Florida 2023 Regular Session

Florida House Bill H0743 Compare Versions

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

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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 estoppel letters; amending s. 2
16	16	701.04, F.S.; revising the timeframe within which a 3
17	17	mortgagee or mortgage servicer must send or cause to 4
18	18	be sent an estoppel letter containing specified 5
19	19	information; revising the circumstances under which a 6
20	20	copy of the instrument showing title in the property 7
21	21	or other lawful authorization must be included in a 8
22	22	request for an estoppel letter; requiring notice to 9
23	23	the mortgagor of a request for an estoppel letter 10
24	24	under certain circumstances; revising requirement s for 11
25	25	an estoppel letter; prohibiting certain actions by the 12
26	26	mortgagee or mortgage servicer; authorizing the 13
27	27	mortgagee or mortgage servicer to send a corrected 14
28	28	estoppel letter under certain circumstances; requiring 15
29	29	a mortgagee or mortgage servicer to provi de a copy of 16
30	30	a corrected estoppel letter to a mortgagor under 17
31	31	certain circumstances; providing that a corrected 18
32	32	estoppel letter supersedes any previous estoppel 19
33	33	letter under certain circumstances; prohibiting the 20
34	34	mortgagee or mortgage servicer from denying the 21
35	35	accuracy of certain information provided in an 22
36	36	estoppel letter under certain circumstances; providing 23
37	37	construction; prohibiting payments received pursuant 24
38	38	to an estoppel letter from being returned and 25
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40	40	HB 743 2023
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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
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51	51	requiring such payments to be promptly applied to any 26
52	52	unpaid balance of the loan properly due under or 27
53	53	secured by a mortgage; providing methods for sending a 28
54	54	written request for an estoppel letter and for sending 29
55	55	an estoppel letter; providing that the mortgagee or 30
56	56	mortgage servicer is not required to pay for a common 31
57	57	carrier delivery service; requiring the mortgagee or 32
58	58	mortgage servicer to take certain actions within a 33
59	59	specified time after the unpaid balance of a loan 34
60	60	properly secured by a mortgage has been fully paid or 35
61	61	paid pursuant to an estoppel letter ; authorizing 36
62	62	reasonable attorney fees and costs for specified 37
63	63	parties in certain civil actions; providing that 38
64	64	certain persons may still be personally liable for a 39
65	65	loan or other obligation after the recording of a 40
66	66	release of a mortgage; conforming provisi ons to 41
67	67	changes made by the act; amending s. 701.041, F.S.; 42
68	68	revising the definition of the term "estoppel letter"; 43
69	69	conforming provisions to changes made by the act; 44
70	70	providing legislative findings; providing for 45
71	71	retroactive applicability; providing an effect ive 46
72	72	date. 47
73	73	48
74	74	Be It Enacted by the Legislature of the State of Florida: 49
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77	77	HB 743 2023
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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	Section 1. Section 701.04, Florida Statutes, is amended to 51
89	89	read: 52
90	90	701.04 Cancellation of mortgages, liens, and judgments. — 53
91	91	(1)(a) Within 10 14 days after receipt of the writte n 54
92	92	request of a mortgagor, a record title owner of the property, a 55
93	93	fiduciary or trustee lawfully acting on behalf of a record title 56
94	94	owner, or any other person lawfully authorized to act on behalf 57
95	95	of a mortgagor or record title owner of the property, the 58
96	96	mortgagee holder of a mortgage shall deliver or mortgage cause 59
97	97	the servicer shall send or cause to be sent of the mortgage to 60
98	98	deliver to the person making the request at a place designated 61
99	99	in the written request an estoppel letter setting forth the 62
100	100	unpaid balance of the loan secured by the mortgage. If the 63
101	101	written request is made by a person other than the mortgagor, 64
102	102	the request must include a copy of the instrument showing such 65
103	103	person's title in the property or other lawful authorization, 66
104	104	and the mortgagee or mortgage servicer must notify the mortgagor 67
105	105	of the request. 68
106	106	(a) If the mortgagor, or any person lawfully authorized to 69
107	107	act on behalf of the mortgagor, makes the request, the estoppel 70
108	108	letter must include an itemization of the principal, interest, 71
109	109	and any other charges properly due under or secured by the 72
110	110	mortgage and interest on a per -day basis for the unpaid balance. 73
111	111	(b) If a record title owner of the property, or any person 74
112	112	lawfully authorized to act on behalf of a mortgagor or record 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	title owner of the property, makes the request: 76
126	126	1. The request must include a copy of the instrument 77
127	127	showing title in the property or lawful authorization. 78
128	128	2. The estoppel letter may include the itemization of 79
129	129	information required under paragraph (a), but must at a minimum 80
130	130	include: 81
131	131	1. The total unpaid balance of the loan due under or 82
132	132	secured by the mortgage as of the date specified in the estoppel 83
133	133	letter, including an itemization of the principal, interest, and 84
134	134	any other charges comprising the unpaid balance; and 85
135	135	2. Interest accruing on a per -day basis for the unpaid 86
136	136	balance from and after the date specified in the estoppel 87
137	137	letter, if applicable. 88
138	138	(c)1. Except for mortgages for which a notice of lis 89
139	139	pendens in a foreclosure action or a suggestion of bankruptcy 90
140	140	has been properly filed and recorded, the mortgagee or mortgage 91
141	141	servicer may not qualify, reserve the right to change, or 92
142	142	condition or disclaim the reliance of others on the information 93
143	143	provided in an estoppel letter under paragraph (b), and any 94
144	144	attempt to do so is void and unenforceable. However, if the 95
145	145	mortgagee or mortgage servicer determines that any of the 96
146	146	information provided in the estoppel letter under paragraph (b) 97
147	147	was inaccurate, the mortgagee or mortgage servicer may send a 98
148	148	corrected estoppel letter to the person who requested the 99
149	149	estoppel letter in the same manner as used to respond to the 100
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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
161	161
162	162	original written request. If the original written request is 101
163	163	made by a person other than the mortgagor, the mortgagee or 102
164	164	mortgage servicer must also provide a copy of any corrected 103
165	165	estoppel letter to the mortgagor. 104
166	166	2. If the person who requested the original estoppel 105
167	167	letter under paragraph (a) receives a corrected estoppel letter 106
168	168	by 3 p.m. in such person's time zone at least 1 business day 107
169	169	before a payment is issu ed in reliance on the previous estoppel 108
170	170	letter, the corrected estoppel letter supersedes all prior 109
171	171	estoppel letters. 110
172	172	3. If any of the information provided in the estoppel 111
173	173	letter under paragraph (b) was inaccurate, but the person who 112
174	174	requested the estoppe l letter did not timely receive a corrected 113
175	175	estoppel letter as provided in subparagraph 2., the mortgagee or 114
176	176	mortgage servicer may not deny the accuracy of such information 115
177	177	as against any person who relied on it. This subparagraph does 116
178	178	not affect the right of a mortgagee to recover any sum that it 117
179	179	did not include in an estoppel letter from any person liable for 118
180	180	payment of the loan or other obligations secured by the 119
181	181	mortgage, nor does it limit any claim or defense to recovery 120
182	182	which such person may have at l aw or in equity on a per-day 121
183	183	basis. 122
184	184	(d)3. The mortgagee or mortgage servicer of the mortgagee 123
185	185	acting in accordance with a request in substantial compliance 124
186	186	with this subsection paragraph is expressly discharged from any 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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197	197
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199	199	obligation or liability to any per son on account of the release 126
200	200	of the requested information, other than the obligation to 127
201	201	comply with the terms of the estoppel letter. 128
202	202	(e) If a payment is received at the location and in the 129
203	203	manner specified by the mortgagee or mortgage servicer, the 130
204	204	mortgagee or mortgage servicer must accept and may not return 131
205	205	any payment received in reliance on an estoppel letter and must 132
206	206	promptly apply such payment to the unpaid balance of the loan 133
207	207	properly due under or secured by the mortgage. 134
208	208	(f)1. A written req uest for an estoppel letter under 135
209	209	paragraph (a) must be sent to the mortgagee or mortgage servicer 136
210	210	by first-class mail, postage prepaid; by common carrier delivery 137
211	211	service; or by e-mail, facsimile, or other electronic means at 138
212	212	the address made available by the mortgagee or mortgage servicer 139
213	213	for such purpose or through an automated system provided by the 140
214	214	mortgagee or mortgage servicer for requesting an estoppel 141
215	215	letter. The written request is considered received by the 142
216	216	mortgagee or mortgage servicer: 143
217	217	a. Five business days after the request sent by first -144
218	218	class mail is deposited with the United States Postal Service; 145
219	219	b. The day the request is delivered by a common carrier 146
220	220	delivery service; or 147
221	221	c. The day the request is sent by e -mail, facsimile, or 148
222	222	other electronic means or through an automated system provided 149
223	223	by the mortgagee or mortgage servicer for requesting an estoppel 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	letter. 151
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238	238	If any of the days in sub -subparagraph a., sub -subparagraph b., 153
239	239	or sub-subparagraph c. fall on a Saturday, Sunday, or holiday 154
240	240	specified in s. 110.117(1) or the laws of the United States, the 155
241	241	request for an estoppel letter is considered timely received by 156
242	242	the mortgagee or mortgage servicer on the next business day. 157
243	243	2. The mortgagee or mortgage servicer must send an 158
244	244	estoppel letter by first-class mail, postage prepaid; by common 159
245	245	carrier delivery service; or by e -mail, facsimile, or other 160
246	246	electronic means, as directed in the written request, or through 161
247	247	an automated system provided by the mortgagee or mortgage 162
248	248	servicer for this purpo se. However, the mortgagee or mortgage 163
249	249	servicer is not required to pay for a common carrier delivery 164
250	250	service. If the 10-day period after a written request is 165
251	251	received by the mortgagee or mortgage servicer ends on a 166
252	252	Saturday, Sunday, or holiday specified in s. 110.117(1) or the 167
253	253	laws of the United States, the estoppel letter is considered 168
254	254	timely if it is sent by the close of business on the next 169
255	255	business day. 170
256	256	(g)(c) Notwithstanding s. 655.059, a mortgagee or mortgage 171
257	257	servicer mortgage holder may provide the financial information 172
258	258	required under this subsection to a person authorized under this 173
259	259	subsection to request the financial information notwithstanding 174
260	260	s. 655.059. 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	(2)(a) Within 60 days after the unpaid balance of a loan 176
274	274	secured by a mortgage has been fully paid or paid pursuant to an 177
275	275	estoppel letter under subsection (1), whichever is earlier, the 178
276	276	mortgagee or mortgage servicer shall execute in writing an 179
277	277	instrument acknowledging release of the mortgage; have the 180
278	278	instrument acknowledged, o r proven, and send it or cause it to 181
279	279	be sent for recording in the official records of the proper 182
280	280	county; and send or cause to be sent the recorded release to the 183
281	281	mortgagor or record title owner of the property. The prevailing 184
282	282	party in a civil action brough t against the mortgagee or 185
283	283	mortgage servicer to enforce the requirements of this paragraph 186
284	284	is entitled to reasonable attorney fees and costs. 187
285	285	(b) The recorded release of the mortgage does not relieve 188
286	286	the mortgagor, or the mortgagor's successors or assign s, from 189
287	287	any personal liability on the loan or other obligations 190
288	288	previously secured by the mortgage. 191
289	289	(3)(2) Within 60 days after the unpaid balance Whenever 192
290	290	the amount of money due on a any mortgage, lien, or judgment has 193
291	291	been fully paid to the person or party entitled to the payment 194
292	292	thereof, the mortgagee, creditor, or assignee, or the attorney 195
293	293	of record in the case of a judgment, to whom the payment was 196
294	294	made, shall execute in writing an instrument acknowledging 197
295	295	satisfaction of the mortgage, lien, or judgment; and have the 198
296	296	instrument acknowledged, or proven, and send it or cause it to 199
297	297	be sent for recording duly entered in the official records of 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	the proper county; and. Within 60 days after the date of receipt 201
311	311	of the full payment of the mortgage, lien, or j udgment, the 202
312	312	person required to acknowledge satisfaction of the mortgage, 203
313	313	lien, or judgment shall send or cause to be sent the recorded 204
314	314	satisfaction to the person who has made the full payment. In the 205
315	315	case of a civil action arising out of this section, The 206
316	316	prevailing party in a civil action brought against the creditor 207
317	317	or assignee, or the attorney of record in the case of a 208
318	318	judgment, to enforce the requirements of this subsection is 209
319	319	entitled to reasonable attorney fees and costs. 210
320	320	(4)(3) When Whenever a writ of execution has been issued, 211
321	321	docketed, and indexed with a sheriff and the judgment upon which 212
322	322	it was issued has been fully paid, it is the responsibility of 213
323	323	the person party receiving payment to request, in writing, 214
324	324	addressed to the sheriff, return of the writ of execution as 215
325	325	fully satisfied. 216
326	326	Section 2. Paragraph (a) of subsection (1) and subsection 217
327	327	(2) of section 701.041, Florida Statutes, are amended to read: 218
328	328	701.041 Title insurer; mortgage release certificate. — 219
329	329	(1) DEFINITIONS.—For purposes of this section: 220
330	330	(a) "Estoppel letter" means a statement containing, at a 221
331	331	minimum, the information required in s. 701.04(1)(b) of the 222
332	332	amount of: 223
333	333	1. The unpaid balance of a loan secured by a mortgage, 224
334	334	including principal, interest, and any other charges properly 225
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343	343	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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347	347	due under or secured by the mortgage. 226
348	348	2. Interest on a per -day basis for the unpaid balance . 227
349	349	(2) CERTIFICATE OF RELEASE. —An officer or duly appointed 228
350	350	agent of a title insurer may, on behalf of a mortgagor or a 229
351	351	person who acquired from the mort gagor title to all or a part of 230
352	352	the property described in a mortgage, execute a certificate of 231
353	353	release that complies with the requirements of this section and 232
354	354	record the certificate of release in the real property records 233
355	355	of each county in which the mortga ge is recorded if a 234
356	356	satisfaction or release of the mortgage has not been executed 235
357	357	and recorded after the date payment in full of the loan properly 236
358	358	due under or secured by the mortgage was made in accordance with 237
359	359	an estoppel letter a payoff statement furnished by the mortgagee 238
360	360	or the mortgage servicer. 239
361	361	Section 3. The Legislature finds that the timeliness and 240
362	362	accuracy of an estoppel letter is critical because the parties 241
363	363	to a real estate transaction must rely on the estoppel letter to 242
364	364	establish the loan p ayoff amount necessary to release the 243
365	365	mortgage, which in turn will allow the owner to confer clean 244
366	366	title to a buyer or to refinance the property. The Legislature 245
367	367	further finds that estoppel letters increasingly contain 246
368	368	conditional language disclaiming the ability of an owner to rely 247
369	369	on the stated loan payoff amounts, extending even to the return 248
370	370	of such payments submitted by owners. These practices create 249
371	371	unnecessary delays in the efficient operation of this state's 250
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380	380	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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384	384	real estate market, which is a vital econ omic contributor to 251
385	385	this state, and impose needless costs and burdens on property 252
386	386	owners and buyers. In addition, the Legislature finds that real 253
387	387	estate lending, mortgages, real estate transactions, and 254
388	388	estoppel letters are extensively regulated under both Florida 255
389	389	and federal law. The Legislature finds and determines that this 256
390	390	act makes changes to state law which appropriately balance the 257
391	391	parties' interests, are reasonable and necessary to serve and 258
392	392	achieve an important state interest, are necessary for the 259
393	393	prosperity and welfare of the state and its property owners and 260
394	394	inhabitants, and must be applied to existing mortgages in order 261
395	395	to provide effective relief. 262
396	396	Section 4. This act applies to all mortgages, and all 263
397	397	loans secured by such mortgages, existing as of, or entered into 264
398	398	on or after, October 1, 2023. 265
399	399	Section 5. This act shall take effect October 1, 2023. 266