Estoppel, MRTA and Homestead Exemption

Dear Members,

Following a contentious, and unusual, conclusion to the 2015 Session, this year seems to be moving at a rapid pace. The Attorneys’ Title Fund Services (ATFS) legislative counsel Greg Black, of Metz, Husband and Daughton, PA in Tallahassee, reports that there has been a flurry of activity in the first two weeks of the 2016 Legislative Session. During the first week, the House and Senate quickly acted to pass priority legislation out of each chamber relating to children with unique abilities and a statewide water policy. The Governor signed both pieces of legislation with Speaker Crisafulli, President Gardiner and a number of influential legislators and stakeholders this past Thursday during the second week of Session.

In addition to the issues discussed below that are being monitored for ATFS and the real estate industry, we keep track of all filed legislation, amendments and presentations. Approximately 1800 bills were filed this year, lower than average, and the House and Senate are quickly moving as many pieces of legislation as possible. There are a number of controversial proposals and there is no doubt that citizens are actively involved in state government and policy issues impacting their personal and professional lives. There was an almost festival-like feel in the Capitol and on Adams Street last week as thousands visited to advocate on certain issues. Visitors thus far have ranged from the Cattlemen and tourism officials to students and education advocates, including Martin Luther King III, discussing specific issues and lobbying legislators.

ATFS continues to actively work on priority legislation and be an influential voice on proposals impacting the industry. Below are a few specific bills to give a quick glimpse of the issues and concerns we are actively supporting or proposals we are working to amend and refine to better help our Members.

Estoppel certificate (HB 203 and SB 722): These are companion bills that revise the process for providing estoppel certificates under Chapters 718 and 720, provide a required response time, establish the effective period and designate the amount of the fee that can be charged. The bills are not identical, and those differences will need to be worked out before the bill can be passed into law. Florida Land Title Association is leading the way on these bills with support from various underwriters and other related industry groups. There is strong opposition from the Community Manager groups, so this bill is not a “done deal.” At the appropriate point, I will strongly urge you to reach out to your elected representatives and ask them to support this bill.

MRTA/Covenant Exemptions: CS/HB7031 creates a new exception to the coverage of the Marketable Record Title Act so that certain covenants of a mandatory property owners association are not eliminated by MRTA. Underwriters and members of RPPTL are offering technical assistance.

Homestead Tax Exemption Fraud: HB1201 and SB1324 are similar bills that authorize a Property Appraiser to hire third party contractors to audit and investigate homestead exemption claims by property owners. There are also provisions that establish a lien for any additional taxes assessed. We are closely reviewing that language.

There are a dozen more that I could list but will wait until we see which of those gets further along in the process. Stay tuned for more information as the Legislative Session proceeds.

Best Regards,

Melissa Jay Murphy
Senior Vice President and
General Counsel