ChatGPT Can Now See, Hear, and Speak

Today, OpenAI began rolling out new voice and image features to ChatGPT Plus and ChatGPT Enterprise users.

Here is a list of the new ChatGPT features:

Take a picture from the ChatGPT app on your phone and then ask questions about the picture. Submit follow up pictures and text and get follow up responses.
Submit a picture to ChatGPT on your desktop or laptop computer and ask questions about the picture.
Speak directly to ChatGPT via your phone app and have ChatGPT recognize and respond to your words.
Interact with ChatGPT via voice. You speak, and ChatGPT will speak back.

If you have a subscription to ChatGPT Plus or Enterprise, you can check if you have access to the new features by going to the ChatGPT mobile app, going to Settings, and then checking if there is something called “New Features”. If so, then click to opt into voice conversations. Then, tap the headphone button located in the top-right corner of the home screen and choose your preferred voice for ChatGPT to use.

Next, you can check if you have a New Feature for images. Opt in as you did with voice.

If you don’t see the New Features section under ChatGPT Settings on the mobile app, and you have a subscription to either ChatGPT Plus or Enterprise, then don’t worry. You should get access to both the voice feature and the image feature within 2 weeks.

How do the new ChatGPT voice features work?

The new ChatGPT voice capability uses a new text-to-speech model built by OpenAI together with Whisper, an open-source speech recognition system.

Florida Real Estate Glossary

Accretion. Accretion is the gradual build up of land due to the deposit of sand or soil from a body of water that borders a person’s property. Accretion increases the amount of property someone owns. The sand and soil that build up are referred to as alluvion. The opposite of accretion is erosion. A related concept is reliction which is an increase in land area due to the gradual receding of a body of water such as a lake.

ADA = Americans with Disabilities Act of 1990.

Alluvion = the sand, soil, and/or other material that builds up during the process of accretion.

BPO = Broker’s Price Opinion. BPOs are not appraisals and are exempt from USPAP guidelines. BPOs are sometimes requested by relocation companies and lenders involved in short sales of distressed properties. A minimum of 3 properties are usually used for comparison, and these properties are usually within a mile radius of the property being valued.

BRDA = Brokerage Relationship Disclosure Act. This is a Florida law contained within F.S. chapter 745, sections 475.2701-475.2801. The BRDA disclosure requirements only apply to residential transactions. They do not apply to the rental or leasing of real property, unless an option to purchase residential real estate is involved.

Bundle of Rights. Property rights consist of a basic “bundle of rights” that include:

Possession — The owner’s right to possess or occupy the property.
Enjoyment — The owner’s right to enjoy his property without interference.
Disposition — The owner’s right to dispose of the property (i.e. to sell it or give it away).
Control — The owner’s right to decide how the property will be used, provided the use does not conflict with any laws (such as zoning laws) or community association rules.
Exclusion — An owner may put a “No Trespassing” sign or gate on the property which legally excludes others from entering.

CAM = Community Association Manager.

Caveat emptor = “buyer beware”. In a legal system that follows the principle of caveat emptor, the buyer alone is responsible for checking the quality and suitability of goods before a purchase is made. This is NOT how the current legal system in Florida works for real estate.

CC&Rs = Covenants, Conditions, and Restrictions. These are rules imposed by a community association such as an HOA, condo association, or neighborhood. They regulate the use, appearance, and maintenance of property.

CMA = Comparative Market Analysis. CMAs are not appraisals and are exempt from USPAP guidelines. A minimum of 3 properties are usually used for comparison, and these properties are usually within a mile radius of the property being valued. To produce a CMA, real estate licensees typically look at similar properties in the same area that are currently for sale, pending sales, or properties sold in the last 90 days. A CMA is often used to determine a listing price for a property.

Civil Rights Act of 1866 = The legislation which declared that all persons born in the U.S. were now citizens, without regard to race, color, or previous condition (meaning slavery). All citizens had the right to make and enforce contracts, sue and be sued, give evidence in court, and inherit, purchase, lease, sell, hold, and convey real and personal property.

Civil Rights Act of 1964 = Legislation passed by Congress which (1) outlawed discrimination based on race, color, religion, sex, or national origin, (2) prohibited unequal application of voter registration requirements, and (3) prohibited racial segregation in schools, employment, and public accommodations. In 2020, the Supreme Court decided it was also illegal to discriminate in employment based on sexual orientation and gender identity.

Initially, the Civil Rights Act of 1964 only granted weak enforcement powers. However, those enforcement powers were supplemented in later years.

Civil Rights Act of 1968 (a.k.a. The Fair Housing Act, or FHA). This is arguably the most important piece of legislation in all of real estate. The Act:

Prohibits discrimination in sales, leasing, advertising sales or rentals, financing, or brokerage services,
Prohibits discrimination based on race, color, religion, sex (added in 1974), national origin, handicap, or familial status (but not based on the marital status of couples, young age, occupation, or non service animal pets)

The Fair Housing Act applies to single-family homes and multifamily housing (from a duplex to a condo complex), but does NOT apply to owner-occupied buildings with 4 or fewer units, single family housing if owned by a private individual who does not own more than 3 single family homes at one time, or housing operated by organizations and private clubs that limit occupancy to members.

Specific acts that the Fair Housing Act prohibits are:

Refusing to rent. A simple refusal with no reason stated.
Quoting different terms. Quoting a higher price to a person of a protected group.
Discriminatory advertising. Advertising that states or implies a preference against a protected group.
Steering. Directing potential buyers or renters away from certain neighborhoods and towards others, based on protected characteristics.
Blockbusting. When a broker or sales associate mentions that a member of a protected class has purchased property nearby and uses rumor or innuendo that this will encourage owners to sell, usually at a lower price than actual value.
Redlining. When an insurer or lender defines certain neighborhoods on a map where they will not offer loans or write policies. Redlining on the basis of protected characteristics is illegal.
Denying membership. Denying membership in the MLS or other real estate service or professional organization, on the basis of protected characteristics.
False statements regarding availability. It violates the FHA to tell an interested buyer or renter that a property is no longer available when it is.

The 1988 amendment to the Fair Housing Act added familial status protection and housing for the handicapped, and it added a requirement that all real estate offices must display the “Equal Housing Opportunity” poster which is available without charge from the U.S. Dept of HUD. Failure to display the poster may be considered evidence of discriminatory practices.

See 42 U.S.C. chapter 45 – Fair Housing.

CO or C/L = Certificate of Occupancy.

COL = Cost of Living.

Comp = “comparable property”. A “comp” is a property used in a CMA or BPO to help estimate a property’s value. Comps are usually within a mile radius of the property being valued.

Concealment = Intentionally hiding information that would change a person’s decision about a real estate transaction if they knew the information.

Culpable negligence = (1) Recklessly acting without reasonable caution and putting another person at risk, or (2) failing to do something that could keep another person from suffering consequences because of one’s failure to act. For example, a sales associate who fails to divulge that there is no legal access to a property, even though the current owner has always driven through his neighbor’s property to access it, is guilty of culpable negligence.

Customer vs Client. Florida statutes define a customer as “a member of the public who is or may be a buyer or seller of real property and may or may not be represented by a real estate licensee in an authorized brokerage relationship. ” However, a client is defined as someone who has a legally binding contract with a broker. Agents may only give their advice and opinion to a client.

Dedication = land or amenities gifted to a local government by a developer (for example, sidewalks and streets in a new neighborhood).

Designated sales associate. In any real estate transaction other than a residential sale, and where the buyer and seller have assets of $1 million or more, the broker, at the request of the customers, may designate sales associates to act as single agents for different customers in the same transaction. Those agents are then referred to as designated sales associates.

DBPR = Florida Department of Business and Professional Regulation. The Division of Real Estate was established within the DBPR in 1982. The legislative intent of the DBPR is stated in F.S. 455.02.

DRE = Division of Real Estate. The Division of Real Estate is responsible for the examination, licensing, and regulation of individuals and businesses involved in real estate sales as well as real estate schools and instructors. The Division of Real Estate provides administrative support to both FREC and FREAB. FREC in turn administers and enforces the real estate license law. The Secretary of the Division of Real Estate is appointed by the Secretary of the DBPR, but must be confirmed by a majority vote of the FREC.

Dual agency. Dual agency is where a single real estate agent acts as a fiduciary on behalf of both the buyer and seller. In Florida, that is illegal because it is impossible to be a fiduciary for both buyer and seller at the same time. However, in a transaction broker relationship (the presumption unless a single agent or no brokerage relationship is established in writing with a customer), a broker provides limited (non-fiduciary) representation to a buyer, seller, or both, in a real estate transaction.

Additionally, the allowance for designating sales associates in certain commercial transactions at the request of the customers involved is a form of dual agency allowed under Florida law.

Easement. An easement is a right held by one person to use another person’s property or to prevent the property owner from doing certain things on their own property. A common example of an easement is an access easement which allows one person to drive over their neighbor’s land to access their property. Another example of an easement is a conservation easement which prevents the land owner from developing their land.

EMD = Earnest Money Deposit.

Estate. An estate denotes a relationship to real property. Different types of estates reflect the degree, quantity, nature, and extent of interest (ownership rights) a person has in real property. There are two general categories of estates:

Freehold estates last for an indefinite length of time.
Leasehold estates (or non-freehold estates) last for a fixed term defined by a lease.

There are several types of freehold estates:

Fee simple estate (a.k.a. fee estate or fee simple absolute estate). This type of estate carries the largest bundle of rights.
Life estate.
- Conventional life estate.
- Legal life estate.

You can read more about the types of estates in this article.

In Florida, a primary residence can often qualify as a “homestead“. A homestead is a legal life estate. The spouse of a deceased homestead owner receives a life estate, and the children who are lineal descendents receive a remainder estate. This is true even if the spouse was not on the title.

Homesteads also qualify for lower property taxes and protection from certain creditors. For example, in general, a credit card or personal loan creditor cannot force the sale of a homestead to repay debts. However, a homestead is NOT protected from real estate property tax creditors, mortgage creditors, HOA fee creditors, or construction loan creditors.

FHA = Federal Housing Administration.

Fixture = An item of personal property that has been affixed to real property and is now considered real property. Common examples of fixtures are sinks, toilets, kitchen cabinets, and ceiling fans. There are four factors that go into a legal test of whether or not something is a fixture:

Intent. Was the item in question attached with the intent of it being permanent? For example, a ceiling fan can be easily removed, but the owner usually installs a ceiling fan with the intention of keeping it installed permanently.
Method or degree of attachment. An item that is permanently attached by cement, plaster, nails, bolts, or screws and is attached to another permanent item is typically considered a fixture, especially if its removal would cause damage. For example, a kitchen counter is attached to the cabinets, which are attached to the floor, so both counter and cabinets are considered fixtures.
Agreement and/or relationship of the parties. If a dispute goes to court, the relationship between the parties is important. Residential tenants are typically required to leave behind anything they attached to the landlord’s property (for example, a shelving unit installed in the closet).
Adaptation of the item. Movable items can still be considered fixtures if they were custom designed or adapted to fit a specific part of the property (for example, custom blinds and shads, hurricane shutters, and hot tub covers would be considered fixtures).

A trade fixture is a fixture installed in a business that must be moved with the tenant to continue operations of the business.

Florida Administrative Code 61J2. This chapter of Florida administrative law sets out administrative rules developed by FREC.

Florida Administrative Register = A daily publication in which various state government agencies publish proposed rules.

FADAIA = Florida Americans with Disabilities Accessibility Implementation Act. This act integrated the ADA into Florida law. The accessibility requirements are the same as under the federal act.

FCHR = Florida Commission on Human Relations. This government commission was created by state legislature in 1969, and one of its duties now is to administer the Florida Fair Housing Act of 1983, as amended in 1989.

FFHA = Florida Fair Housing Act. This act was passed in 1983 and amended in 1989. The Act largely mirrors the federal Fair Housing Act. First offenses can carry a fine of up to $10,000, and repeat offenses can carry fines of $25,000 to $50,000.

Florida resident. For Florida real estate licensing purposes, a person is considered a Florida resident if they have continuously lived in the state for four months during the prior year or currently live in Florida and plan to remain fora period that will total at least four months in the current year.

Florida Statute Chapter 20. This statute defines the organizational structure of the Florida Executive Branch of Government. The DBPR was created under this statute.

Florida Statute Chapter 120. This statute is the Administrative Procedures Act. Its purpose is to ensure that agencies regulating businesses (such as FREC and the Florida Division of Real Estate) adopt and adhere to rules disclosing their methods of operation to the public, following a model established by the Administration Commission.

Florida Statute Chapter 455. The purpose of this chapter is to ensure that individuals who engage in certain professions are licensed, including those in the real estate profession. It outlines general legal practice and procedure for the DBPR. It also mandates how the DBPR may regulate licensees. Licensees who fail to comply with the provisions of this chapter can be disciplined by the FREC.

Florida Statute Chapter 475 (Real Estate Law). This chapter establishes the legal rights and responsibilities of real estate sales associates, brokers, and appraisers. It has 4 parts:

Part I concerns real estate brokers, sales associates, schools, and appraisers.
Part II concerns real estate appraisers and establishes the requirements for licensed and certified appraisers according to federal statute.
Part III is the Commercial Real Estate Sales Commission Lien Act, which gives a broker the right to place liens for earned commission. This right only applies to commercial property.
Part IV is the Commercial Real Estate Leasing Commission Lien Act, which gives a broker the right to place property liens for earned commission related to a brokerage agreement to lease commercial real estate.

FRA = Florida REALTORS Association.

FREAB = Florida Real Estate Appraisal Board (the body which regulates licensing and requirements for appraisers). If a scope of work includes the terms “appraise” or “appraising”, then those appraisal services MUST be performed only by a state (FREAB) certified appraiser. FREAB certifies appraisers as either “residential appraisers” (only qualified to appraise residential real property of 1-4 units) or “general appraisers” (qualified to appraise any type of property).

FREC = Florida Real Estate Commission (the state government body which regulates licensing for real estate sales associates and brokers). FREC is empowered to pass rules that enable it to implement its statutorily authorized duties and responsibilities. These responsibilities include:

Educating real estate professionals (e.g. through license renewal regulations that include FREC-approved post-licensure and CE courses)
Administering the Florida Real Estate Education & Research Foundation
Enacting bylaws for FREC’s own governance
Making rules for the practice of real estate
Deciding questions of real estate practice
Establishing licensing fees
Creating a seal to be used on official documents

FREC is also empowered to:

Deny or approve a real estate license renewal
Place a licensee on probation
Revoke a license
Suspend a license for up to 10 years
Impose a fine of up to $5,000 for disciplinary offenses
Deny or approve the curriculum and course content of real estate schools, colleges, universities, community colleges and technical schools

The proc e ss for these actions is:

Complaint
Investigation
Review
Formal complaint
Licensee informed (then has 21 days to request a formal or informal hearing before a judge)

FREC has 7 members, appointed to 4-year staggered terms. Four of the members are licensed brokers, one is a broker or sales associate, and two are members of the public who have never been licensed as real estate professionals (and one of them must be at least 60 years old). FREC members are appointed by and accountable to the governor. The FREC meets once a month at DRE headquarters in Orlando. At least 4 members must be present to constitute a quorum.

FREC has executive, quasi-legislative, and quasi-judicial powers.

Group license. A group license is granted to a sales associate or broker associate that works for an owner/developer to sell various properties owned by the owner/developer. The owner/developer must prove that although the business entities holding the various properties have different names, they are connected by ownership.

HCOL = High Cost of Living.

Homestead. A homestead is a legal classification for someone’s primary residence. If someone owns their primary residence, that property likely qualifies as a homestead under Florida law. Homesteads have lower property tax bills, are protected from certain creditors (e.g. credit card debt creditors but not mortgage creditors), and automatically pass to a homesteader’s spouse even if that spouse is not listed on the title (i.e. the spouse of a deceased homestead owner receives a legal life estate in the property, with the lineal descendents of the owner receiving a remainder estate).

HUD = Federal Department of Housing and Urban Development. HUD maintains construction standards.

IDX = Internet Data Exchange.

ILSFDA = Interstate Land Sales Full Disclosure Act of 1968. This federal law requires that subdivision developers register with the Consumer Financial Protection Bureau (CFPB) and comply with certain other rules. However, the Act does not apply to subdivisions with fewer than 25 lots, improved property, or sales to builders.

Jones v. Mayer = An important U.S. Supreme Court case in 1968 which, based on the Civil Rights Act of 1866, reversed many precedents. The Court ruled that Congress could regulate the sale and rental of both public and private property to prevent racial discrimination and could pass effective laws and prosecute anyone who disobeyed them.

Littoral rights. Littoral rights are water rights that attach to the ownership of land that borders an ocean, lake, or pond (i.e. bodies of water that do not flow, in contrast to riparian rights which are water rights attached to land bordering water flows).

LO = Loan Originator or Lease Option.

MLO = Mortgage Loan Originator. An MLO is an individual who takes a residential mortgage loan application and offers or negotiates terms of a mortgage loan, for compensation or gain. MLOs must be licensed by the Nationwide Multistate Licensing System & Registry (NMLS) as prescribed by the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (the SAFE Act).

MLS = Multiple Listing Service.

Moral turpitude = A legal term for conduct that goes against generally accepted standards of decency, honesty, and ethics. Examples include embezzlement, theft, and purposeful lying.

NAR = National Association of Realtors. NAR is the nation’s largest real estate trade and professional association. The institutes and societies of the NAR issue professional designations such as:

Certified Property Manager
Certified Real Estate Brokerage Manager
Certified Residential Specialist
Accredited Land Consultant
Certified Commercial Investment Manager
Counselor in Real Estate
Residential Accredited Appraiser
General Accredited Appraiser

Real estate agents who become members of NAR are called REALTORs.

There are 52 local REALTOR associations (usually called “boards”) in Florida. NAR members may choose which board they wish to join, and members can take advantage of the services of other boards without needing to join them. Joining a local NAR board also gives you membership in both the state and national associations. Only NAR members have access to an MLS.

OF = Owner Financing.

Personal property (a.k.a. chattel or personalty) consists of items which are easily movable from one place to another. For example, furniture, rugs, and desks are all considered personal property.

PITI = Principal, Interest, Taxes, and Insurance.

Plat map. A subdivision plat map is a large scale map showing the boundaries all property lots in a planned subdivision, along with the location of sidewalks, streets, and utility infrastructure. If a developer wishes to subdivide a large piece of land, they would hire surveyors and engineers who specialize in subdividing to create a plat map. The developer would then submit their subdivision plat map for review by the county or city planning commission.

PMI = Private Mortgage Insurance.

POF = Proof of Funds.

Real property. Florida state law defines “real property” or “real estate” as any interest or estate in land, or any interest in business enterprises or business opportunities, including any assignment, leasehold, subleasehold, or mineral right. However, the term does NOT include any cemetery lot, right of burial in any cemetery lot, or the renting of a mobile home lot or RV lot in a mobile home park or travel park.

Reliction. Reliction refers to either (1) the gradual, permanent recession of water, leaving land that used to be underwater now permanently uncovered, or (2) the land that has been uncovered by the process just described.

Remainder estate. If Bob grants a life estate to his wife Alice and a remainder estate to their child Greg, then Alice owns the property until her death, at which point Greg will gain fee simple ownership of the property. While Alice is still alive, it is said that Greg owns a remainder estate in the property. In this situation, Greg is called the remainderman.

REO = Real Estate Owned (by a bank, lender, or government agency — typically after an unsuccessful sale at a foreclosure auction).

Residential sale. As used in the Florida BRDA (Brokerage Relationship Disclosure Act), the term “residential sale” means the sale or purchase of improved residential property of four units or fewer, the sale of unimproved residential property intended for the use of four units or fewer, or the sale of agricultural property of 10 acres or fewer.

Reversion estate. If Bob grants a life estate to Alice and does not grant a remainder estate to anyone else, then Bob retains a reversion estate which means he will regain ownership of the property upon Alice’s death. If Bob dies before Alice, then the reversion estate will pass to Bob’s heirs who will in turn inherit the property upon Alice’s death.

Right of survivorship. Suppose Bob and Chad co-own a property, and Chad dies. If Bob automatically gains full ownership of the property, regardless of whether Chad had a will that tried to convey Chad’s interest in the property to someone else, then Bob has a right of survivorship. This is the case when Bob and Chad co-own the property via a joint tenancy. However, if Chad’s interest in the property passes to his heirs upon his death (as would happen if Bob and Chad were tenants in common, rather than joint tenants), then Bob does NOT have a right to survivorship.

Riparian rights. A riparian right is the right of a landowner who’s property meets the shoreline of a river or stream to make reasonable use of the water so long as such use does not interfere with other property owners who are already using the water for other purposes.

Severalty-sole ownership. This is the type of ownership where 1 person owns an entire property and is the only person on the title. Only this one person is needed to sign the deed to transfer the property UNLESS the property is homesteaded, in which case the person’s spouse (if they have one) is also required to sign since that spouse has the right to a life estate if the title holder dies.

SFR = Single Family Rental.

STNL = Single Tenant Net-Lease. This term is used to refer to a commercial real estate building that is exclusively leased by one tenant (usually a big-name tenant such as Walgreens, McDonalds, AutoZone, etc) who pays many of the maintenance costs of the building.

Tenancy in common refers to a form of co-ownership of a property. In a tenancy in common, each co-owner has the right to possession, and there is no right of survivorship which means if one owner dies, his interest passes to his heirs, not to the other owner(s).

TIC = Tenancy In Common.

Transaction broker. In a transaction broker relationship, a buyer or seller is not responsible for the acts of a real estate licensee (sales associate or broker) they are working with.

Unlawful detainer. An unlawful detainer is a legal remedy (similar to, but different than an eviction) that can be used by an owner of residential or commercial property to have someone who isn’t a tenant removed from your property. Unlike an eviction (which is used to remove a tenant with a lease), an unlawful detainer is used to remove a non-tenant without a lease.

An unlawful retainer could be used to remove a squatter or an invited guest who has overstayed their welcome. After the owner has asked the occupant to leave and the occupant has refused, the owner can go to court to obtain an unlawful detainer.

Through an unlawful detainer action, a property owner can claim both possession of the property as well as damages. The owner does not have to give the occupant advanced notice before filing a claim for unlawful detainer, but must notify the defendant after the claim is filed.

USPAP = Uniform Standards of Professional Appraisal Practice (guidelines that all appraisal reports must follow). USPAP was developed by the Appraisal Standards Board. USPAP dictates that appraisals can be done for a flat fee or based on time and effort required by the appraiser, but not based on a percentage of the property value.

Water rights. Florida law recognizes 2 types of water rights:

Riparian rights. The owner of a property which meets the shoreline of a river or stream (a flowing water body) has reasonable rights to use that water if the use does not impair its use by others or cause pollution.
Littoral rights. The owner of land that borders an ocean, lake, or other non-flowing water body has certain rights to use that water.

How the Florida Real Estate Recovery Fund Works

The Florida Real Estate Recovery Fund is a state government fund held for the purpose of reimbursing individuals and businesses who win civil monetary judgments against real estate brokers and sales associates that can’t be fully covered by the real estate professional’s personal assets.

The Real Estate Recovery Fund is a separate account in the Professional Regulation Trust Fund, and it only pays out AFTER damages are first paid from the broker’s or sales associate’s personal assets. However, the Fund’s payouts are limited to $50,000 for each judgment or $150,000 for multiple judgments, so there may still be a gap between (1) the total court-awarded monetary damages and (2) the combined payout from the Fund and the real estate professional against whom the judgment was awarded.

The fund is only available to compensate parties with judgments for monetary damages levied against licensed real estate professionals who were acting in their professional capacity in the transaction subject to the judgment. That means, for example, if Bob wins civil monetary damages from Joe for his fraudulent conduct as a seller in a real estate transaction, then even if Joe is a licensed real estate professional, Bob can’t claim money from the Real Estate Recovery Fund because the damages are related to Joe’s actions as the seller of real estate, not any role that Joe played as a licensed real estate professional.

Which transactions are covered by the fund?

The fund can only cover damages for transactions that:

Involve Florida real estate,
Involve a violation of some part of F.S. chapter 475,
Involve an accused real estate professional who held a current, valid, active real estate license at the time the alleged violation occurred (e.g. no fund payouts for damages against unlicensed people offering real estate services),
Involve a real estate licensee who is accused of violations while acting in their professional capacity in the transaction (e.g. no fund payouts for a licensee for improper conduct while acting in the role of seller or buyer rather than in the role of sales associate or broker),
Involve an accused licensee who, if the alleged violation was proscribed in 475.25 or 475.42, acted SOLELY in their capacity as licensee in the transaction, and
Do NOT involve an accused licensee who also owned or controlled property involved in the transaction (e.g. the licensee was the seller, buyer, landlord, or tenant in the transaction, or an officer, director, or member of a company which was the seller, buyer, landlord, or tenant in the transaction).

The Real Estate Recovery Fund may also reimburse a broker who followed a FREC order for a disbursement of escrow but is later sued by one of the parties. However, we will ignore this case in the rest of this article.

People NOT eligible to make a claim against the fund

The spouse of the judgment debtor or a personal representative of the spouse,
A licensee who acted as a single agent or transaction broker in the transaction subject to the claim, or
Any person whose judgment is against a real estate brokerage corporation, partnership, LLC, or LLP.

Consequences of payouts

When a payment is made by the Real Estate Recovery Fund on behalf of a broker or sales associate, the judgment awardee surrenders any additional claims to the fund, and the license of that real estate professional is automatically suspended until he or she has paid back the money plus interest. This applies even if the licensee files for bankruptcy.

Limitations on fund payouts

The Real Estate Recovery Fund will only payout a maximum of $50,000 per transaction, regardless of the number of claimants or parcels of real estate involved in the transaction, and a maximum of $150,000 for multiple judgments against any one broker or sales associate. However, such payouts can only go towards the unsatisfied portion of a person’s judgment which is actual or compensatory damages. Except in the case of brokers being reimbursed for legal expenses when sued for paying out escrow funds under a FREC order, treble damages, court costs, attorney’s fees, and interest are not recoverable from the fund.

How is the Real Estate Recovery Fund funded?

Licensees pay fees into the fund each time they obtain or renew a license. The fee is $3.50 per year for brokers and $1.50 per year for sales associates. The fund also collects interest any time a real estate professional pays back the fund, and the fund is invested to earn investment income.

Once the fund balance reaches $1 million, the fees are no longer collected until the fund balance drops below $500,000.

References

The 7 Steps of the Florida Real Estate Licensee Disciplinary Process

Artwork illustration the Florida real estate licensee disciplinary process

If a real estate licensee (sales associate, brokers associate, or broker) in Florida is suspected of misconduct, there is a 7 step process in order to ascertain whether or not such misconduct actually occurred and if so, what the remedy will be. These steps are:

Complaint filed
Investigation
Probable cause determination
Formal administrative complaint
Informal or formal hearing
Recommended and final order
Judicial review (appeal)

A disciplinary process may terminate after only a few of these steps, but it can also go through all 7 steps. Let’s take a look at each step in detail.

1. Complaint filed

Complaints against real estate professionals are filed online or by mail with the DBPR, and the filing procedure is the same as for all professionals regulated by the DBPR. Complaints may be filed against real estate licensees, real estate license applicants, or unlicensed persons accused of offering real estate services. Anyone can file a complaint, and complaints can even be filed anonymously.

The complaint itself must be “legally sufficient“, meaning that the person who is the subject of the complaint must have allegedly violated a real estate related law, DBPR rule, or FREC rule. All allegations and supporting documentation must be provided to the DBPR at the time the Uniform Complaint Form is filed.

Some of the most serious accusations can include:

Fraud
Misrepresentation
Concealment
Commingling of escrow or trust funds with operating funds
False promises
False pretenses
Dishonest dealing by trick, scheme, or device
Culpable negligence
Breach of trust
Failure to account for, deliver, or maintain escrowed property
Violating a duty imposed upon him or her by law or by the terms of a contract

Each of the violations above would result in more than a citation and fine. However, complaints can also be filed for minor violations.

Minor violations

To be considered minor, a violation must not result in any of the following:

Economic or physical harm to any person,
Adverse effects on public health, safety, or welfare, or
A significant threat that the public may be harmed.

Here are some examples of common minor violations for real estate associates and brokers, along with the relevant citation fines:

Broker failure to comply with signage requirements ($100)
Sales associate or broker associate serving as an officer or director of a registered brokerage corporation ($500)
Sales associate operating as a sales associate without a registered employer due to failure to renew or properly register ($500)
Failure to timely notify the DBPR of the current mailing address or any change in the current mailing address ($500)
False or illegal advertising that is not fraudulent or otherwise criminal ($500)

However, for first offenses, the DBPR issues an initial notice of noncompliance before issuing the citation and fine. The initial notice explains the statute or rule that has been violated and provides information on how to comply. The offender then has 15 days from when the notice is received to comply.

Initial notices of noncompliance will NOT necessarily be sent for second or later offenses.

2. Investigation

When the DBPR receives an anonymous complaint in writing, an investigation will begin if 3 conditions are met:

The DBPR determines that the complaint applies to an illegal action,
The allegation is substantial enough to be investigated, and
There is reason enough to believe that the complaint may be true.

If a complaint is filed and then later withdrawn, the DBPR may or may not continue with the investigation.

When an investigation of a subject is undertaken, the DBPR forwards a copy of the complaint to the subject unless the allegations involve a criminal violation. If it is apparent that any criminal violation has taken place, the FREC will promptly report it to a government prosecuting authority.

If the DBPR’s investigation determines that a (non-criminal) complaint is valid, it will send you or your attorney a notice at which point you may respond with any relevant information and documentation.

At any point during the investigation or later hearing, the DBPR or FREC may decide that allowing the licensee to continue to work would pose a danger to the public. In that situation, the DBPR Secretary can issue a Summary Suspension (also called an Emergency Suspension) to suspend the license of the alleged violator until the conclusion of disciplinary action.

3. Probable cause determination

Once the investigation is complete and legally sufficient, the DBPR will prepare and submit an investigative report to the Probable-cause Panel of the appropriate regulatory board. The report will contain the investigative findings and the recommendations of the DBPR concerning the existence of probable cause. The purpose of the Probable-cause Panel is to determine if there is probable cause to issue a formal complaint against the alleged violated. The Panel must reach a decision on whether such probable cause exists within 30 days of receiving the investigative report.

For real estate matters, the Probable-cause Panel consists of two members:

One current FREC member
One former FREC member

And at least one of those two members must hold a current real estate license.

Other current FREC members are not allowed to attend Panel meetings so that they maintain their objectivity.

If the Panel decides the case should be dismissed, it will issue a a letter of guidance to the subject of the investigation as well as the broker who employs the licensee. The letter is also retained in the subject’s DBPR file.

4. Formal administrative complaint

If the Probable-cause Panel finds that probable cause exists, then a Formal/Administrative Complaint is filed. This complaint includes all allegations and charges against the licensee and is sent to the licensee by mail or email. An Election of Rights form is included with the Formal Complaint, giving the person charged with violation 3 courses of possible action to decide among:

Dispute the allegations and request a formal hearing,
Do not dispute the allegations and waive a hearing, or
Do not dispute the allegations and request an informal hearing.

However, a licensee may also ask for a stipulation, which is a statement of the facts of the case. To do this, a licensee should (but is not required to) retain legal counsel. The licensee or their attorney then meets with an attorney for the Division of Real Estate to create the stipulation which must thereafter be approved by both the FREC and the DBPR. The licensee or their attorney will then ask for a Settlement of Penalty where an arrangement is worked out between the attorneys regarding the penalty for the licensee. This is sort of like out-of-court settlement and avoids a formal or informal hearing. The Settlement of Penalty must also be approved by the FREC and the DBPR.

5. Informal or formal hearing

Informal hearing

If the licensee does NOT dispute any material facts, then the case can be presented in an informal hearing before the FREC. This hearing is usually held at a regular FREC meeting, and anyone who served on the Probable-cause Panel does not attend the hearing. The licensee may present his or her case with the support of documented evidence and/or witnesses. The FREC then decides whether the licensee is guilty as well as what penalties to apply if so. The FREC then issues its conclusions in a Final Order. If the licensee disputes any material facts during the informal hearing before the FREC, then the case will be referred to the DBPR for a formal hearing.

Formal hearing

If the licensee disputes any material facts, then the case will go to a formal hearing with the DBPR, unless the licensee or their attorney requests a stipulation. At the request of the DBPR, the hearing will be conducted by a full-time administrative law judge. That will make the two litigating parties the DBPR and the alleged violator. The judge may inspect records for facts, hear evidence, and listen to witnesses. The alleged violator is also entitled to speak on his or her own behalf or may be represented by an attorney. Within 90 days of the formal hearing, the administrative law judge must rule on the case and submit a Recommended Order to all concerned parties. The parties involved have 15 days to file exceptions to a Recommended Order, after which it is submitted to the FREC. The purpose of filing an exception is 2-fold: (1) to convince the FREC why the Recommended Order should not be accepted as a whole; and 2) to set the stage for a later appeal, should the FREC disagree.

A licensee may choose to voluntarily surrender (relinquish) their license for permanent revocation. Voluntary relinquishment while a disciplinary action is underway will mean the relinquishment will show as an action against the licensee, and it means the licensee can never again practice real estate in Florida. Why would someone agree to this? Possibly as part of a Settlement of Penalty negotiation in order to get a lower fine or other less ominous penalties.

6. Recommended and final order

If a formal hearing is held, then the administrative law judge will issue a Recommended Order. The FREC will then review the Recommended Order and issue its own Final Order, which is a final verdict of innocence of guilt, as well as any penalty imposed. The Final Order may accept, modify, or reject the administrative law judge’s Recommended Order and impose those penalties at FREC’s discretion. That means the FREC, not the administrative law judge, makes the final decision of penalty and action taken against the licensee.

The FREC must issue its Final Order within 90 days of receiving the Recommended Order.

The Final Order becomes effective 30 days after it is issued, and, except in the case of a Summary Suspension Order, the real estate licensee may continue to practice real estate during those 30 days.

F.A.C. 61J2-24.001 Disciplinary guidelines

7. Judicial review (appeal)

A licensee may appeal the Final Order within 30 days of receiving it. The appeal must be filed with the DBPR and the district court of appeals. If the Final Order involves license suspension or revocation, the licensee may request a stay of enforcement to stop such action until the appeal has been heard.

If the appeals court agrees to hear the case, they can issue a writ of supersedeas to place the stay of enforcement.

The court also has the power to reverse the FREC’s Final Order and issue a writ of mandamus (a type of court order to the FREC to reinstate the licensee’s privileges).

If the Florida District Court of Appeals agrees with the FREC, the licensee can appeal one step further to the Florida Supreme Court.

Types of violations

FREC does not have the authority to issue penalties for criminal activity — only a court of law can do that. The strongest penalty that FREC can impose is a permanent revocation of a real estate license and the imposition of a maximum fine of $5,000 per violation of F.S. chapters 455 and 475.

Penalties issuable by a court of law

Violations of F.S. 475.42(1) items a through n constitute second-degree misdemeanors.
Failing to provide accurate and current rental information for a fee is a first-degree misdemeanor, and the license of any broker or sales associate who participates in any rental information transaction which is in violation of the law is subject to suspension or revocation by the FREC.
An individual who believes they have a case against a broker or sales associate can initiate a civil court case without filing a complaint with the DBPR.
Operating as a broker or sales associate without a license is a third-degree felony punishable by a fine of up to $5,000 and/or up to 5 years in jail.
Providing false or fraudulent information on an application for licensure or renewal may cause the licensee to be charged with a third-degree felony.

Quick Guide to Real Estate Brokerage Business Regulations in Florida

Artistic illustration of Florida real estate rules

This article provides a quick overview of the laws and regulations that govern the conduct of real estate brokerage businesses in Florida.

Types of business entities that may register as a brokerage

Sole proprietorships
General partnerships
Limited partnerships
Corporations (both for-profit and not-for-profit corporations may be brokerages)
Limited liability companies (LLCs)
Limited liability partnerships (LLPs)

Sales associates are prohibited from being an officer or director in a real estate brokerage corporation, or a general partner in a brokerage limited partnership. Only licensed real estate brokers can hold such positions.

F.S. 475.15 Registration and licensing of general partners, members, officers, and directors of a brokerage

Types of business entities that may NOT register as a brokerage

Corporation soles (a type of religious organization)
Single-transaction joint ventures
Business trusts
Cooperative associations

Trade names

An individual broker, partnership, or corporation may use a trade name (fictitious name). However, sales associates may not use trade names. For example, if Greg Watson works for Sunshine Realty, he cannot register his license as “Watson Realty”. He can only use his legal name, Greg Watson.

However, the Florida Department of State and FREC may approve an LLC, PLLC, or professional corporation (PC) entity for a real estate agent. For example, Greg Watson might get approval to use the name “Greg Watson LLC”.

Broker and branch offices

Every real estate broker who is in the business of brokerage (as opposed to acting in a broker associate role) must have at least one office. Each branch office must be registered with the DBPR and must consist of at least one enclosed room in a building of stationary construction (e.g. not an RV) where real estate transactions may be conducted in privacy. A broker can have more than one office, but each office must be registered with the DBPR and meet the requirements just mentioned.

A broker is allowed to have a branch office in his or her home so long as zoning laws permit.

If a branch office is moved, a new registration is necessary, and the broker must notify FREC of the change of address within 10 business days of the move.

A sales associate or broker associate may NOT work form an office of his or her own.

On or near every broker’s office, there must be an obvious and easy to read sign with the business or trade name along with at least one broker’s name and the words “Licensed Real Estate Broker”. The names of other brokers, sales associates, and brokers associates can be listed below, but are not required to be listed. If they are listed however, then each name must be listed next to the license they hold (e.g. “Sharon Williams, Licensed Sales Associate”).

NOTE: A temporary shelter in a subdivision being sold by a broker is only for the protection of salespersons and customers. Transactions must not be closed in a temporary shelter, nor salespersons permanently assigned to such a shelter. If a temporary shelter satisfies those conditions, then it does not need to be registered as a branch office.

Broker advertising rules

Real estate ads include letterhead stationary, flyers, door hangers, business cards, yard signs, billboards, newspaper and magazine ads, radio and TV ads, internet ads, promotional materials, giveaway items, and any other materials used to attract or retain brokerage business.

Ads cannot be fraudulent, false, deceptive, or misleading. The first offense penalty for false advertising is a fine of $250 to $1,000 and a 30- to 90-day license suspension. The second offense penalty is a fine of $1,000 to $5,000 and either a 90-day license suspension or a license revocation.
A broker cannot use the logo of a professional organization (such as that of the National Association of REALTORS) unless he or she is currently a member of that organization.
All real estate advertisements must include the licensed name of the brokerage firm. Using an ad that does not contain the licensed name of the brokerage is called “blind advertising”. If a blind ad is placed by any employee or contractor (including a sales associate) working on behalf of the broker, the broker will be held responsible.
When a licensee (broker or sales associate)’s name appears in an ad, the licensee’s last name must match how it is registered with the FREC. For example, a sales associate registered as “Alice Jill Gray” may advertise as “A. J. Gray, Licensed Sales Associate, Florida Sky Real Estate” but not as “A. G., Licensed Sales Associate”.
Sales associates may NOT advertise or conduct business in their own name. Sales associates and broker associates may place ads as part of their duties under their broker, but they must always list the broker’s name and the brokerage’s trade name.
Internet ads must place the brokerage firm name adjacent to, immediately above, or immediately below the point of contact information. Point of contact information refers to any means by which the brokerage firm may be contacted (e.g. mailing address, physical street address, email address, telephone number, or fax number).

Things NOT required:

FREC does NOT require that a brokerage firm’s phone number or address be included in ads. In fact, brokerages are not even required to have a phone number.

Relevant laws & regulations:

Rental advertising rules

Before a broker offers to find rental property for a tenant in exchange for a fee, the broker must first provide the DBPR with a copy of the contract it will be using 30 days before it begins providing the rental search service.

Additionally, Florida law requires that the contract disclose to potential renters that:

If the tenant is unable to find a suitable rental property, they can provide notice to the broker within 30 days of signing the search contract and will be entitled to a 75% refund of the fee paid.
If the broker or a sales associate materially misrepresents the rental property as being what the prospective tenant seeks, the prospective tenant is entitled to a 100% refund of the fee they paid (but again only if a demand for such refund is made within 30 days of when the fee was paid).

Advertising erroneous rental information (e.g. stating the wrong square footage of a warehouse, omitting that there is a requirement for first and last month’s rent and a damage deposit, etc) is grounds for license suspension or revocation by FREC. Such actions may also be rental violations which are first-degree misdemeanors punishable by up to 1 year of imprisonment and/or a fine of up to $1,000.

Fla. Admin. Code 61J2-10.030 Rental information

Escrow rules

Earnest money deposits must be held by an escrow agent. An escrow agent may be a broker or a third party escrow service provider such as an attorney or title company.

If a broker acts as escrow agent, then the broker must maintain a separate commercial bank, credit union, or other depository institution account for escrow funds. Escrow funds must not be commingled with funds in the broker’s other accounts. If a brokerage maintains an escrow account, the broker must complete a monthly reconciliation statement. An accountant can prepare the statement, but the broker must still review, sign and date the statement. Ultimately, the broker is responsible for the funds in escrow.

If a sales associate collects escrow funds, the associate must deliver the funds to their broker no later than the end of the next business day. For example, if the sales associate receives earnest money on Tuesday, the associate must deliver those funds by the end of Wednesday. If the associate received the earnest money on Saturday and Monday was a legal holiday, then the associate must deliver those funds by the end of Tuesday.

A broker must deposit earnest money “immediately” with an escrow agent or into an escrow funds account. The legal definition of “immediately” is no later than the end of the third business day following receipt. For example, if the broker receives an earnest money deposit from a sales associate on Tuesday (as in the example above), the broker would need to deposit the money by the end of Friday.

If a broker acts as escrow agent and the escrow account is interest-bearing, the broker must obtain written authorization from all parties in order to take a distribution of interest.

Escrow Disputes

If a dispute arises between buyer and seller as to who is entitled to disbursement of escrow funds, then the the process for dispute resolution will depend on whether the escrowed funds are held by the broker or a third-party escrow service.

If the funds are held by a third-party escrow service, then the escrow service must notify the broker. FREC does not get involved in such instances, and the disputing parties will likely need to go to court or agree to a legal settlement with attorneys.

However, if the escrow funds are held by a broker, then the broker must determine whether or not there is a good-faith doubt. A good-faith doubt is when it is not clear which party should receive the escrowed funds. For example, if the broker holds the funds for a sale that falls through, the contract does not state in writing what happens to escrowed funds if the contract becomes void, and both buyer and seller demand the money placed in escrow, then the broker has a good-faith doubt. If this happens, the broker must notify FREC in writing within 15 business days.

There are 4 settlement procedures that a broker can use to settle conflicting demands or a “good-faith doubt” over escrow funds. One of the 4 procedures must be instituted within 30 days of the broker receiving the conflicting demands. The 4 procedures are:

Mediation. If all parties concerned give written permission, then the dispute can be mediated by an independent third party who helps them negotiate an agreement. If an agreement cannot be reached within 90 days of the last demand for funds, the broker must use of one of the other 3 procedures to settle the dispute.
Arbitration. If both disputing parties agree, they can present their cases to an independent third party who will make a legally binding decision.
Escrow Disbursement Order. The broker may ask FREC to issue an Escrow Disbursement Order (EDO). In this procedure, FREC decides who is entitled to the funds. This procedure can only be used if the disputed escrow amount is $50,000 or less.
Litigation. The dispute is resolved in a court of law. If the broker has no claim to the funds, or has given up all claims, then the broker can use a civil law procedure known as an “interpleader action” to deposit the funds with the court registry and compel the disputing parties to resolve their situation in court. At that point, the broker is no longer involved in the case.

In all disputed escrow cases, FREC must be notified within 15 business days of any settlement that took place or if the matter was referred to litigation.

Two exceptions to the above dispute resolution requirements exist:

If the buyer of a residential condominium unit delivers to a licensee written notice of the buyer’s intent to cancel the contract for sale and purchase, as authorized by F.S. Chapter 718, then the above procedures do not apply.
If the buyer of real property in good faith fails to satisfy the terms in the financing clause of a contract for sale and purchase, then the licensee may return the escrowed funds to the buyer without notifying the FREC or initiating any of the procedures.

Related laws and regulations:

Fla. Admin. Code 61J2-10.032 Notice requirements

Representations during property transfers

Brokers and sales associates must NOT:

Render an opinion that the title to any property sold is good or merchantable, except when that opinion is correctly based on a current opinion of a licensed attorney. If asked, a licensee must advise a prospective purchaser to consult an attorney on the merchantability of the title and/or to obtain title insurance.
Exaggerate the value of a property by over-selling a particular aspect of it with grandiose statements.
Misrepresent the value of a property to make a buyer think it is worth more than it really is or that the property is “a steal” or “a bargain”. Such misrepresentations constitute fraud, breach of contract, or breach of trust, depending on the situation. Fraud requires intent and action on the part of the licensee (i.e. saying things they know are not true) and damage to the party who relied on the misrepresentations. Damages might include costs to repair defects that were misrepresented, a reduction of the property value, costs to repair or replace defects in the property, and attorney fees.
Draw up contracts other than the contracts specified in the Florida Statutes. To create other contracts may be construed as the unauthorized practice of law.
Provide legal advice.
Dissuade a seller or buyer form consulting an attorney about a transaction.

Brokers and sales associates MAY:

Offer a representation of value that can be confirmed to a prospective buyer who they are showing a property. For example, “this school district was in Florida’s top ten last year” or “this roof was replaced 2 years ago”. However, the licensee must not exaggerate the value of a property by over-selling a particular aspect of it with grandiose statements.
Draw up contracts specified in the Florida Statutes as able to be drawn up by real estate licensees.

Brokers and sales associates MUST:

Advise a prospective purchaser to consult an attorney on the merchantability of title or to obtain title insurance.

Commissions

A sales associate can only work for one broker at a time and can never collect commission directly from a customer or principal. Commissions are paid to the broker, and the broker pays the sales associate or associate broker. FREC has agreed that a broker associate or sales associate may receive his or her portion of the commission at a closing if the broker gives written permission. Such permission must be granted on a case-by-case basis rather than as a default policy. The reason it is not standard for an associate to collect a commission at closing is because the broker frequently doesn’t collect commission until after closing, which means the broker would be loaning the associate money in anticipation of collecting the commission. If there is a problem collecting a commission from a principal, the broker must deal with the principal. Sales associates and broker associates are not permitted to sue a principal over a commission under Florida law.

Kickbacks

Real estate licensees may not receive kickbacks of rebates from mortgage or title companies in exchange for closing a property with their company. Most other kickbacks are also illegal. However, kickbacks are allowed in limited situations where two conditions are met:

All parties to the transaction are fully informed of the kickback, and
It is not prohibited by other law, such as the federal Real Estate Settlement Procedures Act (RESPA).

RESPA requires that anyone receiving a fee for services connected with certain residential transactions must have actually performed those services.

Additionally, sharing of brokerage commission with the buyer or seller of real estate is legal so long as the arrangement has been fully disclosed to all parties involved.

Confidentiality

When a sales associate leaves a brokerage, that associate is obligated to maintain confidentiality regarding their knowledge of deals between the broker and all principals during the associate’s time at the brokerage.

Additionally, it is a breach of trust for a sales associate to copy records from one broker to bring to a new broker when switching employment, even if the sales associate is the one who created those records. That means, for example, a sales associate who created a list of buyers at one broker cannot take that list to a new broker. In fact, the physical removal of records (even records created by the same sales associate who takes them) from a broker’s office constitutes theft, and brokers must report such crimes to FREC.

U.S. Child Poverty Increased 238% from 2021 to 2022

Child poverty in America jumped from 5.2% in 2021 to 12.4% in 2022, as measured by the Supplemental Poverty Measure (SPM).

A chart showing the Supplemental Poverty Measure (SPM) for the overall population and for kids specifically for the years 2017 to 2022

As you can see from this chart, both overall and child poverty in the U.S. trended down from 2017 to 2021, and there are four big reasons for this:

In 2017, Republicans passed the Tax Cuts and Jobs Act which doubled the child tax credit from $1,000 to $2,000 per child.
From 2017 to early 2020, the U.S. unemployment rate dropped by around 20%, AND the labor force participation rate increased at the same time. Wage growth outperformed overall inflation as well, which meant more people took home more money.
In 2020, the CARES Act and other Covid policies authorized trillions of dollars of government stimulus, from several thousand dollars of stimulus checks given to everyone, to over 10 million PPP loans given to small business owners — loans that were eventually forgiven. Student loan payments were also paused, and many states implemented eviction moratoriums that let some people stop paying rent. At the same time, the Federal Reserve dropped interest rates nearly to zero, which created a financial bubble that helped millions of everyday people make money with stocks and crypto in early 2021.
In March 2021, Democrats passed the American Rescue Plan which increased the maximum child tax credit from $2,000 to $3,600 per child AND made the credit fully refundable, meaning parents with no income could still claim the full benefit.

Those are the four main reasons why U.S. poverty decreased so much between 2017 and 2021. But why did it shoot back up in 2022? In short, because many of the causes of falling poverty I just mentioned got reversed. From 2021 to 2022:

Inflation caused the median income to decrease,
Inflation caused the cost of living (and therefore the poverty threshold) to increase,
Stimulus programs ended,
The most popular stocks and cryptocurrencies held by everyday people declined in value by 50% or more (for example, retail investors lost about $700 billion just in Tesla stock value during 2022), and
The enhanced child tax credit under the American Rescue Plan ended.

In addition, the rate of Hispanic migrant border crossings tripled from the beginning of 2021 to the end of 2022, reaching a record high that is nearly 10 times higher than the number of migrants crossing the border in 2017. The migrants who remain in the U.S. almost always start out in poverty, and they tend to also have large families with lots of kids.

In other words, the expiration of the enhanced child tax credit program is definitely a big reason that child poverty increased, but it is definitely not the only reason. In my estimate, the enhanced child tax credit benefit is likely responsible for less than half of the increase in child poverty from 2021 to 2022.