USA - FLORIDA Law and Practice Contributed by: Jeffrey R Margolis, Marc S Shuster, James L Berger and Evan Rosenberg, Berger Singerman LLP
force housing into their projects for a particular period of time without the municipality’s approv - al. The law was enacted in response to Florida’s need for more affordable housing. For instance, if at least 40% of a proposed multi-family pro - ject’s units will be affordable to those earning up to 120% of the area’s medium income for a period of at least 30 years, then local govern - ments must allow its development on proper - ties that are zoned for mixed, commercial, or industrial use. Additionally, local governments are required to administratively approve multi- family and mix-used residential projects. This will have the effect of streamlining the approval process, lowering costs, and expediting comple - tion of new projects. Lastly, the State of Florida needs State-level leg - islation regarding insurance. The cost of insur - ance continues to increase to record-high levels, and it is impacting every asset class. One pos - sible solution is for the State to create incen - tives to bring new insurance companies into the market. There is, unfortunately, no legislation on the horizon to combat this problem. Most sophisticated real estate investors in Flori - da acquire real estate in a legal entity. The type of entity depends on the overall goal of the acquisi - tion, tax, limitation of liability, and other consid - erations, and can take the form of a partnership, corporation, or limited liability company (LLC), among others. Due to the corporate protections, tax benefits and flexibility of structural compo - nents, Florida and Delaware LLCs have become the most used for real estate transactions. The four basic types of ownership in Florida are: sole 2. Sale and Purchase 2.1 Categories of Property Rights
ownership, tenants by the entirety, joint tenants, and tenants in common. 2.2 Laws Applicable to Transfer of Title Transfer of Real Property by Deed, by Quit Claim, or by Transfer of Equity in the Ownership Entity In Florida, title to real estate is transferred by way of deed or transfer of ownership interest in the entity holding title to real estate by merger or otherwise. Transfer by Deed Each deed must be in writing (Florida Statutes Section 725.01), executed by the grantor in front of two witnesses and a notary public (Florida Statutes Section 680.01). Transfer by Merger The merger of a legal entity with another legal entity causes the transfer of the real property owned by such legal entity to the surviving entity without the requirement to record a conveyance instrument. Payment of Documentary Stamp Taxes Transfers of real property for value in Florida require the payment of documentary stamps taxes based on the consideration for the transfer. No Special Transfer Laws or Regulations Except with respect to licences required to oper - ate certain types of real estate, there are no spe - cial laws or regulations that apply to the transfer of different types of real property in Florida. 2.3 Effecting Lawful and Proper Transfer of Title In Florida, title to real estate is transferred by way of a deed containing the legal description of the property, which is signed by the transferor in front of two witnesses and a notary public. Sev -
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