As a follow-up to previous discussion regarding Doc. Stamps Taxes on Short Sales, rumor had it, due to a widely circulated letter, that DOR had mandated the charge of Doc. Stamp taxes on the higher amount rather than the short sale amount. This is NOT true and is NOT the binding opinion of DOR. In fact, the letter containing that information was one employee’s opinion based upon a brief call to their 1-800 help line and pertained to only that case scenario. DOR is still reviewing this issue and has not reached closure. Again, this letter does NOT represent the official position of the Department of Revenue.

FAR has worked closely with DOR, at the highest levels possible, to explain, offer technical assistance, and help the staff understand the “short sale” transaction. FAR has also officially requested a Technical Assistance Advisory (TAA) with DOR in order to provide Realtors with a specific document to work from. While FAR is hopeful that an outcome favorable to all parties will occur (an advisory using the lower amount), an unfavorable outcome is possible. FAR has advised ECAR that they are prepared for that as well, including exploring possible “amnesty” avenues in the Legislative arena on past “short sale” transactions.

FAR has been working diligently on this issue now for a month, and on Tuesday (09/02/08) received word from the DOR that the TAA should be available soon. Advisories can sometimes take months, or even a year before a conclusion is made, so the DOR expediency illustrates their understanding of the importance of this issue.

For further information please contact Cliff Long, ECAR Government Affairs Director at 850 243-6145

Recently an ECAR Realtor^® experienced difficulty during a closing due to the inability of the buyer to secure homeowners insurance. They were told that there was a tropical system “in the Box” and that coverage was no longer being bound. Being that it was a tropical depression well south of Cuba, this seemed a bit absurd but the company was well within its rights in denying the coverage. Many people may not know what “in the box” means so here is a little information.

Whenever there is a named storm in “the Box" the insurer will cease binding new policies. There is not a statute or rule which describes "the Box", so each insurer can use whatever geographical area it wants, so long the information is filed with the O.I.R. Each company determines its own area, so no two “boxes” are exactly the same.

The purpose of eastablishing a “box” is to prevent someone without coverage from going out and buying a policy just before the storm arrives. The policy also applies to an increase in the amount of coverage. For further information please contact Cliff Long, ECAR Government Affairs Director at 850 243-6145