Title Commitment vs Title Policy

Investing in Florida real estate is an exciting prospect, and can represent one of the most significant purchases you’ll make. This makes it especially important to ensure that all essential documentation and protections are in order, helping you to mitigate potential risks and move forward to closing and beyond with confidence. 

Unfortunately, one of the common hurdles buyers can struggle with is the terminology related to these essential items. Having a firm grasp on the differences between title commitment and title policy can certainly affect how smoothly you navigate your purchase and any disputes related to liens or ownership. Let’s take a closer look at this subject; exploring the distinctive aspects of each term and how they apply to a successful real estate purchase in Florida.

What Is a Title Commitment?

In simple terms, a title commitment is a preliminary document that is issued by a title insurance company. It is not yet a full policy. Rather, it acts as a form of promise from the insurer that they will issue the final title insurance policy once specific conditions have been met. 

Although it isn’t considered to be an insurance policy in and of itself, it is still a legally binding document under Florida law. If all conditions set forth in the commitment are clearly met, the insurer has an obligation to issue the policy.

Key Parts of a Title Commitment

In most cases, title commitments in Florida will take a relatively consistent form. This will usually be composed of the following components.

These schedules are designed to provide maximum clarity to all key parties—buyers, sellers, lenders, and attorneys—who require transparency on potential hurdles to closing.

What Is a Title Policy?

The title policy is a document that is issued only once all the requirements of the title commitment have been met and the official closing has been completed accordingly. It is the final insurance contract that provides coverage to the insured party, typically against the following issues:

• Title defects
• Liens
• Ownership disputes

In order to be covered by the title policy, these issues must have existed—although not necessarily known by the insured party—at the date of closing and without forming part of the exceptions outlined in the policy or title commitment. Should one of these issues arise after the policy has been issued, the insured party can then claim for resulting financial losses and legal expenses.

Owner’s Policy vs. Lender’s Policy

Title policies in Florida are not only issued to the buyer of the property. Rather, coverage may be issued to both the owner of the property and the lender providing financing related to the purchase. 

Owner’s Title Policy

An owner’s title policy is specifically designed to protect the buyer’s interests in the property they’ve purchased. Should a covered title defect occur, the insurer will typically reimburse the owner for any financial losses related to the issue or in rectifying it.

Lender’s Title Policy

Coverage is designed to protect a mortgage lender’s financial interests in the property, reimbursing lenders for any loss related to covered defects. In many instances, mortgage lenders will require buyers to obtain this insurance as a condition of the loan, further safeguarding the company’s interests.

Once the conditions of a title commitment have been met and the closing of the sale has been completed, both of these types of title policy will typically be issued simultaneously. While a lender’s policy may be a condition of a loan, the owner’s policy is usually optional in Florida. 

Why the Title Commitment Matters

It can seem as though a title commitment is just a formality in Florida real estate transactions. Yet, it plays an important role. Alongside acting as confirmation that insurance is likely to be issued, it also provides clarity on potential defects in the chain of ownership that stand in the way of a policy being issued. As a result, there is motivation for all key parties to investigate, identify, and rectify such issues before moving forward with the sale and ensure the property is being transferred with a clear title.

The types of title issues that can arise can often depend on the location. In Florida, some of the common elements for addressing that appear in title commitments include:

• Unpaid property taxes
• Judgment liens
• Unresolved mortgages
• Homeowners’ Association (HOA) fines and code violation enforcements

By establishing the presence of these issues and correcting them before closing, there is confirmation that they won’t carry over to the buyer and the terms of policy coverage are met.

Common Exceptions in Title Commitments

Alongside the requirement for addressing any issues, a title commitment will also outline any exceptions to policy coverage. These are aspects that, even should all other conditions of coverage be met, the insurer will not compensate the insured party for. 

Common exceptions in Florida include:

• Losses arising from easements that grant utility companies access to the property
• Losses related to restrictive covenants that are in place from prior developments
• Losses related to zoning regulations that limit how the land can be used

These exceptions mean that should one of the excluded events occur, the buyer will be responsible for any costs or losses related to the issue. As a result, it is vital that buyers take the time to fully understand the exceptions and their potential consequences. An experienced Florida real estate attorney can be key to providing clarity here and advice on further risk mitigation.

The key takeaway here is that taking a responsible approach to arranging a title commitment and then following the conditions to gaining the full policy is in everyone’s best interests. You not only minimize the potential for title issues down the line, but you’re also able to make informed choices on the route to and beyond closing.

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One of the key processes Florida property owners need to follow is that of effective estate planning. After all, your home—or portfolio of properties—is among the most significant investments you’ll have made throughout your life. It’s only natural that you want to pass this on to the most important people in your life. 

Unfortunately, without solid estate planning, transferring real estate can be more difficult, expensive, and stressful than it really needs to be. Two of the tools that property owners tend to consider using here are Lady Bird Deeds and Transfer on Death (TOD) Deeds. While there’s some overlap in intentions, these are different items with distinct positions in Florida real estate law. Let’s take a closer look at them. 

What Is a Lady Bird Deed?

A Lady Bird Deed—often also called an Enhanced Life Estate Deed—is a legal tool that is designed to make transferring real estate simple. In essence, it establishes that the property owner will retain full control over the property during the course of their life, while also assigning a named beneficiary who will automatically take ownership of the property when the current owner dies.

This is distinct from another common estate planning tool, the life estate deed. In those instances, the owner gives up control once the deed is signed. Lady Bird Deeds assign beneficiaries while retaining broad rights over the property, including:

• The right to sell the property
• The right to mortgage the property
• The right to revoke the deed without the beneficiary’s consent

Importantly, the beneficiary has no legal rights to the property until the owner passes away. The efficiency and flexibility of this approach has made it common in Florida estate planning.

What Is a Transfer on Death (TOD) Deed?

From a legal perspective, a Transfer on Death (TOD) Deed is often referred to as a beneficiary deed. It works in a relatively similar way to Lady Bird Deeds. Effectively, they also allow the owner to retain control over the property during their lifetime, at which time it is transferred to the named beneficiary. 

There are some subtle differences, though, in that the TOD tends to provide fewer protections for the property owner in comparison to a Lady Bird Deed. For instance, Lady Bird Deeds can ensure exclusion from Medicaid recovery efforts and is revocable, whereas TOD deeds don’t usually offer either of these protections.

Most importantly for Florida real estate owners, though, is that a TOD deed is not recognized under Florida law. Despite the fact that TOD deeds have grown in popularity and are available in more than 30 states, Florida is not among them.

Key Advantages of a Lady Bird Deed

Limitations of a Lady Bird Deed

Alternatives in Florida

Although TOD deeds are not applicable in Florida, there are alternative approaches to Lady Bird Deeds available that also minimize the need for formal probate. Some of the key examples of these include:

• Revocable Living Trusts – This involves setting up a trust which can hold real estate or other assets. The trust can be transferred to beneficiaries upon death, distributing property in a flexible way.

• Joint Ownership with Rights of Survivorship – This involves making a beneficiary the co-owner of the property, ensuring the surviving co-owner eventually inherits the property. However, this means the current owner loses full control.

• Tenancy by the Entirety – This is typically used by married couples. In essence, it passes property ownership automatically to the surviving spouse.

Each of these approaches has benefits, drawbacks, and conditions. Consulting with an experienced attorney is essential for finding a tool that aligns with your specific needs.

Risks of DIY Lady Bird Deeds

Technically speaking, property owners can independently create and record Lady Bird Deeds. However, it’s important to recognize that these are quite complex legal documents. It is common for people to download out-of-state templates or even purchase a Transfer of Death Deed document from a generic form provider, neither of which is likely to be relevant for use in Florida. This can leave the property subject to probate and ownership disputes upon the death of the current owner.

Another risk of a DIY approach to Lady Bird Deeds is in the failure to record the deed correctly. Owners may file their deeds in the incorrect country or even fail to record them at all, feeling that completion of the paperwork is enough on its own. This can lead to intended beneficiaries facing legal disputes and even leaving the property vulnerable to Medicaid recovery.

The key takeaway for property owners should be that, while there are great tools for transferring property without probate, it is vital to make the right decisions. An experienced real estate lawyer can help you to establish the most effective approach for your needs, and guide you through drafting, recording, and maintaining it effectively.

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Purchasing a property in Florida is a valuable investment, but there are various aspects buyers need to pay careful attention to. This isn’t just about the usual areas of focus, like location, price, and financing options. One of the most important areas of any real estate transaction that all those involved need to understand is the fine details of the property’s title.

Clarity here is essential, as defective titles can lead to legal disputes, resale hurdles, and in some cases loss of the property itself. So, we’re going to take a closer look at two types of title that often cause confusion in Florida property sales: marketable titles and insurable titles. They may sound similar, but there are vital distinctions.

What Is a Marketable Title?

In simple terms, a marketable title describes a title that has no significant defects, doubts, or likely claims associated with it. This means that buyers can purchase a property, safe in the knowledge that there shouldn’t be any litigation caused by problems or disputes that were legally present at the time of the sale.

In Florida, this is a standard feature of real estate sale transactions. In the majority of cases, the legal duty is on the seller to provide a marketable title. Indeed, it is often included in contracts that the sale is dependent on the seller issuing this title. The motivation for this is to provide buyers with reassurance that certain components won’t disrupt the sale of the property.

Some of the types of title defects that cause such disruptions and would prevent a marketable title being issued include:

• Unreleased mortgages
• Liens on the property
• Legal judgements issued against the property
• Third parties with potential claims on ownership, such as heirs
• Boundary disputes or legal description errors

What Is an Insurable Title?

The inability to issue a marketable title due to potential defects doesn’t necessarily mean the process can’t progress. This is where an insurable title may come into play. This is a type of title that is issued when there is a chance that there are title defects with the property, but a title insurance company has agreed to cover the risks.

This isn’t the same as confirming that the potential defects have been resolved. Rather, the insurer agrees to cover the buyer’s financial losses in the event that the insured defects arise.

Not all types of defects are likely to be considered acceptable to insurers. Some of the common types insurable titles cover include:

• Minor public record errors
• Some types of unresolved liens
• Technical defects that could potential affect ownership in the future

This type of title is unlikely to provide the same level of reassurance to buyers that a marketable title offers. Nevertheless, it is often accepted by mortgage lenders involved in the transaction. This is because the insurer is taking responsibility for part of the financial risk to the lender’s security interest.

Key Differences Between Marketable and Insurable Title

Risks of Relying Solely on Insurable Title

An insurable title can, on the surface, seem like a good solution to proceeding with a purchase when certain defects are in place. However, it’s vital to be mindful of the potential risks involved with relying entirely on this type of title.

Limited protection

Firstly, insurable titles primarily provide financial relief when certain insured events arise. They do not prevent disputes from arising or the legal and practical issues that come from ownership conflicts. Owners may still find themselves going through lengthy and stressful court cases.

Potential exclusions

As with any insurance product, there will be limitations to what is covered. While the insurance company may agree to cover specific defects, the policy will usually exclude any issues beyond these. There may also be specific exclusions related to zoning violations and issues the buyer knew existed at the time of purchase.

Resale difficulties

A buyer and a mortgage lender may find the insurable title to be sufficient to accept the risks involved with a sale on this occasion. However, this doesn’t automatically mean other parties will agree with this assessment when it comes to reselling the property down the line. If the potential defects covered by the insurable title have not been resolved, owners can find it difficult to convince future potential buyers and may even see a drop in value.

Florida’s Marketable Record Title Act (MRTA)

Alongside the contractual components that support the enforceability of marketable titles, the Florida statutes also provide guidance that makes it easier to assign a marketable title to older properties.

The Marketable Record Title ACT (MRTA) forms part of Chapter 712 of the Florida statutes. In essence, it places a time limit of 30 years on property rights restrictions. Unless the restrictions are properly preserved and recorded, they’re extinguished from the chain of title.

For instance, a property may have had a deed restriction in the past, which was a potential title defect risk, preventing a marketable record from being issued. After 30 years, if this restriction hasn’t been re-recorded, it can be eliminated from the title. As a result, a marketable title can be issued.

That said, it’s important to bear in mind that the MRTA doesn’t cover all potential claims and defects. Those related to government interests, certain easements, or taxes are not necessarily able to be extinguished under the statute.

Which Title is Better?

Certainly, it tends to be preferable for buyers, lenders, and sellers alike to obtain a marketable title rather than an insurable title. While the latter may provide limited financial protections, the former offers more straightforward confirmation of ownership rights and legal safeguards.

The key takeaway here is that understanding the differences between these types of title allow those involved with property transactions to make more informed decisions. While neither provides complete protection from risks, they each have a distinct role to play in promoting title clarity and progressing the closing process. 

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The concept of a property deed is relatively familiar to most people. Whether buying or selling real estate, the transfer of a deed is an important part of changing ownership. However, it’s important to understand that deeds are a little more complex than altering who is named as the owner of a property. 

Indeed, in Florida real estate law, there are different types of deeds that are issued, each serving specific purposes and establishing certain types of protection against claims on a property’s title. Two of the most common forms of deed in the state are general warranty deeds and special warranty deeds. Taking the time to better understand the differences between these tools can help you make more informed decisions when pursuing a real estate transaction.

What Is a General Warranty Deed?

General warranty deeds are usually the preferred type for Florida real estate buyers. This is because they’re the legal instruments that offer the most protection under Florida law. In essence, it’s a deed that sees the seller confirming that they own the property in its entirety and also that the title has not been subject to any defects or encumbrances at any point in its history.

The result of this is that if any potential title problems present themselves, including those that may have been in place prior to the current seller’s ownership, it is the seller who is legally responsible for defending the buyer against any claims.

When a general warranty deed is created, there are usually various legally-binding covenants. These may include:

• Covenant of Seisin – The seller confirms that they own the property outright and that they are legally able to convey it.
• Covenant of Right to Convey – The seller promises that they have the authority to transfer ownership without any restrictions.
• Covenant Against Encumbrances – The seller guarantees that the property is free from all liens, unpaid taxes, or undisclosed easements. The only exception to this is any encumbrances specifically mentioned in the deed.
• Covenant of Quiet Enjoyment – The seller promises that the buyer’s ownership will not be disturbed by title claims.
• Covenant of Warranty Forever – The seller guarantees that they will defend the buyer’s ownership rights against any lawful claims, regardless of when they arose.

These represent quite broad and robust protections to buyers. As a result, this type of deed is commonly required by lenders before they agree to provide mortgage financing. This is because the protections help to ensure the security of the property’s title as collateral. Importantly, general warranty deeds provide significant peace of mind to buyers.

What Is a Special Warranty Deed?

Special warranty deeds tend to be less broad than their general warranty counterparts. Effectively, this type of deed involves the seller guaranteeing that they personally have not taken any actions during the period of their ownership to cause title defects. 

In these instances, the seller isn’t providing any guarantees about potential issues that could have arisen before they took possession of the property. Therefore, the seller is not responsible for the effects of any unpaid property taxes, easement grants, or other encumbrances that a previous owner caused. The buyer takes the burden of risk entirely.

Special warranty deeds are most common in:

• Commercial real estate transactions
• Estate transfers
• Sales by financial institutions following foreclosure

Naturally, as these transactions are typically managed by corporate entities, they usually want to limit their liabilities, as they won’t typically have personal knowledge of the entire title history. A special warranty deed is often the most appropriate tool.

The Key Differences Between the Deeds

There are various differences between general and special warranty deeds. To provide a little extra clarity, the primary distinctions can be divided into four key areas.

When Should You Use a General Warranty Deed?

For the most part, general warranty deeds are a broadly appropriate tool to use in real estate transactions. Indeed, they’re often considered to be the standard option. They’re most common in traditional residential real estate transactions in which unambiguous title ownership and robust protections are vital. 

That said, general warranty deeds are especially appropriate when:

• The buyer is using a lender to finance the purchase. Mortgage providers will usually require comprehensive title protection.
• The property is being purchased for long-term ownership or as a family residence.
• The seller wants to offer buyers full transparency and is fully confident that the title is clear. 
• Both parties want to ensure smooth transfer and minimal post-closing disputes.

When Might a Special Warranty Deed Be Appropriate?

Despite the narrower scope and more limited protections, special warranty deeds certainly have a useful role to play in certain types of real estate transactions. Generally speaking, situations in which the seller’s relationship to a property is more administrative or institutional in nature often mean that a special warranty deed makes more sense for everyone involved.

Some common circumstances in which special warranty deeds can be appropriate include:

• Commercial property sales, on the condition that both parties commit to extensive due diligence and use title insurance to mitigate risks.
• Estate sales, where executors or trustees are transferring property on behalf of a deceased individual and don’t necessarily know its prior title history.
• Foreclosure or real estate owned (REO) sales, where banks or lenders sell repossessed properties without clear title history knowledge.
• Corporate or trust transfers, where property is part of a broader business portfolio and not individually reviewed for prior title issues.

The key takeaway here is that both types of deed are valid and valuable tools in Florida real estate transactions. Taking the time to understand the differences helps buyers and sellers alike to manage the risks involved in the process more effectively. When all parties have clarity on the extent of title integrity and recourse in the case of issues, more informed transactions can take place.

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Homeowners’ associations (HOAs) can offer some benefits to Florida property owners, including shared amenities, maintained common areas, and a certain amount of property value protection. Still, there’s no denying that many people find that the downsides of these organizations can be frustrating. In particular, the strict community rules that see fines issued in the event of breaches.

A range of seemingly trivial matters can see hefty fines applied, whether it’s landscaping that is outside of the mandated standards, parking violations, or unauthorized paint jobs. The good news is that you’re not entirely powerless in the fact of what can feel like an unfair penalty. Florida homeowners have certain rights, and we’re going to dive a little deeper into these, alongside how you can protect your interests.

Understanding HOA Fines in Florida

It’s helpful to know a little about the basis of HOA fines in Florida law, as this can clarify the grounds you have for fighting them.

For the most part, HOAs themselves are governed by Chapter 720 of the Florida Statutes. This chapter outlines an extensive range of powers and obligations HOAS have, including providing them the authority to issue reasonable fines when community rules are violated. In the legislation, these HOA bylaws are termed the declaration of Covenants, Conditions, and Restrictions (CC&Rs).

This legislation also sets requirements on how HOAs apply fines and the processes associated with them. These include:

• Provision of notices – The law requires HOAs to provide homeowners with formal written notice of the alleged violation and the potential fine associated with it.

• Requirement for hearings – Homeowners must be given the opportunity to have a hearing before an independent committee in relation to alleged violations.

• Limitations on fines – HOAs cannot issue a fine exceeding $100 per violation or more than $1000 total for an ongoing violation, unless higher amounts are specified in governing documents.
• Limitations on collection powers – Unless permitted by governing documents, HOAs cannot issue a lien against your property for unpaid fines.

Understanding the legislation HOAs must abide by helps you to spot where they might be overstepping their authority when issuing fines.

Common Reasons Florida Homeowners Receive HOA Fines

Even though infractions may seem minor to homeowners, the community standards agreed to can see fines being issued. Some of the common areas for fines include:

While these types of rules may be within the rights of HOAs, not every citation or how its enforced is necessarily fair or even legal.

Steps to Fight HOA Fines in Florida

When you receive a fine from an HOA in Florida, it’s important to take a structured approach to fighting it. This helps to ensure that you’re moving forward in a legal and detail-oriented way.

Step 1 – Review the governing documents

Begin by carefully reviewing your HOA’s declaration of CC&Rs, its bylaws, and general community rules. Your HOA’s actions must be in strict alignment with its own rules and Florida law. If they’re not, you may be able to dispute the fine.

Pay particular attention to:

• The wording of specific rules that relate to your alleged violation
• The HOA’s stated procedures for issuing fines
• The maximum allowable fines and penalties
• The processes for citation disputes and appeals

Step 2 – Confirm proper notice

Under Florida law, HOAs must provide homeowners with written notice of any alleged violation, containing details of the proposed fine. If you haven’t received this formal notice or it didn’t include specific information about the nature of the violation of the fine amount, you may be able to dispute the fine on the basis of incorrect procedure.

In these instances, it is particularly important to save copies of all correspondence you’ve received in relation to the fine.

Step 3 – Request a hearing

No matter what the circumstances are, you’re entitled to a hearing before an independent grievance or compliance committee before any fine you’ve been issued becomes enforceable. You should request this hearing in writing, and then prepare to:

• Clearly and simply explain your side of the story
• Present any supporting evidence, such as photographs or documents
• Highlight any procedural errors the HOA has committed
• Reference relevant sections of the CC&Rs that support your argument

The committee will then vote on whether to uphold or reject the HOA’s decision to issue a fine. If the committee rules against the HOA, the fine can’t be enforced.

Step 4 – Consult an attorney

You may find that the HOA persists in pursuing fines that you believe aren’t justified, they fail to follow proper procedure, or that their behavior might constitute harassment. In these instances, it’s wise to consult a Florida real estate attorney who is experienced in these disputes. They can help you to identify specific violations of Florida law or HOA rules, represent you at hearings or negotiations, and take any further legal action that may be necessary to resolve the issues.

What Happens if You Ignore HOA Fines?

When you receive what seems to be an unjust fine, it might be tempting to ignore it. However, this can backfire, leading to potential consequences that include:

• Accumulating late fees or interest
• Suspension of community resources or privileges
• Fine collection enforcement by the HOA
• If allowed by HOA governing documents, a lien on your property

Above all else, the key takeaway is that it’s always best to engage with your HOA in a professional way that asserts your rights. While HOAs can be an important part of maintaining high standards of living among communities, it’s equally vital to remember that they don’t have unlimited power. Florida law provides homeowners with legal protections, and understanding these can give you the confidence to correctly and effectively dispute actions being taken against you.

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Owning property in Florida can be a valuable investment. Yet, it’s important to understand that selling it isn’t necessarily a simple matter. Florida law places some essential and strict obligations on property owners that put their homes on the market. One of the most important of these also happens to be an element that a lot of sellers aren’t always clear about: disclosure.

Disclosure obligations cover a number of areas and failing to meet these can result in significant consequences. A smooth sales process is better for everyone involved, and the last thing you want is value disputes or even potential lawsuits. So, let’s take a closer look at your disclosure obligations as a seller in Florida. What are they and how can you best navigate them?

Florida’s Legal Framework for Seller Disclosures

One of the elements that can complicate disclosure for sellers like you is that Florida doesn’t treat this matter like a lot of other states in that there are no statutory disclosure forms to complete. Rather, a combination of various Florida statutes and common law based on a body of precedent through court decisions guides standards and expectations for disclosure.

The most relevant court decision related to disclosure is the case of Johnson v. Davis (1985). This is a landmark ruling in which the Florida Supreme Court found that residential property sellers have to disclose all known material defects that aren’t readily observable to buyers. As a result, this expectation has effectively become a legal obligation in Florida, even though there is no specific statute that mandates it.

Put simply, if you’re aware of any material defects, especially issues those visiting the property can’t see, you must disclose them.

What Sellers Are Required to Disclose in Florida

Legal precedent in Florida means sellers must disclose all known material defects that aren’t readily observable to buyers. But what does this actually include? Some of the key areas of focus include the following.

What You’re Not Required to Disclose

To mitigate the potential for unnecessary stigma affecting sales, Florida Statute § 689.25 specifically outlines some things that you’re not required to disclose. These are:

• Death on the property – Homeowners are not required to disclose deaths on the property, whether from natural causes, homicide, or suicide.
• HIV/AIDS status – The status of any prior occupant or person associated with the property is not considered a material fact to be disclosed.

Is a Disclosure Form Mandatory?

Despite the fact that Florida law requires disclosure of material defects, it doesn’t go so far as to mandate the use of a specific disclosure form that may be required in other states. Indeed, the statutes and legal precedent haven’t formalized the requirement for disclosures to be made in writing at all.

Nevertheless, it is still wise to use a disclosure form for the following reasons.

• It creates a clear record of the extent to which known issues have been disclosed
• It can act as a checklist for sellers to review commonly overlooked issues
• It helps demonstrate transparency to buyers, which can boost trust and engagement

Above all else, completing this technically optional form helps to safeguard your interests. These forms are usually readily available from real estate agents, lawyers, or downloadable from online sources.

How to Handle Unknown or Hidden Defects

Florida law specifically focuses on disclosing known defects. If you genuinely aren’t aware of a problem with the property, you usually can’t be held liable. 

That said, claiming ignorance is not necessarily an easy defense to maintain if you’re facing a lawsuit. You don’t want the court to believe you’ve wilfully ignored an issue. Therefore, it’s wise to take action that shows you’ve taken responsible steps to look for potential defects.

You could consider the following:

Consequences of Failing to Disclose in Florida

Given that Florida law requires the disclosure of known material defects, failing to meet these obligations can result in significant consequences. These can depend on the extent of the failure, but common outcomes include:

• Legal claims – Buyers could sue for breach of contract, misrepresentation, or even fraud.

• Sale cancellation – If known material defects are discovered during due diligence, the buyer may back out of the sale.

• Financial damages – Florida courts may order the seller to pay for any repairs, legal costs, or other punitive damages when misrepresentations are intentional.

How to Protect Yourself as a Florida Seller

It can be daunting knowing that there is a legal obligation to disclose material defects, particularly if you’re uncertain whether potential issues fall within the definition. In most instances, the best way to protect yourself from negative outcomes is to be honest. Always disclose known issues, even if they might jeopardize the sale of your property. Using a structured disclosure form also creates a clear evidentiary record of your communications to buyers.

Certainly, if there’s doubt over whether an issue is disclosable or if it falls into potential legal gray areas, an experienced Florida real estate attorney can provide you with invaluable guidance. Nevertheless, the key takeaway here is that transparency is generally your best legal safeguard. Being open about potential issues and being proactive about finding, assessing, and communicating them is essential.

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Homeownership is a dream in which many people invest a significant amount of their hard-earned money. Whether you’ve been able to save enough to outright purchase property or you’ve gathered a downpayment on your first home, you’re dedicating a large chunk of cash. So, imagine you’ve transferred this sum only to find that it didn’t make it to the title company, but rather it was intercepted by cybercriminals committing real estate wire fraud.

This is undoubtedly a nightmare scenario. Unfortunately, it’s one that is all too common in today’s digital real estate landscape, in which the majority of transactions rely on email communication and wire transfers. We’re going to take a closer look at what real estate wire fraud is, what signs you should be looking out for, and how you can best protect yourself.

What is Wire Fraud in Real Estate?

Real estate wire fraud is a financial crime in which criminals intercept funds sent in a real estate transaction. In most instances, this occurs during the closing phase. While there have been various approaches to this over the decades, at the moment this scam most commonly involves phishing and/or spoofing. Both involve tricking buyers into sending funds while posing as a trusted third party in the real estate transaction.

So, how does this work in practice? Here’s an example.

Step 1: A buyer is closing on a new home and has previously received wiring instructions from the title company. 

Step 2: At the last minute, they receive an email from an address whose domain name has been “spoofed” to take the same or similar format to that of the title company. The email provides new transfer instructions, detailing the criminals’ bank account. 

Step 3: The fraudster may follow up with a phone call, “confirming” the instructions. 

Step 4: After funds have been sent, these may be siphoned through a series of rapid transfers to prevent recovery.

What Makes Florida Real Estate a Target?

Wire fraud is increasingly common in Florida real estate transactions. There are various reasons this market is particularly attractive to cybercriminals, including:

• High value – Transactions in Florida are frequently high-value, particularly in markets like Miami, Tampa, and Orlando. Criminals are attracted to potentially significant sums they can gain.
• Out-of-state purchases – A lot of people buying property in Florida are those relocating from elsewhere or purchasing vacation homes. Therefore, these parties are more reliant on the digital communication methods fraudsters can exploit.
• Rapid closing – Real estate in Florida is highly competitive, often with pressure to close quickly. This urgency can cloud judgment, so fraudsters use this to push scams through.
• Remote closing – Even those living in Florida are increasingly using remote closings and online paperwork completion processes. When buyers aren’t meeting agents or title officers in person, this can make deception easier to achieve.

Key Indicators of Wire Fraud

Vigilance is the primary defense against wire fraud. Some of the red flags to look out for include:

Protective Measures to Take

While wire fraud is increasingly common, it is also preventable. Here are some of the steps you should take to protect yourself in real estate transactions.

• Verify wiring instructions by phone or in person – Do not trust emailed wiring instructions alone. Follow up with the title company or real estate lawyer to confirm any account numbers before proceeding.
• Use secure communication – Wherever possible, prioritize using real estate companies that use secure and encrypted portals for communicating sensitive information. Avoid using regular email for contact.
• Maintain email safety – If you must communicate by email, active security features such as multi-factor authentication to prevent unauthorized access. Installing spam filters can also help identify questionable communications.
• Take your time – Fraudsters often use social engineering tactics that rely on making people feel rushed. Take a moment to think after receiving communications and listen to your instincts if anything feels off.
• Liaise with your attorney – Real estate attorneys will have more experience in transactions than buyers. If anything out of the ordinary happens or you need to verify documents or details, they can provide guidance.

Responsive Measures to Take

Even when you think you’ve been vigilant, there can be times when criminals intercept your transaction. Firstly, don’t devote energy to beating yourself up about it; social engineering fraud is designed to take advantage of natural human behavior, so it can happen to anyone. Nevertheless, an effective response is a speedy one. 

As soon as you suspect real estate wire fraud, you should:

• Alert your bank – Immediately request your bank recall the transfer or freeze it. Ask to be transferred to their fraud department so that they can intervene.
• Report to the authorities – File a police report. The sooner this is done, the better chance there may be of tracking the crime or recovering funds. Reporting the incident to the FBI’s Internet Crime Complaint Center is vital, too.
• Inform your attorney – Your real estate lawyer can help you navigate the legal aspects of responding to fraud. Alongside guiding you through interactions with law enforcement, they may also be able to assist with recovery efforts or pursue legal action.
• Notify agent and title company – They may make arrangements to temporarily hold the sale if necessary and can coordinate with banks and law enforcement in investigations.

The key takeaway in any scenario related to real estate wire fraud is buyers need to be proactive in their efforts. Whether it’s staying up-to-date on the latest methods, implementing protective measures, or responding to intercepted transfers; your vigilance is a powerful tool against those who want to derail your property purchases and financial security.

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Whether you’re a general contractor, subcontractor, supplier, or design professional in Florida, you deserve to get paid for your significant skills. While the real estate industry is based on a lot of trust, it is unfortunately not guaranteed that those hiring you for a project will always follow through on their responsibilities to settle your invoices. The good news is that there are legal processes service providers can use to protect against the personal and business impacts of non-payment. A construction lien is one of these tools.

However, like any legal mechanism, construction liens must be used correctly and within the terms of Florida’s real estate statutes. So, let’s take a closer look at what they are and how to navigate them.

What is a Construction Lien?

In simple terms, a construction lien allows individuals or businesses who have contributed to a property’s construction or improvement to claim a percentage of ownership until they have been paid for the work. Also known as a mechanic’s lien, this legislation—outlined in Chapter 713 of the Florida statutes—makes it difficult for the developer to sell, refinance, or otherwise transfer the property without first dealing with the rightful claims of the relevant service providers. In some instances, liens can lead to property foreclosures to recover the debt.

Some useful things to know about construction liens:

They’re preventative – Liens are designed to avoid the necessity for lengthy and complex lawsuits by making it essential for developers to pay service providers’ bills before they can profit from the property.

They apply to “improvements to real property” – Liens can be issued when services or materials provided are used to make permanent changes to a property that impacts its value or functionality.

They must be correctly filed and served – In order to make a valid claim, providers must follow the correct procedures under Florida law for both arranging a lien and enforcing it.

Who Can File a Construction Lien?

Not everybody connected to a construction project is able to file a lien in Florida. However, the definition of potential lienors as outlined in Chapter 713.02 of the Florida statutes is relatively extensive. Some of the key roles of those who can file include:

It’s also important to note that only fully licensed contractors are able to file liens in Florida. Regardless of whether the work was completed to a professional standard, those without proper licenses in place before a job starts are unable to file liens.

Issuing an NTO

In some instances, a Notice to Owner (NTO) must be issued. Effectively, this involves those who don’t have a direct contract with the property owner—such as subcontractors, laborers, and material providers—advising the owner or developer that they may file a lien if they don’t receive payment.

NTOs need to be sent within 45 days of the first provision of materials, services, or labor to a project, and should include the following information:

• Provider details – The name and address of the company or individual providing goods or services.
• Hirer details – The name of the contractor who hired the provider on behalf of the property owner.
• Service description – A full description of the products or services provided.
• Legal property description – A description that precisely identifies the property beyond its street address. For instance, boundary measurements, landmarks, and lot details.
• Lien warning – There should be clear communication that a lien may be filed if payment isn’t settled.

The NTO should then be sent to the owner by tracked or certified mail to ensure evidence of service.

Filing the Construction Lien

The filing process in Florida typically involves the following steps.

Step 1: Complete a lien form

Service providers need to complete a claim of lien form, which is usually available to download from the applicable county court website or via a Florida real estate lawyer. This form must include a full breakdown of the amount owed, the goods or services provided, the name of the property owner, and the legal property description. It’s advisable to have an attorney review the form for accuracy and legal wording before filing.

Step 2: File the lien form with the court

The lien form must be filed with a court in the Florida county where the property is located. If there are boundary grey areas, it’s wise to seek advice from an attorney. There will also be a filing fee, which typically ranges between $10 and $40. The lien must be filed within 90 calendar days of the last date work was performed or materials delivered to the site.

Step 3: Serve the lien

Once it has been filed, a copy of the recorded lien then needs to be served to the property owner within 15 days. There must be a verifiable record of service, therefore issuing the copy by certified mail or via a service provider arranged by a real estate attorney is advisable.

Post-Lien Action

Filing the lien form with the court creates a public record, tying the debt to the property title until it is resolved. In most cases, one of the following things will then occur:

It’s important to note that there are strict deadlines for lien enforcement. In Florida, claimants must file for a lien foreclosure within one year of recording the lien. However, in instances where the property owner has filed a Notice of Contest, the deadline is reduced to just 60 days.

Above all else, bear in mind that navigating liens successfully is dependent on meeting eligibility requirements, providing relevant information, and filing in a correct and verifiable way. Attention to detail and guidance from an experienced legal professional can help ensure you are fairly compensated for your skills and hard work.

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In Florida, owning a home with someone else means you both hold legal rights to the property, but those rights vary depending on how the ownership is structured. There are three main types of co-ownership in Florida: tenancy in common, joint tenancy with right of survivorship, and tenancy by the entirety.

Tenancy in common is the most flexible. It allows owners to hold unequal shares and does not provide automatic inheritance rights if one owner dies. Joint tenancy with right of survivorship, on the other hand, ensures that the surviving owner automatically receives the deceased owner’s share. Tenancy by the entirety is reserved only for married couples and treats them as a single legal unit. If a couple divorces, this form of ownership automatically converts into a tenancy in common.

Why does this matter? Because the type of ownership directly affects your rights, including whether you can keep someone from moving in, what happens if you want to sell, and how disputes are resolved.

Can My Co-Owner Let Someone Move In?

Usually, yes. In most co-ownership situations, each person has an equal right to use and occupy the entire home—even if they own just a small share. This means one co-owner can invite someone else to live there without getting your permission. That right is baked into Florida’s property laws and does not require both parties to agree on who stays in the home.

But just because it is legal does not mean it feels fair. These situations often cause conflict, especially when one owner feels like they are footing the bill or losing privacy. Maybe your co-owner brings in a new partner, a cousin, or even a tenant, and suddenly you are sharing a space you never agreed to share. Unfortunately, unless there is a written agreement in place that limits these decisions, the law typically sides with the idea of equal possession.

It is a frustrating reality: you may be paying most of the expenses, handling maintenance, and living there full time, but you cannot always stop your co-owner from inviting someone else in. These scenarios highlight the importance of clear agreements and communication up front, but many people do not think about it until it is too late.

What If I Object to the Guest?

Even if the guest was not your choice, you usually cannot just change the locks or tell them to leave. As frustrating as it is, the law gives your co-owner the right to invite others in, and that means the guest has legal permission to be there—at least initially. Calling the police or trying to physically remove them is not likely to work unless there is a safety issue or a specific legal violation.

If you want the person out and your co-owner refuses to act, your options become more complex. One approach is to file for civil ejectment, which is a lawsuit aimed at removing someone who has no legal claim to stay. But this only works if the guest has overstayed their welcome and is no longer there under the co-owner’s active permission. In other cases, you may need to consider a partition lawsuit, which asks the court to divide or sell the property so you are no longer legally tied to the other owner.

Another possible angle is arguing that the guest has become a tenant. If the person has paid rent, received mail, or established a pattern of residency, a court may view them as a tenant instead of a guest. This can shift the situation into the realm of landlord-tenant law, requiring a formal eviction process. In short, whether you can remove them depends entirely on the facts—who invited them, how long they have stayed, and what their relationship is to the property.

Emergency Situations and Protective Options

There is one clear exception to the usual rules: when safety is involved. If the person living in the home is threatening, harassing, or abusive, the law does provide ways to intervene—even if they were invited by your co-owner. Florida courts allow people in danger to request a protective injunction, which can temporarily or permanently restrict someone’s access to the property, regardless of ownership status.

This is not the same as ejectment or eviction. Injunctions are used in situations where someone fears for their safety or is experiencing violence, stalking, or serious emotional distress. In these cases, a judge can issue an order that bars the person from coming near the home or having contact with you at all. If granted, this can give you immediate relief while you figure out longer-term solutions like ending the co-ownership or seeking sole possession of the home.

For anyone facing threats or intimidation, taking action quickly is critical. Speak with an attorney, and if needed, contact a domestic violence hotline or legal aid organization in your area. Emergency cases follow a very different legal process, and the system is designed to prioritize your safety first.

How to Prevent This from Happening Again

If a co-owner has brought someone into the home without your consent, and you are stuck living with the consequences, the best move may be to prevent it from happening again. One of the most effective ways to do that is by creating a co-ownership agreement. This legal document can spell out who is allowed to live in the home, how decisions are made, how costs are split, and what happens if someone wants to sell.

For example, a co-ownership agreement might include a clause requiring both owners to agree before any long-term guest moves in. It can also cover things like exclusive use of certain rooms, sharing of utility bills, or how disputes will be resolved. Having these expectations in writing makes it much easier to protect your interests and avoid unnecessary conflict.

If things have already broken down beyond repair, a partition action might be your best option. This is a legal process that allows a judge to divide or sell the property so each party can walk away with their share. It is not always quick or simple, but it can be a clean way to end a toxic or unworkable co-ownership situation.

Whether through a written agreement or a complete legal separation of ownership, taking proactive steps now can save you from repeating the same frustrating experience down the road.

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Florida’s booming real estate market has long attracted investors, retirees, and first-time homebuyers. But it’s also become a breeding ground for increasingly sophisticated scams—some targeting homeowners, others going after buyers, and many exploiting the gaps in digital transactions and public record systems.

These scams aren’t just occasional flukes either. They’re growing in frequency and complexity, costing us Floridians millions in losses and dragging innocent people into legal chaos over titles, deeds, and fraudulent wire transfers. The worst part? Many victims don’t even realize they’ve been targeted until it’s too late to recover their money—or their property rights.

1. Title/Deed Fraud (“Title Pirates”)

Fraudsters are increasingly stealing Florida homes by forging title documents. In one recent Tampa case, a pair posing as the owners filed fake quit-claim deeds to transfer multiple houses into their names, then tried to sell or mortgage them. Victims often notice odd mail or utilities changes (as when the scammer in that case had registered at the owner’s address), but sometimes the fraud is detected only by a court’s new deed-alert system. Florida has even coined the term “title pirates” for these criminals.

The scam works by searching public records for unguarded or absentee-owned property, forging documents or IDs, and recording fake ownership transfers at the county clerk’s office. New state laws now let homeowners sign up for alerts on any deeds filed in their name, a measure credited with stopping one Tampa land scam before any money changed hands. Such alert systems have helped catch several syndicates who swiped properties via bogus deeds.

2. Fake Online Listings (Zillow/Home For-Sale Scams)

Scammers have started hijacking online real estate sites to dupe buyers. In mid-2022, crooks listed a $2.3 million Jacksonville home on Zillow for just $21,000, a classic “too-good-to-be-true” ploy. The bogus listing used the owner’s photos and claimed a charitable tax writeoff sale for first-time buyers, but required victims to wire a $2,000 “deposit” (via Zelle) before touring the property. Unsuspecting buyers sent funds and often never saw a house or got their money back.

News reports show these scams rake in deposits from dozens of duped buyers before platforms take down the ads. The thieves’ pitch always involves an explanation for the steep discount (such as a family helping first-time buyers) and instructions to pay quickly online, often refusing any agents or lawyers. Real estate professionals now warn Floridians to verify ownership and not pay any deposits before seeing a home in person or confirming with the actual listing agent.

3. Wire Fraud at Closing (Escrow/Email Scams)

Buyers can also lose money to schemes that hijack closing funds. In a typical scam, criminals hack or spoof email accounts of a title company or realtor, then send altered wiring instructions at the last moment. A Florida homebuyer might dutifully wire a down payment or closing costs, only to have those funds diverted into the scammer’s account.

In Florida, local news has repeatedly documented families losing tens of thousands when email hackers “pose” as the title company and reorder wire transfers. Victims in Orlando reported losing $38,000 this way before recovering only a fraction. Experts urge buyers to always call and verbally confirm wire instructions with a trusted closing agent, not by replying to email alone. Banks and courts say once the money is gone, it is usually unrecoverable, so vigilance at closing is critical.

4. Vacant Land and “Dirt” Scams

Florida’s rural and undeveloped areas have spawned new scams targeting land buyers. In one Palm Beach County case (Jupiter Farms), a scammer pretended to be a landowner and signed a listing agreement to sell 10 acres. Buyers showed interest and even wired $35,000 into escrow, but a diligent realty agent smelled something was off and halted the deal. The title company’s fraud-alert checks revealed fake IDs and a bogus signature on the deed, stopping a potential $350,000 wire to the con artist.

These “dirt scams” often start with the crook combing public records for owners of vacant lots, especially those who live out of state or out of the county. They then pose as those owners and list the land for sale. If buyers aren’t careful, they can lose deposit money or even end up in lawsuits over the title. Florida Realtors and TV stations now warn: always meet the seller in person, verify ownership via county records or fraud-alert services, and never wire money for a land deal before every document checks out.

5. AI/Deepfake Impersonation Scam

As real estate transactions have gone digital, fraudsters have begun using AI-generated videos to impersonate buyers or sellers. In one 2024 Florida case, scammers used a photo of a missing woman to create an AI-driven video persona on a Zoom call with a title company. In that Hallandale Beach incident, the “seller” (presented via AI deepfake) claimed to be the owner of a vacant lot. Title company staff noticed inconsistencies, such as tax bills being mailed to the Bahamas while the fake seller said she lived in West Virginia.

They quickly realized the video was not a real person and demanded live “proof of life” such as an unplanned video chat or spontaneous questions, causing the imposter to vanish. Had the fraudster not been caught, a buyer would have lost about $250,000 on the bogus sale. To avoid this sophisticated scam, always verify identities beyond a video clip. Title agents now routinely require live video calls with the actual owner holding a photo ID. Buyers should confirm seller details match public records and be wary of strange payment methods or refusals to meet in person.

Watch Out!

What makes these scams especially dangerous is how seamlessly they blend into legitimate real estate transactions. They exploit speed, trust, and technology. In many cases, buyers or sellers think they’re working with verified professionals or communicating with actual owners, only to find out too late that they’ve been defrauded by someone who knew how to mimic all the right signs.

Florida has made some strides in protecting consumers, including fraud alert registries and new ID verification procedures. But ultimately, vigilance is personal. Always double-check documents, verify identities through trusted sources, and never rush a transaction, no matter how good the deal seems. Staying skeptical, informed, and cautious is your best defense in an increasingly digital real estate world.