A new bill was passed and signed into Real Estate law by Florida Governor Rick Scott becoming effective October 1st 2014. House Bill No. 489 – CHAPTER 2014-34 creates a new section 689.29, regarding disclosing subsurface rights.
GENERAL BILL by Judiciary Committee ; Business and Professional Regulation Subcommittee ; Civil Justice Subcommittee ; Spano
Subsurface Rights; Requires seller to provide prospective purchaser with subsurface rights disclosure summary when selling certain residential property; provides form for disclosure summary; requires disclosure summary to be included or incorporated by reference in contract for sale; defines “subsurface rights” & “seller.”
Definition of subsurface rights:
SUBSURFACE RIGHTS HAVE BEEN OR WILL BE SEVERED FROM THE TITLE TO REAL PROPERTY BY CONVEYANCE (DEED) OF THE SUBSURFACE RIGHTS FROM THE SELLER OR AN AFFILIATED OR RELATED ENTITY OR BY RESERVATION OF THE SUBSURFACE RIGHTS BY THE SELLER OR AN AFFILIATED OR RELATED ENTITY. WHEN SUBSURFACE RIGHTS ARE SEVERED FROM THE PROPERTY, THE OWNER OF THOSE RIGHTS MAY HAVE THE PERPETUAL RIGHT TO DRILL, MINE, EXPLORE, OR REMOVE ANY OF THE SUBSURFACE RESOURCES ON OR FROM THE PROPERTY EITHER DIRECTLY FROM THE SURFACE OF THE PROPERTY OR FROM A NEARBY LOCATION. SUBSURFACE RIGHTS MAY HAVE A MONETARY VALUE.
It is required that the purchaser initial and acknowledge receipt of the disclosure. Sellers should include the disclosure summary inclusive of the purchase and sale agreement. Should the disclosure not be included within the purchase & sale agreement it must then be incorporated and reference the disclosure summary in the contract. The statement must be in prominent language that the purchaser should review prior to contract execution.
Real Estate laws can be complex and ever changing. Having a Real Estate Lawyer in West Palm Beach on your side is essential to navigating the intricacies of Real Estate and can save you from frustrating and debilitating problems post the closing of your real property.