USA – FLORIDA Law and Practice Contributed by: Eduardo M. Soto and Fabio Giallanza, Weiss Serota Helfman Cole + Bierman, P.L
1. General 1.1 Main Sources of Law
perform, while other segments, particularly older con - dominium inventory and certain commercial assets, have faced pricing pressure and longer transaction timelines. Overall, the market has shifted from rapid growth in the immediate aftermath of the COVID-19 pandemic to a more balanced environment. In large metropolitan areas, particularly in South Flori - da, affordability pressure has been an important trend, which is shaping both housing demand and devel - opment economics. That affordability pressure helps explain why multi-family demand remains durable and why workforce and attainable housing remain major policy themes. In the residential condominium market, newer con - dominiums and luxury products continue to com - mand very high prices per square foot. On the other side of the spectrum, older condominium stock has faced significant pricing pressure and longer market - ing times. Many condominium boards are acting on deferred maintenance items in the aftermath of the 2021 Champlain Towers South collapse in Surfside. Rising costs of insurance have added further pressure on condominium budgets. Finally, older condomini - ums continue to grapple with the inspection, reserve and transparency requirements introduced by the Florida legislature in response to the Surfside disaster. In the retail market, leasing activity remained healthy, which suggests retail in core South Florida corridors is still benefiting from population density, tourism and experiential uses. Impact of Rising Inflation and Increases in Interest Rates Consistent with the US market at large, rising inflation and higher interest rates have materially impacted the South Florida real estate market by increasing borrow - ing costs and reducing affordability. Inventory levels have increased significantly, particularly for older resi - dential condominium units, shifting leverage toward buyers and extending transaction timelines. At the same time, the significant inflow of new residents allowed prices to remain fairly steady, despite the reduction in access to credit.
Real estate law in Florida is derived from a combina - tion of Florida Statutes (Chapters 475 and 689), the Florida Administrative Code and case law. At the state level, the primary source is the Florida Statutes, which govern the ownership, transfer, financing and devel - opment of real property. Florida courts also play a significant role through case law interpreting these statutes, particularly in areas such as contract enforcement, title defects, equitable remedies and lender rights. In addition, local governments (counties and munici - palities) impose zoning, land use and development regulations that directly affect real estate projects. These local ordinances govern permissible uses, density, permitting and entitlement processes, and are critical in both acquisitions and development. Beyond formal sources of law, customary practice is highly relevant in Florida real estate transactions. Title insurance requirements, the Uniform Title Standards, survey standards, escrow and closing procedures often shape how transactions are structured and com - pleted in practice. Federal law may also apply in certain contexts, includ - ing environmental regulation, lending compliance and anti-money laundering requirements, particularly in transactions involving institutional lenders or foreign investors. Overall, Florida real estate law operates as a layered framework in which statutory law, judicial precedent and local regulation are applied in conjunction with established transactional practice and federal law. 1.2 Main Market Trends and Deals Main Trends While the region continues to benefit from strong population growth, thanks to sustained domestic and international investment, and its position as a gateway market, transaction activity has become more selec - tive and asset-specific. High-quality and well-located properties, such as hotel properties, have continued to
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