Real Estate Exam 3 Important Florida Real Estate Laws

3 Important Florida Real Estate Laws

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The National Association of Realtors (NAR) states that over 70 percent of homeowners believe that now is a good time to sell. Perhaps this is why real estate careers are becoming quite lucrative, attractive and enjoyable. The State of Florida has very specific laws when it comes to property, real estate and landlords. Keep reading to learn about important real estate laws in Florida and visit here to access useful links and license requirements.

Real Estate Deposits for New Homes

First-time home buyers may question whether or not to put their deposit in escrow, or give the funds to the builder. Florida real estate law gives home buyers a choice that must be finalized in writing. Even though the easy decision is to just safely deposit the money in escrow, there are other factors that must be carefully weighed. This includes the risk tolerance of the buyer and whether or not the contractor is likely to complete the home project.

Escrow money is usually deposited with a third-party like an attorney or escrow agent.

Homestead Exemptions

Florida has some of the most generous homestead exemptions and protection regulations in the country. These laws prevent people from becoming homeless after unexpected economic changes. They allow people to register a small portion of their property as a homestead that is off-limits to creditors. Florida homestead laws do not establish a maximum value that may be designated as hands-off, so some homeowners can protect the entire value of their home if they file for bankruptcy.

However, the total acreage is limited to half an acre inside a municipality or 160 acres outside of the city. There are still four types of creditors who may still force the sale of a homestead to collect debts. First, the State of Florida, counties and municipalities. Second, creditors who were pledged during the mortgage application. Third, contractors and home builders who are owed money for their work. Fourth, creditors with property liens that predate the establishment of the homestead.

Adverse Possession Laws

Recent licensees may try to sell a home that is caught in the middle of an adverse possession claim. Adverse possession laws establish that when a person moves into an abandoned or neglected property and improves it, they may be given the legal title after a set time period. The State of Florida’s adverse possession laws requires people who make a claim on a given property to have lived there or paid the property taxes for at least seven years.

There are four basic requirements for an adverse possession claim to be accepted. First, the claimant and trespasser must be physically present on the property. Second, they must publicly and openly possess and trespass. Third, the person cannot share possession with anyone else or leave the property for long periods of time. Fourth, the person must be aware of their trespassing, not know that it’s private property or have made an honest mistake.