Temporary Association Estoppel and Municipal Lien Procedures
CATIC is aware that our agents may be encountering delays, or a complete inability, in obtaining estoppels from homeowner and condominium associations as well as municipal lien searches, as a result of office closures due to the COVID-19 pandemic.
To assist our agents in continuing to close real estate transactions during this time, CATIC has approved the following procedures through
May 30, 2020.
Temporary Procedures for Purchase/Sale and Refinance Transactions
Potential Unrecorded Liens
As to the following potential unrecorded liens:
- Assessments of any homeowner’s or condominium association (this includes both regular and special assessments);
- Service charges for water, sewer and waste;
- Code enforcement liens;
- Special assessments in favor of any city, county, or village,
you are authorized to issue both owner and loan policies without exception for potential unrecorded liens, provided that:
- You include a statement in the Owner’s Affidavit, with indemnification language in favor of CATIC, that the owner is not aware of any of the above-listed potential unrecorded liens;
- No recorded notice of the lien appears of record;
- The property is not in foreclosure; and
- The policy limit does not exceed $10 million.
Recorded Liens
Any recorded lien must be an exception in both the owner and loan policies when a payoff cannot be obtained. However, you should discuss this situation with CATIC underwriting counsel as, in some circumstances, alternative solutions may be available.
Condominium and Homeowner Association Approval
Where approval of a condominium or homeowner’s association is required, but cannot be obtained, an exception for damage for failure to obtain the approval must be included in both the loan and owner policies. CATIC strongly recommends that its agents obtain written evidence from both the buyer and the lender prior to the closing that they are aware that this exception will be included in the policies.
Open Permits
CATIC reminds its agents that many Purchase/Sale contracts include disclosures and other requirements regarding open permits. Where this information cannot be obtained, the parties will need to address these contract provisions.
If you have any questions or would like to further discuss these provisions, please contact
Deb Boyd
, Florida State Counsel.
