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ML: Florida has unique rules regarding homestead exemptions and property rights. How do these laws affect real estate transactions, particularly for out-of-state investors? Campbell: Florida has unique rules and regulations regarding homestead exemptions which can have unknown consequences particularly for out-of-state investors. First, out-of-state investors cannot claim homestead exemption (for creditor protection or for tax purposes) unless Florida is their primary residency. As a result, out-of-state investors may face higher property taxes, particularly if they purchase a property from a prior seller who had homestead exemption and paid lower taxes (due in part to the Save Our Homes amendment which limits the increase in property taxes to three (3%) per year). This is often referred to as the “recapture rule”. Investors when purchasing a residential property in Florida should be aware of their actual tax liability of owning the property prior to purchasing and not assume they will be paying the same taxes as the prior owner. ML: Given Florida’s vulnerability to hurricanes and natural disasters, how do you assist clients in ensuring their property investments are adequately protected from environmental risks? Campbell: We advise our clients to consider the location of the property on which they are seeking to purchase. Understand whether it is a flood zone and/or prone to hurricane landfall. We also advise our client to have a plan in the event of a hurricane. For instance, how they will operate, what measures do they need to take to find work around for issues which are inherent in hurricanes such as lack of power and access to the property. Clients are advised to have a contingency plan in place and to become familiar with what the landlord is responsible for as to preparations for the hurricane and after landfall. Clients are advised to have copies of all insurance policies and the lease agreement, as well as any commercially sensitive documentation with them or to secure them in a safe location during the storm. Finally, it is strongly recommended that all businesses have business interruption insurance. By ML Staff. Photos/The Campbell Law Group P.A For more information, visit: The Campbell Law Group P.A. 2121 Ponce de Leon Blvd, Suite 540 Coral Gables, FL 33134 Phone: (305) 460-0145 www.thecampbelllawgroup.com Email: info@thecampbelllawgroup.com