Buying real estate in Florida
As is already known, many of the buyers here in Florida are from out of state. Be aware when purchasing as the process here may be different from where you are from.
Here in Florida, as a general rule, we don't do 'binders'. You don't put down a refundable 'binder' with an offer, the offer is accepted and then you go to contract. Here, in most cases, you make an offer ON A CONTRACT. Once that offer is accepted, signed by the seller, and returned to your agent, you are IN CONTRACT. You and the seller then have a legal duty to perform. Ask your Realtor to go over the contract with you so you fully understand the contents. Most times the contract will be a FAR (Florida Association of Realtors) prewritten contract or a FARBAR (Assoication of Realtors & Florida Association of Attorneys) contract which is also prewritten. Within both of these categories, there are different types of contracts. If you are not sure which is best to you or why your Realtor is using a particular type of contract, ASK. Contracts will have 'escape' clauses such as inspection clauses or financing clauses. If you do not understand anything on the contract, take it to your attorney BEFORE signing it.
As a general rule attorneys are not used in the transaction. This is changing slightly but not much since the contracts are prewritten and have withstood various challenges. Most of the work regarding the closing process is handled by the Title companies and Escrow company. (most times they are one and the same).
Generally (every case is different) the following will be the sellers closing costs:
1. Owners title insurance
2. Documentary stamps on the deed
3. Sales commissions
4. Loan or judgement payoffs
5. Overnight fees/e-mail
6. Property tax proration
7. Repairs, if any, as per contract
Generally the buyers closing cost would be:
1. Banks title insurance
2. Recording fees
3. Survey
4. Termite and home inspections
5. Intangible tax
6. Any additional fees associated with financing and prepaids
Any questions or concerns you may have should be addressed BEFORE signing the contract. Know what the process is in Florida BEFORE you move ahead in purchasing. Make sure your Realtor knows in advance that you are not familiar with the process so it can be explained to you. If you aren't comfortable with signing, DON'T sign until you are.
With all that said....HAPPY SHOPPING! People are buying and selling real estate in Florida daily, so it's not a difficult process. I just want you to be familiar with it and know it may not be like at 'home'.
RELAX, I'm working!
Cyd