Florida Real Estate - boyerlawfirmblog.com

Real Estate Law: The Basics

Real Estate law is usually state-specific. A standard form will not provide the type of Florida-specific language you need to make sure your rental agreement is legal and in your favor. At a minimum, if you must use an online template, take it to an experienced attorney to review and finalize it with you.

If you need a rental agreement for your properties or have any questions about how to make a legal rental agreement contact, contact Attorney Francis Boyer today.

Closing

The closing is the end of the long and arduous process of buying a house. It refers to the day you close the deal on a piece of real estate and on the mortgage to buy that real estate. Essentially, it’s the final transfer of money and keys.

Additionally, timing is critical when scheduling the transaction. make sure you take into consideration your current living situations, mortgage considerations, work schedules, and moving.

The Real Estate Documents
• HUD Form 1 or Disclosure/Settlement Statement. This is one to read carefully (though, of course, all these papers are important and need to be read). The form will contain all the actual settlement costs and amounts.The closing agent will go over this document with the buyer and seller.

• Warranty deed. This document should include the names of the buyer, the seller and a description of the property. Often this deed also guarantees that the seller has the right to sell the property. With the signatures of the seller and buyer, this piece of paper transfers the title of property.

• Proration agreements. These describe how you and the seller are divvying up the costs of the house for the month in which it is being bought.

• Tax and utility receipts. You’ll probably also be signing various city and state receipts acknowledging that this or that has been paid by the seller or will be paid by the buyer.

• Name affidavit – This document is certifying that you are who you say you are.

• Acknowledgment of reports. More legalese assures that the buyer has seen all of the reports regarding the property. These can include surveys and a termite inspection.

• Search or Abstract of Title – gives a listing of every document that has been recorded about this particular piece of property.

Costs

Lastly, once all the documents are signed it is time to end the closing. This is the favorite part for most buyers and sellers: handing over the money and receiving the keys. Here are a few things a buyer will be paying for at the closing:

• Closing costs. Expect to pay a portion of the closing costs. These can vary from state to state and even from county to county. Also, most are negotiable (ahead of time), so closing costs can vary greatly.

• Payment for the house. The buyer brings the down payment (if any) at this time, minus any earlier deposit(s).The money is given to the closing agent, along with the lender’s check for the balance.

• Escrows. Often the buyer’s annual taxes, insurance and other items are paid through the lender. An escrow account (or reserve) will be established at this time. To learn more on real estate closings read here.

Why do I need a real estate attorney?

Some of the main advantage points of hiring a real estate attorney are:

– Ensuring that you receive clear title to your new property;
– Drafting and explaining to you the appropriate documents;
– Finalize closing and register the deed in your name

Terminating a Commercial Lease

The Lease Agreement

In any landlord-tenant relationship, the most important document is the lease agreement. The lease agreement is the contract between the landlord and tenant that lays out the terms of the lease. These terms include payment, duties, liabilities, utilities, renewal, conditions, and termination. To be enforceable, the contract must be signed by both parties and include all essential terms to the agreement.

To read more about term provisions in a lease agreement click here.

Because the lease agreement is a contract, breach of the promises made by either party in the contract can result in termination of the lease. Typically, there are two grounds for termination of a lease: (1) monetary; and (2) non-monetary.

It is important to note, however, that a lease is a binding contract. A single party cannot unilaterally sever a contract without breaching the contract. With regard to termination, both a landlord and tenant cannot individually terminate a lease without the other’s consent. To have legitimate grounds for termination, a landlord or tenant must breach the terms of the lease agreement in some way.

Monetary Grounds for Termination

Monetary grounds for termination include failure to pay rent, taxes, cost of repairs, improvements, etc. Usually, the most common ground for termination occurs when a tenant fails to pay rent to the landlord. In the event of non-payment, the landlord may have the right to terminate the lease agreement and initiate eviction. Failure to pay rent does not automatically terminate a lease, and in order for termination to be proper, a landlord must give notice and a time to cure to the tenant.

Non-monetary Grounds for Termination

Florida courts tend to disfavor non-monetary grounds for termination of a lease. This is because the burden for proving that landlord or tenant materially breached the lease is very high. A party attempting to terminate the lease may be required to demonstrate that the lease agreement was materially breached and that forfeiture of the lease will not reach an inequitable result.

Generally, tenants can terminate a lease if the landlord breaches a covenant in the lease agreement. This can include a breach of the covenant of quiet enjoyment, breach of the implied warranty of habitability, or other provisions in the lease.

Landlords may have non-monetary grounds for termination if the tenant attempts to assign or sublease the premises. Similarly, a landlord may also terminate the lease if the tenant breaches other material obligations of the lease such as the tenant not obtaining liability insurance.

Both monetary and non-monetary grounds for termination result from material breaches of the lease agreement. If you have questions about how to terminate a lease, please contact us. Our experienced attorneys look forward to assisting you.

Commercial Real Estate Transactions: Tips to Prevent Disputes

Here at Boyer Law Firm, we have represented brokers, agents, and purchasers of commercial property. It is common to have disagreements over real estate negotiations because disagreeing is part of the bargaining process. Sometimes the buyer disagrees about the purchase price with the seller. The other time, sellers disagree about whether they owe a broker a commission if the deal never closes. If the disagreement is material, then sometimes court action is appropriate to resolve disputes. Regardless of the disagreement, however, many of these issues could have been fixed before they happened.

Listed below are a few tips for ensuring a smooth transaction.

Get Everything in Writing

The number one mistake that clients make is not getting every aspect of the agreement in writing. It is essential to reduce all the terms of the agreement to writing specifically in the contract. Although the opposing party may insist on taking their word, you must get everything in writing and have them sign all documents. If you do not have a signed writing it will be a lot more difficult to enforce the term you would like to enforce. There are potential avenues to getting orally spoken terms into court as evidence to modify an existing contract; however, courts are reluctant to do so and it will be much easier to include the term in writing.

2. All Communications are likely Admissible in Court

Furthermore, many clients make the mistake of sending emails, texts, or voice messages without thinking twice about how it may affect them during litigation. Angry and bold texts may work against you in front of a jury if admissible as evidence during a trial. As a general rule, you should be hesitant to send anything that could hurt your case in court. Similarly, you should save any emails or texts that you receive in regard to a real estate transaction.

3. Make Sure Your Contract is Enforceable

You should consult an attorney if you have questions about the enforceability of your contract. Whether you are a listing agent, a seller, or a buyer, you should always have an experienced professional review any and all documents. Consulting an attorney before contract creation will significantly reduce the risks of future litigation arising from your real estate deal. Here at Boyer Law Firm, we have experienced attorneys who look forward to working with you. Please contact us today!

Commercial Real Estate & Foreign Investment

Commercial real estate can be a valuable investment which can provide good returns. Different types of owners can purchase Florida commercial real estate. Such owners include individuals, partners, married couples, LLCs, corporations and other types of businesses. If you are purchasing a property in Florida to rent out or to use for your business, then it may be a good idea to setup a Florida LLC or corporation in order to purchase the property. There are various advantages and disadvantages to doing so; however, regardless of the transaction the most important aspect of a real estate transaction is the drafting of the agreement.

The Foreign Investment in Real Property Tax Act & Potential Liability

If you are purchasing a Florida property, then it is important to know if the seller is a foreign seller. This is important because if you are a buyer purchasing a property from a foreign seller, then you will most likely be subject to the Foreign Investment in Real Property Tax Act of 1980 (FIRPTA).

In a FIRPTA real estate transaction, 10% of the sales price is withheld from the sellers’ proceeds by the IRS until their tax return is filed the following year. The reason behind FIRPTA is to ensure the foreign seller pays the taxes on the proceeds for the property. Before the enactment of FIRPTA, the federal government had no procedure to ensure payment of these taxes. This is because many foreign sellers of real estate had no further connections to the US other than their property.

It is ultimately the buyer’s responsibility to ensure proper conduct of the FIRPTA real estate transaction. If the buyer does not properly conduct the FIRPTA process, then the buyer may be liable for the unpaid taxes.

A licensed attorney can be very beneficial to any real estate transaction. Whether it is during the negotiation period or the executory period, an experienced attorney can significantly reduce the risks associated with purchasing commercial property. Please contact us if you have any questions regarding the purchase or sale of commercial property. We look forward to assisting you.

Protecting Your Contract with Contractors

Whenever you remodel or renovate your home, you likely will hire a contractor. A contractor is a person or company that signs a contract to provide materials or labor to perform a service. People use contractors for housing renovations, building construction, and other important services. Although we hope that your experience was exceptional, issues often arise when jobs are not completed by their contract date.

First, it is most important to make sure that you are hiring a licensed Florida contractor. Your home is one of the most important investments that you make in your entire life. Because of the increase in unlicensed contractors, you should always make sure to verify their license. This will protect you and your home. You can read more about avoiding scams in the construction industry here.

Second, if you need a job completed on time, you must make sure that it is in your contract. Most completion date issues start from the creation of the contract itself. It will be much more difficult to enforce a deadline for contracts that lack a “time is of the essence clause.”

A “time-is-of-the-essence” clause is necessary if you want to enforce a deadline.

Imagine you enter a services contract with a licensed Florida contractor. The contractor agrees to lay tile in your kitchen and install a new shower in your master bedroom. The contractor agrees to complete the job within 3 months. You agree to pay $20,000 at the end of the job (including labor and materials).

Is the contractor liable for a material breach of contract if after 3 months the contractor has not finished the job?

The answer likely depends on whether you had an express “time is of the essence” clause in your contract.

The contract should state an express condition of your payment that the contract must complete the project by the contract date. In addition, the contract should expressly state the completion date. Then, if the contractor fails to complete the work by the stated deadline, then that failure likely constitutes a material breach.

A material breach opens to the door to many potential remedies for you. For example, you may be entitled to hire another contractor to complete the work and reduce payment to the original contractor accordingly. You may also be able to sue the original contractor for consequential damages, like any foreseeable loss of income or additional expenses incurred because of the breach.

If you have concerns regarding your current or prospective contract with a contractor please contact us. Our experienced attorneys look forward to assisting you.