Perform due diligence before you buy a home
Dunedin, FL (PRWEB) August 17, 2016
Robert Tankel, founding partner of Tankel Law Group, recently addressed a meeting of the Pinellas Realtor Organization (PRO). He focused on the Marketable Record Title Act, (MRTA) Chapter 712, Fla. Stat. which applies to communities with deed restrictions. If the law strips restrictions, a home could lose tens or hundreds of thousands of dollars in value.
He explained that MRTA automatically extinguishes deed restrictions approximately 30 years after the first sale in a community unless the covenants, or restrictions are either extended by a vote of the community's board of directors. If the covenants or deed restrictions are ended by operation of MRTA, a meeting of the members and a vote needs to be taken to reinstate them, a long and costly process, with no guarantee of success.
In a typical purchase and sale of residential real estate, he explained, that neither the brokers, title agents, lawyers, lenders or anyone else usually involved in the transaction has a duty to determined if the deed restrictions are viable.
Tankel explained that the buyer has to examine the records filed with the Clerk of Court, or the association to exercise proper due diligence.Linda Goldfarb, a broker and consultant who invited Tankel to speak said: "When Bob explained how a little known law could have such an impact on the value of a home, I felt we needed to share this with our members." She added, "I'm glad that the members of PRO were able to get enlightened on this important issue."
Robert Tankel is a member of The Florida Bar, active in the Community Associations Institute, and has represented condominium and homeowner associations throughout Florida since 1982.