ENROLLED 2023 Legislature SB 708 2023708er 1 2 An act relating to estoppel letters; amending s. 3 701.04, F.S.; revising the timeframe within which a 4 mortgagee or mortgage servicer must send or cause to 5 be sent an estoppel letter containing specified 6 information; revising the circumstances under which a 7 copy of the instrument showing title in the property 8 or other lawful authorization must be included in a 9 request for an estoppel letter; requiring notice to 10 the mortgagor of a request for an estoppel letter 11 under certain circumstances; revising requirements for 12 an estoppel letter; prohibiting certain actions by the 13 mortgagee or mortgage servicer; authorizing the 14 mortgagee or mortgage servicer to send a corrected 15 estoppel letter under certain circumstances; requiring 16 a mortgagee or mortgage servicer to provide a copy of 17 a corrected estoppel letter to a mortgagor under 18 certain circumstances; providing that a corrected 19 estoppel letter supersedes any previous estoppel 20 letter under certain circumstances; prohibiting the 21 mortgagee or mortgage servicer from denying the 22 accuracy of certain information provided in an 23 estoppel letter under certain circumstances; providing 24 construction; prohibiting payments received pursuant 25 to an estoppel letter from being returned and 26 requiring such payments to be promptly applied to any 27 unpaid balance of the loan properly due under or 28 secured by a mortgage; providing methods for sending a 29 written request for an estoppel letter and for sending 30 an estoppel letter; providing that the mortgagee or 31 mortgage servicer is not required to pay for a common 32 carrier delivery service; requiring the mortgagee or 33 mortgage servicer to take certain actions within a 34 specified time after the unpaid balance of a loan 35 properly secured by a mortgage has been fully paid or 36 paid pursuant to an estoppel letter; authorizing 37 reasonable attorney fees and costs for specified 38 parties in certain civil actions; providing that 39 certain persons may still be personally liable for a 40 loan or other obligation after the recording of a 41 release of a mortgage; conforming provisions to 42 changes made by the act; amending s. 701.041, F.S.; 43 revising the definition of the term estoppel letter; 44 conforming provisions to changes made by the act; 45 providing legislative findings; providing for 46 retroactive applicability; providing an effective 47 date. 48 49 Be It Enacted by the Legislature of the State of Florida: 50 51 Section 1.Section 701.04, Florida Statutes, is amended to 52 read: 53 701.04Cancellation of mortgages, liens, and judgments. 54 (1)(a)Within 10 14 days after receipt of the written 55 request of a mortgagor, a record title owner of the property, a 56 fiduciary or trustee lawfully acting on behalf of a record title 57 owner, or any other person lawfully authorized to act on behalf 58 of a mortgagor or record title owner of the property, the 59 mortgagee holder of a mortgage shall deliver or mortgage cause 60 the servicer shall send or cause to be sent of the mortgage to 61 deliver to the person making the request at a place designated 62 in the written request an estoppel letter setting forth the 63 unpaid balance of the loan secured by the mortgage. If the 64 written request is made by a person other than the mortgagor, 65 the request must include a copy of the instrument showing such 66 persons title in the property or other lawful authorization, 67 and the mortgagee or mortgage servicer must notify the mortgagor 68 of the request. 69 (a)If the mortgagor, or any person lawfully authorized to 70 act on behalf of the mortgagor, makes the request, the estoppel 71 letter must include an itemization of the principal, interest, 72 and any other charges properly due under or secured by the 73 mortgage and interest on a per-day basis for the unpaid balance. 74 (b)If a record title owner of the property, or any person 75 lawfully authorized to act on behalf of a mortgagor or record 76 title owner of the property, makes the request: 77 1.The request must include a copy of the instrument 78 showing title in the property or lawful authorization. 79 2.The estoppel letter may include the itemization of 80 information required under paragraph (a), but must at a minimum 81 include: 82 1.The total unpaid balance of the loan due under or 83 secured by the mortgage as of the date specified in the estoppel 84 letter, including an itemization of the principal, interest, and 85 any other charges comprising the unpaid balance; and 86 2.Interest accruing on a per-day basis for the unpaid 87 balance from and after the date specified in the estoppel 88 letter, if applicable. 89 (c)1.Except for mortgages for which a notice of lis 90 pendens in a foreclosure action or a suggestion of bankruptcy 91 has been properly filed and recorded, the mortgagee or mortgage 92 servicer may not qualify, reserve the right to change, or 93 condition or disclaim the reliance of others on the information 94 provided in an estoppel letter under paragraph (b), and any 95 attempt to do so is void and unenforceable. However, if the 96 mortgagee or mortgage servicer determines that any of the 97 information provided in the estoppel letter under paragraph (b) 98 was inaccurate, the mortgagee or mortgage servicer may send a 99 corrected estoppel letter to the person who requested the 100 estoppel letter in the same manner as used to respond to the 101 original written request. If the original written request is 102 made by a person other than the mortgagor, the mortgagee or 103 mortgage servicer must also provide a copy of any corrected 104 estoppel letter to the mortgagor. 105 2.If the person who requested the original estoppel letter 106 under paragraph (a) receives a corrected estoppel letter by 3 107 p.m. in such persons time zone at least 1 business day before a 108 payment is issued in reliance on the previous estoppel letter, 109 the corrected estoppel letter supersedes all prior estoppel 110 letters. 111 3.If any of the information provided in the estoppel 112 letter under paragraph (b) was inaccurate, but the person who 113 requested the estoppel letter did not timely receive a corrected 114 estoppel letter as provided in subparagraph 2., the mortgagee or 115 mortgage servicer may not deny the accuracy of such information 116 as against any person who relied on it. This subparagraph does 117 not affect the right of a mortgagee to recover any sum that it 118 did not include in an estoppel letter from any person liable for 119 payment of the loan or other obligations secured by the 120 mortgage, nor does it limit any claim or defense to recovery 121 which such person may have at law or in equity on a per-day 122 basis. 123 (d)3.The mortgagee or mortgage servicer of the mortgagee 124 acting in accordance with a request in substantial compliance 125 with this subsection paragraph is expressly discharged from any 126 obligation or liability to any person on account of the release 127 of the requested information, other than the obligation to 128 comply with the terms of the estoppel letter. 129 (e)If a payment is received at the location and in the 130 manner specified by the mortgagee or mortgage servicer, the 131 mortgagee or mortgage servicer must accept and may not return 132 any payment received in reliance on an estoppel letter and must 133 promptly apply such payment to the unpaid balance of the loan 134 properly due under or secured by the mortgage. 135 (f)1.A written request for an estoppel letter under 136 paragraph (a) must be sent to the mortgagee or mortgage servicer 137 by first-class mail, postage prepaid; by common carrier delivery 138 service; or by e-mail, facsimile, or other electronic means at 139 the address made available by the mortgagee or mortgage servicer 140 for such purpose or through an automated system provided by the 141 mortgagee or mortgage servicer for requesting an estoppel 142 letter. The written request is considered received by the 143 mortgagee or mortgage servicer: 144 a.Five business days after the request sent by first-class 145 mail is deposited with the United States Postal Service; 146 b.The day the request is delivered by a common carrier 147 delivery service; or 148 c.The day the request is sent by e-mail, facsimile, or 149 other electronic means or through an automated system provided 150 by the mortgagee or mortgage servicer for requesting an estoppel 151 letter. 152 153 If any of the days in sub-subparagraph a., sub-subparagraph b., 154 or sub-subparagraph c. fall on a Saturday, Sunday, or holiday 155 specified in s. 110.117(1) or the laws of the United States, the 156 request for an estoppel letter is considered timely received by 157 the mortgagee or mortgage servicer on the next business day. 158 2.The mortgagee or mortgage servicer must send an estoppel 159 letter by first-class mail, postage prepaid; by common carrier 160 delivery service; or by e-mail, facsimile, or other electronic 161 means, as directed in the written request, or through an 162 automated system provided by the mortgagee or mortgage servicer 163 for this purpose. However, the mortgagee or mortgage servicer is 164 not required to pay for a common carrier delivery service. If 165 the 10-day period after a written request is received by the 166 mortgagee or mortgage servicer ends on a Saturday, Sunday, or 167 holiday specified in s. 110.117(1) or the laws of the United 168 States, the estoppel letter is considered timely if it is sent 169 by the close of business on the next 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 (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, or 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 brought 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 mortgagors successors or assigns, 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 the 192 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 the proper county; and. Within 60 days after the date of receipt 201 of the full payment of the mortgage, lien, or judgment, 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: 218 701.041Title 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 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 mortgagor 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 mortgage 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 payoff 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 states 250 real estate market, which is a vital economic 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 loans 263 secured by such mortgages, existing as of, or entered into on or 264 after, October 1, 2023. 265 Section 5.This act shall take effect October 1, 2023.