February 26, 2016
‘Title Insurance Ruling Clarified’
By James D. York, P.A.
A ruling last week by the Florida Department of Financial Services (DFS) relayed some new information from the Florida Division of Agent and Agency Services. It informed realtors that it was unlawful to prepay estoppel certificate fees prepared by community associations representing condominiums and Home Owners’ Associations. The reason for the ruling was that they considered the practice an illegal inducement to the placement of title insurance.
Then, a few days later, the DFS released a clarification letter in response to questions about the ruling. The most recent letter states that an advance payment can be legal in certain circumstances. If a title insurance agent or agency pays the estoppel certificate fee, and is later reimbursed for the full cost at closing, it is perfectly lawful.
We join Carrie O’Rourke, vice president of public policy for Florida Realtors, in appreciation for clearing this up. "We are grateful to Florida Chief Financial Officer Jeff Atwater and the DFS for working with Florida Realtors and the Florida Land Title Association on this clarification," O’Rourke said.
If you have any questions about how this ruling might affect your buying or selling proceedings, just give us a call.
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