New FinCEN GTOs & Property Information Reports

This week's email is contributed by Melissa Scaletta, Fund VP and Chief Underwriting Counsel. Melissa Murphy is on vacation, but she asked me to share the latest breaking Fund news with you. All of us at The Fund wish the very best to you and your families as we recover from Hurricane Irma.

Dear Members,

This week's email is contributed by Melissa Scaletta, Fund VP and Chief Underwriting Counsel. Melissa Murphy is on vacation, but she asked me to share the latest breaking Fund news with you. All of us at The Fund wish the very best to you and your families as we recover from Hurricane Irma.

FinCEN GTOs

As expected, FinCEN issued its newest Geographic Targeting Orders ("GTOs") on August 22, 2017. The GTOs have an expanded scope and now include wire fund transfer payments within the definition of Covered Transactions requiring reporting for closings occurring on September 22, 2017 through March 20, 2018. PDF Downloads for The Old Republic Geographic Targeting Order as well as FinCEN's related FAQs have been made available.

FinCEN reports that data from 30 percent of the reported transactions collected from February 2016 to March 2017 was linked to individuals who were subjects of previous suspicious activity reports related to suspected illegal activity. One report indicates that 50 percent of the reported transactions in Miami-Dade and Palm Beach Counties during that time were linked to suspicious activity reports.

Reporting obligations are the responsibility of Old Republic and you as its agent. These reporting obligations extend to employees as well. Fund Members are required to complete the mandatory FinCEN Form 8300 for Covered Transactions.

According to the newest GTOs, Covered Transactions in Florida include:

• The purchase of residential real property in Miami-Dade, Broward, or Palm Beach County;
• With a purchase price of $1 million or greater;
• Where the purchaser is a legal entity including a corporation, limited liability company, partnership, or similar business entity (excluding individual purchasers and trusts);
• The purchase is made without a bank loan or similar institutional financing; AND
• The purchaser pays any part of the purchase price using currency, cashier’s check, certified check, traveler’s check, personal check, business check, money order, or fund transfer including WIRE TRANSFER.

Commitments prepared by The Fund for the purchase of residential property located in these three counties for $1 million or more with no indication of a bank loan will include a requirement concerning FinCEN reporting. You are encouraged to contact Fund Underwriting Counsel for assistance in completing the required FinCEN Form 8300 or in making a determination that a particular transaction is not covered. Please contact us for help by calling (800) 432-9594, or emailing underwriting@thefund.com. Please allow The Fund to assist you by reviewing the substantially completed FinCEN Form 8300 in advance of closing.

You are required to email your final FinCEN Form 8300 to The Fund at FinCENinfo@thefund.com within one business day of closing. The final form will be reviewed and forwarded to Old Republic for prompt filing.

For more information about the GTOs and for more detailed instructions on how to complete the FinCEN Form 8300, including collecting required information, please join us for a free webinar on September 20 at 12:00 noon. Register for the webinar.

Property Information Report - Sec. 627.7843, F.S.

The July 6, 2017 General Counsel News discussed HB 359, including the new statutory Property Information Reports. Previously, Sec. 627.7843, F.S., provided for Owners and Encumbrance Reports with a statutory liability maximum of $1,000 per report. The revised statute contains a limitation of liability to be included on the face of the form as follows:

“This report is not title insurance. Pursuant to s. 627.7843, Florida Statutes, the maximum liability of the issuer of this property information report for errors or omissions in this property information report is limited to the amount paid for this property information report, and is further limited to the person(s) expressly identified by name in the property information report as the recipient(s) of the property information report.”

The Fund has implemented this statutory revision within several informational products to permit the application of limitation of liability extending to both The Fund and you, our Fund Members, whenever an order for an informational product provides the name of the intended recipient. When ordering an informational report on TheFund.com or in DoubleTime, specify the recipient of the informational report within “Special Instructions” or by adding a note to the file by emailing OrderEntry@thefund.com. Fund informational products incorporating this liability limitation include:

• Owners & Encumbrance Property Information Report;
• Ownership Property Information Report;
• Environmental Property Information Report;
• Right of Way Property Information Report;
• Plat Property Information Report;
• Miscellaneous Property Information Report;Foreclosure Property Information Report; AND
• Limited Foreclosure Property Information Report.

When no recipient if specified at the time of the order, the property information report will show The Fund as the issuer and the Fund Member placing the order as the recipient. You may request a revision to the property information report including both The Fund and you, the Fund Member, as the issuer and the designated recipient as recipient by sending an email request to OrderEntry@thefund.com or by submitting a note from the order portal of TheFund.com requesting the change and designating the intended recipient. The Fund’s new property information reports will be available beginning September 18.

I hope you have found these updates concerning FinCEN’s GTOs and the statutory property information reports helpful.

Best Regards,

Melissa Scaletta
Vice President and Chief Underwriting Counsel