FL Operations Summary

Licensed Entity:

WFGNTIC/WFG LS

• See Attached HUD Sample for Additional Information

Banking Information

• Bank account <<INSERT ACCOUNT #/ROUTING #/BANK NAME>>
• Checks stale dated after ___ days of issuance
• Good Funds Law Yes, 69o186.008 $500 de minimus with "a reasonable and prudent belief that the instrument will clear"
• Disbursements Requirements -- None set forth in statute, Regulator does check for match between HUD & disbursements in audit.
• Special Bank Requirements (IOLTA/IOTA/OTHER or account specific to that state’s funds). Segregated account/domestic bank. IOLTA required for attorney/law firm. No IOTA required for agency. Regulator frowns upon interest bearing accounts for benefit of agent, unless approved by customer in advance.

Escrow/Settlement

• Who can prepare the HUD Not restricted
• Who can sign the HUD (EO/LTP/Attorney) No Restrictions; WFGNTIC – no requirements
• Who orders hazard insurance Customary - Buyer/Borrower
• When is transaction consummated for new HUDs - At signing
• Record before/after disburse -- Disburse then record
• Filed/restricted escrow rates No
• Record retention requirements 7 years title/5 years escrow
• Is an attorney involved in the closing Not required.
• Who can handle loan document signing Notary
• Doc Prep Restrictions -- As long as in connection with an insured closing and at no charge, agent can prepare standard documents
• Use Escrow Instructions or not - No
• Use Estimated HUD or Final - Final
• Pass-thru charges - At cost
• Rates Inclusive or not -- Not inclusive
• Up Charging - No
• Junk Charges - No Florida limits charges paid to agent to Premium, Closing Services and Search.
• Special HUD Requirements
• Special Disclosures
• CPL - No charge. Form is not ALTA standard.
• UPL Issues If no title insurance, then doc prep and Closing are UPL
• Joinder of non-titled spouse - Yes, if homestead
• Survey Required -- Yes

Per DoI letter, survey exception may not be removed and survey coverage (ALTA 9, etc.) may not be given without a survey in the possession of the issuing agent. This may be satisfied with a current survey, or older survey and a "no changes" affidavit.

This is the case for Owners and Loan policies.

Audit

• Required Monthly 3-way reconciliation of trust accounts submitted to each appointing insurer [F.A.C. 69o186.009]
• Annual Policy Audit Required F.S. 627.7773

Recording Process

• E-recording -- Permitted, available in many counties. Florida has passed UPRERA F.S. 695.27
• Record before disbursement? Disburse then record
• Special recording procedure
  • Certificate of Occupancy/Vacant Property Registrations required in some counties
  • Buyer must apply for homestead exemption status after closing.

Recording/Document Requirements

• Marital Status Stated Required along with homestead statement. If Homestead, spouse must join in conveyance/mortgage even if not in title.
• Transfer Tax Yes Documentary stamp tax on both mortgage and deed
• Mortgage Tax Yes. Separate intangible tax at 2 mils
• Address for grantor/grantee/property Borrower address required
• Witnesses 2 [689.01]
• Names typed/printed Yes Requirements are set forth in [695.26]
• Prepared by/return to Preparer info required
• Notary Stamp/requirements
• Parcel or tax index number 1st page
• Recitation of Consideration Nominal Consideration Customary. “$10 & Other good and valuable consideration”
• Derivation Clause -- Not Customary
• Corporate Signatures/Attestation -- By President, VP, CEO w/o resolution. No Witnesses required for Corp deed, if Corp Seal. Better practice is to have 2 witnesses regardless. See [692.01]
• Ink Color/Font Black/ 9 pt minimum
• Legal Description State/county/municipality in 1st paragraph
• Margins 3” x 3” top right; 1” all others
• Other Special Recording: Certificate of Occupancy/Vacant Property Registrations

Document Types

• Conveyance Types -- Warranty Deed, Special Warranty Deed, Quit Claim. (Trustees and P.R. Deed are variant of SWD).
• Security Instrument -- Mortgage
• Release -- Satisfaction of Mortgage

Tenancies

• Tenants in Common -- Yes
• Joint Tenants -- Recognized if proper language. Survivorship must be set out clearly
• Life Estates are recognized. Residuary of traditional Life Estates are vested. “Lady Bird Deeds” recognized w/o rights in residuary.
• Tenancy by Entireties -- Automatic if acquired by H&W, whether or not stated. Better practice to show marital status.
• Community Property -- No
• Homestead -- Yes – see discussion in FL Underwriting Summary
• Joinder of Non-titled Spouse -- Required, if homestead

Taxes

• Taxes Levied Jan 1, Amount determined usually about August.
• Taxes due First payable on Nov 1 of the year of assessment (with discount), past due April 1 following year.
• Delinquent April 1 of year following assessment

Commitment/Policy Special Requirements

• Who can sign Commitment/Policy? -- Licensed Title agent with appointment or FL Bar attorney with appointment; no restrictions on underwriter

Payment Customs

Who pays for Owner’s policy varies throughout the state depending on the county where the property is located. Miami-Dade reverts to credit for abstract, most counties Seller Pays.

Post Closing Requirements

• Recon follow up Not required by law or rule. But is considered good practice.
• Title Insurer has authority to issue satisfaction. WFG does not delegate that authority to agents.