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Condo Associations’ Rights and Remedies Concerning Abandoned and Foreclosed Units

August 11, 2014 Community Association Industry Legal Blog

Every so often condo associations must deal with one or more abandoned units within their communities. Whether the result of owners unable to secure a tenant or lender foreclosure actions, abandoned units can create serious issues for an association such as the growth of hazardous mold, insect infestation and other forms of unit deterioration. Sometimes a prior owner will leave a unit in an uninhabitable condition or even purposefully destroy parts of the unit, which isn’t discovered until after a foreclosure sale. Abandoned units in poor condition can lead to damage to the common elements and limited common elements if not timely addressed. The Florida Condominium Act enables associations to be proactive when these circumstances arise and provides various remedies to associations dealing with these predicaments. This Blog post will discuss condo associations’ rights and remedies concerning abandoned and foreclosed units in disrepair.

The Remedy of Specific Performance for the Breach of a Real Estate Sales Contract

August 1, 2014 Real Estate Development, Sales and Leasing Industry Legal Blog

Our recent Blog posts on real estate law have discussed the claims a seller of property can bring against a buyer who breaches a real estate sales contract and also the claims a buyer may bring against the seller when a breach has occurred. One post has also covered the seller’s disclosure obligations when entering into a real estate sales contract. These posts have peripherally mentioned the remedy of specific performance without giving much additional detail. This post will delve further into this remedy and discuss when specific performance is available to a buyer or seller when the other party has breached the real estate sales contract.

Legal Actions the Buyer of Real Property can Bring When a Seller Breaches a Real Estate Sales Contract

July 22, 2014 Real Estate Development, Sales and Leasing Industry Legal Blog

In a prior post, this blog discussed the legal claims a seller of real estate can bring against a buyer when that buyer breaches the real estate sales contract. A buyer, on the other hand, also has various legal and equitable claims against the seller of real estate when the seller is unable to convey marketable title or if the seller has a duty to disclose certain defects but fails to make those disclosures. When the seller breaches, the buyer’s claims will largely depend upon the terms of the sales contract, along with the buyer’s underlying goals. This blog post will describe the various legal actions that buyers of real estate can bring against a seller when that seller breaches the real estate sales contract.

A Seller’s Disclosure Obligations When Entering Into a Real Estate Sales Contract

July 16, 2014 Real Estate Development, Sales and Leasing Industry Legal Blog

Before entering into a contract to sell a piece of real estate to a prospective buyer, a seller is obligated to disclose certain things to the buyer. When the seller fails to make those proper disclosures, the buyer has available several legal and equitable remedies that he or she can bring against that seller. This is because, under Florida law, a seller’s failure to disclose certain conditions is considered a breach of the real estate sales contract. But a seller does not always have a duty to disclose, meaning the buyer is still subject to the doctrine of caveat emptor in some situations. This blog post discusses when the seller of real estate is under a duty to disclose, what the seller is required to disclose and under what circumstances the seller has no obligation to disclose.

Condo Associations Must Thoroughly Review Lender’s Documents Before Conceding That Lender is Entitled to First Mortgagee Protection Under Fla. Statute 718.116(1)(b)

July 3, 2014 Community Association Industry Legal Blog

A crucial section of the Florida Condominium Act, which directly and significantly affects the assessment revenue and yearly budget for all associations, is Section 718.116(1)(b), Florida Statutes.  That section has become known as the first mortgagee’s “safe harbor protection” because it limits the financial liability of a first mortgagee, or […]

Legal Actions the Seller of Real Property can Bring When a Buyer Breaches a Real Estate Sales Contract

June 24, 2014 Real Estate Development, Sales and Leasing Industry Legal Blog

It is not a situation that sellers of real property want to find themselves in, but it is a situation that could easily happen to anyone. After months of hard work getting a property in pristine condition to lure prospective purchasers, and then finally procuring a buyer, the entire transaction suddenly unravels. Despite signing the real estate sales contract, the buyer decides to walk away or, worse yet, fails to show at closing. What is the seller to do? This Blog post will discuss that very scenario and describe the legal actions that sellers of real estate can bring against a buyer when the buyer breaches the real estate sales contract.

The Enforceability of Liquidated Damages Clauses in Real Estate Sales Contracts

June 18, 2014 Real Estate Development, Sales and Leasing Industry Legal Blog

Real estate sales transactions, and the underlying contracts precipitating those transactions, are constantly the source of litigation. Usually, the real estate sales contract will attempt to either limit the remedies available to the parties involved or specifically provide a predetermined amount for any monetary damages awarded through litigation. When a contract contains a provision for a predetermined monetary award for damages, that provision is called a “liquidated damages clause.” This Blog post will discuss the enforceability of liquidated damages clauses as they pertain to real estate sales contracts.

Real Estate Contracts, the Statute of Frauds, and Exceptions to the Statute of Frauds

June 11, 2014 Real Estate Development, Sales and Leasing Industry Legal Blog

The “statutes of frauds” is a doctrine of law that requires certain contracts to be in writing and signed by the person to be charged in order to be enforced. One such contract that falls under the statute of frauds is a contract for the sale of real property. Fla. Stat. § 725.01. Case law has placed additional requirements on contracts for the sale of real property, requiring them to be specific as to the parties involved, the subject matter, the parties’ obligations and the consideration. Minsky’s Follies of Fla., Inc. v. Sennes, 206 F.2d 1, 3 (5th Cir. 1953). If the underlying real estate sales contract is not certain and clear as to all of those items then it is unenforceable. The reasoning for this was articulated by the Federal Fifth Circuit Court of Appeals: “In order that there be a contract [for the sale of real property], the parties must have a definite and distinct understanding, common to both, and without doubt of difference.” Id.

Condo Associations and HOAs can Violate the Fair Housing Act by not Timely Responding to a Unit Owner’s Request to Keep a Service Dog

May 29, 2014 Community Association Industry Legal Blog

On March 19, 2014, the U.S. District Court for the Southern District of Florida issued an opinion of which all condominium association and HOA board members should be aware. That case, Sabal Palm Condominium of Pine Island Ridge Association, Inc. v. Fischer, involved a resident’s request to keep a service dog due to her disability. The court ultimately determined that the condo association violated federal law in its unsatisfactory response to that request. Specifically, the court held the condo association’s actions violated the Fair Housing Act, 42 U.S.C. § 3601 et seq. (“FHA”).

Terminating Condominiums According to the Florida Condominium Act: Part VII

May 21, 2014 Community Association Industry Legal Blog

This is the final edition in a series of Blog posts dedicated to explaining the process for the termination of condominiums according to the Florida Condominium Act. This series has provided an overview of the entire termination of condominium process from the reasons for seeking termination (part I; part II), to the written plan of termination (part III; part IV) and the persons involved in carrying out the plan (part V). Arguably, the most important part of the process is allocating the sale proceeds once the plan of termination has been completed. This Blog post will discuss that process and provide the statutory requirements for distributing assets and allocating proceeds.

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