What is the Florida Realtor Legal Hotline?
The Florida Realtor Legal Hotline is designed to provide legal help for members of Florida Realtors. The legal hotline is intended to assist Florida Realtors members in understanding the legal issues and risks associated with real estate transactions. Because the staff attorneys are so knowledgeable, by providing legal opinions and insight, members are able to reduce their risks and save themselves time and expense in dealing with real estate legal issues.
The hotline can help by answering questions about: real estate disputes; local, state , and federal legal cases; legal definitions of various words and terms used in the law; contracts and how to use the Greater Tampa Association of Realtors Contract Forms; fair housing rights; creative financing options; how to obtain and set up a Florida Limited Liability Company and Florida corporation; and licensing issues including advertising requirements and license complaints.
In order to use the legal hotline, a member simply calls the legal hotline, and if the attorney on staff that answers your call cannot directly assist you, the information will be referred to an attorney with knowledge of the area of law involved. Florida Realtors provides legal advice through the legal hotline to its members only, not to the general public, in the legal hotline chat or by email.
Accessing the Legal Hotline
A valid membership with the Florida Realtor Association is required in order to use the Florida Realtor Legal Hotline. Either a current member or an employee of an office where all of the licensees are members of the Florida Realtor Association is eligible to call the hotline. Applicants must be designated members of their board of directors, broker associates and sales associates acting under the guidance of the broker, or managing brokers.
To access the Florida Realtor Legal Hotline, you must call 407-513-7272 between 8:30 a.m. and 10:30 p.m. The hotline is available for use 24 hours a day, seven days a week. The effort is intended to help Realtors resolve legal questions with a live attorney within a matter of hours. You may also send your question through the online application or fax it to 407-513-7269. Using the online application is recommended, since it also goes to a broader team of attorneys.
Questions that are answered by the legal hotline attorneys in response to your question are not considered normal, routine, advisory questions. The advice from the hotline attorneys is therefore considered confidential and court-admissible. Calling the hotline is free; however, a $10 per-incident fee is charged for faxing in a question to be answered by the hotline attorneys. This fee is payable through your credit or debit card.
Legal Hotline: Common Topics Answered
Common Issues Addressed by the Florida Realtor Legal Hotline
In the course of a year, the Florida Realtor Legal Hotline may field thousands of questions. While it is difficult to quantify, and as stated above there are some issues which never get asked about, there are definitely some trends that reveal themselves. According to officials within the Florida Realtors Association, the three topics most commonly addressed are: contract disputes (including closing problems and post-closing obligations), disclosure requirements, and regulatory issues.
Contract disputes run the gamut of topics, with questions being raised as to performance of contracts, nonperformance of contracts, breach of contract and all types of closing problems. Issues related to post-closing obligations are more complex, as they require a greater familiarity with the specific language in the Florida Bar/Florida Realtors, as well as the contract of sale and other documents related to the particular transaction.
Disclosure requirements are a frequent topic, because what constitutes a required disclosure is such a moving target. This is particularly true given the expected changes in the law to be prompted by a significant appellate case expected to be issued from the First District Court of Appeal.
Regulatory issues are often concerned with the proper method of handling and/or placing deposits, the handling of other escrow amounts and the necessity to place and maintain escrow bonds, bonds and letters of credit. Other regulatory topics include broker advertising regulations, DBPR guidelines for sign placement and content, MLS reporting and similar issues.
Legal Hotline Benefits
Cost-effectiveness
The Florida realtor legal hotline not only gives realtors access to legal resources that would be far too expensive for most to hire on retainer, but it’s also a process that frees them from having to engage in general business expenses. For example, anyone who has hired an attorney solely to look over a contract knows it can be an immensely expensive process. The case study we performed for one client showed the legal hotline saved an average of $210,300 in legal fees for our clients.
Easy access
The ease with which realtors may pick up the phone and get in touch with a qualified, licensed attorney is invaluable for anyone in a complicated line of work. The advice RE Bar Camp received is the same kind of advice that other real estate agents and brokerages will receive during their time as legal hotline callers . By providing our attorneys and clients with streamlined processes and forms, we’ve shown that the legal hotline will save our clients’ time, and make it easier to get the answers they need.
Mitigates risk
The less a real estate agent or brokerage feels that they may be operating in a litigious environment the more encouraged they will feel to push forward with getting deals done and earning a living. Florida real estate attorneys provide that security net by answering questions, maintaining point of contact, and keeping records of all inquiries to the legal hotline, which can prove incredibly useful in court if litigation becomes necessary. In either case (litigation or not), it is clear that Florida real estate professionals need the legal hotline and that it is quite an advantage for them.
Limitations of the Legal Hotline
While the Legal Hotline is a very valuable tool that every member of the Florida Realtor organization has, there are some limitations to what it provides. The hotline is not intended to be a litigation service. It does not advise on forms or contracts in specific situations. RN:318, 633, 741 and 911 form specific answers that are used under specific circumstances. If you have a dispute that could end up being litigated in court, you should strongly consider hiring an attorney to review the situation with you and represent you. The Legal Hotline cannot give you attached advice on a specific transaction. It is not intended to substitute for competent counsel from an attorney. It does not review documents for enforceability or negotiate for you. It does not conduct surveys for members. We do not give advice on patent, copyright or trademark matters. We do not give advice on business organization or formation. We do not advise on commercial leases. We do not give tax advice under any circumstances. The Legal Hotline staff does not give broker advice, tax advice, title or closing advice or appraisal advice. If you have a legal matter that requires a formal opinion letter, representation in a legal matter or formal advice, you must seek that from a competent attorney whose practice is limited to the area of law for which the advice is required. The Legal Hotline staff will refer you to CLE programs and other sources of assistance.
Florida Realtors’ Testimonials
CASE STUDY: Rachael Gleason of Re/Max in Orlando, Florida
I contacted the Hotline in October of 2009 with a question about some internet lead generation marketing with a local company. The final decision was made by my Broker after I received the response from the Hotline. My broker has now used that company to provide internet lead generation and web development services for our entire office. The Hotline is great because it provides you with the information you need to make informed decisions and because the advice is free (your membership with the association covers the cost of the call). The attorneys understand the specific referral and commission issues we face in Florida which is important. They can provide guidance regarding offer deadlines, counteroffer issues, short sales, I see many issues day to day that I am sure will eventually find their way to the Hotline. We are all busy and many offices do not have an in house attorney or broker to ask questions for assistance. This is invaluable service that I use for myself and have referred clients to as well.
CASE STUDY: Michelle Hart of Prudential Florida Realty
I actually used the legal hotline before my closing in an investor deal that one of my clients was purchasing. We had gotten through the negotiations, inspections, etc. and we were literally at the closing table when my office contacted the legal hotline for a question. There were some comments upon further review from the attorney on the deal about concerns he had with my customer type as a foreign national. One thing led to another and the closing was called off. Fortunately we were not charged any cancellation fees but the transaction died at the closing table.
CASE STUDY: Craig Phillips of Keller Williams Professionals
We had a wholesale transaction that was set for closing within a couple of days. When one member of our team called the hotline , Karen informed her that the buyer had not completed the mandatory settlement state form. We waited while the buyer’s agent contacted the buyer and then confirmed that the contract should be changed to extend the closing date one day so that the buyer could execute the necessary paperwork. Karen was extremely well spoken and very nice. She provided us with the information we needed and I felt confident that we could close the next day.
CASE STUDY: John Anderson of Keller Williams
I sought advice from the hotline when a Feeling of Unfairness arose between Seller and Buyer. The Buyer was using a Very Discounted Listing Broker. The Listing Broker had sent a counter proposal with a 10% cash deposit required. That means that the Buyer would have to come to the table with a $40,000.00 deposit being a first time buyer. Naturally the Buyer rejected the counter offer.
The Seller then proceeded to cancel the contract and list the property with an Exclusive Listing Broker with Keller Williams. I represented the Buyer in the transaction. I called the Hotline who guided my client on how to write a contract with the same details as the first contract. My client wrote a contract for $430K with 10% Deposit. Meanwhile, the Seller put a sign in the yard indicating the property was under contract with the Exclusively Listed Keller Williams Broker. Within 24 hours of the contract coming to the MLS Keller Williams, my Buyer had a fully signed contract on the liability laden property, went to closing 48 hours later and purchased the property. My Buyer received the property and the Seller had to pay commissions to both the Keller Williams Listing Broker and the Keller Williams Selling Broker. My Buyer was elated with the transaction and would not have been able to pull it off without help from the Hotline.