F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 335 2022
1 A bill to be entitled
2 An act relating to satisfaction of mortgages; amending
3 s. 701.04, F.S.; requiring a mortgagee or servicer of
4 a mortgage to send or cause to be sent an estoppel
5 letter with specified information to certain persons
6 within a specified time; requiring a copy of the
7 instrument showing title in the property or other
8 lawful authorization under certain circumstances;
9 providing requirements for an estoppel letter;
10 prohibiting certain actions by the mortgagee or
11 servicer of the mortgage; authorizing a corrected
12 estoppel letter under certain circumstances; providing
13 that a corrected estoppel letter supersedes any
14 previous estoppel letter under certain circumstances;
15 prohibiting the mortgagee or servicer of the mortgage
16 from denying the accuracy of an estoppel letter;
17 requiring payments received pursuant to an estoppel
18 letter to be applied to any unpaid balance of a
19 mortgage; providing methods for sending a written
20 request for an estoppel letter and for sending the
21 estoppel letter; providing that the mortgagee or
22 servicer of the mortgage is not responsible for the
23 costs of a common carrier delivery service; providing
24 for liability under certain circumstances; authorizing
25 certain damages and attorney fees and costs;
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26 prohibiting punitive damages; requiring the mortgagee
27 or servicer of the mortgage to take certain actions
28 within a specified time after the unpaid balance of a
29 mortgage has been fully paid; providing that certain
30 persons may still be personally liable after recording
31 a satisfaction of a mortgage; amending s. 701.041,
32 F.S.; revising a definition; conforming provisions to
33 changes made by the act; providing an effective date.
34
35 Be It Enacted by the Legislature of the State of Florida:
36
37 Section 1. Section 701.04, Florida Statutes, is amended to
38 read:
39 701.04 Cancellation of mortgages, liens, and judgments.—
40 (1)(a) Within 10 14 days after receipt of the written
41 request of a mortgagor, a record title owner of the property, a
42 fiduciary or trustee lawfully acting on behalf of a record title
43 owner, or any other person lawfully authorized to act on behalf
44 of a mortgagor or record title owner of the property, the
45 mortgagee holder of a mortgage shall deliver or cause the
46 servicer of the mortgage shall send or cause to be sent to
47 deliver to the person making the request at a place designated
48 in the written request an estoppel letter setting forth the
49 unpaid balance of the loan properly due under or secured by the
50 mortgage as of the payoff date specified in the written request .
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51 If the written request is made by a person other than the
52 mortgagor, the request must include a copy of the instrument
53 showing title in the property or other lawful authorization.
54 (a) If the mortgagor, or any person lawfully authorized to
55 act on behalf of the mortgagor, makes the request, the estoppel
56 letter must include an itemization of the principal, interest,
57 and any other charges properly due under or secured by the
58 mortgage and interest on a per-day basis for the unpaid balance.
59 (b) If a record title owner of the property, or any person
60 lawfully authorized to act on behalf of a mortgagor or record
61 title owner of the property, makes the request:
62 1. The request must include a copy of the instrument
63 showing title in the property or lawful authorization.
64 2. The estoppel letter may include the itemization of
65 information required under paragraph (a), but must at a minimum
66 include:
67 1. The total unpaid balance of the loan properly due under
68 or secured by the mortgage as of the payoff date specified in
69 the written request, including an itemization of the principal,
70 interest, and any other charges comprising the unpaid balance on
71 a per-day basis.
72 2. Interest on a per-day basis for the unpaid balance.
73 (c)1. The mortgagee or servicer of the mortgage may not
74 qualify, reserve the right to change, or condition or disclaim
75 the reliance of others on the information provided in the
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76 estoppel letter under paragraph (b), and any attempt to do so is
77 void and unenforceable. However, if the mortgagee or servicer of
78 the mortgage determines that any of the information provided in
79 the estoppel letter under paragraph (b) was understated, the
80 mortgagee or servicer of the mortgage may send a corrected
81 estoppel letter.
82 2. If the mortgagor or record title owner of the property,
83 or any other person lawfully authorized to act on behalf of the
84 mortgagor or record title owner of the property, receives and
85 has a reasonable opportunity to act upon a corrected estoppel
86 letter before making a payment, the corrected estoppel letter
87 supersedes any previous estoppel letter.
88 3. If any of the information provided in the estoppel
89 letter under paragraph (b) was understated, the mortgagee or
90 servicer of the mortgage may not deny the accuracy of such
91 information if a person reasonably and detrimentally relied on
92 that information.
93 (d)3. The mortgagee or servicer of the mortgage mortgagee
94 acting in accordance with a request in substantial compliance
95 with this subsection paragraph is expressly discharged from any
96 obligation or liability to any person on account of the release
97 of the requested information, other than the obligation to
98 comply with the terms of the estoppel letter.
99 (e) The mortgagee or servicer of the mortgage may not
100 refuse to accept or return any payment received in response to
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101 an estoppel letter but must promptly apply such payment to the
102 unpaid balance of the loan properly due under or secured by the
103 mortgage.
104 (f)1. A written request for an estoppel letter under
105 paragraph (a) must be sent to the mortgagee or servicer of the
106 mortgage at the address made available by the mortgagee or
107 servicer of the mortgage for such purpose by first-class mail, a
108 common carrier delivery service, or e-mail or other electronic
109 format or facsimile. The written request is considered received
110 by the mortgagee or servicer of the mortgage:
111 a. Four days after the request, properly addressed with
112 postage prepaid for first-class delivery, is deposited with the
113 United States Postal Service;
114 b. The day the request is delivered by a common carrier
115 delivery service; or
116 c. The day the request is sent by e-mail or other
117 electronic format or facsimile.
118 2. The mortgagee or servicer of the mortgage must send the
119 estoppel letter by first-class mail, a common carrier delivery
120 service, or e-mail or other electronic format or facsimile as
121 directed in the written request. However, the mortgagee or
122 servicer of the mortgage is not required to pay for a common
123 carrier delivery service. If the 10-day period after a written
124 request is received by the mortgagee or servicer of the mortgage
125 ends on a Saturday, Sunday, or legal holiday, the estoppel
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126 letter is considered timely if it is sent by the close of
127 business on the next business day.
128 (g) If a mortgagee or servicer of the mortgage does not
129 timely send the estoppel letter in compliance with this
130 subsection, the mortgagee or servicer of the mortgage is liable
131 to the mortgagor or record title owner of the property, or any
132 other person lawfully authorized to act on behalf of the
133 mortgagor or record title owner of the property, for actual
134 damages caused by such failure plus $500 in statutory damages.
135 Punitive damages may not be awarded in a civil action brought
136 under this paragraph. The prevailing party in a civil action
137 brought under this paragraph is entitled to reasonable attorney
138 fees and costs.
139 (h)(c) Notwithstanding s. 655.059, a mortgagee or servicer
140 of the mortgage holder may provide the financial information
141 required under this subsection to a person authorized under this
142 subsection to request the financial information notwithstanding
143 s. 655.059.
144 (2) Within 60 days after the unpaid balance on a mortgage
145 has been fully paid or has been paid pursuant to an estoppel
146 letter, whichever is earlier, the mortgagee or servicer of the
147 mortgage shall execute in writing an instrument acknowledging
148 satisfaction of the mortgage; have the instrument acknowledged,
149 or proven, and duly entered in the official records of the
150 proper county; and send or cause to be sent the recorded
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151 satisfaction to the mortgagor or record title owner of the
152 property. The recorded satisfaction of the mortgage does not
153 relieve the mortgagor or record title owner of the property, or
154 their successors or assigns, from any personal liability on the
155 loan or other obligations secured by the mortgage. The
156 prevailing party in a civil action brought under this subsection
157 is entitled to reasonable attorney fees and costs.
158 (3)(2) Within 60 days after the unpaid balance Whenever
159 the amount of money due on a any mortgage, lien, or judgment has
160 been fully paid to the person or party entitled to the payment
161 thereof, the mortgagee, creditor, or assignee, or the attorney
162 of record in the case of a judgment, to whom the payment was
163 made, shall execute in writing an instrument acknowledging
164 satisfaction of the mortgage, lien, or judgment; and have the
165 instrument acknowledged, or proven, and duly entered in the
166 official records of the proper county; and. Within 60 days after
167 the date of receipt of the full payment of the mortgage, lien,
168 or judgment, the person required to acknowledge satisfaction of
169 the mortgage, lien, or judgment shall send or cause to be sent
170 the recorded satisfaction to the person or party who has made
171 the full payment. In the case of a civil action arising out of
172 this section, The prevailing party in a civil action brought
173 under this subsection is entitled to reasonable attorney fees
174 and costs.
175 (4)(3) When Whenever a writ of execution has been issued,
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176 docketed, and indexed with a sheriff and the judgment upon which
177 it was issued has been fully paid, it is the responsibility of
178 the party receiving payment to request, in writing, addressed to
179 the sheriff, return of the writ of execution as fully satisfied.
180 Section 2. Paragraph (a) of subsection (1) and subsection
181 (2) of section 701.041, Florida Statutes, are amended to read:
182 701.041 Title insurer; mortgage release certificate. —
183 (1) DEFINITIONS.—For purposes of this section:
184 (a) "Estoppel letter" means a statement of the amount of:
185 1. The unpaid balance of a loan properly due under or
186 secured by a mortgage as of the payoff date specified in the
187 written request, including an itemization of the principal,
188 interest, and any other charges comprising the unpaid balance
189 properly due under or secured by the mortgage.
190 2. Interest on a per-day basis for the unpaid balance.
191 (2) CERTIFICATE OF RELEASE.—An officer or duly appointed
192 agent of a title insurer may, on behalf of a mortgagor or a
193 person who acquired from the mortgagor title to all or a part of
194 the property described in a mortgage, execute a certificate of
195 release that complies with the requirements of this section and
196 record the certificate of release in the real property records
197 of each county in which the mortgage is recorded if a
198 satisfaction or release of the mortgage has not been executed
199 and recorded after the date payment in full of the loan properly
200 due under or secured by the mortgage was made in accordance with
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201 an estoppel letter a payoff statement furnished by the mortgagee
202 or the mortgage servicer of the mortgage.
203 Section 3. This act shall take effect October 1, 2022.
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Statutes affected:
H 335 Filed: 701.04