Real Estate – New Certificate of Use Ordinance
Categories: Buying Real Estate, Foreclosures, Real Estate News
hiIt has been almost a month since Miami-Dade County started enforcing the new Certificate of Use Ordinance on all foreclosed properties. The dust is settling and we are beginning to see the impact on property owners.
A new industry was created over night to mass-produce inspection reports and process Certificate of Use. Most of the companies that have contacted me to offer these services do not have State of Florida authorization to offer professional services and often not experienced providing code research and or inspection services. For our company this is the documentation we are requesting from CU consultants:
· Copy of State of Florida authorization to provide professional services for all companies.
· Copy of architect and/or engineer licenses qualifying companies or sole practitioners
· Copy of certificate of insurance for General Liability, Workers’ Comp. and Professional Liability ($500K min. limits)
· Copy of resumes of key persons highlighting experience in construction inspection or code research and or peer review.
· Copy of W-9
These criteria weeded out most of the companies that were formed over night to provide this service that is perceived as part of Dade County’s Stimulus Package.
The Certificate of Use process has added a minimum of $2000 to the cost of every foreclosed transaction. We are in the process of closing a few sales with these new expenses. I want to see if the banks are going to lump these expenses on the side of the buyer as part of closing expenses.
At this point we are already seeing about a six week delay on the transactions waiting for the CU process to be completed and filed. We have at least four transactions that are waiting for reports and at least 3 contracts that were rejected because a CU is not in place. In the next few months we will need to see if this ordinance is going to stop or slow down the recovery we are already seeing.
I have already heard from buyers who have told me that they are not buying in Dade County, because they don’t want to have government breathing down their throats about repairing code violations on the recently purchased properties. So the final financial impact is not yet known – we just know that it is costing at least $2000 more to sell a property in Dade County and it is delaying closings by at least 6 weeks. Next month I will be able to say more.
Hi
Answering about your request for documentation
1-An Architect or a Professional Engineer does not need authorization from the State of Florida to provide services. He only needs his license
2-Your requirement for license is OK
3-Professional liability is a protection for the practitioner,so nobody needs to ask for that because the complains are going to run against the licensed, besides Real Estate agents dont nothing to do with that, maybe title companies..could be, general liability is for damages in property or individuals…the property is almost always damaged and nobody lives there at the time of the inspection. Worker compensation is the same, it is required by the State for more than 4 employees and is the State the one that can enforce that, nobody else
4-An architect or an Engineer does not have to prove his qualifications. he has a license and he already proved that
5- W-9 is OK, pay taxes is mandatory
Miami is one of the best cities in this country and in the world, so properties are going to be sold
Ordinance 08-133 is a great tool to avoid hidden code violations, zoning violation, repairs, etc
Real Estate agents, banks, etc, are now enforced to serve the population
From your response you sound like the owner of one of the many over night companies that have been formed to offer Certificate of Use Inspections.
Per Section 481.219(2), Florida Statutes, a certificate of authorization shall be required for a corporation, limited liability company, partnership, or person practicing under a fictitious name, offering architectural services to the public jointly or separately.
The qualifying P.E. for a Certificate of Authorization MUST be a principle officer of the business organization. The term “principal officer(s) of the business organization” as used in Section 471.023(1), F.S., means the (a) President, Vice President, Secretary, or Treasurer of the Corporation who has management responsibilities in the corporation or LLC, as documented by the corporate charter of bylaws so long as such documentation provides that such officer is empowered to bind the corporation or LLC in all of its activities which fall within the definition of the practice of engineering as that term is defined in Section 471.005(7), F.S.
Being an architect myself and past President of the Miami Chapter of the American Institute of Architects, I know about the requirements for offering professional services in the State of Florida. I also know that professional liability insurance is protection for the clients not the professional–it is the means for paying for errors and omissions. Filing a complain with the State does not pay for devalued properties caused by flawed reports about code violations and defect by incompetent individuals.
There are many problems with ordinance 2008-133 but two major problems are:
1. Unilicense and incompetend individuals providing such inspection services.
2. Those reports become permanent public records to be used by con men to extort property owners.
Ordinance 2008-133 is a bad ordinance for consumer, but a Financial Stimulus Ordinance for crooks.