The Buying Process
There are a number of differences between the buying process in the UK and the USA. Buyers have a high degree of protection under U.S. and Florida state law
and, from a legal point of view, Florida is often regarded as one of the
safest places in which to buy a home. It is always advisable, however, to
take the usual precautions regarding deposits and obtaining proper title.
We can help guide you through the buying process together with our
colleagues in Orlando and, if you want, introduce you to professional US
service providers (including mortgage brokers, lawyers, bankers, and
insurance and title companies).
Real Estate Agents
In Florida, Real Estate Agents are regulated by law and must be
licensed. Licensees must complete the required education, pass the license
exam and undergo continuous professional development. The
Florida Real Estate Commission, which operates within the Department of
Business & Professional Regulation, oversees the profession.The Contract
When buying a
home, the contract sets out the legal description
of the property; the purchase price; the terms of payment; the time limit
within which it must be accepted by the seller; and the terms of financing.
The contract will also stipulate that the seller proves he owns title to the
property; give a closing (completion) date; and include any restrictions on the use of
the home and any special clauses. Most home sales in Florida are completed
without the direct involvement of a lawyer, although it is advisable to
obtain legal advice before paying any money or signing anything.
Deposits
When buying a new home, it is usual to pay a holding deposit (usually
around $1000) which allows you 15 days to change your mind before signing
the purchase contract. Then you pay a second deposit (usually 5 – 10 per
cent of the purchase price) when you sign the contract, with the balance
payable either in stages or at the closing.
Completion
The final stage of buying your home is the closing, the date of which is
stated in the contract. This involves signing of the deed of sale;
transferring legal ownership; and payment of the balance due, including
closing costs. Both the buyer and seller will be given a closing statement
(HUD-l form) approved by the U.S. Department of Housing and Urban
Development which sets out all the costs and fees for which they are
responsible. The closing agent checks that all the conditions in the
preliminary contract have been fulfilled, collects any fees or taxes due,
witnesses the signing of the deed and arranges for its registration in the
name of the new owner at the local property register.
