Ronald S. Webster

One of the most common questions I receive from sellers who are upside down on their mortgage(s) is what a deficiency judgment is and whether or not it may apply to them if they sell at a short sale, offer a deed in lieu of foreclosure or are foreclosed upon. The answer is it can occur in any of these situations.

Land contracts, like New Coke, never caught on in Florida for a number of justifiable reasons. Quite often I am asked if the buyer can enter into a land contract or in some states referred to as an Agreement for Deed.

Land contracts are not generally utilized in Florida for four reasons.

1. The State of Florida views a land contract as a transfer of interest and therefore collects from the seller a documentary transfer tax on the property as if the property is sold, despite the fact the seller does not convey a deed.

Few people are really aware of how proper estate planning can minimize the bite that federal estate taxes and state inheritance taxes take from their estates. Everyone should be reasonably knowledgeable of the federal estate tax and the state inheritance tax; people need to know how to minimize these taxes and, where appropriate, how to eliminate these taxes altogether. In addition, people should be aware of when their estate will be subject to estate and inheritance taxes and how much of their estates will be affected.

If you have a principle residence or vacation home, an excellent opportunity to substantially reduce potential estate tax liability is through the use of an estate planning tool “The Qualified Personal Residence Trust.” Through the use of a QPRT, the IRS permits a homeowner to make a tremendously discounted gift of their residence to their children, while still retaining the long-term use of the property.

Florida homestead status is an important concept which appears in three different sections of the Florida State Constitution. First, obtaining homestead status on your property saves the homeowner on their real estate tax assessments. Secondly, obtaining homestead status caps the amount a homeowner's property can be reassessed annually. Thirdly, homestead status protects a homeowner with asset protection for his home against third party creditors.