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Restrictive Covenants in Florida Contracts

In the News • Mar 24, 2021
post about Restrictive Covenants in Florida Contracts

Restrictive covenants in Florida contracts were front and center on March 17, 2021. The 4th DCA issued its opinion regarding a Broward County real estate commission dispute. If you are involved in Florida contract litigation , is your restrictive covenant valid or void?

Restrictive Covenants. Palm Beach’s 4th District Court of Appeal

Restrictive Covenants in Florida

Florida sells a lot of real estate. Houses, condos, warehouses are built, renovated and sold, and re-sold, hundreds of times. And while aspects of contract law are pretty clear in Florida, people may know less about restrictive covenants. Restrictive covenants are serious promises or limitations which one party agrees to. They may involve land or something very personal like services. Florida Restrictive Covenants can be thought of as rights which are granted to another. What if agree with everyone in your housing development not to build higher than 3 stories? In real estate law, sometimes that is referred to as a restriction that “runs with the land.” It can be passed down to future owners. It supposedly benefits your neighbors and it burdens your land or house. In the employment context, many of you know about non-competes. Non-competes are typically found in employment contracts. They restrict an employee from doing certain things, typically when they leave employment. Such as soliciting or accepting business from your former company’s clients when you leave. Or from working in the same field. Most of those restrictions in a Florida non-compete need to be reasonable as to duration (time) and geography (location). But what about a Florida real estate broker commission? To read this 4th District Court of Appeal opinion on a real estate contract restrictive covenant, CLICK HERE. This opinion is from the case of Rauch, Weaver, Norfleet, Kurtz & Co., Inc. v. AJP Pine Island Warehouse, Inc.

Real Estate Contracts in Florida

There is a Florida statute on restrictive covenants. It’s called Florida Statute 542.335. To read this restrictive covenant law for free, CLICK HERE. This statute was discussed and explained in the Rauch, Weaver case. We have previously blogged about specific performance in real estate contracts. We have also blogged about covenants regarding non-competes.