The Keys Buying process
Information unique to buying a home in the Florida Keys:
As you may be aware, the environment that makes the Keys so attractive
to thousands of people is a fragile environment the requires considerable
attention to protect its health and beauty. This fact has created
a requirement for close management of all activities that have
or might have negative impact on the environment now or in the
foreseeable future. The result is a number of "unique to the
Keys" regulations and procedures concerning property ownership.
They are provided for information purposes to broaden your understanding
of what is important when purchasing property in the Keys.
Flood Insurance:
The buyer must determine the insurability of the property against
flood damage by seeking the advice of a qualified insurance agent.
Structures built before January 1, 1975 (pre-firm) are subject
to rules governing substantial and non-substantial improvements
to pre-firm structures which may
limit the reconstruction, rehabilitation or addition to the pre-firm
structure. Structures built after January 1, 1975 that have enclosures
below the Base Flood Elevation (BFE) are typically not habitable.
The existence of habitable space below the BFE may require demolition
or an increase in insurance premium. Buyers should contact the Monroe
County Federal Emergency Management Coordinator or the City of Key
West, City of Key Colony Beach, City of Layton, City of Islamorada
and City of Marathon to ascertain how these rules may impact on the
property of interest.
Coastal Barrier Resources System Act (CBRS):
Certain properties in Monroe County may be affected by the Federal
Coastal Barrier Resources System Act or proposed amendments. For
information contact the United States Department of the Interior,
the Monroe County Planning Department or your legal representative.
Property so designated is not eligible for federally subsidized
flood insurance as well as other benefits.
Land Use Disclosure:
Due to the unpredictable and constantly changing status of the municipal,
county and state regulations for property developments in Monroe
County each buyer should contact the appropriate local government
department(s) to determine how the subject property may be affected
by the Comprehensive Plan and the action necessary to ensure compliance
with the plan. Additionally, a property may be affected by restrictive
covenants in the form of deed restrictions, Homeowners Association
Rules & Restrictions, etc. Every Buyer needs to inquire about
them. They also should inquire into state and local governmental
zoning and land use regulations and restrictive covenants to determine
whether the subject property is in compliance with all state and
local government laws, codes and ordinances, and restrictive covenants.
Monroe County Growth Management Division, 305-289-2500
Key Colony Beach Building & Zoning, 305-289-0247
City of Key West, 305-295-1000
City of Layton, 305-664-4667
City of Islamorada 305-664-2345
City of Marathon, 305-289-2501
Monroe County Year 2010 Comprehensive Plan:
The use of the property may be affected by the Land Use Plan, enacted
September 15, 1986, revised January/1996, with subsequent revisions
due every five (5) years hence or the availability of utilities
and sewage disposal now or in the future. The transient rental
of single-family residences in I.S. districts has been questioned
by Monroe County and regulation by Local or State government may
restrict such rentals in certain areas. Properly functioning septic
tanks are the minimum permissible on site sewage disposal systems
(OSDS). An allocation ordinance exists which limits the number
of building permits issued for residential dwelling units. Prior
to signing a contract, seek legal counsel or consult with the Monroe
County Planning and Zoning Departments. Monroe County is an area
of State Critical Concern that heightens the degree of regulation
by the State of Florida.
City of Key West Land Use:
The City of Key West has debated the definition of vacation rentals
and implementation of legislation to regulate, license, permit
or prohibits within the City limits of Key West. If a Buyer is
considering renting their property they should discuss the status
of this issue with the Key West Planning Dept. to understand its
impacts on the Buyer's proposed use of the property.
Non-Conformities:
Structures and uses that do not conform to uses provided for in the
land use category that the property or use is located in are considered
non-conforming. Such uses and structures are currently allowed
to continue but they are not allowed to be expanded, enlarged or
continued if substantially destroyed (more than 50% of the value
of the structure). Zoning together with the uses provided there
under which do not conform to the future Land Use Designations
are considered non-conforming. Furthermore, non-conformities are
jeopardized if abandoned. Buyers should seek legal counsel or consult
with the Monroe County Planning and Zoning Department to determine
whether a property is non-conforming today or may be in the future.
Radon Gas:
Radon is a naturally occurring radioactive gas that, when it has
accumulated in a building in sufficient quantities, may present
health risks to persons who are exposed to it over time. Levels
of radon that exceed federal and state guidelines have been found
in buildings in Florida. Additional information regarding radon
and radon testing may be obtained from your county public health
unit. Pursuant to 404.056(8), Florida Statutes.
Energy Efficiency Rating:
The Purchaser may have the Energy Efficiency Rating of the building
determined at buyers expense by a person certified by the Department
of Community Affairs.
Concrete Disclosure:
Various concrete structures in the Keys have been found to contain
excessive levels of Chloride. This has caused a condition known
as spalling which results from the rusting and expansion of steel
rebar which reinforces the concrete.
Sewage Disclosure Form:
The City of Marathon and unincorporated Monroe County have taken
steps to upgrade to central sewer systems. For questions regarding
the timing of the upgrades or estimated hook-up fees, contact:
Monroe County Health Department
3333 Overseas Highway
Marathon, FL 33050
(305) 289-2450 -OR-City of Marathon
10045-55 Overseas Highway
Marathon, FL 33050
(305) 743-0033
Lead Base Paint Warning:
For homes, apartments or condominiums built prior to 1978. Every
purchaser of any interest in residential real property on which
a residential dwelling was built prior to 1978 is notified that
such property may present exposure to lead from lead-based paint
that may place young children at risk of developing lead poisoning.
Lead poisoning in young children may produce permanent neurological
damage, including learning disabilities, reduced intelligent quotient,
behavioral problems and impaired memory. Lead poisoning also poses
a particular risk to pregnant women. The seller of any interest
in residential real property is required to provide the buyer with
any information on lead-based paint hazards from risk assessments
or inspections in the seller’s possession and notify the
buyer of any known lead-based paint. A risk assessment or inspection
for possible lead-based paint hazards is reconverted prior to purchase
Homestead Exemption
New 2008 property tax Reforms:
In a January 2008 ballot measure, Florida voters approved
a constitutional amendment that introduced several changes to our state's
property tax system. The four changes may affect the amount of tax
you owe:
Increased Homestead Exemption: If you're currently
receiving a $25,000 homestead exemption on your property taxes,
you will automatically be upgraded to a $50,000 exemption this
year. If you are a homeowner and do not currently receive the exemption,
you may file your application in person along with a $15 late fee,
through mid-September.
Save Our Homes Portability Cap: You may now trasfer
up to $500,000 of your property tax cap to a new home when you
move. To take advantage of this benefit, you must file a Homestead
Exemption and Portability Application.
Tangible Personal Property Tax Exemption: If you're required to file a Tangible
Personal Property Tax Return, you're entitled to a $25,000 exemption on business
equipment.
Non-Homestead Cap: Beginning next year, those properties not eligible for a homestead
exemption may apply to receive a 10% cap on property tax increases.
Homestead Exemption Overview:
FILING PERIOD JANUARY 1 – MARCH 1
Florida law requires that application be made by March 1st to be
eligible for the $25,000 Homestead Exemption. Only new applicants
or those who had a change of residence need apply. Automatic renewals
are mailed in January each year.
In Florida, $25,000 of
the assessed value of your home is exempt from real estate taxes,
but you have to meet certain criteria to be eligible for the
exemption. First you much have the title or record to your property
as of January 1, and reside on the property. You have to be a
legal and permanent resident of Florida as of January 1. When
applying for the exemption status, bring along a copy of your
deed or tax bill, and a Florida county voters registration or
Declaration of Domicile. If you drive, you must also bring your
Florida driver's license and automobile registration. New applications
must be submitted in person at the appraiser's office, but renewals
may be done by mail. For further information, consult the County
Property Appraiser's Office.
Real Estate Taxes
All residents are subject to county taxes, but each
city or special district levies taxes within its boundaries.
City, special-district, and county taxes are combined in
one tax bill. Real estate taxes are assessed as of January
1 each year. They are due and payable on November 1 and become
delinquent if not paid before April 1 of the following year.
Florida law holds the taxpayer responsible for receiving
and paying tax bills in full. For additional information
contact the County Property Appraiser's Office.
Establishing Residency
To establish residency, you may register
to vote or file a Declaration of Domicile, which
is an affidavit available at the CountyCourthouse.
Filing one copy with the Circuit Court provides a
record of your intention to make Florida your home.
Simply moving to the State does not guarantee legal
residency. For more information contact the County's
Clerk of Circuit Court.
What is Homestead Exemption?
Florida Law entitles every person, who has legal or equitable
title to real estate and maintains it as his/her permanent residence,
to apply for a $25,000 homestead property tax exemption. A partial
exemption may apply if the ownership of the applicant is less than
100%.
Am I eligible to file?
You must meet the following requirements as of January 1st:
Have legal or beneficial title to the property, recorded
in the Official Records of County
Residency on the property
Be a permanent resident of the State of Florida
Be a United States citizen or possess a Permanent Residence Card
(green card)
When do I file?
The deadline to file an application for exemption is March
1st. Under Florida law, failure to file for any exemption by March
1st constitutes a waiver of the exemption privilege for the year.
Regular filing is January 2nd - March 1st.
Pre-filing for the coming year is March 2nd - December 31st.
How do I file?
Take copies of the required documentation to your Exemption
Department:Generally at the County or City Court House
Inspections-what to expect
Siding: Look for dents or buckling
Foundations: Look for cracks or water seepage
Exterior Brick: Look for cracked bricks or mortar pulling away from
bricks
Insulation: Look for condition, adequate rating for climate (the
higher the R value, the more effective the insulation is)
Doors and Windows: Look for loose or tight fits, condition of locks,
condition of weatherstripping
Roof: Look for age, conditions of flashing, pooling water, buckled
shingles, or loose gutters and downspouts
Ceilings, walls, and moldings. Look for loose pieces, dry wall that
is pulling away.
Porch/Deck: Loose railings or step, rot
Electrical: Look for condition of fuse box/circuit breakers, number
of outlets in each room.
Plumbing: Look for poor water pressure, banging pipes, rust spots
or corrosion that indicate leaks, sufficient insulation
Water Heater: Look for age, size adequate for house, speed of recovery,
energy rating.
Furnace/Air Conditioning: Look for age, energy rating. Furnaces are
rated by annual fuel utilization efficiency; the higher the rating,
the lower your fuel costs. However, other factors such as payback
period and other operating costs, such as electricity to operate
motors.
Garage: Look for exterior in good repair; condition of floor—cracks,
stains, etc.; condition of door mechanism.
Basement: Look for water leakage, musty smell.
Attic: Look for adequate ventilation, water leaks from roof.
Septic Tanks (if applicable): Adequate absorption field capacity
for the percolation rate in your area and the size of your family.
Driveways/Sidewalks: Look for cracks, heaving pavement, crumbling
near edges, stains.
www.REALTOR.org/realtormag Reprinted from REALTOR® Magazine Online
by permission of the NATIONAL ASSOCIATION OF REALTORS® . Copyright
2003. All rights reserved
