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Step-by-Step Guide to Legal Land Acquisition in Florida

Step-by-Step Guide to Legal Land Acquisition in Florida

 Land acquisition in Florida can be profitable when added to an investment plan to make a very high gain. Land acquisition is a significant thing to do in life, and it is an investment that requires critical thinking and planning before taking a step.

Acquiring land in Florida can be complex and challenging, especially regarding the legal aspects of land acquisition. Several legal requirements and regulations must be followed to ensure a successful land acquisition process. 

This article will provide a step-by-step guide to legal land acquisition in Florida.

Essential Guide to Legal Land Acquisition in Florida

The following is a step-by-step guide to land acquisition in Florida;

1. Know the reason why you want to buy the land

Knowing your reasons for acquiring land makes you set your goal; however, not knowing precisely what you want to use the land for may make you regret buying the land. Hence, before you get started, define your financial goal and identify what the land is meant for. 

2. Conduct Due Diligence

Before acquiring land in Florida, it is essential to conduct due diligence. Due diligence involves researching the land to ensure that it is suitable for your intended use and that no legal issues or disputes are associated with it. Due diligence may include reviewing zoning regulations, environmental reports, and title searches.

3. Know land use and zoning in Florida

Knowing the local ordinance and land use decree is essential when purchasing land. This law dictates how the area can be used, what structure can be built on that land, and what types of buildings can be built there. 

4. Hire a Real Estate Attorney

Hiring a real estate attorney is an important step in legal land acquisition in Florida. A real estate attorney can provide legal advice and guidance throughout the acquisition. They can evaluate contracts, negotiate terms, and meet all legal requirements.

5. Negotiate and Sign a Purchase Agreement

Once you have identified the land you want to acquire and have conducted due diligence, the next step is to negotiate and sign a purchase agreement. A purchase agreement is a legally binding contract outlining the land acquisition terms and conditions. The purchase agreement should include the purchase price, closing date, and contingencies.

6. Obtain Financing

Obtaining financing is an important step in legal land acquisition in Florida. Financing may be obtained through a bank, or other financial institution, from your savings, borrowing from friends and relatives. It is imperative to obtain pre-approval for financing before entering into a purchase agreement.

7. Close on the Property

Closing on the property is the final step in legal land acquisition in Florida. Closing involves signing all necessary documents and transferring ownership of the property. Ensure you check the nook and cranny of the land because after signing the documents, there won’t be a refund after payment and document signings.

Conclusion

It is important to note that the steps to land acquisition in Florida are not limited to the ones listed above. However, those mentioned above are basic guides to land acquisition.  

Five Types of Deeds to Transfer Real Estate Properties in Florida

In Florida, a Deed is a real estate document used to transfer the title and ownership of real estate properties from one party to another or from an existing owner to a new owner. There are five basic types of deeds used in Florida for real estate transactions, and their differences are the level of warranties they provide. 

These warranties are certain guarantees that make the seller liable if a particular title defect could be a problem for the new owner. Also, these differences can affect the ownership status if the wrong Deed is employed. Thus, you must contact an experienced real estate attorney to assist you in selecting the best Deed when transferring a real estate property in Florida.

The five types of Deed to transfer real estate properties in Florida includes;

1. General Warranty Deed

The General Warranty Deed is the most common type of Deed to transfer residential property in Florida, and it is considered the top tier Deed for ownership of a property. It affords the most guarantees and protection for buyers, and it provides a full warranty of title not only for the period that the current title holder owned the property but also for the entire period stretching back to the property’s originations.

2. Special Warranty Deed

A Special Warranty Deed in Florida is often used to transfer commercial real estate properties. It transfers a limited warranty of title to the Grantee; that is, it guarantees a title for the period that the current Grantor owned the property. A Special Warranty deed makes no promises about the condition of the title before the seller owns the property because the seller or Grantor might need to be more familiar with the property’s history before they take ownership. Hence, they can’t guarantee that there were no title defects before they took possession. 

3. Quitclaim Deed

A Quitclaim Deed is the least desirable Deed to accept ownership of real estate properties in Florida. It passes the ownership interest in real estate to the new owner but makes no warranties regarding any defects or problems with the title. The Grantee is buying the property ” as-is,” with up-front knowledge that someone else may claim ownership of the property or that there may be liens or debts of former owners requiring a pay-off. It often creates exceptions to title policies and is used to clear title defects. 

4. Life Estate Deed

In Florida, a Life Estate Deed is a grant of an ownership interest in a property. The Grantor gives away actual legal title and ownership to another person while retaining the ability to use the property for the rest of their lifetime. It is often used for estate planning purposes, and it bypasses the probate process and passes to the remainderman in fee simple at the death of the life tenant, and 

5. Enhanced Life Estate Deed

Enhanced Life Estate Deed is also known as a Lady Bird Deed, and it is a unique form of Deed that allows the Grantor to retain all rights over their real estate properties while they are alive. Once the Grantor passes away, the property bypasses probate and automatically transfers to the relatives listed on the Deed. However, it allows the Grantor to revoke the Deed before their death, create a new Deed, sell the property, take out a mortgage, or any other activities conveying or encumbering title to the property. 

What You Need to Know About Florida Commercial Real Estate Lien Law

The rights and obligations of parties participating in commercial real estate transactions are governed by Florida commercial real estate lien law. The law specifies how liens on commercial real estate properties in the state are to be filed and enforced.

According to Florida law, a real estate broker is entitled to a lien on the owner’s net earnings from the sale of commercial real estate. This lien covers the broker’s compensation. Brokers in Florida must be careful to ensure that they abide by the law. Failing to do so will prevent them from being able to enforce their lien.

What Does Florida Law Say About Real Estate Lien Law?

Florida Law 475, Part III, is the Commercial Real Estate Sales Commission Lien Act. The amount secured by any encumbrance, lien, or claim that takes precedence over the recorded commission notice is deducted from the gross sales proceeds. It also excludes any costs incurred by the owner to dispose of the property. The cost includes real transfer tax, escrow fees, title insurance premiums, and ad valorem taxes and assessments.

Any broker that wants to enforce a lien for a commission under the Act must also deliver a legally mandated commission notice to the following parties:

A commission notice must be in writing, signed by the broker, and an oath or affirmation must be made before a notary public under penalty of perjury.

The broker’s lien will expire within two years of the recording date unless the broker initiates an action to foreclose the lien and registers a notice of Lis pendens. The owner can reduce that time to sixty (60) days by documenting and serving a notice opposing the lien. Anyone with a stake in the commercial property can convert the lien into security by making a cash or surety bond deposit at the clerk’s office. The winning party is entitled to an award of legal fees and expenses in any case filed to enforce a CRESCLA debt.

Wrapping Up

Finally, understanding the Florida Commercial Real Estate Lien Law is crucial for protecting the rights and interests of property owners, contractors, subcontractors, material suppliers, and laborers in commercial real estate deals.

How to Avoid Basic Real Estate and Property Scams in Florida

The rate of real estate property scams in Florida is alarming and rising. Fraudsters are becoming more creative by the day, and we need to be aware of their tricks to avoid falling into their hands. You should be able to identify some basic real estate and property scams in Florida to avoid them.

Let us identify Some of the basic, most common real estate and property scams and how to avoid them. 

1. Escrow wire scam

This is usually done via direct phone calls, emails, or texts from an escrow company impersonating an actual real estate company. You get a phone call asking you to wire funds to a particular account for a property.

At first glance, you might have nothing to worry about because the company’s website looks professional and almost the same as the genuine company. However, having a closer look, you often realize that one letter or number is off.

How To Avoid Escrow Wire Property Scams In Florida

To avoid an Escrow scam, you must avoid any email, phone call, or text instruction asking you to wire funds. Never click on any email or text link, sign any real estate promissory note, or send funds to a third party before confirming from your title company.

2. The rental scam

You should not only be cautious of home buying or property acquiring scams. You should also be aware of rental scams, and you could be a victim if you are also looking out for rental.

Scammers and fraudsters often post fake rental advertisements and ask for a down or upfront payment before you can access the property. They abscond with the fund after you’ve made the payment.

How To Avoid Rental Property Scams In Florida

To avoid a rental scam, never wire any funds whenever you are looking for a rental. Also, make sure you go and verify the property in person and verify and confirm the accessibility of the property before making any initial deposit. Make sure you verify the identity of the person claiming to be a real estate agent.

3. The moving Scam

This form of scam is on the rise in Florida. Some groups of movers will help with packing or transporting your belongings, then refuse to release them to you.  Then thet request you to pay an extra high fee and threaten to dump you belonging halfway when you refuse to agree to their terms.

How To Avoid the Moving Scam

To avoid this kind of scam, ask the moving company to provide their license, then check if any complaint has been filed against them. Also, check if they have any bad reviews online.

Always watch out for red flags like substantial upfront payment, usually, reputable companies do not ask for complete payment until the job is done.

Major Documents That Will Help Secure Your Real Estate Property In Florida

Acquiring real estate property in Florida can be complex, as you will need to append your signature on many documents. The desire to own property can tempt you to rush to close a deal. However, confirming and verifying all documents is vital before sealing the deal.

There are numerous documents required to secure a real estate property, depending on the form in which you are acquiring the property, either through a mortgage or transfers of ownership. 

There are two closings if you use a mortgage lender to purchase a property; one is for the loan, while the other is for the property. The loan document can vary by the type of lender.

Generally, some of the documents required to complete a closing deal for real estate property in Florida include the following;

  1. Promissory Note

    This document explicitly states the terms of the loan, the interest rate, and your repayment plan. Once you sign the documents, it implies the terms stated therein legally bind you.

    1. Loan Estimate and Closing Disclosure

    The government requires lenders to provide their borrowers qualified for a mortgage a “truth in the lending statement.” This enables the borrower to be aware of the loan terms, such as interest rate, annual percentage rate, and the total cost over the life of the loan. It gives the borrower complete knowledge of the amount they will repay.

    The Legal Documents Needed to Transfer Ownership of A Real Estate Property in Florida

    The seller usually signs the documents first and then passed them on to the buyer to sign. Some of these documents include the following;

    This document states the description of the property in legal form. Once both parties sign it, the seller and the buyer, it officially transfers the property from the seller to the buyer.

    This document states some other property that is being transferred along with the main property. For instance, if the property is a furnished building, the bill of sale will contain other properties like furniture, appliances, etc.

    The seller is required to provide a notarized statement affirming the transfer of rightful ownership of property and also stating clearly the potential claims on the property such as outstanding leases, lieu, boundary line dispute, etc.

    It is important to note that the documents that will secure a real estate property are not limited to those mentioned above. You can contact a real estate attorney for more information to ensure you have the right and legally relevant documents for your real estate property. 

    Can Government Take Over Your Real Estate Property in Florida?

    Are you wondering if there are any circumstances when the government can take over your real estate property in Florida? Sadly, there are certain situations when the government can take over your real estate property even when you don’t intend to sell, lease, or let go. This scenario is allowed under the “eminent domain” in the fifth amendment.

    What is Eminent Domain?

    Eminent domain is the legal right that allows the government and its entity to take over your property and use it for public purposes. However, the government has to provide enough proof that the property will be used solely for public purposes. The government will also make a fair value offer for the property as “just compensation.”

    In Florida, the government can exert eminent domain to acquire properties that would be converted into public infrastructures. Such projects include rails, highways, roads, schools, and other public buildings. Although in most cases, property owners have little or no influence to stop the process, and they retain certain rights under Florida Law.

    Protect Your Rights and Real Estate Property with The Right Representation

    As much as property owners do not have significant influence in eminent domain, they retain certain rights that can be duly exerted with proper representation. One of these rights is that the government must prove that the mapped property is for public use. Also, the government must offer fair compensation and cover the property owner’s legal representation fees. They also cover other essential costs for settling the eminent domain case.

    Once your property is mapped for a government takeover, you have the right to full legal representation. Your real estate attorney can help to ensure that all your rights and interests are duly protected under the law.

    Interestingly, eminent domain cases do not work contingency fees, which means you don’t have to pay the attorney a certain percentage of your compensation. Instead, the attorney fees are awarded separately.

    Negotiations and Settlement

    As long as you and your attorney can estimate your property and its role in the government’s project, you can negotiate a fair settlement. Sometimes, the first government offer might be fair enough, and your attorney advises you to take it. In other cases, you might have to re-negotiate for a fairer deal to cover the losses. Either way, hiring an experienced and skilled real estate attorney is essential to get the best possible outcome.

    Unlike regular property sales, where buyers can walk away, the government can file a condemnation suit for the property if there is no concrete agreement. This suit allows the jury to determine the value via trial. In most of these cases, the government is required to pay the value of the jury’s appraiser. The jury might also award an additional amount to ensure the compensation is full and fair. 

    Basic Real Estate Scams You Should Watch Out for If You Own a Property in Florida

    Like many other industries, real estate scams in Florida are on the rise. Fraudsters are becoming more innovative and bolder in their approach to scams. Many unsuspecting real estate owners and home seekers usually fall victim to fraudulent acts. 

    According to the Federal Bureau of Investigation’s Internet Crime Complaint Center data, about 11,578 victims reported instances of real estate and rental fraud in 2021 alone. Considering this predominance, it is best to protect yourself by having an idea of the common real estate scams in Florida to help you avoid them. 

    1.    Rental Scams and Fake Listings 

    Fraudsters and scammers post rental ads on various platforms to lure unsuspecting home seekers. The scammers often link with the property owners or agents, giving access to many details, including photos. Some scammers can also pick up photos from other listings and clone the details. They proceed to request an upfront payment as a deposit and grant you access to see the property. The scammers usually disappear once they succeed in getting the upfront payment. 

    2.    Escrow Wire Fraud 

    Scammers explore direct contact to carry out escrow wire fraud. They usually make contact with texts, emails, or phone calls and impersonate a representative from your escrow company. The scammers provide instructions about where to make your escrow payment using fake details, including a website simulating your escrow company. They use several tactics to get details and simulate an actual company to rip off unsuspecting individuals. 

    3.    Moving Scams 

    Moving scams come into play when you already got a property and trying to convey your items. The scammers set up like a moving company and give a service quote stating a precise amount which is usually relatively low. But when they show up, they hike the price and hold your properties to ransom, leaving you with little or no choice but oblige their request. 

    Real estate scams in Florida are becoming more prevalent and require you to be careful with your dealings. It is best to avoid these scams by paying attention to every detail during your transactions. Transactions that involve payment are best done physically with legal documents to support them. Also, involving an experienced attorney in your real estate dealings can help you to be less vulnerable to scams.

    Do I need a Legal License to Become a Realtor in Florida?

    Florida is a good place for real estate agents because it is the third-most populous state in the nation and a favored destination for retirees. You will need a real estate license to buy or sell a property as a broker, real estate agent, or realtor in Florida.

    Which License is Right for You? 

    Years of experience and education make up a big part of the distinction between a real estate agent or realtor in Florida and a broker. A licensed broker must supervise an agent, while an unlicensed broker may work for themselves or employ agents to work for them. Before becoming a broker, additional coursework and a minimum of two years of experience working as an agent must be taken.

    Florida Real Estate License Requirement 

    There are two types of licenses in Florida. Each license has a different set of requirements. For instance, a sale associate in Florida who handles a real estate transaction is qualified to do so but must report to a licensed broker. A broker can run their own business and employ more agents.

    License Requirements for an Agent

    License Requirements for Broker

    Lastly, becoming a real estate agent in Florida takes about one to two months. Becoming a broker may take a little longer because of the additional criteria, which include working a minimum of two years as an agent and completing 72 hours of real estate coursework (instead of the 63 hours required to become an agent).

    5 Major Laws in Florida that Impacts Real Estate Sale and Purchase

    There are different laws on real estate contracts in Florida. Realtors, sellers, buyers, and homeowners in Florida must be aware of the legislative laws that influence transactions and how to handle properties. Below are the five major laws on real estate contracts in Florida.

    Real Estate License Law

    Florida has laws directly affecting real estate licensees’ daily operations. And rules that indirectly impact how to conduct real estate transactions. Chapter 475 contained the Florida Real Estate License Law. The major divisions of the laws are;

    Estate Brokers

    Sales associates

    Real Estate Appraisals

    Commercial Real Sales

    Commercial Real Estate Leasing.

    The Florida Real Estate Commission (FREC) and the Florida Real Estate Appraisal Board (FREAB) are the regulatory authorities for the real estate and appraisal industries.

    Consumer Protection Act

    FS 501 contains the Florida Consumer Protection Act, divided into six chapters. This act specifies different schemes, tricks, and unfair activities that parties may face during real estate transactions. And it mostly affects licensees who rely significantly on telemarketing as advertising.

    Conveyance of Land

    The Statute” Title XL” section, known as FS 689, covers real and personal property, land conveyances, and declaration of trusts. This chapter is primarily relevant to persons who work with title companies or real estate attorneys during closings. FS 689.25 (1) (b) provides the disclosure requirements for stigmatized properties. It clearly provides that a fact that a real estate property once suspected to have been a site of a homicide, suicide, or death is not a material fact essential for disclosure in a real estate transaction.

    Florida Condominiums Act

    Florida Condominiums Act is FS 718 and has 6 major parts. Some of the sections in this act changed over time. Most condominiums may now be mortgaged with a conforming loan, whereas formerly, only those condominiums associations covering the costs of sufficiently high insurance were considered adequate collateral for lenders.

    Business and Professional Regulations

    FS 455 establishes general requirements for the majority of Florida’s regulated professions. The Florida Department of Business and Professional Regulations (DBPR) enforces this comprehensive chapter under the direction of the relevant boards or professional commissions.

    In conclusion, consult your attorney to know more about real estate laws in Florida.

    Do You Need a Closing Attorney to Buy a Real Estate Property in Florida

    Did you know that you can employ a Florida real estate attorney to handle your closing, including your title search? Employing a title company for your title search does not always go well. This reservation is because the cost can be equivalent to hiring an attorney, if not higher. Having an attorney on your side can be beneficial when there are potential legal complications with your acquisition. These complications include a complex purchase agreement, boundary disputes, or other worries.

    Role of Closing Attorney When Buying a Real Estate Property in Florida

    You must have a legal aide at your closing to ensure that you acquire a clear, marketable title to your property. Also, ensure that the seller has covered all construction costs. And that you are completely protected under the Florida Mechanics and Materialmen’s Lien Law if the house you are buying is still being built or was just finished. Your rights and obligations under this law can be explained to you by an attorney. The property may be liable to liens even after the full contract price has been paid if you fail to take precautions against mechanic’s liens. Additionally, extra caution should be exercised after recent home repairs or when construction supplies have been delivered.

    Your attorney can inform you of the title after conducting a thorough inquiry if the seller can transfer such a title to you. No one can offer you advice without a thorough inquiry. Remember that the company does not speak for you if you are closing at a title insurance firm. It is only serving as a closing agent. This can also be the case if you are concluding at a lawyer’s office. Also, investigate carefully to find out if you are being represented before you close. Your attorney can review the pertinent title information to ascertain who is the land’s owner, any flaws or claims made against that ownership, and any steps that must be taken to ensure a good record title.

    Lastly, as a cautious buyer, you should demand that your attorney attend the closing to review every aspect. Your attorney will be aware of the details crucial to ensuring that your purchase results in trouble-free ownership.