A Quick Start Guide to Real Estate Law in Florida
Real estate law in Florida is essential for anyone involved in buying, selling, or owning property in the Sunshine State. Understanding the basics can save you time, money, and legal trouble.
Quick Snapshot:
– Key Laws: Florida Statute Chapters 475, 455, 215, 120, 20.
– Recent Updates: Witness address requirements starting January 1, 2024.
– Transactional Rules: Disclosure requirements for brokers and transition procedures for brokerage relationships.
Florida’s real estate law is governed by a framework of state statutes that affect financial, professional, and administrative procedures. The primary laws include:
- Chapter 455: General business and professional regulations.
- Chapter 215: Financial provisions affecting state treasury and fees.
- Chapter 120: Administrative procedures and agency authority.
- Chapter 20: Organizational structure of state agencies, specifically the Department of Business and Professional Regulation which oversees the Division of Real Estate.
To navigate these laws successfully, it’s important to understand recent changes and their impact on real estate transactions and ownership.
Key Real Estate Laws in Florida
When dealing with real estate law in Florida, it’s crucial to know the key laws that govern transactions and property rights. Let’s dive into the main ones:
Florida Real Estate Settlement Procedures Act (RESPA)
The Florida Real Estate Settlement Procedures Act (RESPA) aims to protect both buyers and sellers in real estate transactions. This law ensures transparency and fairness, especially regarding the costs associated with buying a home.
Key Points:
- Buyer Protection: RESPA requires lenders to provide a detailed estimate of closing costs within three days of receiving a loan application. This helps buyers understand the financial commitments involved.
- Seller Protection: Sellers benefit from RESPA as it prevents hidden fees and ensures all parties are aware of the transaction costs.
- Transaction Regulations: RESPA prohibits kickbacks and unearned fees, promoting honest business practices in real estate transactions.
Chapter 475: Real Estate Brokers, Sales Associates, Schools, and Appraisers
Chapter 475 of the Florida Statutes is fundamental for anyone involved in real estate. It outlines the rules for brokers, sales associates, and educational institutions.
Key Points:
- Brokerage Relationships: Real estate professionals must disclose their relationship with clients, whether they are single agents, transaction brokers, or have no brokerage relationship.
- Transaction Brokerage: Most transactions in Florida are handled by transaction brokers, who provide limited representation to both parties without a fiduciary duty.
- Required Disclosures: Agents must disclose all known facts that materially affect the value of a property and are not readily observable.
Property Rights in Florida
Property rights are essential for homeowners and investors. These rights allow individuals to use, maintain, develop, and improve their property while ensuring privacy and the right to exclude others.
Key Points:
- Use and Maintain: Owners can use their property as they see fit, provided they comply with local laws.
- Develop and Improve: Property owners have the right to make improvements and develop their property, enhancing its value.
- Privacy and Exclusion: Owners can control who enters their property, ensuring their privacy and security.
Adverse Possession Law
Adverse possession allows someone to claim ownership of land under certain conditions. In Florida, this is often referred to as the “seven-year rule.”
Key Points:
- Seven-Year Rule: To claim adverse possession, an individual must occupy the property continuously for at least seven years.
- Continuous Occupation: The occupation must be continuous and without interruption.
- Filing Return and Paying Taxes: The claimant must file a return with the county appraiser and pay property taxes during the seven-year period.
Understanding these laws helps ensure that real estate transactions are conducted legally and fairly. Next, let’s look at recent changes and updates in Florida real estate law.
Recent Changes and Updates in Florida Real Estate Law
Witness Addresses Requirement
Starting January 1, 2024, Florida law will require witnesses to provide their addresses on documents that affect the ownership of real estate. This includes deeds, mortgages, and other legal instruments. Witnesses must now include their signature, printed name, and address on these documents.
Documents that require witness addresses:
- Deeds
- Mortgages
- Easements
- Affidavits (e.g., Affidavit of Sufficient Funds)
- Notice of Commencement
Exceptions:
- Instruments executed before July 1, 1991
- Court orders, judgments, or writs
- Instruments executed outside Florida
- Wills and plats
Recording Notification Service
By July 1, 2024, each Florida county must establish a free recording notification service. This service will notify registered users whenever a land record is recorded under their monitored identity. Users can monitor up to five identities, such as personal or business names or parcel identification numbers.
Notification details:
- Information identifying the monitored identity
- Date of recording
- Official record book and page number
- Instructions to view the land record
- Clerk’s office contact information
This service aims to alert property owners to any unauthorized changes to their land records swiftly.
Quiet Title Actions for Fraudulent Attempted Conveyance
Florida has introduced a new cause of action to combat fraudulent conveyances. Under Florida Statutes, § 65.091, if a court finds that a deed or instrument was fraudulently executed, it must restore the plaintiff’s original title and rights to the property.
Key Points:
- Summary Procedure: Allows for expedited court processes.
- Form Complaint: The clerk must provide a form complaint for such actions.
This law aims to protect property owners from fraudulent attempts to transfer their property.
New Form of Quitclaim Deeds
Florida has standardized the form for quitclaim deeds. Under Florida Statutes, § 689.025, quitclaim deeds must now include specific language and details.
Required Language:
- Date of execution
- Grantor’s and Grantee’s names and addresses
- Legal description of the property
- Consideration amount
Optional but Recommended:
- Parcel identification number
This standardization helps ensure clarity and legal compliance in property transfers.
Lee County Pilot Program for Identity Verification
Lee County is testing a new program to prevent title fraud by requiring identity verification for anyone recording a deed. Participants must present a government-issued ID either in person or online.
Key Points:
- ID Verification: A government-issued ID is required.
- Record Keeping: The clerk must keep a record of the ID and associated deed.
- Online Recording: Individuals can upload a photocopy of their ID.
The program will run until December 31, 2025, and aims to assess the effectiveness of ID verification in reducing title fraud.
These recent changes and updates in Florida real estate law aim to enhance transparency, security, and fairness in property transactions. Next, we’ll explore the licensing process for real estate professionals in Florida.
Real Estate Licensing in Florida
Licensing Process
To become a real estate professional in Florida, you need to follow a specific set of steps:
- Coursework: Complete 63 hours of pre-licensing education from a state-approved school.
- Exam: Pass the Florida Real Estate Sales Associate Exam.
- Background Check: Submit fingerprints for a background check by the Florida Department of Law Enforcement and the FBI.
- Application: Apply for your license through the Department of Business and Professional Regulation (DBPR).
Referral Fees
In Florida, referral fees must go through the brokerage company to the associate. The Florida Real Estate Commission (FREC) allows direct payment at closing if the broker instructs the closing agent in writing. However, this is the only exception. Florida licensees cannot pay fees to unlicensed individuals for real estate services, including attorneys. There is a small finder’s fee exception: property management firms or landlords can pay up to $50 per transaction to tenants who refer new tenants.
Designated Sales Associate Law
In commercial transactions, a single sales associate can represent both the buyer and the seller if each has assets of $1 million or more and signs the required disclosures. This law also applies to commercial leases, allowing one sales associate to act as a single agent for both the landlord and the tenant. However, this law does not apply to residential sales.
Title Research
Analyzing property title is complex and should be handled by a licensed attorney. Real estate agents should advise clients to consult an attorney or obtain title insurance. Agents can face disciplinary actions, including license revocation, for giving opinions on property titles.
Multiple Licenses
Sales associates and broker-associates cannot hold multiple licenses or work for more than one real estate company. However, brokers can hold multiple licenses and work for various companies. Florida licensees can also hold a real estate license in another state.
Name Changes
If an agent or broker legally changes their name, they must request a reissued license with the new name. The request must include a copy of the legal document (e.g., marriage license) that changed the name.
Hiring New Agents
New sales associates cannot start real estate activities until they receive a license number from the DBPR, and their information is updated in the DBPR database.
Opening an Office
Only brokers can open real estate offices in Florida. Each active broker must maintain and register an office with the Florida Real Estate Commission. Sales associates and broker-associates must be registered with a broker and work out of the broker’s office. Brokers can register offices outside Florida if they agree to cooperate with DBPR investigations.
Frequently Asked Questions about Real Estate Law in Florida
What is the main law that governs real estate in Florida?
The main law governing real estate in Florida is the Florida Real Estate Settlement Procedures Act (RESPA). This act provides protections for both buyers and sellers. It regulates transactions to ensure fairness and transparency.
RESPA requires that all parties are informed about closing costs and prohibits certain unfair practices, like kickbacks and referral fees that could increase the cost of settlement services. Essentially, it’s designed to protect consumers during the real estate transaction process.
What are my property rights in Florida?
In Florida, property rights are comprehensive. As a property owner, you have the right to:
- Use: You can use your property in any lawful manner.
- Maintain: You are responsible for maintaining your property and ensuring it meets local regulations.
- Develop and Improve: You can develop and improve your property, subject to zoning laws and other local regulations.
- Privacy: You have the right to privacy on your property.
- Exclusion: You can exclude others from your property, meaning you control who enters and uses it.
These rights allow you to fully enjoy and utilize your property within the boundaries of the law.
What is the 7-year property law in Florida?
The 7-year property law in Florida refers to adverse possession. This law allows someone to claim ownership of property if they have continuously occupied it for at least seven years. Here are the key points:
- Continuous Occupation: The person must occupy the property without interruption for seven years.
- Filing Return: They must file a return with the property appraiser’s office.
- Paying Taxes: They must pay property taxes during the period of occupation.
Adverse possession is a way for someone to gain legal title to property they have used and maintained, even if they are not the original owner. However, strict requirements must be met, and the process involves legal filings and tax payments.
These frequently asked questions cover some of the most important aspects of real estate law in Florida, providing a foundation for understanding how the law protects and regulates property transactions and ownership.
Contact Legal Counsel, P.A. For Real Estate Law in Florida
In summary, real estate law in Florida is comprehensive and detailed, covering everything from property rights to adverse possession and licensing requirements. Understanding these laws is crucial for anyone involved in real estate transactions, whether you’re buying, selling, or managing property.
At Legal Counsel, P.A., we are committed to providing top-notch legal services to our clients. Our team of experienced attorneys is dedicated to guiding you through the complexities of real estate law, ensuring your interests are protected every step of the way.
We pride ourselves on our commitment to excellence. Our clients’ needs are our top priority, and we go above and beyond to provide personalized, effective legal solutions. Whether you’re dealing with a straightforward property sale or a complicated real estate dispute, we are here to help.
Building strong client relationships is at the heart of what we do. We believe in open communication, transparency, and trust. When you work with us, you can rest assured that you have a dedicated team on your side, ready to assist with all your real estate law needs.
For more information on how we can assist you, visit Legal Counsel, P.A. and let us help you navigate the complexities of real estate law in Florida.
