The Florida Reclaimed Land Grab & Ownership of Submerged Lots in St. Pete

Watch out when purchasing prime waterfront property along Florida’s coast. The Florida reclaimed land grab is a phenomenon resulting from lots being submerged or reclaimed after rising sea levels, storms, and disasters such as hurricanes. Participators in this “land grab” have appeared on all sides — from the government and investors to real estate companies and criminals.

For the past three years, an ongoing case in downtown St. Petersburg has been underway, as the true ownership of submerged lots and land underneath the boat docks is debated.

What does the Florida reclaimed land grab mean for sellers, agents, buyers, and lenders?

It means you better have a good title insurance agent. If you plan to purchase prime waterfront property in Florida, know that your ownership rights may be ripped right out from underneath of you and leave you with the loss of hundreds of thousand of dollars.

Your main concerns are fraudulent deals, hidden easements, property rights, and eminent domain seizures.

Is it safe to buy waterfront property in Florida?

Even if there are statutes for eminent domain in Florida, the average homeowner may not be able to put up a good enough fight. For this reason, it’s safest to avoid purchasing Florida waterfront property without first consulting a title insurance agent who is knowledgeable about the problem and can conduct a deep title search.

A real estate agent must be careful when selling in this environment so as not to open up a can of worms by misrepresenting the listing to buyers and sellers and inciting big lawsuits with massive financial consequences. You could get sued and lose your good reputation as a business. To avoid doing this, it’s important to do a bit of background research by talking with a title insurance agent who knows more about the situation.

Will eminent domain affect my Florida waterfront property?

It’s not uncommon for eminent domain seizures to take place across South Florida. There are various reasons the government takes ownership of reclaimed land and submerged lots to include assuring safety after storms or to facilitate the construction of public spaces for education and medical purposes (schools and hospitals).

It’s important to find a title insurance agent who knows more about the trends of eminent domain in the area where you plan to purchase the property. There are also statutes that may apply to you to prevent an eminent domain seizure.

Does the Florida reclaimed land grab affect the market?

The reclaimed land grab in Florida has a huge impact on the market in some places. This is because some investors are purchasing submerged lots and selling them off at a 2000 percent profit! In addition, a high occurrence of fraudulent deals occurs with submerged lots, and you need to understand what you’re getting yourself into.

In the city of St. Petersburg, a trust quietly purchased a large number of submerged lots for $1,250, then sold off subdivided lots under people’s docks for sometimes up to $7,800 for each.

As a result of buying at high costs, property values may also increase for people nearby when homes are bought at a higher price, but this can also diminish the affordability of homes and increase fraud occurrence. With eminent domain, the frequency of seizure tends to increase when the market is up.

Are you buying or selling reclaimed Florida land or waterfront property? Bay National Title Company’s own Evan Grimm has assisted on the recent St. Pete submerged lot issue, and his closing team is prepared to conduct an adequate title search. Contact Bay Title for more information or to take advantage of Same Day Closing Disclosures today.

SOURCES:

Florida’s Waterfront Property Land Grab