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Taxation & Estate Planning

: Rubin on Tax

2 WITNESS RULE FOR LEASES [FLORIDA]

By Charles Rubin

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In a recent Florida case, a landlord and tenant entered into a 10 year lease. Each signed the lease, but no witnesses signed. The landlord sought to void the lease because the signatures of the parties were not witnessed by two witnesses.

Fla.Stats. §689.01 reads in part "How real estate conveyed.--No estate or interest of freehold, or for a term of more than 1 year, or any uncertain interest of, in or out of any messuages, lands, tenements or hereditaments shall be created, made, granted, transferred or released in any other manner than by instrument in writing, signed in the presence of two subscribing witnesses by the party creating, making, granting, conveying, transferring or releasing such estate, interest, or term of more than 1 year, or by the party's lawfully authorized agent, unless by will and testament, or other testamentary appointment, duly made according to law; and no estate or interest, either of freehold, or of term of more than 1 year, or any uncertain interest of, in, to, or out of any messuages, lands, tenements or hereditaments, shall be assigned or surrendered unless it be by instrument signed in the presence of two subscribing witnesses by the party so assigning or surrendering, or by the party's lawfully authorized agent, or by the act and operation of law."

At first reading, there is no mention of a lease in the statute. However, since a lease is considered a transfer of an interest in land, the statute applies and leases for more than 1 year require two signatures.

The case does not make new law on this issue, but since it is a nonobvious issue, it bears mentioning, especially for those that don't practice regularly in the real estate area.

The case also held that the 2 witness requirement was not overridden by Fla.Stats. §608.4235, which authorizes a transfer of an interest in real property by a limited liability company on the signature of any member and makes no mention of required witnesses.

Skylake Insurance Agency, Inc. v. NMB Plaza, LLC, 3rd DCA, Case No. 3D07-454, October 28, 2009

Full post as published by Rubin on Tax on December 08, 2009 (boomark / email).

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