US Property: Buying a Home in Florida

Consider this before signing a contract

1. How should you hold title? In your own name with someone else as a joint tenant, joint tenants with right of survivorship, tenants in common, or through the use of other legal vehicles such as trusts or companies? The way you hold title can potentially save your family thousands of pounds in estate or inheritance taxes

2. Do you understand the tax implications? As a U.K. buyer, you are considered a "nonresident alien",and are not in the same position as a U.S. citizen or resident alien. We can help you to assess your general exposure to various taxes and work with your U.S. and/or U.K. accountants.

3. What does the contract really say? There is no “contract” until both parties have signed the purchase agreement. We explain the terms and conditions so that you understand the implications of the contract. Many times it is necessary to have a knowledge of relevant State and Federal law to understand why a Seller includes certain language in a contract and also so as to be able to fully advise you of your rights arising outside of the contract. We assist in drafting and/or negotiating the contract to ensure that it does not unfairly favour the seller.

4. Should other professionals be involved? It is often in your interests to hire a home inspector, appraiser (valuer), termite inspector, or other professional to help protect your interests.

5. What deadlines will exist? The contract may include deadlines for deposit payments, inspections, mortgage approvals, the delivery of disclosure or closing documents, and other matters. Sellers may for example require buyers to apply for a mortgage at an early date and it is important to seek to comply wherever possible to avoid breaching the contract. We can assist you in meeting contract deadlines as well as requiring the seller to likewise comply.

6. Who will review the closing documents? Having a closing agent does not mean that you have a legal adviser to assist you in your purchase. Closing agents generally represent the seller or the party who chooses them and their role is limited. Closing agents and lenders may prepare the final closing documents quickly and mistakes do happen. We have seen many errors including the transfer of the wrong property, underinsuring title insurance, failing to require sellers to pay their share of closing costs, etc. Without your own lawyer there will be no independent professional to review the closing documents. Within our review, we examine the exceptions to the title insurance policy to ensure the broadest possible coverage. We seek to protect your interests.

7. Do you need a Florida will or trust? The answer to this is yes. Florida estate planning documents contain clauses which meet the different requirements of the Florida law and its courts. To simplify what would otherwise be a complex and expensive process, included in our charges is the preparation of a Florida will or revocable living trust addressing the unique needs of U.K. residents. Our wills and trusts documents are drafted so that they will not affect your U.K. will. Click here to read more about our Florida wills and trusts.