Buying a House in Florida: Overview of the Process

Relocating to Florida? It's a popular choice. Here are some tips about unique aspects of buying a house in Florida. The process could differ significantly from whatever you've experienced in some other state or country.

Comparing Sizes of Florida Homes

Make sure you are comparing apples to apples when looking at houses. In Florida, houses are normally measured and advertised based on the livable area, basically meaning air-conditioned square footage.

Sometimes, however, the advertised size might include the total area, with space that is not air-conditioned, such as a balcony, garage, or porch. Check the county property appraiser's website to determine actual square footage.

Considerations When Buying Property Governed by a Homeowner's Association

One of your first questions should be whether the condominium, townhome, or single-family home you're interested in is within a deed-restricted community. This is quite common in Florida. If so, you'll need to learn not only about the property itself, but the restrictions, requirements and obligations applicable to the community as a whole—contained in the homeowner's association (HOA)'s "governing documents," including the declaration, articles of incorporation, bylaws, and rules and regulations.

As a homeowner in a deed-restricted community, you might face restrictions on everything from keeping pets to renting out your property. You will likely need to pay periodic (usually monthly) dues and possibly special assessments.

You'll also want to know what the community association takes care of (such as landscaping and stormwater runoff systems, which they might be required by state law to handle), and what you will be personally responsible for (perhaps walls you share with neighbors, or air conditioners on the roof of the building).

Do not rely on your sellers, real estate agents, or other non-attorney third parties to explain the restrictions and obligations contained in these documents. Find an attorney experienced in the area of community association law.

The attorney can help you obtain the current governing documents in a timely fashion and review them before you sign the purchase contract. For more information, see these articles on Buying a New Home or One in a Development.

Special Considerations When Buying Oceanfront Property

Florida has an unusual amount of coastal land, and has passed various laws regarding its use. If you are buying oceanfront property, you'll want to look into these laws, which range from prohibitions on harvesting natural vegetation such as sea oats and sea grapes (Fla. Stat. §161.242) to a law against interfering with manatees and sea turtles, especially during nesting season. (Fla. Stat. § 379.2431.)

As of a 2018 state law (HB 631), you will own the beach up to where the sand becomes wet (the mean high-tide line). The rest is open to the public.

Estimating Your Likely Florida Property Taxes

Before buying a home, you'll want to know whether you can afford the property taxes. Don't rely on the amount of property taxes your seller currently pays in estimating what you'll pay. Also, check into whether you might be eligible for any Florida property tax breaks, which include exemptions for veterans, low-income seniors, disabled person, and more.

In Florida, there is a cap on the assessed value on the tax roll. The exact amount is adjusted annually. It's possible for the market value to increase at a higher rate than the cap, which thus protects homeowners from big jumps in property tax obligations. However, that cap does not protect new purchasers of property, who might experience a big jump in taxes after their first year of ownership.

If your Florida residence will be your permanent residence, you might be entitled to a tax exemption. The basic one is in the amount of $25,000 off the assessed value of the home. This comes from one of the "homestead" protections provided for in the Florida Constitution. (See Art VII, 6, Fla. Const. for this and other exemptions.) You must apply for the exemption each year.

Who Pays for Title Insurance in Florida

Title insurance protects your ownership of the property from the claims of third parties, including those relating to obligations of previous owners. The insurance is issued at closing; one policy protects the owner's interest and another protects the lender's interest, if you are taking out mortgage financing for the purchase.

Exactly who pays the premiums is assigned in the contract. However, it's customary in Miami-Dade and Broward counties for the buyer to choose the title company and pay for the title insurance. Often, in other counties, the parties will agree that the seller pays for the owner's policy and the buyer pays for the lender's policy. The rates are established by state law.

For more information, see Title Insurance: Why a Home Buyer Needs It.

Using the Standard Florida Purchase Contract

Real estate agents prepare contracts using one of a number of standard forms created by the Florida Association of Realtors and the Florida Bar Association. However, these forms are very basic, and assign certain responsibilities to each party as a default. Some riders (supplemental forms) and other forms are available for various situations, such as when an amendment is needed.

If the forms need to be amended or the terms and conditions of the agreement between the parties are different from the language in the form, you'd be wise to hire an attorney to make those changes.

Closing Process for a Florida Home Purchase

By custom in Florida, the closing, at which you formally assume ownership of the property, can take place at any location. Most often, an attorney or a title company, if it is issuing title, handles the closing. The closing agent prepares the forms, which include documents required by the buyer's lender (such as the promissory note and mortgage), standard documents used to transfer title (such as the deed), and so on.

The closing agent will explain to you the nature of each document, but cannot give you legal advice, unless the closing agent is also your attorney. If you do not understand what you will be signing, or if your transaction involves more than a standard warranty deed and note and mortgage from an institutional lender, be sure to hire an attorney to represent you.