Buying property should be an exciting time in your life. However, there are several necessary components of a real estate closing in Florida that can quickly become daunting.
Purchasing property is likely one of the larger investments individuals make in their lives, and there are many moving parts necessary to ensure it is properly completed, void of delays, disputes, or additional costs.
It is important to understand that there are many steps that lead up to a real estate closing in Florida, and one misstep could disrupt the transaction or even lead to litigation.
3 Steps of a Real Estate Closing in Florida
The closing is the official exchange of property ownership, where the property is officially transferred from the seller to the buyer. It’s the closing of the transaction which has many moving parts and steps; but there are still many other things to be done from the time the contract is signed until the closing takes place.
Real Estate Closing Step #1: The Contract & Deposit
You’ve toured, evaluated, and decided that you want to purchase a property. A contract will then be drawn up, which the seller and the buyer both agree to and enter into. There are various contract types, such as the standard FAR/BAR “As Is” Contract, or you may have a customized contract drafted.
You’ve likely heard about the tedious fine print in contracts, which is why drafting and understanding the language and terms of the contract you enter into is very important for a smooth closing. When the contract is properly and fully executed, it will be enforceable.
Once the contract is drafted, agreed upon, and executed, the buyer will deposit funds into an escrow account. A real estate attorney can prove highly beneficial from the start as they are familiar with drafting contracts and can help guide you when depositing your earnest money.
Real Estate Closing Step #2: Property Appraisal & Inspection
A property appraisal is often required by many lenders to properly appraise the value of the property. The buyer will also usually have it inspected to ensure it is in good condition, such as checking that the roof, wiring, HVAC system, and other elements of the property are all functioning properly.
Real Estate Closing Step #3: Title Examination & Insurance Policies
Similar to with car sales, a title examination is another part of a real estate closing in Florida. It is needed to verify the chain of legal ownership. A missing deed or spotty title record could hinder the property’s sale.
Obtaining certain insurance policies are also typically required by the lender prior to a real estate closing. The most commonly required insurance policy is homeowners, but sometimes separate wind, hazard, or flood policies may also be required by a lender.
A Real Estate Attorney Can Help You Every Step of The Way
From deciding on the property you want to purchase and drafting contracts to inspections and closing, a real estate attorney can help you during each step of the transaction and beyond. Once you have closed on a property, you will still need to have the deed properly recorded in public records, which a real estate attorney can also assist with.
At Apfelbaum Law, we have helped numerous Florida buyers and sellers through the real estate closing process and can help you every step of the way, as well. Contact us today to get started.
