03/05/2019
The Florida Department of Financial Services(DFS) has issued new “Guidance” concerning 3rd party vendor fees in Residential Real Estate Transactions.
1. The current DFS guidance puts a greater focus on notice to the consumer as to the fees they will be charged at closing.
2. DFS “prefers” that you include in the settlement fee all “Closing Services” charges, as that term is defined in Sec. 627.7711(1)(a), F.S., to make it easier for the consumer to compare fees from agent to agent.
3. It is acceptable to itemize 3rd party Closing Services fees, in addition to your settlement fee IF all such charges are disclosed to the consumer and the consumer agrees to the fee(s).
4. DFS recognizes that last minute charges are unavoidable and does not specifically object to such changes but instead is focused on whether the charge is deceptive.
5. Separate charges for some items will be “red flags” to DFS and will trigger a closer examination of your fees. Examples are parking fees, location fees, storage fees, notary fees (without more detail), postage, wire fees. These are fees that DFS may determine are unfair and deceptive because they should be included in your settlement fee.
6. You must still comply with TRID if those rules apply to your transaction.
7. Do not quote, advertise, include on a fee sheet or otherwise promote a settlement/closing fee and then charge a different fee or a litany of additional charges at closing. This violates the law. You must provide notice to the consumer that the fee(s) will be different than what was on your website, on a fee sheet or whatever. Be sure your office staff and realtor partners have a copy of your most current fees.
8. DFS does not intend to issue any additional guidance on “notice.” Presenting additional charges at the closing table, without some form of prior notice to the consumer, is not adequate notice.
