Jupiter Florida Real Estate Broker

What is a PACE charge on a tax bill? This question just came up in the office. An agent was looking at a tax bill and it has a line item on it for a “FLORIDA PACE” in the non ad valorem assessments.

First, CLICK HERE to do the FAQ from the Palm Beach County Property Appraiser on PACE Assessments. Then CLICK HERE for the Palm Beach County information page.

PACE stands for Property Assessed Clean Energy. These are loans made by approved lenders AT 6-8% interest rate. The Palm Beach County Tax Collector collects the annual payments on these loans under the non ad valorem tax collection section of the tax bill and remits payment to the provider of the loan. These are often used by home owners to finance certain home improvements like new windows, an AC or solar panels and they run with the property as special assessments.

Now, the contracts that we Realtors use has a line item on it for which party will pay for this. The FAR/BAR As-Is Contract has a check box in paragraph 9(F) that:

If special assessments may be paid in installments (CHECK ONE): (a) Seller shall pay installments due prior to Closing and Buyer shall pay installments due after Closing. Installments prepaid or due for the year of Closing shall be prorated. (b) Seller shall pay the assessment(s) in full prior to or at the time of Closing. IF NEITHER BOX IS CHECKED, THEN OPTION (a) SHALL BE DEEMED SELECTED.

So, Buyer/Sellers and Realtors BE CAREFUL. Public body special assessments are something which we think of as being for a paved road or a sewer line extension in places like Jupiter Farms but the property this came up on is located in central Jupiter. AND, I was told that there is an argument to be made as to IF the language of the contract noted above would apply to a PACE charge. Toward this there IS a special rider to the contract for PACE charges like THIS ONE that spells out who is going to pay for this. Sellers this IS something which adversely affects the value and its not readily observable to a Buyer and thus it must be disclosed to a potential Buyer.

BTW, these liens are recorded in the pubic record in the full amount due, the annual interest rate, and the annual payments that the tax collector will place on the tax bill. This lien will also specify if it does, or does not, need to be paid off or collected upon the sale of the property.

This Grande Cayman or stack 5, unit at 221 Ocean Grande is located on the 3rd floor (of 8) in the 221 of Condo 2 building which is the southeast building in the Ocean Grande development.

THE big thing for this community is that they allow up to 2 large dogs. To see other buildings along the Jupiter Beach that allow pets take a look at this page for the list I made up.

Jupiter Ocean Grande is a newer, luxurious community of 4 oceanfront condominium buildings located in Jupiter, Florida. Built in 2001 the 4 buildings consist of 138 units with 7 different floor plans. Jupiter Ocean Grande has 24 hour manned security, a stunning pool, 2 lighted Tru tennis courts, a fitness center, social room, billiards room and cabanas available for purchase with a shower, bathroom and small refrigerator. Up to 2 pets are permitted, but commercial pick up trucks are restricted. Each condominium has 2 interior parking spaces, and most have several balconies with stunning views. Conveniently located with a walkway to the beach, Jupiter Ocean Grande has it all.

How does the “force majeure” provision in the Florida Realtors/Florida Bar “As Is” contract work now that Hurricane Dorian has interrupted some transactions? Meaning “superior force” in Latin, it outlines how a buyer and seller will move forward.
ORLANDO, Fla. – How does the “force majeure” provision in the Florida Realtors/Florida Bar “As Is” contract work now that a hurricane has interrupted some transactions? Meaning “superior force” in Latin, force majeure outlines how a buyer and seller will move forward.

“When hurricanes impact real estate transactions, many Realtors scramble to locate casualty and bad weather provisions,” says Florida Realtors Associate General Counsel Joel Maxson. “The short inventory below provides an overview of key provisions in the Florida Realtors/Florida Bar “AS IS” Residential Contract for Sale and Purchase revised in June of 2019, along with one reference to the casualty provision contained in the Florida Residential Landlord and Tenant Act.”

Section 18(G) Force Majeure
This is an automatic extension that comes into play when a dramatic event prevents a party’s performance or closing from happening. It takes an unusual and unplanned event to trigger this “Force Majeure” clause, as you can see from a few of the examples given, such as, hurricanes, acts of God and acts of terrorism. Once the clause is triggered, though, certain time periods (including the closing date, if applicable) will be extended for a reasonable time up to 7 days after the force majeure no longer prevents performance. Parties should pay attention to the time in relation to the closing date, though, since either party may terminate the contract by delivering a written notice if force majeure continues to prevent performance more than 30 days beyond the closing date.
Section 18(L) Access to Property to Conduct Appraisals, Inspections, and Walk-Through
After a hurricane passes over a property, a buyer often wants to take another look at the property, regardless of whether the buyer is still in the inspection period. This clause generally favors the buyer’s request, as it provides that “Seller shall, upon reasonable notice, provide utilities service and access to Property for appraisals and inspections, including a walk-through (or follow-up walk-through if necessary) prior to Closing.”
Section 18(M) Risk of Loss
If the buyer or seller discover casualty damage from the hurricane, this clause describes the rights and obligations of each party. If the cost to restore the property does not exceed 1.5 percent of the purchase price (this cost includes the cost of pruning or removing damaged trees), then the cost is a seller obligation. If the restoration isn’t complete prior to closing, the seller will escrow a sum equal to 125 percent of the estimated cost to complete the restoration. If the cost of restoration exceeds 1.5 percent of the purchase price, then the buyer has the option to either take the property along with 1.5 percent of the purchase price, or receive a refund of the deposit, releasing buyer and seller from all further obligations under the contract.
Section 83.63, Florida Statutes (Casualty Damage)
This brief section simply provides that if rented residential premises are damaged or destroyed “so that the enjoyment of the premises is substantially impaired, the tenant may terminate the rental agreement and immediately vacate the premises.” This section continues to present a second scenario whereby a tenant may “vacate the part of the premises rendered unusable by the casualty, in which case the tenant’s liability for rent shall be reduced by the fair rental value of that part of the premises damaged or destroyed.”
Have questions? Call Florida Realtors Legal Hotline, a free member benefit.

Force majeure provisions are often overlooked when the sun is shining and deals are closing without incident, but it’s helpful to know where they are, so you can get to them quickly when the winds are blowing,” says Maxson.

© 2019 Florida Realtors®