1668-1 Economics, Development, & Real Estate 1943-1993 s V.F. ' '211.;•:.":I --):--):2,' . .. — REAL ESTATE II v. .
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Prepared for applicants seeking occupational
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BOARD
Guy W. 8llis
Chairman
Harold L. Davis
Albert L. Kahn
DATA A. H. Pouell
C. B. i'. Read
Compiled by the Board of Real Estate
Examiners of MAXI BEACH, FLORIDA.
Edited by V. E. Wagstaff
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MIAMI BEACH , FLORIDA
MIAMI BEACH, Florida, is a municipality extending along
the Atlantic Ocean east of Miami. Approximately it is bounded on
the north by Normandy Beach, on the east by the Atlantic Ocean, on
the south by Bear 's Cu' and on the West by the Miami City limits ,
approximately centerin, 3iscayne Bay - the western boundary line
cutting through the Venetian Islands between San Marino and San
Marco Islands and Lying immediately west of Palm Island.
It has Mayor - Council - Manager form of government, and
has been entirely developed within about eighteen years.
SUBDIVISIONS
There are about 90 subdivisions and numerous re-subdivi-
sions within the city limits , with varying restrictions .
A subdivision is a plot of land which has been divided into
smaller parcels . A certified civil engineer is employed to survey,
plat and record on the records of the county each separate subdivi-
sion.
When subdivided, a number is given each block and each lot
in the block. This is a permanent identification, furnishing the
legal description of the property and does away with the necessity
of describing the property by metes and bounds .
In planning a subdivision it is necessary for the subdi-
vider to dedicate a certain portion of the area for necessary streets ,
alleys and public easements.
Each deed given to a purchaser of the smaller parcels gen-
erally carries certain restrictions, such as front building - line
• restrictions , side lot-line restrictions and frequently restrictions
as to the type of building to be placed thereon and the value thereof
and sometimes making it necessary for the proposed builder to submit
his plans for approval.
A resubdivision is where a number of lots or a block of
lots have been purchased' and the present owner desires to change the
size of the original lots or the frontage. It then becomes known by
a new name, but as a resubdivision of the original subdivision.
This change must be made in the same manner as that employed by the
original subdivider.
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ABSTRACT OF TITLE
An abstract of title is a transcript of the record of all
legal documents pertaining to a specific piece of property and gives
a complete history of this parcel from the very beginning or origi-
nal grant - this abstract being turned over to the new purchaser
with the deed. This facilitates the examination of the title by
the new purchaser or his attorney, but does not guarantee the title.
PUBLIC UTILITIES ON MIAMI BEACH
In two decades Miami Beach has been given practically every
improvement that present-day science provides.
TELEPHONE Telephone service is second to none. Same is supplied by
the Southern Bell Telephone Company and is available in
• all sections of Miami Beach. Service may be had by the
season or by the month.
GAS Gas is supplied by the Peoples Gas Company, manufactured
by a modern plant and piped through the various streets
to the homes and commercial buildings of Miami Beach.
The rates are determined by a regular meter system such
as used in other sections of the country.
ELECTRICITY is supplied by the Florida Power & Light Company, which
serves every quarter of Miami Beach, either by overhead
or conduit power lines, and is used for lighting, cook-
ing and power.
WATER The water supply of Miami Beach ranks very high in purity
(rating among the first fifteen cities in the U. S. ) in
comparison with the water supply of other cities in the
United States and is furnished from deep artesian wells
located about nine miles west of Miami. It is tested
daily, softened, filtered and chlorinated before being
delivered to the customer and is available throughout the
City. The charges are governed by a meter system furnish-
ed by the City. The charges are made monthly and bills
rendered by the City of Miami Beach.
SANITARY SEWER A sanitary sewer system extends through practically
all sections of Miami Beach, save for the following,
namely: Palm Island, Hibiscus Island, Star Island, the
Venetian Island group, Allison Island, Fi'sher Island,
Sunset Islands, part of the Isle of Normandy and parts of
Biscayne Point, Harding Townsite, and Altos Del Mar Nos.
1, 2 and 3. The system is a modern up-to-date one in
every respect. Sanitary sewage is now disposed of by
pumping into the Ocean near the Gulf Stream, one and one-
half miles offshore at 74th St.
Septic tanks are necessary in the various sections
where the municipal sanitary sewerage system does not
provide disposal.
GARBAGE & TRASH COLLECTIONS throughout Miami Beach are made at reg-
ular intervals during each week by a fleet of trucks owned
by the City of Miami Beach, and without charge to resi-
dents. It is then transferred to an incinerator in the
City of Miami and there disposed of.
VACANT LOTS are periodically cleaned and the grass cut. The service
is supplied by a contractor. Bids are furnished before a
contract is awarded, and the cost is paid by the City at
large .
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FILLED LAND ON MIAMI BEACH
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Before there was any development whatever on Miami Beach,
the map presented a very different picture than it does today. At
that time there was a narrow strip of land running all the way from
Government Cut to the present northern limits of Miami Beach. Back
of this there was an island, the southern end of which was approxi-
mately what is now Dade Boulevard.
All of the additional land now comprising Miami Beach was
filled in by pumping it up from the bottom of the Bay. This filled
land in some parts was quite shallow, while some of it was filled to
a depth of about 10 to 12 feet. In most parts of the filled land
it was possible to strike bedrock at a depth of from 10 to 15 feet.
Practically all of the buildings, residences and other
construction on the filled land is built on piling, which allows the
structure to rest on bedrock foundation. The type of construction
now used almost exclusively is steel reinforced concrete with con-
crete piling.
If buildings are properly constructed on piling of this
character, they are perfectly safe in the event there should be any
further settling of the filled land. Biscayne Point, Normandy Is-
land, La Gorce Island , and in fact, all of the other islands, are
all of filled land.
The work of filling this land was started about 1912 and
the last of it was completed about 1924 or 1925.
PUBLIC SCHOOL SYSTEM
The Miami Beach Public School system is composed of the
following schools :
Biscayne Elementary School -77th Street & Byron Avenue
1st through 4th grades.
North Beach Elementary School -711 Forty-first Street
1st through 6th grades.
Central Beach Elementary School -1420 Washington Avenue
Kindergarten through
6th grades.
South Beach Elementary School -335 Lenox Avenue
1st through 6th grades.
Ida M. Fisher Jr. High School -1420 Drexel Avenue
7th through 9th grades .
Miami Beach Sr. High School -1424 Drexel Avenue
10th through 12th grades.
District Lines for Elementary Schools
Biscayne Elementary School - East and North of 63rd Street
Bridge.
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North Beach School - Venetian Islands and center of Dade
Boulevard North. Northern Boundary
63rd Street Bridge West and South.
Central Beach Schools - Center of 8th Street to center of
Dade Boulevard. Star, Palm and
Hibiscus Islands.
South Beach School - Center of 8th Street South.
There is no tuition charge for non-residents. Text books are
supplied free.
Bus Transportation
Bus transportation is supplied all pupils living more than
two miles from the nearest appropriate school. Junjor and Senior
High School pupils living north of 37th Street are entitled to bus
transportation, and Elementary School pupils living North of 67th
Street.
The Miami Beach Public Schools are fully accredited and
graduates from t' - se schools are accepted without examination to
any institution graduates of any other high schools of the
country are admi
All to rs from kindergarten through the 12th grade hold
bachelor or master _egrees from accredited colleges.
Since completion of the above building program the housing
facilities of the Miami Beach Public Schools are approximately
5,000 pupils . In this connection it may be of interest to note the
enrollment over a period of years:
1924-25 691 1933-34 2,669
1925-26 1 ,164 1934-35 2,924
1926-27 1,300 1935-36 3,001
1927-28 1,442 1936-37 3,422
1928-29 1,529 1937-38 3,588
1929-30 1,697 1938-39 3,792
1930-31 1,683 1939-40 4,574
1931-32 1 ,870 1940-41 4,876
1932-33 2,275 1941-42 2,914
1942-43 4,192
Because of the unique shifting and changing of student
personnel the enrollment figures above do not mean that this number
of pupils were attending the Miami Beach Public Schools at one time,
as the peak attendance for the last year reached approximately 3,342.
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In addition to the public school enrollment, it is esti-
mated that last year approximately 1,800 pupils were attending
private schools.
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TAXES, FINANCE & GENERAL DATA
AREA
The territory within the City limits comprises 8 square
miles of land and 9 square miles of water.
Ocean frontage _.._........._ __...._ _..__._......_....__....._..__ 39,150 feet
Bay frontage _............_...__......_._...... ......_.._.........--__. 55,400 feet
' Island frontage . ..............._..........._.......,,_. -_.. 99,800 feet
Inland waterway frontage .._......... ._...._._._._ 84,750 feet
TOTAL INLAND WATER FRONTAGE ._____ 239,950 feet
PUBLIC PARKS
Five : Three fronting on the Ocean, all of which are
maintained by the City; also a number of small park
areas .
POPULATION
Year a- 1920 644
Year 1935 State Census 13,300
Winte: 1935 Estimated 50,000
Winter 1936 Estimated 55,000
Winter 1937 Estimated 60,000
Winter 1938 Estimated 65,000
Winter 1939 Estimated 70,000
Year around 1940 Federal
Census 28,012
Winter 1940 Estimated 75,000
Winter 1941 Estimated 85,000
Winter 1942-Estimated:
Visitors in Hotels 5490
tt " Apartments 9587
tt " Rooming Houses 3000
TOTAL ...._...._..... _. ... 18077
Permanent Residents 31000 49,077
Winter 1943 78,100 (Not includ-
ing Armed
Services )
ASSESSED VALUE OF REAL PROPERTY
1921 Land and Improvements _. ..•................$ 5,540,112.
1934 It It tt tt _._. _..__ 32,606,275.
1935 It " tt It
_..........._.._.__._. 39,561,661.
1936 tt It tt " _ _. 48,449,580.
1937 " It " if ........_.._-....__.. 53,858,040.
1938 " " tt tt • __. 58,086,610.
1939 If If if It .......-..._.....___ 60,487,860.
1940 " " " rt __.---.___._._._. 65,414,805.
1941 It tttt ft 73,337,965.
1942 It tt II tt _.,,__...M. ..__... 72,335,950.
1943 rt II tt tt 71,317,700.
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TAX COLLECTIONS
Tax collections have increased from the all-time low point
in 1931, when 71.41% was collected prior to delinquent sale to the
high point in 1940 when 99.7% was collected. Tax collections for
1934 were 99.2%, 1935 - 99.6%, 1936 - 99.1%, 1937 - 99.1%, 1938 -
99.2%, 1939 - 99.5%, 1940 - 99.7%, 1941 - 99.7%, 1942 - 99.4%.
On February 23rd, 1944, tax collections reached a new high
in the history of Miami Beach for this date, showing 93.86% collect-
ed. These taxes were due November 1st and tax sale does not take
place until the first Monday in July. On a proximately the same
date last year, tax collections were 85.42%.
TAX RATE
The amount of City and County Taxes on Miami Beach is
approximately from 2% to 2 % on a fair valuation.
RELIEF
Miami Beach has been fortunate during the depression in
not having to make any levy to provide funds for relief.
BONDED DEBT
June 1938 ....................___. _._...._ $5,909,000.
November 1939 ........... .........._...._........_..._ ... 5,776,000.
May 1940 _. . .._. ..........._._.... ......... 5,653,000.
November 1940 5,644,000.
November 1941 ..._...._. _.................... 5,577 ,000.
November 1942 ...... ... ............ 5,470,000.
November 1943 ...._......... .... _............_...._.... 5,395,000.
BUILDING PERMITS
1932 ..........._..._.........._...._............................._ _................__..... 1,445,128.
1933 ..._...........__ _._._..........._.......... 2,180,115.
1934 .._ _. 5,478,559.
1935 ........_.._........................ ...._.._.......... 9,487,34 5.
1936 ..._. _...._.___ 12,526,107.
1937 .................._..........._......._....._...._.__....._._._...._._..__._ 10,809,508.
1938 .._.._............................._......... _.. 7,075,806.
1939 11,406,914.
1940 _ _........... 15,960,535.
1941 ..._..._ _ _ _.... 9,305,052.
• 1942 590,009.
1943 _ 548,699.
LIVING ACCOMODATIONS - as of January 1944
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Residences - 3,694 OAR tYICIVILIAN
Apartments - 944 Comprising (family units ) 10,269 600 9669
Hotels - (rooms ) 19,900 12,500 7400
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NUMBER OF PERSONS ACCOMODATED:
3,694 residences at 5 persons each ...........w__ 35,000
10,269 apartment units at 3 persons each _. 29,000
19,900 hotel rooms at 12 persons each ...__._ 11,100
plus rooming houses _ _. 3,000
..... ...... _ 78,100
Add 10% for apartments over stores
garages , etc. 7,810
GRAND HOUSING TOTAL ...._..._........_..__.__._.... 85,910
REAL ESTATE COMMISSIONS
The scale of real estate commissions in use on Miami Beach
is that adopted by the Miami Beach Realty Board, and is as follows:
Commission on Sales
On all property within the City limits of Miami Beach, and
subdivisions adjacent, the minimum commission shall be 5% of the
total selling price, except acreage, which shall be 10%.
Commission on Exchanges
Where properties are exchanged or traded, a full commis-
, sion is charged on the value placed on each property in such trade
or exchange. Each party shall pay the full prescribed commission
on the parcel or parcels deeded to the other on the amount of the
value for which exchanged. EXAMPLE: "A" trades property valued at
$5,000. to "B" for property valued at $4,000. , receiving $1,000. in
cash with trade from "B". "A" pays commission on $5,000; "B" pays
commission on $4,000; to avoid disputes, this rule should be brought
to the attention of both principals at the beginning of negotiations.
Commission on Leases - Where Rents are Collected by Agent.
Section 1. Residences, apartments, or upper floor busi-
ness space - for securing tenant, a commission charge of 10% on the
first $500. and 5% on all amounts above $500. , collectible at time
of signing lease. Where the term is longer than one season or one
year, the brokerage on a succeeding season or seasons , year or
years , shall be at the same rate as for one season or year.
Section 2. A minimum charge of 5% for collection service
(in addition to the rental fee) including the collection of rent
and general care and supervision of the property.
Section 3. On rentals on month to month basis, excepting
houses and apartments during Winter Season, 25% of the first monthly
rental . Minimum commission $15.00.
Section 4. Minimum charges for collection and management
of apartments .
Apartment houses, 8 Units and up - 72;
Apartment houses , less than 8 units 10%
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Quite often a sale is made in which the seller accepts
part cash and a mortgage for the balance. This mortgage is known
as a Purchase Money Mortgage, and is accepted in lieu of cash in
the transaction.
DEFINITIONS & MISCELLANEOUS INFORMATION
A "REALTOR" is a member in good standing of a Real Estate
Board which is a member in good standing of the National Association
of Real Estate Boards.
The right of "EMINENT DOMAIN" is the right which a govern-
ment possesses of taking the property of its subjects for necessary
public uses at a fair valuation.
Deed restrictions, not inconsistent with existing laws,
can be placed in the original deed when property is subdivided and
these restrictions run with the title and become binding upon sub-
sequent purchasers .
Deed restrictions can be removed only in two ways: -
1st - When all owners in the sub-division in which
the property is located agree to the changing
of these deed restrictions. This consent
must be absolutely unanimous.
2nd - Suit can be brought in the proper court to re-
move or change deed restrictions. After hear-
. ing all testimony presented the court can re-
move or change the deed restrictions - if the
testimony presented convinces the court that
the greatest good to the greatest number of
owners in said subdivision will be served
thereby.
Zoning restrictions are imposed by the City Council and
have to do with use and occupancy.
Zoning restrictions are designed to segregate certain
classes of occupancy in certain designated districts and are design-
ed to protect the property owner from an occupancy that would be
detrimental to that type of occupancy for which the property was
originally intended.
Zoning restrictions do not take precedence over deed re-
strictions and even should the City Council zone a certain district
for a class of occupancy not permitted by the deed restrictions, the
property cannot be used for the purposes allowed in the zoning re-
strictions until the deed restrictions have been properly and legal-
ly removed.
A sales agreement, when properly signed, witnessed and
notarized, can be recorded in the county records.
A woman can convey real estate without the signature of
her husband only when she has been made a free dealer.
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A married man can not convey real estate without the sig-
nature of his wife.
In building construction it is very desirable that the
outside walls be furred. By this it is meant that the outer walls
should be lathed and plastered.
In conveying a furnished home, the furniture and personal
property should be conveyed by a bill of sale .
It is customary for an apartment house to furnish the
water used by the tenants.
In building construction, a spread footing foundation may
be safely used upon land that is not filled. Spread footing is a
foundation for a building consisting of reinforced concrete.
Palm trees may be successfully transplanted if they are
handled by experienced landscape gardeners with the proper equip-
ment.
If a broker or salesman shows a parcel of property to a
prospective purchaser it does not necessarily entitle the broker to
a claim for the commission if the property is subsequently sold to
the same prospect by another broker.
The Florida Real Estate Commission have held, on frequent
occasions, that the first broker bringing to the owner a signed
agreement to purchase, together with check, is entitled to the com-
mission.
With the climate as it is on Miami Beach, it is very de-
sirable that all side walls be furred.
While piling is used in practically every instance where
buildings are erected on filled land, spread footing can be used
safely on some of the original land on Miami Beach.
ESCROW FEE
Banks , Trust Companies , and Title Companies usually act
as escrow agents and it is customary that a fee be paid for services
rendered by the escrow agent. It is of great importance that this
fee be determined and the payment of same be definitely understood
and agreed to by all interested parties.
DUTY OF BROKER TO EMPLOYER
It is the duty of the broker to act in the best interest
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of his employer and to obtain the best price and terms for him. He
is bound not only to good faith but to reasonable diligence, and to
such skill as is ordinarily possessed by persons of common capacity
engaged in the same business. He must follow instructions and not
exceed his authority. He should reveal to his principal all informa-
tion that may come to him relating to the transaction under con-
sideration. Concealing facts material to the interests of his em-
ployer may amount to fraud. The broker, may, for example, know that
a prospective purchaser has actual need of his employer 's property.
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He should advise his employer of this in order that the owner may
get a better price or that he may not be moved by arguments to ac-
cept a lower price. The broker, however, is not obliged to violate
a confidence. If he knows that a prospective purchaser is not
acting for himself but for some one else and he is in honor bound
not to reveal the fact, he may withhold it, but he should apprise
his employer that he is dealing with an undisclosed principal.
FREEHOLDER
A Freeholder in the City of Miami Beach is one whose name
is shown on the deed to real property. When said property is owned
jointly, all persons whose names are shown on the deed are free-
holders and eligible to vote in a freeholder's election if properly
registered. Stockholders or officers of corporations owning Miami
Beach Real Estate are not Freeholders.
REPARIAN RIGHTS
All phases of right and title (of the upland owner) into
the water and land below high water mark. These rights vary and
depend, in many states and cities, upon local regulations. The
definition given is that agreed upon by the National Association of
Real Estate Boards and the National Institute of Real Estate Brokers.
FINANCIAL STATEMENT ON HOTEL PROPERTY
(a ) The Address
(b) Size of the plot
(c ) Size of the building
' (d) Number of rooms and baths
(e ) Date the property was built
• (f) Assessed valuation
(g) Taxes and insurance
(h) Gross income for past 2 years
(1 ) Operating expenses before deducting real estate
taxes.
(J ) Expenses should be deducted from the gross income
giving the operating profit. From these, real
estate taxes and other taxes are to be deducted
to give the net profit.
(k) Mortgages , term and details of same
(1 ) The average rate per room
(m) Average occupancy per room
FINANCIAL STATEMENT ON APARTMENT BUILDINGS
In preparing a financial statement on an Apartment Build-
ing instead of giving average occupancy per room, actual occupancy
per unit should be given for a period of two years , and a detailed
sales price per unit or per type of unit should be shown. Otherwise ,
the statement should contain the same as that given in a Hotel
Operating Statement.
FINANCIAI, STATEMENT ON COMMERCIAL OR STORE PROPERTY
On Commercial or Store property, in addition to the size
of the property, the store size should be given both as to frontage
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and depth, the term of each' individual lease and the lessee should
be shown. Likewise, the expiration date and an estimated mainte-
nance cost shown based on figures of three previous years. Other
than this, the Statement should contain the same facts as given in
the Hotel Operating Statement.
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ATTENTION REAL ESTATE BROKERS
The State law, as examined by the City Attorney, provides
that the Circuit Court may revoke or suspend the registration of
any broker when it is satisfied that said broker has employed or
continued in employment any salesman who has not been granted
registration, or has not surrendered his certificate for reissuance ,
or after his registration has been revoked, or during a suspension
thereof.
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