Fund News and Alerts

By: René Rutan, Real Estate Council Relations Manager, Florida ARECs

If you have been shopping for a new home recently, as I have, you have undoubtedly discovered the Community Development District, or CDD. Many large, multi-phase communities with lifestyle amenities are now relying on this method of funding development, so it is essential that homebuyers and the real estate agents serving them have a full understanding of what CDDs are and how they work.

FIRPTA CHANGES – How much are you really making on your U.S. real property investments?

By: Sarah Gulati, Esq.

Prior to the PATH Act of 2015 (“Protecting Americans from Tax Hikes 2015”, effective 12/18/2015), if the seller of real property is a foreign person, Federal law required buyers to withhold 10% of the gross sale price and provide it to the IRS. With the implementation of the PATH Act, this 10% tax requirement has been altered. Effective February 16, 2016, the 10% withholding tax will be increased to 15%. Meaning, if you are a foreign person selling U.S. real property, 15% of the gross sales price of that property will go to the IRS in the form of a tax.

By: René Rutan, Real Estate Council Relations Manager, Florida ARECs

Title insurance is a mystery to most consumers and it really shouldn’t be. Confusion can often occur because lenders require title insurance to be purchased in order to obtain a mortgage, but it is not offered through your normal insurance agent where you purchase your homeowner’s or automobile policy. Instead, title insurance is typically issued by the party who conducts your real estate closing and is often lost in the shuffle of other concerns about obtaining the loan, finishing property inspections, and getting ready for your move. Title insurance is one of the most important things you can purchase to protect one of your largest investments and deserves a little more attention!

Title Insurance Through Lawyers (TITL) is your voice in the political arena of Tallahassee, and this election season all 160 legislative seats between the Florida Senate and the Florida House of Representatives will be on the ballot! This typically only happens once every 10 years, so now is the perfect opportunity for TITL to make a difference by educating and building strong relationships with Florida’s legislators, and we can’t do it without you!

By: Richard Zaretsky, Esq., Richard P/ Zaretsky P.A. Attorneys at Law

There are people out there that are looking for your email address but they are neither buyers nor sellers. Their goal is for YOU to help them steal money from YOUR client. They are thieves, crooks, scoundrels, terrorists, and intentioned with the worst of motives. Why do I know about this - I just saw it happen!!

By: Connie Clark, Fund Sr. Underwriting Counsel

The party who customarily pays the owner’s title insurance policy premium in a residential transaction in Florida varies by county. In at least one county, who pays the premium depends on where the property is located within the county. For Fund Members writing or reviewing contracts for property located in a county where the Fund Member is not familiar with the local custom, this variability may create uncertainty.

By: Michael J Posner

In a previous column I mentioned the story of the Amityville, New York house, the scene of a gruesome family murder that was sold, led to claimed paranormal activity, movies, books and more sequels, all detailing the house’s sordid past and its alleged possession. That house has been occupied and sold repeatedly despite its infamy, and without further incident.

By: Michael J Posner

With the Maltz Theater bringing back Glengarry Glen Ross, I thought this would be a good time to look at how various real estate issues are portrayed in cinema. From bad salesmen, bad spouses, and bad ghosts, real estate has been a good issue as a backdrop to explore the relationship between individuals, from greed, envy and fear.

By: Jeffrey A. Grebe, Esq

Inspections and repairs in residential real estate transactions can be a major source of disputes between buyers and sellers. Many of these disputes arise simply because the parties (and often their real estate agents) do not fully understand or follow the inspection and repair procedures under the standard residential real estate contract. This article will attempt to “de-mystify” the inspection and repair procedures and help all parties avoid costly pitfalls.

BEFORE Preparing a Sales Contract

Florida’s homestead law is one of the most generous in the United States. Florida’s Constitution provides that homestead is (1) exempt from forced sale; (2) devise and alienation is restricted; and (3) homestead affords tax exemptions. Of primary importance to real estate agents are the restrictions on alienation of homestead property.