Real Estate Acquisition, Disposition, Financing, and Leasing

What is real estate acquisition, disposition, financing, and leasing?

Real estate acquisition refers to obtaining ownership or control over a property, usually through purchase or inheritance. Disposition, on the other hand, involves the transfer of ownership or management, such as selling or donating a property. Financing is essential in these transactions, as it enables buyers to secure funds to complete the purchase, often through mortgage loans or other lending options. Leasing is another aspect of real estate transactions in which a property owner allows a tenant to use the property for a specified period in exchange for rent. Each of these processes interrelates, and the extent to which they apply to real estate transactions depends on the interests of the parties buying and selling.

For example, suppose an investor decides to acquire a commercial property in Miami. They would first need to negotiate the purchase price and contract terms with the seller. Then, once both parties reach an agreement, they would secure financing, typically through a mortgage loan. Finally, after closing the deal and taking ownership of the property, the investor might lease the commercial space to a tenant. This entire process would involve various aspects of Florida real estate law, from contract formation to property rights and landlord-tenant relations.

Need help with creating, structuring, or enforcing real estate transactions? Schedule your consultation today with a top real estate transactional attorney.

Which Florida laws, rules, and regulations apply to real estate acquisition, disposition, financing, and leasing?

Florida laws governing real estate acquisition, disposition, financing, and leasing include the following vital statutes:

• Chapter 689 – Conveyances of Lands and Declarations of Trust, which governs the transfer of real estate ownership.
• Chapter 720 – Homeowners’ Associations, providing rules for associations that govern residential communities.
• Chapter 718 – Condominiums, regulating condominium ownership, management, and governance.
• Chapter 83 – Landlord and Tenant, outlining the rights and responsibilities of landlords and tenants in residential and commercial leases.

In addition to these state laws, local ordinances and regulations may apply to specific aspects of real estate transactions, such as zoning and land use. Furthermore, federal laws and regulations, such as the Fair Housing Act and the Real Estate Settlement Procedures Act (RESPA), may also impact real estate transactions in Florida. Consult a knowledgeable real estate attorney to ensure compliance with all applicable laws and regulations during any acquisition, disposition, financing, or leasing transaction.

What common issues associated with real estate acquisition, disposition, financing, and leasing lead to litigation?

The following issues tend to escalate transactional disputes to litigation:

• Title disputes: Challenges to the legal ownership or rights to a property can arise due to liens, easements, or conflicting claims of ownership. Properly examining the title through a title search can help mitigate this risk.
• Contract disputes: Conflicts may arise over the terms, conditions, or performance of contracts involved in acquisition, disposition, or leasing transactions. Ensuring arrangements are clear, comprehensive, and enforceable under the Florida Uniform Commercial Code can help avoid litigation.
• Disclosure issues: Sellers must disclose certain material defects in a property under Florida Statutes Section 689.25. Failure to disclose known defects can lead to litigation.
• Financing disputes: Disagreements over loan terms, conditions, or performance can lead to conflicts between borrowers and lenders. Compliance with applicable state and federal regulations, such as 12 CFR 1026 – Truth in Lending (Regulation Z), is essential to avoid financing-related litigation.
• Land use and zoning conflicts: Disputes may arise from non-compliance with local land use and zoning regulations. Familiarizing oneself with the relevant local ordinances can help prevent such disputes.

When a set of facts is appropriate for legal advocacy or intervention, there are many paths a claimant may take. We are value-based attorneys at Jimerson Birr, which means we look at each action with our clients from the point of view of costs and benefits while reducing liability. Then, based on our client’s objectives, we chart a path to seek appropriate remedies.

To determine whether your unique situation may necessitate litigation or another form of specialized advocacy, please contact our office to set up your initial consultation.

What are strategic measures to resolve issues and avoid litigation over real estate acquisition, disposition, financing, and leasing?

• Perform thorough due diligence: Investigate the property’s history, ownership, and potential legal issues to identify and address problems early in the transaction process.
• Draft clear and enforceable contracts: Ensure that contracts are comprehensive and comply with Florida contract law to minimize potential disputes over terms, conditions, and performance.
• Comply with disclosure requirements: Abide by Florida’s disclosure laws and provide complete and accurate information to the parties involved.
• Adhere to financing regulations: Comply with all state and federal regulations governing real estate financing, including the Truth in Lending Act and RESPA.
• Consult local ordinances: Familiarize with the relevant land use and zoning regulations to ensure compliance and avoid conflicts with local authorities.
• Negotiate and mediate disputes: Engage in good faith negotiations and seek alternative dispute resolution methods, such as mediation, to resolve conflicts without resorting to litigation.

Please contact our office to set up your initial consultation to see what forms of legal advocacy or intervention may be available for your unique situation.

Frequently Asked Questions

1. What is the difference between a warranty deed and a quitclaim deed in Florida real estate transactions?

A warranty deed guarantees that the grantor has clear title to the property and the right to transfer it, while a quitclaim deed offers no such guarantees. In addition, warranty deeds provide more comprehensive protection for buyers, including covenants ensuring that the grantor will defend the title against any claims. On the other hand, Quitclaim deeds only transfer the grantor’s interest, if any, without any guarantees.

2. Can a buyer get out of a real estate contract in Florida?

In certain circumstances, buyers may be able to cancel a real estate contract, such as during the inspection period, if financing falls through, or if there is a valid contingency clause in the contract. In addition, Florida Statutes Section 475.278 regulates transaction broker relationships, which may involve contract cancellations.

3. What is a homestead exemption in Florida, and how does it affect real estate transactions?

The homestead exemption under Florida Statutes Section 196.031 offers property tax benefits and protection from forced sale for primary residences. The exemption can reduce the property’s taxable value, resulting in lower property taxes. Homestead protections and exemptions can impact real estate transactions by affecting the property’s assessed value and potential liabilities.

4. What is the role of a title company in Florida real estate transactions?

Title companies perform essential functions in real estate transactions, such as conducting title searches, issuing title insurance policies, and facilitating closings. In addition, they help facilitate a smooth transaction by identifying and resolving title issues, protecting the parties involved, and ensuring compliance with Florida Statutes Chapter 627, Part XI.

Have more questions about real estate transactions and disputes?

Crucially, this overview of real estate acquisition, disposition, financing, and leasing does not begin to cover all the laws implicated by this issue or the factors that may compel the application of such laws. Every case is unique, and the laws can produce different outcomes depending on the individual circumstances.

Jimerson Birr attorneys guide our clients to help make informed decisions while ensuring their rights are respected and protected. Our lawyers are highly trained and experienced in the nuances of the law, so they can accurately interpret statutes and case law and holistically prepare individuals or companies for their legal endeavors. Through this intense personal investment and advocacy, our lawyers will help resolve the issue’s complicated legal problems efficiently and effectively.

Having a Jimerson Birr attorney on your side means securing a team of seasoned, multi-dimensional, cross-functional legal professionals. Whether it is a transaction, an operational issue, a regulatory challenge, or a contested legal predicament that may require court intervention, we remain tireless advocates at every step. Being a value-added law firm means putting the client at the forefront of everything we do. We use our experience to help our clients navigate even the most complex problems and come out the other side triumphant.

If you want to understand your case, the merits of your claim or defense, potential monetary awards, or the amount of exposure you face, you should speak with a qualified Jimerson Birr lawyer. Our experienced team of attorneys is here to help. Call Jimerson Birr at (904) 389-0050 or use the contact form to schedule a consultation.