USA - FLORIDA Law and Practice Contributed by: Jeffrey R Margolis, Marc S Shuster, James L Berger and Evan Rosenberg, Berger Singerman LLP
5. Investment Vehicles 5.1 Types of Entities Available to Investors to Hold Real Estate Assets A purchaser of real property can acquire and hold the property through a variety of invest - ment vehicles. The structure and form of entity or entities ultimately selected to hold real estate assets depend on the specific objectives for the property and can have a significant effect on, among other things, the owners’ rights in the property, the management of the property, investors’ liability and tax benefits, and liabilities associated with the ownership, operation, and disposition of the property. Selection of an Ownership Entity The ownership structure can greatly affect the success of an investment in real estate. The specific task and challenge at the outset are to create a structure that captures the underlying goals of the parties and meets the entity’s tech - nical, operational, financial, accounting, regula - tory, legal, and tax requirements. Most Common Vehicles The most common types of legal entities, trusts and forms of direct ownership utilised to effectu - ate real property investments in the USA gener - ally and in Florida specifically are as follows: • LLCs; • limited partnerships; • general partnerships; • limited liability partnerships in certain jurisdic - tions; • corporations; • real estate investment trusts (REITs); • real estate mortgage investment conduits (REMICs); • land or business trusts; and
4.5 Right of Appeal Against an Authority’s Decision
Decisions on applications for development approval are typically appealed by petition for writ of certiorari, which is limited appel - late review. The standard of review in certiorari review is whether procedural due process is accorded, whether the essential requirements of law have been observed, and whether the administrative findings and judgment are sup - ported by competent substantial evidence (City of Deerfield Beach v Vaillant, 419 So 2d 624, 626 (Florida 1982)). 4.6 Agreements With Local or Governmental Authorities The Florida Local Government Development Agreement Act, Section 163.3220, et seq, Flor - ida Statutes, allows developers and local gov - ernments to enter into development agreements to facilitate development, provided the develop - ment agreement meets certain minimum sub - stantive and procedural requirements set forth in the statute. 4.7 Enforcement of Restrictions on Development and Designated Use Restrictions on development may be enforced in several different ways. All building permits are conditioned on construction being consistent with development approvals. Violations of devel - opment and/or use restrictions may be enforced through a code enforcement process, which lev - ies per day fines on the property, attached as liens. Special magistrates or code enforcement boards adjudicate these code enforcement complaints. Recorded code enforcement liens may be fore - closed after two years.
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