Florida 2022 Regular Session

Florida House Bill H0335 Compare Versions

Only one version of the bill is available at this time.

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3	3	HB 335 2022
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10	10	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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14	14	A bill to be entitled 1
15	15	An act relating to satisfaction of mortgages; amending 2
16	16	s. 701.04, F.S.; requiring a mortgagee or servicer of 3
17	17	a mortgage to send or cause to be sent an estoppel 4
18	18	letter with specified information to certain persons 5
19	19	within a specified time; requiring a copy o f the 6
20	20	instrument showing title in the property or other 7
21	21	lawful authorization under certain circumstances; 8
22	22	providing requirements for an estoppel letter; 9
23	23	prohibiting certain actions by the mortgagee or 10
24	24	servicer of the mortgage; authorizing a corrected 11
25	25	estoppel letter under certain circumstances; providing 12
26	26	that a corrected estoppel letter supersedes any 13
27	27	previous estoppel letter under certain circumstances; 14
28	28	prohibiting the mortgagee or servicer of the mortgage 15
29	29	from denying the accuracy of an estoppel letter; 16
30	30	requiring payments received pursuant to an estoppel 17
31	31	letter to be applied to any unpaid balance of a 18
32	32	mortgage; providing methods for sending a written 19
33	33	request for an estoppel letter and for sending the 20
34	34	estoppel letter; providing that the mortgagee or 21
35	35	servicer of the mortgage is not responsible for the 22
36	36	costs of a common carrier delivery service; providing 23
37	37	for liability under certain circumstances; authorizing 24
38	38	certain damages and attorney fees and costs; 25
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40	40	HB 335 2022
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47	47	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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49	49
50	50
51	51	prohibiting punitive damages; requiring the mortgagee 26
52	52	or servicer of the mortgage to take certain actions 27
53	53	within a specified time after the unpaid balance of a 28
54	54	mortgage has been fully paid; providing that certain 29
55	55	persons may still be personally liable after recording 30
56	56	a satisfaction of a mortgage; amending s. 701 .041, 31
57	57	F.S.; revising a definition; conforming provisions to 32
58	58	changes made by the act; providing an effective date. 33
59	59	34
60	60	Be It Enacted by the Legislature of the State of Florida: 35
61	61	36
62	62	Section 1. Section 701.04, Florida Statutes, is amended to 37
63	63	read: 38
64	64	701.04 Cancellation of mortgages, liens, and judgments. — 39
65	65	(1)(a) Within 10 14 days after receipt of the written 40
66	66	request of a mortgagor, a record title owner of the property, a 41
67	67	fiduciary or trustee lawfully acting on behalf of a record title 42
68	68	owner, or any other p erson lawfully authorized to act on behalf 43
69	69	of a mortgagor or record title owner of the property, the 44
70	70	mortgagee holder of a mortgage shall deliver or cause the 45
71	71	servicer of the mortgage shall send or cause to be sent to 46
72	72	deliver to the person making the reque st at a place designated 47
73	73	in the written request an estoppel letter setting forth the 48
74	74	unpaid balance of the loan properly due under or secured by the 49
75	75	mortgage as of the payoff date specified in the written request . 50
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84	84	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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88	88	If the written request is made by a person other than the 51
89	89	mortgagor, the request must include a copy of the instrument 52
90	90	showing title in the property or other lawful authorization. 53
91	91	(a) If the mortgagor, or any person lawfully authorized to 54
92	92	act on behalf of the mortgagor, makes the request, the es toppel 55
93	93	letter must include an itemization of the principal, interest, 56
94	94	and any other charges properly due under or secured by the 57
95	95	mortgage and interest on a per -day basis for the unpaid balance. 58
96	96	(b) If a record title owner of the property, or any person 59
97	97	lawfully authorized to act on behalf of a mortgagor or record 60
98	98	title owner of the property, makes the request: 61
99	99	1. The request must include a copy of the instrument 62
100	100	showing title in the property or lawful authorization. 63
101	101	2. The estoppel letter may include the itemization of 64
102	102	information required under paragraph (a), but must at a minimum 65
103	103	include: 66
104	104	1. The total unpaid balance of the loan properly due under 67
105	105	or secured by the mortgage as of the payoff date specified in 68
106	106	the written request, including an itemiza tion of the principal, 69
107	107	interest, and any other charges comprising the unpaid balance on 70
108	108	a per-day basis. 71
109	109	2. Interest on a per -day basis for the unpaid balance. 72
110	110	(c)1. The mortgagee or servicer of the mortgage may not 73
111	111	qualify, reserve the right to change , or condition or disclaim 74
112	112	the reliance of others on the information provided in the 75
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121	121	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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125	125	estoppel letter under paragraph (b), and any attempt to do so is 76
126	126	void and unenforceable. However, if the mortgagee or servicer of 77
127	127	the mortgage determines that any of the i nformation provided in 78
128	128	the estoppel letter under paragraph (b) was understated, the 79
129	129	mortgagee or servicer of the mortgage may send a corrected 80
130	130	estoppel letter. 81
131	131	2. If the mortgagor or record title owner of the property, 82
132	132	or any other person lawfully author ized to act on behalf of the 83
133	133	mortgagor or record title owner of the property, receives and 84
134	134	has a reasonable opportunity to act upon a corrected estoppel 85
135	135	letter before making a payment, the corrected estoppel letter 86
136	136	supersedes any previous estoppel letter. 87
137	137	3. If any of the information provided in the estoppel 88
138	138	letter under paragraph (b) was understated, the mortgagee or 89
139	139	servicer of the mortgage may not deny the accuracy of such 90
140	140	information if a person reasonably and detrimentally relied on 91
141	141	that information. 92
142	142	(d)3. The mortgagee or servicer of the mortgage mortgagee 93
143	143	acting in accordance with a request in substantial compliance 94
144	144	with this subsection paragraph is expressly discharged from any 95
145	145	obligation or liability to any person on account of the release 96
146	146	of the requested information, other than the obligation to 97
147	147	comply with the terms of the estoppel letter. 98
148	148	(e) The mortgagee or servicer of the mortgage may n ot 99
149	149	refuse to accept or return any payment received in response to 100
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155	155	CODING: Words stricken are deletions; words underlined are additions.
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158	158	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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160	160
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162	162	an estoppel letter but must promptly apply such payment to the 101
163	163	unpaid balance of the loan properly due under or secured by the 102
164	164	mortgage. 103
165	165	(f)1. A written request for an estoppel letter unde r 104
166	166	paragraph (a) must be sent to the mortgagee or servicer of the 105
167	167	mortgage at the address made available by the mortgagee or 106
168	168	servicer of the mortgage for such purpose by first -class mail, a 107
169	169	common carrier delivery service, or e -mail or other electronic 108
170	170	format or facsimile. The written request is considered received 109
171	171	by the mortgagee or servicer of the mortgage: 110
172	172	a. Four days after the request, properly addressed with 111
173	173	postage prepaid for first -class delivery, is deposited with the 112
174	174	United States Postal Service ; 113
175	175	b. The day the request is delivered by a common carrier 114
176	176	delivery service; or 115
177	177	c. The day the request is sent by e -mail or other 116
178	178	electronic format or facsimile. 117
179	179	2. The mortgagee or servicer of the mortgage must send the 118
180	180	estoppel letter by first -class mail, a common carrier delivery 119
181	181	service, or e-mail or other electronic format or facsimile as 120
182	182	directed in the written request. However, the mortgagee or 121
183	183	servicer of the mortgage is not required to pay for a common 122
184	184	carrier delivery service. If the 10 -day period after a written 123
185	185	request is received by the mortgagee or servicer of the mortgage 124
186	186	ends on a Saturday, Sunday, or legal holiday, the estoppel 125
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195	195	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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199	199	letter is considered timely if it is sent by the close of 126
200	200	business on the next business day. 127
201	201	(g) If a mortgagee or servicer of the mortgage does not 128
202	202	timely send the estoppel letter in compliance with this 129
203	203	subsection, the mortgagee or servicer of the mortgage is liable 130
204	204	to the mortgagor or record title owner of the property, or any 131
205	205	other person lawfully authorized to act on behalf of the 132
206	206	mortgagor or record title owner of the property, for actual 133
207	207	damages caused by such failure plus $500 in statutory damages. 134
208	208	Punitive damages may not be awarded in a civil action brought 135
209	209	under this paragraph. The prevailing party in a civil action 136
210	210	brought under this paragraph is entitled to reasonable attorney 137
211	211	fees and costs. 138
212	212	(h)(c) Notwithstanding s. 655.059, a mortgagee or servicer 139
213	213	of the mortgage holder may provide the financial information 140
214	214	required under this subsection to a person authorized under this 141
215	215	subsection to request the financial information notwithstanding 142
216	216	s. 655.059. 143
217	217	(2) Within 60 days after the unpaid balance on a mortgage 144
218	218	has been fully paid or has been paid pursuant to an estoppel 145
219	219	letter, whichever is earlier, the mortgagee or servicer of the 146
220	220	mortgage shall execute in writing an instrument acknowledging 147
221	221	satisfaction of the mortgage; have the instrument acknowledged, 148
222	222	or proven, and duly en tered in the official records of the 149
223	223	proper county; and send or cause to be sent the recorded 150
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232	232	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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236	236	satisfaction to the mortgagor or record title owner of the 151
237	237	property. The recorded satisfaction of the mortgage does not 152
238	238	relieve the mortgagor or record title owne r of the property, or 153
239	239	their successors or assigns, from any personal liability on the 154
240	240	loan or other obligations secured by the mortgage. The 155
241	241	prevailing party in a civil action brought under this subsection 156
242	242	is entitled to reasonable attorney fees and costs. 157
243	243	(3)(2) Within 60 days after the unpaid balance Whenever 158
244	244	the amount of money due on a any mortgage, lien, or judgment has 159
245	245	been fully paid to the person or party entitled to the payment 160
246	246	thereof, the mortgagee, creditor, or assignee, or the attorney 161
247	247	of record in the case of a judgment, to whom the payment was 162
248	248	made, shall execute in writing an instrument acknowledging 163
249	249	satisfaction of the mortgage, lien, or judgment; and have the 164
250	250	instrument acknowledged, or proven, and duly entered in the 165
251	251	official records of the proper county; and. Within 60 days after 166
252	252	the date of receipt of the full payment of the mortgage, lien, 167
253	253	or judgment, the person required to acknowledge satisfaction of 168
254	254	the mortgage, lien, or judgment shall send or cause to be sent 169
255	255	the recorded satisfac tion to the person or party who has made 170
256	256	the full payment. In the case of a civil action arising out of 171
257	257	this section, The prevailing party in a civil action brought 172
258	258	under this subsection is entitled to reasonable attorney fees 173
259	259	and costs. 174
260	260	(4)(3) When Whenever a writ of execution has been issued, 175
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269	269	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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273	273	docketed, and indexed with a sheriff and the judgment upon which 176
274	274	it was issued has been fully paid, it is the responsibility of 177
275	275	the party receiving payment to request, in writing, addressed to 178
276	276	the sheriff, return o f the writ of execution as fully satisfied. 179
277	277	Section 2. Paragraph (a) of subsection (1) and subsection 180
278	278	(2) of section 701.041, Florida Statutes, are amended to read: 181
279	279	701.041 Title insurer; mortgage release certificate. — 182
280	280	(1) DEFINITIONS.—For purposes of this section: 183
281	281	(a) "Estoppel letter" means a statement of the amount of: 184
282	282	1. The unpaid balance of a loan properly due under or 185
283	283	secured by a mortgage as of the payoff date specified in the 186
284	284	written request, including an itemization of the principal, 187
285	285	interest, and any other charges comprising the unpaid balance 188
286	286	properly due under or secured by the mortgage . 189
287	287	2. Interest on a per -day basis for the unpaid balance. 190
288	288	(2) CERTIFICATE OF RELEASE. —An officer or duly appointed 191
289	289	agent of a title insurer may, on behalf of a mortgagor or a 192
290	290	person who acquired from the mortgagor title to all or a part of 193
291	291	the property described in a mortgage, execute a certificate of 194
292	292	release that complies with the requirements of this section and 195
293	293	record the certificate of release in the real property records 196
294	294	of each county in which the mortgage is recorded if a 197
295	295	satisfaction or release of the mortgage has not been executed 198
296	296	and recorded after the date payment in full of the loan properly 199
297	297	due under or secured by the mortgage was made in accordance with 200
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306	306	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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310	310	an estoppel letter a payoff statement furnished by the mortgagee 201
311	311	or the mortgage servicer of the mortgage. 202
312	312	Section 3. This act shall take effect October 1, 2022. 203