| 1 | A bill to be entitled |
| 2 | An act relating to escrow agents; creating s. 501.165, |
| 3 | F.S.; prohibiting unauthorized persons from transacting |
| 4 | business using the term "escrow" in a name or a title |
| 5 | under certain circumstances; providing a definition; |
| 6 | authorizing certain persons to bring an action for |
| 7 | declaratory relief or an injunction for certain purposes; |
| 8 | providing for recovery by injured persons of actual |
| 9 | damages plus attorney fees and court costs in certain |
| 10 | actions; providing criminal penalties; providing an |
| 11 | effective date. |
| 12 |
|
| 13 | Be It Enacted by the Legislature of the State of Florida: |
| 14 |
|
| 15 | Section 1. Section 501.165, Florida Statutes, is created |
| 16 | to read: |
| 17 | 501.165 Escrow business by unauthorized persons; use of |
| 18 | name.-- |
| 19 | (1) A person, other than a person who is specifically |
| 20 | authorized under the laws of this state to act as an escrow |
| 21 | agent in this state and is acting within the scope of that |
| 22 | authority, may not: |
| 23 | (a) Transact business under any name or title that |
| 24 | contains the word "escrow" or words of similar import; or |
| 25 | (b)1. Use any name, word, sign, symbol, or device in any |
| 26 | context or in any manner; or |
| 27 | 2. Circulate or use any letterhead, billhead, circular, |
| 28 | paper, or writing of any kind or otherwise advertise or |
| 29 | represent in any manner, |
| 30 | |
| 31 | that indicates or reasonably implies that the business being |
| 32 | conducted or advertised is the kind or character of business |
| 33 | transacted that is regulated by this state as an escrow agent. |
| 34 | (2) For purposes of this section, the term "escrow agent" |
| 35 | means only: |
| 36 | (a) A savings and loan association, bank, trust company, |
| 37 | or other financial institution, any of which must be located in |
| 38 | this state and any of which must have a net worth in excess of |
| 39 | $5 million; |
| 40 | (b) An attorney who is a member of The Florida Bar or his |
| 41 | or her law firm; |
| 42 | (c) A real estate broker who is licensed pursuant to |
| 43 | chapter 475 or his or her brokerage firm; or |
| 44 | (d) A title insurance agent who is licensed pursuant to s. |
| 45 | 626.8417, a title insurance agency that is licensed pursuant to |
| 46 | s. 626.8418, or a title insurer who is authorized to transact |
| 47 | business in this state pursuant to s. 624.401. |
| 48 | (3) Any person aggrieved by a violation of this section |
| 49 | may bring an action in a court of competent jurisdiction to: |
| 50 | (a) Obtain a declaratory judgment that an act or practice |
| 51 | violates this section; or |
| 52 | (b) Enjoin any person who has violated, is violating, or |
| 53 | is otherwise likely to violate this section. |
| 54 | (4) In any action brought by a person who has suffered a |
| 55 | loss as a result of a violation of this section, such person may |
| 56 | recover actual damages, plus attorney's fees and court costs. |
| 57 | (5) Any person who willfully violates this section commits |
| 58 | a misdemeanor of the first degree, punishable as provided in s. |
| 59 | 775.082, s. 775.083, or s. 775.084. |
| 60 | Section 2. This act shall take effect July 1, 2008. |