Remedies for defaults under loans secured by real property varies on a state-by-state basis. In the eastern part of the country, enforcement is mostly by mortgage foreclosure. In the western states, there are enforcement proceedings by way of a deed of trust. There is a spectrum of debtor protections afforded to borrowers depending on the … Continue Reading
Over the last few years, certain nontraditional lenders and a few banks have asked for a pledge of the ownership interest in borrowers as additional security to their mortgage on the property. The typical reason provided is that this allows the lender to avoid a long and costly foreclosure if the borrower fails to make … Continue Reading
COVID-19 has posed new challenges for community living. Condominiums, HOAs, and Cooperatives are confronting how to prevent the spread of the virus within their communities. When faced with residents who had tested positive for this disease, two high-rise condominiums in Miami, the Marinablue and the Brickell Bay Club, shut down use of common facilities and … Continue Reading
For many years we have sought to address the problems faced by mixed-use developments where different uses in a single structure are carved up into separate fee simple parcels. The main problem has been the inability to obtain separate tax folio numbers for the separate parcels. This has resulted in a situation where it is … Continue Reading
Once again, after a one-year hiatus, the Florida Legislature has produced several condominium bills. Typically, the Legislature passes a single condominium bill into which other approved bills have been merged. This year, perhaps to make up for the failure to enact any condominium legislation, four bills were passed: CS/CS/CS/HB653 (HB653), CS/CS/HB1237 (HB1237), (CS/CS/CS SB398 (SB398), … Continue Reading
The State of Florida has imposed a sales tax on commercial rents since 1969. Currently, the tax is imposed at the rate of 6 percent in every county except Miami-Dade which fixes the rate at 7 percent by reason of an add-on at the county option. Florida is the only state in the United States to impose … Continue Reading
Equitable liens are judicially imposed against property in the absence of any statutory or contractual basis for the creation of a lien. These liens arise in a number of different situations, but the below discussion is limited to situations involving construction financing. In this context, the project has gone awry and the construction lender may … Continue Reading
A Florida 2015 Condominium Law Amendment Condominiums were established in Florida in 1963. The condominium form of ownership in Florida has, therefore, been in effect for more than 50 years. An aging condominium stock sitting on valuable land gave rise to a modification of termination provisions in 2007, the effects of which are still playing … Continue Reading
Responding to perceived abuses in condominium terminations, the 2015 Florida Legislature passed Chapter 2015-175, amending the termination provisions of the Condominium Act. This statute clears up certain problems experienced in prior terminations while imposing a number of impediments to future terminations. If a termination plan is rejected, the period in which it may be reconsidered … Continue Reading
The Distressed Condominium Relief Act enacted as Part VII of the Condominium Act in 2010 (“Act”) was a temporary measure to encourage absorption of unsold condominium units arising as a result of the Great Recession. This legislation attempted to allay the fears of potential investors about incurring developer liability in connection with the purchase of bulk … Continue Reading
In an uncharacteristic bipartisan style, the House of Representatives of the U.S. Congress passed H.R. 2600 on September 26, 2013, and almost a year later, on September 19, 2014, the Senate followed by enacting S.2101. These identical bills exempt developers of condominiums from compliance with the filing requirements of the Interstate Land Sales Full Disclosure Act, … Continue Reading
An extension of the Distressed Condominium Relief Act has been approved by the legislature and is under review by Governor Rick Scott. Many were worried that the sunset of the Distressed Condominium Relief Act would prevent owners who bought distressed properties from reselling these properties in bulk. The act affords bulk purchasers of distressed properties … Continue Reading
The House of Representatives of the U.S. Congress, in a surprising nonpartisan move, passed H.R. 2600 on September 26, 2013. This bill, submitted by New York Congresswoman Carolyn Maloney, exempts developers of condominiums from compliance with the filing requirements of the Interstate Land Sales Full Disclosure Act, commonly referred to as ILSA. The bill passed … Continue Reading
HB 87, a controversial foreclosure bill that passed the Legislature, was signed into law by Governor Rick Scott on June 7, 2013 to become Chapter 2013-137 of Florida laws. The most significant portion of this law refines the use of an order to show cause as an alternative to a traditional foreclosure procedure and extends … Continue Reading
Three condominium and homeowners bills were passed by the Florida legislature: House Bill 73, Senate Bill 120, and House Bill 7119. One of the bills, Senate Bill 120, is currently before the Governor for review. Two of the three bills (HB 73 and HB 7119) inserted the Division of Florida Condominiums, Timeshares and Mobile Homes (“Division”) into the governance of … Continue Reading
At the height of the meltdown of the housing market in Miami-Dade County in 2008, the number of months needed to absorb existing inventory was at 29.7 months for single family housing and 40.4 months for condominiums but many experts believed the absorption period could be up to 10 years. Fast forward to the end … Continue Reading
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