Common Disputes in Florida Commercial Real Estate Deals — and How to Avoid Them
Florida’s Booming Market Comes with High Stakes
Florida’s commercial real estate market continues to surge — from Miami to Tampa to West Palm Beach, investors are expanding portfolios and developers are breaking new ground. But opportunity often comes with risk.
In a fast-paced market, contract gaps, unclear disclosures, or compliance oversights can turn a profitable deal into costly litigation.
Understanding the most common disputes — and how to prevent them — is key to protecting your investments and maintaining trust in a competitive market.
Frequent Sources of Dispute
Breach of Contract
From purchase and sale agreements to commercial leases, missed deliverables, unclear terms, or delayed payments are among the top triggers of real estate litigation. Every clause matters — ambiguous language leaves room for dispute.
Failure to Disclose Defects
Under Florida law, sellers must disclose all known material defects — including latent issues like environmental hazards or water intrusion.
Failure to do so can lead to lawsuits long after closing.
Zoning, Permitting, and Land Use Conflicts
Changes in zoning or overlooked land-use restrictions can derail entire projects.
Due diligence and pre-approval planning are essential to avoid value loss or operational setbacks.
Partner and Co-Owner Disputes
Commercial investments often involve multiple owners or investors. Misalignment on management, profit-sharing, or exit strategies is a common cause of litigation — and reputational strain.
Boundary and Title Disputes
Unclear boundaries, easements, or encroachments can halt a closing or lead to expensive title claims. Comprehensive title reviews protect both buyers and lenders.
Best Practices to Prevent Litigation
Draft Precise Contracts
Define roles, timelines, and payment structures clearly. Include strong dispute resolution clauses to guide resolution before conflict escalates.
Thorough Due Diligence
Inspect thoroughly, confirm zoning, and document all disclosures. Proactive transparency strengthens deals and limits exposure.
Transparent Communication
Keep all stakeholders informed. Summarize every key discussion or change in writing. Documentation builds accountability and trust.
Prompt Problem-Solving
Address small issues early through mediation or alternative dispute resolution (ADR) — both encouraged under Florida law for efficiency and cost savings.
Recordkeeping and Compliance
Retain all contracts, disclosures, and correspondence for at least five years. This isn’t just best practice — it’s a safeguard under Florida’s real estate statutes.
Actionable Steps for 2025 and Beyond
- Audit past and current contracts for clarity and compliance.
- Adopt a deal compliance checklist covering due diligence, documentation, and risk mitigation.
- Educate your teams and clients through training or shared resources.
- Engage counsel early to spot and resolve potential risks before they escalate.
Key Takeaway
Success in Florida’s commercial real estate market depends on clarity, compliance, and communication. By documenting thoroughly, acting early, and partnering with experienced legal counsel, you reduce disputes and elevate your reputation as a trusted commercial advisor. At Almazan Law, we help developers, investors, and commercial partners protect what they build — with precision, foresight, and a focus on long-term value.