Category: Legal Issues

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How Important is Accurate Information About Property?

Real estate licensees are expected to present accurate, verified information about the physical characteristics of a property. These days, some of their descriptions read more like puff marketing pieces. Yes, it’s a tough sales market, but all marketing by licensees is regulated by the states where they are licensed. Many agents are using AI to write property descriptions, complete with AI hallucinations.

Trying to project that a particular property is a “lifestyle” type property a la social media can subject licensees to serious discipline. Marketing to a particular segment of the population may invite scrutiny into possible violations of Fair Housing laws, etc.

For you, as a buyer, let your agent know that you will make the determination of what is necessary and desirable for yourself, by using objective criteria about the property details.

Also, it doesn’t hurt to verify the license status of someone claiming to be a real estate licensee before you meet with them or let them into your home.

You can check real estate agents’ licensing status by visiting arello.com

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Selling or Buying a Hurricane Damaged Home

Selling:

  • If the home was damaged, the seller should remove all wet drywall and dry the house out
  • Fill out a seller’s disclosure listing all known damage
  • Don’t cover water stains with paint – no cosmetic coverups
  • Do the necessary repairs and disclose all repairs
  • Get your own mold inspection done
  • Do a pre-listing home inspection to make sure you didn’t miss any repairs
  • Choose licensed Florida contractors to provide estimates and repairs
  • Don’t assume your home will sell only at a discount; many damaged homes are sitting on valuable land and many may even sell at the full market value of the home before it was damaged in the hurricane

Buying:

  • Get both home and mold inspections
  • Choose licensed Florida contractors for estimates and repairs you are considering having done
  • Get it in writing – if the seller wants to sell “as is” – get it in writing what repairs the seller will have done and what potential credits they may give you
  • Ask to see written evidence of the insurance proceeds and when they were disbursed to the seller
  • Make sure the property can be insured!
  • Ask if they have had the home treated for mold and whether they have a mold certification
  • If it looks like there’s no damage from the hurricane, ask if there was damage that was repaired
  • Ask for the seller’s disclosure and be sure to read it very carefully – ask questions about anything that seems vague
  • Know what has been repaired and what hasn’t – if repairs have been done ask what comany did the repairs and be sure to check whether the proper permits for the work were pulled from the local building department
  • If purchasing a condominium (this applies just to hurricane damage, not the new requirements) ask aboiut hurricane-related assessments, hurricane related insurance claims and if there are additional fees ask whether the seller will cover the fees or if the responsibility will be yours as the buyer

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2026 Florida Condos Situation

Florida Senate Bill 4D enacted May 26, 2022 on Building Safety called for MIs (mandated inspections) & SIRS (Structural Integrity Reserve Studies) for condo buildings and the disclosures of those results. Link below is the DBPR’s online database of those condos who have submitted their SIRS.

Condo buildings in Florida that were more than 30 years old (in 2022) faced a December 31, 2024 deadline for a mandatory “milestone inspection.” For condo buildings turning 30 years old between 2022 & 2024, the deadline was December 31, 2025.

https://dbpr-publicrecords.myfloridalicense.com/qpr/single/?appid=14f1ed21-7b21-4272-af14-9eaad7911440&sheet=mcprvJW&opt=ctxmenu&select=clearall

So, as of January 1, 2026, the inspection & reserve study deadline has passed. It required FULL RSERVE FUNDING. There was a 365 day Phase 2 repair clock for any immediate repairs required by Milestone Inspections. That is a non-negotiable. The Florida Legislature has not enacted any further extensions for compliance. These condo associations must now pay for their immediate repairs, as well as future reserves (as indicated by their SIRS.)

If a condo building is out of compliance, the local building officials are now in charge. This is a substantial issue. If a condo building is out of compliance, the local building officials may declare the building as an “UNSAFE STRUCTURE” (“unsafe and unfit for occupation”) which is an IMMEDIATE SAFETY EVACUATION that gives occupants “NOTICE TO VACATE” orders. That means the unit is uninhabitable almost overnight. (House Bill 913.) This can be done without any court proceedings. It’s not like a foreclosure situation where you have time to figure it out. The local building officials can “red tag” a building.

If this happens to your condo building you will have trouble securing insurance for the building. If you do not have insurance, any owners with mortgages will be in default technically. Carriers are refusing to renew policies where they deem there has been no repairs progress on the milestone reports. If your association thought they could buy some time, they were wrong.

If you’re shopping for a condo now, be sure you are using an agent who understands these issues to advise you.

A condo may already be in violation. Associations with 25+ units MUST post their milestone reports online,

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Our Transaction Policies

We send a notice to anyone who wants to utilize our services to sell their property BEFORE we will even consider an employment agreement, particularly for sales of vacant land. These policies have become necessary in a global economy, where scammers can be located anywhere on the planet. Out of our legal jurisdiction. So you’d get an e-mail that looks like this:

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Dear [Customer Name]:

We are looking forward to working with you to sell your property.

As part of our company policies (in accordance with licensing law & regulations duties) we ask you to review our policies listed below and reply to to this communication with the statement, “I agree.”

We are unable to list any property unless you first agree to these terms:

We will be conducting an exhaustive title search to confirm the rightful ownership of the property at the cost of the seller.

We require a copy of the seller’s latest property tax bill and the most recent proof of payment.

We require an in-person meeting or video conference with all sellers.

A “For Sale” sign with our contact information must be posted on every property we list, including the name of our listing agent and a phone number where we can be reached (unless prohibited by law or HOA or Condo Assn.)

We require all clients use one of our approved notaries public. If you are located out of our immediate area, we will provide a list of approved Notaries Public to you.

All transactions are subject to a minimum 48 hour hold before funds will be released. If the 48-hour period ends during a holiday or weekend, funds will be released on the next business day.

Sincerely,

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Developers Are Opting for “Detached Condos” Rather Than Platted Subdivisions

It could be a fatal mistake to invest in a property that appears to be a free standing house, but is actually a detached condominium! ALWAYS check the legal description if you are actually looking for a single family detached home; if it’s actually a detached condominium you’ll see “unit” or “condo” in the legal description.

Many MLSs, title companies and yes, even lenders misclassify this kind of ownership, thereby creating appraisal, mortgage and title problems. Realtors/MLSs add to the misclassification by quoting “lot size” — there is no individual condominium lot size — the lot size is for the entire development! Detached condo owners typically own the “surface” of the land under the structures, the structures, 200 ft. above the land, the systems, tree roots and anything that supports the home. The HOA owns everything else.

Detached condominiums are widely found in Texas, California, Florida and many other states.

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