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Effective February 16, 2016, recent changes to the Foreign Investment in Real Property Tax Act (“FIRPTA”) will require many buyers to withhold 15% of the purchase price when purchasing interests in real property from foreign sellers.

For those of you who don’t know, FIRPTA is a federal act requiring “foreign persons” to pay income tax on the amount realized from selling an interest in U.S. real property. When someone buys an interest in U.S. real property from a foreign person, FIRPTA requires the buyer to withhold a certain percentage of the purchase price to ensure the Internal Revenue Service (“IRS”) receives its share of taxes from the transfer. While the current laws and regulations require a buyer to withhold 10% in most instances, starting February 16, 2016, FIRPTA will require many buyers to withhold 15% of the amount realized by the foreign seller.

Continue Reading FIRPTA Withholding Increase for Real Estate Buyers

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The First District Court of Appeal’s recent holding in Howard v. Murray, No. 1D14-1996, 2015 WL 6847833 (Fla. 1st DCA Nov. 9, 2015), serves as a cautionary tale for those purchasers taking title to a parcel of real property that has been previously approved as a part of a development of regional impact (DRI).

The Facts

In Howard, the original developer of the 2300 acre Sandestin DRI went bankrupt and the DRI was then fragmented. The initial DRI development order was also amended to allot 550,000 square feet of commercial development rights to a 48.1 acre parcel, 16 acres of which were later sold. The deed’s language granting legal title to the 16 acre parcel made no mention of development rights.

Continue Reading DRI Development Rights Do Not Automatically Pass with the Conveyance of Title

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As defined in Section 380.06, Florida Statutes, a development of regional impact (“DRI”) is “any development which, because of its character, magnitude, or location, would have a substantial effect upon the health, safety, or welfare of citizens of more than one county.”

A Brief History of DRIs in Florida

Since the DRI program’s inception in 1972, it has been chipped away by the enactment of numerous legislative exemptions. In 2009, the Legislature enacted an exemption for Dense Urban Land Areas (“DULAs”), which exempted projects from DRI review in eight counties and 243 cities. In 2015, the Florida Legislature attempted to reduce duplicative and burdensome regulation by eliminating the requirement that new developments be reviewed pursuant to the DRI process by only subjecting such proposed developments to the requirements of the State Coordinated Review Process.

Continue Reading New Legislation on the Horizon for DRIs in Florida

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Recently, a number changes to Lee County’s land development regulations have been implemented which may be of significant interest to both the general public and practitioners throughout Southwest Florida.

Changes to the County’s LDC

On November 17, 2015, the Lee County Board of County Commissioners (the “Board”) adopted Lee County Ordinance No. 15-15, which modifies Chapters 10, 12, 26, and 34 of the County’s Land Development Code (“LDC”). This ordinance took effect on November 20, 2015.

Continue Reading Tidying-Up Lee County’s Land Development Regulations

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On October 26, 2015, the Division of Florida Condominiums, Timeshares, and Mobile Homes approved a proposed rule to amend and supplement the Florida Administrative Code provisions regarding condominium associations’ voting and elections. The proposed rule provides condominium associations with the option to allow the unit owners to vote using an online system, as an alternative to the traditional paper ballots.

While the language of the rule may change before it becomes final, as it stands, the following must occur before a condominium association may utilize an online voting system:

Continue Reading Condominium Association – Requirements to Conduct Electronic Vote

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If you own or are planning to buy a home in a “CDD” and aren’t sure what that means, this post is for you. A community development district, often referred to as a “CDD,” is a special purpose unit of local government created under Florida law, for purposes of financing, constructing, operating and maintaining community-wide infrastructure, improvements and services for the benefit of the properties within its boundaries. Examples of some of the types of improvements that might be included within a CDD are stormwater management systems, conservations areas, roadways, street lighting, and landscaping. Some CDD’s also own and operate utilities and recreational facilities such as clubhouses, swimming pools, and parks.

How does a Community Development District Operate?

Continue Reading Understanding Home Ownership in a Community Development District

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The story behind this new cause of action

This legislation expands the Bert J. Harris Jr., Property Rights Protection Act (which we have recently discussed here and here) and codifies the 2013 United States Supreme Court’s Koontz decision. Following the Koontz case, a local government’s power to condition the approval of proposed development by demanding property or monetary exactions has been significantly curtailed.

Effective October 1, 2015, Florida has crafted a new cause of action under Section 70.45, Florida Statutes, which will provide relief for property owners who have been subjected to such an unlawful exaction.

How it works

Continue Reading New Florida Law Benefits Property Owners Subjected to Unlawful Exactions

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In 2011, Florida enacted section 252.363, Florida Statutes, a law which grants certain permits and authorizations an extension for the amount of time a declared state of emergency was in effect, plus an additional 6 months.

Important Executive Orders

Following Governor Scott’s recent declarations of emergency, many throughout Southwest Florida now have an opportunity to extend the expiration dates of their permits. On August 28, 2015, following the threat of Tropical Storm Erika, Governor Scott declared a state of emergency in Executive Order 15-173 which applied to the entire state of Florida and will last until October 27, 2015. Previously, on August 6, 2015, Governor Scott had also declared a state of emergency for Dixie, Hillsborough, Pasco, Pinellas, and Taylor Counties that will last until October 5, 2015.

What does this mean for you?

Continue Reading The clock is ticking if you want a permit extension under this Florida law

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Those owning real property in Lee County have likely received their annual TRIM (Truth in Millage) Notice. We have found that some questions continue to repeat every year once taxpayers receive their TRIM Notices.

To help taxpayers understand what the TRIM means for them, we thought it would be helpful to go through a few quick tips for what to look for when reviewing this important document: Continue Reading Helpful Tips for Reviewing your TRIM Notice

On October 1, 2015, various revisions to the Bert J. Harris, Jr., Private Property Rights Act will take effect. On October 1, among other things, the definitions of “property owner” and “real property” will change as set forth in Chapter 2015-142 Laws of Florida. The changes may limit the reach of the Second District Court of Appeal’s decision that expanded the rights of property owners in Southwest Florida since “property owner” will mean “the person who holds legal title to the real property that is the subject of and directly impacted by the action of a governmental entity.” The FINR II, Inc. v. Hardee County decision held that the Bert Harris Act provided a cause of action to owners of real property “inordinately burdened and diminished in value due to governmental action directly taken against an adjacent property.” With the change in definition effective October 1, it seems the impact of the FINR II decision may be short-lived.

We’ll be sure to keep you updated!