US Property : Buying a Home in Florida

Steps in a home purchase

Here are the steps involved in purchasing a Florida home:

1. A non-corporate seller normally lists the property with a broker who advertises the property with the "Multiple Listing Service" and with “in house” agents. You should assume that any brokers or agents you meet at an "open house" are acting in the interests of the seller or as transactional agents only. You may want to engage a buyer's agent paid by the seller, before viewing. A buyer’s agent is independent and can show you the widest range of available properties. A “earnest money deposit” must be agreed between the parties. This is normally 10% of the purchase price. The buyer may provide his own purchase agreement to the seller. 
2. The corporate seller’s real estate broker provides a purchase agreement, and the seller will normally require on signing a 20% deposit. Just as with non-corporate sellers, If you breach the contract, the seller normally keeps this deposit, and depending on the contract terms, any other deposits you may have contracted to pay later. Beware of simply signing the agreement as it will be legally binding. Whether dealing with a corporate or non-corporate, there is no “standard contract” as generally is the case in the U.K. Before signing anything, take legal advice. 
3. You may obtain finance through a U.S. or U.K. lenders. A seller’s affiliated lender may offer a cap on or contribution to your closing costs, a furniture package, or other benefits. You should still consider using an independent U.S. or U.K. lender. In any instance, you should seek to include a mortgage indemnity clause in your contract so that if you cannot get a mortgage after a good faith effort, you are released from the contract. 
4. If you seek finance, the lender may need an appraisal of the property, a credit report and work history from you, as well as title evidence from the seller. If there is no finance required, closing may happen within a month. You should protect your investment with an appraisal, professional home inspection, termite inspection, boundary survey, and all applicable insurances. 
5. After researching the title, the closing agents prepare the documents necessary to convey the property including a title commitment and a settlement statement listing all financial obligations. Your own lawyer should review these documents to determine whether you are getting good title, what you are paying in closing fees, what your title insurance will and won’t insure, and other details. 
6. After the transfer of funds to the closing agent's escrow account, you will sign the closing documents (e.g. mortgage, etc.) here in the U.K. before a notary in most instances and you will then return them for closing. Subject to the terms of the contract, the seller customarily pays the costs associated with delivering title to you. Most of your closing costs are related to any loan and other expenses. You will pay approximately 4-5 percent of the purchase price towards closing costs when you use a lender or 2-3 percent when you are a cash purchaser. 
7. Following closing, the local county court records the documents and the title company issues the final title policies. You should verify that any exceptions to the insurance policy are removed. The title company returns the original deed to you approximately 90 days after closing.

Buying a property in Florida is an involved and potentially stressful undertaking. With our dual expertise in U.K. and U.S. legal matters, Bennetts can help you through the process and protect your interests.