Keep in mind that the proposed amendment was one attempt to reduce claims resulting from inadequate control over, or theft from, law firm trust accounts. Even if there is no law or rule requiring certain steps to be followed by your law firm (or any company that holds escrow or trust funds), you should still try to implement every possible procedure you can to prevent loss of funds. Real estate attorneys know that their title insurers are concerned about a lack of control over trust account funds, but this issue is not title insurance specific. All law firms’ professional liability insurers may also be quite interested in trust account controls. Or lack of controls . . .

Attorney Trust Accounts is a post from: Real Estate Law Series ®

A few years ago a bill was proposed in Congress to establish a national insurance office. More recently, a federal land titling system was proposed.

Now there is a proposal by the Uniform Law Commission to consider a federal foreclosure process. Would that process work for all states, including states that have deeds of trust instead of mortgages, or nonjudicial foreclosures instead of judicial foreclosures? The American Land Title Association is closely monitoring this proposal.

What is the benefit of national oversight for real property transactions? It might be easier to find property owned by your judgment debtor if you only have to search one database instead of knowing what county, township, or parish you need to search. But you risk finding 200,000 Barbara Burke property owners nationwide instead of just 2 Barbara Burke property owners in a particular county. Which one is your debtor?

Will there be a problem with the different state recording laws, especially the privacy issues? The recording of documents would still take place at the local level but would the local recorders still index the documents?  If a mistake is made in the indexing at the federal level, do you think a consumer or title company could sue for damages? I think not.

→ What do you think about a national license allowing you to conduct business in any state, or allowing others to conduct business in your state?

→ What do you think about a national database for all of your real estate information?

Let us know!

National License, National Database, National Everything? is a post from: Real Estate Law Series ®

There is a great recent case that demonstrates this issue (okay, it is not great for the parties but it is great as an example of this topic). I thank Joel Rothman, an attorney involved in the case, for sending me a copy of the appellate court’s unpublished opinion* and allowing me to refer to it. The case involves a  developer-seller, a real estate brokerage, and a management company. Below are some of the allegations as described in the decision, with my comments in parentheses.

It is alleged that the real estate broker’s website had this promotional statement: “property management company has offered all investors guaranteed mortgage, tax and HOA payments.” (BPB: Oh, no. Guaranteed? Really? And what’s worse, one company is making promises another company must keep – very bad idea!)

Other promotional materials provided by the real estate broker supposedly claimed that investors would purchase units “risk free.” (BPB: “Risk Free”? Since when is any investment, especially a real estate purchase, risk free? Apparently, these bills would be paid by the management company out of rents, which were, again, “guaranteed” to cover these costs up to 24 months).

Of course, what happened? The management company allegedly did not pay all of the purchasers’ ownership costs so the purchasers sued.

There is also an interesting discussion of whether the real estate broker and/or management company were agents of the developer. A statement on the real estate broker’s website that the developer was “proud to team up with” the brokerage was used to support this allegation (BPB: Be careful what you say!).

BE CAREFUL WHAT YOU SAY! Not just verbal communications but written, too. We get so excited about selling real estate that we forget our words sound like promises.

“This is a lovely house.” (BPB: Hmm, be sure your statement clearly sounds like an opinion).

“This house is located in a good school zone.” (BPB: Again, your opinion. Better to show third-party statistics to the prospective purchaser. And remember, zonings may change in the future).

Speaking of predicting the future, please don’t – especially regarding land near the property to be sold, one of the more common causes of litigation against real estate licensees.

“That’s a conservation easement; it will never be developed.” (BPB: Oh? Easements may be terminated).

“Your view will never be blocked.” (BPB: The real estate agent selling a condominium unit knew the current building restrictions for the next door construction but those restrictions were waived and the next door building was allowed to be built taller than the unit sold, blocking the view).

“Guarantee” type phrases are also common in Short Sale advertisements. Review yours to be sure you are not promising anything you can’t deliver (e.g. “No Tax Owed!”).

For more on this topic, attend the new Risk Management seminar created and presented by Gary Salzman, Esq., “Remedies for Real Property Disputes in Florida” (3 CE and CLE hours available). Email bburke@realestatelawseries.com for more information.

*Bamert, et al v. Pulte Home Corporation, et al. (U.S. Court of Appeals, 11th Circuit, No. 10-10548, filed October 26, 2011). For those of you interested in securities law litigation, this opinion has a very nice explanation of how investors are defined.

Risk Management – Be Careful What You Say is a post from: Real Estate Law Series ®

While you are reading that bill, I want to point out a few changes that will immediately impact real estate transactions in Florida. One change is that the power of attorney must be signed by the principal and two subscribing witnesses and be acknowledged by the principal before a notary. Previous Florida law required the power of attorney be executed with the same formalities as the document for which it were to be used. If a power of attorney were to be used for a deed, then two witnesses were required on the PoA because two witnesses are (still) required for deeds in Florida. If the power of attorney were to be used for a mortgage, then no witnesses were required on the PoA because no witnesses are required for a mortgage in Florida.

Now? Powers of Attorney must have two witnesses and be notarized, regardless of the document type to be signed. There are a few exceptions, such as PoAs executed before October 1, 2011, PoAs properly executed in another state, and military powers of attorney that have their own rules.

Another recent change is that the authority granted must be specific. Powers of attorney that grant general powers (e.g. “all acts that the principal can do”) are considered as not granting any authority at all.

And lastly I want to mention that “springing” powers of attorney are no longer viable. “Except as provided elsewhere, a power of attorney is ineffective if the power of attorney provides that it is to become effective at a future date or upon the occurrence of a future event or contingency.” The exceptions are military powers of attorney and durable powers that were executed before October 1, 2011, but not exercisable before October 1, 2011 (i.e. the principal was not mentally incapacitated before that date).

If you are involved in creating, executing, implementing, or using powers of attorney for banking, health care, or real estate transactions, please read this law carefully. There is also a new Power of Attorney course available on the Real Estate Law Series® Online University at http://learn.realestatelawseries.com for more on this topic. 

If you know that a Power of Attorney is going to be used for a real estate transaction, PLEASE let the closing agent know well ahead of the closing date, to be sure the PoA will be accepted and the closing will go smoothly.

Happy Holidays, Everyone! I’m sure 2012 will be interesting! :O)

Power of Attorney is a post from: Real Estate Law Series ®

There is a proposed New(er) HUD-1! 

Actually, there are two proposed HUD-1s and YOU get to choose! Or at least you get to vote on which version you like and why. You may have heard that federal agencies were working to combine the Truth In Lending and Good Faith Estimate notices into one document. Now the Consumer Financial Protection Bureau has proposed two versions of a revised HUD-1.

You have a chance to review these versions and comment!

Click here for the CFPB website (http://www.consumerfinance.gov/knowbeforeyouowe/). Then click on “Switch to the Industry Tool” and take a look at the two options: one called “Ironwood” and one called “Hornbeam.”

VOTE!  After all, it’s not very often you get to help create a federal government form (IRS tax forms anyone? ).

New(er) HUD-1 is a post from: Real Estate Law Series ®

Apparently, buyers at foreclosure sales were taking their Certificates of Title to the Recorder’s Office and paying more tax than what would have been calculated based on the real purchase price. How could that happen and why did they pay more than owed?

Orange County is one of the few Florida counties where the Official Records staff are not part of the Clerk of the Court office. In counties where one agency performs both duties, the recording staff know the foreclosure sale price. In another county that has separate functions, the Clerk’s office marks the Certificate of Title with the purchase price so the Recorder’s office knows the amount of transfer tax that should be paid. In Orange County, the Certificate of Title did not have the purchase price on it, so the Recorder’s office had no idea what the purchase price was (this is no longer the case – the sales price is now noted on the Certificate of Title by the Clerk’s staff).

But why in the world would someone pay more tax than is required?

My first thought was fraud. But fraud on who? Or what?

Fraud on the Department of Revenue? The Department is receiving more, not less, tax than is owed.

Mortgage fraud? Future sales prices could possibly be influenced by the overstated foreclosure sales price, but appraisers (should) look at the certificate of sale price, comparables, and other information to estimate property value.

What about fraud on the IRS? An inflated foreclosure purchase price could lower capital gains tax owed on a subsequent sale.

Or what about fraud on the Federal Housing Authority? The FHA has rules about the difference between a borrower’s purchase price and the seller’s cost to purchase the property before it will agree to provide an insured mortgage, and if the difference is too much, the property must be owned by the seller for a certain period of time. These foreclosure purchasers could have been trying to avoid this holding period.

There is a great Attorney General Opinion on this issue – from 1995! AGO 95-80 stated that accurate transfer taxes were important to protect the integrity of the public records so as not to mislead or misinform anyone. Future buyers, mortgagees, and neighboring property values might all be influenced by overpayment of transfer taxes.   

 What do you think?

Transfer Tax Fraud? is a post from: Real Estate Law Series ®

You may have been waiting to hear what the UPL Committee decided about short sales. Well, the discussion basically came to a complete halt when it was suggested that the question being decided was worded so that no specific answer could be given. I agree. The initial question the Committee was supposed to consider was “Whether a nonlawyer who assists a property owner in a short sale transaction is engaged in the unlicensed practice of law.” The concern is that the word “assists” is too broad.

The Committee decided that the question needed to be reworded and that more detailed information needed to be received, such as exactly what actions are being taken by nonlawyers, so that the Committee could make definite statements as to what actions are: (1) not the practice of law, (2) the practice of law but authorized, and (3) the unauthorized practice of law. I am under the impression that the Committee will come up with “guidelines” but not a formal opinion. As I am on the Committee now, I will let you know what happens!

Interesting to hear that there appear to be no other states that have issued UPL opinions about short sales but that there are a LOT of opinions and statutes about loan modifications. If you are involved in short sale transactions, continue to act as authorized by your license but pay close attention to the loan modification laws as they tend to describe actions often taken during the short sale process. For example, the federal MARS statute and Florida’s Foreclosure Rescue Act (F.S. 501.1377) both review communications with homeowners’ lenders and payments for same.

On a related note, the Ethics Committee reviewed a question about nonlawyers and foreclosures. This question involved a business referring foreclosure work to a lawyer, with the business being paid a flat fee per referral. Obvious issues raised included payment for the referral of business and not for work actually performed, solicitation of legal work, and, YES, the unauthorized practice of law.  Please review the Florida Bar’s April 2011 Ethics Alert on the Bar’s website under Ethics Opinions for information about lawyers being involved with nonlawyers, foreclosures, loan modifications, and short sales, including rules about payments for services.

http://www.floridabar.org/TFB/TFBResources.nsf/Attachments/872C2A9D7B71F05785257569005795DE/$FILE/Ethics%20Legal%20Service%20to%20Homeowners.pdf?OpenElement

FOLLOW Real Estate Law Series® on LinkedIn!

Update on Florida Bar Committee meetings is a post from: Real Estate Law Series ®

• Can you please tell me if rebates, such as offered by a “Groupon” are legal for real estate agents in the state of Florida to offer their clients?

From BPB: PLEASE, instead of replying to this post, comment below so everyone can learn.

May I provide Groupon discounts to my customers? is a post from: Real Estate Law Series ®

Here are a few bills that you may find interesting. 

There was a change to Fla. Stat. 95.051 about how a bankruptcy tolls the statute of limitations for a tax certificate under Fla. Stat. 197.482. Check out SB 1196 regarding landlord liens as a result of the Paraiso case (mentioning landlord lien rights in every lease required?). And don’t forget to read SB 0670 regarding powers of attorney which I think may create some real confusion among real estate practitioners.

Of course, terminating condominiums is also a popular topic (see HB 1195) as working with distressed properties of any kind is front and center in most people’s minds.

There were also some changes to the recording of sinkhole reports. Did you know that, if an insurance company pays a claim for a sinkhole loss, the insurer must file a copy of the report and other documentation in the county records? Fla. Stat. 627.7073 has been on the books for a few years now but the changes this year (see Ch 2011-39) added more documentation to the recording requirements, including that the claim payment amount is shown.  

Does this report create a lien? No. Although the legal description and property owner’s name is included in the recorded information, the recording of the report does not “constitute a lien, encumbrance, or restriction on the title to the real property or constitute a defect in the title to the real property.” So why am I raising this issue? Because it could end up creating a contract or closing complaint, similar to a lot of complaints about recorded documents that could provide information to the buyer but are not specifically title-related. You know – the old “you should have told me” complaint.

The seller who submitted the claim that was paid must disclose to a buyer information about the claim. This year’s bill added the words “before the closing.” Now THAT’s a good idea! . But is there any way that buyers might hold real estate agents or closing agents responsible for confirming that the claim payment actually went towards repairing the property? FAR’s Seller Disclosure Form asks the seller to disclose if (s)he is aware if a sinkhole insurance claim has been paid and, if so, if the full amount of the proceeds were used to repair the damage. But what about subsequent buyers and sellers? How would a seller who was not the insured when the sinkhole damage was repaired know if the claim payment went towards the repair?

By the way, if you have never seen one of these recorded reports, they are GINORMOUS! Pages and pages of technical speak, plus drawings, tables, and pictures. That’s just the report. There is also a certification that has to be recorded, a neutral evaluator’s report, if any, certification that stabilization has been completed, if applicable, and the insured has to record any reports (s)he obtained independently of the insurer. Hey – is this a recorder’s annuity law?

For more information about sinkholes in Florida, go to the Florida Office of Insurance Regulation’s website at: http://www.floir.com/Sections/PandC/SinkholePage.aspx  and check out the information there, especially the map of Florida that shows the prevalence of  sinkhole occurrence.

Hmm . . . I may have to consider moving . . .

Sinkholes is a post from: Real Estate Law Series ®

Apparently, it is not the estoppel information that is taking so much time, it is the buyer’s application to purchase the condo unit that is holding things up. Condominium associations may have the right to approve (or disapprove) a unit purchaser. How do they know when a unit might be sold? Very often not until they receive a payoff request from the closing agent! If the association has not received the buyer’s application to purchase, you will not be receiving your payoff information today for your closing tomorrow!

If you are a closing agent hoping to complete a condo unit transfer, try to be sure the buyer submits the application as soon as possible. Make sure the buyer’s real estate broker understands this process may hold up the closing. It is not a quick process and there may be an application fee.

A condominium association has 15 business days to provide an estoppel letter with payoff information but this time period starts AFTER the association receives all required documents. Because some associations take the position that a completed application is a required document, you are now looking at a possible 45 days if you add 30 days to complete the application approval process – and that 30 days can be longer if the application is incomplete.

I remember the days when we would receive requested payoff information promptly from sellers’ lenders, condominium associations, and even municipalities – and all for free! Those days are long gone!

You may be interested to know that condominium associations may not charge more than $100 per applicant (see F.S. 718.112). I just saw a charge of $250 but upon further review saw that the charge was being made, not by the association, but by the association’s law firm!

AND get this!

I guess because the firm was so annoyed by repeated requests from real estate brokers and title closers, it also charges $20 for each time someone calls for a status update prior to the 15-day expiration period! Love that!

 Please comment, below, in the Comment box, not by replying to this email. Thank you.

Payoff Requests is a post from: Real Estate Law Series ®

The camera I bought online arrived. I opened the package and took out the camera. Then I opened the QuickStart Guide.

Here was the first instruction: Take the Camera out of the Box.

Well! I felt all A-student-like, as I had somehow intuitively KNOWN to take the camera out of the box!

I confidently continued to read the instructions, hoping for more A-student-like moments ). 

Next instruction: Confirm you have all of the items listed below . . .

Of course, I diligently went through everything to be sure I had all of the items listed, including this one: “QuickStart Guide (this guide).”

I would not be reading the instructions in the QuickStart Guide if I did not HAVE the QuickStart Guide, yes?

You think that’s bad?

One of the questions HUD received about its new HUD-1 form was: “I am reading the Instructions to the new HUD-1 and it refers to ‘these instructions.’ What does that mean?”

 . . . sigh . . . Happy Friday!

The State of Instructions is a post from: Real Estate Law Series ®

According to the Department of Business and Professional Regulation (which regulates over 25 types of licensees), “unlicensed activity is a serious threat to the health, safety, and welfare Florida residents and visitors.” http://www.myfloridalicense.com/dbpr/reg/UnlicensedActivity.html

In addition to the general license protection idea, in many fields there is so much information that people specialize. If I have a kidney problem, I think I want to talk to a kidney specialist, not a doctor who specializes in heart issues. But maybe kidney issues and heart issues are related? Perhaps consumers need both specialists and specialists who communicate with each other. I can’t think of a better example of an activity that involves specialists who should communicate with each other than a real estate transaction: you have real estate sales specialists, title insurance specialists, legal specialists, surveying specialists, appraisal specialists, land record specialists, etc. The problem arises when one person’s specialist activity may overlap with another specialist’s area of expertise. That overlap is what has caused the uproar about who is supposed to, or allowed to, do what in a situation when a homeowner is in default on his/her mortgage. A real estate licensee may enter the picture if the mortgagor tries to sell the property before the mortgagee forecloses. A title insurance specialist may enter the picture if this proposed sale progresses to the contract stage. A mortgage loan originator may enter the picture if the homeowner tries to obtain a loan modification. An attorney may enter the picture to represent the homeowner in defending the foreclosure or to write a contract for a proposed sale. 

Assisting the consumer and communicating among licensees, but not crossing the line outside of one’s licensed authority, was what was discussed at the UPL Committee’s meeting. A primary concern is if crossing the line causes harm to the consumer. Understand that it is often the homeowner who is the one who is prompting a licensee to step into another licensee’s area. For example, it is not uncommon for a delinquent homeowner to ask a real estate agent if a foreclosure will affect his credit differently than a short sale, or to ask a title insurance agent to talk to his lender about modifying his loan. What then?

First, let me review why the Florida Bar’s UPL Standing Committee is even involved in this issue. A Florida Bar attorney requested an opinion on the following question: Is a nonlawyer who assists a property owner in a short sale transaction engaged in the unlicensed practice of law? Is the answer different if the nonlawyer is licensed under chapter 475, 626, or 494?

What usually happens when such a question is submitted is that a Florida Bar staff member issues a response but no formal opinion is given. If the questioner objects to the response, (s)he may request that the UPL Standing Committee review the question. This Committee decided to hear public opinion on the question and that decision is what led to the February 11, 2011, hearing. What happened at the hearing?

Nothing…yet. There were so many people who wanted to talk, and did, and so many more who wanted to talk, and didn’t, that the UPL Committee decided to continue the public hearing at its next meeting during the Florida Bar’s Annual Convention, June 22-25, at the Gaylord Palms Hotel in Kissimmee. When the UPL Committee has heard enough ), it will deliberate in private and decide to: (a) take no action, (b) decide the action is the unauthorized practice of law, or (c) decide the action is not the unauthorized practice of law. If the Committee chooses (b) or (c), its decision will be published in the Florida Bar News to allow more comments to be submitted. Then the Committee may change its mind, may modify its opinion, or leave the opinion the way it is. The Committee’s opinion is then submitted to the Florida Bar Board of Governors who may approve it as is, request modifications, or reject it. If the Board approves it, the opinion is then submitted to the Florida Supreme Court. If rejected or modifications are requested, the Committee goes back to work. Not a quick process, is it? But perhaps that is a good thing.

I think using the word “assist” in the original question opens up the discussion to every possible activity surrounding a short sale. The question certainly led to a wide range of comments! I heard attorneys say a short sale is different from a regular sale in that more legal decisions are involved. I heard others say legal decisions are involved in all real estate transactions, short sales or not. I heard title people say they manage paperwork and communicate with the parties, regardless of the type of transaction, and that they do not get involved in sellers’ decisions. I heard real estate agents say they give disclosures and have lists of options that they provide to sellers (these lists have apparently been prepared by the real estate brokers’ attorneys, I think is what I heard). I heard a real estate agent say he did not think there was much of a difference between what an attorney does and what a real estate agent does in short sales. There were some heated debates surrounding deficiency judgments. I also heard an attorney say no short sales should be completed unless sellers are represented by attorneys – THAT comment prompted some response! The Florida Supreme Court has specifically ruled that real estate licensees and title insurance licensees may conduct certain activities that might otherwise be considered the practice of law, so I think that horse has left the barn.

For those of you interested in the positions of the Florida Land Title Association and the Real Property, Probate, and Trust Law Section of the Florida Bar, go to the FLTA’s website (www.flta.org) and click on the “Useful info from our Mid-Winter Meetings” link where you will find their position papers.

For those of you interested in my opinions, click here to access my brochure, “May I Negotiate Short Sales? Maybe.” Feel free to download it and print it for your own use. May I Negotiate Short Sales?

What about your opinions? Comment, below, so we can all learn from each other.

The Unauthorized Practice of Law is a post from: Real Estate Law Series ®

Theft from an escrow or trust account is NOT covered under these types of policies. You will find specific exclusions in these policies for improper use, theft, stealing, conversion, misappropriation, and other misuse of accounts. Therefore, companies that hold such funds obtain a fidelity bond for theft (most fidelity bonds also cover theft of personal property). One problem with typical fidelity bond coverage, however, is that they only cover theft by employees; they do not cover theft by the principals of the insured company. Look for an exclusion that says something like “We will not pay for loss resulting from any dishonest or criminal act committed by you or any of your partners.”

This is a big problem for co-owners who do not know of the theft and for title insurers that have to pay claims because of escrow or trust account theft. Is there any coverage available for these folks? Stewart Title has recently put together a modified fidelity bond, called an Escrow Security bond, that covers principals although this bond has other provisions that may or may not be suitable for your situation. I talked with Debbie Turner, CPCU, AAI, President of Dean Insurance Agency, and Larry Galpern, SVP, of Affinity Insurance Agency, two of the most prominent insurance agents in Florida, about the availability of principal theft coverage. They are both looking into alternative products to Stewart Title’s bond. Please feel free to contact them directly for additional information. Debbie may be reached at dturner@deaninsuranceai.com / 800-721-3326, x 101, and Larry may be reached at lgalpern@profliability.com / 954-346-7711.

Contact your insurance agent to see what protection you currently have for escrow/trust account theft and what you can do to enhance it.

Of course, prevention is the BEST protection –

Be sure you have protective procedures in place and constantly monitor your accounts.

Theft from Escrow/Trust Accounts – Do You Have Coverage? is a post from: Real Estate Law Series ®

Authority to hold money in escrow for Florida real estate brokers is found (primarily) in F.A.C. 61J2-14.008, .009, and .010. Florida Bar trust account rules are found in Florida Bar Rules 5-1.1 and 5-1.2. Florida title agent escrow account rules are (primarily) found in F.A.C. 69O-186.008 and .009. Be sure the accounts are clearly designated as trust or escrow accounts, and that each owner of funds deposited in the account is also clearly designated so that each person’s funds may be insured up to the maximum amount. I know several title agents and attorneys who regularly inform clients what bank is holding the escrow or trust funds because personal accounts may be added to escrowed funds when the federal government is deciding maximum insurance coverage.

The Florida Bar and title agent rules are also where you find the “good funds” rules that allow a licensee to disburse before receipted funds are fully collected. Please note that these rules only mean your regulator will not yell at you if something goes wrong; they do not absolve you from liability if you disburse on funds that are subsequently found to be insufficient. 

Authorization for auditing real estate brokers and brokerages is found in Fla. Stat. 475.5016, but I found no real detailed requirements for reconciliations in the statute or the rules. The title agent rules include a requirement for monthly reconciliations to be sent to the title insurer and made available for Department of Financial Services review. Florida Bar attorneys do not have to send their monthly reconciliations to anyone (annual reporting is required for clients and the Bar), but Rule 5-1.1 requires attorneys to authorize their banks to notify the Bar if a trust account is overdrawn or a trust check is returned due to insufficient or uncollected funds. Interestingly, I was told that many attorneys have not provided this authorization to their banks AND that they have set up trust accounts that allow for overdraft protection. Overdraft protection on trust accounts is NOT allowed! (See Rule 5-1.1(k)).

As an aside, I have heard that the Bar’s auditors are requiring clear documentation for trust account activity and that some closing software programs do not automatically provide for this documentation. Check with your closing software company if your program does not produce a running balance for receipts and disbursements or allow you to document reasons for such actions. Do not be careless with this process – supporting documentation will protect you and your staff! (in addition to keeping you out of trouble with the Bar )

There is talk in Tallahassee about passing a statute requiring attorneys to maintain a separate, title insurance-related, trust account that may be audited by title insurers. A Florida Bar Ethics Opinion discusses this issue (see Ethics Opinion 93-5). How exactly this would work is not clear to me (separate accounts for each title insurer, for example?), but the pressure to allow auditing of escrow and trust funds is strong.

Lawyers – what do you think about this idea of maintaining separate title insurance-related trust accounts?

The next issue of the Real Estate Law Series® Report will discuss what happens if there is a theft of escrow or trust funds – is your company covered by insurance or a bond?

Escrow and Trust Accounts is a post from: Real Estate Law Series ®

That reminded me of the furor raised several years ago when solar water heater companies were placing liens on people’s homes for unpaid bills. The liens were a big surprise to the title industry, I can tell you! Fortunately, Florida courts ruled that the water heaters were personal property, so none of the liens on the real property were enforceable.

Too bad that something that could be very beneficial is turned into a negative because some people just cannot stop themselves from using trends to con others.

Solar Water Heaters is a post from: Real Estate Law Series ®