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Archive for the ‘Gulf Oil Spill and Real Estate’ Category

The recently signed Distressed Condominium Relief Act of Florida has Wall Street and bulk investors diving  into the Florida condo market.

Florida  implented the act on July 1st and the result has been overwhelmingly successful, so far.   The first thing the act did was give condo associations the right to demand deliquent renters pay rents directly to the association.    Even more significant, the law eliminated developer liability.  Prior law defined a developer as  anyone who sold or leased more than 7 units in a condo in one year.   Under the old law, “Developers” faced potential unlimited liabilities for such things as construction warranties..

By removing the unlimited liabilty for bulk investors, major Wall Street firms, which represent billions in assets and capital, descended on South Florida and began gobbling up condo units in bulk.  “Since the law went into place, activity has been “off the charts”, said Peter Zaleswski, founder of Condo Vultures.   “We’re moving away from a situation where it’s 10 oe 20 units in a bulk buy, to one where it’s 100 or 200 or even 300 units,” Zalewski said.  “You have several Wall Street funds competing on the same projects.  It’s all because of the change in the new law.”

Good news for Florida homeowners and builders…Zalewski said the change has been drastic.  “I would challenge you to find one of the largest groups on Wall Street who’s not looking into South Florida right now.”  Zalewski predicted…”I would anticipate you see some huge numbers put on the board by the end of the year.”

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BP Pays Florida Realtors $16 Million

Monday, August 23, 2010 posted by Tommi Crow

ORLANDO, Fla., Aug. 23 /PRNewswire/ — Florida Realtors® and four other state Realtor organizations successfully negotiated with Kenneth Feinberg, administrator of the new Gulf Coast Claims Facility handling the British Petroleum (BP) Oil Spill Fund, for a special allocation for real estate professionals’ claims for loss of income or loss of sales due to the Gulf oil spill.

From the special allocation, $16 million is initially available to pay claims to real estate professionals in Florida. Along with other local businesses in the Gulf Coast states, real estate has experienced significant economic harm since the Deepwater Horizon oil spill.

“This is great news for Realtors and real estate professionals in Florida, as well as those in our neighboring Gulf Coast states, who are suffering from the loss of their livelihood because of the oil spill crisis,” said 2010 Florida Realtors President Wendell Davis, a broker with Watson Realty Corp. in Jacksonville. “Many real estate claims for loss of income due to the oil spill have been in limbo, leaving people with no way to pay their bills, take care of their families or keep their businesses going. Providing this special allocation is a positive, responsive action on Mr. Feinberg’s part — one that will help people move forward and reclaim their lives.”

Until now, some real estate claims related to lost sales and loss of income were not included in Feinberg’s protocol for payments from the $20 billion BP Gulf Coast Claims Fund. Representatives of Gulf Coast Realtor associations — Florida, Alabama, Mississippi, Louisiana and Texas — met several times with Feinberg to make the case that real estate brokers and agents have been financially harmed by the oil spill.

Each state Realtors organization will receive funds based on the estimated losses of individuals and brokerages resulting from cancelled sales contracts, loss of income and depressed market conditions following the BP oil spill. The allocation is available to all real estate licensees with active licenses at the time of the loss, not just Realtors.

Florida Realtors has contracted with Indiana-based NCA, an independent, national claims adjustment firm, to handle these claims and otherwise administer the funds; the other state Realtor groups in the Gulf Coast are also working with NCA. The state Realtor associations had to provide Feinberg with detailed documentation to request funds, including a timely, transparent and objective process for handling claims and for determining payments.

“Realtors in Florida build communities, and this allocation for real estate professionals will help them continue to do that,” said Davis. “This historic agreement between the real estate industry and the BP Fund is a model for public/private partnerships. It will help restore economic vitality to the Florida Panhandle, ensuring that a unique culture and way of life continues into the future.”

Florida Realtors®, formerly known as the Florida Association of Realtors®, serves as the voice for real estate in Florida. It provides programs, services, continuing education, research and legislative representation to its 115,000 members

Real Estate Back to Normal on the Gulf Coast

Wednesday, August 11, 2010 posted by Tommi Crow

On Wednesday, analysts at Keefe Bruyette & Woods advised clients that real estate values along the Gulf of Mexico “will likely not get hit any harder” due to the BP oil spill.

The analysts came to their final conclusion after walking the beaches on the coast, talking to local residents and meeting with the large regional banks.  “We barely found any oil at all on the shore or in the Gulf,” analysts said. “We walked away feeling that the hype surrounding the spill was overdone, but that significant economic issues still exist in the region.” is very happy to report this good news for all coastal property owners, brokers and residents.   Thank you for visiting our website!   If you’re looking for information about InfoTubes, InfoBoxes, Flat Fee MLS, uploads, Free Legal Forms and Contracts…you’ve found the right website.

Gulf Oil Spill Pounds Coastal Real Estate

Tuesday, June 29, 2010 posted by Tommi Crow

As we continue our coverage on the affects of the Gulf Oil Spill has on local real estate, we are sorry to report that we’ve seen no real improvement in the last week.  If anything, problems are increasing as tropical storms approach, booms and equipment are reaching the end of their life expectancy.  The only thing constant seems to be the continual flow of often ridiculous red tape, that prevents citizens from protecting themselves and their property. 

Tales from the front include:

Kevin Chiu, a researcher for Housing Predictor, warns:  “Housing analysts contend that the projected losses in housing value will top that of any oil disaster in the nation’s history and will send tens of thousands of additional homes into foreclosure as a result.”

Alabama real estate agent Linda Henderson reports…canceled sales and that the smell at times is so pungent that it drives people back inside their homes.  “I can tell you that things have pretty much dropped to dead,” said Ms Henderson.  “We were on track for our best year since Katrina.  This is just devastating-you can say that the spill killed the real estate recovery.”

Jack McCabe of McCabe Researcn and Consulting in Deerfield Beach, FL sums it up this way…”What the housing recession and the Great Recession couldn’t do to property values along the Gulf, this could easily accomplish.  It’s a knock out punch, plain and simple.”

There is an awful lot of real estate within 20 miles from the coastal beaches of Gulf states.   All forms of real estate, farms, office buildings, schools, government buildings, military installations, utility systems and homes are in peril. How much oil could come onshore and what the aftermath will be is entirely speculative at this point. If the oil spilling into the waters of the Gulf can’t be stopped and cleaned up before a major storm event, the devastation of the entire Gulf Coast region within at least a 20 mile distance will likely render it uninhabitable by humans. Who would want to live there, let alone buy or invest in property?

This raises the final question about BP’s oil spill:   Who will pay for the unintended loss of real estate value and the toll of human misery sure to come?  If one faces the facts as we are learning them about BP, it becomes almost a certainty that there isn’t enough money in their vast holdings to pay for the damages and losses from such an event.   The toll on human life and the economy might only be imagined as apocalyptic in scale.  The effect on the national economy, if not the global economy, is likely to follow.   The economic impact on the world, let alone the nation, is going to be staggering when, not if this event occurs.

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