Overview Florida's new law directly impacts rental housing providers, for fraudulent rental applications are now considered a third-degree felony. This allows landlords to have stronger defenses against identity fraud, fake documents, and deceptive applications, especially considering that this activity has been increasingly more common in the rental market. This law takes effect October 1st, 2026, allowing for enough time for landlords to update policies and screening procedures for potential renters. Fraudulent Entry of a Residential Dwelling Unit This law creates a new crime for tenants who use forged, fictitious, or counterfeit documents to obtain a rental unit. This includes, but is not limited to, a driver's license, an identification card, a bank statement, or a paystub. This also includes creating a materially false statement, in writing, relating to the applicant's identity in any rental application for residential purposes. Along with this, the act of impersonating another person when completing a rental application is also addressed in this new law. Violations of these newly established rules are all considered a third-degree felony. Non-Curable Lease Violation Fraudulent entry is now clearly classified as a non-curable violation, meaning: Landlords may issue a 7-day notice to vacate No opportunity to correct the violation is required Eviction proceedings may begin immediately upon expiration of the 7-day notice This addition to the law clarified a landlord's ability to evict a tenant on the basis of suspected fraud. Why The Law Was Passed An increase in rental application fraud was brought to the attention of lawmakers, including fake income documents, identity theft, fraudulent employment verification, and online document-forging services. This activity led to significant financial losses for landlords and resulted in instability in rental communities. This new law was implemented to deter fraud and add protection for property owners and legitimate renters.  Landlords: What Does This Mean? With the implementation of this new law, landlords will have stronger screening authority towards potential new tenants. They now have the ability to remove fraudulent tenants more efficiently, strengthen the application screening process, and verify income and identity more thoroughly before accepting a rental applicant. Landlords should consider revising various operation processes, such as application procedures, income verification methods, ID authentication tools, and lease language related to fraud. These changes will allow landlords to reflect the new protections against renter fraud implemented by this law. When this new law becomes effective, Florida will have the strongest defense against rental application fraud nationwide. Landlords across Florida have been given powerful tools to protect their properties and communities. By making fraudulent applications not only a felony but also a non-curable violation, landlords have significantly more authority over the rental application process.

Lady Bird deeds and Florida land trusts are both methods of probate avoidance for heirs upon the death of a homeowner. The differences arise in the aspect of asset protection, privacy, and flexibility. Lady Bird Deed A Lady Bird deed only avoids probate. This allows the owner to maintain full ownership and control of the property during their life and does not affect Medicaid eligibility. Along with this, the owner has the opportunity to change their mind and remove the remaindermen from the Lady Bird deed if they so choose, and they do not need consent from the remaindermen. However, when the owner dies, any judgments against the remainderman can attach to the property if homestead is not maintained. Florida Land Trust As for a Florida land trust, this avoids probate but also provides privacy and asset protection for the beneficiaries. The asset protection piece is the biggest difference between a land trust and a Lady Bird deed. A land trust is slightly more complex, as it adds the flexibility to add multiple layers of successor beneficiaries. Along with this, the owner will likely not be able to refinance or pull out equity with the property in a land trust. This is not the case with a Lady Bird deed. Some insurance companies are hesitant about land trusts, so this is something to consider before making a decision on which to proceed with. Lastly, land trusts are managed by a trustee, which can be different from the beneficiaries. This provides convenience and professional management of the property. When having a mortgage on the property, both a land trust and a Lady Bird deed can be completed. If done correctly, the homestead exemption and the property tax rate will remain the same with either option. A Florida land trust is generally recommended over a Lady Bird deed unless the owner has no assets aside from the property, they are elderly, or they do not have any income excluding government benefits. To see what best suits your needs, please contact our office at (813) 803-4887 or admin@martinezlawfla.com to set up a consultation today.

A recent decision from the U.S. District Court has significant implications for the real estate industry. The Court vacated FinCEN’s 2024 Final Rule, which imposed nationwide reporting requirements on certain residential real estate transactions, finding that the agency exceeded its statutory authority. Background of the Final Rule FinCEN’s Final Rule required reporting for non-financed residential real estate transactions involving transfers to entities or trusts, with limited exceptions. Unlike prior Geographical Targeting Orders, which were limited in scope, the Rule applied nationwide and without a minimum dollar threshold, significantly expanding reporting obligations. The Rule was set to take effect on December 1, 2025. The Legal Challenge The Rule was challenged under the Administrative Procedure Act, with the plaintiff arguing that FinCEN exceeded its authority under the Bank Secrecy Act. After both parties filed motions for summary judgment, the Court ruled in favor of the plaintiff, concluding that FinCEN lacked the statutory basis to impose such broad reporting requirements. “Suspicious Transaction” Authority In its analysis, the Court focused on whether FinCEN had authority to mandate reporting of these transactions as “suspicious.” The Court rejected this argument, explaining that the statute permits reporting requirements only for transactions that are truly suspicious. It was found that FinCEN failed to demonstrate that all non-financed residential real estate transactions are inherently suspicious, noting that many such transactions are routine and legitimate, including those conducted without financing for cost savings or through entities for lawful tax and business purposes. “Procedures” Authority FinCEN also argued that its authority to require financial institutions to maintain “procedures” allowed it to impose the reporting requirements. The Court disagreed, concluding that this provision allows FinCEN to require procedural safeguards, not to create new substantive reporting obligations. Interpreting the statute otherwise would improperly expand FinCEN’s authority and undermine the limits set by Congress. The Court’s Holding Based on these findings, the Court held that the Final Rule exceeded FinCEN’s statutory authority and therefore violated the Administrative Procedure Act. Because the Rule was invalid on these grounds, the Court did not address the plaintiff’s constitutional arguments. Remedy and Impact As a remedy, the Court vacated the Rule in its entirety, restoring the regulatory landscape to what it was prior to the Rule’s implementation. The Court noted that vacatur is the default remedy under the Administrative Procedure Act and found it appropriate given the Rule’s deficiencies. This decision eliminates FinCEN’s nationwide reporting requirements for non-financed residential real estate transactions and reinforces the principle that federal agencies must act within the authority clearly granted to them by Congress.

Florida's homestead laws provide some of the strongest property protections in the country. Article X, Section 4 of the Florida Constitution shields qualifying homestead property from forced sale and most judgment liens. Although, there are important exceptions that every homeowner, buyer, and seller should understand. Whether you are preparing to sell your home or evaluating a title issue, knowing how homestead exemptions work can allow you to protect your rights and avoid costly issues that may arise. Florida's Constitutional Homestead Exemption Under Article X, Section 4, Florida homeowners receive powerful protection against forced sale or judgment liens. In most situations, a creditor cannot force the sale of a homestead property to satisfy a debt, and a judgment will not attach to the homestead. However, the Constitution lists specific exceptions, meaning certain obligations can create valid liens, even against a homestead. These include: Payment of property taxes and assessments Obligations related to purchase, improvement, or repair of the property Obligations contracted for house, field, or labor performed on realty Outside of these limited categories, most personal judgments do not attach to a homestead property and cannot be used to force its sale. Examples of these personal judgments include credit card debt, personal loans, vehicle deficiencies, and breach of contract. Clearing Title: How Homestead Protects Sellers at Closing When a seller has outstanding judgments, buyers often worry whether those judgments cloud the title. If the property is the seller's homestead, most judgments have no legal effect. To clear title, the closing agent needs only to verify that the property was the seller's homestead at the time the judgment was recorded. This is typically done through a Homestead Affidavit, which is signed at closing. Additional Procedures In some situations, specifically when there are concerns, additional steps may be required. If there is concern a creditor might dispute the homestead status, a Notice of Homestead may be filed to further protect the transaction. Along with this, before relying on a homestead affidavit to clear a judgment, closing agents must consult with underwriting to confirm the affidavit is sufficient for that specific judgment. These safeguards ensure that the buyer receives clear title and that the seller's homestead protections are properly documented. Judgments That Can Attach to Homestead Property While Florida's homestead protections are extensive, they are not absolute. Certain liens are not avoidable, even with homestead status. These include: Property tax liens Special assessment liens Any constitutional exceptions listed above These obligations remain enforceable against the homestead, and title cannot be cleared until they are satisfied. Why This Matters for Homeowners and Sellers Understanding what types of judgments attach, or do not attach, to a homestead is crucial, especially when preparing to sell a home, addressing title issues, responding to creditor actions, and completing a real estate closing. Florida's homestead protections are designed to safeguard families, but navigating these rules can be complex. Working with experienced real estate counsel and a knowledgeable title team ensures your property rights remain protected throughout the process.

On December 1, 2025, the U.S. Treasury's Financial Crimes Enforcement Network (FinCEN) will implement a sweeping new rule aimed at increasing transparency in the residential real estate market. Beginning March 1, 2026, certain real estate professionals involved in non-financed transfers of residential property to legal entities or trusts will be required to file a Real Estate Report with FinCEN. This is intended to curb money laundering and illicit finance risks that have historically exploited non-transparent real estate transactions. What Is the Real Estate Report? The Real Estate Report is a new filing requirement for professionals involved in specific real estate closings and settlements. It applies only to non-financed transfers of residential real estate to legal entities or trusts, which FinCEN has identified as high-risk for illicit finance. Key features include: Mandatory filing by a designated real estate professional (the "reporting person"). Submission to FinCEN's secure BSA database, which is not available to the public. Strict controls on how law enforcement may use and re-share the information. Public comment opportunities on the form before implementation. FinCEN expects these filings to strengthen anti-money-laundering efforts by shining light on beneficial ownership in transactions. What Counts as a Reportable Transfer? A Real Estate Report must be filed for any non-financed transfer of ownership interest in residential property to an entity or trust. Residential property includes s ingle-family homes, t ownhouses, c ondominiums, c ooperative units, e ntire buildings intended for occupancy by 1-4 families, and p roperties with mixed use (residence above commercial storefront). A property qualifies if it meets any of the following: Contains a structure principally designed for 1-4 families Is land on which the transferee intends to build such a structure Is a 1-4 family unit within a larger structure Represents a cooperative housing share connected to U.S. real estate. Transfer of residential property includes a ny deed or ownership-document transfer, t ransfer of cooperative shares, stock, or certificates, p urchases for any dollar amount, and g ifts or transfers with no consideration. What is a "non-financed" transfer? A transaction is non-financed if no transferee receives credit. This includes it being secured by the transferred property and extended by a financial institution subject to AML program and SAR requirements. If the lender is not required to maintain an AML/CFT program or file SARs, the transfer still counts as non-financed and may require reporting. Non-Reportable Transfers Transfers that are not considered reportable include easements, transfers resulting from death (will, trust, intestacy, survivorship, and TOD deed), transfers tied to divorce or civil union dissolution, bankrupcty-related transfers, transfers supervised by a U.S. court, transfers for no consideration to a trust where the transferor/spouse is a settlor, transfers to a qualified intermediary for 1031 exchanges, and transfers where no reporting person exists. Who Is the Reporting Person? FinCEN assigns the reporting obligation to only one business involved in the transaction. A reporting person is identified by the reporting cascade (default) or a written designation agreement among the businesses involved. The Reporting Cascade If the first person on this list is involved in the transfer, they become the reporting person. If not, move to the next, and so on: The closing/settlement agent listed on the closing statement The person conducting the closing/settlement The person who files the deed or instrument with the recordation office The title insurer underwriting the owner's title policy for the transferee The person disbursing the greatest amount of funds (escrow/trust accounts) The person evaluating title status The person who prepares the deed or transfer instrument If none of these functions occur, no report must be filed. What Information Must Be Reported? The Real Estate Report requires detailed transaction information. This includes the reporting person's identifying information, property information (address and type of residential property), transferor information, transferee entity or trust, individuals representing the transferee, beneficial owners of the transferee entity or trust, total consideration paid, and payment details (method, source of funds, etc.). How Should Reporting Persons Gather Information? FinCEN allows reporting persons to reasonably rely on information provided by others, but with limits. The general reliance standard is that a reporting person may rely on information from others unless they know or should know it is unreliable. Special rules for beneficial ownership information include that a reporting person may rely only on the transferee or their representative and must certify, in writing, that the information is accurate. Filing Deadlines and Recordkeeping Reporting persons must file the Real Estate Report by the last day of the month following the month of closing or within 30 calendar days after closing, whichever is later. In most situations, this gives professionals 30-60 days to file. Recordkeeping requirements will align with BSA retention rules. What Should Real Estate Professionals Do Now? With the rule taking effect in 2026, now is the time to prepare. This should entail mapping out your office's role in the reporting cascade, updating intake forms to capture beneficial ownership information, training staff on recognizing non-financed transfers, implementing document retention and compliance procedures, and reviewing opportunities for written designation agreements with closing partners. The new FinCEN rule brings significant change to U.S. residential closings, especially for transactions involving legal entities and trusts. By preparing early, real estate professionals can ensure smooth compliance and reduce the risk of penalties once the rule becomes mandatory.

In Florida real estate transactions, the contract governing the sale and purchase of property is one of the most critical documents in the process. Two of the most commonly used agreements, including the FAR/BAR Contract and the Contract for Residential Sale and Purchase (CRSP), set clear expectations for both buyers and sellers, outlining their rights, responsibilities, and remedies in the event of a default or dispute. Understanding these provisions is essential, as failure to comply with contract terms can lead to financial loss, legal action, and prolonged delays in closing. This is especially important because disputes over deposits, performance obligations, and enforcement of contract terms are among the most common issues in Florida real estate. By having a clear understanding of how the FAR/BAR and CRSP contracts handle buyer and seller defaults, as well as the structured processes for dispute resolution, both parties can better protect their interests and navigate conflicts effectively. FAR/BAR Contract Buyer Default When a buyer fails to meet their obligations under their contract, such as not paying the deposit on time, the seller has the right to two remedial approaches. For one, the seller can choose to keep the deposit as liquidated damages. This amount is treated as agreed compensation for the buyer's breach and, once accepted, releases both parties from any further responsibility under the contract in full settlement of any claims. Alternatively, the seller may pursue legal action to enforce the contract terms through equitable remedies. Seller Default If the seller fails to fulfill their obligations under their contract, other than being unable to deliver marketable title despite making a reasonable effort, the buyer has options regarding a remedy. The buyer may choose to have their deposit returned, and doing so does not waive their right to pursue damages caused by the seller's breach. In addition, the buyer may pursue legal remedies, including filing a claim for damages or seeking specific performance to enforce the contract. Dispute Resolution If a dispute arises between the buyer and seller regarding the contract, whether it relates to a breach, enforcement, or interpretation, and they are unable to resolve it, the FAR/BAR contract outlines a two-step process. Once both parties make conflicting demands about the deposit, they have 10 days to resolve the issue between themselves. If they cannot reach an agreement within this timeframe, the matter then proceeds to mediation. During mediation, the parties shall attempt to settle the dispute in good faith, following Florida's mediation rules. The mediator must either be certified or have experience in real estate. If urgent legal action, such as injunctive relief, is needed, a party may bypass mediation and proceed directly to court. If mediation does not resolve the dispute, either party may then file a lawsuit. This dispute resolution provision remains enforceable even after the contract has closed or been terminated. Attorneys' Fees and Costs Under a FAR/BAR contract, if mediation takes place, the buyer and seller must each pay half of the mediator's fee. Additionally, each party is responsible for their own expenses, including attorney's fees, related to the mitigation process. If the dispute proceeds to litigation, the prevailing party is entitled to recover their legal costs and reasonable attorney's fees by the non-prevailing party. These provisions remain enforceable even after the contract is closed or terminated. Contract for Residential Sale and Purchase (CRSP) Buyer Default If the buyer fails to fulfill the terms of their contract in a timely manner, such as failing to make the required deposit payment, the seller has two options. The seller may choose to keep all deposits paid, or agreed to be paid, as liquidated damages. Alternatively, the seller may pursue specific performance to enforce the contract. Seller Default If a seller fails to carry out their obligations under their contract, other than being unable to provide a marketable title despite making a diligent effort, the buyer has remedies. The buyer may choose to have their deposit returned, and doing so does not waive their right to pursue legal action for damages caused by the seller's breach. The buyer may also seek to enforce the contract through specific performance. Dispute Resolution Under a CRSP Contract, any disputes arising from the transaction will be settled under Florida law as follows: Deposit Disputes: If there is a disagreement about who is entitled to deposits made or agreed to be made, the buyer and seller have 30 days from the date of conflicting demands to resolve the issue through mediation. If mediation is unsuccessful and the law requires it, the escrow agent may submit the matter to arbitration, a Florida court, or the Florida Real Estate Commission. Other Disputes: Any other disagreements involving the buyer, seller, or broker must also first be addressed through mediation within 30 days of the dispute arising. If unresolved, the matter will be settled through binding arbitration in the county where the property is located. Arbitration must follow Florida law and cannot be used if a civil lawsuit on the same issue would be barred by Florida's statute of limitations. The arbitrator cannot modify the terms of the contract and may only issue remedies allowed by the contract. Decisions must be based on the weight of the evidence and include written findings and legal justification. If both parties agree, they may use legal discovery rules, and any related disputes will be resolved by the arbitrator. These provisions continue even after closings. Mediation and Arbitration Costs: Mediation involves a neutral party helping to resolve a dispute but is not empowered to impose a settlement on the parties. It will be in accordance with the rules of the American Arbitration Association (AAA) or another agreed mediator, and the mediation cost will be split equally. On the other hand, arbitration involves a binding decision by a neutral arbitrator. It will also follow AAA rules or those of another agreed arbitrator. Each party will cover their own legal costs and attorney fees and equally cover the arbitrator's fees and administrative expenses. Understanding the escrow dispute process is essential for both buyers and sellers in Florida real estate transactions. Whether handling buyer or seller default, the FAR/BAR and CRSP contracts outline specific remedies and structured paths for resolving deposit disputes. Knowledge of the rights and obligations prescribed by a contract ensures protection of interests during mediation, potential litigation, and arbitration.

What is the 50% rule? The FEMA 50% Rule is a federal regulation that prohibits substantial improvements to a structure located in Special Flood Hazard Areas (SFHA) that exceed 50% of its market value, unless the entire structure is brought into full compliance with current flood regulations. If the 50% Rule applies, the improvements may require elevating the structure above the Base Flood Elevation (BFE), using flood-resistant materials below the BFE, installing proper flood venting, etc. These improvements must be compliant with the National Flood Insurance Program, the Florida Building Code, and local land development codes. Substantial Improvement Under the FEMA 50% Rule, substantial improvement refers to any combination of repairs, reconstruction, rehabilitation, addition, or other improvement of a building, the cumulative cost of which equals or exceeds 50% of the pre-damaged market value of the building or structure. This applies to both residential and commercial properties located in Special Flood Hazard Areas. If a project meets the definition of "substantial improvement," it is considered new construction, and the entire structure must be elevated to or above the Base Flood Elevation and otherwise made fully flood compliant. Market Value Market value is defined as the price at which a property will change hands between a willing buyer and a willing seller, both having reasonable knowledge of all relevant facts. This value is used to determine whether a proposed improvement meets the 50% threshold for a substantial improvement under the FEMA 50% Rule. To determine the market value of a structure, there are two approaches that can be used. The first approach includes utilizing the county's Property Appraiser's website assessment for the market value of the structure only. As an alternative, an independent appraisal can be done for the structure to obtain an actual cash value appraisal of the pre-damaged structure. This appraisal must be prepared and certified by a property appraiser licensed in the State of Florida. The latter is the most accurate approach to defining the market value of a structure. Replacement cost cannot be substituted for market value. A replacement cost is the cost of replacing the structure with a structure of like kind, using present-day costs for labor and materials. This value is often much greater than the market value. Exceptions There are certain improvements that are exempt from being counted toward the 50% threshold for substantial improvement under the 50% Rule. These exceptions promote safety, preservation, and disaster resilience. Improvements that are not subject to the 50% Rule include: Any project for improvement that a building requires to correct existing health, sanitary, or safety code violations. Any repair, rehabilitation, or addition constituting substantial improvement to a designated historic structure, so long as the owner receives written approval from the Florida Division of Historic Resources. Costs of alterations or improvements whose express purpose is the mitigation of future storm damage, provided the cost of such improvements does not exceed 50% of the market value of the structure over any one-year period. City of Tampa The City of Tampa utilizes the same definition of "substantial damage" as FEMA, which states that substantial damage occurs when the cost to repair a structure is equal to or exceeds 50% of its market value, regardless of the cause. This is particularly for properties located within Special Flood Hazard Areas, such as Zones AE and VE. A Substantial Improvement Form must be filled out by the property owner, but is only required if the property is in a Special Flood Hazard Area (including zones VE or AE), and "Storm Damage" should be selected. The steps to complete this process include: Estimate Depreciated Market Value: Use the property appraiser's estimate or obtain a certified appraisal. Estimate Cost of Construction: Apply $64.85 (Tampa's standardized construction cost per square foot) to the square footage of the construction/work area. Compare Costs to Market Value: The cost of construction must be less than 60% of the structure's depreciated value based on the Property Appraiser, or 50% if based on a certified appraisal of the structure. If the threshold is exceeded, the entire structure must be elevated to meet current flood standards, or the structure must be demolished and rebuilt in full compliance with FEMA flood standards, the Florida Building Code, and the City of Tampa floodplain management regulations. Frequently Asked Questions How is the value of an improvement determined? The cost of improvement includes the total costs for repair, reconstruction, rehabilitation, additions, or other improvements to the structure. Costs include all materials, labor, built-in appliances, overhead, profit, demolition, and repairs made to the structure. Each county has a process to submit costs for approval. Is the cost of improvement discounted if the owner does the work or the materials are donated? No. The value placed on materials must equal the actual or estimated cost. The value placed on labor must be estimated based on applicable hourly wage sales for the type of construction work. Improvement costs cannot be discounted to keep the cost estimate below 50%. Are there any items that can be excluded from the cost of improvement? Items that are not counted toward the cost of improvement include plans, specifications, surveys, building permits, and other items separate from or incidental to the repair or improvement. Outdoor landscaping and improvements to the land, such as driveways, pools, seawalls, etc., are not included in the cost of improvement. What happens when a structure is damaged, but not substantially, and during the repair the owner also makes an addition to the structure? If the owner of a structure, which was 30% damaged by a flood, decides to add a room during the repair process, the combined total of these improvements must be equal to or less than 50% of the structure's pre-damaged market value to not be considered a substantial improvement.

Florida continues to strengthen consumer protection in real estate transactions. In June, the governor signed into law and expanded the residential flood disclosure bill, which goes into effect on October 1, 2025. Current Law Since last year, Florida Statute 689.302 has required residential property sellers to disclose certain flood risks to prospective purchasers. Under the existing statute, sellers must state whether: They have filed an insurance claim relating to flood damage on the property. They have received federal assistance for flood damage. What's Changing on October 1, 2025? The new law expands flood disclosure obligations for sellers, developers, and landlords. For Residential Sellers: In addition to the above, sellers must now disclose if they are aware of any flood-related damage to the property during their ownership. For Developers of Residential Condominiums: Must disclose if they know of flood damage to the property during their ownership. Must state whether they have filed flood-related insurance claims. Must disclose whether they have received federal assistance related to flood damage. For Residential Landlords: For the first time, landlords are now obligated to disclose flood risks to prospective tenants. If a landlord fails to provide truthful disclosures and a tenant suffers a substantial loss or damage to personal property due to flooding, the tenant may terminate the lease within a specified time frame. Upon proper termination, the landlord must refund all amounts paid in advance. Importantly, tenants remain responsible for any rent or fees owed before the termination date. Why This Matters This expansion represents a significant step toward transparency in Florida's real estate market, ensuring that buyers and renters have critical information about potential flood risks before making a decision. Next Steps Sellers, landlords, and developers should review their disclosure practices carefully. Those with questions are encouraged to consult with their attorney regarding compliance. An updated Flood Disclosure form will be released on October 1, 2025. Conclusion With Florida's growing vulnerability to flooding, these new disclosure requirements aim to protect both buyers and tenants from unforeseen risks while encouraging property owners and developers to be more transparent. Whether you are selling, leasing, or developing residential property, it is important to be proactive and informed. Staying ahead of these requirements not only helps ensure legal compliance but also builds trust and confidence in Florida's real estate market.