| The primary method of a foreclosure in Florida is Judicial, which will usually take around 6 months from the time a property owner receives a "notice of default"(pre-foreclosure status), until the property is attained, then sold by the lender (foreclosed). You have legal rights defined by Florida Statute chapter 702. Typically options range from, satisfying the delinquency, selling the home, attaining additional funds through a loan, and bankruptcy. Some lenders may allow you to restructure or re-negotiate the terms of your loan in order to prevent the foreclosure process from occurring. Another option is to contact an investment company that pays cash for homes, even if you have negative equity. It is recommended that you consult with your Attorney to determine what's best for your situation. |
What is a CDD (community development district) Fee?
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Back in the day local governments paid for roads with property taxes, but due to the rapid expansion and growth of some counties and the desire of homeowners to live in affordable communities with superior amenities a CDD fee were created. The costs of building roads, utilities, and amenities such as clubhouses, pools, tennis courts and golf courses are financed by the developer with a CDD through tax-free municipal bonds. Rather than paying everything up front which would mean a more expensive home price for the buyer, the homeowners pay the costs over a span of 15 to 30 years. CDD's are different from a HOA (home owners association). Usually a CDD Board is responsible for all the maintenance and repairs of the common areas and amenities, while the HOA Board will have control of the landscaping and general appearance and upkeep of the homes with deed restrictions and covenants.
A five-member CDD board is chosen by the developer which issues the bonds and levies taxes and assessments on the homeowners, who pay the added fees along with their county and city taxes. When most of the homes in a development are sold, and all the crucial initial decisions have already been made, homeowners can begin to sit on the board usually for up to 6 years.
CDD's must register with Florida's Department of Community Affairs and are required to submit audits and revenue/expenditure reports to the Department of Financial Services. They must send their annual budgets to the local government who have no power over them.
CDD's can make or break a community with their decision making and budget management. Example: A CDD board decides to build a world class golf course and charge customers for playing there. The board increases your annual CDD fee to build the Golf Course. After the golf course is developed they:
Start bringing in an enormous amount of revenue, which can essentially be applied to paying off the CDD bond, therefore dramatically increasing the value of the homes within the community.
OR
Bring in little or no revenue. The homeowner’s CDD fee has increased and may see a decline in property values because of hesitation from buyer’s to move into the high debt obligated community.
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What is a HOA (home owners association)?
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| A HOA is a mandatory membership organization of a community comprised of two or more homeowners for the purpose of maintenance and upkeep of commonly owned areas. A HOA collects fees from the homeowners within the community to put it into a budget that maintains the community and enforces deed restrictions and covenants within the community's guidelines. The fees can range in price dependent upon the competency of the HOA board members to maintain a proper budget and of the size of the community. Some communities may have a HOA in addition to a separate maintenance fee. This is most commonly found with condos or town-homes. Some communities have deed restrictions or covenants without a HOA. |
What are Deed Restrictions and Covenants?
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| Deed Restrictions are restrictions placed within a deed that control the use of the property that travel with the deed, and cannot generally be removed by new owners. Covenants are similar but apply as a binding agreement between the homeowners regarding use, maintenance, and upkeep of their properties. |
Brokerage Relationship Disclosure
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The Brokerage Relationship Disclosure Act of Florida Statute chapter 475 states that all licensed Real Estate agents must provide a relationship disclosure to buyers, and sellers. The four types of disclosures are Single Agent, No Brokerage Relationship, Transaction Broker, and Transition to Transaction Broker. What is the difference?
Single Agent is when a licensee represents, either the buyer or the seller with trust and confidence between the client and licensee. As a single agent, a licensee may not represent both buyer and seller in the same transaction.
No Brokerage Relationship is when a licensee does not represent the buyer, seller or the transaction.
Transaction Broker is when a licensee has the main job of facilitating the transaction. The licensee can have the buyers and sellers in the same transaction but does not represent either in a fiduciary capacity but provides a limited form of representation.
Transition to Transaction Broker is when a licensee goes from a Single Agent or No Brokerage to a Transaction Broker to assist the buyer and seller in the transaction. |
Contracts, Agreements, Addendum's, and Disclosures
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In Florida there are several different Contracts, Agreements, Addendum's, and Disclosures pertaining to a Real Estate Transaction that can be used. While most Developers and Builders will only use their own paperwork, the most commonly used documents that you will find with a home sale will be from FAR (Florida Association of Realtors) or FAR/BAR (Florida Association of REALTORS and The Florida Bar). FAR is approved by The Florida Association of Realtors and the FAR/BAR is approved by The Florida Association of Realtors and The Florida Bar. The paperwork that is involved in each transaction varies from transaction to transaction with regards to the type of agreement established, the best contract for the situation, and which addenda will apply. The disclosures will always exist, no matter what the situation is, they are mandatory and there is a disclosure for every situation. |
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