CS/CS/HB 353 2022
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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
A bill to be entitled 1
An act relating to mortgage payoff letters; amending 2
s. 701.04, F.S.; revising the timeframe within which a 3
mortgagee or mortgage servicer must send or cause to 4
be sent an estoppel letter containing specified 5
information; revising the circumstances under w hich a 6
copy of the instrument showing title in the property 7
or other lawful authorization must be included in a 8
request for an estoppel letter; requiring notice to 9
the mortgagor of a request for an estoppel letter 10
under certain circumstances; revising requ irements for 11
an estoppel letter; prohibiting certain actions by the 12
mortgagee or mortgage servicer; authorizing the 13
mortgagee or mortgage servicer to send a corrected 14
estoppel letter under certain circumstances; providing 15
that a corrected estoppel letter s upersedes any 16
previous estoppel letter under certain circumstances; 17
providing methods for sending a corrected estoppel 18
letter; prohibiting the mortgagee or mortgage servicer 19
from denying the accuracy of certain information 20
provided in an estoppel letter un der certain 21
circumstances; prohibiting payments received pursuant 22
to an estoppel letter from being returned and 23
requiring such payments to be promptly applied to any 24
unpaid balance of the loan properly due under or 25
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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
secured by a mortgage; providing methods for sending a 26
written request for an estoppel letter and for sending 27
an estoppel letter; providing that the mortgagee or 28
mortgage servicer is not required to pay for a common 29
carrier delivery service; requiring the mortgagee or 30
mortgage servicer to take ce rtain actions within a 31
specified time after the unpaid balance of a loan 32
properly secured by a mortgage has been fully paid or 33
paid pursuant to an estoppel letter; authorizing 34
reasonable attorney fees and costs; amending s. 35
701.041, F.S.; revising the defi nition of the term 36
"estoppel letter"; conforming provisions to changes 37
made by the act; providing legislative findings; 38
providing for retroactive applicability; providing an 39
effective date. 40
41
Be It Enacted by the Legislature of the State of Florida: 42
43
Section 1. Section 701.04, Florida Statutes, is amended to 44
read: 45
701.04 Cancellation of mortgages, liens, and judgments. — 46
(1)(a) Within 10 14 days after receipt of the written 47
request of a mortgagor, a record title owner of the property, a 48
fiduciary or trustee lawfully acting on behalf of a record title 49
owner, or any other person lawfully authorized to act on behalf 50
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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
of a mortgagor or record title owner of the property, the 51
mortgagee holder of a mortgage shall deliver or mortgage cause 52
the servicer shall send or cause to be sent of the mortgage to 53
deliver to the person making the request at a place designated 54
in the written request an estoppel letter setting forth the 55
unpaid balance of the loan secured by the mortgage. If the 56
written request is made by a person other than the mortgagor, 57
the request must include a copy of the instrument showing such 58
person's title in the property or other lawful authorization, 59
and the mortgagee or mortgage servicer must notify the mortgagor 60
of the request. 61
(a) If the mortgagor, or any person lawfully authorized to 62
act on behalf of the mortgagor, makes the request, the estoppel 63
letter must include an itemization of the principal, interest, 64
and any other charges properly due under or secured by the 65
mortgage and interest on a per-day basis for the unpaid balance. 66
(b) If a record title owner of the property, or any person 67
lawfully authorized to act on behalf of a mortgagor or record 68
title owner of the property, makes the request: 69
1. The request must include a copy of the instrument 70
showing title in the property or lawful authorization. 71
2. The estoppel letter may include the itemization of 72
information required under paragraph (a), but must at a minimum 73
include: 74
1. The total unpaid balance of the loan properly due under 75
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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
or secured by the mortgage as of the date specified in the 76
estoppel letter, including an itemization of the principal, 77
interest, and any other charges comprising the unpaid balance. 78
2. Interest accruing on a per-day basis for the unpaid 79
balance, if applicable. 80
(c)1. Except for mortgages for which a notice of lis 81
pendens in a foreclosure action or a suggestion of bankruptcy 82
has been properly filed and recorded, the mortgagee or mortgage 83
servicer may not qualify, reserve the right to change, or 84
condition or disclaim the reliance of others on the information 85
provided in an estoppel letter under paragraph (b), and any 86
attempt to do so is void and unenforceable. However, if the 87
mortgagee or mortgage servicer determines that any of the 88
information provided in the estoppel letter under paragraph (b) 89
was inaccurate, the mortgagee or mortgage servicer may send a 90
corrected estoppel letter to the person who requested the 91
estoppel letter. 92
2. If the person who requested the original estoppel 93
letter under paragraph ( a) receives a corrected estoppel letter 94
by 3 p.m. in such person's time zone at least 1 business day 95
before a payment is issued in reliance on the previous estoppel 96
letter, the corrected estoppel letter supersedes all prior 97
estoppel letters. The corrected estoppel letter is considered 98
received by the person who requested the original estoppel 99
letter: 100
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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
a. Five business days after the corrected estoppel letter, 101
which is to be sent by first -class mail, is deposited with the 102
United States Postal Service; 103
b. The day the corrected estoppel letter is delivered by a 104
common carrier delivery service; or 105
c. The day the corrected estoppel letter is sent by e -106
mail, facsimile, or other electronic means or through an 107
automated system provided by the mortgagee or mortg age servicer 108
for requesting an estoppel letter. 109
3. If any of the information provided in the estoppel 110
letter under paragraph (b) was inaccurate, but the person who 111
requested the estoppel letter did not timely receive a corrected 112
estoppel letter as provid ed in subparagraph 2., the mortgagee or 113
mortgage servicer may not deny the accuracy of such information 114
as against any person who relied on it. 115
(d)3. The mortgagee or mortgage servicer of the mortgagee 116
acting in accordance with a request in substantial c ompliance 117
with this subsection paragraph is expressly discharged from any 118
obligation or liability to any person on account of the release 119
of the requested information, other than the obligation to 120
comply with the terms of the estoppel letter. 121
(e) If a payment is received at the location and in the 122
manner specified by the mortgagee or mortgage servicer, the 123
mortgagee or mortgage servicer must accept, and may not return, 124
any payment received in reliance on an estoppel letter and must 125
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promptly apply such pay ment to the unpaid balance of the loan 126
properly due under or secured by the mortgage. 127
(f)1. A written request for an estoppel letter under 128
paragraph (a) must be sent to the mortgagee or mortgage servicer 129
by first-class mail, postage prepaid; by common ca rrier delivery 130
service; or by e-mail, facsimile, or other electronic means at 131
the address made available by the mortgagee or mortgage servicer 132
for such purpose or through an automated system provided by the 133
mortgagee or mortgage servicer for requesting an estoppel 134
letter. The written request is considered received by the 135
mortgagee or mortgage servicer: 136
a. Five business days after the request sent by first -137
class mail is deposited with the United States Postal Service; 138
b. The day the request is delivered by a common carrier 139
delivery service; or 140
c. The day the request is sent by e -mail, facsimile, or 141
other electronic means or through an automated system provided 142
by the mortgagee or mortgage servicer for requesting an estoppel 143
letter. 144
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If any of the days in sub-subparagraph a., sub -subparagraph b., 146
or sub-subparagraph c. falls on a Saturday, Sunday, or legal 147
holiday under the laws of the state or the United States, the 148
request for an estoppel letter is considered timely received by 149
the mortgagee or mortgag e servicer on the next business day. 150
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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
2. The mortgagee or mortgage servicer must send an 151
estoppel letter by first -class mail; by common carrier delivery 152
service; or by e-mail, facsimile, or other electronic means, as 153
directed in the written request, or th rough an automated system 154
provided by the mortgagee or mortgage servicer for this purpose. 155
However, the mortgagee or mortgage servicer is not required to 156
pay for a common carrier delivery service. If the 10 -day period 157
after a written request is received by the mortgagee or mortgage 158
servicer ends on a Saturday, Sunday, or legal holiday under the 159
laws of the state or the United States, the estoppel letter is 160
considered timely if it is sent by the close of business on the 161
next business day. 162
(g)(c) Notwithstanding s. 655.059, a mortgagee or mortgage 163
servicer mortgage holder may provide the financial information 164
required under this subsection to a person authorized under this 165
subsection to request the financial information notwithstanding 166
s. 655.059. 167
(2) Within 60 days after the unpaid balance of a loan 168
secured by a mortgage has been fully paid or paid pursuant to an 169
estoppel letter under subsection (1), whichever is earlier, the 170
mortgagee or mortgage servicer shall execute in writing an 171
instrument acknowledgi ng satisfaction of the mortgage; have the 172
instrument acknowledged, or proven, and send it or cause it to 173
be sent for recording in the official records of the proper 174
county; and send or cause to be sent the recorded satisfaction 175
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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
to the mortgagor or record t itle owner of the property. The 176
prevailing party in a civil action brought against the mortgagee 177
or mortgage servicer to enforce the requirements of this 178
subsection is entitled to reasonable attorney fees and costs. 179
(3)(2) Within 60 days after the unpaid balance Whenever 180
the amount of money due on a any mortgage, lien, or judgment has 181
been fully paid to the person or party entitled to the payment 182
thereof, the mortgagee, creditor, or assignee, or the attorney 183
of record in the case of a judgment, to whom th e payment was 184
made, shall execute in writing an instrument acknowledging 185
satisfaction of the mortgage, lien, or judgment; and have the 186
instrument acknowledged, or proven, and send it or cause it to 187
be sent for recording duly entered in the official records of 188
the proper county; and. Within 60 days after the date of receipt 189
of the full payment of the mortgage, lien, or judgment, the 190
person required to acknowledge satisfaction of the mortgage, 191
lien, or judgment shall send or cause to be sent the recorded 192
satisfaction to the person who has made the full payment. In the 193
case of a civil action arising out of this section, The 194
prevailing party in a civil action brought against the creditor 195
or assignee, or the attorney of record in the case of a 196
judgment, to enforce the requirements of this subsection is 197
entitled to reasonable attorney fees and costs. 198
(4)(3) When Whenever a writ of execution has been issued, 199
docketed, and indexed with a sheriff and the judgment upon which 200
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it was issued has been fully paid, it is t he responsibility of 201
the person party receiving payment to request, in writing, 202
addressed to the sheriff, return of the writ of execution as 203
fully satisfied. 204
Section 2. Paragraph (a) of subsection (1) and subsection 205
(2) of section 701.041, Florida Stat utes, are amended to read: 206
701.041 Title insurer; mortgage release certificate. — 207
(1) DEFINITIONS.—For purposes of this section: 208
(a) "Estoppel letter" means a statement containing, at a 209
minimum, the information required in s. 701.04(1)(b) of the 210
amount of: 211
1. The unpaid balance of a loan secured by a mortgage, 212
including principal, interest, and any other charges properly 213
due under or secured by the mortgage. 214
2. Interest on a per -day basis for the unpaid balance . 215
(2) CERTIFICATE OF RELEASE. —An officer or duly appointed 216
agent of a title insurer may, on behalf of a mortgagor or a 217
person who acquired from the mortgagor title to all or a part of 218
the property described in a mortgage, execute a certificate of 219
release that complies with the requirements o f this section and 220
record the certificate of release in the real property records 221
of each county in which the mortgage is recorded if a 222
satisfaction or release of the mortgage has not been executed 223
and recorded after the date payment in full of the loan properly 224
due under or secured by the mortgage was made in accordance with 225
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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
an estoppel letter a payoff statement furnished by the mortgagee 226
or the mortgage servicer. 227
Section 3. The Legislature finds that the timeliness and 228
accuracy of an estoppel letter is critical because the parties 229
to a real estate transaction must rely on the estoppel letter to 230
establish the loan payoff amount necessary to release the 231
mortgage, which in turn will allow the owner to confer clean 232
title to a buyer or to refinance the pro perty. The Legislature 233
further finds that estoppel letters increasingly contain 234
conditional language disclaiming the ability of an owner to rely 235
on the stated loan payoff amounts, extending even to the return 236
of such payments submitted by owners, creating unnecessary 237
delays in the efficient operation of the state's real estate 238
market, which is a vital economic contributor to the state, and 239
imposing needless costs and burdens on property owners and 240
buyers. Additionally, the Legislature finds that real estate 241
lending, mortgages, real estate transactions, and estoppel 242
letters are extensively regulated under both state and federal 243
law. The Legislature finds and determines that this act makes 244
changes to state law that appropriately balance the parties' 245
interests, are reasonable and necessary to serve and achieve an 246
important state interest, are necessary for the prosperity and 247
welfare of the state and its property owners and inhabitants, 248
and must be applied to existing mortgages in order to provide 249
effective relief. 250
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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
Section 4. This act applies to all mortgages, and all 251
loans secured by such mortgages, existing as of, or entered into 252
on or after, October 1, 2022. 253
Section 5. This act shall take effect October 1, 2022. 254