Man, it has been such a long and hot summer.  Don’t get me wrong, as a Florida cracker, the heat is just a fact of life for us Floridians.  It is the cost of living in such a beautiful state.  But this year was something different.  I remember one day this summer there was a reported heat index of 117 degrees.  Golf today?  No thanks.   My wife and I went drift fishing for trout in the St. Marks flats one morning and not only was it brutally hot, but it was so dead calm that the boat simply stopped moving.

This week, however, is different.  Mid-eighties all week and not a lot of humidity.  There is a coolness to the air we haven’t seen in a while, and it is so welcome.  Coupled with the sighting of pumpkin spiced lattes at Starbucks and the start of the college football season, it is clear the sign of the times can only mean we are headed to fall.

I am also now beginning to see another sign of the times.  Interim committee meetings in Tallahassee, bills being filed for consideration and, of course, phone calls for campaign contributions which can only mean one thing, the 2024 Legislative Session must be just around the corner.  It’s true of course, the 2024 Legislative Session is scheduled to begin on January 9^th and conclude on March 9^th, 2024.  With interim committee meetings scheduled every month from now until the start of Session, now is the time to get prepared for success in 2024. 

I have worked in this process for a number of years, and I have identified are several key ingredients that are helpful to success in the legislative process.  Check up and see how you are doing.

Are you scheduled to attend the FLTA Lobby Days? Save the Date for February 5-7, 2024

Lobby days provides the perfect venue for participants to network with peers, gather intelligence and strengthen relationships both in the title industry and with legislative leaders.  Like a staff retreat, getting out of your typical daily routine and gathering with other industry leaders provides you the opportunity to take see a bigger picture on the challenges and opportunities we are facing as a title industry.  It is also a great opportunity to catch up with the state legislators you know, get to know those you don’t and potentially develop a contact with state regulators.  If you haven’t done so already, make plans to attend. 

Do you know your state senator and state representative personally?

Not to oversimplify but success during a legislative session, whether trying to pass a bill or defeat a bad idea, is based on relationships and intelligence.  Legislators don’t typically file bills attacking industries that are important to their district.  Nor do they make it a practice to attacking someone they know and like from their community.

Further, term limits in Florida’s Constitution limits a state legislators’ term to 8 years in most cases.  That means today’s freshman legislator is tomorrows Speaker, committee chair or leader.  And concurrently, your relationship with your local state legislator has a life span of a brief 8 years.  After that, someone else will hold the seat and the process begins again.  Just like in business, you are either growing or you are dying. 

If you already know your state legislator that’s a great start but, have you connected with them recently?  You should think of it like you would a client.  How do you get a client to remain with your business, connect with them frequently, not just when the bill is due and help them be successful at their goals.  Politics is no different.

Do you understand challenges in the title industry from a broader perspective than simply your challenges?

Each title agent or underwriter faces different challenges based upon their client makeup, new business targets, where they choose to operate and what their goals are.  The title industry in Florida also faces numerous challenges to our ability to be successful in a complicated and interconnected industry that is critical to Florida’s continued growth.

I am frequently asked by legislators to help them understand the challenges particular clients are facing.  When meeting with your local legislators you should be prepared to explain not just your individual business’ challenges but also broader title industry challenges.  Being able to do so will empower you with your local state legislators and reinforce your position as a valuable source of information and contact.

I seem to remember an old Florida Lottery commercial with the catch phrase being something like, “You can’t win if you don’t play.”  It’s a funny tagline that I find equally relevant to legislative advocacy.  Truth is, we will not win for the title industry in Florida if our members choose to sit on the sidelines.  It's clear by the signs that the 2024 Legislative Session is approaching.  What are you going to do about it?

David Daniel is the Agents' Section Lobbyist and Lobbyist with Smith, Bryan & Myers

Mortgage Payoff Fraud is spiking! Home sales may be down, but fraudsters are amping up on Mortgage Payoff Fraud. This alarming trend is significantly impacting our industry and can be devasting to a title agency due to the size of the loss.

What is Mortgage Payoff Fraud?

Mortgage Payoff Fraud is a deceptive scheme where fraudsters attempt to manipulate the mortgage payoff process during a real estate transaction. They may falsify information related to mortgage payments or attempt to divert funds meant for mortgage payoff to their own accounts. This can lead to serious financial repercussions for both the title insurer, title agent, and the parties involved in the transaction.

How to fight back? Here are some tips to add to your process for obtaining Mortgage Payoffs!

1. Always be on the lookout for a new payoff replacing a current statement you have on file.
2. Create a database of previously verified accounts and payees for each bank/lender and match the wire information in the payoff statement to what is in your internal database.
3. Verify all parties – lender, borrower, and any intermediaries - ensuring that all are legitimate and authorized.
4. Verify with the payee using a previously verified phone number you have on record; never use the one on the payoff statement.
5. When verifying, have the bank verbally read the account information to you, instead of reading it to them.
6. If unable to verbally verify the payoff wire instructions, choose to arrange for an overnight payment made by check instead of wire.  Mail it to the address you have on file for the lender.
7. Do not rely on third-parties, such as mortgagors or sellers, for information.
8. Do not click on a link in an email that appears to come from the lender without verifying it is legitimate first. These links could take you to a fraudulent website or portal.
9. Be sure to use secure communication for sharing sensitive information like wire transfer instructions and account details.  These channels should include multi-factor authentication, and when communicating over the phone, consider employing authentication questions and passwords as extra security measures.
10. Order payoffs with enough time to allow for verification procedures.
11. Have staff meetings on a regular basis to remind everyone to be vigilant and review procedures.
12. Have a clear and detailed Incident Response Plan should an event happen. 

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Back to the Cyber Secuirty Page

July 1, October 1 and January 1 are commonly known for their effective dates of new laws. Other months and dates may also be used, including the "upon being signed by the Governor" date. As such, several new Florida laws are already in play since July 1^st. Here are some that may be of interest to the industry and their effective date(s).

Be sure to review and save a copy of the bills for your reference. The below descriptions are from legislature staff analysis in the Florida House of Representatives or Florida Senate. For questions on these bills, please contact your legal counsel or title insurer.

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HB 487 – Department of Financial Services¹

                Ch. 2023-144

• Relieves title insurance, life insurance, and annuity insurance agents and agencies from the requirement that they notice all active policyholders of an office closure that is more than 30 days because the related policies are not continually serviced by the agent or agency.
• Permits DFS to suspend, revoke, or refuse to renew or continue the license or appointment of a title agent or agency that:
• • Misappropriates, converts, or unlawfully withholds funds related to an escrow agreement, real estate sales contract, or settlement of a real estate transaction; or
  • Is the subject of an adverse action against a license or similar credential in another state, a court of competent jurisdiction, or federal agency, or similar.
• For the purposes of title agents and agencies, changes the authority to act as an escrow agent from the title agent to the title agency and removes the obligation to invest the escrow funds consistent with the requirements applicable to state investment of funds.
• The bill was approved by the Governor on May 25, 2023, ch. 2023-144, L.O.F., and became effective on that date.

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SB 770 – Residential Loan Alternative Agreements²

                Ch. 2023-117

• The bill creates s. 475.279, F.S., to regulate residential loan alternative agreements. The bill defines the term “residential loan alternative agreement” as a signed writing or a signed and written legal instrument between a person and a seller or owner of residential real property that:
• • Grants an exclusive right to a person to act as a broker;
    
  • Has an effective duration, inclusive of renewals, of more than two years; and
  • Requires the person to pay monetary compensation to the seller or owner.
• The bill defines the term “disposition” to mean “a transfer or voluntary conveyance of the title or other ownership interest in residential real estate.” It also defines the term “residential real property” to mean “improved residential property of four units or fewer or unimproved residential real property intended for four units or fewer.”
• The bill prohibits a residential loan alternative agreement from authorizing a person to place a lien or otherwise encumber any residential real property. Nor can a residential loan alternative agreement constitute a lien, an encumbrance, or a security interest in the residential real property.
• Under the bill, a residential loan alternative agreement may not be enforced by a lien or constructive trust in the residential real property or upon the proceeds of the disposition (sale) of the residential real property.
• The bill provides that a residential loan alternative agreement may not be assigned and becomes void if the listing services do not begin within 90 days after the execution of the agreement by both parties. The bill provides that a listing agreement that does not meet these requirements is unenforceable in law or equity and may not be recorded by the clerk of the circuit court.
• Additionally, the bill deems a violation of s. 475.279, F.S., to be an unfair or deceptive trade practice within the meaning of FDUTPA, and provides that a person who violates this section is subject to the penalties and remedies provided FDUTPA.
• The bill takes effect July 1, 2023.

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HB 1419 – Real Property Fraud³

                Ch. 2023-238

• Recording Notification Service
• The bill creates s. 28.47, F.S. to require the clerks of the circuit court to, on or before July 1, 2024, create, maintain, and operate a free recording notification service, open to all persons wishing to register for the service, to provide property owners with early notice that a land record has been filed on their property. Under the bill:
• • “Recording notification service” means a service which sends automated recording notifications.
  • "Recording notification” means a notification sent by electronic mail indicating to a registrant that a land record associated with the registrant’s monitored identity has been recorded in the county’s public records.
  • “Registrant” means a person who registers for a recording notification service.
  • “Land record” means a deed, mortgage, or other document purporting to convey or encumber real property.
  • “Monitored identity” means a personal or business name or a parcel identification number submitted by a registrant for monitoring under a recording notification service.
• Registration for the recording notification service must be made possible through an electronic registration portal, which portal must:
• • Be accessible through a direct link on the home page of the clerk’s official public website;
  • Allow a registrant to subscribe to receive recording notifications for at least five monitored identities per valid electronic mail address provided;
  • Include a method by which a registrant may unsubscribe from the service;
  • List a phone number at which the clerk’s office may be reached for questions related to the service during normal business hours; and
  • Send an automated electronic mail message to a registrant confirming his or her successful registration for or action to unsubscribe from the service, which message must identify each monitored identity for which a subscription was received or canceled.
• Further, when a land record is recorded for a monitored identity, the bill requires that a recording notification be sent within 24 hours of the recording to each registrant who is subscribed to receive recording notifications for that monitored identity. Such notification must contain:
• • Information identifying the monitored identity for which the land record was filed;
  • The land record’s recording date;
  • The official records book and page number or instrument number assigned to the land record by the clerk;
  • Instructions for electronically searching for and viewing the land record using the assigned official record book and page number or instrument number; and
  • A phone number at which the clerk’s office may be contacted during normal business hours with questions related to the recording notification.
• Finally, the bill provides that:
• • There is no right or cause of action against, and no civil liability on the part of, the clerk with respect to the creation, maintenance, or operation of a recording notification service.
• Nothing in this section may be construed to require the clerk to provide or allow access to a record or information which is confidential and exempt from s. 119.071 and s. 24(a), Art. I of the State Constitution or to otherwise violate Florida’s public record laws.
• • This section applies to county property appraisers that have adopted an electronic land record notification service before the bill’s effective date, but where a land record is recorded for a monitored identity, notice through the property appraiser’s service must be sent within 24 hours of the instrument being reflected on the county tax roll by the property appraiser.

Quiet Title Actions

• The bill creates s. 65.091, F.S., to expressly state than an action to quiet title based on a title fraud allegation may be maintained under chapter 65, F.S. Further, the bill:
• • Requires the clerks of the circuit court to provide a simplified form for the filing of a quiet title action based on a title fraud allegation and instructions for completing such form.
  • Entitles a petitioner bringing a quiet title action based on a title fraud allegation to the expedited summary procedure timeframes set out in s. 51.011, F.S.45
  • Requires a court hearing a quiet title action to quiet title in and award a prevailing plaintiff with the same title and rights to the land that the plaintiff enjoyed before the title fraud.

Quitclaim Deed

• The bill creates s. 689.025, F.S., to prescribe a statutory form for quitclaim deeds. Specifically, the bill provides that a quitclaim deed must be in substantially the following form:

Witnesseth, that the said first party, for the sum of $(amount), and other good and valuable consideration paid by the second party, the receipt whereof is hereby acknowledged, does hereby remise, release, and quitclaim unto the said second party forever, all the right, title, interest, claim, and demand which the said first party has in and to the following descried parcel of land, and all improvements and appurtenances thereto, in (county), Florida:

(Legal description)

• The bill also requires that a quitclaim deed include:
• • The legal description of the property the instrument purports to convey, or in which the deed purports to convey an interest, which description must be legibly printed, typewritten, or stamped on the document.
  • A blank space for the parcel identification number assigned to the property the instrument purports to convey, or in which the deed purports to convey an interest, which number, if available, must be entered on the deed before it is presented for recording.
• However, the bill provides that the:
• • Failure to include such blank space for the parcel identification number does not affect the conveyance’s validity or the deed’s recordability.
  • Parcel identification number is not part of the property’s legal description otherwise set forth in the deed and may not be used as a substitute for the legal description.

Recording Real Property Conveyances (Effective January 1, 2024)

• The bill amends s. 695.26, F.S., to require that the post-office address of each witness to an instrument purporting to convey real property be legibly printed, typewritten, or stamped upon such instrument.

Pilot Program

• The bill creates the Title Fraud Prevention Through Identity Verification Pilot Program (“Pilot Program”) in s. 28.2225, F.S., for a period of two calendar years. Under the Pilot Program, the clerk of the circuit court for Lee County, Florida (“clerk”), may require that a person presenting a deed or other instrument purporting to convey real property or an interest therein for recording produce a government-issued photographic identification card as follows:
• • When the person presents the deed or qualifying instrument to the clerk for recording in person, the clerk may require the person to produce a government-issued photographic identification card for inspection by the clerk before recording the deed or instrument. The clerk must then record the name and address of such person, as this information appears on the identification card, in a record to be kept by the clerk, along with the official records book and page number or instrument number of the deed or instrument ultimately recorded in connection to the production of the identification card. Such a record may not be made available for viewing on the clerk’s official public website but must be made available for public inspection and copying as required by Florida’s public records laws.
  • When the person presents the deed or qualifying instrument to the clerk for recording through an electronic recording service, the clerk may require the person to also submit a photocopy of a government-issued photographic identification card to the clerk before recording the deed or instrument. The clerk must note on the photocopy the official records book and page number or instrument number assigned to the deed or instrument ultimately recorded in connection to the submission of the photocopy and retain the photocopy in a record kept by the clerk. Such a record may not be made available for viewing on the clerk’s official public website but must be made available for public inspection and copying as required by Florida’s public records laws. However, the person submitting the photocopy may redact from the photocopy prior to its submission all information he or she does not wish to be made public, except for his or her name, address, and photograph.
• Further, under the Pilot Program, the clerk may refuse to record a deed or qualifying instrument if the clerk requires the production of an identification card as specified in the bill and the person presenting such deed or instrument for recording does not produce the requested identification card.
• The bill provides that, if the clerk chooses to participate in the Pilot Program, the clerk must:
• • Provide notice of the identification card requirement on the clerk’s official public website.
  • Require the production of an identification card from all persons presenting a deed or qualifying instrument for recording, whether in person or through an electronic recording notification service, until such time as the clerk:
  • • Chooses to cease participating in the Pilot Program; and
    • Provides notice that the production of an identification card is no longer required on the clerk’s official public website.
  • By December 31, 2025, provide a report containing the following information to the Governor, the President of the Senate, and the Speaker of the House of Representatives:            
  • • The number of persons who presented a deed or qualifying instrument for recording:
    • • In person.
      • Through an electronic recording notification service.
• • • The types of identification cards produced in connection with the presentation of deeds or other qualifying instruments for recording, and the number of each type.
    • Feedback received from the community, if any, in response to the clerk’s implementation of the Pilot Program.
    • Whether the Pilot Program led to the identification of any persons suspected or accused of fraudulently conveying, or attempting to fraudulently convey, real property, and the outcome of any criminal charges or civil actions brought against such persons.
    • The clerk’s recommendation as to whether the production of a government-issued photographic identification card in connection with the presentation of a deed or other instrument for recording is appropriate to require throughout the state.
    • Any other information the clerk deems necessary.
  • The bill provides that nothing in s. 28.2225, F.S., may be construed to require the clerk to provide or allow access to a record or information which is confidential and exempt from s. 119.07(1), F.S., and s. 24(a), Art. I of the State Constitution or to otherwise violate Florida’s public records laws.
• Effective Date The bill was approved by the Governor on June 14, 2023, ch. 2023-238, L.O.F., and takes effect on July 1, 2023, except that the amendments made by the bill to s. 695.26, F.S., take effect on January 1, 2024.

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SB 264 – Interests of Foreign Countries⁴

                Ch. 2023-33

The bill (Chapter 2023-33, L.O.F.) generally restricts the issuance of government contracts or economic development incentives to, or real property ownership by, foreign principals, which are certain individuals and entities associated with foreign countries of concern. Foreign countries of concern include the People’s Republic of China, the Russian Federation, the Islamic Republic of Iran, the Democratic People’s Republic of Korea, the Republic of Cuba, the Venezuelan regime of Nicolás Maduro, and the Syrian Arab Republic.

With respect to conveyances of real property in this state, the bill generally:

• Prohibits foreign principals from owning or acquiring agricultural land in the state.
• Prohibits foreign principals from owning or acquiring any interest in real property within 10 miles of any military installation or critical infrastructure in the state.
• Prohibits China, Chinese Communist Party or other Chinese political party officials or members, Chinese business organizations, and persons domiciled in China, but who are not citizens or lawful permanent residents of the U.S., from purchasing or acquiring any interest in real property in the state.
• Provides limited exceptions from the ownership restrictions for the purchase of one residential property that is not on or within 5 miles of any military installation in the state. 

The bill also amends:

• The Florida Electronic Health Records Act, to require that the offsite storage of certain personal medical information be physically maintained in the continental U.S., U.S. territories, or Canada.
• The Health Care Licensing Procedures Act, to require licensees to sign affidavits attesting that all patient information stored by them is being physically maintained in the continental U.S., U.S. territories, or Canada.

Finally, the bill amends the statute criminalizing threats and extortion, to provide that a person who commits a violation of the statute, and at the time is acting as a foreign agent with the intent of benefitting a foreign country of concern, commits a first degree felony.

These provisions were approved by the Governor and take effect July 1, 2023.

Affidavits for Interests of Foreign Countries may be found on the FLTA web site: https://flta.org/ForeignInterests.

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SB 708 – Estoppel Letters (Mortgage)⁵

                Ch. 2023-135

• Reduces the time to respond to an estoppel letter request from 14 days to 10 days.
• Allows a mortgagee or mortgage servicer to send a corrected estoppel letter, so long as the previous estoppel letter was not relied upon.
• Prohibits a mortgagee or mortgage servicer from qualifying, reserving the right to change, or conditioning or disclaiming the reliance of others on a current, valid estoppel letter.
• Prohibits a mortgagee or mortgage servicer from refusing to accept funds received that conform with the amount provided in a current, valid estoppel letter; and requires the mortgagee or mortgage servicer to apply such funds to the balance of the loan.
• Requires a mortgagee or mortgage servicer to execute an instrument acknowledging release of the mortgage and send it for recording in the official records of the proper county within 60 days of payoff. The recorded release must be sent to the mortgagor or record title owner of the property. The bill also provides for attorney fees for prevailing parties in civil actions relating to these requirements.
• Specifies that the release of a mortgage does not necessarily relieve the mortgagor, or the mortgagor’s successors or assigns, from any personal liability on the loan or other obligations previously secured by the mortgage.
• Provides the requirements for making and responding to an estoppel letter request.
• Standardizes the minimum contents of an estoppel letter.
• Provides for application to existing mortgages.
• The effective date of the bill is October 1, 2023.

¹ HB 487 - House Final Bill Analysis 3 (Final Bill Analysis)

² HB 770 – Senate Rules (Post Meeting)

³ HB 1419 – House Final Bill Analysis

⁴ SB 264 - Senate Judiciary Committee Analysis

⁵ SB 770 - Senate Rules Post Meeting

For questions on these bills, please contact your legal counsel or title insurer.

Did you know that Cybercrime is expected to produce $8 trillion in global costs in 2023 and could reach as high as $10.5 trillion by 2025?

Cybersecurity services are more crucial than ever, and there are many companies ready to step up and assist with your offense game.

These FLTA Members below specialize in a variety of cybersecurity services:

Please note:  This article is not an endorsement of any of the below companies.  Please contact them directly for all information and services.

Cyber Insurance Services

Fraud Protection Services

Financial Cyber Security Services

Information Security Services

Managed IT Services

Website Security Services

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For more on Cyber Security, visit the FLTA Cyber Security Page.

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As you likely already know, AI stands for Artificial Intelligence.  But did you know that AI is capable of generating someone else’s voice which actually sounds deceptively like that other person? This technology has gotten so good that the simulated voice is nearly indistinguishable from an authentic human voice as heard by the human ear.  Moreover, the technology has become relatively inexpensive and widely available so that ill-intentioned persons can access it from the internet.

While perhaps not all persons using AI have bad intentions, those who do now have the ability to impersonate someone else’s voice to perpetrate a scam, and the types of scams we are seeing are limited only by imagination, determination, and opportunity – both on personal and business fronts.  For example, recent news publications described an incident where a fraudster used AI technology to simulate a child’s voice, claiming that the child had been kidnapped and requesting a ransom payment; similarly, a fraudster swindled a couple out of a large sum by using AI technology to convince them that their son was asking them for bail money.  The possibilities are limitless, and the technology behind it is so new that the victims are typically unsuspecting and extraordinarily vulnerable.

WHAT MIGHT THIS MEAN FOR OUR INDUSTRY?

We all have distinctive voices.  How often does it happen that you already know who you are talking to simply by hearing their voice?  Let’s think about how DeepFake AI could affect the closing transaction being handled at your office.

DeepFake AI allows anyone to spoof a voice:  A seller calls with a change of disbursement, a broker calls telling you it is ok to pay the realtor at closing, the president of your company calls to tell you to release a wire or pay an invoice.  What would your team do if a realtor called to get additional information about their customer (sensitive information used to then defraud them)? A seller or buyer calls to gain information about the net proceeds from a sale, confirm financial information from lenders or employment details.   It might even be plausible that your office falls prey to a ghost fraud where the persona of a deceased person is used to convey property without having to go through probate.  Do you have a plan in place to verify any or all of the above?  How can you be sure it really is the person they say they are – especially if you speak with them frequently and it sounds like them?

Think about RON technology and how this new scam may affect digital closings. Speak to your RON vendors and verify what they are doing to keep their platforms secure.

Unfortunately, these are all questions and concerns that we now have to be aware of and try to plan for prior to getting caught by one of these DeepFakes.

HOW CAN YOU PROTECT YOURSELF?

As deep fake technology becomes more advanced, it is becoming increasingly difficult to distinguish between real and fake video calls. However, there are several signs that can help you recognize a deep fake video call and protect yourself.

1.       Pay attention to the quality of the video.  Deep fake videos often have subtle distortions or inconsistencies that can be difficult to detect but may be noticeable upon closer inspection. Look for things like unnatural or jerky movements, blurry edges around the skin and hair, shifts in lighting or skin tone, lips poorly synched with speech and strange blinking or no blinking at all. watch for is hair and teeth that do not look real, as algorithms may not be able to generate frizzy or flyaway hair or individual teeth. One simple way to detect a live deep fake is to ask the person on the video call to turn their profile to the camera. A person turning 90 degrees to the camera will create a distortion that will be detectable in real time.

2.       Pay attention to the audio. Deep fake videos often use synthetic voices or manipulated audio to create a more convincing illusion. Listen for any unusual or robotic-sounding speech patterns, or any discrepancies between the audio and the video.

3.       Watch for any inconsistencies or contradictions in the video that may indicate that it is being manipulated.

4.       Educate your yourself and your staff. Make sure you teach your employees about the various types and serious nature of cyber threats. Make cybersecurity training part of onboarding and provide continuous training.

In conclusion, recognizing a deep fake video call can be difficult, but by paying attention to the quality of the video, the audio and the context, you can protect yourself from bad actors who may be using deep fake technology to perpetuate fraudulent title insurance transactions.

Message from FLTA Cyber Security Committee

___

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Your Association Hard at Work!

In the Florida legislative process, we are concluding week 8 out of 9. As you can imagine it's been a very busy week with bills coming down to the wire and time expiring. Florida's Legislative Session is scheduled to conclude Friday, May 5^th. This is a status update on some of the legislation we are tracking.

SB 7052 / HB 7065 - Insurer Accountability

Revises requirements & conditions for certain insurer market conduct examinations after hurricane; specifies factors office may consider in determining whether continued operation of insurer may be deemed to be hazardous; prohibits officer or director of insolvent or impaired insurer from receiving bonus from such insurer; prohibits Citizens Property Insurance Corporation from determining that risk is ineligible for coverage solely on specified basis; revises prohibitions on insurers against cancellation or nonrenewal of residential property insurance policies; provides if roof deductible is applied under personal lines residential property insurance policy, no other deductible may be applied to other loss to property caused by same covered peril. Effective Date: July 1, 2023.

SB 7052 passed the Senate Floor and is sent to the House in Messages for the House's consideration. The bill was amended in week 7 to remove the language seeking to affect Title Insurance.

Link: SB 7052 First Engrossed version heading to the House

HB 7065 is awaiting to be scheduled on the Special Order Calendar for House consideration.

HB 743/SB 708 - Estoppel Certificates (Mortgage Estoppels)

Revises timeframe for mortgagee or mortgage servicer to send estoppel letter; revises requirements for estoppel letter; prohibits mortgagee or mortgage servicer from denying accuracy of estoppel letter; requires payments be applied to unpaid balance of mortgage; provides methods for sending written request for estoppel letter, estoppel letter, & corrected estoppel letter; requires mortgagee or mortgage servicer to take actions within specified time after unpaid balance of loan secured by mortgage has been fully paid; authorizes attorney fees & costs; provides liability.

HB 743 is awaiting placement on a House Special Order Calendar. (No Change)

SB 708 passed the State Senate by a vote of 40-0 and will now head to the House to be paired with HB 743. (No Change)  

HB 861/ SB 770 - Residential Loan Alternative Agreements

Specifies limitation on term of option to enter into listing agreement for disposition of residential real property; prohibits court from enforcing option to enter into listing agreement by certain means; requires notice & written agreement of residential property owner before broker may assign option to enter into listing agreement to another broker; provides penalties for violations.

SB 770 passed the State Senate by a vote of 40-0 and the House of Representatives by a vote of 116-0 and will now head to Governor DeSantis for his consideration.

Link: SB 770 as Enrolled 

HB 1419/SB 1436 - Property Fraud

Requires clerk of circuit court to create, maintain, & operate opt-in recording notification service through electronic registration portal; specifies portal & notification requirements; provides immunity from liability for clerk; clarifies that action may be brought to quiet title after fraudulent attempted conveyance; directs clerk to provide simplified complaint form; requires real estate licensees & parties providing real estate transaction closing services to send fraud prevention notice; limits liability of real estate licensee for noncompliance but provides that such noncompliance may be introduced as evidence for certain violations; provides that failure of property owner to respond notice does not preclude or limit his or her ability to establish certain challenges or defenses or limit his or her remedy in any quiet title or declaratory judgment action; prescribes form for quitclaim deed; revises requirements for recording instruments affecting real property.

HB 1419 was amended to remove real estate professionals and title agents from sending notices.

SB 1436 is awaiting placement on the Senate Special Order Calendar (No Change)

HB 487/SB 1158 - Department of Financial Services

Section 10 of this bill includes a glitch fix from legislation in 2022.

Department of Financial Services: Revises eligibility for plans of deferred compensation established by CFO; authorizes judge of compensation claims to order injured employee's evaluation by expert medical advisor; revises conditions for nonprofit religious organization to be exempt from requirements of insurance code; adds limited license for transacting preneed funeral agreement insurance; revises licensure requirements for reinsurance intermediary brokers & reinsurance intermediary managers; authorizes certain persons to obtain limited license to sell only policies of life insurance covering expense of prearrangement for funeral services or merchandise; revises requirements, conditions, & procedures for bail bond agency license. Effective date: Upon Becoming a Law. 

HB 487 was sent to the Senate where it was taken up, amended, and passed 37-0. HB 487 will now be returned to the House for their consideration as amended or decline to receive as amended and return to the Senate. 

Link: HB 487 Engrossed 1 version being sent back to House

SB 1158 laid on the table. Now referring to HB 487.

HB 49/SB 430 - Abandoned Cemeteries

Abandoned and Historic Cemeteries: Creates Historic Cemeteries Program within Division of Historical Resources of DOS; creates Historic Cemeteries Program Advisory Council; authorizes certain entities to acquire conservation easements to preserve cemeteries.

HB 49 - Passed the House Floor by unanimous vote and delivered to the Senate to be paired with SB 430. (No Change)

SB 430 - Passed Appropriations Committee during week 8 and awaits 2nd reading to then be placed on Special Order Calendar.

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Your Association Hard at Work!

In the Florida legislative process, we are concluding week 7 out of 9. Earlier this month we shared with you an update on legislative activity in Tallahassee that could change Florida's title insurance rate filing procedures from promulgated to file and use. This is a status update to this legislation and other legislative bills... 

SB 7052 / COM4 (Now HB 7065) - Insurer Accountability

Senate Bill 7052 has passed its committee stops and is awaiting consideration on the Senate Floor. Through the legislative process, the bill has been amended to remove the language seeking to change Florida's promulgated rate structure to a file and use. 

House Bill 7065 (formerly COM4) continues its legislative progress and continues to not include language affecting title insurance.

This is the result of FLTA members, industry lobbyists, and other member organizations working together. For now, it seems Florida's Title Insurance filing system will remain as is, but we will continue to monitor the legislation until sine die (session adjournment) for any unexpected changes.

HB 743/SB 708 - Estoppel Certificates

Revises timeframe for mortgagee or mortgage servicer to send estoppel letter; revises requirements for estoppel letter; prohibits mortgagee or mortgage servicer from denying accuracy of estoppel letter; requires payments be applied to unpaid balance of mortgage; provides methods for sending written request for estoppel letter, estoppel letter, & corrected estoppel letter; requires mortgagee or mortgage servicer to take actions within specified time after unpaid balance of loan secured by mortgage has been fully paid; authorizes attorney fees & costs; provides liability.

HB 743 is awaiting placement on a House Special Order Calendar. 

SB 708 passed the State Senate by a vote of 40-0 and will now head to the House to be paired with HB 743.  

HB 861/ SB 770 - Residential Loan Alternative Agreements

Specifies limitation on term of option to enter into listing agreement for disposition of residential real property; prohibits court from enforcing option to enter into listing agreement by certain means; requires notice & written agreement of residential property owner before broker may assign option to enter into listing agreement to another broker; provides penalties for violations.

SB 770 passed the State Senate by a vote of 40-0 and the House of Representatives by a vote of 116-0 and will now head to Governor DeSantis for his consideration. 

HB 1419/SB 1436 - Property Fraud

Requires clerk of circuit court to create, maintain, & operate opt-in recording notification service through electronic registration portal; specifies portal & notification requirements; provides immunity from liability for clerk; clarifies that action may be brought to quiet title after fraudulent attempted conveyance; directs clerk to provide simplified complaint form; requires real estate licensees & parties providing real estate transaction closing services to send fraud prevention notice; limits liability of real estate licensee for noncompliance but provides that such noncompliance may be introduced as evidence for certain violations; provides that failure of property owner to respond notice does not preclude or limit his or her ability to establish certain challenges or defenses or limit his or her remedy in any quiet title or declaratory judgment action; prescribes form for quitclaim deed; revises requirements for recording instruments affecting real property.

HB 1419 was amended to remove real estate professionals and title agents from sending notices, and passed the House Judiciary Committee by unanimous vote and is scheduled for consideration on the House Special Order Calendar during Week 8.

SB 1436 passed the Senate Rules Committee by unanimous vote and having passed all committees of reference, is prepared for consideration on the Senate floor. 

HB 487/SB 1158 - Department of Financial Services

Section 10 of this bill includes a glitch fix from legislation in 2022.

Department of Financial Services: Revises eligibility for plans of deferred compensation established by CFO; authorizes judge of compensation claims to order injured employee's evaluation by expert medical advisor; revises conditions for nonprofit religious organization to be exempt from requirements of insurance code; adds limited license for transacting preneed funeral agreement insurance; revises licensure requirements for reinsurance intermediary brokers & reinsurance intermediary managers; authorizes certain persons to obtain limited license to sell only policies of life insurance covering expense of prearrangement for funeral services or merchandise; revises requirements, conditions, & procedures for bail bond agency license.

HB 487 passed the House Commerce Committee by unanimous vote and has been placed on the Special Order Calendar for Week 8.  

SB 1158 passed the Senate Fiscal Policy Committee by unanimous vote and having passed all committees of reference will be placed on the Senate 2^nd Reading Calendar.

HB 49/SB 430 - Abandoned Cemeteries

Abandoned and Historic Cemeteries: Creates Historic Cemeteries Program within Division of Historical Resources of DOS; creates Historic Cemeteries Program Advisory Council; authorizes certain entities to acquire conservation easements to preserve cemeteries.

HB 49 - Passed the House Floor by unanimous vote and delivered to the Senate to be paired with SB 430.

SB 430 - Awaiting consideration by Appropriations Committee during week 8.

Your Association Hard at Work!

Washington, D.C., April 21, 2023 – The American Land Title Association (ALTA), the national trade association of the land title insurance industry, alongside AARP, the Florida Land Title Association and AARP Florida applaud the Florida legislature for passing Senate Bill 770, which will protect homeowners from the predatory practice of filing of unfair real estate fee agreements in property records, known as Non-Title Record Agreements for Personal Service (NTRAPS).   

Florida follows a model bill, which ALTA helped draft with input from national stakeholders. The model bill created a blueprint for states wishing to provide a remedy for existing NTRAPS while also discouraging future unfair and deceptive practices.  

“The property rights of American homebuyers must be protected,” said ALTA Vice President of Government Affairs Elizabeth Blosser. “A home often is a consumer’s largest investment, and the best way to support the certainty of landownership is through public policy. We have to ensure there are no unreasonable restraints on a homebuyer’s future ability to sell or refinance their property due to unwarranted transactional costs.” 

“This follows our advocacy efforts we have undertaken in collaboration with ALTA in other states, and we are expecting and hoping to work on similar legislative solutions in other states in helping homeowners against such predatory housing practices,” said AARP Government Affairs Director Samar Jha. 

NTRAPS have been recorded in property records since 2018. The practice preys upon homeowners, offering small cash gifts in exchange for decades-long contracts for the exclusive rights to sell the property.

Submitting NTRAPS for inclusion in property records characterized as liens, covenants, encumbrances, or security interests in exchange for money creates impediments and increases the cost and complexity of transferring or financing real estate in the future. 

“The Florida Land Title Association supports SB 770 because it helps protect the Florida real estate market from business practices which unnecessarily and possibly deceptively encumber people’s homes,” said FLTA President Mickey Godat. “The bill provides a clear framework for legitimate business practices to continue but not in a manner that adversely affects a home’s marketability.” 

“We applaud the governor, attorney general and the Florida legislature for taking this essential step in helping Florida curb this predatory housing practice,” said Zayne Smith, Director of Advocacy for AARP Florida. “Our homes are often the most important investment we will make, and this legislation is an important safeguard to better ensure our investment is protected.” 

The new law will:

• Make NTRAPS unenforceable by law. 
• Restrict and prohibit the recording of NTRAPS in property records. 
• Create penalties if NTRAPS are recorded in property records. 

 SB 770 will head to the desk of Florida Gov. Ron DeSantis and once signed will go into effect on July 1, 2023.  

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BEC:  Business email compromise (BEC) is a form of phishing where a criminal attempts to get a worker, customer or vendor to send money or disclose private information by sending a phony email that appears to be coming from a trusted company figure.

Botnet:  (Robot Network):   A group of 2 or more computers controlled and updated remotely, often by a single user to send out spam messages, often including malware.  Most often they are associated with a “denial of service”. This is a newer crime just added to IC3 Reporting in 2022.

Clickjacking:  When a website has been compromised by concealing hyperlinks beneath legitimate clickable content that contains content or malware the user is unaware of.   A user believes they are clicking on one thing but in actuality, they are clicking on another hidden element.

Deepfake: A false simulation of a specific individual’s likeness, which can be either an image, video, or audio presentation, generated with the use of technology and capable of being used for a variety of purposes, including ones derived from malicious intentions.

Malware: A broad term used to describe any type of malicious, invasive software.

Pharming:A type of cyberattack involving the redirection of web traffic from a legitimate site to a fake site for the purpose of stealing usernames, passwords, financial data, and other personal information.

Phishing:  The practice of sending emails or other messages purporting to be from reputable companies or people in order to induce individuals to reveal personal information, such as login credentials and other sensitive information.

Quishing:  Also known as QR code phishing, this type of phishing attack uses QR codes to lure victims into revealing sensitive information. Threat actors create a QR code that looks legitimate, such as one that appears to offer a discount or special offer, but in fact, it directs the victim to a fake website controlled by the attacker.

Ransomware: Malicious programs which block access to a computer or the computer’s data with the intent of extorting money in exchange for a release of the computer or its data.

Sandboxing:  Using a safe environment to run, observe or analyze code.  Often used in an isolated environment the mimics the end-user experience.  It is used to test suspicious programs that may contain viruses or other malware without allowing the software to harm a network.

Scareware: Malware that is typically used to scare users into taking an action with their electronics which tricks the user into opening a vulnerability; for example, scareware can take the form of a pop-up that falsely warns a user that (s)he has been infected with a virus so that when the user clicks the “X” to close the box, (s)he actually first incurs the infection of the virus that (s)he had been afraid of contracting.

SIM Swap:  Using SIM technology to transfer a victim’s phone service to a mobile device in a criminal’s possession.  This is a newer crime just added to the IC3 Reporting in 2022.

Smishing:  This type of phishing uses mobile phones as the attack platform. With smishing, the attacker uses a compelling text message to trick targeted recipients into clicking a link and sending the attacker private information or downloading malicious programs to a smartphone.

Sniffing:  The process of monitoring and capturing all data passing through a network.  It is in essence the unauthorized listening in on network traffic to capture all the data flowing to and from a computer or network.

Social Engineering: A broad term used to describe different types of efforts using human psychology to exploit a person’s vulnerability, rather than employing technology alone, in order to hack into another’s computer, software or data.

Spear Phishing:  This is a more advanced form of phishing. This type of phishing is a specific and targeted attack on a specific person or group and often will include information known to be of interest to the target, such as current events or financial documents.

Spoofing:An act of disguising a communication from an unknown source as being from a known, trusted source by email, phone calls, websites or computer spoofing an IP address.

Stealthing: Approaches used by malicious code to conceal its presence on an infected system.

Vishing:  Also known as voice phishing, this type of phishing attack is conducted entirely over the phone. The attacker will call a victim and manipulate them into divulging sensitive information such as login credentials, pin numbers or credit card numbers, typically with the goal of accessing financial accounts.

Whaling: A highly targeted phishing attack - aimed at senior executives - masquerading as a legitimate email. Whaling is digitally enabled fraud through social engineering, designed to encourage victims to perform a secondary action, such as initiating a wire transfer of funds.

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It’s That Time of Year

While my favorite season of the year is Fall, I do enjoy Springtime in Tallahassee.  The weather is beautiful, flowers are starting to bloom, and the warmer weather and longer days allow our family more time to get outside.  While spring in Tallahassee is beautiful, it also brings along an unwanted friend, pollen.  You can often see the first hints of it if you drive a dark colored car.  No, that isn’t yellow dirt covering your vehicle you just washed.  This is followed by your allergy prone friends beginning their annual trek to the local drugstore for the best OTC to halt the attack on their sinus’.

While pollen is one way to indicate Spring’s arrival, I prefer to gauge it by the blooming of the southern azaleas.  Typically, I think of the timing being between late march and early April in time for the Masters being played at Augusta National Golf Club.  Unfortunately, spring is in full swing right now.  The azaleas are in full bloom, the new spring growth is everywhere along with the dreaded pollen season.  Yes, it’s that time of year.

It’s also time for the start of the 2023 Legislative Session.  This year Regular Session is scheduled to begin on March 7 and conclude on May 5, 2023.  Members bills are being filed daily with the pace increasing as bill filing deadline draws near.  It is always difficult to pass a bill and given that two interim committee weeks were also used as special sessions for Governor DeSantis’ priorities, the Legislature has not acted on many bills with many others apparently stuck in bill drafting.  I would expect that many special interest priorities will be left to accomplish at a later date.

Unfortunately, there are a lot of issues impacting the title industry that need attention.  The list includes a much-needed glitch fix in the DFS package impacting title agencies, prohibiting qualified mortgage payoff letters, addressing long term right to sell contracts and the exploding identity theft in real estate closings.  This is just the short list for the title industry and doesn’t even include issues that may be filed by a legislator requiring the title insurance lobby teams to engage on.  There is a lot of work to be done in 2023.

This is also the time of year to make your travel arrangements to attend the Florida Land Title Association’s Legislative Lobby Days in Tallahassee scheduled for April 3-5th, 2023.  This important event provides you the opportunity to advocate for the industry, connect with legislators and network with peers from across the state and to become educated on the latest from the front lines. 

As you know, the business of passing laws is much more than simply being on the right side of an argument.  Passing laws is selling and the business of selling is always rooted in relationships.  If you have never attended the FLTA event, there is no better time to dip your toe in then when there are a lot of title industry issues we need to explain to legislators.  Who better to explain than those who work in the industry and see them firsthand.  If you are a veteran, your skill and experience are needed as we work to educate both new legislators and sharpen the skills of the next group of title insurance industry leaders.     If you need additional information on Legislative Lobby Days visit www.flta.org or call Scott Merritt. 

So, it’s that time of year, but what are you waiting for?  There are plenty of issues needing attention in Tallahassee.  There is a whole crop of new legislators that need to know who to call from their community when a title industry issue arises in Tallahassee.  Don’t miss a golden opportunity.  After all, the freshman legislator you meet this year may be the Speaker of the House or Senate President in 2028.

Message from Agents' Section Lobbyist, David Daniel, with Smith, Bryan & Myers