Public Policy Update
Quick reminder that we still have our Call for Action ongoing regarding the veto of SB 280 – Vacation Rentals. This is the bill that passed this session that, if signed, would have a long-lasting, detrimental impact on the state’s tourism industry and would completely trample the rights of thousands upon thousands of property owners in the state.
Governor DeSantis hasn’t received the bill yet, but it’s important that we keep the emails coming into his office so that when he does, he can’t get that veto pen out fast enough. So please, if you have not already taken action and emailed him, please do so by going here. It’s a fast and easy process that can be done in just a couple of clicks of the mouse.
Second, I wanted to draw your attention to the recent positive news that has been circulating regarding Florida’s property insurance market. Last week I pointed you to two different news articles on this topic. One had industry analysts talking about potential stabilizing of the insurance market and the other highlighted more policies being taken out of Citizens by private insurers.
Well, we had a third article appear this week that shows that one Florida property insurer, Florida Peninsula Insurance, is planning an average 2% rate decrease for homeowners throughout the state. You can read the full article here, but the gist of it is that Florida Peninsula Insurance is pointing to the recent reforms made by lawmakers as a catalyst for the rate decrease. Here is a direct quote from the company’s president, Clint Strauch:
“This (the planned rate reduction) should come as great relief to many Florida homeowners who have been suffering through this insurance crisis. Florida Peninsula Insurance’s dedicated analytics team did their advanced calculations and recommended a 2% decrease in premiums. We are happy to be able to offer this reduction to Florida residents. The industry is showing indications of stabilization thanks to the hard work of our state legislators.”
Now, we of course have hurricane season coming up, which always has the potential to negatively impact things. But the overall message is that the reforms are working, and we need to stay the course to ensure Florida’s property insurance market continues to get stronger.
Sign Up for a 2025 Florida Realtors Committee
Industry-changing ideas often start at a Florida Realtors committee meeting. The 2025 Florida Realtors Committee appointment process is open through May 15. Please consider applying if you are interested in getting more involved in the activities of the organization.
Dispelling 7 Myths About NAR's Proposed Settlement
NAR leaders have been talking to reporters and members full-time over the past month to correct the record about the association’s decision to resolve nationwide claims brought by home sellers. In order to help members challenge inaccurate information appearing in social media posts, news articles or elsewhere they have posted 7 myths/facts to use as a reference.
You can find that information here.
New Foreign Buyer Rules for Ag Land Take Effect
The Florida Department of Agriculture and Consumer Affairs Division of Consumer Services finalized its rules that prohibit certain foreign principals from owning, having a controlling interest in or acquiring more than a de minimis indirect interest in Florida land classified as agricultural by the property appraiser for tax assessment purposes as defined by s. 193.461, F.S.
The rules, which became effective on April 4, relate to the 2023 Florida law “Conveyances to Foreign Entities” in Florida Statutes Chapter 692. The registration portal can be found here.
There are distinctions between the new agricultural land rules and those previously published by the Department of Commerce regarding the registration of certain foreign principals with interest in properties proximal to military installations or critical infrastructure. Several of those are:
- The agricultural land rules provide fewer definitions of terms and some instances the terms are defined differently. For example, the new rules defining controlling interest in agricultural land contain different parameters than the rule defining controlling interest in real property. (with no parenthesis)
- The new rules cover the registration of certain foreign principals’ interest in a lease of agricultural property.
- The registration of equitable title has no exclusion for real estate contracts which are to close within 90 days of execution.
Realtors are not part of the registration process. Due to the complexity of the new law, Realtors should advise customers to speak to counsel about their legal responsibilities.
The full news article can be found here.
Fannie Mae, Freddie Mac Clarify IPCs
Fannie Mae and Freddie Mac said recently they will not count buyer agent commissions as part of allowable interested party contributions (IPCs).
The government-sponsored agencies (GSEs) said their guidance was not an update to their selling guidelines but a clarification to the treatment of seller-paid real estate agent fees.
“Buyer agent fees have historically been fees customarily paid by the property seller or property seller’s real estate agent, and, as such, they are currently excluded from these financing concession limits. If these fees continue to be customarily paid by the property seller according to local convention, they will not be subject to financing concessions limits,” Freddie Mac said in a statement.
Fannie Mae said in a statement, “If a seller or seller’s real estate agent continues to pay the buyer’s real estate agent commission in accordance with local common and customary practices, these amounts are not required to be counted towards the IPC limits for the transaction.”
After the Sitzer-Burnett verdict settlement announcement, NAR and the Mortgage Bankers Association of America asked the Federal Housing Finance Agency to confirm its position on buyer agent compensation and IPC limits. NAR and the MBA called it a “critical piece of the post-settlement puzzle.”
The clarification confirms that buyers whose agents are compensated by the seller will continue to have access to financing through the GSEs, Ken Fears, NAR’s director of conventional housing finance and valuation, said.
“Furthermore, so long as it remains ‘customary’ for the seller to pay commissions, those will not be added to the interested party contributions (IPC) and subject to the caps on IPCs,” he said.
“NAR will continue to press for access to affordable financing options and keep you up to date on any changes,” he said.
Read the full article here.
Please reach out to us at publicpolicy@floridarealtors.org with any questions you may have.
Sincerely,
Andy Gonzalez
Vice President of Public Policy
Florida Realtors®