Purchasing an investment property in Florida is fundamentally different from buying a personal home. You’re making a financial decision with income, tax, and liability consequences, not just choosing a place to live.
The due diligence standard is higher. Title companies and realtors focus on closing the sale and clearing obvious issues, but they do not analyze zoning, land use restrictions, environmental liabilities, or future development rights. You need a Board Certified Real Estate Attorney to provide a level of scrutiny that protects your capital from risks that title companies and real estate agents are not equipped to manage. We draw on our experience in handling over $500 million in real estate transactions.
To discuss how to protect your next investment, contact the Board Certified Real Estate Attorneys at Lulich & Attorneys at (772) 589-5500.
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An Investment Property Is a Business
When you own rental property, you open yourself up to potential lawsuits from tenants. Structuring the purchase correctly from day one is your first line of defense. How you take title to the property—whether in your personal name or through a business entity—will determine your personal liability.
Focus on Profitability
The purchase contract, lease agreements, and zoning compliance all directly affect your bottom line. A poorly worded clause in the purchase agreement could lead to unexpected repair costs, while non-compliance with local rental ordinances may turn a profitable venture into a financial drain through fines and legal fees.
The Difference in Due Diligence
The investigation for an investment property goes deeper. Beyond the property's physical state, it's about evaluating its legal compliance and income-generating potential. This involves a level of due diligence that standard residential transactions may not cover, such as analyzing association financials for potential assessments or verifying rental income history. When unresolved claims surface, we map curative paths, from negotiated releases to a quiet title action, so issues don’t follow you to closing.
What a Board Certified Real Estate Attorney Does That Others Can't
A common question is, "Why can't my real estate agent or the title company handle this?" The answer lies in their roles and legal limitations. For investors, finding a good real estate attorney matters because a Board Certified Real Estate Attorney is the only party in the transaction whose sole fiduciary duty is to protect your legal and financial interests.
Comprehensive Contract Review and Negotiation
We analyze the purchase and sale agreement not just for accuracy, but for strategic advantage. Our role is to identify and renegotiate clauses that are unfavorable to you as the buyer. This includes scrutinizing contingency clauses related to inspections, financing, and appraisal to ensure you have adequate time and flexibility. We also focus on seller disclosure obligations and default remedies that are often overlooked but may have serious financial consequences.
Ironclad Title Examination
While a title company performs a title search, an attorney analyzes the findings with a legal eye. We look for defects that could threaten your ownership, such as old liens from prior owners, unresolved legal judgments, easements that grant others rights to use your property, or breaks in the chain of ownership. These “clouds” on the title, essentially title clouds that prevent the sale of the property, could derail a closing or, worse, lead to future lawsuits challenging your ownership. Having an attorney interpret the title commitment and underlying documents may be the difference between a secure investment and a costly legal battle.
Strategic Entity Formation
Should you buy the property in your personal name or under an LLC? This is one of the most important decisions an investor makes. We will explain the liability protections and operational benefits of forming a legal entity, like a Limited Liability Company (LLC), to hold your investment properties. Taking title in an LLC could create a barrier between business liabilities and your personal assets, a shield for any serious investor.
Navigating Closing and Escrow
The closing is the final step where ownership is transferred. We review every document you sign to ensure the terms are correct and there are no last-minute surprises.. Think of the closing statement as the final invoice. We audit it to make sure you are not paying for unnecessary or improper fees, a common issue governed by federal laws like the Real Estate Settlement Procedures Act (RESPA). This law is designed to protect consumers by requiring disclosures about settlement costs and eliminating illegal kickbacks.
Key Florida Laws that Impact Your Investment
Florida's real estate market is dynamic and, in recent years, has seen a surge in investment, competition, and unfortunately, fraud. This is especially true in desirable areas like Vero Beach and Indian River County.
Local Zoning and Land Use
Indian River County has specific and sometimes complex zoning and land development regulations. Are you planning to use the property for short-term vacation rentals? We will investigate local ordinances to confirm this is permissible. For example, some areas may have restrictions on the frequency or duration of rentals that could impact your business model. Ignoring these rules, which cover everything from parking to noise levels, could potentially lead to fines and legal battles that halt your income stream before it even starts.
Coastal Regulations and Condominium Law
Many investment properties in our area are condominiums or are located near the coast. These properties are subject to an additional layer of rules. The Florida Condominium Act governs the creation, sale, and operation of condominiums. We review condominium documents, including the declaration, bylaws, and association financials, to uncover potential issues like pending special assessments for major repairs or ongoing litigation that could cost you thousands.
Your Investment Property Legal Timeline: When and How We Protect Your Purchase
A Board Certified Real Estate Attorney integrates seamlessly into your transaction timeline, providing key checkpoints that safeguard your investment without derailing your closing schedule.
The Strategic Timeline: From Contract to Keys
Days 1-3: Contract Review and Negotiation
The moment you're ready to make an offer, we review and strengthen your purchase agreement before you sign. This front-end legal analysis is your most powerful tool for securing favorable terms. We negotiate inspection periods, financing contingencies, and seller disclosure requirements that give you maximum flexibility while protecting your earnest money deposit.
Days 4-10: Due Diligence Investigation
While your property inspector examines the physical condition, we conduct our legal investigation. This includes title examination, zoning verification, permit research, and condominium document review (if applicable). We coordinate with your other professionals to ensure all discovery happens within your contract deadlines.
Days 11-25: Issue Resolution and Documentation
If our investigation uncovers concerns, such as title defects, unpermitted additions, or zoning violations, we have time to negotiate solutions with the seller. This might involve requiring the seller to cure title issues, adjust the purchase price, or provide credits at closing. We also prepare any entity formation documents if you're purchasing through an LLC.
Days 26-30: Pre-Closing Preparation
In the final week, we review all closing documents, coordinate with the title company, and ensure loan documentation (if applicable) aligns with your contract terms. We perform a final title update to catch any last-minute issues and prepare for the closing meeting.
Emergency and Expedited Transactions
Florida's competitive investment market sometimes demands quick action. For time-sensitive opportunities, we offer expedited review services that compress our timeline without compromising thoroughness. We typically complete contract review within 24 hours and essential due diligence within a week, allowing you to compete effectively while maintaining legal protection.
Hot Market Strategy: In bidding wars, having pre-negotiated contract language and a legal team ready to move fast can be the difference between winning and losing a property. We work with active investors to develop standardized contract amendments and due diligence checklists that accelerate the process.
Common and Costly Mistakes for Investors
Here are some examples of the most common mistakes we help investors sidestep:
The "As-Is" Clause Illusion
“As-is” means the property is being sold in its current condition, with no promises from the seller to fix or improve anything before closing. The buyer takes responsibility for any existing issues, visible or hidden. Many investors believe an "as-is" contract means they have no recourse if something is wrong with the property.
However, under the landmark Florida Supreme Court case Johnson v. Davis, sellers are still required to disclose known facts that materially affect the property's value and are not readily observable. This duty to disclose exists even with an "as-is" contract.We ensure the seller's disclosure is complete and that your inspection rights are robust. This gives you a clear path to cancel the contract or renegotiate the price of significant issues, like a history of flooding or a known structural problem, are discovered.
Survey and Boundary Disputes
You buy a property assuming the fence line is the boundary, only to discover later that your neighbor's driveway is actually on your land.
This is known as an encroachment, and it could lead to costly legal disputes or prevent you from adding a pool or extension you had planned. It may also create title issues when you decide to sell the property in the future.
We insist on and carefully review a current property survey to identify any encroachments, easements, or other boundary issues before you close on the property. Resolving these matters upfront protects your property rights and prevents future conflicts.
Unpermitted Work
A previous owner added a beautiful new bathroom or converted the garage into a rental unit without getting the required permits from the county.
This is a ticking time bomb. The county could eventually discover the unpermitted work and force you to tear it out, pay significant fines to bring it up to code, or face liens against your property.
Our due diligence process includes checking with the local building department for open or expired permits that could become your problem after closing. We work to ensure that any unpermitted work is addressed by the seller before you take ownership.
Secure Your Investment with a Board Certified Real Estate Law Firm
Your real estate portfolio is a cornerstone of your financial future. Don't leave its foundation to chance. Building your investment with a Board Certified Real Estate Attorney to protect your assets and ensure your investment starts on solid legal ground.
Let us handle the legal complexities so that you are able to focus on finding your next great property. Call Lulich & Attorneys today at (772) 589-5500 to schedule a consultation.
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FAQs for Florida Real Estate Investors
When in the process should I hire a real estate attorney?
You should engage a Board Certified Real Estate Attorney as early as possible, ideally before you sign the purchase contract. Having legal counsel during the negotiation phase provides the most protection and leverage. We help shape the terms of the deal in your favor from the very beginning.
Can't the title company's lawyer just represent me?
No. The title company's role is to ensure a clear title and issue a title insurance policy. Their attorney represents the interests of the title company, not you as the buyer. A Board Certified Real Estate Attorney is your exclusive advocate, dedicated solely to protecting your interests throughout the transaction.
What is the difference between a Board Certified Real Estate Attorney and other lawyers?
Board certification is the highest level of evaluation by The Florida Bar for competency and experience in a specific area of law. It signifies that your attorney has been recognized for their advanced knowledge, skills, and proficiency in real estate law. To become certified, an attorney must have years of substantial involvement in real estate law, receive positive peer reviews, and pass a rigorous written examination.
I'm buying with cash. Do I still need an attorney?
Yes. Paying with cash removes the lender's legal review from the process, which means you have one less set of eyes on the transaction. An attorney becomes even more important to protect you from the title defects, contract issues, and other risks that a lender's legal team might otherwise catch.
Can you help me set up an LLC for my investment property?
Yes, our firm handles the legal work required to form a Limited Liability Company (LLC) or other entity to serve as the legal owner of your property. This provides a shield for your personal assets from potential liabilities associated with the investment.
Do you handle evictions if I have problems with a tenant later?
Our firm's practice is focused on representing property owners and investors in the acquisition and sale of real estate. We do not represent landlords or tenants in eviction proceedings.