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An estoppel certificate must also be provided in a uniform-statewide format to ensure that buyers and sellers receive the appropriate information needed to close the real estate transaction.
Equitable estoppel is a legal doctrine in Florida that prevents a person from making a claim or taking a position in court that contradicts previous actions or statements.
The bill revises Florida law regarding estoppel letters provided by mortgagees and mortgage servicers to protect persons who justifiably rely on the accuracy of an estoppel letter. Specifically, the bill: Reduces the time to respond to an estoppel letter request from 14 days to 10 days.
For example, someone selling a piece of real estate at a high price may know nonpublic facts that will decrease the value of the property. By intentionally failing to disclose that information to a prospective buyer, the seller can earn a larger amount from the sale.
Who requests an estoppel? The title company handling the closing will request the Florida estoppel letter from the Homeowners or Condo association. An authorized representative from these organizations is required to complete and sign the form within 15 days of request.