Page 84 - Akerman | 2016 Guide to Doing Business in Florida

9.4.2 Protection Against Fraud

While there are a number of statutory consumer protection disclosures required (particularly
with regard to the sale of residential properties) which are beyond the scope of the general
summary set forth in this Guide, fraud in connection with the sale and purchase of real property
is generally governed by Florida common law. In commercial real estate transactions, Florida
case law holds that the doctrine of caveat emptor generally applies, i.e., the seller of
commercial real property generally does not have to disclose known facts materially affecting
the value of the property. In residential transactions, Florida case law holds that sellers of real
property are required to disclose facts materially affecting the value of the property. Florida
recognizes the torts of fraudulent misrepresentation and negligent representation, both of which
have been successfully used by aggrieved purchasers of real estate.

9.4.3 Documentary Stamp Taxes

The Florida documentary stamp tax is due on all deeds transferring Florida real property for
monetary consideration or any other consideration that has a reasonably determinable
pecuniary value. The current documentary stamp tax rate on deeds is $.70 cents per $100.00
of the consideration, or any fraction thereof, in all Florida counties except Miami-Dade County,
where the rate is $.60 cents per $100.00, plus the Miami-Dade County local-option surtax of
$.45 cents, which typically only applies to properties other than single-family residences.
Payment of documentary stamp taxes on deeds in residential transactions is customarily the
seller’s responsibility and may be subject to negotiation in commercial transactions.
Additionally, the Florida documentary stamp tax is due on promissory notes or other obligations
for indebtedness. See infra, Section 9.4.5(c) and (d).

9.4.4 Ad Valorem Real Estate Taxes
Ad valorem real estate taxes are billed in arrears on a calendar year basis. Such taxes are billed
in November of each year and due by March 31st of the following year, with the following
discounts for early payment: a 4% discount if paid in November, a 3% discount if paid in
December, a 2% discount if paid in January, and a 1% discount if paid in February. Taxes are
delinquent on April 1st. It is customary for ad valorem real estate taxes to be prorated at the real
estate closing based on the prior calendar year’s tax amount (fully discounted) if the closing
takes place prior to when the actual tax amount for the current calendar year is known. In such
instance, frequently the purchase agreement provides that the tax prorations will be adjusted
when the actual taxes are known at the request of either party. Alternatively, the purchase
agreement may state that the tax prorations are final.

9.4.5 Closing
(a) Deed. There are generally four types of deeds from which the parties may
chose: (a) statutory warranty deed, (b) warranty deed, (c) special warranty
deed, and (d) quit claim deed. A statutory warranty deed coveys good title
with the present covenants of seisin and the covenant against
encumbrances, and the future covenants of further assurances and quiet title.
A warranty deed should provide the same warranties and covenants as a
statutory warranty deed. The form of warranty deed, special warranty deed,
and quit claim deed have not been adopted by statute, but custom and time
have resulted in some generally accepted forms. In contrast to a statutory
warranty deed or a warranty deed, a special warranty deed covenants only to
protect grantees from the claims of others specifically claiming through the

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