FinCEN Update, 1099-S and ALTA License Fees

General Counsel News: FinCEN Update, 1099-S & ALTA License FeesCurrent GTO to expire tomorrow; ALTA emails not a scam.

Geographic Targeting Order Update: How time flies! The current FinCEN Geographic Targeting Orders (GTO) will expire on February 23, 2017. Old Republic Title has not received a GTO to extend this period. Transactions closing through February 23, 2017, and meeting the requirements of the current GTO must be reported within 30 days of the closing. There are currently no requirements to obtain and report information required by a GTO for transactions closing on or after February 24, 2017.

REMINDER: The current GTO applies to transactions in Miami-Dade, Broward and Palm Beach Counties.

Old Republic Title will continue to review this matter with FinCEN. I will keep you advised if a new GTO is issued and any new details it may contain. Thank you for your cooperation in learning and executing this new rule and procedure!

1099-S: We have been presented with some good questions about sending out the correct 1099-S form for transactions in 2017. A recurring question has to do with seller signatures on the form. The IRS does not require a signature on the 1099-S and therefore the IRS form does not contain a signature block. We added signatures to the form in DoubleTime to allow Members to more easily document receipt of the form by the seller.

There is no requirement that you have a signed 1099-S in your file – you can decide whether you want to ask the seller to sign and return the form. Either way, we suggest that you document your file in some way to show that the correct form was mailed (do a memo to the file or do a cover letter to the seller and retain a copy of the cover letter).

ALTA License Fees: Many of you have asked me about letters/emails you have received from the American Land Title Association regarding the requirement for a forms licensing fee. These emails are not a scam! Title insurance policy forms, including jackets and endorsements, are copyrighted by ALTA and as the copyright holder, they have determined they would like to be paid for the use of the forms. The ALTA policy forms license is not included as part of your Fund Membership. In order to obtain the forms license, title agents must do one of the following:

• Join ALTA – The forms license is a benefit of membership.
• Pay the $195 annual forms license fee.
• Obtain an Occasional Use Waiver from ALTA. The Occasional Use waiver is available for agents who issued 50 or fewer title insurance policies in the prior calendar year. The waiver must be applied for and renewed every year. It can be applied for here.

In my opinion, the benefits of ALTA are worth the investment in an annual membership so I would encourage you to join. If you have questions about the license requirement, here is a link to a helpful FAQ.

Let me know how we can help you.

Best Regards,

MELISSA JAY MURPHY
Senior Vice President and General Counsel