Florida Senate - 2023 CS for SB 1436
By the Committee on Judiciary; and Senator Bradley
590-03309-23 20231436c1
1 A bill to be entitled
2 An act relating to real property fraud; creating s.
3 28.47, F.S.; requiring the clerk of the circuit court
4 to create, maintain, and operate an opt-in recording
5 notification service; providing definitions; requiring
6 such clerk to ensure that registration for such
7 service is possible through an electronic registration
8 portal; specifying portal and notification
9 requirements; providing immunity from liability for
10 the clerk; providing construction; providing for
11 applicability of the section to property appraisers;
12 creating s. 65.091, F.S.; clarifying that an action
13 may be brought under ch. 65, F.S., to quiet title
14 after a fraudulent attempted conveyance; requiring the
15 court to quiet title and award certain title and
16 rights under certain circumstances; directing the
17 clerk of the circuit court to provide a simplified
18 complaint form; creating s. 475.5025, F.S.; requiring
19 a real estate licensee to send a fraud prevention
20 notice under specified circumstances; providing form
21 language for such notice; providing for applicability;
22 limiting the liability of a real estate licensee for
23 noncompliance but providing that such noncompliance
24 may be introduced as evidence for certain violations;
25 providing that the failure of a property owner to
26 respond to the notice does not preclude or limit the
27 ability to establish certain challenges or defenses or
28 limit his or her remedy in any quiet title or
29 declaratory judgment action; amending s. 626.8411,
30 F.S.; providing for applicability relating to title
31 insurance agents and agencies and title insurers;
32 creating s. 627.799, F.S.; requiring parties providing
33 real estate transaction closing services to send a
34 fraud prevention notice under specified circumstances;
35 providing form language for such notice; providing for
36 applicability; limiting a closing service provider’s
37 liability for noncompliance but permitting such
38 noncompliance to be introduced as evidence to
39 establish certain violations; providing that the
40 failure of a property owner to respond to the notice
41 does not preclude or limit the ability to establish
42 certain challenges or defenses or limit his or her
43 remedy in any quiet title or declaratory judgment
44 action; providing applicability relating to the title
45 insurer’s obligations; creating s. 689.025, F.S.;
46 prescribing the form for a quitclaim deed; amending s.
47 695.26, F.S.; revising the requirements for recording
48 instruments affecting real property; providing an
49 effective date.
50
51 Be It Enacted by the Legislature of the State of Florida:
52
53 Section 1. Section 28.47, Florida Statutes, is created to
54 read:
55 28.47 Recording notification service.—
56 (1) On or before July 1, 2024, each clerk of the circuit
57 court must create, maintain, and operate a free recording
58 notification service which is open to all persons wishing to
59 register for the service. For purposes of this section, the
60 term:
61 (a) “Land record” means a deed, mortgage, or other document
62 purporting to convey or encumber real property.
63 (b) “Monitored identity” means a personal or business name
64 or a parcel identification number submitted by a registrant for
65 monitoring under a recording notification service.
66 (c) “Recording notification” means a notification sent by
67 electronic mail indicating to a registrant that a land record
68 associated with the registrant’s monitored identity has been
69 recorded in the public records of the county.
70 (d) “Recording notification service” means a service which
71 sends automated recording notifications.
72 (e) “Registrant” means a person who registers for a
73 recording notification service.
74 (2) The clerk must ensure that registration for the
75 recording notification service is possible through an electronic
76 registration portal, which portal must:
77 (a) Be accessible through a direct link on the home page of
78 the clerk’s official public website;
79 (b) Allow a registrant to subscribe to receive recording
80 notifications for at least five monitored identities per valid
81 electronic mail address provided;
82 (c) Include a method by which a registrant may unsubscribe
83 from the service;
84 (d) List a phone number at which the clerk’s office may be
85 contacted during normal business hours with questions related to
86 the service; and
87 (e) Send an automated electronic mail message to a
88 registrant confirming his or her successful registration for or
89 action to unsubscribe from the service, which message must
90 identify each monitored identity for which a subscription was
91 received or canceled.
92 (3) When a land record is recorded for a monitored
93 identity, a recording notification must be sent within 24 hours
94 after the recording to each registrant who is subscribed to
95 receive recording notifications for that monitored identity.
96 Such notification must contain, at a minimum:
97 (a) Information identifying the monitored identity for
98 which the land record was filed;
99 (b) The land record’s recording date;
100 (c) The official record book and page number or instrument
101 number assigned to the land record by the clerk;
102 (d) Instructions for electronically searching for and
103 viewing the land record using the assigned official record book
104 and page number or instrument number; and
105 (e) A phone number at which the clerk’s office may be
106 contacted during normal business hours with questions related to
107 the recording notification.
108 (4) There is no right or cause of action against, and no
109 civil liability on the part of, the clerk with respect to the
110 creation, maintenance, or operation of a recording notification
111 service as required by this section.
112 (5) Nothing in this section may be construed to require the
113 clerk to provide or allow access to a record or information
114 which is confidential and exempt from s. 119.07(1) and s. 24(a),
115 Art. I of the State Constitution or to otherwise violate the
116 public records laws of this state.
117 (6) This section shall also apply to county property
118 appraisers that adopt an electronic land record notification
119 service.
120 (a) The property appraiser may adopt a verification process
121 for persons wishing to register for the electronic land records
122 notification service to ensure integrity of the process.
123 (b) For purposes of this subsection only, and
124 notwithstanding the provisions in paragraph (1)(a) and
125 subsection (3):
126 1. “Land record” means a deed or other document, purporting
127 to convey real property.
128 2. When a land record is recorded for a monitored identity,
129 a recording notification must be sent to each registrant who is
130 subscribed to receive recording notifications for that monitored
131 identity within 24 hours of the instrument being reflected on
132 the county tax roll by the property appraiser.
133 Section 2. Section 65.091, Florida Statutes, is created to
134 read:
135 65.091 Quieting title; fraudulent conveyances.—
136 (1) An action to quiet title based on a fraudulent
137 attempted conveyance allegation may be maintained under this
138 chapter, and this remedy is cumulative to other existing
139 remedies. A petitioner bringing an action to quiet title based
140 on such allegations is entitled to summary procedure under s.
141 51.011, and the court shall advance the cause on the calendar.
142 (2) In an action to quiet title, when the court determines
143 that an attempt was made to fraudulently convey the land at
144 issue away from a plaintiff who had legal title to the land
145 before the conveyance, the court must quiet title in and award
146 the plaintiff with the same title and rights to the land that
147 the plaintiff enjoyed before the attempted conveyance.
148 (3) The clerk of the circuit court must provide a
149 simplified form for the filing of a complaint to quiet title
150 based on a fraudulent attempted conveyance allegation and
151 instructions for completing such form.
152 Section 3. Section 475.5025, Florida Statutes, is created
153 to read:
154 475.5025 Fraud prevention notice on listing.—
155 (1)(a) To help prevent real estate fraud and identity
156 theft, within 5 business days after entering into a brokerage
157 relationship with the potential seller of property, the real
158 estate licensee must cause a notice to be sent by first-class
159 mail to the potential seller at the mailing address of the owner
160 shown in the online records of the tax collector. Such notice
161 must be in substantially the following form:
162
163 (Brokerage letterhead)
164
165 To help prevent real estate fraud and identity theft,
166 the State of Florida requires us to notify you that
167 (name of real estate broker) has been engaged by
168 (potential seller) to market and sell the property at
169 (address, city, and state). If you believe this is in
170 error, please notify us immediately at (phone number
171 and e-mail).
172
173 The notice may include a letter thanking the potential seller
174 for the listing and such other additional information as the
175 licensee may deem appropriate.
176 (b) When the records of the tax collector show a different
177 owner of the property in the preceding year’s tax bill, the real
178 estate licensee must, within 5 business days after entering into
179 a brokerage relationship with the potential seller of property,
180 additionally cause a notice to be sent by first-class mail to
181 the prior owner at the mailing address of the prior owner shown
182 in the online records of the tax collector. Such notice must be
183 in substantially the following form:
184
185 (Brokerage letterhead)
186
187 To help prevent real estate fraud and identity theft,
188 the State of Florida requires us to notify you that
189 (name of real estate broker) has been engaged by
190 (potential seller) to market and sell the property you
191 formerly owned at (address, city, and state). If you
192 believe this is in error, or still claim an interest
193 in this property, please notify us immediately at
194 (phone number and e-mail).
195
196 (2)(a) Failure to comply with this section does not impair
197 the validity or enforceability of any listing agreement,
198 purchase and sale agreement, deed, mortgage, or other instrument
199 or agreement made or delivered in connection with a real estate
200 sale transaction.
201 (b) A real estate licensee has no liability to the actual
202 or claimed owner of a property or a putative purchaser thereof
203 solely because of his or her failure to comply with this
204 section. However, any such noncompliance may be introduced as
205 evidence to establish violations of this chapter or as an
206 indication of possible fraud, forgery, impersonation, duress,
207 incapacity, undue influence, illegality, or unconscionability,
208 or for other evidentiary purposes.
209 (c) The failure of the actual property owner to respond to
210 the mailing does not preclude or limit the ability of such owner
211 to establish possible fraud, forgery, impersonation, duress,
212 incapacity, undue influence, minority, illegality, or
213 unconscionability, or any other challenges or defenses to any
214 real estate transaction, or to limit such owner’s remedy in any
215 quiet title or declaratory judgment action.
216 Section 4. Subsection (3) is added to section 626.8411,
217 Florida Statutes, to read:
218 626.8411 Application of Florida Insurance Code provisions
219 to title insurance agents or agencies.—
220 (3) Section 627.799 applies to title insurance agents and
221 agencies and to title insurers only to the extent any of the
222 foregoing are actually engaged in providing closing services for
223 a particular transaction.
224 Section 5. Section 627.799, Florida Statutes, is created to
225 read:
226 627.799 Fraud prevention notice upon opening order.—
227 (1)(a) To help prevent real estate fraud and identity
228 theft, within 5 business days after opening an order to ensure a
229 sale of real property or refinance of a mortgage encumbering
230 real property, the party scheduled to provide closing services
231 must cause a notice to be sent by first-class mail to the seller
232 or borrower at the mailing address of the owner shown in the
233 online records of the tax collector. Such notice must be in
234 substantially the following form:
235
236 (Letterhead of closing service provider)
237
238 To help prevent real estate fraud and identity theft,
239 the State of Florida requires us to notify you that
240 (name of closing service provider) has been engaged to
241 (handle the sale of) (coordinate the closing of a
242 mortgage in favor of (name of lender) secured by) the
243 property located at (address, city, and state). If you
244 believe this is in error, please notify us immediately
245 at (phone number and e-mail).
246
247 The mailing may include a letter thanking the seller or borrower
248 for selecting the sender and such other additional information
249 as the sender may deem appropriate.
250 (b) When the records of the tax collector show a different
251 owner of the property in the preceding year’s tax bill, the
252 party to provide closing services must, within 5 business days
253 after opening an order to ensure a sale of real property or
254 refinance of a mortgage encumbering real property, additionally
255 cause a notice to be mailed by first-class mail to the prior
256 owner at the mailing address of the prior owner shown in the
257 online records of the tax collector, which notice must be in
258 substantially the following form:
259
260 (Letterhead of closing service provider)
261
262 To help prevent real estate fraud and identity theft,
263 the State of Florida requires us to notify you that
264 (name of closing service provider) has been engaged to
265 (handle the sale of property) (coordinate the closing
266 of a mortgage against property) you formerly owned at
267 (address, city, and state). If you believe this is in
268 error, or still claim an interest in this property,
269 please notify us immediately at (phone number and e
270 mail).
271
272 (c) Separate notice is not required to a borrower who is
273 acquiring the property and placing the mortgage in the same
274 closing.
275 (2)(a) Failure to comply with this section does not impair
276 the validity or enforceability of any escrow instructions,
277 purchase and sale agreement, deed, mortgage, or other instrument
278 or agreement made or delivered in connection with a real estate
279 transaction.
280 (b) The closing service provider does not have any
281 liability to the actual or claimed owner of a property or a
282 putative purchaser thereof solely because of the failure to
283 comply with this section. However, any noncompliance may be
284 introduced as evidence to establish violations of this chapter
285 or as an indication of possible fraud, forgery, impersonation,
286 duress, incapacity, undue influence, illegality, or
287 unconscionability, or for other evidentiary purposes.
288 (c) The failure of the actual property owner to respond to
289 the mailing does not preclude or limit the ability of such owner
290 to establish possible fraud, forgery, impersonation, duress,
291 incapacity, undue influence, minority, illegality, or
292 unconscionability or any other challenges or defenses to any
293 real estate transaction, or to limit such owner’s remedy in any
294 quiet title or declaratory judgment action.
295 (d) This section does not alter or limit the obligations of
296 the title insurer under any title insurance policy issued in
297 connection with a real estate transaction.
298 Section 6. Section 689.025, Florida Statutes, is created to
299 read:
300 689.025 Form of quitclaim deed prescribed.—A quitclaim deed
301 of conveyance to real property or an interest therein must:
302 (1) Be in substantially the following form:
303
304 This Quitclaim Deed, executed this (date) day of
305 (month, year), by first party, Grantor (name), whose
306 post-office address is (address), to second party,
307 Grantee (name), whose post-office address is
308 (address).
309
310 Witnesseth, that the said first party, for the sum of
311 $(amount), and other good and valuable consideration
312 paid by the second party, the receipt whereof is
313 hereby acknowledged, does hereby remise, release, and
314 quitclaim unto the said second party forever, all the
315 right, title, interest, claim, and demand which the
316 said first party has in and to the following described
317 parcel of land, and all improvements and appurtenances
318 thereto, in (county), Florida:
319
320 (Legal description)
321
322 (2) Include the legal description of the real property the
323 instrument purports to convey, or in which the instrument
324 purports to convey an interest, which description must be
325 legibly printed, typewritten, or stamped thereon.
326 (3) Include a blank space for the parcel identification
327 number assigned to the real property the instrument purports to
328 convey, or in which the instrument purports to convey an
329 interest, which number, if available, must be entered on the
330 deed before it is presented for recording. The failure to
331 include such blank space or the parcel identification number
332 does not affect the validity of the conveyance or the
333 recordability of the deed. Such parcel identification number is
334 not a part of the legal description of the property otherwise
335 set forth in the instrument and may not be used as a substitute
336 for the legal description required by this section.
337 Section 7. Paragraph (c) of subsection (1) of section
338 695.26, Florida Statutes, is amended to read:
339 695.26 Requirements for recording instruments affecting
340 real property.—
341 (1) No instrument by which the title to real property or
342 any interest therein is conveyed, assigned, encumbered, or
343 otherwise disposed of shall be recorded by the clerk of the
344 circuit court unless:
345 (c) The name of each witness to the instrument is legibly
346 printed, typewritten, or stamped upon such instrument
347 immediately beneath the signature of such witness and the post
348 office address of each such person is legibly printed,
349 typewritten, or stamped upon such instrument;
350 Section 8. This act shall take effect July 1, 2023.