A Legal Checklist for Buying Property in Florida
While buying property in Florida can be both personally and financially rewarding, it also comes with financial and legal risks. As a result, it is important to ensure that you are making an informed buying decision—and it is equally important (if not more so) to ensure that you are protecting yourself along the way.
10 Important Steps in the Real Estate Buying Process
How can you ensure that you are making an informed decision and protect yourself during the buying process? Here is a legal checklist for buying property in Florida:
#1: Hire a Qualified Real Estate Inspector
Any time you are considering a piece of property, it is important to hire a qualified real estate inspector to examine the property and provide insights based on his or her expertise. While an inspector won’t necessarily be able to identify all of the issues with the property (the inspector can only assess what he or she can see), an inspector will be able to identify many types of issues that may warrant further inquiry, a reduction in price or consideration of a different property.
#2: Thoroughly Review the Real Estate Inspector’s Report
Once you receive a report from your real estate inspector, you should review it thoroughly. Take the time to go over each page of the report in detail. If you have questions, follow up with your inspector to get the clarification you need.
#3: Order a Title Search
When buying property in Florida, it is important to make sure that the seller actually owns the property you are interested in purchasing. It is also important to make sure you know if there are any claims against the property or any encumbrances that might restrict your ability to use the property as you desire. While these types of issues might seem unlikely, they are more common than you might think. Ordering a title search will provide insight into many of these issues.
#4: Research Your Options for Title Insurance
While a title search can uncover many types of issues related to the ownership of a piece of real estate, just like an inspection, a title search won’t necessarily uncover everything you need to know. This is where title insurance comes into play. Even if your lender doesn’t require it (and most lenders do), you will want to consider purchasing title insurance to protect yourself in the event that an unexpected issue arises in the future.
#5: Review the Purchase Contract
If you decide that you want to move forward after reviewing your inspector’s report and ordering a title search, one of the next major steps in the process will be to review the purchase contract for the property. Generally speaking, this is not something that you should try to do on your own. As the Florida Bar explains:
“The best time to retain a lawyer is before the purchase contract is signed, as it’s much easier for your lawyer to protect your interest at the contract stage.”
While you absolutely should read the purchase contract yourself, you should also hire a real estate lawyer to review it for you. An experienced lawyer will be able to identify any unusual terms or unreasonable risks and help you make an informed decision about how to address them.
#6: Negotiate Contingencies and Other Necessary Protections Into the Purchase Contract
Depending on what you’ve uncovered this far, it may be necessary to negotiate various contingencies and/or other protections into the purchase contract for the property. Here too, you will want to rely on your lawyer’s advice and representation. You may need to negotiate contractual protections for a variety of reasons; and, if you don’t, you could find yourself forced to buy a property you no longer want or in an untenable situation post-closing.
#7: Make Sure You Understand All of the Terms of Your Financing and Insurance Coverage
If you will be financing your purchase, it will be important to make sure you understand the terms of your financing agreement as well. Even if you have no intention of defaulting on your loan, it will be important for you to know what might happen (and what legal rights you have) in the event that you find yourself unable to pay.
Likewise, you will want to carefully review the terms of your insurance coverage as well. This is especially true in Florida, where property damage from hurricanes and tropical storms is a very real concern. Wind, rain, inundation and other storm-related casualty risks can all require different types of coverage.
#8: Review Any Applicable Covenants, Codes and Restrictions (CC&Rs)
If the property is subject to any covenants, codes and restrictions (CC&Rs), you will want to review these as well. Once again, the goal is to ensure that you are making a fully informed buying decision.
#9: Sign the Purchase Contract Once You Are Prepared to Move Forward
Once you’ve done your due diligence and decided that you are prepared to move forward, it’s time to sign the purchase contract. This will start the clock ticking for any contingencies you have negotiated—so it is important to remain focused and diligent at this stage.
#10: Ask Questions (and Get Answers) Before You Close
As you make your way toward closing, it will be important to ask any questions you may have—and to make sure you get real answers. This is your last chance to protect yourself before the property becomes yours. Your lawyer will be able to assist here as well, whether by answering your questions directly or tracking down the answers you need.
This checklist is not comprehensive. While this checklist is intended to be informative, it is not a substitute for legal advice. If you are considering buying property in Florida and have questions about the legal considerations involved, we encourage you to contact us for more information.
Speak with a Florida Real Estate Lawyer at Douglas Law Firm
Are you considering buying property in Florida? If so, we encourage you to contact us for more information. To speak with a Florida real estate lawyer at Douglas Law Firm, please call 800-705-5457 or tell us how we can help online today.