These two words are so repulsive, state and federal governments have created laws and agencies to protect the consumer from such practices. As a matter of fact, in Florida, as in most states, before you can get a real estate license you must attend classes on real estate practices and law and pass a test, proving you’re knowledgeable and competent.

When I went through this training to get my real estate salesman license and again while attending mandatory classes for my Florida Broker’s License it was stressed on us the reason for such tough licensing standards in the state of Florida is because of our “slick land sales history,” the years of “Have I got a piece of land for you.”

These practices are unacceptable in the state of Florida and most other states and to protect the interests of their clients any real estate sales person or broker must go through intense training to avoid even the impression of the existence of “Caveat Emptor.”

Well, that’s what I was told.

Let me share the common denominator of my four most recent lease transactions

        Transaction #1 was negotiated here in Orlando, Florida

        Transaction #2 was negotiated in Jacksonville, Florida

        Transaction #3 was negotiated in Indianapolis, Indiana

        Transaction #4 was negotiated in Atlanta, Georgia

Each lease was cited as “Full Service.” By definition this is a lease that isall inclusive. With the exception of annual increases, all services should be included. No Extra Charges.

Each property had clauses in their lease that allowed the landlord to, annually charge the tenant twice for overages in operating expense and triple for increases in real estate taxes.

You see in a full service lease these overages are included in your full service rate, thus when your annual rental rate is increased per your lease agreement so are these charges because they have been quoted as a full service rate. Any additional billing or clauses that would cause any additional overage billings would mean that your lease is really less thanfull service. It might be “Modified Gross” or even a “Net Lease.”

This practice is blatantly unethical and unfortunately, now, it’s an acceptable practice in the industry. I was recently told by a broker, representing the owner “This practice might be unethical but it’s not illegal so we’re not doing anything wrong. The practice is standard in the market and we won’t back down.”

When I heard this I went ballistic and retorted. “You’re wrong, this is a form of “Caveat Emptor, let the buyer beware, and Real Estate law was established to make this practice illegal. Wrong wrong wrong wrong wrong.

I went home and immediately referred to my copy of Florida Real Estate Law, Chapter 475 and looked up “Caveat Emptor,” nothing. Then I looked under “Let the buyer beware,” nothing. Then I went to my computer and started researching other state real estate law, nothing. Caveat Emptor wasn’t being addressed. You see over the years real estate law has evolved to the point where the assumption is made that through a fiduciary relationship the client will be protected. What happens if the client isn’t represented by a real estate broker? What happens if the client is represented by a broker who doesn’t specialize or hasn’t been trained properly?

There’s a major flaw in real estate law that needs to be fixed immediately.

Oh, by the way, making matters even worse here’s the “Catch 22” of “Caveat Emptor.” If I your broker makes you aware of the potential double and triple hits in the lease or any other potentially unethical practices being employed by the other party, it’s not longer considered in the category of “Let the buyer beware,” since I’ve now pointed the unethical practice, you’re no longer unaware.