Replaces everything after the enacting clause. Amends the Title Insurance Act. Provides that the definition of "insured closing letter" or "closing protection letter" includes an undertaking given by a title insurance company or an independent escrowee to a party to a real property transaction which indemnifies the party against the intentional misconduct or errors in closing the real property transaction on the part of the title insurance company or independent escrowee. Provides that an independent escrowee is not authorized to act in a nonresidential real property transaction where the amount of settlement funds on deposit with the escrow agent is less than $2,000,000 or in a residential real property transaction unless as part of the same transaction closing protection letters protecting specified interests have been issued by the independent escrowee. Provides that the closing protection letter indemnify all parties to a real property transaction when losses arise out of certain circumstances. Provides that the indemnification under a closing protection letter may include limitations on the liability of the independent escrowee for certain circumstances. Provides that the Secretary of Financial and Professional Regulation shall adopt rules as may be required consistent with the federal Real Estate Settlement Procedures Act and provisions of the Act concerning referral fees and penalties. Effective immediately.
House Committee Amendment No. 2 In provisions concerning independent escrowee prohibitions and indemnification under a closing protection letter, provides that an independent escrowee that issues a closing protection letter shall file with and have approved by the Secretary of Financial and Professional Regulation proof of a fidelity bond in the minimum amount of $2,000,000. Makes other changes.
Replaces everything after the enacting clause. Reinserts the provisions of the bill as engrossed. Makes changes to the definition of "insured closing letter". Further amends the Title Insurance Act. Provides that an independent escrowee may issue an insured closing letter if certain conditions are met. Requires the Secretary of Financial and Professional Regulation to adopt and amend rules for enforcement of the provisions consistent with certain federal and State laws. Makes other changes. Effective immediately.