Florida Senate - 2023                                    SB 1436
       
       
        
       By Senator Bradley
       
       
       
       
       
       6-01863B-23                                           20231436__
    1                        A bill to be entitled                      
    2         An act relating to real property fraud; creating s.
    3         28.51, F.S.; requiring the clerk of the circuit court
    4         to create, maintain, and operate a specified recording
    5         notification service; defining terms; requiring the
    6         clerk to ensure that registration for such service is
    7         possible through an electronic registration portal;
    8         providing requirements for such portal; requiring that
    9         certain recording notifications be sent to certain
   10         registrants within a specified timeframe; providing
   11         limitations on liability; providing construction;
   12         creating s. 65.091, F.S.; authorizing an action to
   13         quiet title based on a fraudulent attempted conveyance
   14         allegation to be maintained under ch. 65, F.S.;
   15         specifying that a petitioner bringing such action is
   16         entitled to summary procedure; providing requirements
   17         for the court relating to such actions; requiring the
   18         clerk of the circuit court to provide a simplified
   19         form for a certain purpose and instructions for
   20         completing the form; creating s. 475.5025, F.S.;
   21         requiring real estate licensees to send, or cause to
   22         be sent, copies of signed listing agreements and
   23         specified notices to certain persons; specifying that
   24         the failure to send such agreements or notices does
   25         not impair the validity or enforceability of certain
   26         documents and agreements; specifying that real estate
   27         licensees do not have liability to certain persons for
   28         failing to send such agreement or notices; authorizing
   29         such failures to be used for certain evidentiary
   30         purposes; specifying that an actual owner’s failure to
   31         reply to certain mailings does not preclude or limit
   32         the ability of an owner to take certain actions or
   33         limit certain remedies; amending s. 626.8411, F.S.;
   34         providing for the applicability of s. 627.799, F.S.,
   35         to title insurance agents and agencies and title
   36         insurers; creating s. 627.799, F.S.; requiring parties
   37         scheduled to provide real estate transaction closing
   38         services to send, or cause to be sent, specified
   39         notices to certain persons within a specified
   40         timeframe; specifying that the failure to send such
   41         notices does not impair the validity or enforceability
   42         of certain documents and agreements; specifying that
   43         scheduled closing service providers do not have
   44         liability to certain persons for failing to send such
   45         notices; authorizing such failures to be used for
   46         certain evidentiary purposes; specifying that an
   47         actual owner’s failure to reply to certain mailings
   48         does not preclude or limit the ability of an owner to
   49         take certain actions or limit certain remedies;
   50         providing construction; creating s. 689.025, F.S.;
   51         providing a form and requirements for quitclaim deeds;
   52         amending s. 695.26, F.S.; revising requirements for
   53         recording instruments affecting real property;
   54         providing an effective date.
   55          
   56  Be It Enacted by the Legislature of the State of Florida:
   57  
   58         Section 1. Section 28.51, Florida Statutes, is created to
   59  read:
   60         28.51Recording notification service.—The clerk of the
   61  circuit court must create, maintain, and operate a free
   62  recording notification service which is open to all persons
   63  wishing to register for the service.
   64         (1)For the purposes of this section, the term:
   65         (a)“Land record” means a deed, mortgage, or other document
   66  purporting to convey or encumber real property.
   67         (b)“Monitored identity” means a personal or business name
   68  or a parcel identification number submitted by a registrant for
   69  monitoring under a recording notification service.
   70         (c)“Recording notification” means a notification sent by
   71  e-mail indicating to a registrant that a land record associated
   72  with the registrant’s monitored identity has been recorded in
   73  the public records of a county.
   74         (d)“Recording notification service” means a service which
   75  sends automated recording notifications.
   76         (e)“Registrant” means a person who registers for a
   77  recording notification service.
   78         (2)The clerk must ensure that registration for the
   79  recording notification service is possible through an electronic
   80  registration portal, which portal must:
   81         (a)Be accessible through a direct link on the home page of
   82  the clerk’s official public website;
   83         (b)Allow a registrant to subscribe to receive recording
   84  notifications for at least five monitored identities per valid
   85  e-mail address provided;
   86         (c)Include a method by which a registrant may unsubscribe
   87  from the service;
   88         (d)List a phone number at which the clerk’s office may be
   89  reached for questions related to the service during normal
   90  business hours; and
   91         (e)Send an automated e-mail message to a registrant
   92  confirming his or her successful registration for or action to
   93  unsubscribe from the service, which message must identify each
   94  monitored identity for which a subscription was received or
   95  canceled.
   96         (3)When a land record is recorded for a monitored
   97  identity, a recording notification must be sent within 24 hours
   98  of the recording to each registrant who is subscribed to receive
   99  recording notifications for that monitored identity. Such
  100  notification must contain, at a minimum:
  101         (a)Information identifying the monitored identity for
  102  which the land record was filed;
  103         (b)The land record’s recording date;
  104         (c)The official record book and page number or instrument
  105  number assigned to the land record by the clerk;
  106         (d)Instructions for electronically searching for and
  107  viewing the land record using the assigned official record book
  108  and page number or instrument number; and
  109         (e)A phone number at which the clerk’s office may be
  110  contacted during normal business hours with questions related to
  111  the recording notification.
  112         (4)There is no right or cause of action against, and no
  113  civil liability on the part of, the clerk with respect to the
  114  creation, maintenance, or operation of a recording notification
  115  service as required by this section.
  116         (5)This section may not be construed to require the clerk
  117  to provide or allow access to a record or information which is
  118  confidential and exempt from s. 119.07(1) and s. 24(a), Art. I
  119  of the State Constitution or to otherwise violate the public
  120  records laws of this state.
  121         Section 2. Section 65.091, Florida Statutes, is created to
  122  read:
  123         65.091Quieting title; fraudulent conveyances.—
  124         (1)An action to quiet title based on a fraudulent
  125  attempted conveyance allegation may be maintained under this
  126  chapter, and this remedy is cumulative to other existing
  127  remedies. A petitioner bringing an action to quiet title based
  128  on such allegations is entitled to summary procedure under s.
  129  51.011, and the court shall advance the cause on the calendar.
  130         (2)In an action to quiet title where the court determines
  131  that an attempt was made to fraudulently convey the land at
  132  issue away from a plaintiff who had legal title to the land
  133  before the conveyance, the court must quiet title in and award
  134  the plaintiff with the same title and rights to the land that
  135  the plaintiff enjoyed before the attempted conveyance.
  136         (3)The clerk of the circuit court must provide a
  137  simplified form for the filing of a complaint to quiet title
  138  based on a fraudulent attempted conveyance allegation and
  139  instructions for completion of such form.
  140         Section 3. Section 475.5025, Florida Statutes, is created
  141  to read:
  142         475.5025Fraud prevention notice on listing.—
  143         (1)(a)To help prevent real estate fraud and identity
  144  theft, within 5 business days after entering into a brokerage
  145  relationship with the potential seller of property, a real
  146  estate licensee must send, or cause to be sent, a copy of the
  147  signed listing agreement by first-class mail to the potential
  148  seller at the mailing address of the owner of the property shown
  149  in the online records of the tax collector. The mailing may
  150  include a letter thanking the potential seller for the listing
  151  and other additional information as the licensee may deem
  152  appropriate.
  153         (b)If the tax collector’s records show a different owner
  154  of the property in the preceding year’s tax bill, the real
  155  estate licensee must, within 5 business days after entering into
  156  a brokerage relationship with the potential seller of property,
  157  send, or cause to be sent, an additional notice by first-class
  158  mail to the prior owner at the mailing address of the prior
  159  owner shown in the online records of the tax collector. Such
  160  notice must be substantially in the following form:
  161  
  162         ...(Brokerage Letterhead)...
  163         To help prevent real estate fraud and identity theft,
  164         the State of Florida requires us to notify you that
  165         ...(Name of Real Estate Brokerage)... has been engaged
  166         by ...(Potential Seller)... to market and sell the
  167         property you formerly owned at ...(Address and City,
  168         State).... If you believe this is in error, or you
  169         still claim an interest in this property, please
  170         notify us immediately at ...(Phone Number and E
  171         mail)....
  172  
  173         (2)(a)Failure to comply with this section does not impair
  174  the validity or enforceability of any listing agreement,
  175  purchase and sale agreement, deed, mortgage, or other instrument
  176  or agreement made or delivered in connection with a real estate
  177  sale transaction.
  178         (b)A real estate licensee does not have any liability to
  179  the actual or claimed owner of a property or a putative
  180  purchaser thereof solely because of his or her failure to comply
  181  with this section. However, any such noncompliance may be
  182  introduced as evidence to establish violations of this chapter;
  183  as an indication of possible fraud, forgery, impersonation,
  184  duress, incapacity, undue influence, illegality, or
  185  unconscionability; or for other evidentiary purposes.
  186         (c)The failure of the actual owner of a property to
  187  respond to the mailing does not preclude or limit the ability of
  188  such owner to establish possible fraud, forgery, impersonation,
  189  duress, incapacity, undue influence, minority, illegality, or
  190  unconscionability, or any other challenges or defenses to any
  191  real estate transaction, or to limit such owner’s remedy in any
  192  quiet title or declaratory judgment action.
  193         Section 4. Subsection (3) is added to section 626.8411,
  194  Florida Statutes, to read:
  195         626.8411 Application of Florida Insurance Code provisions
  196  to title insurance agents or agencies.—
  197         (3)Section 627.799 applies to title insurance agents and
  198  agencies and to title insurers only to the extent any of the
  199  foregoing are actually engaged in providing closing services for
  200  a particular transaction.
  201         Section 5. Section 627.799, Florida Statutes, is created to
  202  read:
  203         627.799Fraud prevention notice upon opening order.—
  204         (1)(a)To help prevent real estate fraud and identity
  205  theft, within 5 business days after opening an order to ensure a
  206  sale of real property or refinance of a mortgage encumbering
  207  real property, the party scheduled to provide closing services
  208  must send, or cause to be sent, a notice by first-class mail to
  209  the seller or borrower at the mailing address of the owner shown
  210  in the online records of the tax collector. Such notice must be
  211  in substantially the following form:
  212  
  213         ...(Letterhead of Closing Service Provider)...
  214         To help prevent real estate fraud and identity theft,
  215         the State of Florida requires us to notify you that
  216         ...(Name of Closing Service Provider)... has been
  217         engaged to handle the sale of, or coordinate the
  218         closing of a mortgage in favor of ...(Name of
  219         Lender)... secured by, the property located at
  220         ...(Address and City, State).... If you believe this
  221         is in error, please notify us immediately at ...(Phone
  222         Number and E-mail)....
  223  
  224  The mailing may include a letter thanking the seller or borrower
  225  for selecting the sender and such other additional information
  226  as the sender may deem appropriate.
  227         (b)When the records of the tax collector show a different
  228  owner of the property in the preceding year’s tax bill, the
  229  party scheduled to provide closing services must, within 5
  230  business days after opening an order to ensure a sale of real
  231  property or refinance of a mortgage encumbering real property,
  232  send, or cause to be sent, an additional notice by first-class
  233  mail to the prior owner at the mailing address of the prior
  234  owner shown in the online records of the tax collector. Such
  235  notice must be in substantially the following form:
  236  
  237         ...(Letterhead of Closing Service Provider)...
  238         In order to help prevent real estate fraud and
  239         identity theft, the State of Florida requires us to
  240         notify you that ...(Name of Closing Service
  241         Provider)... has been engaged to handle the sale of,
  242         or coordinate the closing of a mortgage against, the
  243         property you formerly owned at ...(Address and City,
  244         State).... If you believe this is in error, or you
  245         still claim an interest in this property, please
  246         notify us immediately at ...(Phone Number and E
  247         mail)....
  248  
  249         (c)A separate notice is not required to a borrower who is
  250  acquiring the property and placing the mortgage in the same
  251  closing.
  252         (2)(a)A failure to comply with this section does not
  253  impair the validity or enforceability of any escrow
  254  instructions, purchase and sale agreement, deed, mortgage, or
  255  other instrument or agreement made or delivered in connection
  256  with a real estate transaction.
  257         (b)The closing service provider does not have any
  258  liability to the actual or claimed owner of a property or a
  259  putative purchaser thereof solely because of the failure to
  260  comply with this section. However, any noncompliance may be
  261  introduced as evidence to establish violations of this chapter;
  262  as an indication of possible fraud, forgery, impersonation,
  263  duress, incapacity, undue influence, illegality, or
  264  unconscionability; or for other evidentiary purposes.
  265         (c)The failure of the actual owner of a property to
  266  respond to the mailing does not preclude or limit the ability of
  267  such owner to establish possible fraud, forgery, impersonation,
  268  duress, incapacity, undue influence, minority, illegality, or
  269  unconscionability or any other challenges or defenses to any
  270  real estate transaction, or to limit such owner’s remedy in any
  271  quiet title or declaratory judgment action.
  272         (d)This section does not alter or limit the obligations of
  273  the title insurer under any title insurance policy issued in
  274  connection with a real estate transaction.
  275         Section 6. Section 689.025, Florida Statutes, is created to
  276  read:
  277         689.025Form of quitclaim deed prescribed.—A quitclaim deed
  278  of conveyance to real property or an interest therein must:
  279         (1)Be in substantially the following form:
  280  
  281         This Quitclaim Deed, executed this .... day of
  282         ...(Month, Year)..., by first party, Grantor
  283         ...(Name)..., whose post-office address is
  284         ...(Address)..., to second party, Grantee
  285         ...(Name)..., whose post-office address is
  286         ...(Address)... witnesseth:
  287  
  288         That the said first party, for the sum of $...., and
  289         other good and valuable consideration paid by the
  290         second party, the receipt whereof is hereby
  291         acknowledged, does hereby remise, release, and
  292         quitclaim unto the said second party forever, all the
  293         right, title, interest, claim, and demand which the
  294         said first party has in and to the following described
  295         parcel of land, and all improvements and appurtenances
  296         thereto, in ...(County)..., Florida, to wit: ...(legal
  297         description)....
  298  
  299         (2)Include the legal description of the real property the
  300  instrument purports to convey, or in which the instrument
  301  purports to convey an interest. Such description must be legibly
  302  printed, typewritten, or stamped thereon.
  303         (3)Include a blank space for the parcel identification
  304  number assigned to the real property the instrument purports to
  305  convey, or in which the instrument purports to convey an
  306  interest. Such number, if available, must be entered on the deed
  307  before it is presented for recording. The failure to include
  308  such blank space or the parcel identification number does not
  309  affect the validity of the conveyance or the recordability of
  310  the deed. Such parcel identification number is not a part of the
  311  legal description of the property otherwise set forth in the
  312  instrument and may not be used as a substitute for the legal
  313  description required by this section.
  314         Section 7. Subsection (1) of section 695.26, Florida
  315  Statutes, is amended to read:
  316         695.26 Requirements for recording instruments affecting
  317  real property.—
  318         (1) No instrument by which the title to real property or
  319  any interest therein is conveyed, assigned, encumbered, or
  320  otherwise disposed of shall be recorded by the clerk of the
  321  circuit court unless:
  322         (a) The name of each person who executed such instrument is
  323  legibly printed, typewritten, or stamped upon such instrument
  324  immediately beneath the signature of such person and the post
  325  office address of each such person is legibly printed,
  326  typewritten, or stamped upon such instrument;
  327         (b) The name and post-office address of the natural person
  328  who prepared the instrument or under whose supervision it was
  329  prepared are legibly printed, typewritten, or stamped upon such
  330  instrument;
  331         (c) The name of each witness to the instrument is legibly
  332  printed, typewritten, or stamped upon such instrument
  333  immediately beneath the signature of such witness and the post
  334  office address of each such person is legibly printed,
  335  typewritten, or stamped upon such instrument;
  336         (d) The name of any notary public or other officer
  337  authorized to take acknowledgments or proofs whose signature
  338  appears upon the instrument is legibly printed, typewritten, or
  339  stamped upon such instrument immediately beneath the signature
  340  of such notary public or other officer authorized to take
  341  acknowledgment or proofs;
  342         (e) A 3-inch by 3-inch space at the top right-hand corner
  343  on the first page and a 1-inch by 3-inch space at the top right
  344  hand corner on each subsequent page are reserved for use by the
  345  clerk of the court; and
  346         (f) In any instrument other than a mortgage conveying or
  347  purporting to convey any interest in real property, the name and
  348  post-office address of each grantee in such instrument are
  349  legibly printed, typewritten, or stamped upon such instrument.
  350         Section 8. This act shall take effect July 1, 2023.