Property Buying & Selling in Florida

Buying or selling a home in Florida involves more than choosing the right house or listing price. The process requires understanding local market conditions, reviewing official property records, and completing key due diligence steps. These steps include inspections, title checks, and financing, all done before closing.

Understanding the Real Estate Market in Florida

Florida's real estate market shifts between buyer's markets and seller's markets, depending on housing supply and demand. These market conditions affect how homes are priced, how long they stay on the market, and how competitive offers need to be.

The table below identifies market conditions and the common strategies used by sellers and buyers in those conditions.

Buying a Property in Florida

The homebuying process in Florida typically follows these steps:

• Securing Financing: Buyers have to get pre-approved by a lender to secure the funds for financing. In competitive markets such as Orlando and Miami, a cash offer or strong preapproval boosts negotiating power.

• Finding the Right Home: Buyers consider price, flood zones, hurricane risks, insurance costs, school zones, commute times, and HOA rules in making a choice on a potential purchase.

• Reviewing Property Disclosures: Florida law requires sellers to disclose any known material defects that are not obvious.

• Checking Public Records: Buyers review the property deed, ownership history, lien records, and easements via the county clerk of court.

• Checking Building Permits: Potential buyers visit the local building department to verify if major work (such as additions, roof, HVAC) was permitted and inspected.

• Scheduling Inspections: The buyer hires a licensed inspector to check for potential hidden problems, such as structural, electrical, plumbing, termites, roof, and HVAC issues.

• Title Search and Insurance: The title company checks for liens, encumbrances, or unresolved claims. Buyers in Florida are often responsible for purchasing owner's title insurance (unless negotiated otherwise).

• Closing: Florida is an attorney-optional, escrow-required state. Closing is handled by a title company or real estate attorney, and all documents must be signed before funds transfer and the deed is recorded.

Selling a Property in Florida

Selling a property in Florida follows these steps:

• Preparation: Sellers review their property records to address potential clouds on the title. Also, many sellers consider repainting, staging, and basic repairs to increase buyer appeal.

• Listing: Sellers may hire a real estate agent to perform a comparative market analysis to set an accurate listing price.

• Contract Execution: Once a buyer is secured, the seller must cooperate with the buyer's due diligence, providing access for inspections and necessary disclosures (such as the mandatory property disclosure form).

• Title Commitment: Once under contract, a title agency will issue a “Title Commitment.” This document lists all requirements (like paying off a mortgage or resolving a judgment) that must be met to transfer the title.

• Conveyance: At closing, the seller signs the deed, officially transferring the title to the buyer. The closing agent uses the sale proceeds to satisfy all outstanding debts secured by the property before distributing the net funds to the seller.

Buying and Selling at the Same Time in Florida

Many Florida homeowners buy and sell simultaneously, especially when relocating within the state. However, timing and financing are the biggest challenges with coordinating this process.

One way in which homeowners execute this process is for them to make the offer for the purchase of the new home contingent on the successful closing of their current home sale. While this minimizes financial risk, it makes the offer less attractive to sellers in a seller's market.

Alternatively, the title company or closing agent may coordinate both closings on the same day, or back-to-back, using the funds from the sale to immediately fund the purchase.

Other options include:

• Sale-leaseback or Rent-back: The seller stays in the home briefly after closing by agreeing to pay a small fee to the new owner.

• Extended Closing: The seller negotiates a longer escrow to allow more time to buy.

• Bridge Loan: Temporary financing allows for purchasing a new home before the old one sells.

The advantages of buying and selling a property at the same time include:

• Avoids multiple moves or storage costs

• Allows use of sale proceeds for a new down payment

• Gives more control over timing

The disadvantages are:

• Stress of coordinating two closings

• Risk of one deal falling through

• Possibility of temporary housing needs

• Extra costs for financing or moving twice

Records to Review Before Buying or Selling

The following records should be reviewed before buying or selling a property in Florida:

• Deed History: Confirms legal ownership and prior transfers

• Title Report: Reveals liens, easements, and deed restrictions

• Lien Records: Check for mortgages, HOA liens, tax liens, or contractor claims

• Permit History: Confirms if structural work was legally approved and inspected

• Property Tax Records: Shows assessments, exemptions, and unpaid taxes

• HOA Documents: If applicable, review covenants (CC&Rs), rules, budgets, and reserve studies

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