Shout Out to PCS Title for one of the most exacting blog posts about Florida real estate trends. Thanks again!
Wenston DeSue
Halleloo! Here’s to another week of dropping 💐pollen 🌺 counts 🌼 and cool nights 🌝 ! Enjoy it (and the love bugs) while it lasts. Situational awareness: College Park Main Street will celebrate 🌸 Spring Fest 🌷 on April 30 from 5-11 pm on Edgewater Drive. Join us there for good food, fellowship, and music 🎸 ! |
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1. BFD: A special session to help Florida homeowners |
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The governor has called back the Florida legislature to Tallahassee for anotherspecial session. This one is to deal with the simmering homeowners’ insurance crisis facing the state. It starts on May 23 and is set to only last one week. What's next: Hurricane season opens on June 1, five days after the session ends. Why it matters: Since 2017, we’ve lost six property and casualty insurers to liquidation, and another two filed for liquidation this year. Others are leaving the state, some are teetering on the edge of liquidation, and more are non-renewing policies or raising rates on properties to a point that they’re unaffordable. For each of the past two years, the industry has paid out over $1 billion in losses each year. We have heard from numerous homeowners in the past month, complaining of being dropped or seeing their rates increase three- and four-fold over last year’s premiums. These stories have been more prevalent than at any other time since Citizens Insurance — the insurer of last resort — was created to back-stop the industry. Yes, but: Sweeping changes made in 2021 haven’t had the effect that the legislature had expected to help lower rates and losses. Tips to avoid non-renewal : Update your roof Get a wind mitigation report and follow its recommendations Get a “Four-Point” inspection and follow its recommendations to maintain or improve the property’s components that lead to the biggest claims.
What to do if you receive a non-renewal notice or if your insurer leaves the state: Our thought bubble: We’re hopeful the Legislature will use this special session to accomplish something that will help Florida homeowners. |
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2. Agents, brokers, and others still going to jail for fraud |
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We’re seeing more press releases about real estate agents, short sale negotiators, and other real estate professionals going to jail for fraud and other crimes related to the profession. Why it matters: Real estate agents, loan officers, title agents, lawyers, and appraisers who survived the Great Recession remember how many fellow professionals went to jail back for bad acts back then. Professionals coming into the business after that period may not understand that their actions can have some big consequences. What’s new: Nothing. What was illegal then is still illegal. Failing to file and pay taxes on commissions by funneling them through shell companies is still tax fraud. A real estate broker who lies about listings, and then steals the buyers’ deposits is still committing fraud. A real estate agent who lies about using funds for real estate investments and then applies them for another purpose is still engaging in money laundering. Short sale negotiators and investors who lie to get a lender to take a short payoff are still committing bank fraud. Manipulating values for short sale purposes is still civil fraud.
Our thought bubble: We receive requests sometimes from real estate investors, buyers, sellers, and mortgage lenders, asking us to do things that we know are illegal. When we point out why it’s illegal, we’re often told, “But I’ve done it many times before at other title agencies!” If someone is asking you to do anything and not show it on the settlement statement or tell the lender, then it’s probably illegal. |
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As we’ve written recently, home affordability is out of reach in many Florida metros. Redfin this week confirmed others’ data when it reported that Orlando buyers’ income needed to afford a home increased 43.8% since last March. Redfin More sellers are dropping their prices. The Title Report Higher interest rates don’t just discourage buyers. They discourage sellers who prefer to hang onto that low rate on their current home rather than taking on a higher rate on a new home. Fortune
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Unfortunately, we can’t post this week’s picture, because it was sent to me to seek legal advice. But I can say that, before you contractually waive those inspections, be sure you go up in the attic and snoop around. You never know when you’ll find a roof shoddily constructed a few feet above the old roof … without a permit. |
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Instead of paying for “title lock” insurance, most county recording offices offer freeservices that will alert you whenever a document is recorded that contains your name. For instance, in Orange County, you can go here to sign up.
Real Estate Wenston DeSue is a realtor, organizational consultant, design, construct, build expert and developmental networker. Real estate is the business of exchange and affects every person on the planet. Real estate on all levels represents resources, access and ultimately, power. Knowledge is power…
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