A residential transaction includes the sale of improved residential property of how many units or fewer?

In Florida, a residential transaction typically refers to the sale of improved residential property that is classified as "residential." According to Florida real estate law, improved residential properties consisting of four units or fewer are classified as residential property for the purposes of most real estate transactions, including residential transactions.

This classification is significant because it determines which laws, regulations, and practices apply to the sale, financing, and leasing of the property. Properties with five units or more are classified differently and fall under commercial properties or multifamily housing regulations, which have different requirements.

Understanding this distinction is essential for real estate professionals, as it affects not only how properties are marketed and sold but also the types of forms and disclosures that must be used. Thus, recognizing that a residential transaction in Florida generally pertains to properties consisting of four units or fewer is key to correctly navigating residential real estate transactions in the state.