Investing in Florida real estate presents you with an opportunity to grow your wealth. There are several methods for real estate investment, and depending on how you approach it, several laws can apply to your real estate investments. When deciding what type of real estate investor you want to be, consider the laws that will apply. These real estate law insights will help you make informed decisions about your venture into investing.
Landlord-Tenant Laws
If you plan to rent out the real estate you invest in, you must familiarize yourself with landlord/tenant laws. These laws apply to a broad spectrum of areas, including habitability, security deposits, leases, and evictions.
Fair Housing Act
Another essential part of becoming a landlord is to know the Federal and Florida Fair Housing Act. These laws protect people in protected classes from discrimination. As a landlord, you cannot intentionally or unintentionally discriminate against anyone based on their race, color, religion, national origin, sex, disability, or familial status.
Adverse Possession Laws
As an investor, you must know adverse possession laws to protect yourself from becoming a victim. Adverse possession can happen to any real estate owner who is not an active and present owner. In an adverse possession claim, another individual can gain title to a property without prior ownership or purchase. To do this, they must satisfy a few requirements.
- Occupy the property continuously for at least seven years.
- The individual knows they are trespassing or made a reasonable mistake.
- Exercise actual possession of the property by being physically present and treating the property as their own.
- Not using the property in secret.
- May not share the property with others.
- Must be actively improve, cultivate, or protect the property
Limitations on Use
Local zoning laws can limit the purpose and use of a piece of real estate. These limits can directly impact the potential value of the property. This is especially impactful if you plan to invest in commercial real estate. In addition, there can be limits based on historical or environmental factors. Property that has historical significance will have limits on what can be done with the property. You will need to conform to these limits to protect the historical integrity of the real estate. Environmental limits can fall into two categories. The first is that the real estate has environmental contamination. As the owner, you may be required to pay for the clean-up of the property before any further development can be done. The other category of environmental limits focuses on conserving and protecting the nature or wildlife that call the property home. You may find the perfect piece of real estate, but if it has historical or environmental limits, this can significantly impact the property’s value.
Legal Liability Protection
As the property owner, you need to consider your potential liability if someone gets injured or has their personal property damaged due to the property’s condition. This is especially applicable if you plan to become a landlord. Knowing your duty to keep the property safe is crucial for limiting your liability.
Enforceable Contracts
Contract law is a sector of civil law that is crucial for real estate investing. You will need contracts for buying and selling real estate. You also need a contract called a lease if you plan to rent it out. Speaking with a lawyer who focuses on real estate law will help you craft an enforceable contract. Using online templates puts you at risk of using a contract that is not enforceable, missing terms, or has extra terms that you do not want.
Keep These Real Estate Law Insights In Mind
Familiarize yourself with Florida laws before you begin investing in real estate. That way, you protect yourself from several potential pitfalls. These real estate law insights will help you set yourself up for success. Talking with a real estate attorney before you begin investing can give you a deeper understanding of these laws. They can also explain how they can directly apply to your unique situation and any additional laws you may not know.
Request a consultation to plan your real estate investment with the guidance of an experienced attorney.
