As the leaves turn and Halloween decorations adorn our neighborhoods, October brings with it not only spooky festivities but also a reminder to be vigilant in safeguarding our digital realms. In the spirit of Cybersecurity Awareness Month, we're here to shed light on the importance of cybersecurity in the world of real estate and title insurance while offering insights to keep your digital domain secure.

In an era where digital transactions have become the norm, the real estate and title insurance industry has rapidly embraced technology. While this shift has made processes more efficient, it has also opened new avenues for cyber threats, putting sensitive information and transactions at risk. In this blog post, we'll explore the world of cybersecurity in the context of the real estate and title insurance industry, providing insights and tips to help you stay secure in the digital frontier.

The Digital Transformation of Real Estate
The digital transformation in real estate has been a game-changer. From virtual property tours to e-signatures, technology has streamlined the home buying and selling process. However, with convenience comes risk, and it's crucial to be aware of the potential threats lurking in the digital landscape.

Wire Fraud: A Growing Concern
Wire fraud is a significant concern in the real estate industry. Cybercriminals have become increasingly sophisticated in their methods, often posing as legitimate parties in a transaction. Their goal? To divert closing funds into their accounts. To prevent falling victim to wire fraud, consider the following precautions:

• Verification Protocols: Establish clear verification protocols for verifying wire transfer instructions. Always confirm banking details via a trusted, independent source before transferring funds.
• Education: Educate your clients about the risks of wire fraud. Encourage them to independently verify any suspicious requests for funds.
• Secure Communication: Use secure communication channels and encrypted email services to share sensitive information.

Protecting Non-Public Information
The real estate and title insurance industry deals with a treasure trove of non-public information. From Social Security numbers to financial records, protecting this data is paramount. Here's how you can enhance data security:

• Access Control: Limit access to sensitive data to authorized personnel only. Implement strong password policies and consider multi-factor authentication.
• Data Encryption: Encrypt sensitive data both in transit and at rest. This ensures that even if data is intercepted, it remains unreadable.
• Regular Updates: Keep all software, including operating systems and security software, up to date. Regular updates often patch vulnerabilities that cybercriminals may exploit.

Cyber Insurance: An Added Layer of Protection
Consider investing in cyber insurance. While it may not prevent cyberattacks, it can provide financial protection in the event of a breach. Cyber insurance typically covers legal fees, notification costs, and even reputation management in the wake of a data breach.
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Stay Informed and Vigilant
Remaining informed about the latest cybersecurity threats and best practices is vital. Promote ongoing training for your team and stay current on industry-specific cybersecurity developments. Threats evolve, so should your defenses!

In the spirit of Cybersecurity Awareness Month, we encourage you to bolster your digital defenses and share this valuable knowledge with your peers. The key to navigating this digital frontier securely is education, diligence, and a proactive approach to cybersecurity. By implementing robust security measures, staying informed, and fostering a culture of cybersecurity awareness, you can protect your clients, your business, and yourself in an increasingly connected world. To further enhance your cybersecurity know-how and learn about Sun Life Title's commitment to security, explore our resources this October. As guardians of your real estate journey, we're here to keep your digital realm secure and your confidence intact.

​As a real estate agent in Florida, staying informed about the latest legislative changes is vital for your business success. In May 2023, the Florida Legislature enacted Chapter 2023-33, commonly known as Senate Bill 264, which could have a significant impact on your real estate transactions involving foreign entities. In this blog post, we'll break down the key provisions of Chapter 2023-33 and explain how it may affect your day-to-day operations and interactions with clients.

Understanding Chapter 2023-33
Chapter 2023-33 is designed to address the interests of specific foreign countries, including the People's Republic of China (PRC), Russian Federation, Islamic Republic of Iran, Democratic People's Republic of Korea, Republic of Cuba, Syrian Arab Republic, and the Venezuelan regime of Nicolás Maduro. The legislation aims to regulate real estate dealings involving select persons from these countries, referred to as "foreign principals," and ensure transparency in the process.

Key Provisions and Their Impact

1. Limitations on Real Property Ownership: Under Chapter 2023-33, select persons from foreign countries of concern are restricted from directly or indirectly owning, having a controlling interest in, or acquiring additional real property in Florida after July 1, 2023. This provision applies to various types of real estate, including residential, commercial, and agricultural properties.
2. Exemptions and Grandfather Clause: While the legislation imposes limitations, there are exceptions. For instance, a person may possess a "de minimis indirect interest" in land, which allows ownership of registered equities in a publicly traded company owning the land, provided the ownership interest is less than 5 percent. The act also includes a grandfather clause for property acquired before July 1, 2023, allowing continued ownership but barring the purchase of additional real property in Florida.
3. Registry and Registration Requirements: Foreign principals who qualify for exemptions or the grandfather clause must register with the Florida Department of Economic Opportunity (FDEO). Timely registration and updates are crucial to avoid civil penalties.
4. Criminal and Civil Penalties: Chapter 2023-33 imposes both criminal and civil penalties for violations. Foreign principals who acquire additional real property in Florida after the effective date may face misdemeanor charges. However, select persons from the PRC in violation of the legislation may be subject to felony charges.

What It Means for Real Estate Agents
As a real estate agent, you may encounter clients or investors from the mentioned foreign countries. Chapter 2023-33 requires you to exercise due diligence in ensuring compliance with the legislation during real estate transactions. You will need to be aware of the registry and registration requirements for foreign principals, and failure to comply may result in penalties for both you and your clients.
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Moreover, the legislation may influence the types of properties your clients can acquire and impact their long-term real estate investment strategies. It is essential to communicate these changes to your clients and guide them through the implications of the law to make informed decisions.

Conclusion
Chapter 2023-33 marks a significant development in the Florida real estate landscape, impacting transactions involving foreign countries of concern. As a real estate agent, staying well-informed about the provisions and requirements of the legislation is crucial to ensure successful and compliant dealings with foreign principals. Be proactive in explaining the implications to your clients and consult legal counsel when needed to navigate this complex regulatory environment. At Sun Life Title, we are here to support you and your clients throughout the process, ensuring your real estate transactions are secure, transparent, and compliant with the new regulations.

Blockchain technology has been making headlines in recent years as a game-changer in many industries, including finance, healthcare, and supply chain management. But what about real estate? In this post, we'll explore what blockchain is, how it works, and the potential impact it could have on the real estate industry.
What is Blockchain Technology?
At its most basic level, blockchain is a decentralized digital ledger that records transactions in a secure and transparent way. Unlike traditional ledgers, which are centralized and controlled by a single authority, blockchain allows multiple parties to access and update the ledger simultaneously. Each transaction is verified and encrypted using complex algorithms, making it virtually impossible to tamper with or hack.
Potential Applications in Real Estate
So, what does all this have to do with real estate? The potential applications are numerous and exciting. Here are just a few examples:

1. Streamlined Transactions: By using blockchain, real estate transactions could be completed faster, cheaper, and with less paperwork. Buyers and sellers could exchange assets directly, without the need for intermediaries like banks or lawyers.
   
2. Improved Transparency: Blockchain could increase transparency in real estate transactions by providing a secure and immutable record of every step in the process. This would make it easier to track ownership, title history, and other important details.
   
3. Enhanced Security: Because blockchain transactions are encrypted and verified, they are much more secure than traditional paper-based transactions. This could reduce the risk of fraud, theft, and other types of financial crime.
   
4. Smart Contracts: Smart contracts are self-executing agreements that are stored on the blockchain. They could be used in real estate to automate many aspects of the transaction process, from escrow to closing.
   

Implications for Realtors and Lenders
As with any new technology, there are both opportunities and challenges associated with blockchain in real estate. Realtors and lenders will need to stay informed about the latest developments and be prepared to adapt to a rapidly changing landscape. Some potential implications include:

1. Disruption of Traditional Business Models: If blockchain becomes widely adopted in real estate, it could disrupt traditional business models for realtors and lenders. For example, the role of intermediaries like brokers and banks could be reduced.
   
2. Increased Efficiency: On the other hand, blockchain could also increase efficiency and reduce costs for realtors and lenders. By streamlining transactions and reducing paperwork, it could make it easier and faster to close deals.
   
3. Need for Education: Finally, as with any new technology, there will be a need for education and training. Realtors and lenders will need to stay up-to-date on the latest developments and be prepared to educate their clients about the potential benefits and risks of using blockchain in real estate.
   

In conclusion, blockchain technology has the potential to revolutionize the real estate industry. While there are still many unknowns, it's important for realtors and lenders to stay informed and be prepared for what the future may bring. By embracing new technologies and adapting to changing market conditions, they can continue to provide value to their clients and thrive in an ever-evolving industry.

Tax season is upon us, and for many real estate investors in Florida, it means evaluating their options to minimize taxes while maximizing profits. One popular option is a 1031 exchange, which allows investors to defer paying capital gains taxes on the sale of an investment property if they reinvest the proceeds into a similar property.
But how exactly does a 1031 exchange work, and what impact does it have on the Florida real estate market?

First, let's break it down. A 1031 exchange gets its name from Section 1031 of the U.S. Internal Revenue Code, which outlines the rules for this type of transaction. Essentially, it allows investors to sell one investment property and use the proceeds to purchase another "like-kind" property without paying capital gains taxes on the sale.

So why would someone choose to do a 1031 exchange? For starters, it allows investors to defer paying taxes and reinvest the full amount of the sale proceeds into a new property. This can be a huge advantage, especially for investors who are looking to grow their portfolio and maximize their returns.

But there are some important rules to keep in mind when it comes to 1031 exchanges. For example, the new property must be of equal or greater value than the property being sold, and the entire transaction must be completed within a certain timeframe. Additionally, there are specific rules around how the sale proceeds can be handled, such as using a qualified intermediary to hold the funds during the exchange.

So what impact does this have on the Florida real estate market? Well, for starters, it can lead to increased demand for certain types of properties. Investors who are looking to do a 1031 exchange may be on the hunt for specific types of properties, such as multi-family units or commercial properties, which can create competition and drive up prices.

Additionally, it can lead to more activity in the real estate market as investors look to take advantage of this tax strategy. This can be a boon for realtors, who can help investors navigate the process and find the right properties to reinvest in. By leveraging their expertise and connections in the market, realtors can help investors make informed decisions and ensure a successful 1031 exchange. With the potential for increased business, it's an exciting time for realtors in Florida's thriving real estate market.
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Overall, a 1031 exchange can be a powerful tool for real estate investors in Florida. By deferring taxes and reinvesting the full amount of the sale proceeds, investors can maximize their returns and grow their portfolio. And with the help of a trusted title company, the process can be smooth and seamless, allowing investors and their agents to focus on what they do best - building wealth through real estate.

The short answer is, yes.

Should a delay occur, knowing what your clients legal rights and obligations are can help ease the stress on all involved.

Occasional closing disruptions caused by tropical storms and hurricanes include:

• Disruption of travel plans
• Availability of homeowners insurance
• Availability of needed approvals
• Pre-closing repairs
• Mortgage loan underwriting
• Closing services
• Unforseen property damage after the storm

Most Florida residential real estate contracts provide relief for these issues, including an automatic extension of 5 - 7 days if a “casualty” (e.g. fire, flood, extreme weather, or force majeure) prevents the buyer from obtaining insurance on the property at a reasonable rate or causes “services essential for closing” to be unavailable.

If the disruption continues 30 days after the “casualty”, either buyer or seller may terminate the contract.

A FARBAR Sales Contract-As Is (Residential Improved Property) form grants the exception only when the buyer is unable to get insurance due to extreme weather.

Once a hurricane or storm enters a certain proximity to the area, there might be a pause on issuing an insurance policy for a loan. If there is no insurance, a loan can’t close.

Most willing buyers and sellers usually agree to delay a closing rather than starting all over again.

If this content is helpful please share with clients and friends. Follow Sun Life Title on Instagram, Facebook and LinkedIn for more industry news and education.

​            The Miami Tower, famous for contributing to the third tallest skyline in the country and partaking in countless culturally iconic pop media, has been sold to the Boca-Raton-based CP Group for just $163.5 million. That is $56.5 million less than what it went for six years ago. Though Miami’s office rent growth is the strongest in the country, Miami Tower’s vacancy was nearly thirty percent. Yet, just a mile south, the 1221 Brickell Class A Tower sold for $286.5 million, marking a record for South Florida office deals since 2016. Why is there a seemingly stark difference between Brickell and Downtown?

            The answer, in short, is amenities. Between a global pandemic, record inflation with the Federal Reserve aiming to increase rates further, and the looming prospect of a recession, you’d expect an economic downturn. However, it appears that Miami’s lack of city and state tax, international allure, and geographical advantages is attracting investors. The trendy Brickell district has a corporate but modern vibrancy with no shortage of restaurants, retail, nightclubs, and other hot spots for young urban professionals. Brickell has proven to be the core of Miami’s banking, investment, and financial sector with rent increasing on an average of 13.7% annually.

            Brickell’s explosion into prominence is proving the CBRE’s Spring 2022 Occupier Sentiment Survey correct, where they revealed that most companies are back to developing long-term plans to expand or contract their office space now that employees are returning after nearly two years of mostly remote work. To avoid the high rent of Brickell, some companies are looking to relocate to Class A buildings Downtown. This is part of CP Group’s plan.

            In March, The CP Group bought the Bank of America Plaza in Atlanta and sunk an extra $50 million in renovating the lobby, adding a high-end restaurant, and adding other amenities to attract employees back to their desks. The CP Group has been very active as it also bought The Las Olas Square in Downtown Fort Lauderdale for $144.5 million.

            It’d be negligent not to mention that the annual rent growth in Miami and Fort Lauderdale are 16.9% and 16%. These two Florida cities are only behind Orlando which leads the nation in annual rent growth at a whopping 18.6% which is over eight percent higher than the national average. These figures have led to a new trend amongst investors and developers of repurposing aging offices and hotels into affordable housing for workers. In Orlando, we are seeing investors such as T2 and California-based Vivo Living buying hotels that have lost business due to the expansion of Disney’s value-category hotel rooms, converting the building into a unit property that contains studio apartments for rent under $1,000 per month. Similarly, The Estate Companies recently completed a hotel conversion in Hialeah, converting the old Ramada Inn across Westland Mall into 245 luxury studios and six one-bedrooms. According to representatives at the newly constructed Alture Westland, they are already at 98% occupancy with units costing roughly around $1,800 monthly.
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With all the continued activity in the market, it appears that the old adage ‘time in the market is better than timing the market’ holds true. Buy now, as the commercial real estate in major Florida cities, including Miami, is only on the rise.

Email us with your thoughts on commercial real estate in Florida, we'd love to get talking about how we can help you close on your next transaction.

Keep the conversation going. Share your thoughts on social media and tag us @sunlifetitle. 

Investor sentiment remains strong in South Florida. With record leasing volumes and consistent year-over-year rent growth, the market is still a hot spot for investment opportunities.

The trendy locations of Lincoln Road and Brickell have proven to be attractive to many businesses. Kaseya, the software company, has leased over 65,000 square feet within the last year. Other notable companies include Marsh Insurance, with 23,000 square feet leased, and Industrious Coworking, which leased 40,000 square feet.

Miami’s leasing activity has totaled more than 1.4 million square feet in the first quarter of 2022, making it the fourth straight quarter where leasing volume eclipsed the one million square feet mark. Currently, South Florida only has 900,000 square feet of sublet space which is less than 1% of Miami’s overall inventory. The office inventory listed for sublet nationally is just over 2%. In part, deal volume decreased during the early months of this year; however, that may be subject to change.

Recently, two development groups won initial approval from the city of Miami Beach to build office spaces in two city-owned parking lots on Lincoln Road. Combined, the two groups are looking to build 210,000 square feet of office space. Despite the additional supply, Miami’s strong leasing activity and rent growth should maintain as the demand for properties in South Florida remains high.

Watermark, a real estate investment trust, recently sold a twenty-five-hotel portfolio in an all-cash transaction of $3.8 billion to Brookfield Asset Management. Two of the hotels were the Ritz-Carlton of Fort Lauderdale and Key Biscayne. Early in May, a twelve-acre storage facility outside of Norland was sold to CenterPoint Properties for $47.5 million. The same property was bought in 2019 by Drake Real Estate Partners for just $12.5 million, further highlighting this combustible market. Not to mention, Miami’s office rent is 10% above where it was in 2020 at the start of the pandemic.

South Florida’s year-over-year 6% office rent growth leads the nation by nearly double. The closest to this figure would be Phoenix and Orlando with 3.4% and Tampa with 3%. With the expected jump in transactions due to increased supply, many experts believe that these numbers and the current investment market should maintain its strength for the foreseeable future.

Sources:
https://product.costar.com/home/news/shared/1507163206 https://product.costar.com/home/news/shared/14705873 https://product.costar.com/home/news/shared/15294341 https://product.costar.com/home/news/shared/1564033123

The national housing market index (HMI) has dropped once again, making this the fourth consecutive month that builders’ confidence has decreased in the U.S. The decline started from December where the index has slowly decreased from 84 to 79. NAHB Chief Economist, Robert Dietz, has stated that the “impact of elevated inflation and expected higher interest rates suggests caution for the second half of 2022.” However, the same may not be said for the state of Florida.

The NAHB Wells Fargo Housing Market Index asks builders to rate housing market conditions based on their experiences. The builders rate their sales expectations from “good” to “poor,” and rate traffic of prospective buyers from “very high” to “very low.” These responses are then placed into a formula to produce an index. About 400 responses are obtained each month.

Why should we listen to this survey? Builders, with their experience and close contact with local market conditions, provide information about current housing market conditions and how home sales are likely to behave in the future. This is why Wall Street firms, the Federal Reserve, and other government officials have used the HMI over the past few years.

The HMI has contributed this hesitancy to the increase in price of lumber and other building materials. Lumber prices have increased dramatically since 2020, going from $242.80 to $1,193.00 per thousand board feet. This has driven construction costs up by 20% over the span of 12 months. There is also an expectation for higher interest rates as the year progresses. With all this in mind, we can see why builders’ confidence has continued to decrease nearly everywhere in the United States except Florida.

We have seen approved construction sites in North Miami, a Broward trailer park marked for redevelopment, and new sales for an oceanfront condo in Miami Beach just this month alone. Let’s not forget about the multi-million, lavish Florida condo on top of the Tiffany & Co. in Palm Beach. Four of the six largest hotel markets in the U.S. since 2019 consist of Jacksonville, Miami, Tampa, and Ft. Lauderdale. Despite the pandemic, Florida’s population growth of 360,758 between April 1, 2020 and April 1,2021 was the strongest annual increase since 2005-2006. Between 2021 and 2025, Florida’s growth is forecasted to average 1.41%.
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All in all, with the population increase and steady tourism markets, Florida homebuilders should be optimistic as buyer demand remains solid.

 International Women's Day celebrates women's contributions and the vital role of women throughout history. It is a time to reflect on the cultural, political, and socioeconomic achievements of women. Managing Director Magda Loureiro shares a few thought on being a woman in the real estate and title industry.
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What is it like being the CEO and Managing Director of a company in a predominately and historically male industry?
​Throughout my 16 + year career in the real estate industry, I have had the pleasure of working with and being mentored by many inspirational entrepreneurial woman.

​I really have never felt that being a woman has been an obstacle in my career. On the contrary, I think my femininity and delicacy afforded me an advantage in being able to excel in the real estate and title industry.  I also vigorously support other female entrepreneurs in the industry and try to be a leader and mentor to the females that surround me.

If you could give your younger self advice, what would you say to her?
I would have probably told me to have fun, but not too much fun, and to invest in real estate as soon as possible.

Everyone always gave me the advise to find work that you love, but I think you need to look for work that makes you money so you can do the things you love.  I would tell myself to negotiate hard for the things I want. You cant be afraid of risk or failure or you will never excel in any career. The worst thing that can happen is that you don’t get what you want, so it never hurts to ask.

​I would tell myself to know my worth and make sure others can see it too. It's not about what you know, but who you know and a strong network and a recognizable brand will lead you to success.

What does it mean to be a woman today?
I think it is impossible to define what it means to be a woman in this short paragraph. A woman can be anything they want to be. I think some women were meant to be mothers and homemakers, and some were meant to be athletes and some were meant to be entrepreneurs and some, all three.

For me being a woman means living a life that I am proud of, filled with love and successful achievements and being surrounded by my family and friends who I can support.

​Miami is a flourishing and ever-growing city. A fast-paced environment that demands companies to follow its growth. Here, at Sun Life Title, we plan to keep you up to date on what’s happening around our community from the latest trends in the industry to upcoming events in South Florida. The goal is to help build a network for like-minded individuals to grow better together. We intend to keep you ahead of any market updates such as the FHFA’S announcement to increase upfront fees and to help inform you about the latest news when it comes to the title industry. With that said, welcome to Sun Life Title’s blog.

Earlier this year, the Federal Housing Finance Agency (FHFA) announced targeted increases to Fannie Mae and Freddie Mac’s upfront fees for certain high-balance loans and all second home loans; these loans only apply to government sponsored enterprises. A high-balance mortgage loan is defined as a conventional mortgage where the original loan amount exceeds the conforming loan limits published yearly by the FHFA but does not exceed the loan limit for the high-cost area in which the mortgaged property is located. The 2022 conforming loan limit for one-unit properties will be $647,200, while the loan limit for a high-cost area is $970,800.

The new fees will go into effect starting April 1st, 2022. The upfront fees for high balance loans will increase between 0.25 percent and 0.75 percent depending on the buyer’s loan-to-value ratio (LTV). Mortgage lenders use LTV to determine the risk of a loan: The higher your down payment, the lower your LTV ratio. For second home loans, upfront fees will increase between 1.125 percent and 3.875 percent.  Keep in mind, that upfront fees are typically reflected in the interest rate.

Most high-balance loans will be impacted unless they are part of certain protected programs— such as HomeReady, Home Possible, HFA Preferred, and HFA Advantage. First-time homebuyers in high-cost areas with incomes at or below 100% of the area median income will also be exempt from the new high-balance upfront fees.

At Sun Life Title, we plan to keep you ahead of the game through our newsletter and blog posts. Please reach out to us at info@sunlifetitle.com if you’d like to learn more about this month’s blog or if you’d like us to cover a specific subject with next month’s newsletter. Your feedback helps us cater to your needs.

Bibliography:
FHFA Announces Targeted Increases to Enterprise Pricing Framework | Federal Housing Finance Agency, https://www.fhfa.gov/Media/PublicAffairs/Pages/FHFA-Announces-Targeted-Increases-to-Enterprise-Pricing-Framework.aspx.

FHFA Announces Conforming Loan Limits for 2022 | Federal Housing Finance Agency, https://www.fhfa.gov/Media/PublicAffairs/Pages/FHFA-Announces-Conforming-Loan-Limits-for-2022.aspx.

“What Is a Loan-to-Value Ratio and How Does It Relate to My Costs?” Consumer Financial Protection Bureau, https://www.consumerfinance.gov/ask-cfpb/what-is-a-loan-to-value-ratio-and-how-does-it-relate-to-my-costs-en-121/#:~:text=The%20loan%2Dto%2Dvalue%20(,will%20require%20private%20mortgage%20insurance.