FLTA - 2020 Estoppel Survey

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.

Question Title

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

Yes

Question Title

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

0%, we don't see fees higher than allowed

<25% of estoppel charges have higher than allowed amounts

25%-50% of estoppel charges have higher than allowed amounts

50%-75% of estoppel charges have higher than allowed amounts

75% or more of estoppel charges have higher than allowed amounts

Other (please specify)

Question Title

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

Archive Fee

Credit Card Fee

Transaction Fee

Storage Fee

Convenience Fee

None.

Other (please specify)

Question Title

* 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?

Yes

Question Title

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

Question Title

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

Yes

Our office does not pay upfront for the certificate.

Question Title

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

Yes

No - please explain.

Question Title

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

25%

50%

75%

100%

N/A

Question Title

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

Pay at close

Eliminate additional fees above $250 standard/$350 rush

Wouldn't change anything. It works the way it is.

Other (please specify)

Question Title

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

No.

Yes (please specify)