Fund News

As part of the closing process, once a Fund Member has received a contract to conduct a closing and issue title insurance policies, the lender involved may request confirmation that the Fund Member, also referred to as the Closing Agent, is in good standing with their title insurance underwriter. This letter is commonly referred to as an Authorized Agent Letter. This article describes the Authorized Agent Letter and, if requested, how a Fund Member may obtain it. The request for an Authorized Agent Letter serves as a good reminder of the duties and responsibilities of Fund Members as title agents. This article also reviews some related best practices and procedures. Following the best practices ensures the proper measures are being taken during a transaction to help prevent any instances of fraud or a cloud on title from occurring.  
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Generally, creditors have no recourse against a business owner for the debts of the business so long as corporate formalities, such as separate books and records, separate bank accounts, and proper capitalization, are followed. The corporate entity form is supposed to protect its owners from such liability. That protection is often referred to as “the corporate veil.” But if the company is merely an alter ego of the individual owners, and that alter ego was used to commit fraud, courts will permit creditors to disregard the legal separateness of the business entity from its principals and “pierce the corporate veil.”

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Florida’s homestead laws have been compared by legal scholars and courts to a chameleon “which changes color to accord with the background against which it is viewed.” Crosby and Miller, “Our Legal Chameleon: The Florida Homestead Exemption,” 2 U. Fla. L. Rev. 12 (1949). This article summarizes the 2022 reported state and federal case sightings of the Florida homestead laws, its “legal chameleon.” 

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There is little to argue that since its inception in Florida in January 2020, remote online notarization (RON) has been a resounding success. Certainly, the 2020 pandemic propelled the use of RON to heights likely unimagined by lawmakers, closing agents, or even the RON companies themselves, but regardless of its impetus, there are now over 5,000 registered online notaries in Florida with access to an ever-growing number of RON platforms. Online notaries report to The Fund that the platforms are improving incrementally, bettering the RON-signing session for all involved. Florida online notaries routinely e-record deeds signed by people the world over, avoiding the stresses of mail-away closings and sourcing local notaries. 

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The dynamically evolving nature of the real estate industry is always impacted by foreclosures. Due to federal and state level moratoria in place to assist distressed homeowners during the pandemic, there was a significant decrease in foreclosures in Florida and throughout the country. As we approach a return to normalcy, we expect to see mortgage foreclosures and other small-lien foreclosures rise to pre-pandemic levels. According to an early 2022 study completed by a real estate analyst company, the state with the highest number of foreclosures was California, with Florida tailgating behind and taking second place. Now more than ever, it is important to understand the foreclosure process and how that affects the foreclosure commitment. 

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On Oct. 3, 2022, pursuant to authorization from Florida’s Office of Insurance Regulation (OIR), title insurers in Florida began using the new 2021 ALTA Policy Forms with Florida Modifications (2021 Policy Forms). This article focuses on the most significant changes to the 2021 Commitment and Policy Schedules.

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The Fund, through Old Republic, is pleased to announce the availability of our Authorized Agent Program.  This program, in conjunction with our Members' efforts to comply with the American Land Title Association's Best Practices, should provide lenders, clients, customers and consumers additional confidence and comfort that the title settlement transactions you process are done the right way, with integrity and ethics.

The Fund is pleased to announce that the Florida Office of Insurance Regulation has approved the ALTA 2021 Commitment, Policies, and fifteen new or amended endorsements (the 2021 Forms) for use in the State of Florida effective October 3, 2022. The 2021 Forms are the next generation of insuring forms. Read the article

Read the Concept Article, Stay Tuned, ALTA 2021 Policy Forms are Coming Soon, for helpful information.

Commercial mortgages are rarely recorded without a corresponding UCC-1 financing statement (UCC-1). In addition to the real property, commercial lenders often require additional collateral as consideration for making the loan. A UCC-1 is required to establish the lender as a secured party and perfect the lender’s security interest in that other collateral. Perfection establishes the order of priority of claims of multiple creditors with a secured interest in the same collateral; i.e., who gets paid first in the event that the borrower defaults and there is a forced sale of the collateral.  Read the article