Posted by MSFlorida on 3/21/07 9:36am
Msg #181054

Butler Act Rebate

I apologize if this is a dumb question but I never heard of this.
I did a search on google and on here but nothing comes up. I have a client who
is asking if I am aware of this form. Please advise TIA.

Reply by MistarellaFL on 3/21/07 9:43am
Msg #181055

I have never heard of it either.
I googled Butler Act, found many about the 1925 (Darwin trial act), and also found one article that is put out by FSU: I think it may be appropriate to your query.
It's related to waterfront property....we have lots of that in Sarasota county.
Here's the link: http://www.law.fsu.edu/Journals/landuse/Vol142/wulbern1.htm
I will also be reading up on it.

Reply by MSFlorida on 3/21/07 10:26am
Msg #181061

OK I just got off the phone with client. I never heard it called this before but as soon as she told me what it was the dumb bell went off.
Butler Act Rebate is a rebate given to borrower when they show proof of previous Title policy Ins. they get a discount if they have one that was issued in the last I think its 3 years.
I have seen many packages with the offer for rebate for this but never heard it called the Legal term. Thanks for your help.

Reply by MistarellaFL on 3/21/07 1:24pm
Msg #181132

Thanks for sharing that Michelle.
I have never heard of that terminology either, and after reading that
article from the previous link,I had surmised that it probably was a rebate
offered by the govt. on waterfront property that had become underwater.
I appreciate your clearing that up.

Reply by MistarellaFL on 3/21/07 1:32pm
Msg #181135

Re: Butler Act Rebate-Looky what I found....

Butler Rebate
The Butler rebate in Florida refers to the Supreme Court decision in the 2000 case of Chicago Title Insurance Co. v. Butler, 2000 WL 1535354 (Fla. 2000). In 1992 the Florida Legislature enacted the following laws.
Require the Department of Insurance to establish rates to be charged for title insurance "risk premium" (i.e., an amount intended to cover the risk assumed by the insurer and agent in connection with issuance of a title policy, as distinguished from charges for related services such as closing and settlement costs).
To guarantee that 30% of the adopted "risk premium" would be paid to the title insurance underwriter.
To require that at least actual cost must be charged for related title services in addition to the adopted risk premium.

To prohibit the giving of "unlawful rebates" by a title insurer or title agent.
Butler argued that the anti-rebate law deprived him of his constitutionally protected right to negotiate a title agent’s commission. The Supreme Court agreed with him. In Florida there is now an available rebate on title insurance commonly referred to as the Butler Rebate. Many Florida title insurance agents will not offer this discount or will only provide it when the customer asks about it. Since many customers are not aware of the Butler Rebate they never ask and therefore pay more than they should.

Reply by PAW on 3/21/07 1:48pm
Msg #181137

Re: Butler Act Rebate-Looky what I found....

http://www.floridasupremecourt.org/decisions/pre2004/ops/sc95312.pdf