Realtors Beware

As more properties, both residential and commercial, change hands at tremendous prices and profits, it is becoming essential that buyers be made aware of all legal usage limitations on the property being acquired. In the Florida Appeals Court decision of MICA vs Mazzini (Case #2D03-2361) this concept was emphasized by the Appeals Court in their written decision (below):

“Where a purchaser of land intends to use it for a purpose not allowed by a restrictive covenant, he should seek to have the deed restriction removed before purchasing the property.”  Wood v. Dozier, 464 So. 2d at 1170.

As an example, all C-4 properties on Marco Island are Deed Restricted against any residential uses. Even though the Land Development Code allows Mixed Use. All Real Estate agents need to be aware that if they present a land use not consistent with the Deed Restrictions, they could be held liable for damages if the buyer is stymied when it comes time for project approvals.

All residential properties are Deed Restricted against commercial uses. Rental of a home for a period of less than 6 months is a commercial enterprise. This interpretation will be tested in a Court of Law. As a precaution, Realtors should be careful about selling homes to be used as rentals. As a minimum, provide the Deed Restrictions to any buyer.

Ed Issler