Research Estoppel Fees in the Field

FLTA has been working towards a better solution with estoppel certificate fees, we need some help and a general understanding from the industry. Please take a couple minutes and let us know how estoppels are impacting your business and bottom line. We know there are issues, but what are the most common challenges? Is it the fees being added to the invoice; the challenge of collecting refunds for when a deal does not close; or the cash flow of fronting the payment until being paid at close?

 F. S. 720.30851(6), states “An association or its authorized agent may charge a reasonable fee for the preparation and delivery of an estoppel certificate, which may not exceed $250, if, on the date the certificate is issued, no delinquent amounts are owed to the association for the applicable parcel.”

Please complete this 10-question survey to help better understand what the industry is seeing.

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* 1. Do you see estoppel fees above the $250 permitted fee or $350 rush fee? *

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* 2. What percentage of estoppels have fees above $250? *

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* 3. What types of additional fees on an estoppel invoice do you see? *

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* 4. Do you see a standalone fee on a non-delinquent account higher than $250 or a rush $350 fee that does not include one of the fees mentioned in question #3?

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* 5. On a monthly basis, on average how much operating cash does your agency advance for estoppel certificates? *

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* 6. If you pay for the estoppel certificate upfront, have you lost advanced funds due to the transaction failing to close? *

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* 7. For transactions that do not close, do you generally seek a refund from the association or management company for the estoppel fee? *

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* 8. Approximately what percentage of the time do you actually receive a refund when requested? *

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* 9. If you could fix anything related to the estoppel fee, what would you focus on? *

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* 10. Has your agency had to absorb (take a loss) for estoppel rush fees due to the certificate expiring? *

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