A property survey is a sketch or map of a property showing its boundaries and other physical features. A survey reports will also show the relative location of a house, shed, other building and fences on the property, and it usually includes the position of any public or private easements. The survey will also show if there is any part of the property that is encroaching on a neighboring property or if the neighboring property is encroaching on the property that is being purchased. The report gives everyone involved in a land transfer a clear picture of exactly what is being purchased. In the U.S., property surveys must be done by a professional surveyor who is licensed in the state where the property is located.

For most closings, a survey is required to obtain title insurance. One common exception is for the purchase of an individual condominium unit. Mortgage lenders require a property survey before they will approve a loan. Even if a survey has been done in the past, lenders typically require a recent survey, generally done within six months of the closing date. An up-to-date property survey will reflect any recent changes to the property, such as the addition of a fence or driveway.

Some examples of title defects are:

• Construction liens
• The property’s address being misspelled in a deed conveying title
• A mortgage lien whose repayment hasn’t been recorded
• A deed which has been signed but hasn’t been properly recorded
• An easement that has not been properly recorded
• Unpaid property taxes
• A failure to transfer property rights to a former owner of the property
• A pending lawsuit before a court of law over ownership to the property

Title Insurance is a form of indemnity insurance, which insures an owner or lender against financial loss from title defects, liens, encumbrances or other problems with the title of real property. It also covers losses and damage suffered if the title is unmarketable (or unsellable) or if there is no right of access to the land. The amount of coverage of your policy is usually the sale price of the property. Although most insurance policies are a contract where the insurer indemnifies or reimburses another party against possible specific types of loss at a future date (such as an accident or death), title insurance generally insures against losses caused by title problems that have occurred in past events. Title insurance is issued by a title insurance company.

Most individuals’ biggest asset is their home, and that asset needs to be protected. Title insurance will protect the owner of property if there is a problem with the title after the closing date. The underwriter or insurance company will defend against a lawsuit attacking the title of the property or reimburse the owner for the actual monetary loss caused by the defect, up to the dollar amount of insurance provided by the policy. Before closing and before a title policy is issued, a title insurance company will search the public records to develop and document the chain of title and to detect known claims against, or defects in, the title to the subject property. If there are known defects, the title company will require that the defects be cured prior to the closing. Title insurance will provide you with peace of mind that your largest investment will be safe.

That depends. The contract for the sale and purchase of the real property should state who is responsible for the premium

Florida title insurance rates are set by Florida statute based on the purchase price. There are also some credits given to the buyer of title insurance in certain circumstances. Please contact our office for a quote.

That depends. There are many ways to hold title in Florida: tenants in common, tenants by the entirety, life estates, joint tenants with a right of survivorship, in trust, or hold title in an entity like a corporation, partnership or a limited liability partnership. Consult with one of our real estate attorneys for more information and to learn what options works best for you.

A closing agent is a neutral person or business that coordinates a transaction for the sale or re-finance of a property. It is the job of the closing agent to prepare the settlement statement, ensure that all documents and records are properly executed, that appropriate original documents are recorded in the county where the property is located, and makes sure that the proceeds are properly disbursed pursuant to the contract and applicable law. Closing agents will work with a lender if the property is being financed to arrange for all documents needed for the closing.

The closing of a real estate transaction is the point in time when the sale is ready to be completed. The closing is usually held at the closing agent’s office, At the Closing, the final documents pertaining to the sale/purchase of a piece of property are reviewed by the buyer, seller and other interested parties, the documents are signed as required and funds disbursed.

That Depends. There are many factors that come into play when trying to close a sale. A reputable Title or Real Estate Attorney’s office can close a file quickly if the title is clear and the buyer is purchasing the property cash, however, every file is unique.

The HUD-1 or Settlement Statement is a standard form in use in the United States, which itemizes services and fees charged to the buyer and seller in a transaction by the lender, brokers, closing agent and other third parties. The HUD-1 form is regulated by the Department of Housing and Urban Development.

Closing costs are the costs related to the purchase, sale or re-finance of a property. Closing costs vary depending on type of transactions. Common closing costs are as follows:

– Broker/real estate agent related
– Commission
– Broker processing fees
– Lender related

• Survey cost
• Appraisal cost
• Credit report fee
• Flood certification fee
• Origination charge
• Homeowner’s insurance
• Flood insurance
• Reserve payments for taxes and insurance
• Mortgage insurance
• Lender title insurance premium
• Lender title insurance endorsements

– Title related

• Title insurance premium
• Settlement charges
• Estoppel fee
• Tax and lien search
• Title search
• Legal fees
• Recording fees
• Documentary stamps/transfer tax

That depends. Lender-related fees, if applicable, are paid by the buyer/borrower. The contract usually details who pays for which costs

You will always need to bring valid identification with you to closing. The most common types of identification accepted are driver’s license or passport. For other items that may be needed at closing, please ask the attorney that is handling your file.

Many people may be present at a closing such as: the buyer, the buyer’s sales associate, the seller (or builder), the seller’s sales associate, the lender or lender’s representative, and the closing agent. Although it is not uncommon to have both parties close in a joint meeting, with today’s busy schedules, many closings occur separately.

If I cannot be present on the scheduled day of closing, what happens then?

If you cannot be present on the scheduled day of closing, please let our office know so that we can accommodate your schedule. We can try to schedule an appointment to have the documents signed before closing so that the transaction does not get delayed. If you are out of town at the time of closing, or are not able to travel to the closing, we can assist you by coordinating a mail-away closing so that the documents to be signed and delivered by mail.

The Foreign Investment in Real Property Tax Act (FIRPTA) is a tax imposed on the amount realized from the sale of real property owned by a foreign seller. 

There are exceptions to this tax-withholding requirement. Given the complexities of tax laws, the buyer and seller should consult with a tax specialist to determine the exact withholding amount or to determine if an exemption to the FIRPTA requirement applies. 

FIRPTA applies when the seller is a foreign person, as defined by FIRPTA. However, a foreign buyer may want to consult with a tax professional if that buyer’s intent is to sell the property, as then FIRPTA may apply.

As there are several exemptions available, foreign sellers are wise to speak to their tax professional as early in the sales process as possible to know their options to avoid money being held in escrow. 

Three-day cancellation period

Under Florida law a buyer can cancel a transaction within three days from the time the buyer executes the contract and receives a current copy of the condominium documents (the declaration of condominium, articles of incorporation, bylaws, rules of the association, most recent year-end financial information and the frequently asked questions and answers document).

The three-day period is calculated in business days. It excludes Saturdays, Sundays and legal holidays. This period cannot be waived or amended. (Section 718.503(2), Florida Statutes.)

• The seller of a residential condominium resale does not have a set amount of time in which to provide condominium documents to the buyer. However, if the statutory nondeveloper disclosure selected for use in the purchase and sale agreement (often found in the condominium rider) is the clause that begins “This agreement is voidable by buyer … ,” the buyer has three business days from the time he or she receives the documents to void the contract. This means that it is in the best interest of the seller to provide the documents as soon as possible.
• Tenant rentals and foreclosure
• The new owner of a foreclosed property does not have to honor an existing lease agreement with a tenant. The new owner can give an existing tenant 30 days’ notice to vacate the property, assume the terms of the existing lease or negotiate a new lease with the existing tenant. A tenant evicted by the new owner must sue the former owner for a refund of the security deposit.(Section 83.561, Florida Statutes)
• Security deposits
• A Florida condominium association or homeowners association may collect a security deposit from a prospective tenant in addition to the security deposit collected by the landlord — if the association’s governing documents provide the authority to do so. The purpose of that security deposit would be to protect the association’s common elements and common area. 
• In the case of condominium associations, the deposit is capped at one month’s rent. 
• For homeowners associations, there is no cap on the amount of security deposit that an association may collect; however, the amount is subject to the

Association documents 

• When purchasing a condominium, the buyer is entitled to the following documents, to be prepared at the seller’s expense: declaration of condominium, articles of incorporation, bylaws and rules, a copy of the most recent year-end financial information and frequently asked questions and answers document. The documents may list restrictions regarding pets, vehicles, parking, rentals and noise as well as requirements for flooring in condominiums, investor limits and many other issues that could affect the purchase.
• The seller of residential condo resale does not have a set amount of time in which to provide condominium documents to the buyer. However, note that the buyer’s three-day right to cancel begins once the buyer has received all the documents, so it is in the best interest of the seller to provide these documents as soon as possible.
• When purchasing a property subject to an HOA, the buyer is entitled to receive a disclosure summary only, not specific association documents like a purchaser of a condominium. This summary includes information such as mandatory membership and any assessments regarding the property.
• The salesperson should advise the buyer to consult with an attorney knowledgeable about community association law to review the documents and the effect of any restrictions on the buyer’s purchase.  

Tenants’ rights and landlord responsibilities

If a condominium owner is more than 90 days’ delinquent in paying assessments on a unit, the condominium association can suspend the rights of that owner – and any tenant for that unit – to use common aspects of association property until their fees are paid in full. The suspensions cannot apply to limited common elements intended to be used only by that unit, common elements needed to access the unit, utility services provided to the unit, parking spaces, or elevators. (Section 718. 303(4), Florida Statutes). 

Additionally, both condominium associations and HOAs can make written demand of a tenant to submit rental payments to the association until the delinquent balance has been paid in full.  (Sections 718.116(11) and 720.3085(8), Florida Statutes)

Rental limits

A condominium association may adopt an amendment prohibiting owners from renting their units, or placing special limits on rentals. This amendment would apply only to unit owners who consent to the amendments and those who buy units after the amendment’s effective date. Rental limits might include rental terms or specifying or limiting the number of times an owner can rent their unit during a specified time. (Section 718.110(13), Florida Statutes.

For HOAs, except as otherwise provided in this paragraph, any governing document, or amendment to a governing document, that is enacted after July 1, 2021, and that prohibits or regulates rental agreements applies only to a parcel owner who acquires title to the parcel after the effective date of the governing document or amendment, or to a parcel owner who consents, individually or through a representative, to the governing document or amendment. (See Section 720.306(h), Florida Statutes, for more details on this law).