Florida Senate - 2020                                     SB 802
       By Senator Perry
       8-00266B-20                                            2020802__
    1                        A bill to be entitled                      
    2         An act relating to the Marketable Record Title Act;
    3         amending s. 712.03, F.S.; revising rights that are not
    4         affected or extinguished by marketable record titles;
    5         amending s. 712.04, F.S.; revising what types of
    6         interests are extinguished by a marketable record
    7         title; providing construction; creating s. 712.065,
    8         F.S.; defining the term “discriminatory restriction”;
    9         providing that discriminatory restrictions are
   10         unlawful, unenforceable, and declared null and void;
   11         providing that certain discriminatory restrictions are
   12         extinguished and severed from recorded title
   13         transactions; specifying that the recording of certain
   14         notices does not reimpose or preserve a discriminatory
   15         restriction; providing requirements for a parcel owner
   16         to remove a discriminatory restriction from a covenant
   17         or restriction; authorizing a property owner to apply
   18         to the Department of Economic Opportunity for a
   19         written determination relating to certain
   20         discriminatory restrictions; specifying that recording
   21         such determination does not constitute a title
   22         transaction occurring after the root of title;
   23         amending s. 712.12, F.S.; revising the definition of
   24         the term “covenant or restriction”; providing
   25         applicability; requiring persons with certain
   26         interests in land which may be extinguished by this
   27         act to file a specified notice to preserve such
   28         interests; providing a directive to the Division of
   29         Law Revision; providing an effective date.
   31  Be It Enacted by the Legislature of the State of Florida:
   33         Section 1. Subsection (1) of section 712.03, Florida
   34  Statutes, is amended to read:
   35         712.03 Exceptions to marketability.—Such marketable record
   36  title shall not affect or extinguish the following rights:
   37         (1) Estates or interests, easements and use restrictions
   38  disclosed by and defects inherent in the muniments of title on
   39  which said estate is based beginning with the root of title,;
   40  provided, however, that in the muniments of title those estates,
   41  interests, easements, or use restrictions created before the
   42  root of title are preserved by identification in the legal
   43  description of the property by specific reference to the
   44  official records book and page number, instrument number, or
   45  plat name or there is otherwise an affirmative statement in a
   46  muniment of title to preserve such estates, interests,
   47  easements, or use restrictions created before the root of title
   48  as identified by the official records book and page or
   49  instrument number a general reference in any of such muniments
   50  to easements, use restrictions or other interests created prior
   51  to the root of title shall not be sufficient to preserve them
   52  unless specific identification by reference to book and page of
   53  record or by name of recorded plat be made therein to a recorded
   54  title transaction which imposed, transferred or continued such
   55  easement, use restrictions or other interests; subject, however,
   56  to the provisions of subsection (5).
   57         Section 2. Section 712.04, Florida Statutes, is amended to
   58  read:
   59         712.04 Interests extinguished by marketable record title.
   60  Subject to s. 712.03, a marketable record title is free and
   61  clear of all estates, interests, claims, covenants,
   62  restrictions, or charges, the existence of which depends upon
   63  any act, title transaction, event, zoning requirement, building
   64  or development permit, or omission that occurred before the
   65  effective date of the root of title. Except as provided in s.
   66  712.03, all such estates, interests, claims, covenants,
   67  restrictions, or charges, however denominated, whether they are
   68  or appear to be held or asserted by a person sui juris or under
   69  a disability, whether such person is within or without the
   70  state, natural or corporate, or private or governmental, are
   71  declared to be null and void. However, this chapter does not
   72  affect any right, title, or interest of the United States,
   73  Florida, or any of its officers, boards, commissions, or other
   74  agencies reserved in the patent or deed by which the United
   75  States, Florida, or any of its agencies parted with title. This
   76  section may not be construed to alter or invalidate a zoning
   77  ordinance, land development regulation, building code, or other
   78  law or regulation to the extent it operates independently of
   79  matters recorded in the official records.
   80         Section 3. Section 712.065, Florida Statutes, is created to
   81  read:
   82         712.065 Extinguishment of discriminatory restrictions.—
   83         (1)As used in this section, the term “discriminatory
   84  restriction” means a provision in a title transaction recorded
   85  in this state which restricts the ownership, occupancy, or use
   86  of any real property in this state by any natural person on the
   87  basis of a characteristic that has been held, or is held after
   88  the effective date of this act, by the United States Supreme
   89  Court or the Florida Supreme Court to be protected against
   90  discrimination under the Fourteenth Amendment to the United
   91  States Constitution or under s. 2, Art. I of the State
   92  Constitution, including race, color, national origin, religion,
   93  gender, or physical disability.
   94         (2)A discriminatory restriction is not enforceable in this
   95  state, and all discriminatory restrictions contained in any
   96  title transaction recorded in this state are unlawful, are
   97  unenforceable, and are declared null and void. Any
   98  discriminatory restriction contained in a previously recorded
   99  title transaction is extinguished and severed from the recorded
  100  title transaction and the remainder of the title transaction
  101  remains enforceable and effective. The recording of any notice
  102  preserving or protecting interests or rights pursuant to s.
  103  712.06 does not reimpose or preserve any discriminatory
  104  restriction that is extinguished under this section.
  105         (3)Upon request of a parcel owner, a discriminatory
  106  restriction appearing in a covenant or restriction affecting the
  107  parcel may be removed from the covenant or restriction by an
  108  amendment approved by a majority vote of the board of directors
  109  of the respective property owners’ association, notwithstanding
  110  any other requirements for approval of an amendment of the
  111  covenant or restriction. Unless the amendment also changes other
  112  provisions of the covenant or restriction, the recording of an
  113  amendment removing a discriminatory restriction does not
  114  constitute a title transaction occurring after the root of title
  115  for purposes of s. 712.03(4).
  116         (4)Any property owner may apply to the Department of
  117  Economic Opportunity for a written determination that a
  118  particular discriminatory restriction appearing in a previous
  119  title transaction for the property is within the scope of this
  120  section and is extinguished by this section. The recording of
  121  any such written determination does not constitute a title
  122  transaction occurring after the root of title for purposes of s.
  123  712.03(4).
  124         Section 4. Paragraph (b) of subsection (1) of section
  125  712.12, Florida Statutes, is amended to read:
  126         712.12 Covenant or restriction revitalization by parcel
  127  owners not subject to a homeowners’ association.—
  128         (1) As used in this section, the term:
  129         (b) “Covenant or restriction” means any agreement or
  130  limitation imposed by a private party and not required by a
  131  governmental agency as a condition of a development permit, as
  132  defined in s. 163.3164, which is contained in a document
  133  recorded in the public records of the county in which a parcel
  134  is located and which subjects the parcel to any use restriction
  135  that may be enforced by a parcel owner.
  136         Section 5. The amendments to ss. 712.03, 712.04, and
  137  712.12, Florida Statutes, in this act are intended to clarify
  138  existing law, are remedial in nature, and apply to all estates,
  139  interests, claims, covenants, restrictions, and charges, whether
  140  imposed or accepted before, on, or after the effective date of
  141  this act.
  142         Section 6. A person with an interest in land which may
  143  potentially be extinguished by this act, and whose interest has
  144  not been extinguished before July 1, 2020, must file a notice
  145  pursuant to s. 712.06, Florida Statutes, by July 1, 2021, to
  146  preserve such interest.
  147         Section 7. The Division of Law Revision is directed to
  148  replace the phrase “the effective date of this act” wherever it
  149  occurs in this act with the date the act becomes a law.
  150         Section 8. This act shall take effect upon becoming a law.