Florida Rent-to-Own Lease Agreement

Requirement to Record: While options are not legally required to be recorded to be enforceable between the original parties, recording is necessary to establish legal protection to the optionee against third parties.^[1]

Expiration: No specific statue addresses the expiration of constructive notice. Therefore, it expires when the option itself expires.

Maximum Term: State law requires that options vest or terminate no later than 21 years after the death of an individual then alive; or within 90 years after its creation.^[2]

No Duration: If an option does not specify a valid term, it is invalid.^[2]

Signing Requirements: An option to purchase real estate must be in writing and signed by the seller.^[3]

1. Landlord’s Name and Address – The lease must include the name and contact information of the landlord or other point of contact for the lease.^[4]

2. Lead-Based Paint Disclosure & EPA Pamphlet – Federal law requires landlords to complete and provide to a tenant prior to occupancy.^[5]

3. Radon Disclosure – The following must be mentioned in the lease:^[6]

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 health department.

4. Security Deposit Disclosure (conditional) – If there is a security deposit, the following must be mentioned in the lease (plus a security deposit receipt):^[7]

YOUR LEASE REQUIRES PAYMENT OF CERTAIN DEPOSITS. THE LANDLORD MAY TRANSFER ADVANCE RENTS TO THE LANDLORD’S ACCOUNT AS THEY ARE DUE AND WITHOUT NOTICE. WHEN YOU MOVE OUT, YOU MUST GIVE THE LANDLORD YOUR NEW ADDRESS SO THAT THE LANDLORD CAN SEND YOU NOTICES REGARDING YOUR DEPOSIT. THE LANDLORD MUST MAIL YOU NOTICE, WITHIN 30 DAYS AFTER YOU MOVE OUT, OF THE LANDLORD’S INTENT TO IMPOSE A CLAIM AGAINST THE DEPOSIT. IF YOU DO NOT REPLY TO THE LANDLORD STATING YOUR OBJECTION TO THE CLAIM WITHIN 15 DAYS AFTER RECEIPT OF THE LANDLORD’S NOTICE, THE LANDLORD WILL COLLECT THE CLAIM AND MUST MAIL YOU THE REMAINING DEPOSIT, IF ANY. IF THE LANDLORD FAILS TO TIMELY MAIL YOU NOTICE, THE LANDLORD MUST RETURN THE DEPOSIT BUT MAY LATER FILE A LAWSUIT AGAINST YOU FOR DAMAGES. IF YOU FAIL TO TIMELY OBJECT TO A CLAIM, THE LANDLORD MAY COLLECT FROM THE DEPOSIT, BUT YOU MAY LATER FILE A LAWSUIT CLAIMING A REFUND. YOU SHOULD ATTEMPT TO INFORMALLY RESOLVE ANY DISPUTE BEFORE FILING A LAWSUIT. GENERALLY, THE PARTY IN WHOSE FAVOR A JUDGMENT IS RENDERED WILL BE AWARDED COSTS AND ATTORNEY FEES PAYABLE BY THE LOSING PARTY. THIS DISCLOSURE IS BASIC. PLEASE REFER TO PART II OF CHAPTER 83, FLORIDA STATUTES, TO DETERMINE YOUR LEGAL RIGHTS AND OBLIGATIONS.

1. Coastline Disclosure Form (conditional) – If a property is located on the coast or oceanfront, it must be disclosed that the area is subject to erosion and federal and state regulations.^[8]

2. Condominium Disclosure Form (conditional) – If a property is located in a condominium community, this disclosure must be given to the buyer along with the charter or articles of the condominium.^[9]

3. Homeowner’s Assoc. Disclosure Form (conditional) – Required for property located in a homeowner’s association or community.^[10]

4. Lead-Based Paint Pamphlet (conditional) – Gives general information about lead-based paint for properties built before 1978.^[11]

5. Property Tax Disclosure Summary (required) – Sellers must provide a statement notifying potential buyers that property taxes may increase and that they can contact an appraiser for more information if they so wish.^[12] This summary is not included in the standard property disclosure form, and the following should be included in the purchase agreement:

PROPERTY TAX
DISCLOSURE SUMMARY

BUYER SHOULD NOT RELY ON THE SELLER’S CURRENT PROPERTY TAXES AS THE AMOUNT OF PROPERTY TAXES THAT THE BUYER MAY BE OBLIGATED TO PAY IN THE YEAR SUBSEQUENT TO PURCHASE. A CHANGE OF OWNERSHIP OR PROPERTY IMPROVEMENTS TRIGGERS REASSESSMENTS OF THE PROPERTY THAT COULD RESULT IN HIGHER PROPERTY TAXES. IF YOU HAVE ANY QUESTIONS CONCERNING VALUATION, CONTACT THE COUNTY PROPERTY APPRAISER’S OFFICE FOR INFORMATION.

6. Radon Gas Disclosure (required) – It is required that there be notification provided on at least one document, form, or application executed at the time of or before a contract for sale and purchase of any building.^[13] This is included the Seller’s Property Disclosure Form.

7. Seller’s Property Disclosure Form (required) – A seller of a property is required to disclose facts materially affecting the value or desirability of the property (which are not readily observable and are not known to the buyer).^[14]