Real Estate

On July 1, 2023, Governor Ron DeSantis signed Senate Bill 264, known as the Interests of Foreign Countries Act, transforming the regulatory landscape of real estate transactions in Florida. This unprecedented legislation limits and regulates foreign principals and entities' sale, purchase, and ownership of certain properties. As the Florida Real Estate Commission (FREC), the Department of Agriculture and Consumer Services (DACS), and the Department of Economic Opportunity (DEO) work towards implementing the law's specifics, uncertainties abound.As such, the involv...

As we delve into Brevard County, Florida's real estate market trends, April 2023 presents various developments. The data, which encompasses single-family homes and townhouses/condos, reflects certain buying trends, pricing, and inventory availability shifts.Brevard County Residential MarketStarting with single-family homes, April 2023 saw a modest decrease in closed sales, down 5.5% from the previous year, with 978 units closed compared to 1,035 in April 2022. This dip also aligned with a significant drop in cash sales by 27.5%.While the drop in sales might raise eyebr...

The County Commission meeting began at 5:03 PM, with Commissioners from Districts 1 through 5 in attendance. The Board of County Commissioners acts as a quasi-judicial body when addressing rezoning and Conditional Use Permit requests. Both applicants and opponents must provide evidence or expert testimony to support their stance, and the Board must decide whether the request aligns with the Comprehensive Plan and Zoning Ordinance.The Commissioners are required to disclose any communication they've had regarding a request, as well as any site visits, inspections, or inv...

The real estate market in Brevard County, Florida, has experienced some interesting changes in the first quarter of 2023, according to the Brevard County Residential Report. The report reveals that the number of closed sales for Q1 2023 was 2,471 units, a 9.9% decrease compared to the 2,741 units closed during the same period last year (Q1 2022). There was also a decrease in cash sales of 17.1% during Q1 2023. On the other hand, new pending sales decreased by 8.2%, while new listings increased by 0.3%.One of the most notable changes is the increase in median sales price for...

Identifying home defects before purchasing a property is crucial for several reasons, especially in Florida where there are specific concerns that homebuyers should be aware of. A home is a significant investment, and it is essential to ensure that it is structurally sound and free from any potential hazards that could pose risks to occupants or result in expensive repairs. Failure to identify home defects before purchasing a property can lead to significant financial losses, as well as legal disputes between buyers and sellers.In Florida, there are several common defects t...

Under Florida law, a deed is a written instrument that creates, makes, grants, transfers, or releases an estate, a freehold interest, or an interest for a term of more than one year in, of, or out of any messuages, lands, tenements, or hereditaments.[1] Deeds must be signed by the vendor, or their agent, in the presence of two subscribing witnesses.[2]A deed that follows the form for warranty deeds as prescribed in the Florida Statutes is “held to be a warranty deed with full common-law convenants . . . .”[3] This refers, among others, to the covenant of seisin, the covenan...

If you are a non-US person living outside the US and are considering investing in US real estate it’s important to understand taxation for foreign real estate investors.  It’s equally important to remember that the information is not a substitute for personal tax advice. Each investor should seek personalized advice from a qualified US tax professional. That being said, It is no secret that many foreign investors find the US real estate market to be an attractive target for their investment funds.[1] There are multiple variations of real estate investments, including commer...

Military members are afforded certain protections and benefits while in active duty, including protections relating to housing and accommodations. For this reason, landlords need to be aware of the laws that can affect the landlord’s relationship with its military tenants. In 2003, the United States Congress enacted the Servicemembers Civil Relief Act (“SCRA”) to revise and expand the Soldiers’ and Sailors’ Civil Relief Act of 1940.[1] The SCRA provides legal protections for active military members to enable them to focus on the defense of the nation.[2] The SCRA includes p...

The landlord-tenant relationship involves more than the exchange of rent payments for access to residency. In Florida, when a landlord and tenant enter into a lease agreement, they agree to be bound by a plethora of terms, whether express in the agreement or imputed by operation of law. One such obligation imposed upon both parties is maintenance. Maintaining rental property is a way to protect both parties’ investment in the property but also to comply with the law. Outside of the terms of a lease agreement, there are certain minimum maintenance responsibilities for both t...

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Non-U.S. individuals and corporations investing in real estate within the United States will need to be familiar with one of the biggest challenges facing foreign nationals involved in U.S. real estate: the Foreign Investment in Real Property Tax Act (FIRPTA).  FIRPTA makes sure that foreign nationals earning money off real estate transactions based in America pay their fair share of taxes for it. Under FIRPTA, a foreign seller of U.S. real property is subject to a tax withholding at closing, and the buyer in such transaction is obligated to submit the tax withholding to th...

When a person sells a house, vacant land, or other piece of property, there are certain requirements that must be followed. Most states require an affidavit of title. An affidavit of title is a document specifying that a property seller owns the property.[1] In addition, in an affidavit of title, the seller swears under oath that certain other facts about the property are correct.[2] An affidavit of title offers many benefits to a buyer. Primarily, it provides added protection against the seller for the buyer that the property is free and clear of any major legal problems i...

Real estate can be a great investment; when executed tactfully investors can expect to see great returns. One of the principal advantages of investing is the plethora of options available to optimize an investor’s tax situation. From tax-advantaged retirement accounts to low, long-term capital gains rates, the government wants to give citizens these tax concessions to incentivize them to invest their capital back into the economy through real estate. If considering investing in real estate, investors should consider these four tax implications that could make or break an in...

When it comes to real estate, although significantly different from owning a condo or renting an apartment, individuals may consider investing in a housing cooperative[1] (often referred to as “co-op”). In considering whether to do so, purchasers should determine whether the purpose of the co-op investment is not for profit and thus not considered a security or for-profit and thus considered a security. United Housing Found. v. Forman[2] is an important case in which the United States Supreme Court determined that The Securities Act of 1933 and of the Securities Exchange Ac...

Prewitt Mgmt. Corp. v. Nikolits is an appellate case that involved a dispute between appellant, Hal D. Prewitt (Prewitt) and appellee, Gary R. Nikolits (Nikolits).[1] Prewitt was the sole shareholder of an S corporation, Prewitt Management Corp. (PMC), and Nikolits was a Palm Beach County Property Appraiser. Prewitt loaned money to PMC to purchase residential real property in Palm Beach County where Prewitt and his family permanently resided.[2] After PMC’s purchase, it sought a homestead exemption for the property.[3] Nikolits denied the exemption based on his interpretati...