires contractors and renovators to

get trained and certified in EPA's new leadget trained and certified in EPA's new lead--

based paint work practices. based paint work practices.

The rules apply only to licensed contractors, The rules apply only to licensed contractors,

maintenance workers in multimaintenance workers in multi--family housing, family housing,

and painters and other specialty trades. and painters and other specialty trades.

DoDo--itit--yourselfers will still be able to do RRP work yourselfers will still be able to do RRP work

on their own without being trained or certified on their own without being trained or certified

and without getting fined. and without getting fined.

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LeadLead--safe work practices. safe work practices.

Contractors are required to use leadContractors are required to use lead--safe work safe work

practices and follow these three simple practices and follow these three simple

procedures: procedures:

1.1. Contain the work areaContain the work area

2.2. Minimize dustMinimize dust

3.3. Clean up thoroughlyClean up thoroughly

Impact on Florida real estate licensees. Impact on Florida real estate licensees.

The National Association of REALTORS® (NAR) The National Association of REALTORS® (NAR)

has written a statement indicating that has written a statement indicating that

“Compliance responsibilities for real estate “Compliance responsibilities for real estate

professionals under this new rule are minimal. professionals under this new rule are minimal.

However, real estate professionals with some However, real estate professionals with some

property management activity and property property management activity and property

managers may face some additional compliance managers may face some additional compliance

activities.” REALTORS may get additional activities.” REALTORS may get additional

information at:information at:

http://www.realtor.org/government_affairs/leadhttp://www.realtor.org/government_affairs/lead

_paint_main._paint_main.

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The majority of the compliance is the The majority of the compliance is the

responsibility of the contractors and remodelers responsibility of the contractors and remodelers

and not the real estate licensee. There are no and not the real estate licensee. There are no

new disclosure compliance responsibilities, no new disclosure compliance responsibilities, no

new forms, or revisions to the existing lead new forms, or revisions to the existing lead

disclosure forms. There are, however, some disclosure forms. There are, however, some

situations in which the licensee faces situations in which the licensee faces

requirements:requirements:

1. 1. Testing. Testing. The results of any testing that is The results of any testing that is

associated with any Renovation, Repair and associated with any Renovation, Repair and

Painting (RRP) activities must be disclosed.Painting (RRP) activities must be disclosed.

2.2. Recommended contractors. Recommended contractors. The licensee The licensee

should be certain to only recommend certified should be certain to only recommend certified

contractors to transaction participants.contractors to transaction participants.

3.3. Property managers. Property managers. While the requirements While the requirements

do not apply to dodo not apply to do--itit--yourselfers, it does apply yourselfers, it does apply

to those who perform contracting services for to those who perform contracting services for

others. As a result, property managers must others. As a result, property managers must

be trained and certified in order to perform be trained and certified in order to perform

RRP work themselves for managed RRP work themselves for managed

properties. If outside contractors are hired, the properties. If outside contractors are hired, the

property manager must be certain that the property manager must be certain that the

contractors are trained and certified.contractors are trained and certified.

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Chapter 475 Real Estate Service Chapter 468 Community Association Management

Clarification of ‘community association management’ versus ‘property management’

Chapter 475 definition of real estate service:

For another and for compensation does, attempts, or offers to: advertise, buy, appraise, rent, sell, auction, lease, or exchange any interest in real property, business enterprise or business opportunity.

Management exceptions:

Salaried on-site leasing agent employed by

owner or broker of an apartment community;

Salaried manager of a condominium or

cooperative complex arranging leases for 1 year

or less

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Chapter 468 definition of ‘community association

management:’

“Community association management" means

doing the following for remuneration and when the

association or associations served contain more

than 10 units or have an annual budget or budgets

in excess of $100,000 :

a. controlling or disbursing funds

b. preparing budgets or other financial

documents

c. assisting in noticing or conduct of community

association meetings, and

d. coordinating (supervising) maintenance and

other day-to-day services

EXCEPTIONS: A person who performs

clerical or ministerial functions under the

direct supervision and control of a licensed

manager or who only performs

maintenance of a community association

and who does not assist in management

services is not required to be licensed

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The FREC, established in 1925, must promote the The FREC, established in 1925, must promote the

advancement of education of licensees in ethics, advancement of education of licensees in ethics,

law and brokerage practices. The sevenlaw and brokerage practices. The seven--member member

GovernorGovernor--appointed Commission serves 4appointed Commission serves 4--year year

terms and is composed of terms and is composed of

four members who must be licensed brokers, four members who must be licensed brokers,

each of whom has held an active license for the each of whom has held an active license for the

five years preceding appointment; five years preceding appointment;

one member who must be a licensed broker or a one member who must be a licensed broker or a

licensed sales associate who has held an active licensed sales associate who has held an active

license for the two years preceding appointment; license for the two years preceding appointment;

andand

two consumer members who are not, and have two consumer members who are not, and have

never been, brokers or sales associates. never been, brokers or sales associates.

At least one member of the Commission must be At least one member of the Commission must be

60 years of age or older. 60 years of age or older.

The Florida Real Estate Commission provides The Florida Real Estate Commission provides

information to the general public and licensees information to the general public and licensees

regarding the following relevant real estate regarding the following relevant real estate

related statutes and rules: related statutes and rules:

Chapter 475, Part I, Florida Statutes, The Real Chapter 475, Part I, Florida Statutes, The Real

Estate License Law Estate License Law

Chapter 61J2, Florida Administrative Code, Chapter 61J2, Florida Administrative Code,

Rules of the Florida Real Estate CommissionRules of the Florida Real Estate Commission

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Chapter 455, Florida Statutes, Regulation of Chapter 455, Florida Statutes, Regulation of

Professions and OccupationsProfessions and Occupations

Chapter 215, Florida Statutes, Financial Matters; Chapter 215, Florida Statutes, Financial Matters;

General ProvisionsGeneral Provisions

Chapter 120, Florida Statutes, Administrative Chapter 120, Florida Statutes, Administrative

Procedures Act Procedures Act

Chapter 20, Florida Statutes, Organizational Chapter 20, Florida Statutes, Organizational

Structure Structure

Division of Real Estate (DRE)Division of Real Estate (DRE)

The Division of Real Estate (DRE), based in The Division of Real Estate (DRE), based in

Orlando, is responsible for the examination, Orlando, is responsible for the examination,

licensing, and regulation of over 300,000 licensing, and regulation of over 300,000

individuals, corporations, real estate schools, individuals, corporations, real estate schools,

and instructors. The Division provides and instructors. The Division provides

administrative support to the Florida Real Estate administrative support to the Florida Real Estate

Commission (FREC) and the Florida Real Estate Commission (FREC) and the Florida Real Estate

Appraisal Board (FREAB). Appraisal Board (FREAB).

The DRE is funded by fees and assessments The DRE is funded by fees and assessments

paid by licensees and applicants to the Florida paid by licensees and applicants to the Florida

Real Estate Commission and the Florida Real Real Estate Commission and the Florida Real

Estate Appraisal Board. These monies are to be Estate Appraisal Board. These monies are to be

used only to fund real estate regulation. used only to fund real estate regulation.

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ADMINISTRATIVE ACTIONSADMINISTRATIVE ACTIONS

The Commission is also empowered to take The Commission is also empowered to take

disciplinary action against a person who has disciplinary action against a person who has

violated the provisions of Chapter 475, Florida violated the provisions of Chapter 475, Florida

Statutes or Chapter 61J2, Florida Administrative Statutes or Chapter 61J2, Florida Administrative

Code. Code.

“The commission may deny an application for “The commission may deny an application for

licensure, registration, or permit, or renewal licensure, registration, or permit, or renewal

thereof; may place a licensee, registrant, or thereof; may place a licensee, registrant, or

permitteepermittee on probation; may suspend a license, on probation; may suspend a license,

registration, or permit for a period not exceeding registration, or permit for a period not exceeding

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

permit; may impose an administrative fine not to permit; may impose an administrative fine not to

exceed $5,000 for each count or separate offense; exceed $5,000 for each count or separate offense;

and may issue a reprimand, and any or all of the and may issue a reprimand, and any or all of the

foregoing, if it finds that the licensee, registrant, foregoing, if it finds that the licensee, registrant,

permitteepermittee, or applicant (has violated the provisions , or applicant (has violated the provisions

of the Statutes or Administrative Rules).”of the Statutes or Administrative Rules).”

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Notice of noncompliance. Notice of noncompliance.

A notice of noncompliance is a first response to a A notice of noncompliance is a first response to a

minor violation of a rule. It is a notification that a minor violation of a rule. It is a notification that a

specific provision is being violated, includes specific provision is being violated, includes

information on how to comply, and specifies 15 information on how to comply, and specifies 15

days for the violator to comply. If not complied days for the violator to comply. If not complied

with, stiffer action with, stiffer action –– such as a citation such as a citation –– may be may be

taken.taken.

A minor violation is one that:A minor violation is one that:

does not result in economic or physical harm to does not result in economic or physical harm to

a person; ora person; or

adversely affect the public health, safety, or adversely affect the public health, safety, or

welfare or create a significant threat of such welfare or create a significant threat of such

harmharm

The licensee must correct the minor violation The licensee must correct the minor violation

within 15 days after notice. Failure to take within 15 days after notice. Failure to take

corrective action may result in disciplinary corrective action may result in disciplinary

proceedings, including a citation. proceedings, including a citation.

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Citation. Citation.

A citation may be issued for violations that are A citation may be issued for violations that are

not considered minor. not considered minor.

The licensee has 30 days from receipt to either The licensee has 30 days from receipt to either

accept or reject the citation. accept or reject the citation.

If accepted, the licensee must abide by the If accepted, the licensee must abide by the

disciplinary action. disciplinary action.

If rejected the matter will proceed through the If rejected the matter will proceed through the

normal disciplinary and investigative process normal disciplinary and investigative process

including a hearing and a final order. including a hearing and a final order.

Additional penalties may include a fine not to Additional penalties may include a fine not to

exceed $5,000, probation, suspension or, in exceed $5,000, probation, suspension or, in

severe cases, revocation of license. severe cases, revocation of license.

SUMMARY OF RECENTLY UPDATED SUMMARY OF RECENTLY UPDATED

PROVISIONSPROVISIONS

Following is a summary of the most recently Following is a summary of the most recently

updated provisions of Chapter 475 F.S., Chapter updated provisions of Chapter 475 F.S., Chapter

61J2 F.A.C. and other laws and rules related to 61J2 F.A.C. and other laws and rules related to

real estate licensees.real estate licensees.

Florida Statute Chapter 475.23Florida Statute Chapter 475.23

Amended to require the broker, when filing a Amended to require the broker, when filing a

notice of change of address, to also list the notice of change of address, to also list the

associates no longer employed by the firm. The associates no longer employed by the firm. The

notice shall also fulfill the change of address notice shall also fulfill the change of address

notification requirements for associates who notification requirements for associates who

remain employed.remain employed.

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Florida Statute Chapter 475.25(1)(d)1.a.Florida Statute Chapter 475.25(1)(d)1.a.

FREC may provide, by Administrative Rule, the FREC may provide, by Administrative Rule, the

instances in which a licensee may distribute funds instances in which a licensee may distribute funds

from escrow without notifying the Commission or from escrow without notifying the Commission or

employing one of the prescribed procedures to employing one of the prescribed procedures to

determine disbursement. determine disbursement.

Florida Statute Chapter 475.25(1)(kFlorida Statute Chapter 475.25(1)(k) )

The broker may maintain The broker may maintain $5,000$5,000 of the broker's of the broker's

own funds in a property management escrow own funds in a property management escrow

account and to permit the broker to maintain account and to permit the broker to maintain

$1,000$1,000 of the broker's own funds in a brokerage of the broker's own funds in a brokerage

escrow account. The brokerage is also given a escrow account. The brokerage is also given a

reasonable amount of time to correct escrow reasonable amount of time to correct escrow

errors where no shortages are involved. errors where no shortages are involved.

Florida Statute Chapter 475.278(1)(b) / (2)(c) Florida Statute Chapter 475.278(1)(b) / (2)(c)

In residential transactions there is a In residential transactions there is a presumption presumption

of Transaction Brokerageof Transaction Brokerage unless single agency or unless single agency or

no agency has been established with a written no agency has been established with a written

agreement. Written disclosure of Transaction agreement. Written disclosure of Transaction

Brokerage Relationship is no longer required. Brokerage Relationship is no longer required.

However, transition from Single Agency to However, transition from Single Agency to

Transaction Brokerage still requires the Transaction Brokerage still requires the

principal's prior written consent. principal's prior written consent.

Florida Statute Chapter 475.42(a)Florida Statute Chapter 475.42(a)

Performing real estate services for another and for Performing real estate services for another and for

compensation (or the expectation of compensation (or the expectation of

compensation) without a license is now a compensation) without a license is now a felony of felony of

the third degree.the third degree.

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Florida Statute 689.26Florida Statute 689.26

Sellers of property in Sellers of property in deeddeed--restricted communitiesrestricted communities

must provide a copy of the deed restrictions to the must provide a copy of the deed restrictions to the

buyer at the seller's expense. The buyer may void buyer at the seller's expense. The buyer may void

the contract if the copy of the deed restrictions is the contract if the copy of the deed restrictions is

not furnished prior to not furnished prior to three days before the date of three days before the date of

closingclosing. Initial sales by developers are exempted . Initial sales by developers are exempted

as well as condominiums, cooperative apartments, as well as condominiums, cooperative apartments,

time shares and mobile homes. time shares and mobile homes.

Summary of Real Estate Licensing Summary of Real Estate Licensing

RequirementsRequirements

Chapter 475.001 of Florida Statutes states, in part: Chapter 475.001 of Florida Statutes states, in part:

"The legislature finds that a significant number of "The legislature finds that a significant number of

real property transactions are facilitated by real real property transactions are facilitated by real

estate brokers and Sales associates, and that it is estate brokers and Sales associates, and that it is

necessary to assure the minimal competence of necessary to assure the minimal competence of

real estate practitioners in order to protect the real estate practitioners in order to protect the

public from potential economic loss, and, public from potential economic loss, and,

therefore, the legislature deems it necessary in the therefore, the legislature deems it necessary in the

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

brokers, sales associates, and schools in this brokers, sales associates, and schools in this

state." state."

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As a result, anyone who receives, or expects to As a result, anyone who receives, or expects to

receive, payment of money or any other receive, payment of money or any other

valuable consideration for performing the valuable consideration for performing the

services of real estate for others in Florida, services of real estate for others in Florida,

unless exempted by statute, must be licensed unless exempted by statute, must be licensed

and is subject to State regulation. and is subject to State regulation.

Allowable exemptions include owners selling Allowable exemptions include owners selling

their own property and corporate property sold, their own property and corporate property sold,

without commission, by employees or officers of without commission, by employees or officers of

the corporation. the corporation.

A broker must be in compliance with license law A broker must be in compliance with license law

in order to enter into a valid contract for in order to enter into a valid contract for

commission or compensation. commission or compensation.

In order to have a legal right to receive a In order to have a legal right to receive a

commission, the broker and any sales associate commission, the broker and any sales associate

involved must have had a valid, active license at involved must have had a valid, active license at

the time the service was performed. the time the service was performed.

Contracts with unlicensed persons to perform Contracts with unlicensed persons to perform

real estate services in expectation of real estate services in expectation of

compensation are invalid. compensation are invalid.

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An applicant must also be competent and An applicant must also be competent and

qualified to practice real estate with "safety to qualified to practice real estate with "safety to

investors and to those with whom he may investors and to those with whom he may

undertake a relationship of trust and undertake a relationship of trust and

confidence." confidence."

The applicant may be deemed unqualified if he The applicant may be deemed unqualified if he

or she has been disbarred in this or any other or she has been disbarred in this or any other

state, or is found to have committed acts that state, or is found to have committed acts that

would have resulted in revocation, suspension, would have resulted in revocation, suspension,

or denial had the individual possessed or or denial had the individual possessed or

applied for a license. applied for a license.

In addition, the applicant must submit their In addition, the applicant must submit their

electronic fingerprints, completed application electronic fingerprints, completed application

form, and the required application fee.form, and the required application fee.

Required EducationRequired Education

The applicant must also complete the required The applicant must also complete the required

6363--hour FREC Course 1 sales associate course hour FREC Course 1 sales associate course

and have a passing score of at least 70% on the and have a passing score of at least 70% on the

final exam. final exam.

Applicants seeking to become a broker must Applicants seeking to become a broker must

have held an active sales license for 24 months have held an active sales license for 24 months

prior to their state exam and must complete the prior to their state exam and must complete the

required 72required 72--hour FREC Broker Course and must hour FREC Broker Course and must

achieve a passing score of 70% on the end of achieve a passing score of 70% on the end of

course exam. course exam. NEW EXAM! NEW EXAM! The applicants must The applicants must

also show proof of completion of the sales also show proof of completion of the sales

associate post license requirement and be associate post license requirement and be

current with continuing education requirements. current with continuing education requirements.

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State ExamState Exam

PearsonVUEPearsonVUE administers the state licensing administers the state licensing

exams. A passing score on the 100exams. A passing score on the 100--question question

exam is 75%. exam is 75%. PearsonVUEPearsonVUE prints a pass or fail prints a pass or fail

notice immediately upon completion.notice immediately upon completion.

License Renewal RequirementsLicense Renewal Requirements

Florida licenses are divided into four twoFlorida licenses are divided into four two--year year

license periods (also called renewal cycles). license periods (also called renewal cycles).

The license period expires on March 31 or The license period expires on March 31 or

September 30 of odd years; or March 31 or September 30 of odd years; or March 31 or

September 30 of even years. September 30 of even years.

Each real estate license will expire on the same Each real estate license will expire on the same

date every two years. date every two years.

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Sixty days before the end of the license period, Sixty days before the end of the license period,

the DBPR sends a renewal notice to the the DBPR sends a renewal notice to the

licensee’s last known address. licensee’s last known address.

To renew the license, the licensee must have To renew the license, the licensee must have

completed, and the school reported, the required completed, and the school reported, the required

postpost--licensing education (initial renewal) or 14 licensing education (initial renewal) or 14

hours of approved continuing education during hours of approved continuing education during

the license period. the license period.

The licensee is also required to timely complete The licensee is also required to timely complete

the renewal form and pay the renewal fee to the the renewal form and pay the renewal fee to the

DBPR. DBPR.

Online renewal is available at Online renewal is available at

www.myflorida.com/dbprwww.myflorida.com/dbpr. Click “RENEW A . Click “RENEW A

LICENSE” and follow the simple instructions to LICENSE” and follow the simple instructions to

set up your account. set up your account.

Failure to renew by the expiration date will result Failure to renew by the expiration date will result

in the license becoming in the license becoming involuntarily inactiveinvoluntarily inactive..

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PostPost--Licensing Education Licensing Education

PostPost--licensing education is required during the licensing education is required during the

initial license period for sales associates and initial license period for sales associates and

brokers. brokers.

Each sales associate must successfully Each sales associate must successfully

complete one or more commissioncomplete one or more commission--approved approved

courses which total at least 45 classroom hours. courses which total at least 45 classroom hours.

Each broker must successfully complete one or Each broker must successfully complete one or

more commissionmore commission--approved courses which total approved courses which total

at least 60 classroom hours. at least 60 classroom hours.

The postThe post--licensing courses may include, but are licensing courses may include, but are

not limited to, not limited to,

property management,property management,

appraisal, appraisal,

real estate finance, real estate finance,

the economics of real estate management, the economics of real estate management,

marketing, marketing,

technology, technology,

sales and listing of properties, sales and listing of properties,

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business office management, business office management,

courses teaching practical real estate application courses teaching practical real estate application

skills, skills,

development of business plans, development of business plans,

marketing of property, and marketing of property, and

time management. time management.

Successful completion requires passing the endSuccessful completion requires passing the end--

ofof--course exam. If the postcourse exam. If the post--licensing education is licensing education is

not completed by a not completed by a sales associatesales associate, the license , the license

becomes null and void. The only way to become becomes null and void. The only way to become

licensed again is through completing the current licensed again is through completing the current

prepre--license requirements and passing the current license requirements and passing the current

state exam. state exam.

If the postIf the post--licensing education is not completed licensing education is not completed

by a by a brokerbroker, the broker license becomes null and , the broker license becomes null and

void. void.

The only way to become licensed as a broker The only way to become licensed as a broker

again is through completing the current broker again is through completing the current broker

prepre--license requirements and passing the license requirements and passing the

current state exam. current state exam.

The individual may, however, become licensed The individual may, however, become licensed

as a as a sales associatesales associate by completing 14 hours of by completing 14 hours of

continuing education within 6 months of the continuing education within 6 months of the

expiration of the broker’s license.expiration of the broker’s license.

A licensee who fails the final exam must wait 30 A licensee who fails the final exam must wait 30

days before redays before re--taking the exam. taking the exam.

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Continuing EducationContinuing Education

After the initial license renewal, licensees are After the initial license renewal, licensees are

required to complete 14 hours of approved required to complete 14 hours of approved

continuing education during each license period. continuing education during each license period.

Continuing education is required for both active Continuing education is required for both active

and inactive brokers and sales associates. and inactive brokers and sales associates.

The 14 hours must include three hours of core The 14 hours must include three hours of core

law and 11 hours may be from approved law and 11 hours may be from approved

specialty courses that focus on real estate specialty courses that focus on real estate

issues relevant to the modern practice of real issues relevant to the modern practice of real

estate by a licensee. estate by a licensee.

Distance learning courses are an accepted Distance learning courses are an accepted

method of satisfying the continuing education method of satisfying the continuing education

requirement. requirement.

Notice of ChangeNotice of Change

Each licensee is required to update the DBPR of Each licensee is required to update the DBPR of

changes that occur after initial licensure. changes that occur after initial licensure. DBPR DBPR

RERE--10 Request for Address or Name Change10 Request for Address or Name Change

may be used to notify the DBPR within 10 days of may be used to notify the DBPR within 10 days of

any of the following:any of the following:

Name Change (individual)Name Change (individual)

Name Change (business)Name Change (business)

Change Mailing AddressChange Mailing Address

Change Contact Information (phone and/or Change Contact Information (phone and/or

email)email)

Change Physical AddressChange Physical Address

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When a sales associate changes employers or a When a sales associate changes employers or a

broker changes business address, the license broker changes business address, the license

automatically becomes invalid. The licensee automatically becomes invalid. The licensee

must request a reissue of the license within 10 must request a reissue of the license within 10

days by completing days by completing DBPR REDBPR RE--10 10 –– Request for Request for

Change of Status. Change of Status.

The broker, when filing a notice of change of The broker, when filing a notice of change of

address, is required to list the associates no address, is required to list the associates no

longer employed by the firm. The broker notice longer employed by the firm. The broker notice

automatically fulfills the change of address automatically fulfills the change of address

notification requirements for associates who notification requirements for associates who

remain employed. remain employed.

Inactive LicenseInactive License

Everyone practicing and performing real estate Everyone practicing and performing real estate

services for compensation must have an active services for compensation must have an active

license. Real estate services are defined as license. Real estate services are defined as

performing any of the following related to real performing any of the following related to real

estate or business for compensation or estate or business for compensation or

expectation of compensation:expectation of compensation:

AdvertiseAdvertise

BuyBuy

AppraiseAppraise

RentRent

SellSell

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AuctionAuction

LeaseLease

ExchangeExchange

An individual otherwise qualified to perform real An individual otherwise qualified to perform real

estate services may hold an inactive license, either estate services may hold an inactive license, either

voluntarily or involuntarily. During the inactive voluntarily or involuntarily. During the inactive

period, whether voluntary or involuntary, the period, whether voluntary or involuntary, the

licensee may NOT practice or perform real estate licensee may NOT practice or perform real estate

services for compensation.services for compensation.

Voluntarily Inactive LicenseVoluntarily Inactive License

Voluntary inactive status is provided to licensees Voluntary inactive status is provided to licensees

who make the choice not to practice actively. who make the choice not to practice actively.

They can remain voluntarily inactive indefinitely, They can remain voluntarily inactive indefinitely,

as long as they are current with continuing as long as they are current with continuing

education requirements and timely file for education requirements and timely file for

renewal. renewal.

The status may be updated to active at any time The status may be updated to active at any time

by filingby filing DBPR REDBPR RE--10 10 –– Request for Change of Request for Change of

Status.Status.

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Involuntarily Inactive LicenseInvoluntarily Inactive License

Failure to renew a license changes the license Failure to renew a license changes the license

status to involuntarily inactive. status to involuntarily inactive.

The license can remain in involuntary inactive The license can remain in involuntary inactive

status for two years, after which the license status for two years, after which the license

automatically becomes null and void. automatically becomes null and void.

In order to reactivate the license, the licensee In order to reactivate the license, the licensee

must complete continuing education and apply must complete continuing education and apply

for change of status. for change of status.

If the license has been involuntarily inactive for If the license has been involuntarily inactive for

12 months or less, the licensee must complete 12 months or less, the licensee must complete

14 hours of continuing education (for the 14 hours of continuing education (for the

previous licensing period). previous licensing period).

If the license has been involuntarily inactive for If the license has been involuntarily inactive for

more than 12 months the education requirement more than 12 months the education requirement

is completion of a 28 hour reactivation course. is completion of a 28 hour reactivation course.

61J261J2--3.010 (3) details the requirements to renew 3.010 (3) details the requirements to renew

a license once it has been placed on involuntary a license once it has been placed on involuntary

inactive status. inactive status.

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Nonresident RequirementsNonresident Requirements

Florida residency is not required to qualify for a Florida residency is not required to qualify for a

Florida real estate license. Florida real estate license.

The nonresident applicant is required to file an The nonresident applicant is required to file an

irrevocable consent stating suits and actions irrevocable consent stating suits and actions

may be commenced against him/her in any may be commenced against him/her in any

county in this state in which a plaintiff having a county in this state in which a plaintiff having a

cause of action or suit against the applicant cause of action or suit against the applicant

resides. resides.

Any resident licensee who becomes a Any resident licensee who becomes a

nonresident must, within 60 days, notify the nonresident must, within 60 days, notify the

commission of the change in residency and commission of the change in residency and

comply with nonresident requirements. comply with nonresident requirements.

A nonresident licensed in another state for at A nonresident licensed in another state for at

least 24 months in the previous 5 years may least 24 months in the previous 5 years may

become a Florida broker without the need to first become a Florida broker without the need to first

become a Florida sales associate. become a Florida sales associate.

The applicant must comply in all other respects The applicant must comply in all other respects

with the Florida broker licensing requirements. with the Florida broker licensing requirements.

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Brokerage OrganizationsBrokerage Organizations

An entity, such as a corporation or limited An entity, such as a corporation or limited

liability company, that acts as a broker must liability company, that acts as a broker must

register its members and officers with the register its members and officers with the

commission to obtain and renew their licenses commission to obtain and renew their licenses

or registrations each license period. or registrations each license period.

The following types of brokerage organizations can The following types of brokerage organizations can

be registered with the DBPR by filing the required be registered with the DBPR by filing the required

Forms Package: Forms Package:

Sole proprietorshipSole proprietorship

Proprietor must be an active broker. Proprietor must be an active broker.

General PartnershipGeneral Partnership

At least one general partner must be an active At least one general partner must be an active

broker Nonbroker Non--broker partners must be registeredbroker partners must be registered

Limited Liability CompanyLimited Liability Company

At least one member or manager must be an At least one member or manager must be an

active brokeractive broker

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CorporationCorporation

At least one officer must be an active brokerAt least one officer must be an active broker

Officers or directors are either active brokers or Officers or directors are either active brokers or

unlicensed Sales associates or broker unlicensed Sales associates or broker

associates are not permitted to be officers or associates are not permitted to be officers or

directorsdirectors

Limited PartnershipLimited Partnership

At least one general partner must be an active At least one general partner must be an active

broker Nonbroker Non--broker partners must be registered. broker partners must be registered.

Broker RecordsBroker Records

Each broker must retain records of all books, Each broker must retain records of all books,

accounts, and records pertaining to their real accounts, and records pertaining to their real

estate brokerage business for at least estate brokerage business for at least 5 years5 years

from the date of execution by any party to a from the date of execution by any party to a

listing agreement, offer to purchase, rental listing agreement, offer to purchase, rental

property management agreement, rental or property management agreement, rental or

lease agreement, or any other written or verbal lease agreement, or any other written or verbal

agreement which engages the services of the agreement which engages the services of the

broker. broker.

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If any brokerage record has been the subject of If any brokerage record has been the subject of

or has served as evidence for litigation, records or has served as evidence for litigation, records

must be retained for at least must be retained for at least 2 years2 years after the after the

conclusion of the civil action or the conclusion of conclusion of the civil action or the conclusion of

any appellate proceeding, whichever is later, but any appellate proceeding, whichever is later, but

in in no case less than a total of 5 yearsno case less than a total of 5 years as set as set

above. This requirement includes disclosure above. This requirement includes disclosure

documents. documents.

To ensure compliance with license law each To ensure compliance with license law each

brokerage office should review its records, brokerage office should review its records,

focusing on the following points regularly checked focusing on the following points regularly checked

by investigators:by investigators:

Escrow accounts. Escrow accounts. Check bank statements, Check bank statements,

deposits and monthly reconciliation statements deposits and monthly reconciliation statements

as well as contracts for pending sales and any as well as contracts for pending sales and any

property management contracts.property management contracts.

Brokerage relationship documents.Brokerage relationship documents. Required Required

disclosures should be in transaction files for disclosures should be in transaction files for

residential properties sold within the past five residential properties sold within the past five

years.years.

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Licenses and registrations.Licenses and registrations. Check the license Check the license

and registration of the entity and the licenses of and registration of the entity and the licenses of

all individuals who provide brokerage services.all individuals who provide brokerage services.

Sign requirements.Sign requirements. The office entrance sign The office entrance sign

must be of a size and location that it is easily must be of a size and location that it is easily

visible to anyone entering the office. Make sure visible to anyone entering the office. Make sure

the sign includes the broker’s name, the words the sign includes the broker’s name, the words

“Licensed (or “Licensed (or LicLic.) Real Estate Broker,” and the .) Real Estate Broker,” and the

partnership, corporation, LLC or trade name, if partnership, corporation, LLC or trade name, if

any.any.

ESCROW ACCOUNTSESCROW ACCOUNTS

OverviewOverview

61J261J2--14 F.A.C. concerns Escrow Deposits. 14 F.A.C. concerns Escrow Deposits.

Every broker who receives from sales Every broker who receives from sales

associates, principals, prospects, or other associates, principals, prospects, or other

persons interested in any real estate transaction, persons interested in any real estate transaction,

any deposit, fund, money, check, draft, personal any deposit, fund, money, check, draft, personal

property, or item of value is required to property, or item of value is required to

immediately place the same in a bank, savings immediately place the same in a bank, savings

and loan association, trust company, credit and loan association, trust company, credit

union or title company having trust powers, in an union or title company having trust powers, in an

insured escrow or trust account. insured escrow or trust account.

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The broker must be a signatory on all escrow The broker must be a signatory on all escrow

accounts. accounts.

If the brokerage entity has more than one broker If the brokerage entity has more than one broker

licensee, then one broker licensee may be licensee, then one broker licensee may be

designated as the signatory. designated as the signatory.

If the deposit is in securities, intended by the If the deposit is in securities, intended by the

depositor to be converted into cash, the depositor to be converted into cash, the

conversion must be made at the earliest conversion must be made at the earliest

practical time, and the proceeds immediately practical time, and the proceeds immediately

deposited in the account.deposited in the account.

The broker cannot deposit any funds unrelated The broker cannot deposit any funds unrelated

to specific real estate transactions other than a to specific real estate transactions other than a

maximum amount of $1,000 of his own money in maximum amount of $1,000 of his own money in

a brokerage escrow account and $5,000 of his a brokerage escrow account and $5,000 of his

own money in a property management escrow own money in a property management escrow

account. account.

Brokerage operating accounts should never Brokerage operating accounts should never

contain earnest money deposits or property contain earnest money deposits or property

management deposits. management deposits.

Property management bills should never be paid Property management bills should never be paid

from the property management escrow account from the property management escrow account

until the funds from the particular property are until the funds from the particular property are

on deposit. on deposit.

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A broker may elect A broker may elect not to maintain a brokerage not to maintain a brokerage

escrow accountescrow account and instead place earnest and instead place earnest

money deposits with a title insurance company money deposits with a title insurance company

or an attorney. or an attorney.

Deposit RequirementsDeposit Requirements

Business days do not include Saturdays, Business days do not include Saturdays,

Sundays, or legal holidays. Sundays, or legal holidays.

Real estate sales associates are required to Real estate sales associates are required to

IMMEDIATELY turn any deposit(s) over to their IMMEDIATELY turn any deposit(s) over to their

broker or employer. Immediately is defined as broker or employer. Immediately is defined as

the end of the next business day following the end of the next business day following

receipt of the deposit by the sales associate. receipt of the deposit by the sales associate.

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The broker is required to IMMEDIATELY place The broker is required to IMMEDIATELY place

the deposit in the proper depository institution. the deposit in the proper depository institution.

Immediately is defined as no later than the third Immediately is defined as no later than the third

business day following the original receipt of the business day following the original receipt of the

item to be deposited.item to be deposited.

When a deposit is to be placed with a title When a deposit is to be placed with a title

company or an attorney, the contract must company or an attorney, the contract must

include the name, address, and telephone include the name, address, and telephone

number of the title company or attorney. number of the title company or attorney.

In most cases the deposit will be held by a title In most cases the deposit will be held by a title

company or by an attorney nominated in writing company or by an attorney nominated in writing

by the listing broker. by the listing broker.

If the deposit is placed in an account designated If the deposit is placed in an account designated

by the buyer or the buyer’s broker, the selling by the buyer or the buyer’s broker, the selling

broker must, within 10 business days after each broker must, within 10 business days after each

deposit is due under the sales contract, make deposit is due under the sales contract, make

written request to the title company or attorney written request to the title company or attorney

to provide written verification of receipt of the to provide written verification of receipt of the

deposit. deposit.

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The broker must then provide the seller’s broker The broker must then provide the seller’s broker

with either a copy of the written verification, or, if with either a copy of the written verification, or, if

no verification is received by the selling broker, no verification is received by the selling broker,

written notice that the broker did not receive written notice that the broker did not receive

verification of the deposit. verification of the deposit.

If the seller is not represented by a broker, then If the seller is not represented by a broker, then

the selling broker must notify the seller directly in the selling broker must notify the seller directly in

the same manner.the same manner.

Reconciliation RequirementReconciliation Requirement

A broker is required to have a monthly A broker is required to have a monthly

reconciliation of all trust accounts. The monthly reconciliation of all trust accounts. The monthly

reconciliation must include as a minimum:reconciliation must include as a minimum:

the date the reconciliation was undertaken,the date the reconciliation was undertaken,

the date used to reconcile the balances, the date used to reconcile the balances,

the name(s) of the bank(s), the name(s) of the bank(s),

the name(s) of the account(s), the name(s) of the account(s),

the account number(s), the account number(s),

the account balance(s) and date(s), the account balance(s) and date(s),

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deposits in transit, deposits in transit,

outstanding checks identified by check number, outstanding checks identified by check number,

and and

any other items necessary to reconcile the bank any other items necessary to reconcile the bank

account balance(s) with the balance per the account balance(s) with the balance per the

broker's checkbook(s) and other trust account broker's checkbook(s) and other trust account

books and records disclosing the date of receipt books and records disclosing the date of receipt

and the source of the funds. and the source of the funds.

The broker must review, sign and date the The broker must review, sign and date the

monthly statementmonthly statement--reconciliation. All records of reconciliation. All records of

escrow accounts must be retained for escrow accounts must be retained for six yearssix years..

InterestInterest--Bearing AccountsBearing Accounts

Escrow money may be placed in an interestEscrow money may be placed in an interest--

bearing account if the parties to the contract bearing account if the parties to the contract

agree. agree.

Any interest paid on the account is to be Any interest paid on the account is to be

distributed according to the instructions of the distributed according to the instructions of the

agreement designating the party who is to agreement designating the party who is to

receive the interest, and the time the earned receive the interest, and the time the earned

interest must be disbursed. The account must interest must be disbursed. The account must

be in a Florida federallybe in a Florida federally--insured institution. insured institution.

The account must be closed upon disbursement. The account must be closed upon disbursement.

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Disbursing FundsDisbursing Funds

The potential buyer in a real estate transaction is The potential buyer in a real estate transaction is

in legal control of the escrowed funds until offer in legal control of the escrowed funds until offer

acceptance. acceptance.

The broker acts as the custodian of the account. The broker acts as the custodian of the account.

The buyer has the right to withdraw the offer and The buyer has the right to withdraw the offer and

withdraw the earnest money deposit up to the withdraw the earnest money deposit up to the

time the seller accepts the offer to purchase. time the seller accepts the offer to purchase.

Upon acceptance, the seller also holds a legal Upon acceptance, the seller also holds a legal

interest in the escrow deposit. interest in the escrow deposit.

The broker can disburse the funds only after The broker can disburse the funds only after

receiving permission from both parties through a receiving permission from both parties through a

signed release of deposit or a signed closing signed release of deposit or a signed closing

statement. statement.

Conflicting Demands and GoodConflicting Demands and Good--Faith DoubtFaith Doubt

Conflicting demandsConflicting demands occurs when the buyer and occurs when the buyer and

seller each demand the release of escrowed seller each demand the release of escrowed

funds without agreeing on who should receive funds without agreeing on who should receive

the funds. the funds.

When no demand has been made for the funds When no demand has been made for the funds

but the broker is uncertain as to who is entitled, but the broker is uncertain as to who is entitled,

the broker is said to have the broker is said to have goodgood--faith doubt. faith doubt.

FREC has instituted a specific process that must FREC has instituted a specific process that must

be followed by brokers in the case of conflicting be followed by brokers in the case of conflicting

demands or gooddemands or good--faith doubt. faith doubt.

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The broker holding the escrow deposit is The broker holding the escrow deposit is

responsible for notifying FREC in writing within 15 responsible for notifying FREC in writing within 15

business days. To avoid being charged with failure business days. To avoid being charged with failure

to account for, deliver, or maintain the escrowed to account for, deliver, or maintain the escrowed

property, a broker involved in an escrow dispute property, a broker involved in an escrow dispute

must institute one of the following settlement must institute one of the following settlement

procedures within 30 business days of the last procedures within 30 business days of the last

demand from a disputing party:demand from a disputing party:

Request FREC to issue an Escrow Request FREC to issue an Escrow

Disbursement Order (EDO) determining who is Disbursement Order (EDO) determining who is

entitled to the escrowed property. entitled to the escrowed property.

With written consent of all parties, submit the With written consent of all parties, submit the

matter to arbitration. matter to arbitration.

Seek a remedy by a court of law. Seek a remedy by a court of law.

With written consent of all parties, submit the With written consent of all parties, submit the

matter to mediation. matter to mediation.

The broker is then required to notify FREC within The broker is then required to notify FREC within

10 business days following resolution of the 10 business days following resolution of the

escrow dispute.escrow dispute.

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Broker’s Rights to DepositsBroker’s Rights to Deposits

A prudent broker will always get a signed release A prudent broker will always get a signed release

from all parties before disbursing funds. from all parties before disbursing funds.

If the party entitled to the escrowed funds disputes If the party entitled to the escrowed funds disputes

the broker’s commission claim, the broker has the the broker’s commission claim, the broker has the

right to distribute the funds and retain the amount right to distribute the funds and retain the amount

of the claim in the account. of the claim in the account.

This is not a conflicting claims situation, so FREC This is not a conflicting claims situation, so FREC

is not notified. The dispute must be settled by one is not notified. The dispute must be settled by one

of the following:of the following:

mutual agreement, mutual agreement,

mediation, mediation,

arbitration, or arbitration, or

a court ordera court order

Broker’s Retention of RecordsBroker’s Retention of Records

Records of escrow accounts must be retained Records of escrow accounts must be retained

for 6 years. All other transaction records, for 6 years. All other transaction records,

including copies of listings and purchase including copies of listings and purchase

contracts, must be retained for 5 years.contracts, must be retained for 5 years.

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BROKERAGE RELATIONSHIP DISCLOSURE BROKERAGE RELATIONSHIP DISCLOSURE

ACTACT

OverviewOverview

The Florida legislature established the The Florida legislature established the

Brokerage Relationship Disclosure Act to require Brokerage Relationship Disclosure Act to require

licensees to disclose their relationship with licensees to disclose their relationship with

consumers and to clarify the types of lawful consumers and to clarify the types of lawful

brokerage relationships. brokerage relationships.

The disclosure forms allow the buyer or seller to The disclosure forms allow the buyer or seller to

accept or refuse these relationships. accept or refuse these relationships.

Basic provisions include: Basic provisions include:

A licensee may not be a dual agent. This was A licensee may not be a dual agent. This was

replaced by the concept of transaction broker. replaced by the concept of transaction broker.

Creation of mandated forms and guidelines for Creation of mandated forms and guidelines for

presenting them.presenting them.

Single agents are able to represent either the Single agents are able to represent either the

buyer or seller, but not both in a real estate buyer or seller, but not both in a real estate

transaction. transaction.

Transaction brokers can provide a limited form Transaction brokers can provide a limited form

of nonof non--fiduciary representation to the buyer, fiduciary representation to the buyer,

seller or both. seller or both.

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ApplicabilityApplicability

The real estate licensee disclosure requirements The real estate licensee disclosure requirements

apply to all residential sales, which is defined as apply to all residential sales, which is defined as

the sale of improved residential property of four the sale of improved residential property of four

units or fewer, the sale of unimproved residential units or fewer, the sale of unimproved residential

property intended for use of four units or fewer, property intended for use of four units or fewer,

or the sale of agricultural property of 10 acres or or the sale of agricultural property of 10 acres or

fewer. fewer.

Disclosure exemptionsDisclosure exemptions

The real estate disclosure requirements do not The real estate disclosure requirements do not

apply to:apply to:

situations when a licensee knows that the situations when a licensee knows that the

potential seller or buyer is represented by a single potential seller or buyer is represented by a single

agent or a transaction broker; or agent or a transaction broker; or

an owner selling new residential units built by the an owner selling new residential units built by the

owner and the circumstances or setting should owner and the circumstances or setting should

reasonably inform the potential buyer that the reasonably inform the potential buyer that the

owner's employee or single agent is acting on owner's employee or single agent is acting on

behalf of the owner, whether because of the behalf of the owner, whether because of the

location of the sales office or because of office location of the sales office or because of office

signage or placards or identification badges worn signage or placards or identification badges worn

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

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nonresidential transactionsnonresidential transactions

rental or leasing of real property, unless an rental or leasing of real property, unless an

option to purchase all or a portion of the property option to purchase all or a portion of the property

improved with four or fewer residential units is improved with four or fewer residential units is

givengiven

a bona fide "open house" or model home a bona fide "open house" or model home

showing that does not involve eliciting showing that does not involve eliciting

confidential information, the execution of a confidential information, the execution of a

contractual offer or an agreement for contractual offer or an agreement for

representation, or negotiations concerning price, representation, or negotiations concerning price,

terms, or conditions of a potential saleterms, or conditions of a potential sale

unanticipated casual conversations between a unanticipated casual conversations between a

licensee and a seller or buyer which do not licensee and a seller or buyer which do not

involve eliciting confidential information, the involve eliciting confidential information, the

execution of a contractual offer or agreement for execution of a contractual offer or agreement for

representation, or negotiations concerning price, representation, or negotiations concerning price,

terms, or conditions of a potential saleterms, or conditions of a potential sale

responding to general factual questions from a responding to general factual questions from a

potential buyer or seller concerning properties potential buyer or seller concerning properties

that have been advertised for salethat have been advertised for sale

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situations in which a licensee's communications situations in which a licensee's communications

with a potential buyer or seller are limited to with a potential buyer or seller are limited to

providing general factual information, oral or providing general factual information, oral or

written, about the qualifications, background, written, about the qualifications, background,

and services of the licensee or the licensee's and services of the licensee or the licensee's

brokerage firmbrokerage firm

auctions; appraisals; and dispositions of any auctions; appraisals; and dispositions of any

interest in business enterprises or business interest in business enterprises or business

opportunities, except for property with four or opportunities, except for property with four or

fewer residential unitsfewer residential units

AUTHORIZED BROKERAGE RELATIONSHIPSAUTHORIZED BROKERAGE RELATIONSHIPS

A real estate licensee in this state may enter into A real estate licensee in this state may enter into

a brokerage relationship with potential buyers or a brokerage relationship with potential buyers or

sellers as either a transaction broker or as a sellers as either a transaction broker or as a

single agent. single agent.

A licensee has the right to change from one A licensee has the right to change from one

brokerage relationship to the other as long as brokerage relationship to the other as long as

the buyer or the seller, or both, gives consent the buyer or the seller, or both, gives consent

before change and the appropriate disclosure is before change and the appropriate disclosure is

made. made.

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Single Agent RelationshipSingle Agent Relationship

Duties of a single agent must be fully described Duties of a single agent must be fully described

and disclosed in writing to a buyer or seller and disclosed in writing to a buyer or seller

either as a separate and distinct disclosure either as a separate and distinct disclosure

document or included as part of another document or included as part of another

document such as a listing agreement or other document such as a listing agreement or other

agreement for representation. agreement for representation.

The disclosure must be made before, or at the The disclosure must be made before, or at the

time of, entering into a listing agreement or an time of, entering into a listing agreement or an

agreement for representation or before the agreement for representation or before the

showing of property, whichever occurs first. showing of property, whichever occurs first.

A single agent, like a transaction broker, must A single agent, like a transaction broker, must

comply with the following statutory requirements comply with the following statutory requirements

regardless of whether representing the buyer or regardless of whether representing the buyer or

seller:seller:

Dealing honestly and fairly;Dealing honestly and fairly;

Presenting all offers and counteroffers in a Presenting all offers and counteroffers in a

timely manner, unless a party has previously timely manner, unless a party has previously

directed the licensee otherwise in writing; anddirected the licensee otherwise in writing; and

Disclosing all known facts that materially affect Disclosing all known facts that materially affect

the value of residential real property and are not the value of residential real property and are not

readily observable.readily observable.

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In addition, the single agent has the following In addition, the single agent has the following

fiduciary obligations to the party being fiduciary obligations to the party being

represented:represented:

Loyalty; Loyalty;

Confidentiality; Confidentiality;

Obedience; Obedience;

Full disclosure; Full disclosure;

Accounting for all funds; Accounting for all funds;

Skill, care, and diligence in the transaction; Skill, care, and diligence in the transaction;

Transaction BrokerageTransaction Brokerage

Effective July 1, 2008, there is no longer a Effective July 1, 2008, there is no longer a

requirement to use a disclosure form if the requirement to use a disclosure form if the

licensee is acting as a transaction broker in a licensee is acting as a transaction broker in a

residential transaction.residential transaction.

A transaction broker provides a limited form of A transaction broker provides a limited form of

representation to a buyer, a seller, or both in a representation to a buyer, a seller, or both in a

real estate transaction but does not represent real estate transaction but does not represent

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

It is presumed that all licensees are operating as It is presumed that all licensees are operating as

transaction brokers transaction brokers unlessunless a single agent or no a single agent or no

brokerage relationship is established, in writing, brokerage relationship is established, in writing,

with a customer. with a customer.

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The transaction broker has the following duties to The transaction broker has the following duties to

perform:perform:

Dealing honestly and fairly; Dealing honestly and fairly;

Accounting for all funds; Accounting for all funds;

Using skill, care, and diligence in the transaction; Using skill, care, and diligence in the transaction;

Disclosing all known facts that materially affect Disclosing all known facts that materially affect

the value of residential real property and are not the value of residential real property and are not

readily observable to the buyer; readily observable to the buyer;

Presenting all offers and counteroffers in a Presenting all offers and counteroffers in a

timely manner, unless a party has previously timely manner, unless a party has previously

directed the licensee otherwise in writing; directed the licensee otherwise in writing;

Limited confidentiality, unless waived in writing Limited confidentiality, unless waived in writing

by a party. This limited confidentiality will prevent by a party. This limited confidentiality will prevent

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

than the asking or listed price, that the buyer will than the asking or listed price, that the buyer will

pay a price greater than the price submitted in a pay a price greater than the price submitted in a

written offer, of the motivation of any party for written offer, of the motivation of any party for

selling or buying property, that a seller or buyer selling or buying property, that a seller or buyer

will agree to financing terms other than those will agree to financing terms other than those

offered, or of any other information requested by offered, or of any other information requested by

a party to remain confidential; a party to remain confidential;

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Transaction broker Single agent

No loyalty Loyalty

Limited confidentiality Total confidentiality

Limited disclosure Full disclosure

No obedience Total obedience of lawful instructions

Transition to Transaction Broker DisclosureTransition to Transaction Broker Disclosure

A single agent relationship may be changed to a A single agent relationship may be changed to a

transaction broker relationship at any time with transaction broker relationship at any time with

the principal's written consent. This disclosure the principal's written consent. This disclosure

must be in writing to the principal either as a must be in writing to the principal either as a

separate and distinct document or included as separate and distinct document or included as

part of other documents such as a listing part of other documents such as a listing

agreement or other agreements for agreement or other agreements for

representation. representation.

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124

No Brokerage RelationshipNo Brokerage Relationship

Duties of a licensee who is a single agent for Duties of a licensee who is a single agent for

one party and has no brokerage relationship one party and has no brokerage relationship

with a buyer or seller must be fully described with a buyer or seller must be fully described

and disclosed in writing to the buyer or seller and disclosed in writing to the buyer or seller

before the showing of property. before the showing of property.

Although not representing this party, the Although not representing this party, the

licensee still owes the statutory requirements of licensee still owes the statutory requirements of

dealing honestly and fairly; disclosing all known dealing honestly and fairly; disclosing all known

facts that materially affect the value of residential facts that materially affect the value of residential

real property that are not observable to the real property that are not observable to the

buyer; and accounting for all funds entrusted to buyer; and accounting for all funds entrusted to

the licensee.the licensee.

Documents

Texas Agents by Racepgpcnprealtors.info/wp-content/uploads/2012/08/PPTs... · 2017. 5. 11. · 8/9/2012 1 MARS MARS Mortgage Assistance Relief Services Act The MARS Rule covers persons