Transfer Fee Covenants.

In many older developments, and even in some new ones, the developer placed a “transfer fee covenant” in the restrictions which allows the developer, in perpetuity, to receive a “transfer fee” each and every time a lot or unit is transferred after the initial transfer from the developer.  To some in the business, this is known as an “evergreen” provision.  Beyond this provision being distasteful on its face, it can cause a great deal of title issues; especially, when the developer is no longer in business.  With the creation of Florida Statutes §689.28, effective July 1, 2008, these types of transfer fees are void and unenforceable in any newly recorded document.  The problem with the legislation is that it does not validate previously recorded transfer fees, nor does it expressly invalidate them.  So, look for more action by the Legislature in 2009, or more litigation to result.

The End of the DR-219.

I’m sure that all of you, at some point, have seen the Department of Revenue’s DR-219 form at a closing.  It was the form the Clerk used to determine the amount of Documentary Stamps due on the recordation of a Deed and, many times, the address the Tax Collector would use for sending out the annual real estate tax bill.  With the repeal of Florida Statutes §201.022, effective July 1, 2008, the DR-219 no longer exists.  The question remains as to how the Clerk is notified of the sales price (therefore the documentary stamps due on the Deed) and it is now imperative that the correct address for the real estate tax bill be placed in the Deed.

Foreclosure Fraud.

With the avalanche of new foreclosures have come the “mortgage rescue companies,” and all of the fraud they can muster.  Because of this increase of predatory practices against those least capable of affording, or even understanding, what is being done to them, the legislature stepped in to quash this activity by passing Florida Statutes §501.1377.  Now, complete disclosures must be made as to what these companies can actually offer, and what they can’t, along with a three-day right to cancel.

Mortgage Fraud.

An interesting “two-fer” in this area.  First, in creating Florida Statutes §193.133, the Legislature created a mechanism to notify county property appraisers when probable cause is found that mortgage fraud has occurred due to artificially inflated property values.  Second, an amendment to Florida Statutes §817.545 now increases the penalty for mortgage fraud to a second degree felony for any mortgage in excess of $100,000.00 (which, I think, would be just about all of them).  While this may be an “after the horse is out of the barn” measure, it puts serious teeth into the enforcement of the rampant fraud that helped precipitate the distressed real estate/mortgage market in which we find ourselves.

Community Associations.

The Legislature was not absent from the association arena.  In amending Florida Statutes §§718.113 and 718.115, the Legislature finally gave guidance as to the various responsibilities for the installation, maintenance, repair, and replacement of hurricane shutters and related protective products.  The creation of Florida Statutes §718.121(4) now requires that associations can only file a lien for unpaid assessment Thirty (30) days after a notice of intent to file a lien has been delivered to the delinquent unit owner by first class, certified mail, return receipt requested.  Most interesting in the bill that created these various changes was the amendment to Florida Statutes §718.503(2) wherein, after January 1, 2009, a prospective purchaser of a condominium unit from a non-developer seller is entitled to receive from the seller a “governance form.”  This form will be developed by the State and will include a description of the role of the board of directors in conducting the day to day affairs of the association, the rights of owners to speak at board meetings and the responsibilities of the owners to pay assessments and otherwise abide by the condominium documents.  I say this is the most interesting because it would appear that the nuisance of “condo commandos” has finally reached the Legislature!