USA – FLORIDA Law and Practice Contributed by: Eduardo M. Soto and Fabio Giallanza, Weiss Serota Helfman Cole + Bierman, P.L
6.16 Effect of the Tenant’s Insolvency Outside bankruptcy, tenant insolvency typically con - stitutes an event of default allowing termination. In bankruptcy, US federal law governs, and tenants may assume or reject leases subject to court approval. Landlords are stayed from enforcing remedies without relief from the automatic stay. Rejection limits land - lord damage claims, while assumption requires curing defaults and providing adequate assurance of future performance. 6.17 Right to Occupy After Termination or Expiry of a Lease Commercial tenants generally have no right to remain after lease expiry or termination unless expressly agreed. If a tenant holds over, the lease typically con - verts to a month-to-month tenancy at an increased rent or subjects the tenant to damages. Landlords must pursue statutory eviction proceedings to regain possession. Clear lease provisions and prompt legal action are critical to preventing extended holdover occupancy. 6.18 Right to Assign a Leasehold Interest Tenants may assign or sublet only if permitted by the lease. Most commercial leases require landlord con - sent, which may be absolute or subject to reasona - bleness standards. Conditions often include financial qualification of the assignee, continued liability of the original tenant, delivery of notices and payment of transfer fees. Some leases allow assignment without consent in connection with corporate restructurings. 6.19 Right to Terminate a Lease Landlords typically have termination rights for non- payment of rent, abandonment, insolvency or other material defaults. Tenants may terminate for pro - longed casualty, condemnation or landlord default following notice and cure periods. Florida law does not imply broad termination rights, and remedies are primarily contractual. Force majeure clauses may excuse performance but rarely permit termination unless expressly stated. 6.20 Registration Requirements Leases exceeding one year may be recorded but are not required to be. Memoranda of lease are commonly recorded for long-term or ground leases to protect
tenant interests. Recording triggers documentary stamp tax if consideration is stated, and recording fees. Stamp tax is modest and typically paid by the party requesting recording, often the tenant. 6.21 Forced Eviction A tenant may be evicted for default through summary court proceedings. The process generally takes sev - eral weeks to a few months if contested. The landlord must provide statutory notice, file an eviction action, and obtain a writ of possession. Pandemic-era evic - tion moratoria have expired, and no commercial evic - tion moratoriums are currently in effect in Florida. 6.22 Termination by a Third Party Leases may be terminated by governmental authori - ties, primarily through eminent domain or regulatory action rendering the use unlawful. Condemnation typi - cally results in termination under lease provisions, with compensation payable by the condemning authority and allocated between landlord and tenant as agreed. Regulatory shutdowns are rare and do not typically create compensation rights absent a taking. 6.23 Remedies/Damages for Breach Landlords may pursue unpaid rent, future rent subject to mitigation, re‑letting costs and other contractual damages. Florida law requires landlords to mitigate damages unless waived by lease for certain com - mercial tenancies. Security deposits are commonly required and held as cash or letters of credit. Letters of credit are increasingly preferred for large or credit-risk tenants and are often drawable upon default. 7. Construction 7.1 Common Structures Used to Price Construction Projects Florida construction projects most commonly use fixed-price (lump sum), guaranteed maximum price (GMP), and cost-plus contracts. Fixed-price contracts are common for well-defined scopes, while GMP and cost-plus structures are used for complex or fast-track projects. Payment structures often include retainage, milestone payments and change-order mechanisms. Pricing structure is driven by risk allocation and pro - ject complexity.
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