New Title Rule May Impact Closings
Yesterday, the Florida Department of Financial Services (DFS), Division of Agent and Agency Services, issued this letter. In it, DFS ruled that “the advanced payment by a title insurance agent and/or agency for an estoppel certificate out of the funds of the agent or agency would be an inducement to title insurance and therefore a violation of the Florida Insurance Code.”
Also, importantly, the DFS believes this prohibition is already included within the rules which govern title and closing agents.
This new interpretation of the rule from the Division of Agent and Agency Services was unexpected. We are monitoring the situation and encourage you to do the same. We will keep you apprised of any new implications that this ruling may have on real estate closings.
– Florida Realtors Office of Public Policy
