FREC Publishes Proposed Affidavit Rule

The Florida Real Estate Commission has proposed wording for a new rule that includes affidavit forms that buyers must sign at closing.

ORLANDO, Fla. – The Florida Real Estate Commission (FREC) proposed a rule containing buyer affidavits as referenced in SB 264, a bill related to sales to “foreign principals, persons and entities” that went into effect on July 1, 2023.

Buyers are to sign the applicable affidavit (one form is for buyers who are natural persons and one form is for buyers which are entities) “at the time of purchase,” which the proposed rule specifies is at closing.

The proposed rule and requirements can be found on the Florida Administrative Code’s website. Members may send comments to FREC within 21 days after Nov. 1, and anyone may ask for a workshop. Additional information on how to do that can be found in the website announcement.

Notice of Proposed Rule

DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION
Florida Real Estate Commission
RULE NO.: RULE TITLE:
61J2-10.200 Buyer’s Affidavits; Form

PURPOSE AND EFFECT: The Board proposes a new rule that will implement a form for buyer’s affidavits.
SUMMARY: The new proposed rule will implement a form for buyer’s affidavits.
SUMMARY OF STATEMENT OF ESTIMATED REGULATORY COSTS AND LEGISLATIVE RATIFICATION:

The Agency has determined that this will not have an adverse impact on small business or likely increase directly or indirectly regulatory costs in excess of $200,000 in the aggregate within one year after the implementation of the rule. A SERC has not been prepared by the Agency.

The Agency has determined that the proposed rule is not expected to require legislative ratification based on the statement of estimated regulatory costs or if no SERC is required, the information expressly relied upon and described herein: During discussion of the economic impact of this rule at its Board meeting, the Board concluded that this rule change will not have any impact on licensees and their businesses or the businesses that employ them. The rule will not increase any fees, business costs, personnel costs, will not decrease profit opportunities, and will not require any specialized knowledge to comply. This change will not increase any direct or indirect regulatory costs. Hence, the Board determined that a Statement of Estimated Regulatory Costs (SERC) was not necessary and that the rule will not require ratification by the Legislature. No person or interested party submitted additional information regarding the economic impact at that time.

Any person who wishes to provide information regarding a statement of estimated regulatory costs, or provide a proposal for a lower cost regulatory alternative must do so in writing within 21 days of this notice.

RULEMAKING AUTHORITY: 692.202(5)(c), 692.203(6)(c) FS.
LAW IMPLEMENTED: 692.202, 692.203 FS.
IF REQUESTED WITHIN 21 DAYS OF THE DATE OF THIS NOTICE, A HEARING WILL BE SCHEDULED AND ANNOUNCED IN THE FAR.
THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE IS: Giuvanna Corona, Executive Director, Florida Real Estate Commission, 400 W. Robinson Street, #N801, Orlando, FL 32801, Giuvanna.Corona@myfloridalicense.com.

Full text of proposed rule

61J2-10.200 Buyer’s Affidavits; Form

In order to implement sections 692.202(5)(c), 692.203(6)(c), and 692.204(6)(c), Florida Statutes, the Commission hereby establishes the following Forms of Affidavits of Buyers of Property.
Buyer’s Affidavits. At the time of purchase, buyers of real property shall sign an affidavit under penalty of perjury attesting to the requirements of sections 692.202-205, Florida Statutes. Such affidavits shall be signed by the buyers at the time of closing.
Individual buyers shall use the following Affidavit, Part III, Ch. 692 F.S. – Conveyances to Foreign Entities – By Natural Person Buyer.

If finalized in current form, the affidavits will read:

For a “Natural Person Buyer”

Affidavit

[Part III, Ch. 692 F.S. - Conveyances to Foreign Entities - By Natural Person Buyer]

BEFORE ME, the undersigned authority, duly authorized to take acknowledgments and administer oaths, personally appeared___________________(“Affiant”), who deposes and says under penalties of perjury that:

(When used “Affiant” includes singular or plural as context so requires or admits.)
Affiant is purchasing or acquiring an interest in the following described real property:
[Insert Legal Description]
Affiant has been given the opportunity to consult with an attorney.
Affiant is (initial which is applicable):
• Not a Foreign Principal as defined in s. 692.201, F.S., and is in compliance with the requirements set out in ss. 692.202-205, F.S. OR
• A Foreign Principal as defined in s. 692.201, F.S., and is in compliance with the requirements set out in ss. 692.202-205, F.S.
Affiant acknowledges the foregoing representations will be relied upon to establish compliance with the law.

___________________________________________
(Affiant)____________________________________
Print Name:_________________________________
Address:____________________________________

STATE OF ______________________
COUNTY OF ____________________
Sworn to (or affirmed) and subscribed before me by means of [ ] physical presence or [ ] online notarization this ___ day of _____, 20___, by___________________ who [ ] is personally known or [ ] has produced ______________ as identification.

Notary Seal ____________________________________
Notary Public
Printed Name: ________________________
My Commission Expires:________________

For an “Entity Buyer”

Affidavit

[Part III, Ch. 692 F.S. - Conveyances to Foreign Entities - By Entity Buyer]

BEFORE ME, the undersigned authority, duly authorized to take acknowledgments and administer oaths, personally appeared ____________________________________ (“Affiant”) who deposes and says under penalties of perjury that:

Affiant is the [state official capacity] of [state name/type/venue of entity], which is hereinafter referred to as “Buyer.” All statements in Lines 4 through 5 below are made solely with respect to the Buyer and any holder of a “Controlling Interest” in the Buyer (as defined in s. 287.138(1)(a), F.S.), in each case solely with respect to the real property identified in Line 2.
Buyer is purchasing or acquiring an interest in the following described real property:
[Insert Legal Description]
Affiant has been given the opportunity to consult with an attorney.
Buyer is (initial which is applicable):
____ Not a Foreign Principal as defined in s. 692.201, F.S., and is in compliance with the requirements set out in ss. 692.202-205, F.S.
OR
____ A Foreign Principal as defined in s. 692.201, F.S., and is in compliance with the requirements set out in ss. 692.202-205, F.S.
Affiant acknowledges the foregoing representations will be relied upon to establish compliance with the law.

___________________________________________
(Affiant)____________________________________
Print Name:_________________________________
Address:____________________________________

Notary Seal ____________________________________
Notary Public
Printed Name: ________________________
My Commission Expires:________________

Name of person originating proposed rule: Florida Real Estate Commission
Name of agency head who approved the proposed rule: Florida Real Estate Commission
Date proposed rule approved by agency head: October 24, 2023
Date notice of proposed rule development published in FAR: July 28, 2023