Uniform Commercial Real Estate Receivership Act Is NOW THE LAW IN FLORIDA

The Uniform Commercial Real Estate Receivership Act (hereinafter “UCRERA”) became law July 1, 2020, marking a new era for Florida courts.

“Of course, this couldn’t have been anticipated, but with the economic fallout from COVID, and all the closures, the first thing that will be effected when people stop paying their rent is commercial real estate.”

Florida is one of only nine states that have adopted UCRERA since 2017.

UCRERA creates a process for state courts to appoint a receiver in disputes that arise over commercial real estate, typically a default. Once appointed by the court, a neutral receiver can manage an asset and prevent it from falling into disrepair.

Florida judges have the power to appoint receivers, but before UCRERA, there was no statute that addresses the process for commercial real estate disputes.

HB 783 and a companion, SB 660 by Sen. Lori Berman, D-Boynton Beach, passed both chambers unanimously.

For more questions regarding your Commercial Real Estate investment, call Gulati Law today!

Source: Florida Bar Article

Title to Real Estate Property!

 

A deed is a legal instrument used to convey real property. There are three main deeds in Florida, or three methods of transferring property. They vary depending on the guarantee that is offered by the seller, the type of property, or reason for transfer.

1) General Warranty Deed

  • Most complete form of ownership, or highest level of protection to buyer
  • Guarantee that grantor (seller) has legal title

2) Special Warranty Deed

  • Provides limited warranty of title
  • Seller guarantees he/she has not adversely affected the title to the property during their ownership period
  • Common for transactions with trustees, or personal representatives, & foreclosures

3) Quitclaim Deed

  • No warranties or guarantees from seller
  • Most risky form of ownership
  • Conveys the interests of the grantor (seller) but grantor does not represent he/she has any rights to convey
  • Common to transfer property among family members or when dealing with a divorce
  • Common to clear defects in title

lisa-jones-sale-pending-orlando-001

In most real estate transactions, we recommend obtaining a general warranty deed in congruence with a title insurance policy to ensure you have complete equity, or ownership in your new property & proper protection for any unexpected encumbrances. However, every case is different and you should discuss your options with a Florida Real Estate Attorney.

Stay tuned for our next blog on – which Deed is right for you!

What is a Phase 1 Environmental Site Assessment and Do I Need One?

Many times we get asked the following question: – Do we really need a Phase 1 Environmental Site Assessment?

Well, the answer is, it depends, but it is highly recommended.

images (5)

The purpose of a Phase 1 Environmental Site Assessment is to use a consistent approach to identify any existing or potential environmental conditions that may be present or affect a real estate property in question. Purchasers of real estate must conduct an “all appropriate inquiry” to qualify for the innocent landowner defense under the Federal Comprehensive Environmental Response, Compensation and Liability Act (“CLERCA”). Having a Phase 1 Environmental Site Assessment (“ESA”) conducted on the proposed real estate will mitigate any damages and protect your assets by proving that you as a purchaser legally met your due diligence obligations.

Contact Us Today!

Gulati Law