For many foreign buyers have sufficient knowledge of complex real estate transactions and legal and tax issues before they invest in real estate in Florida is essential.

This is a step by step information for foreign buyers of real estate in Florida.

What follows is the usual sequence in real estate transactions in Florida.

* The offer to purchase. It is made by the Real Estate Buyer’s Agent “.
* Approval of the offer by the seller or a counter-offer and negotiate a new agreement.
* The inspection (optional)
* The financing process if necessary.
* Contact with banks and mortgage lenders.
* Search Property Title: This is the first step to a title insurance policy guarantees a clean title theme.
* Title insurance is usually through a company or a lawyer who specializes spent on real estate.
* The closure and the registration of the sale. This is due to the closure or representatives of the league title did. In general, the same company or attorney is responsible for the title search and title insurance.

We use the Florida Realtor Association forms (FAR) and FAR / BAR forms, the questions of normalization of the Florida Association of Realtors and the Florida Bar are. (Organization official prosecutors)

These contracts are included in general regarding the appointment of the parties, property, price, control procedures, where appropriate, the assessment of the conditions of payment. (That is, if a cash transaction or is conditioned on a mortgage)

There are “as is” contracts, which could reject the seller to repair the property after conducting an inspection, so that the buyer the option to cancel the contract if it is not the comfortable with the amount of compensation for inspection recommended.

The offer has a contract with the buyer and the seller presented by participating merchants.

It is customary to offer a good faith review of 1,000 U.S. dollars, which accompany the seriousness of the offer demonstrated.

The broker is obligated to present all offers to the seller.

The seller responds by either accepting the offer, reject it, or a money-cons. Usually when it does not respond within a specified period, the offer is not valid. A counter-offer will change the amount, or any other conditions contained in the original bid.

The negotiations in this manner, the end of a contract to be signed by both parties. We call it an “execution” of the contract.

Usually, these contracts from the buyer his deposit with a specific date completed, and it is customary to deposit 10% of the selling price but it could be more or less. This deposit is in an “escrow account” that a “trust account” is selected by the lawyer or firm by the buyer uses to be maintained.

It is common to have control (if approved) performed within 5 to 10 days.

If there is a sale of a new condo buyer is able to cancel the contract within 15 days of receipt of all required documents to the Condominium Association and their states announce financial and budget.

If it be the resale of the property (not new) of term 3 days instead of 15 days.

Commissions (although this can vary) usually 6% and are usually paid by the seller and will be exchanged between the seller and buyer agents.

When the sale was made by the applicant, without the cooperation of another broker, the applicant entitled to the full commission.

There is no advantage to the buyer to try to directly with the broker, since it does not pay to reduce the Commission by the seller, which is already required by the contract for the development of the property for sale.

The buyer is – in my opinion – a much better leverage when he try his own agents to which among thousands of options rather than have to choose to control a client to a particular property used where the Listing Agent.

Closing and commencement of trading are usually by a lawyer in the office or office of a title company did, and work two of them with the mortgage bank (if there is a cause) and to better coordinate all documents, records, third party payments and the use of money.

Residential property taxes paid each year are currently about 1.75% pa of the value or 2% of taxable value (that is the value the county has the discretion conferred on the property – and is generally less than market value). These percentages may change eventually, cities and counties their mileage (percentage of the assessed value is multiplied to obtain the amount of tax) increase. Foreign buyers can not to this exemption, which reduces the taxable value of $ 50,000 for the tax calculation, and is designed for homeowners who have had the property of their permanent resident leave reserved.

Buyers are spending variables – in the case of a cash purchase, including title insurance, registration and tuition fees and all other costs, they vary between a total of 0.80% and 1.0% of the purchase price.

In the case of financing of the purchase by a mortgage all the costs of the loan to be added.

It will tax of 0.55% (as of the loan value) on the mortgage, examination fees, and surcharges that banks and mortgage banks will be charged.

Outside the lower pay “points” by the bank interest rates, mortgage costs could total in this case between 2.0% and 3.0%.

Let me explain the “points”. For example, a customer wants $ 100,000 loan at a fixed rate for 30 years. The bank offers a fixed interest rate of 5% per year. However, if the borrower wants to lower the interest rate, the bank could offer him a stake of 4.75%, for example, and in return, the bank the first $ 1,000 (1% of the loan amount, or load a page), as a tax. Sometimes the bank can offer such a $ 2,000 (equivalent to 2% of the loan amount, 2 points) and lower the interest rate to 4.50%. It must be calculated for the borrower if it is to his advantage to take one of these offers, or just go with the 5%. This is how long will depend on the duration of the loan if he expected the full amount 30 years ago, or any other consideration that justify payment of “points” paid in advance.

For the seller it is a fee of 0.70% levied in all cases, be different cooler by the prosecutor or the title company.

Mortgage companies and banks require when dealing with foreign buyers a greater deposit, which was in the past about 20% to 30%.

Currently, and due to new events, it could be between 30% and 50%.

To get the documents for a foreign buyer, a mortgage required is typical:

Bank References

Bank statements.

Reference letter of credit by others