Henderson, Franklin, Starnes & Holt, P.A.

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Not only have single family home prices increased, but inventory has decreased, spurring an increase in lot purchases in anticipation of new home construction. The return of single family home construction in Cape Coral will result in new jobs, increased wealth into the area and improvement in the economy.

The median sales price for Cape Coral and Fort Myers single family homes increased 20%, comparing November 2011 with November 2010 figures, according to the Florida Sales Report. Continue Reading Cape Coral, Florida, Looking Brighter: Real Estate Market Improving

Margo D. Beller of CNBC reported last month about a congressional bill introduced by Senator Charles Schumer (New York), and Senator Mike Lee  (Utah), aimed at attracting foreign investment to the U.S. housing market in another legislative effort to jumpstart the U.S. sputtering economy. The Visa Improvements to Stimulate International Tourism to the United …

Does the recording of a Notice of Commencement signed by the Landlord affect the Landlord’s rights under a previously recorded Notice of Lien Prohibition? The answer, of course, is: “it depends.” 

A “Notice of Lien Prohibition” is a tool sometimes available to landlords that prohibits contractors and materialmen from placing a lien on the landlord’s underlying fee interest to space that has been leased to a tenant, when a tenant has made improvements on the space but failed to pay the the contractor and/or materialman in full. This tool is available under Section 713.10 (2)(b) of the Florida Statutes, which provides the following protection for landlords:

The interest of the lessor shall not be subject to liens for improvements made by the lessee when:

1. The lease, or a short form or a memorandum of the lease that contains the specific language in the lease prohibiting such liability, is recorded in the official records of the county where the premises are located before the recording of a notice of commencement for improvements to the premises and the terms of the lease expressly prohibit such liability; or

2. The terms of the lease expressly prohibit such liability, and a notice advising that leases for the rental of premises on a parcel of land prohibit such liability has been recorded in the official records of the county in which the parcel of land is located before the recording of a notice of commencement for improvements to the premises, and the notice includes the following:

a. The name of the lessor.

b. The legal description of the parcel of land to which the notice applies.

c. The specific language contained in the various leases prohibiting such liability.

d. A statement that all or a majority of the leases entered into for premises on the parcel of land expressly prohibit such liability.

Steps to Take for Protection

To minimize the risk of a lien being placed on the landlord’s fee interest to rental property for Continue Reading Liens on Leasehold Interests – Landlords Beware

Florida’s Construction Lien Law is intended to provide a balance of protections for owners, contractors, subcontractors and material suppliers. Commercial landlords and lenders should be aware of recent changes to the Construction Lien Law which, in certain circumstances, have tipped the scale against their interests.

One of the most common problems faced by a commercial landlord is when a tenant’s contractor (or a subcontractor, supplier or laborer) records a construction lien against the landlord’s interest in the property. Such lien encumbers or “clouds” the landlord’s title to the property and can prevent the sale or refinancing of the property. It can also create a default under the landlord’s mortgage.Continue Reading Recent Changes to Florida's Construction Lien Law: Commercial Landlords and Lenders Beware

Often the 6 o’clock news highlights the plight of a homeowner fighting his or her homeowners’ association (HOA) because the association is enforcing a rule that the owner doesn’t like and claims to have been unaware existed. The rule was probably there all along had the homeowner read their association documents. Also in the course of everyday conversations in this economy, homeowners who have fallen behind on their assessments are asking, “Can my condo/homeowners’ association really evict me for just a few thousand dollars I owe?” Following are answers to five common questions owners ask, often when it’s too late, about purchasing and living in a community association:

1.  Can my association really “evict” me for unpaid assessments?

Yes, although it is not an eviction, but a foreclosure. In Florida, condominium associations, by law, and HOAs, if provided in their recorded documents, do have a lien to secure the payment of assessments, late fees, interest and attorneys’ fees and costs of collection.Continue Reading Top Five Questions About HOA/Condominium Associations

To continue our series to recap the Real Estate Investment Society’s “Challenges and Strategies for Property Development Today” workshop, and to follow Cody Vaughan-Birch‘s post on Development Incentives and Local Pro-Growth Policies, the second panel of professionals provided an overview of the current trends, challenges and strategies in property development from a legal and practical perspective.

Southwest Florida Real Estate:  Problem or Opportunity?

Steve Hartsell, a zoning and land use attorney with the Pavese Law Firm, summarized two circumstances where legal and practical strategies are needed:Continue Reading Practical Strategies for Dealing with Challenging Properties

In Maronda Homes, Inc. of Florida, et al, v. Lakeview Reserve Homeowners Association, Inc., the Supreme Court of Florida will soon determine whether common law implied warranties extend to the construction of common areas and facilities of a residential subdivision.

The Facts
After the turnover of control by the developer, Maronda Homes, the Lakeview Reserve community experienced drainage problems. Upon hiring an engineer to conduct an inspection, the Lakeview Reserve Association determined defects exist as to the paved streets, retention ponds, underground drainage pipes and grading of the site and lots. As a result of such defects, multiple lot owners allegedly experienced stagnant water, sinkholes, loss of grass, and erosion on their lots. 

The Association filed a complaint against Maronda Homes for breach of implied warranties of fitness for a particular purpose, merchantability, and habitability arising out of the alleged defective construction of the common area improvements. The Association claimed that the developer failed to construct the common areas properly to support a residential subdivision and the homes within it. The trial awarded a summary judgment to the developer. Continue Reading Florida Supreme Court to Hear Developer and HOA Battle Over Common Area Warranties