Florida Real Estate Lawyers Blog

Partition of Florida Real Estate

Published on: October 5, 2014 | by ESQ.title

By: Daniel T. Pascale, Esq.

Offices located in Delray Beach and Coral Gables, FL

Joint property ownership is a partnership at its core. Partnerships are great tools to save money, promote economies of scale, and better utilize resources. However, in situations where more than one party owns property, decision-making may become cumbersome, partners may not always get along, or they may have different interests which don’t reconcile with each other. Oftentimes, these problems can be resolved without court intervention, but when they cannot, partition of real estate may be the best solution. The following is a general overview of the Florida partition process.

Partition Requirements

Under F.S. 64.041, a complaint for partition must allege:

a description of the lands of which partition is demanded;

the names and places of residence of the owners, joint tenants, tenants in common, coparceners, or other persons interested in the lands;

the quantity of the interests held by each; and

any other matters as are necessary to enable the court to adjudicate the rights and interests of the parties.

Partition Sales

A partition sale is a secondary measure used only when the property cannot be divided.

Under F.S. 64.061(4), on the motion of any party, property may be sold in lieu of partition if either of the following conditions is satisfied:

There is an uncontested allegation in a pleading that the property is indivisible and not subject to partition without prejudice to the owners.

A judgment of partition is entered and the court is satisfied that allegations of indivisibility are correct.

If one of these requirements is met, the court may appoint a special magistrate or the clerk to sell the property. The sale may be either private or public.

1st Quarter 2014 Industrial Market Report for Miami-Dade County CRE

Published on: August 4, 2014 | by ESQ.title

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.

Raising Money through Real Estate Syndications – Recent Law Changes to the Rule 506 Exemption

Published on: April 15, 2014 | by ESQ.title

By: Alejandro E. Jordan, Esq.

The Jumpstart Our Business Startups Act, known as the Jobs Act, has changed the way to raise money from groups of investors to purchase commercial and investment real estate properties. Many forget that raising money from multiple investors is often viewed as selling “securities” and are regulated and restricted under the federal securities laws.

What Changed?

In its July 10, 2013, meeting, the Securities and Exchange Commission adopted the new Regulation D, Rule 506(c) as authorized by the Jobs Act (Title II), which became effective September 23, 2013. Under the new rule, persons such as issuers, sponsors, syndicators, or promoters selling “securities” to private investors to fund their companies or real estate transactions will be able to advertise their private-investment opportunities under certain conditions.

Understanding Florida’s Commercial Real Estate Sales Commission Lien Act

Published on: March 17, 2014 | by ESQ.title

By: Dan Pascale, Esq.

Offices located in Delray Beach and Coral Gables, FL

Pursuant to Florida’s Commercial Real Estate Sales Commission Lien Act, a commercial broker has a lien upon the owner’s net proceeds from the sale of commercial real estate for any commission earned by the broker under a written broker’s agreement.

According to the Act, the lien upon the owner’s net proceeds for a broker’s commission is a lien upon personal property, it attaches to the owner’s net proceeds only, and it does create a lien right against the real estate that is being sold.

As such, the broker cannot record a lis pendens against the real estate that was sold in order to force the seller to pay the broker’s commission. Instead, the Act provides that a commercial broker may give both notice to the closing agent and record notice of the commission due in the public records of the county where the land is located, and gain a lien on the net proceeds of the seller

Practice Tip to Residential Brokers: Residential real estate brokers have no lien rights either statutorily or at common law. They are, in fact, prohibited from placing liens for commissions in the public records.

Are You Entitled to Receive a Real Estate Commission?

Published on: March 9, 2014 | by ESQ.title

Daniel Pascale

By: Daniel T. Pascale, Esq.

Offices located in Delray Beach and Coral Gables, FL

As the amount of South Florida real estate transactions continue to reach new records, real estate brokers and agents find themselves in more and more commission disagreements. As such, we thought it would be a good idea to post a new article on the doctrine of procuring cause.

The Doctrine of Procuring Cause

Procuring cause refers to a broker’s efforts to match a ready willing and able purchaser with a seller and for a sale to take place as a result of the broker’s continuous negotiation and/or involvement. Stated differently, to be the procuring cause of a sale or lease of real estate, a broker or agent must have brought the parties together and effected the sale or lease assignment as a result of continuous negotiations inaugurated by the broker. Whether a real estate broker or agent is the procuring cause of a sale must be factually determined on a case-by-case basis. Many factors can impact a determination of procuring cause, but no one factor is by itself determinative.

Top CRE Investment Opportunities for Foreign Nationals – Single Tenant Triple Net Investments (NNN)

Published on: March 1, 2014 | by ESQ.title

By: Alejandro E. Jordan, Esq.

The greater Miami area has emerged as one of the leading commercial real estate investment locations in the U.S. due to its climate, diversity, proximity to South America, and infrastructure. Foreign investment from Mexico, China, Venezuela, Canada, India and Brazil drives many of the commercial real estate acquisitions throughout South Florida. While each investor has a different risk tolerance and end goal in mind, they are all looking to protect their investment by purchasing the safest property with the highest returns possible.

Single Tenant Triple Net Investments (NNN) – Low Risk and High Yield Commercial Real Estate Investment

Fortunately, there is a real estate investment option that can offer low risk and high yields. It’s called a Single Tenant Credit Net Lease Investment (NNN), Freestanding NNN Investment, or Triple Net Leased Investment.

South Florida Real Estate Due Diligence Checklist

Published on: February 23, 2014 | by ESQ.title

By: Alejandro E. Jordan, Esq.

Whether you are a seasoned real estate veteran or a first time investor, having a due diligence checklist in “black and white” is a valuable and necessary tool for any real estate purchase. For commercial real estate, value is determined by analyzing the income stream the property generates or is expected to generate. Of all the commercial properties types, perhaps none of them are more complex than the analysis of a mixed-use multi-tenant property with residential, office, and retail uses. While every commercial real estate investment presents a unique set of challenges and opportunities, each transaction beings with essentially the same due diligence.

Below is a commercial real estate due diligence checklist that provides you with a general list of some of the most necessary documents to review and analyze with your South Florida due diligence real estate lawyer.

Is Your Real Estate Transaction Subject to FIRPTA Tax Withholding?

Published on: February 19, 2014 | by ESQ.title

By Daniel T. Pascale, Esq.

Offices located in Delray Beach and Coral Gables, FL

What is FIRPTA?

The Foreign Investment in U.S. Real Property Tax Act of 1980 (“FIRPTA”) was enacted to ensure that foreign investors are taxed on the gains from the disposition of their U.S. real property investments. Pursuant to FIRPTA, a buyer (whether domestic or foreign) purchasing U.S. real property interests from a foreign person must withhold 10 percent of the amount realized from the sale (i.e., the entire purchase price, not just the gain). FIRPTA applies to both residential and commercial real estate transactions.

In a FIRPTA transaction, the buyer (i.e. the transferee) is considered the withholding agent and has the responsibility to determine whether the seller (i.e. the transferor) is a foreign person; otherwise, if the seller is a foreign person and the appropriate amount is not withheld, the buyer will be held liable for the tax, and any and all penalties.

The IRS defines a foreign person as a nonresident alien individual, a foreign corporation that has not made an election under section 897(i) of the Internal Revenue Code to be treated as a domestic corporation, a foreign partnership, a foreign trust, or a foreign estate.

Florida Real Estate Case Law Updates

Published on: February 10, 2014 | by ESQ.title

By: Daniel T. Pascale, Esq.

Offices located in Delray Beach and Coral Gables, FL

Estate by entirety. A deed was to an undivided 98 percent interest and H and W, husband and wife, as to an undivided two percent interest, creates an estate by the entirety in the two percent interest even though that phrase was not used in the deed. Roberts-Dude v. JP Morgan Chase Bank, N.A., 498 B.R. 348 (S.D. Fla. 2013).

Prior judgment trumps homestead rights. A valid judgment lien which attached prior to acquisition of homestead rights is superior and enforceable. LaCalle v. Hauptman, 118 So.3d 239 (Fla. 3d DCA 2013).

Retaining trade fixtures. Where a lease is ambiguous as to which party is entitled to retain trade fixtures when the lease expires, the tenant is entitled to retain the trade fixtures. H. Allen Holmes, Inc. v. Jim Molter, Inc., 38 Fla. L. Weekly D2399 (Fla. 4th DCA 2013).

How Much Are Closing Costs In Florida?

Published on: February 2, 2014 | by ESQ.title

By: Alejandro E. Jordan, Esq.

We have gathered the most frequently asked questions (FAQs) from buyers and sellers of real estate in Miami-Dade, Broward and Palm Beach Counties as they relate to residential real estate closing costs. Below is a list of our answers to the most common questions:

Q: What are the typical closing costs for Buyers?

A: Buyer’s closing costs are negotiated and set forth in the Purchase and Sale Agreement (the “Contract”) entered into by the parties. The typical closing costs to be paid by the buyers are as follows:

Cash Deals:

Recording fees for deed;
Buyer’s inspections;
Buyer’s attorneys’ fees.