HB 743 2023
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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 estoppel letters; amending s. 2
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 which 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 requirement s 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; requiring 15
a mortgagee or mortgage servicer to provi de a copy of 16
a corrected estoppel letter to a mortgagor under 17
certain circumstances; providing that a corrected 18
estoppel letter supersedes any previous estoppel 19
letter under certain circumstances; prohibiting the 20
mortgagee or mortgage servicer from denying the 21
accuracy of certain information provided in an 22
estoppel letter under certain circumstances; providing 23
construction; prohibiting payments received pursuant 24
to an estoppel letter from being returned and 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
requiring such payments to be promptly applied to any 26
unpaid balance of the loan properly due under or 27
secured by a mortgage; providing methods for sending a 28
written request for an estoppel letter and for sending 29
an estoppel letter; providing that the mortgagee or 30
mortgage servicer is not required to pay for a common 31
carrier delivery service; requiring the mortgagee or 32
mortgage servicer to take certain actions within a 33
specified time after the unpaid balance of a loan 34
properly secured by a mortgage has been fully paid or 35
paid pursuant to an estoppel letter ; authorizing 36
reasonable attorney fees and costs for specified 37
parties in certain civil actions; providing that 38
certain persons may still be personally liable for a 39
loan or other obligation after the recording of a 40
release of a mortgage; conforming provisi ons to 41
changes made by the act; amending s. 701.041, F.S.; 42
revising the definition of the term "estoppel letter"; 43
conforming provisions to changes made by the act; 44
providing legislative findings; providing for 45
retroactive applicability; providing an effect ive 46
date. 47
48
Be It Enacted by the Legislature of the State of Florida: 49
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
Section 1. Section 701.04, Florida Statutes, is amended to 51
read: 52
701.04 Cancellation of mortgages, liens, and judgments. — 53
(1)(a) Within 10 14 days after receipt of the writte n 54
request of a mortgagor, a record title owner of the property, a 55
fiduciary or trustee lawfully acting on behalf of a record title 56
owner, or any other person lawfully authorized to act on behalf 57
of a mortgagor or record title owner of the property, the 58
mortgagee holder of a mortgage shall deliver or mortgage cause 59
the servicer shall send or cause to be sent of the mortgage to 60
deliver to the person making the request at a place designated 61
in the written request an estoppel letter setting forth the 62
unpaid balance of the loan secured by the mortgage. If the 63
written request is made by a person other than the mortgagor, 64
the request must include a copy of the instrument showing such 65
person's title in the property or other lawful authorization, 66
and the mortgagee or mortgage servicer must notify the mortgagor 67
of the request. 68
(a) If the mortgagor, or any person lawfully authorized to 69
act on behalf of the mortgagor, makes the request, the estoppel 70
letter must include an itemization of the principal, interest, 71
and any other charges properly due under or secured by the 72
mortgage and interest on a per -day basis for the unpaid balance. 73
(b) If a record title owner of the property, or any person 74
lawfully authorized to act on behalf of a mortgagor or record 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
title owner of the property, makes the request: 76
1. The request must include a copy of the instrument 77
showing title in the property or lawful authorization. 78
2. The estoppel letter may include the itemization of 79
information required under paragraph (a), but must at a minimum 80
include: 81
1. The total unpaid balance of the loan due under or 82
secured by the mortgage as of the date specified in the estoppel 83
letter, including an itemization of the principal, interest, and 84
any other charges comprising the unpaid balance; and 85
2. Interest accruing on a per -day basis for the unpaid 86
balance from and after the date specified in the estoppel 87
letter, if applicable. 88
(c)1. Except for mortgages for which a notice of lis 89
pendens in a foreclosure action or a suggestion of bankruptcy 90
has been properly filed and recorded, the mortgagee or mortgage 91
servicer may not qualify, reserve the right to change, or 92
condition or disclaim the reliance of others on the information 93
provided in an estoppel letter under paragraph (b), and any 94
attempt to do so is void and unenforceable. However, if the 95
mortgagee or mortgage servicer determines that any of the 96
information provided in the estoppel letter under paragraph (b) 97
was inaccurate, the mortgagee or mortgage servicer may send a 98
corrected estoppel letter to the person who requested the 99
estoppel letter in the same manner as used to respond to the 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
original written request. If the original written request is 101
made by a person other than the mortgagor, the mortgagee or 102
mortgage servicer must also provide a copy of any corrected 103
estoppel letter to the mortgagor. 104
2. If the person who requested the original estoppel 105
letter under paragraph (a) receives a corrected estoppel letter 106
by 3 p.m. in such person's time zone at least 1 business day 107
before a payment is issu ed in reliance on the previous estoppel 108
letter, the corrected estoppel letter supersedes all prior 109
estoppel letters. 110
3. If any of the information provided in the estoppel 111
letter under paragraph (b) was inaccurate, but the person who 112
requested the estoppe l letter did not timely receive a corrected 113
estoppel letter as provided in subparagraph 2., the mortgagee or 114
mortgage servicer may not deny the accuracy of such information 115
as against any person who relied on it. This subparagraph does 116
not affect the right of a mortgagee to recover any sum that it 117
did not include in an estoppel letter from any person liable for 118
payment of the loan or other obligations secured by the 119
mortgage, nor does it limit any claim or defense to recovery 120
which such person may have at l aw or in equity on a per-day 121
basis. 122
(d)3. The mortgagee or mortgage servicer of the mortgagee 123
acting in accordance with a request in substantial compliance 124
with this subsection paragraph is expressly discharged from any 125
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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
obligation or liability to any per son on account of the release 126
of the requested information, other than the obligation to 127
comply with the terms of the estoppel letter. 128
(e) If a payment is received at the location and in the 129
manner specified by the mortgagee or mortgage servicer, the 130
mortgagee or mortgage servicer must accept and may not return 131
any payment received in reliance on an estoppel letter and must 132
promptly apply such payment to the unpaid balance of the loan 133
properly due under or secured by the mortgage. 134
(f)1. A written req uest for an estoppel letter under 135
paragraph (a) must be sent to the mortgagee or mortgage servicer 136
by first-class mail, postage prepaid; by common carrier delivery 137
service; or by e-mail, facsimile, or other electronic means at 138
the address made available by the mortgagee or mortgage servicer 139
for such purpose or through an automated system provided by the 140
mortgagee or mortgage servicer for requesting an estoppel 141
letter. The written request is considered received by the 142
mortgagee or mortgage servicer: 143
a. Five business days after the request sent by first -144
class mail is deposited with the United States Postal Service; 145
b. The day the request is delivered by a common carrier 146
delivery service; or 147
c. The day the request is sent by e -mail, facsimile, or 148
other electronic means or through an automated system provided 149
by the mortgagee or mortgage servicer for requesting an estoppel 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
letter. 151
152
If any of the days in sub -subparagraph a., sub -subparagraph b., 153
or sub-subparagraph c. fall on a Saturday, Sunday, or holiday 154
specified in s. 110.117(1) or the laws of the United States, the 155
request for an estoppel letter is considered timely received by 156
the mortgagee or mortgage servicer on the next business day. 157
2. The mortgagee or mortgage servicer must send an 158
estoppel letter by first-class mail, postage prepaid; by common 159
carrier delivery service; or by e -mail, facsimile, or other 160
electronic means, as directed in the written request, or through 161
an automated system provided by the mortgagee or mortgage 162
servicer for this purpo se. However, the mortgagee or mortgage 163
servicer is not required to pay for a common carrier delivery 164
service. If the 10-day period after a written request is 165
received by the mortgagee or mortgage servicer ends on a 166
Saturday, Sunday, or holiday specified in s. 110.117(1) or the 167
laws of the United States, the estoppel letter is considered 168
timely if it is sent by the close of business on the next 169
business day. 170
(g)(c) Notwithstanding s. 655.059, a mortgagee or mortgage 171
servicer mortgage holder may provide the financial information 172
required under this subsection to a person authorized under this 173
subsection to request the financial information notwithstanding 174
s. 655.059. 175
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(2)(a) Within 60 days after the unpaid balance of a loan 176
secured by a mortgage has been fully paid or paid pursuant to an 177
estoppel letter under subsection (1), whichever is earlier, the 178
mortgagee or mortgage servicer shall execute in writing an 179
instrument acknowledging release of the mortgage; have the 180
instrument acknowledged, o r proven, and send it or cause it to 181
be sent for recording in the official records of the proper 182
county; and send or cause to be sent the recorded release to the 183
mortgagor or record title owner of the property. The prevailing 184
party in a civil action brough t against the mortgagee or 185
mortgage servicer to enforce the requirements of this paragraph 186
is entitled to reasonable attorney fees and costs. 187
(b) The recorded release of the mortgage does not relieve 188
the mortgagor, or the mortgagor's successors or assign s, from 189
any personal liability on the loan or other obligations 190
previously secured by the mortgage. 191
(3)(2) Within 60 days after the unpaid balance Whenever 192
the amount of money due on a any mortgage, lien, or judgment has 193
been fully paid to the person or party entitled to the payment 194
thereof, the mortgagee, creditor, or assignee, or the attorney 195
of record in the case of a judgment, to whom the payment was 196
made, shall execute in writing an instrument acknowledging 197
satisfaction of the mortgage, lien, or judgment; and have the 198
instrument acknowledged, or proven, and send it or cause it to 199
be sent for recording duly entered in the official records of 200
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the proper county; and. Within 60 days after the date of receipt 201
of the full payment of the mortgage, lien, or j udgment, the 202
person required to acknowledge satisfaction of the mortgage, 203
lien, or judgment shall send or cause to be sent the recorded 204
satisfaction to the person who has made the full payment. In the 205
case of a civil action arising out of this section, The 206
prevailing party in a civil action brought against the creditor 207
or assignee, or the attorney of record in the case of a 208
judgment, to enforce the requirements of this subsection is 209
entitled to reasonable attorney fees and costs. 210
(4)(3) When Whenever a writ of execution has been issued, 211
docketed, and indexed with a sheriff and the judgment upon which 212
it was issued has been fully paid, it is the responsibility of 213
the person party receiving payment to request, in writing, 214
addressed to the sheriff, return of the writ of execution as 215
fully satisfied. 216
Section 2. Paragraph (a) of subsection (1) and subsection 217
(2) of section 701.041, Florida Statutes, are amended to read: 218
701.041 Title insurer; mortgage release certificate. — 219
(1) DEFINITIONS.—For purposes of this section: 220
(a) "Estoppel letter" means a statement containing, at a 221
minimum, the information required in s. 701.04(1)(b) of the 222
amount of: 223
1. The unpaid balance of a loan secured by a mortgage, 224
including principal, interest, and any other charges properly 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
due under or secured by the mortgage. 226
2. Interest on a per -day basis for the unpaid balance . 227
(2) CERTIFICATE OF RELEASE. —An officer or duly appointed 228
agent of a title insurer may, on behalf of a mortgagor or a 229
person who acquired from the mort gagor title to all or a part of 230
the property described in a mortgage, execute a certificate of 231
release that complies with the requirements of this section and 232
record the certificate of release in the real property records 233
of each county in which the mortga ge is recorded if a 234
satisfaction or release of the mortgage has not been executed 235
and recorded after the date payment in full of the loan properly 236
due under or secured by the mortgage was made in accordance with 237
an estoppel letter a payoff statement furnished by the mortgagee 238
or the mortgage servicer. 239
Section 3. The Legislature finds that the timeliness and 240
accuracy of an estoppel letter is critical because the parties 241
to a real estate transaction must rely on the estoppel letter to 242
establish the loan p ayoff amount necessary to release the 243
mortgage, which in turn will allow the owner to confer clean 244
title to a buyer or to refinance the property. The Legislature 245
further finds that estoppel letters increasingly contain 246
conditional language disclaiming the ability of an owner to rely 247
on the stated loan payoff amounts, extending even to the return 248
of such payments submitted by owners. These practices create 249
unnecessary delays in the efficient operation of this state's 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
real estate market, which is a vital econ omic contributor to 251
this state, and impose needless costs and burdens on property 252
owners and buyers. In addition, the Legislature finds that real 253
estate lending, mortgages, real estate transactions, and 254
estoppel letters are extensively regulated under both Florida 255
and federal law. The Legislature finds and determines that this 256
act makes changes to state law which appropriately balance the 257
parties' interests, are reasonable and necessary to serve and 258
achieve an important state interest, are necessary for the 259
prosperity and welfare of the state and its property owners and 260
inhabitants, and must be applied to existing mortgages in order 261
to provide effective relief. 262
Section 4. This act applies to all mortgages, and all 263
loans secured by such mortgages, existing as of, or entered into 264
on or after, October 1, 2023. 265
Section 5. This act shall take effect October 1, 2023. 266