Articles Posted in Uncategorized

In Florida, as in many other states, properties that fall into arrears on delinquent taxes may eventually be sold at public auction by the county in which they are located.  The process by which this occurs, called a Tax Deed Sale, is detailed in Chapter 197 of the Florida Statutes and can be a little daunting to read through.  We here at Jordan + Pascale, P.L. have years of experience representing clients in Tax Deed Sales; the following is a short overview to help you get acquainted with the reasons for and processes of these unique real estate transactions.

First, as the name suggests, a Tax Deed Sale is performed to recoup unpaid taxes on real estate properties.  Properties cannot be sold until a number of prior requirements are met and deadlines passed at which time the holder of the Tax Lien Certificate against the property may file to force a public auction of that property.  This is what is referred to as a Tax Deed Sale.

A Tax Deed Sale extinguishes most liens against a property and prioritizes those held by municipalities and counties, which again stands to reason when you consider that the main motivation for a Tax Deed Sale is to pay delinquent taxes.  However, there is still some issue regarding which liens and debts against a property are still applicable after the sale.  As such it is of paramount importance that proper notice be given to the legal titleholder of record and all lienholders, including mortgage companies, and failure to comply with these notice requirements can result in the sale being voided.  Because there is often some questions as to the chain of ownership for Tax Deed Sale properties, purchasers commonly file Quiet Title Actions to permanently “quiet” – or eliminate – all claims to a property’s title.

Most people never hear of a Quiet Title action until they’re in the midst of one.  Here at Jordan + Pascale, P.L. one of our main focuses is Quiet Title actions.  Because we believe that an ounce of prevention is worth a pound of effort, the following is an overview of Quiet Title actions in the State of Florida.

What is a Quiet Title Action?

A Quiet Title action is a civil lawsuit brought in the circuit court to “quiet” any and all claims on a piece of real estate.  Essentially, Quiet Title actions are intended to establish an individual’s right to ownership of real property against one or more adverse claimants.  In other words, Quiet Title establishes who the true owner of a property is and resolves all issues, or “clouds” from the title.  These cases are filed in Circuit Civil court.

img_2262By:  Alejandro E. Jordan, Esq.

The Miami Downtown Development Authority’s Annual Residential Market Study Update for the Greater Downtown Miami area, prepared by Integra Realty Resources (IRR), came out in early February, and is full of interesting/useful information. In this post we will discuss a few of the attention-grabbing tidbits from the Miami Downtown Development Authority (MDDA) report, and begin to address how some of these developments are going to affect you as buyers/sellers here in the Miami area.

According to the Senior Managing Director for IRR, Anthony M. Graziano, and Market Research Analyst, Dan Bowen, a big picture view on the state of the market should recognize that while inventory is up, there is no distress in the market. New pre-construction deliveries closed out successfully in 2016, demonstrating buyer confidence.

Resale pricing retreated modestly (6% – 7%), reflecting both a correction after five consecutive years of growth, as well as a stronger US Dollar, resulting in nominal price increases for most foreign buyers, according to the MDDA report.

With regard to condo delivery, the report notes that the greater downtown Miami area saw the largest volume of delivery (2,202 units delivered in 2016) since 2008, although it was also noted that this figure is mostly in line with the expected 11-year and 15-year cycle of absorption.

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img_2262By:  Alejandro E. Jordan, Esq.

“Our Real Estate Consulting Model will Revolutionize the entire Real Estate Industry,” says Alejandro E. Jordan, JD.

As you know, in today’s real estate market, everything that is listed on the multiple listing services is available to be seen on hundreds of duplicated websites at no cost to you.  Independent surveys state that over 95% of buyers search the Internet to find a home.  Virtually no one surveyed said their agent found them a home that they had not seen on the Internet or by driving around.  If you are one of the over 95% of the buyers out there doing their own homework, we figure why not pay you for your efforts so that you save money on your transaction closing costs.

Serving the Next Generation of First-Time Home Buyers

Today, Millennials (even Gen X and Gen Y) prefer to research information online or through their friends.  Our clients are savvy home buyers.  They’re involved in their search and know what they want.  They don’t need an agent to look on the Internet for new listings.  There are plenty of online tools they can use for that.  They don’t need an agent to drive them all over town every weekend.  And, they certainly don’t want to pay a full commission just to close the deal.  Buyers want someone who is on their side and who is hired to represent their interests.

How does the Real Estate Consulting Model Work?

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img_2262By: Alejandro E. Jordan, Esq.

Due Diligence Checklist for Commercial Real Estate Transactions in South Florida

Commercial real estate investments in south Florida can provide lucrative returns when they are selected and managed properly. Rather than just rushing into a transaction, an investor will be more likely to realize those returns if he follows a due diligence checklist on commercial real estate transactions in Miami and anywhere else in the State of Florida. The key items on that checklist are as follows:

  • ACQUISITION DOCUMENTS

Both Purchaser and Seller must confirm that they are satisfied with the purchase contract and all ancillary documents, including corporate authorizations and approvals, escrow agreements, and disbursement instructions.

  • TITLE AND ZONING

The transaction should not close until the Purchaser has reviewed the title policy and any applicable surveys, and has concluded that no exceptions will preclude him from acquiring a clean title to the commercial real estate.

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By:  Alejandro E. Jordan, JD

Frequently Asked Questions (FAQs) – 1031 Exchanges (Tax Deferred Exchanges) for Commercial Real Estate

Question 1:    What is the difference between a sale and an exchange?  

Answer 1:        A sale is an exchange of real property for cash. An exchange is a transfer of property for other like-kind property – a “non-taxable” sale.

Question 2:    What provisions are required in a Purchase and Sale Agreement to enter into an exchange?  

Answer 2:        A Purchase and Sale Agreement should contain language establishing the exchangor’s intent and notifying the buyer of the exchange. Examples are:

When Selling:

“It is the intent of the Seller to perform an IRC Section 1031 tax deferred exchange by trading the property herein with [_________________]. Buyer agrees to execute an Assignment Agreement at the request of Seller at no additional cost or liability to Buyer.”

When Buying:

“It is the intent of the Buyer to perform an IRC Section 1031 tax deferred exchange by trading the property herein with [_________________]. Seller agrees to execute an Assignment Agreement at the request of Buyer at no additional cost or liability to Seller.”

Question 3:    Can an investor trade from several small properties into one large one?  

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img_2262By:  Alejandro E. Jordan, JD

Investing in NNN Triple Net Leased Commercial Real Estate Properties

Not all real estate investors are created equal. A large number of them simply are looking to place their hard-earned money into a safe haven to avoid the often unpredictable nature of the financial market. In a nutshell, based on how the leases are drafted, NNN leased investments state that the tenants are responsible for paying rent plus the operating expenses of the building such as taxes, insurance, repairs and utilities. A true passive investment for the owner/landlord.

These NNN (Triple Net Leased) investments are valued using a combination of factors, such as the tenant’s credit, the length of the lease and rent escalations over the term, and, last but not least, the real estate itself.

EJ Headshot“NNN leased properties survive the ups and downs of the markets. As an investor, you know your lease is guaranteed long term, often with rental escalations worked into the leases, meaning the investor will be receiving a steady income, regardless of how the outside forces are performing,” says Enrique Jordan, Investment Sales Associate with NAI Miami, Commercial Real Estate Services Worldwide. Continue Reading

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By:  Alejandro E. Jordan, Esq.

Total Industrial inventory in the Miami-Dade County market area amounted to 229,374,658 square feet in 8,790 buildings as of the end of the second quarter 2014. The Flex sector consisted of 16,908,307 square feet in 600 projects. The Warehouse sector consisted of 212,466,351 square feet in 8,190 buildings. Within the Industrial market there were 782 owner-occupied buildings accounting for 30,523,593 square feet of Industrial space.

Sales Activity

Miami-Dade County industrial sales figures for industrial building sales of over 15,000 square feet fell during the first quarter 2014 in terms of dollar volume compared to the fourth quarter of 2013.

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Daniel PascaleBy: Daniel T. Pascale, Esq.

Offices located in Delray Beach and Coral Gables, FL

According to just released statistics, judges in Miami-Dade County have been processing residential foreclosure cases twice as fast as judges in Broward County.  While Miami-Dade has South Florida’s largest number of foreclosures, the latest plan in place in Miami-Dade calls for all residential foreclosure cases to be cleared by 2016.   Paving the way for the fast foreclosure processing times are a set of newly hired magistrate judges and increased funding from the state in the tune of $25 million dollars.

Broward County is also stepping up its efforts to clear the foreclosure backlog.  With the newly freed up money from the Florida Legislature, Broward County is in the process of funding the equivalent of three senior judges, two additional general magistrates, 18 case managers and six secretaries, all of whom will be devoted to processing foreclosure cases for the next year and half.

According to the forecasts, Florida will face 680,000 new foreclosure cases between now and 2016.   The majority of these foreclosure cases will be filed in Miami-Dade, Broward County, and Palm Beach County.   Obviously, the number of foreclosure cases in these counties is already staggering.  For instance, in Broward County alone, there are over 40,000 cases being prosecuted by lenders. Whereas in Miami-Dade, there is a current estimated backlog of 48,000 cases.  With numbers like these, Palm Beach County’s estimated 9,000 residential foreclosure cases looks miniscule, however, those cases definitely take a toll on a county that was previously unaccustomed to massive case loads.

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