Build On This!

The 2005 real estate market in Florida continues to be rosy. New residents continue to arrive in Florida at the average rate of 1,000 per day, and there does not appear to be any let up in the flow. Some of the new residents become part of the burgeoning workforce; others are retiring baby boomers. Another set, which may also fall into either of the above categories, are foreigners from many countries including, most notably, Canada and South America. These new residents require, and, as mentioned, are often part of, the expanding workforce needed to provide the services and infrastructure of the expanding South Florida community: new homes, schools, roads, parks, supermarkets, restaurants, retail centers, hospitals, office buildings, warehouses, industrial centers, and so on.

All of these factors create a fast moving real estate market with values escalating more rapidly than the national norm. The average sales price of a home in Fort Lauderdale in November, 2004 was $377,565. This average sales price represents a 28% increase over 2003. The median sale price of a home in Fort Lauderdale in November, 2004 was $294,000. This represents a 23% increase over 2003. Nationally, the average November, 2004 home sales price was $255,100 and the median home sales price was $175,000. One can see that the Florida prices are dramatically higher than their national counterparts. Bolstering the market is the average 30 year fixed mortgage, which has remained below 6%, thus enabling residents to obtain higher priced homes at lower interest rates.

Another exciting trend is the revitalization of downtown areas, business centers and industrial developments. As downtown areas become more populated, the available real estate decreases. Gentrification of blighted city areas is on the increase. Urban areas, such as Atlantic Avenue in Delray Beach, Florida are in the process of being beautified and urban market rates are rising. Office vacancy rates are going from the double digits to the single digits…for example, in Palm Beach County the 2004 office vacancy rate of 12.2% fell to 9.9%. Similarly, industrial space development is booming. In Palm Beach County, 478,500 square feet of industrial space is now under construction. This will increase the already existing 44.6 million square feet of industrial space.

Nationally, 2005 is predicted to be a strong year for home sales, commercial centers and industrial developments. Florida is not only expected to follow suit, but is expected to continue to be one of the fastest growing states in the nation. You may contact the Florida office of BDB for more information on how we can assist you in acquiring or selling real property in Florida.

By David Lindner. The Ohio Supreme Court recently decided the issue of whether a condominium owners’association can be proper party to contest a county auditor’s tax assessment for the common areas of a condominium. In Village Condominiums Owners Assn. v. Montgomery Cty. Bd. of Revision (2005), 106 Ohio St. 3d 223, the condominium associate filed a complaint with the Montgomery County Board of Revision disputing an assessment levied against the common area of the condominium as a separate tax parcel. Under the Ohio Condominium Act, the common area of a condominium is not treated as a separate parcel for tax purposes. Instead, each owner's undivided interest in the common area is to be included in the value of that owner’s unit for tax purposes. The Supreme Court of Ohio, however, held that the Association did not have standing to contest the assessment because it was not the “owner” of the common area.

The oral argument in this case can be viewed here. You will need realplayer to view the videotaped oral arguments. If you do not have realplayer, you can download it here.(Windows) or here (Mac)

Mr. Lindner is an Associate of the law firm and his practice is focused on real estate and construction law. He has represented condominium and homeowners’ associations in a wide variety of matters including association operations, foreclosures, litigation, and general real estate matters.

The Cinncinnati Inquirer recently reported that Chiquita Brands International Inc. acknowledged that it is considering moving its headquarters from Cincinnati, Ohio to either Miami, Fl or Atlanta, Ga. Talks have begun between chief executive Fernando Aguirre, Ohio's Department of Development

Law.com reported that the Florida Redevelopment Association, a Tallahassee-based consortium of municipal redevelopment officials and planners, recently proposed changes in Florida’s takings law. The changes include affording property owners advanced notice of condemnation hearings and as much as 150 percent of the government-appraised value of their land. Under Florida law now, property owners get no notice of hearings and only the appraised value of their land. Representative Jack Seiler of Pompano Beach also recently stated that property takings will be one of the top issues in the Florida legislature in March, 2006.

The Florida homestead exemption has many nuances. One in particular that Florida residents need to be aware of is the limitation on the size of your homestead. If your property is located outside a municipality you probably don’t have to worry. You enjoy homestead rights to the extent of one hundred and sixty acres. However, for a majority of residents, who live within a municipality, the homestead extends to the extent of one-half acre. Art. X, Sec. 4 Fla. Constitution.

An interesting question regarding the calculation of the half-acre limitation is presented when the homestead is a very large condominium. Specifically, what comprises the size of the homestead? A creditor recently argued that the size of the homestead should be determined in a condominium by: (taking the square footage of the condo) + (the percentage the condo’s square footage represents of the overall development) x (the square footage of the common areas). The creditors hope was to disqualify the condominium from a homestead exemption, because it was larger than a half-acre. However, the Third District Court of Appeals disagreed with the calculation.