New FREC Form
In the midst of Florida’s bustling real estate market, a new mandate took center stage with the signing of Ch. No. 2023-33 (Senate Bill 264). This legislation, effective July 1, 2023, placed restrictions and regulations on the sale, purchase, and ownership of certain properties in Florida by foreign entities. However, a significant challenge emerged regarding the awareness and enforcement of these regulations among realtors and title companies.
Unlike traditional title-related requirements, compliance with Ch. No. 2023-33 falls squarely within the purview of realtors, as mandated by the Florida Real Estate Commission (FREC). As such, it is the responsibility of real estate agents to ensure that buyers adhere to the requirements outlined in the legislation. This entails obtaining a notarized document from all buyers, affirming their compliance with the regulations governing property transactions involving foreign entities.
What You Need to Know
The implications of this mandate reverberate throughout the closing process, introducing several key considerations:
Notarization Requirement: All buyers must have the Affidavit pertaining to Ch. No. 2023-33 notarized, rendering electronic closing options via DocuSign untenable. This necessitates in-person signing and notarization, adding an additional layer of complexity to the closing process.
Access to Notary Services: In cases where buyers are unable to locate a notary, options such as mobile notaries or Remote Online Notarization (RON) services may be utilized. However, these services incur fees, which cash buyers may not be accustomed to paying.
Varying Practices among Title Companies: Despite the mandate outlined by FREC, not all title companies are ensuring the signing of the required document at closing. This variance in practice underscores the importance of due diligence when selecting a title company, as adherence to regulatory requirements may vary.
Altered Documents: Some title companies are reportedly altering the FREC Affidavit to remove the notary requirement, contravening regulations and exposing real estate agents to potential liability. Such alterations create ambiguity and undermine the integrity of the closing process, highlighting the need for vigilance when engaging with title companies.
Given the complexity of navigating these regulatory requirements, it is imperative for real estate professionals and stakeholders to stay informed. Choosing a reputable title company with a demonstrated commitment to compliance can mitigate risks and ensure a smooth closing process that adheres to regulatory standards. As Florida’s real estate market continues to evolve, proactive measures and informed decision-making are essential for safeguarding the interests of all parties involved.
How We Help
At The Title Link, our agents’ and clients’ protection is our top priority. We understand the significance of Ch. No. 2023-33 and are committed to upholding its provisions in every transaction. As a result, we not only protect our agents and clients from potential risks but also help to foster a culture of integrity and transparency within the industry.
THIS NOTICE IS NOT INTENDED TO PROVIDE LEGAL ADVICE. PERSONS WHO ARE OR MAY BE DEFINED AS “FOREIGN PRINCIPALS OF FOREIGN COUNTRIES OF CONCERN” SHOULD CONSULT WITH AN ATTORNEY BEFORE PURCHASING OR ACQUIRING ANY INTEREST IN REAL PROPERTY IN FLORIDA ON OR AFTER JULY 1, 2023. LAND ACQUIRED IN VIOLATION OF THIS LAW MAY BE FORFEITED TO THE STATE.
Please let us know if you have any questions or concerns and we will be happy to help. Email info@thetitlelink.com or call 239-423-LINK (5465)
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