Welcome to the 2016 Mid Winter Legal Update Margy Grant, VP & General Counsel Marcia Tabak, Deputy General Counsel Joel Maxson, Director Member Legal Services Tonya Schroeder, Hotline Attorney

Overview property disclosures – Update on mandatory property disclosures Yes you need to disclose it! Financing – Contract clause hotspot: Financing Are you sure you know what it means? Supreme Court Approved Leases – Insider Tips to Supreme Court Approved Leases – Industry Update and common Errors and Omissions Claims FREC Update, FIRPTA changes, and OFS rule changes FREC Update, FIRPTA changes, and OFS rule changes – Questions from the audience

FREC Update Regulation update coming soon – Reactivation after null and void – effective 1/17/2016 – Hardship cases – effective 1/17/2016 – Broker vacancy provision – effective 2/1/2016 Audit your business model, are you protected? Escrow & Office Audits Reporting of guilty finding or adjudication of any criminal matter. 30 days, Everything except traffic ticket, Failure to report?

FIRPTA Withholding Rate Increasing from 10% to 15% If the amount realized exceeds $1,000,000, then the withholding rate is 15% on the entire amount, regardless of use by the Transferee. If the amount realized (generally the sales price) is $300,000 or less, AND the property will be used by the Transferee as a residence no sums need be withheld or remitted. (Take extreme caution when someone declares a “residence”….differ to an attorney or accountant!)

FIRPTA If the amount realized exceeds $300,000 but does not exceed $1,000,000, AND the property will be used by the Transferee as a residence, then the withholding rate is 10% on the full amount realized. (Additional regulations coming….differ to an attorney or accountant!) The current FAR/BAR contract form contains language specifically referring to a 10% withholding.

Florida Realtors Legal Hotline (407) …we answered 60,000 calls in 2015, we look forward to hearing from you!