The Florida Senate
BILL ANALYSIS AND FISCAL IMPACT STATEMENT
(This document is based on the provisions contained in the legislation as of the latest date listed below.)
Prepared By: The Professional Staff of the Committee on Judiciary
BILL: SB 526
INTRODUCER: Senator Pizzo and others
SUBJECT: Title Fraud Prevention
DATE: Febuary 2, 2024
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Bond Cibula JU Pre-meeting
2. CA
3. RC
I. Summary:
SB 526 creates a pilot program for real estate title fraud prevention in Broward County, Florida.
Professionals involved in a real estate transaction in that county will be encouraged to notify the
property appraiser of a pending sale. If the owner has registered with the clerk’s notification
program, the property appraiser will notify the owner of the pending sale. The purpose of the
notification service is to confirm the seller’s identity to ensure the integrity of the real estate
transaction.
The bill provides that there is no right or cause of action against, and no civil liability on the part
of, real estate brokers, title agents, attorneys, or the property appraiser with respect to the
creation, maintenance, and operation of the sales contract notification service or land record
notification service, or for providing information to the property appraiser pursuant to the
program.
The pilot programs ends, and the statute is repealed, on July 1, 2026. On or prior to the repeal,
the Broward County Property Appraiser must prepare and deliver a report on the program to the
Governor, President of the Senate, and Speaker of the House of Representatives.
The bill is effective July 1, 2024.
II. Present Situation:
The term “title fraud” refers to the fraudulent use of a false real property conveyance in which a
fraudster executes and records a deed purporting to convey title to or an interest in real property
to himself or herself or a third party without the property owner’s knowledge or consent. The
REVISED: BILL: SB 526 Page 2
person then sells, mortgages, or leases out the property, and absconds with the proceeds.
1
One
common title fraud scheme occurs when an identity thief pretends to be the owner of the real
property and signs a real estate listing contract intending to steal the cash from the closing while
the actual owner is unaware that their property is for sale.
2
To address the title fraud problem, the 2023 Legislature created a requirement that every clerk of
court, by July 1, 2024, create, maintain, and operate a free recording notification service that is
open to all persons wishing to register for the service.
3
Any person may register for the service.
The service will send an automated recording notification whenever a document is recorded in
the Official Records of the county which names that registered person.
A clerk’s recording notification service does not stop title fraud, the title fraud occurs when the
fraudulent instrument is recorded. The service, however, quickly notifies a registrant of the title
fraud, and thereby gives the victim notice of the necessity of legal action to avoid or mitigate the
fraud.
III. Effect of Proposed Changes:
The bill creates the Title Fraud Prevention Through Sales Contract Notification Services Pilot
Program in Broward County.
Upon execution of a contract for the sale of a real property parcel, and before closing occurs, real
estate brokers, title agents, and attorneys involved in the transfer of real property are encouraged
to report to the county property appraiser the seller’s name, mailing address, e-mail address, and
phone number, as such information appears within the contract.
Upon receipt of the information, if the landowner has registered with the clerk of court for
notifications, the property appraiser will notify the landowner that a contract for the sale or
purchase of the real estate has been executed. The stated purpose of the notification service is to
confirm the seller’s identity to ensure the integrity of the real estate transaction. It is possible that
a notification may arrive early enough from this process that the planned closing on the property
can be stopped.
There is no right or cause of action against, and no civil liability on the part of, real estate
brokers, title agents, attorneys, or the property appraiser with respect to the creation,
maintenance, and operation of a sales contract notification service or land record notification
service, or for providing information to the property appraiser.
By July 1, 2026, the Broward County Property Appraiser must deliver to the Governor, the
President of the Senate, and the Speaker of the House of Representatives, a report on the pilot
program containing the following information:
The number of real estate brokers, title agents, and attorneys who provided information to the
property appraiser under this section.
1
David Chang, What Is Home Title Fraud? A Beginner’s Guide, THE ASCENT (updated Feb. 22, 2023),
https://www.fool.com/the-ascent/mortgages/home-title-fraud/.
2
In a sense, this is the “white collar” version of squatting. Like squatting, vacation homes are a favorite target of this scheme.
3
Section 28.47, F.S., created by chapter 2023-238, Laws of Fla. BILL: SB 526 Page 3
The number of times a seller’s contact information was provided to the property appraiser
under this section.
The property appraiser’s recommendation as to whether the sales contract notification service
is appropriate to recommend throughout the state as an effective tool to combat title fraud.
Any other information the property appraiser deems necessary.
The bill is effective July 1, 2024. The section created by the bill is repealed on July 1, 2026.
IV. Constitutional Issues:
A. Municipality/County Mandates Restrictions:
The bill requires the property appraiser of Broward County to create and operate a real
property sales notification pilot program. The cost to the property appraiser appears to be
minimal.
B. Public Records/Open Meetings Issues:
None.
C. Trust Funds Restrictions:
None.
D. State Tax or Fee Increases:
None.
E. Other Constitutional Issues:
None apparent.
V. Fiscal Impact Statement:
A. Tax/Fee Issues:
None.
B. Private Sector Impact:
To the extent that the bill stops title fraud at the front end of a real estate transaction, it
will reduce costs at the back end to clear title to property.
C. Government Sector Impact:
The Broward County Property Appraiser will likely incur some minimal costs to
administer the pilot program and mail notices to property owners. BILL: SB 526 Page 4
VI. Technical Deficiencies:
None.
VII. Related Issues:
None.
VIII. Statutes Affected:
This bill creates section 696.031 of the Florida Statutes.
IX. Additional Information:
A. Committee Substitute – Statement of Changes:
(Summarizing differences between the Committee Substitute and the prior version of the bill.)
None.
B. Amendments:
None.
This Senate Bill Analysis does not reflect the intent or official position of the bill’s introducer or the Florida Senate.