Florida Senate - 2023                             CS for SB 1436
       
       
        
       By the Committee on Judiciary; and Senator Bradley
       
       
       
       
       
       590-03309-23                                          20231436c1
    1                        A bill to be entitled                      
    2         An act relating to real property fraud; creating s.
    3         28.47, F.S.; requiring the clerk of the circuit court
    4         to create, maintain, and operate an opt-in recording
    5         notification service; providing definitions; requiring
    6         such clerk to ensure that registration for such
    7         service is possible through an electronic registration
    8         portal; specifying portal and notification
    9         requirements; providing immunity from liability for
   10         the clerk; providing construction; providing for
   11         applicability of the section to property appraisers;
   12         creating s. 65.091, F.S.; clarifying that an action
   13         may be brought under ch. 65, F.S., to quiet title
   14         after a fraudulent attempted conveyance; requiring the
   15         court to quiet title and award certain title and
   16         rights under certain circumstances; directing the
   17         clerk of the circuit court to provide a simplified
   18         complaint form; creating s. 475.5025, F.S.; requiring
   19         a real estate licensee to send a fraud prevention
   20         notice under specified circumstances; providing form
   21         language for such notice; providing for applicability;
   22         limiting the liability of a real estate licensee for
   23         noncompliance but providing that such noncompliance
   24         may be introduced as evidence for certain violations;
   25         providing that the failure of a property owner to
   26         respond to the notice does not preclude or limit the
   27         ability to establish certain challenges or defenses or
   28         limit his or her remedy in any quiet title or
   29         declaratory judgment action; amending s. 626.8411,
   30         F.S.; providing for applicability relating to title
   31         insurance agents and agencies and title insurers;
   32         creating s. 627.799, F.S.; requiring parties providing
   33         real estate transaction closing services to send a
   34         fraud prevention notice under specified circumstances;
   35         providing form language for such notice; providing for
   36         applicability; limiting a closing service provider’s
   37         liability for noncompliance but permitting such
   38         noncompliance to be introduced as evidence to
   39         establish certain violations; providing that the
   40         failure of a property owner to respond to the notice
   41         does not preclude or limit the ability to establish
   42         certain challenges or defenses or limit his or her
   43         remedy in any quiet title or declaratory judgment
   44         action; providing applicability relating to the title
   45         insurer’s obligations; creating s. 689.025, F.S.;
   46         prescribing the form for a quitclaim deed; amending s.
   47         695.26, F.S.; revising the requirements for recording
   48         instruments affecting real property; providing an
   49         effective date.
   50          
   51  Be It Enacted by the Legislature of the State of Florida:
   52  
   53         Section 1. Section 28.47, Florida Statutes, is created to
   54  read:
   55         28.47Recording notification service.—
   56         (1)On or before July 1, 2024, each clerk of the circuit
   57  court must create, maintain, and operate a free recording
   58  notification service which is open to all persons wishing to
   59  register for the service. For purposes of this section, the
   60  term:
   61         (a)“Land record” means a deed, mortgage, or other document
   62  purporting to convey or encumber real property.
   63         (b)“Monitored identity” means a personal or business name
   64  or a parcel identification number submitted by a registrant for
   65  monitoring under a recording notification service.
   66         (c)“Recording notification” means a notification sent by
   67  electronic mail indicating to a registrant that a land record
   68  associated with the registrant’s monitored identity has been
   69  recorded in the public records of the county.
   70         (d)“Recording notification service” means a service which
   71  sends automated recording notifications.
   72         (e)“Registrant” means a person who registers for a
   73  recording notification service.
   74         (2)The clerk must ensure that registration for the
   75  recording notification service is possible through an electronic
   76  registration portal, which portal must:
   77         (a)Be accessible through a direct link on the home page of
   78  the clerk’s official public website;
   79         (b)Allow a registrant to subscribe to receive recording
   80  notifications for at least five monitored identities per valid
   81  electronic mail address provided;
   82         (c)Include a method by which a registrant may unsubscribe
   83  from the service;
   84         (d)List a phone number at which the clerk’s office may be
   85  contacted during normal business hours with questions related to
   86  the service; and
   87         (e)Send an automated electronic mail message to a
   88  registrant confirming his or her successful registration for or
   89  action to unsubscribe from the service, which message must
   90  identify each monitored identity for which a subscription was
   91  received or canceled.
   92         (3)When a land record is recorded for a monitored
   93  identity, a recording notification must be sent within 24 hours
   94  after the recording to each registrant who is subscribed to
   95  receive recording notifications for that monitored identity.
   96  Such notification must contain, at a minimum:
   97         (a)Information identifying the monitored identity for
   98  which the land record was filed;
   99         (b)The land record’s recording date;
  100         (c)The official record book and page number or instrument
  101  number assigned to the land record by the clerk;
  102         (d)Instructions for electronically searching for and
  103  viewing the land record using the assigned official record book
  104  and page number or instrument number; and
  105         (e)A phone number at which the clerk’s office may be
  106  contacted during normal business hours with questions related to
  107  the recording notification.
  108         (4)There is no right or cause of action against, and no
  109  civil liability on the part of, the clerk with respect to the
  110  creation, maintenance, or operation of a recording notification
  111  service as required by this section.
  112         (5)Nothing in this section may be construed to require the
  113  clerk to provide or allow access to a record or information
  114  which is confidential and exempt from s. 119.07(1) and s. 24(a),
  115  Art. I of the State Constitution or to otherwise violate the
  116  public records laws of this state.
  117         (6)This section shall also apply to county property
  118  appraisers that adopt an electronic land record notification
  119  service.
  120         (a)The property appraiser may adopt a verification process
  121  for persons wishing to register for the electronic land records
  122  notification service to ensure integrity of the process.
  123         (b)For purposes of this subsection only, and
  124  notwithstanding the provisions in paragraph (1)(a) and
  125  subsection (3):
  126         1.“Land record” means a deed or other document, purporting
  127  to convey real property.
  128         2.When a land record is recorded for a monitored identity,
  129  a recording notification must be sent to each registrant who is
  130  subscribed to receive recording notifications for that monitored
  131  identity within 24 hours of the instrument being reflected on
  132  the county tax roll by the property appraiser.
  133         Section 2. Section 65.091, Florida Statutes, is created to
  134  read:
  135         65.091Quieting title; fraudulent conveyances.—
  136         (1)An action to quiet title based on a fraudulent
  137  attempted conveyance allegation may be maintained under this
  138  chapter, and this remedy is cumulative to other existing
  139  remedies. A petitioner bringing an action to quiet title based
  140  on such allegations is entitled to summary procedure under s.
  141  51.011, and the court shall advance the cause on the calendar.
  142         (2)In an action to quiet title, when the court determines
  143  that an attempt was made to fraudulently convey the land at
  144  issue away from a plaintiff who had legal title to the land
  145  before the conveyance, the court must quiet title in and award
  146  the plaintiff with the same title and rights to the land that
  147  the plaintiff enjoyed before the attempted conveyance.
  148         (3)The clerk of the circuit court must provide a
  149  simplified form for the filing of a complaint to quiet title
  150  based on a fraudulent attempted conveyance allegation and
  151  instructions for completing such form.
  152         Section 3. Section 475.5025, Florida Statutes, is created
  153  to read:
  154         475.5025Fraud prevention notice on listing.—
  155         (1)(a)To help prevent real estate fraud and identity
  156  theft, within 5 business days after entering into a brokerage
  157  relationship with the potential seller of property, the real
  158  estate licensee must cause a notice to be sent by first-class
  159  mail to the potential seller at the mailing address of the owner
  160  shown in the online records of the tax collector. Such notice
  161  must be in substantially the following form:
  162  
  163         (Brokerage letterhead)
  164  
  165         To help prevent real estate fraud and identity theft,
  166         the State of Florida requires us to notify you that
  167         (name of real estate broker) has been engaged by
  168         (potential seller) to market and sell the property at
  169         (address, city, and state). If you believe this is in
  170         error, please notify us immediately at (phone number
  171         and e-mail).
  172  
  173  The notice may include a letter thanking the potential seller
  174  for the listing and such other additional information as the
  175  licensee may deem appropriate.
  176         (b)When the records of the tax collector show a different
  177  owner of the property in the preceding year’s tax bill, the real
  178  estate licensee must, within 5 business days after entering into
  179  a brokerage relationship with the potential seller of property,
  180  additionally cause a notice to be sent by first-class mail to
  181  the prior owner at the mailing address of the prior owner shown
  182  in the online records of the tax collector. Such notice must be
  183  in substantially the following form:
  184  
  185         (Brokerage letterhead)
  186  
  187         To help prevent real estate fraud and identity theft,
  188         the State of Florida requires us to notify you that
  189         (name of real estate broker) has been engaged by
  190         (potential seller) to market and sell the property you
  191         formerly owned at (address, city, and state). If you
  192         believe this is in error, or still claim an interest
  193         in this property, please notify us immediately at
  194         (phone number and e-mail).
  195  
  196         (2)(a)Failure to comply with this section does not impair
  197  the validity or enforceability of any listing agreement,
  198  purchase and sale agreement, deed, mortgage, or other instrument
  199  or agreement made or delivered in connection with a real estate
  200  sale transaction.
  201         (b)A real estate licensee has no liability to the actual
  202  or claimed owner of a property or a putative purchaser thereof
  203  solely because of his or her failure to comply with this
  204  section. However, any such noncompliance may be introduced as
  205  evidence to establish violations of this chapter or as an
  206  indication of possible fraud, forgery, impersonation, duress,
  207  incapacity, undue influence, illegality, or unconscionability,
  208  or for other evidentiary purposes.
  209         (c)The failure of the actual property owner to respond to
  210  the mailing does not preclude or limit the ability of such owner
  211  to establish possible fraud, forgery, impersonation, duress,
  212  incapacity, undue influence, minority, illegality, or
  213  unconscionability, or any other challenges or defenses to any
  214  real estate transaction, or to limit such owner’s remedy in any
  215  quiet title or declaratory judgment action.
  216         Section 4. Subsection (3) is added to section 626.8411,
  217  Florida Statutes, to read:
  218         626.8411 Application of Florida Insurance Code provisions
  219  to title insurance agents or agencies.—
  220         (3)Section 627.799 applies to title insurance agents and
  221  agencies and to title insurers only to the extent any of the
  222  foregoing are actually engaged in providing closing services for
  223  a particular transaction.
  224         Section 5. Section 627.799, Florida Statutes, is created to
  225  read:
  226         627.799Fraud prevention notice upon opening order.—
  227         (1)(a)To help prevent real estate fraud and identity
  228  theft, within 5 business days after opening an order to ensure a
  229  sale of real property or refinance of a mortgage encumbering
  230  real property, the party scheduled to provide closing services
  231  must cause a notice to be sent by first-class mail to the seller
  232  or borrower at the mailing address of the owner shown in the
  233  online records of the tax collector. Such notice must be in
  234  substantially the following form:
  235  
  236         (Letterhead of closing service provider)
  237  
  238         To help prevent real estate fraud and identity theft,
  239         the State of Florida requires us to notify you that
  240         (name of closing service provider) has been engaged to
  241         (handle the sale of) (coordinate the closing of a
  242         mortgage in favor of (name of lender) secured by) the
  243         property located at (address, city, and state). If you
  244         believe this is in error, please notify us immediately
  245         at (phone number and e-mail).
  246  
  247  The mailing may include a letter thanking the seller or borrower
  248  for selecting the sender and such other additional information
  249  as the sender may deem appropriate.
  250         (b)When the records of the tax collector show a different
  251  owner of the property in the preceding year’s tax bill, the
  252  party to provide closing services must, within 5 business days
  253  after opening an order to ensure a sale of real property or
  254  refinance of a mortgage encumbering real property, additionally
  255  cause a notice to be mailed by first-class mail to the prior
  256  owner at the mailing address of the prior owner shown in the
  257  online records of the tax collector, which notice must be in
  258  substantially the following form:
  259  
  260         (Letterhead of closing service provider)
  261  
  262         To help prevent real estate fraud and identity theft,
  263         the State of Florida requires us to notify you that
  264         (name of closing service provider) has been engaged to
  265         (handle the sale of property) (coordinate the closing
  266         of a mortgage against property) you formerly owned at
  267         (address, city, and state). If you believe this is in
  268         error, or still claim an interest in this property,
  269         please notify us immediately at (phone number and e
  270         mail).
  271  
  272         (c)Separate notice is not required to a borrower who is
  273  acquiring the property and placing the mortgage in the same
  274  closing.
  275         (2)(a)Failure to comply with this section does not impair
  276  the validity or enforceability of any escrow instructions,
  277  purchase and sale agreement, deed, mortgage, or other instrument
  278  or agreement made or delivered in connection with a real estate
  279  transaction.
  280         (b)The closing service provider does not have any
  281  liability to the actual or claimed owner of a property or a
  282  putative purchaser thereof solely because of the failure to
  283  comply with this section. However, any noncompliance may be
  284  introduced as evidence to establish violations of this chapter
  285  or as an indication of possible fraud, forgery, impersonation,
  286  duress, incapacity, undue influence, illegality, or
  287  unconscionability, or for other evidentiary purposes.
  288         (c)The failure of the actual property owner to respond to
  289  the mailing does not preclude or limit the ability of such owner
  290  to establish possible fraud, forgery, impersonation, duress,
  291  incapacity, undue influence, minority, illegality, or
  292  unconscionability or any other challenges or defenses to any
  293  real estate transaction, or to limit such owner’s remedy in any
  294  quiet title or declaratory judgment action.
  295         (d)This section does not alter or limit the obligations of
  296  the title insurer under any title insurance policy issued in
  297  connection with a real estate transaction.
  298         Section 6. Section 689.025, Florida Statutes, is created to
  299  read:
  300         689.025Form of quitclaim deed prescribed.A quitclaim deed
  301  of conveyance to real property or an interest therein must:
  302         (1)Be in substantially the following form:
  303  
  304         This Quitclaim Deed, executed this (date) day of
  305         (month, year), by first party, Grantor (name), whose
  306         post-office address is (address), to second party,
  307         Grantee (name), whose post-office address is
  308         (address).
  309  
  310         Witnesseth, that the said first party, for the sum of
  311         $(amount), and other good and valuable consideration
  312         paid by the second party, the receipt whereof is
  313         hereby acknowledged, does hereby remise, release, and
  314         quitclaim unto the said second party forever, all the
  315         right, title, interest, claim, and demand which the
  316         said first party has in and to the following described
  317         parcel of land, and all improvements and appurtenances
  318         thereto, in (county), Florida:
  319  
  320                         (Legal description)                       
  321  
  322         (2)Include the legal description of the real property the
  323  instrument purports to convey, or in which the instrument
  324  purports to convey an interest, which description must be
  325  legibly printed, typewritten, or stamped thereon.
  326         (3)Include a blank space for the parcel identification
  327  number assigned to the real property the instrument purports to
  328  convey, or in which the instrument purports to convey an
  329  interest, which number, if available, must be entered on the
  330  deed before it is presented for recording. The failure to
  331  include such blank space or the parcel identification number
  332  does not affect the validity of the conveyance or the
  333  recordability of the deed. Such parcel identification number is
  334  not a part of the legal description of the property otherwise
  335  set forth in the instrument and may not be used as a substitute
  336  for the legal description required by this section.
  337         Section 7. Paragraph (c) of subsection (1) of section
  338  695.26, Florida Statutes, is amended to read:
  339         695.26 Requirements for recording instruments affecting
  340  real property.—
  341         (1) No instrument by which the title to real property or
  342  any interest therein is conveyed, assigned, encumbered, or
  343  otherwise disposed of shall be recorded by the clerk of the
  344  circuit court unless:
  345         (c) The name of each witness to the instrument is legibly
  346  printed, typewritten, or stamped upon such instrument
  347  immediately beneath the signature of such witness and the post
  348  office address of each such person is legibly printed,
  349  typewritten, or stamped upon such instrument;
  350         Section 8. This act shall take effect July 1, 2023.