Florida real estate law will see modifications effective July 1, 2010, as many of the 274 new laws passed during the 2010 legislative session take effect at the start of the new fiscal year. Of these many new laws, two (2) will have an impact on how the Tallahassee real estate market is regulated.
Short Sales Get Partial Doc Stamp Relief
The new Florida real estate law dealing with short sales lowers the amount of state taxes residents pay when they sell their homes through a short sale (the sale price is less than the outstanding debt). The state will not collect taxes on the canceled debt, or the difference between the sale price and what is owed on the house.
Currently, short sales have become very common due to the sharp decline in real estate values. Based on our best analysis, over half of homeowners in the Tallahassee real estate market are underwater on their mortgages, meaning they owe more than their house is worth, and currently 21% of the listings in the Tallahassee MLS are short sales, foreclosures or already foreclosed. This means that 15% of the current listings in the Tallahassee MLS will definitely be affected by this new law, and most likely a much higher percentage as time goes by.
Condo And Homeowner Associations Take Control
Another new Florida real estate law allows Homeowners Associations (and Condo Associations) to evict a renter if their landlord isn’t paying the condo or association fees. This might not seem like a big deal, but it really is huge. Many Associations in Tallahassee are in trouble, with a large portion of the property owners not making payments on their association fees.
This law allows the associations to reach around the property owners and deal directly with the renters, making it possible for them to force the tenants to pay the fees or face eviction. Look to see a “tenants bill of rights” disclosure coming in the future, as many people who rent a property in Tallahassee are going to find themselves dealing with the problems of the property owners.