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Real Estate

“It’s All Greek to Me”: Escrow

By Land Conservation Easements, Real Estate

A distant cousin of the crow? Not exactly. “Escrow” is a term that can be found in many different contexts, but it typically refers to agreements where an impartial third party retains control of assets throughout the duration of a transaction.

            For instance, in real estate, the money one puts down to purchase a house is placed “in escrow” until the final contract is signed by both buyer and seller. While the money is in escrow, neither the buyer nor the seller has access to it – rather, the impartial third party holds on to the funds until the transaction is completed or cancelled.

If you need guidance through the real estate process, attorneys Fred Jacobs and Sean Byrne of Bach, Jacobs & Byrne, P.A. are real estate attorneys and escrow/title agents who can help you with a closing on the purchase or sale of real estate. Call today at (941) 906-1231 to set up a consultation.

June 25, 2019
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What does it mean to hold property as “tenants in common”?

By Real Estate

Tenancy in common is a form of ownership which is made distinct from other forms of ownership between or among multiple owners (i.e. joint tenancy and tenancy by entireties) by several factors. Primarily, tenants in common do not have to own equal shares of the property – one tenant can own 30%, another 50%, and the other 20%. Additionally, tenants in common can be added at any time during the ownership of the property – even 20 years after three people began holding property as tenants in common, a new tenant can obtain interest on the property. Finally, it is important to note that tenants in common do not have to be legally married or related to hold their property as such.

As a tenant in common, one retains full right to sell their portion of the property, bypassing the need for permission from the other tenants. And, when an individual holding property as a tenant in common dies, his/her portion may pass to the decedent’s named heirs.

The attorneys at Bach, Jacobs & Byrne, P.A. are licensed real estate title and closing agents and can assist you in the sale, purchase, or re-titling of your real property. Call us today at (941) 906-1231.

December 11, 2018
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“It’s All Greek to Me”: Homestead

By Asset Protection Planning, Estate Planning, Real Estate

“Homestead” can be found in several different contexts in Florida law, but it always retains its fundamental application to an individual’s home. When used to refer to real estate, one might hear of the “homestead exemption” – this is a tax exemption of up to $50,000 on land as valued by the county property appraiser. In the Florida Constitution, a special exemption for homestead property is also provided, one that lists the homestead as a protected asset with regard to creditors. This law ensures that, if a creditor successfully brings a claim against you in court, the judgment cannot attach to your homestead, if the debt is not otherwise secured by the real estate, as with a mortgage. There are also exceptions for unpaid tax foreclosures and mechanics liens.

Finally, estate attorneys use the word in the context defined by Article X, Section 4(c) of the Florida Constitution. It is stated: “The homestead shall not be subject to devise if the owner is survived by spouse or minor child, except the homestead may be devised to the owner’s spouse if there be no minor child.” The process of dealing with a homestead after the death of its owner thus becomes quite different from the process of dealing with the decedent’s other assets.

Call Bach, Jacobs & Byrne, P.A. at (941) 906-1231 if you have questions about how you can plan your estate with special consideration for your homestead.

November 27, 2018
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What does “TBE” stand for in real estate?

By Asset Protection Planning, Estate Planning, Probate, Real Estate

“TBE” stands for “Tenancy by Entirety,” which is a special form of joint ownership between spouses wherein property is not held individually, but collectively by the married couple. Thus, following the death of one spouse, the assets held as TBE do not have to go through probate – instead, they all transfer by operation of law to the other spouse. Furthermore, creditors cannot access this property unless both spouses are liable.

However, there are certain caveats to holding TBE property. First and foremost, one must be legally married to be eligible for a TBE. It is also necessary to remember that assets held before marriage do not automatically transfer to TBE status – this property must be formally identified as TBE property. Finally, it is important to check bank signature cards for any bank accounts opened with a spouse: though Florida law presumes accounts opened at the same time by spouses to have TBE status, bank officers can sometimes register the accounts as “Joint Tenants with Right of Survivorship.”

The attorneys at Bach, Jacobs & Byrne, P.A. will review the titling of your and your spouse’s assets as part of their comprehensive estate planning. In addition, Fred Jacobs and Sean Byrne are authorized real estate title and closing agents and can assist clients with the purchase, sale, or reconveyance of real property. Call to schedule an appointment at (941) 906-1231.

September 6, 2018
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What Is a Reverse Mortgage?

By Real Estate

A reverse mortgage is a financial agreement in which a homeowner abdicates equity in their home in return for payment. This is a tool designed to be utilized by older individuals in order to supplement their retirement income. With a reverse mortgage agreement, the bank pays the homeowner based on the percentage of accumulated equity they have in the home. This amount has to be repaid either when the homeowner dies, sells the home, or moves out permanently. To be eligible for a reverse mortgage, you must either own your home outright or have a low mortgage balance. Additionally, there are no restrictions dictating how the money received from a reverse mortgage can be used by the homeowner.

June 29, 2018
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In 2018, Floridians will vote on whether to raise the Homestead Exemption

By Asset Protection Planning, Real Estate, Tax Law

As of May 2017, the Florida Senate has voted to put a proposal on next year’s ballot that will increase the Florida homestead property tax exemption from its current value of $50,000 to a value of $75,000. This exemption applies to homesteads worth $100,000 or more and this new bill will give Florida voters the opportunity to lower property taxes. According to estimates regarding the effect of this legislation, it has the potential to save 4.3 million Florida residents a total of $644 million and the average home owner would save approximately $170 annually.

If 60% of voters approve this legislation, this new exemption rate will take effect on the first of January in 2019. Though this bill has its fair share of opponents and supporters, it will now be up to Florida voters to decide if cutting property taxes is the right decision for the state.

June 26, 2018
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What is the Florida Homestead Exemption?

By Asset Protection Planning, Real Estate, Tax Law

The Florida homestead exemption is an asset protection tool implemented to protect homestead property. Your Florida homestead will be designated to procure certain exemptions from real estate taxes.

In order for you home to be considered your “homestead” in Florida, you must have a legal title to the home, the home must be your permanent residence and you must apply for the homestead exemption at the property appraiser’s office in the county where your home is located. A second home or property cannot be considered a homestead in Florida and properties that are titled in the name of irrevocable trusts, limited liability corporation companies, corporations or partnerships are also unable to qualify as homestead properties. However, property owned by a living trust or a land trust may qualify as homestead property in certain situations.

Currently, the Florida homestead exemption reduces the value of a home for assessment of property taxes by $50,000 for homes that are worth $100,000 or more. This means that, if a home is worth $100,000, it will be taxed as if it is only worth $50,000.

June 22, 2018
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The New Estoppel Law

By Elder Law, Real Estate

Estoppel is the legal principle that prevents an individual from making assertions that are contradictory to their previous statements before the court or are contradictory to what has legally been established as the truth. Estoppel can operate by way of stopping someone from making a certain assertion in court, exercising a certain right, or from bringing a particular claim. In spring of 2017, two new bills related to estoppels in the context of homeowners associations cleared both Florida legislative chambers and have been in effect since July 1st, 2017. These bills are Senate Bill 398 and House Bill 483.

The following bullets explain the most noteworthy components of the legislation and the changes that these bills have made:

  • Associations have 10 days to produce an Estoppel certificate
  • Estoppel certificates must be valid for at least 30 days
  • Estoppel certificate fees cannot exceed $250 and rush fees cannot exceed $100
  • No fees may be charged for amending Estoppel certificates
  • Clarifies what must be included in an Estoppel certificate (more information must now be provided to the purchaser by the association)
  • Associations may still charge fees, but may be required to reimburse them if the property is not sold

These new bills are beneficial to title agents, buyers, sellers, closing agents and realtors by keeping costs lower and making the overall estoppel process move more quickly. Bach & Jacobs, P.A. provides title insurance of closing services for real estate transactions and can assist you if you purchase or sell real estate that is part of a homeowners or a condo association.

May 11, 2018
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What is a QPRT?

By Estate Planning, Real Estate

A Qualified Personal Residence Trust (QPRT) is a lifetime transfer of a personal residence in exchange for rent-free use of said residence during the trust term. When that term comes to an end, the home passes to the intended beneficiary or beneficiaries. If you are still living at the end of the specified term, you have the option to have the home distributed amongst your loved ones or put into a trust for them. This is a popular estate planning method for individuals that want to give their vacation homes to family members when they pass away because it can reduce the gift or estate tax cost that comes with transferring a residence. Both residence and vacation homes can qualify as QPRTS and often more than one home can be protected.

If you think that a Qualified Personal Residence Trust may be the right choice for you, or need assistance with any Estate Planning matters, contact our office at 941- 906-1231 to schedule an appointment with one of our attorneys.

October 13, 2017
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Sarasota County Senior Exemption with Limited Income

By Elder Law, Real Estate, Tax Law

A resident who qualifies for the homestead exemption can also be eligible for the senior exemption providing that at least one owner of the property is 65 years of age or older and they meet the annual household adjusted gross income limit.  This can be determined by calling the Sarasota County Property Appraiser at (941) 861-8200.

According to the Sarasota County Property Appraiser:  “The limited income Senior Exemption provides an additional Homestead Exemption for residents 65 and over… Within Sarasota County the benefit amount for this exemption has been established by the different governing authorities and varies depending on where you reside:  $25,000  exemption for the City of Sarasota municipal ad valorem taxes, $50,000 exemption for the Town of Longboat Key municipal ad valorem taxes, $5,000 exemption for the Sarasota County ad valorem taxes, and $0 exemption for the City of North Port or the City of Venice municipal ad valorem taxes.”

For more information about this exemption, or if you need other tax planning advice, call our Florida Board Certified Tax Attorney, Fredric Jacobs, at (941) 906-1231.

April 29, 2016
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