Bill Text: FL S0770 | 2023 | Regular Session | Enrolled

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Bill Title: Residential Loan Alternative Agreements

Spectrum: Slight Partisan Bill (? 2-1)

Status: (Passed) 2023-05-25 - Chapter No. 2023-117 [S0770 Detail]

Download: Florida-2023-S0770-Enrolled.html

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       ENROLLED
       2023 Legislature                            CS for CS for SB 770
       
       
       
       
       
       
                                                              2023770er
    1  
    2         An act relating to residential loan alternative
    3         agreements; creating s. 475.279, F.S.; defining terms;
    4         specifying restrictions on residential loan
    5         alternative agreements for the disposition of
    6         residential real property; prohibiting a court from
    7         enforcing such agreements by certain means; providing
    8         that such agreements are void if listing services do
    9         not begin within a certain timeframe; prohibiting the
   10         clerk of the circuit court from recording such
   11         agreements; providing construction; providing that
   12         violations are unfair or deceptive trade practices;
   13         specifying penalties and remedies; providing an
   14         effective date.
   15          
   16  Be It Enacted by the Legislature of the State of Florida:
   17  
   18         Section 1. Section 475.279, Florida Statutes, is created to
   19  read:
   20         475.279 Residential loan alternative agreements for the
   21  disposition of residential real property.—
   22         (1) As used in this section, the term:
   23         (a) “Disposition” means a transfer or voluntary conveyance
   24  of the title or other ownership interest in residential real
   25  property.
   26         (b) “Residential loan alternative agreement” means a signed
   27  writing or a signed and written legal instrument or contract
   28  between a person and a seller or an owner of residential real
   29  property which:
   30         1. Grants an exclusive right to a person to act as a broker
   31  for the disposition of the property;
   32         2. Has an effective duration, inclusive of renewals, of
   33  more than 2 years; and
   34         3. Requires the person to pay monetary compensation to the
   35  seller or owner.
   36         (c) “Residential real property” means improved residential
   37  property of four or fewer residential dwelling units or
   38  unimproved residential real property on which four or fewer
   39  residential dwelling units may be built.
   40         (2) A residential loan alternative agreement may not
   41  authorize a person to place a lien on or otherwise encumber any
   42  residential real property. A residential loan alternative
   43  agreement may not constitute a lien, an encumbrance, or a
   44  security interest in the residential real property. A court may
   45  not enforce a residential loan alternative agreement by a lien
   46  or constructive trust in the residential real property or upon
   47  the proceeds of the disposition of the residential real
   48  property.
   49         (3) A residential loan alternative agreement may not be
   50  assigned.
   51         (4) A residential loan alternative agreement is void if
   52  listing services do not begin within 90 days after the execution
   53  of the agreement by both parties.
   54         (5) A residential loan alternative agreement may not be
   55  recorded by the clerk of the circuit court.
   56         (6) A residential loan alternative agreement must meet all
   57  of the requirements of this section or it is unenforceable in
   58  law or equity.
   59         (7) Notwithstanding s. 501.212, a violation of this section
   60  is deemed an unfair or deceptive trade practice within the
   61  meaning of part II of chapter 501, and a person who violates
   62  this section is subject to the penalties and remedies provided
   63  therein.
   64         Section 2. This act shall take effect July 1, 2023.