DFS clarifies title insurance ruling
TALLAHASSEE, Fla. – Feb. 11, 2016 – Florida Realtors received an update on a ruling this week regarding payment of estoppel certificate fees.
Earlier this week, Florida Realtors reported on a Florida Department of Financial Services (DFS) ruling that prepayment for estoppel certificates prepared by community associations – condominiums and HOAs – is an unlawful inducement to the placement of title insurance. The information was included in a letter from the Florida Division of Agent and Agency Services.
However, the DFS clarified its position yesterday in a follow-up letter. According to the latest letter, an advance payment does not constitute an "unlawful rebate" if a title insurance agent and/or agency pays for an estoppel certificate and is reimbursed at closing.
"We are grateful to Florida Chief Financial Officer Jeff Atwater and the DFS for working with Florida Realtors and the Florida Land Title Association on this clarification," says Carrie O'Rourke, vice president of public policy for Florida Realtors.© 2016 Florida Realtors®