United States » The Purchase Process

Once you have found your property usually 10% of the purchase price is due as a deposit on the signature of the sales contract. If you are buying a new-build property payment will be set by the construction company.

A title company will check the title of the property for you and all other documentation associated with your purchase. Once formalities on the paperwork are complete a lender will release funds directly to the Title Company to complete the purchase.

A Notary Public is also required to notarize the documents as a party completely independent of the bank/lender.

An offer to buy is usually made through the seller's property broker. There is no "subject to contract" period clause in Florida - you either sign a contract at the beginning or you do not, so beware of signing any forms without your lawyer being present, as any you do sign will form a binding agreement.

Once agreement is reached, a purchase and sale contract is prepared for signature. An "earnest money deposit" (approximately 10%) is normally required at the time of execution and paid into an escrow account. If the buyer withdraws, the vendor will retain the deposit. Next the documents necessary to convey the property are drafted, a review is made by the insurers, along with a "title commitment", and a closing statement is prepared listing all financial obligations.

After the buyer transmits the funds to the title closing agency's escrow account, the documents are signed at closing (completion), and financial obligations are settled.

The documents are recorded and the title policies are issued following the closing. The original deeds are returned to you after being recorded at the local county court.

Legal Costs

In Florida, lawyers are not generally used for property transactions. The legalities are taken care of by title companies, which charge a set fee from $150 to $300. But you may feel a lawyer is necessary. Legal fees are not significantly more expensive and you are unlikely to pay more than $600 for a medium-sized property.

Title Insurance

This is necessary when buying a property in Florida. It protects you from financial loss if problems develop regarding the rights to ownership of your property. It also pays the cost of defending any claim against you. It costs about 1% of the property price, although this may vary.