1. People who exercise regularly have better mental health.
2. Consuming too much sugar can negatively impact cognitive function.
3. Regular meditation improves sleep quality.
4. Drinking coffee can provide a short-term boost in cognitive function.
5. Exposure to nature can reduce stress levels. – Increased vacant land development transactions in central Florida, particularly in Tampa, Orlando, and Jacksonville.
– High volume of loan refinances in commercial office, multifamily, and retail spaces.
– Initial increases in high-end and ultra high-end residential real estate market in South Florida, with recent slowing in the residential real estate market.
– Significant development of multifamily projects and increased multifamily rental rates.
– Development of transportation hubs in connection with the development of mass transportation.
– Redevelopment of urban areas to accommodate the growing trend of urban lifestyles.
– Major resurgence of interest in the office market and exceptional growth in office development, with office vacancy rates less than national averages.
– Increased demand for warehouse inventory resulting in a decrease in industrial vacancy rates.
– Increased demand for hotel and hospitality options, with rates at an all-time high.
– Continued development of healthcare-related properties. – There is an increased need for affordable housing.
– The commercial real estate market is strong in retail, multi-family, and industrial sectors, but growth is slowing in all sectors. – Qualified opportunity zone funds (QOFs) offer tax benefits for real estate investments, including front-end and back-end benefits based on the timing of investment.
– COVID-19-related restrictions in Florida were suspended by Executive Order 21-102, and SB 2006 prevents businesses from requiring COVID-19 vaccination documentation.
– Real estate investors in Florida use legal entities such as partnerships, corporations, or LLCs for ownership structures.
– Real property in Florida is transferred by deed or transfer of ownership interest in the entity holding title, with payment of documentary stamp taxes required for transfers.
– Title to real estate in Florida is transferred using a deed signed by the transferor in front of witnesses, with different types of deeds used, such as special warranty deeds.
– Due diligence for real estate transactions in Florida covers site information, constraints, governmental approvals, development rights, and property condition.
– Buyers typically request representations and warranties from sellers with knowledge qualifiers, and have remedies for breach of these representations and warranties. Sellers typically negotiate limitations to their liability for breaches. 1. Tax implications, including federal and state income tax and transfer tax, are important areas of law for foreign investors to consider when structuring their investment in real property.
2. The form and tax classification of the legal entity involved in the ownership and organizational structure of the real property can significantly impact taxation.
3. Understanding the tax implications of the investment vehicle used is crucial for foreign investors looking to invest in the United States. – The owner of real property in Florida is liable for soil pollution or environmental contamination, regardless of whether they caused it.
– The zoning applicable to any property in Florida can be found on the county property appraiser’s website or zoning map, or by requesting a zoning confirmation letter from the relevant municipality or county.
– In Florida, governmental agencies and some private entities may take or condemn private property through eminent domain, but full compensation must be paid to the owner.
– Florida documentary stamp taxes are due upon the recordation of a deed conveying real property, calculated based on the purchase price and generally 0.70% of consideration. There are exemptions and surtaxes that may apply depending on the county. – Most states, including Florida, do not require advance permission or subsequent notice for non-US entities to acquire real property.
– Foreign investment in US real property is primarily regulated by federal law, with some additional restrictions imposed by certain states.
– Acquisitions of commercial real estate can be financed by equity investment, debt, or a combination of both.
– A mortgage is the most common security instrument used to secure borrowed funds for a commercial real estate venture in Florida. – The USA Patriot Act requires foreign lenders to identify, verify, and record information on parties to a loan transaction to ensure compliance with anti-terrorism laws.
– Florida imposes a documentary stamp tax of 0.35% on notes or other written obligations to pay money, with a maximum tax of USD2,450 for documents not secured by Florida real property.
– A non-recurring intangibles tax of 0.20% is imposed on debt secured by a Florida mortgage, in addition to recording fees set by the counties based on the number of pages of the document being recorded. – The entity and its managers and owners must comply with relevant governing procedures, including proper notice and authorization, before giving valid security.
– Upon default under a mortgage, a lender must comply with any notice provisions in the mortgage and provide the borrower with any cure rights that may be applicable under the mortgage.
– Lenders must also consider any notice that may be required under a security agreement separate and apart from the mortgage, and under the Uniform Commercial Code (UCC).
– If it is determined that a default has occurred, the lender may seek to enforce its remedies, including by foreclosing on the encumbered real estate. – Existing debt can be subordinated to newly created debt through a subordination agreement between the first lender, new lender, and borrower.
– Loan documents typically protect lenders from environmental liability through indemnification and hold harmless provisions.
– If a borrower becomes insolvent and files for bankruptcy, all actions to enforce rights or remedies against the borrower are automatically stayed.
– The bankruptcy court may lift the automatic stay by agreement of the borrower or for a cause, including the lack of adequate protection of the secured creditor’s interest in the collateral.
– The borrower may challenge or seek to set aside the liens of the secured creditor, and may also seek to avoid transfers of property as fraudulent transfers. – Design and construction in Florida are governed by the strict standards of the Florida Building Code, which address storm surge and high velocity winds.
– Local governments, such as municipalities and counties, are responsible for regulating land use and zoning within their jurisdictions.
– To develop a new project, developers must first plat the property and obtain master plan and/or site plan approval from the local government. – Decisions on applications for development approval can be appealed through a petition for writ of certiorari, which involves a limited appellate review.
– The Florida Local Government Development Agreement Act allows developers and local governments to enter into development agreements to facilitate development, subject to certain requirements.
– Restrictions on development and designated use can be enforced through building permit conditions, code enforcement processes, and the potential foreclosure of recorded code enforcement liens after two years. – LLCs, limited partnerships, and general partnerships are the most common types of legal entities used for real property investments in the USA.
– Other forms of direct ownership include limited liability partnerships, corporations, real estate investment trusts (REITs), real estate mortgage investment conduits (REMICs), land or business trusts, and joint estates such as tenancy in common, joint tenancy, and tenancy by the entirety between spouses. – LLCs offer liability protection of a corporation and tax classification as a partnership, with flexibility in management and governance.
– Limited partnerships consist of at least one general partner and at least one limited partner, offering liability protection and tax classification as a partnership.
– General partnerships involve joint ownership and management of a business, but partners have unlimited liability.
– Corporations provide limited liability for shareholders, but may have higher tax rates due to double taxation.
– Real estate ownership structures like REITs, REMICs, land trusts, and joint estates offer different benefits and tax implications for investors. – An LLC can be classified as either “member-managed” or “manager-managed”, with the power and authority to govern the company varying based on the classification.
– A limited partnership, including an LLP, is governed and managed by general partners with exclusive power and authority.
– Commercial leases in Florida can be categorized into net, double net, triple net, and gross leases, with differences in how the rent is calculated. 1. In Florida, residential leases are more heavily regulated than commercial leases, with provisions for consumer protection.
2. The length of a lease in Florida is not regulated by the state, except for leases with unlimited terms.
3. Commercial leases in Florida typically have a length of three to five years, while ground leases are usually for 99 years.
4. Tenants are usually responsible for maintaining and repairing the property, except for the roof and exterior walls, which are the landlord’s responsibility.
5. Rent payments in Florida are typically collected on a monthly basis.
6. If there is no written lease in Florida, the duration of the lease is based on the frequency of the rental payments. – Commercial leases in Florida typically have rent escalation clauses that increase rent payments on an annual basis.
– Rent increases are usually based on a percentage increase and occur on the yearly anniversary of when rental payments commenced.
– Florida imposes sales tax on lease agreements and licenses to use real estate, except for certain exempt residential leases with a term greater than six months.
– Tenants are typically required to pay a security deposit and the last month’s rent at the commencement of a lease, in addition to the first month’s rent plus sales tax.
– Landlords typically pay the costs of maintaining and repairing common areas, but tenants reimburse these costs through common area maintenance charges in net leases.
– Tenants are responsible for paying their pro rata share of the cost of utilities and telecommunications services if they are not separately metered.
– Landlords are usually responsible for insuring the leased real estate and for repairing or replacing the real estate if it is damaged, unless it is a ground lease.
– Landlords may impose various restrictions on how a tenant may use real estate, and Florida zoning and land use laws also impose restrictions.
– If a lease is silent on the matter, the tenant may alter or improve the real estate, subject to practical and landlord-imposed limitations.
– Commercial leases, such as leases for industrial, office, and retail property, are not regulated to the extent of residential leases in Florida.
– The rights and remedies available to landlords and tenants in the event of a tenant’s insolvency are addressed in Section 365 of the Bankruptcy Code. – Security deposit can be in the form of cash, letter of credit, or a security bond.
– If the lease expires and the tenant holds over in the possession of the premises, it is considered a tenancy at sufferance.
– A landlord can terminate a lease for a monetary default or if a tenant fails to comply with non-monetary obligations under the lease.
– A landlord may evict a tenant in the event of a tenant default prior to the lease expiry date. 1. The property must be necessary for the government’s use.
2. The taking must be for a public purpose.
3. The condemning authority must have prepared a good faith estimate of the property’s value based on a valid appraisal report.
4. After the order of taking hearing, a 12-person jury decides the amount of compensation to be paid to the property or business owner for the taking.
5. Commercial tenants may share in compensation for real estate encumbered by their leasehold, usually done through a court order, mediated settlement agreement, or pre-suit settlement. – Florida construction law practitioners typically use the American Institute of Architects (AIA) suite of documents for construction projects with modifications to the base forms based on the terms of the transaction.
– Common price structures used for construction projects include fixed price or lump sum, guaranteed maximum price, and reimbursable based on various methods such as unit price and cost plus fixed fee.
– Methods for organizing the contracting of a construction project include Design-Bid-Build, Construction Manager as Agent, Construction Manager at Risk, and Design/Build. – Owners can shift construction risk by selecting a contracting structure that suits their risk tolerance.
– Owners negotiate “per day” liquidated damages for schedule-related risk.
– Owners can require contractors to provide payment and performance bonds or letters of credit to guarantee their performance.
– Prior to construction, owners and construction lenders require mortgages to be recorded before a notice of commencement.
– Occupancy of improved real property is determined by local laws and typically requires a certificate of occupancy or completion. 1. Corporations are subject to federal and Florida income taxes on gains from the sale of real property, with federal tax rates recently reduced to 21%.
2. Liquidating distributions by a corporation are not eligible for a rate preference with respect to long-term capital gains, so standard corporate income tax rates apply to gains realized from the sale of real property.
3. The selection of the proper legal entities through which to own and operate US real property is fact-intensive, with the partnership structure often remaining more favorable in the closely held setting.
4. Florida imposes several transfer-based or collateral-based taxes on real property transactions, which apply to both corporate and individual taxpayers.
5. Florida statutory law makes a purchaser of more than 50% of a business or the assets of a business jointly liable for certain unpaid taxes of the seller, including sales and use taxes.
6. The USA imposes a transfer tax system consisting of a gift tax, an estate tax, and a generation-skipping transfer tax (GST), which can pose material potential liabilities in the US-inbound setting. – In real property transactions in Florida, the transfer of 100% equity ownership interests of the grantor to the grantee instead of the real property itself can help avoid documentary stamp tax.
– However, Florida law imposes documentary stamp tax on certain indirect transfers and transfers without change of beneficial ownership.
– In mortgage loan refinance transactions, obtaining an assignment of the existing mortgage loan from the existing lender can save on documentary stamp taxes and intangible taxes payable for the new mortgage loan.
– Florida levies a sales tax on commercial rental and transient rental tax on guest accommodations and residential leases of six months or less, with a baseline rate of 6%.
– It is possible to implement a capital lease or “synthetic” lease for related party or inter-company leases, which can be treated as a sale transaction for financial and tax accounting purposes, including Florida sales tax purposes. Florida’s real estate sector continues to hold strong despite national concerns such as inflated construction costs and rising interest rates. Demand remains steady and fundamentals are strong, making the market attractive to investors. – Median prices for single-family homes in South Florida saw a significant annual increase in February.
– Prices across virtually all sectors in the US housing market experienced a breakdown.
– South Florida’s housing market remained strong despite the vulnerability of the overall US housing market. – Florida’s population has been growing steadily, attracting new residents due to its weather and tax-related perks.
– The state’s economy remains healthy, with strong job growth and an influx of wealth and businesses into the region.
– South Florida is becoming a finance hub, with major financial services players and tech giants relocating to the area.
– The state’s historically favorable tax environment is attracting wealthy individuals and businesses from other states, particularly New York.
– While Florida’s real estate market has been thriving, there are potential uncertainties and headwinds that investors should be cautious of. – Florida’s growing population is seen as a positive, but concerns about the impact on workforce availability have been expressed.
– South Florida has experienced a decline in home sales despite rising median home prices.
– The Federal Reserve has been raising interest rates, which could impact the real estate market in Florida.
– Florida’s economy and real estate market have shown strong growth and resilience, even during the pandemic.
– Berger Singerman has a real estate team with comprehensive experience in various aspects of real estate law and practice. [Editorial Title]
– The effects of climate change on polar bear populations
– How are polar bears affected by climate change?
– What are the potential long-term consequences for polar bears in a changing climate?
The following are the findings of the study on the effects of climate change on polar bear populations:
– Polar bears are facing reduced sea ice habitat due to climate change.
– This loss of sea ice is leading to decreased hunting success and increased energy expenditure for polar bears.
– As a result, polar bears are experiencing reduced body condition and reproductive success.
– The long-term consequences of these effects could lead to population declines and even extinction in some regions.
https://practiceguides.chambers.com/practice-guides/us-regional-real-estate-2023/florida
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