Buying a Home

Buying a home is an exciting milestone, but it can also be a complex and challenging process in Ormond Beach’s dynamic real estate market. At Florida Foreclosure Defense Law Firm, P.A., our experienced Ormond Beach lawyers are ready to guide you through every step, from reviewing contracts to addressing potential title issues. We understand that each transaction is unique, and we take pride in providing personalized guidance designed to protect your interests. Whether you are a first-time buyer or looking to expand your property portfolio, we will help ensure a smooth transition to homeownership. Our goal is to safeguard your rights, mitigate risks, and clarify key legal documents, so you can feel confident moving forward. By partnering with us, you gain access to a legal team dedicated to clear communication and efficient representation. Call us today at (877) 667-1211 to schedule your Free Consultation and begin your successful home-buying journey.

Making an Offer  

When planning to buy a home in Florida, formulating a clearly defined offer is one of the earliest critical steps. Florida real estate transactions often use standardized forms promulgated by the Florida Realtors and The Florida Bar, commonly known as the “AS IS” Residential Contract for Sale and Purchase or the Standard Residential Contract for Sale and Purchase. Each form includes detailed provisions regarding the property’s condition, inspection periods, financing contingencies, closing costs, and requirements for effective acceptance of an offer. Deciding which version to use can significantly shape the negotiation process.

Because Florida property taxes can change substantially after a sale, buyers should examine the seller’s current tax bill with caution. Homestead exemptions reduce taxes for primary residences, but when a property changes hands, the tax assessment may reset to a higher market-based level. Florida’s Save Our Homes provision may apply once the buyer qualifies for homestead status, but any existing cap in place for the seller will not automatically transfer at the same level. Buyers need to factor in these variables to avoid unexpected increases in property taxes after purchase.

Conducting research into comparable sales (“comps”) in the neighborhood is also advisable. Reviewing local property appraisers’ websites and recent sales data can help confirm whether the listed price is aligned with market realities. In competitive market conditions, buyers may choose to offer above the asking price, especially if they believe multiple offers are likely. Conversely, in a buyer-friendly market or if the property has notable defects, offering below the listed price could be appropriate. Regardless of the market condition, shaping an offer with local conditions in mind often results in a more compelling proposal for sellers.

It is also prudent to account for Florida-specific closing costs. Documents entitled to documentary stamp taxes (“doc stamps”) vary, but generally, Florida imposes a documentary stamp tax on real estate deeds as well as possible additional doc stamps on promissory notes. Certain real estate finance transactions are also subject to intangible taxes. While traditional customs in some counties call for the seller to cover the owner’s title policy and doc stamps on the deed, in other areas the buyer may pay these costs. Because local norms differ, you can negotiate these expenses within the terms of the contract.

Buyers should further anticipate any community-specific charges. Many Florida communities have homeowners’ associations (HOAs), which collect monthly or annual assessments to cover amenities such as security, pools, maintenance, or landscaping. In addition, some municipalities include Community Development District (CDD) fees. Planned gated communities or country club neighborhoods sometimes require separate membership fees. Budgeting for these community costs, as well as for services like water, electricity, trash collection, and internet—each of which might require deposit payments—can help buyers determine the maximum purchase price they are comfortable offering.

After drafting an offer, the seller may respond by accepting, rejecting, or making a counteroffer. Common changes in a counteroffer include shifting the purchase price, altering the earnest money deposit amount, modifying closing cost allocations, or adjusting inspection and financing contingency timelines. In Florida, the earnest money deposit (often referred to as an “escrow deposit”) is typically delivered shortly after the contract is executed, though timing is negotiable. Carefully reviewing any counteroffer terms before agreeing will help buyers ensure that they remain consistent with both personal goals and budgetary constraints. Once the parties finalize all terms, it is time to move on to the main contract phase. A lawyer in Ormond Beach can provide guidance throughout this process to help protect your interests.

The Purchase and Sale Agreement  

A well-prepared Purchase and Sale Agreement is the foundation of any Florida real estate deal. The Florida Realtors/Florida Bar contracts typically outline the following elements:

• Description of the Property: The address, legal description, and any fixtures or personal property included in the transaction.
• Purchase Price and Financing: The total purchase price and how the buyer intends to finance the acquisition.
• Closing Date: A mutually agreed-upon date by which all final documents will be signed, and possession of the property will be transferred.
• Deposits and Escrow: The amount of earnest money deposit, deadlines for deposit delivery, and the identity of the escrow agent.
• Contingencies and Deadlines: Financing approvals, inspection windows, and any other time-sensitive obligations.

Two versions of the Florida Realtors/Florida Bar contracts appear most often:

1. AS IS Residential Contract for Sale and Purchase: While this contract obligates the seller to disclose known material defects, it typically does not require the seller to perform repairs. The buyer, however, maintains the right to inspect and can either proceed with the transaction, negotiate repairs, or cancel before the expiration of the inspection period.
2. Standard Residential Contract for Sale and Purchase: This version often provides a clearer framework for required repairs or credits if significant issues are found during inspections. Although the parties can modify certain obligations, the Standard Residential Contract typically gives a more defined procedure for addressing repair items.

Florida law also mandates certain disclosures, such as those concerning lead-based paint for properties built before 1978 and radon gas. Sellers in the state must reveal known facts materially affecting the property’s value that are not readily observable. This duty to disclose can encompass roof damage, plumbing problems, or mold and moisture-related issues. Although sellers in Florida do not necessarily have to remediate mold issues to sell, they cannot conceal or misrepresent key facts that would materially affect the property’s worth.

Buyers under the AS IS contract frequently rely on thorough inspections to detect serious defects and consider negotiating repairs or price reductions. If the parties cannot reach an agreeable resolution, or if the buyer no longer wishes to proceed based on the inspection results, the buyer may cancel the transaction within the designated inspection period and recover the earnest money deposit (provided they follow the steps outlined in the contract). After the inspection deadline, the ability to cancel diminishes significantly, emphasizing the importance of adhering to contractual timelines.

An Ormond Beach attorney can assist with reviewing contract terms to ensure your interests are protected when buying a home.

Home Inspections  

Home inspections are often the decisive factor in whether a buyer proceeds with a Florida real estate purchase. Key concerns typically include the property’s structural integrity, roof condition, plumbing systems, electrical systems, and heating/ventilation/air conditioning (HVAC). Buyers usually hire licensed inspectors to conduct these evaluations. The inspection results can guide any repair negotiations and determine if the property meets the buyer’s expectations.

Wind mitigation is particularly relevant in Florida, especially in areas prone to hurricanes or tropical storms. Certain structural features, such as reinforced roof-to-wall connections or impact-resistant windows, may result in significant savings on homeowners’ insurance premiums. A wind mitigation inspection report will systematically itemize a property’s wind-resistant attributes, enabling insurers to determine eligibility for premium discounts.

In addition, insurers often require a four-point inspection for older Florida homes. The focus is on four critical systems: roof, electrical, plumbing, and HVAC. If a property fails in one or more categories—say, an outdated electrical panel—insurance companies may condition coverage upon repairing or replacing that system. This requirement may result in unexpected but necessary costs for the buyer.

Mold and moisture intrusion merit special attention in Florida’s humid and storm-prone climate. Sellers must disclose known mold issues that materially affect a property’s value, but buyers sometimes opt for specialized mold inspections to gain assurance that no hidden contamination exists. Damp conditions, poor ventilation, or past water damage can foster mold, and remediation can be expensive if severe infestations are discovered. Radon is another concern, and Florida contracts require a disclosure explaining the potential health risks of radon gas. Buyers often perform radon tests if they feel it is warranted during the inspection period.

Many buyers also consider supplemental inspections, particularly when purchasing older homes or homes located in areas with known soil or building material concerns. For instance, a sewer scope inspection can detect root intrusion, collapsed pipes, or significant blockages in older sewer lines. In certain Florida regions, concerns about “Chinese drywall” may arise—this refers to drywall that was imported during past supply shortages and can emit harmful gases affecting household systems. Termite and Wood Destroying Organism (WDO) inspections are also relatively common, especially since Florida’s climate can encourage termite activity. Checking for termite damage or other pests can prevent costly structural issues down the line.

Even when using an AS IS contract, many buyers seek to negotiate repairs or credits based on the inspection findings. A seller is not automatically obligated to fund repairs under an AS IS arrangement, yet if the seller wants to keep the deal together, they might agree to concessions. The outcome ultimately rests on market factors, buyer and seller preferences, and the nature of any discovered defects. Documenting inspection findings in writing or with photographic evidence is beneficial if any dispute later arises regarding the property’s condition.

Getting a Mortgage and Insurance  

For many Florida homebuyers, financing the purchase through a mortgage is a standard approach. The Florida Realtors/Florida Bar contracts typically include financing contingencies, specifying a period during which the buyer must secure approval for a loan. If the buyer does not obtain appropriate lending or finds that the terms are not acceptable—provided they comply with contractual procedures—they can terminate the contract without forfeiting the earnest money deposit. This contingency period is critical. Buyers should promptly gather the documents required by lenders, including income statements, proof of assets, and credit reports, to ensure that financing approval is not delayed.

Most lenders require an appraisal as part of the loan underwriting process. An appraiser will estimate whether the property’s value is sufficient to back the loan amount. Sometimes, buyers include an appraisal contingency addendum, allowing them to cancel or renegotiate if the property appraises below the agreed purchase price. If no appraisal contingency exists, and the appraised value is too low, the buyer may need to contribute additional funds out of pocket or risk defaulting if the lender declines to issue the loan at the initially anticipated amount.

Insurance requirements are another centerpiece of Florida homebuying. Standard homeowners’ insurance usually excludes flood coverage, so buyers should confirm whether their prospective property lies in a flood zone. Lenders often mandate flood insurance for properties in high-risk areas. Windstorm coverage considerations can be equally important due to the risk of tropical storms. Wind mitigation inspections can help buyers secure credits or lower premiums by verifying that the property contains storm-resilient features.

If obtaining private insurance proves difficult—for instance, if the home is older, near the coastline, or has a history of claims—buyers can consider a policy through Citizens Property Insurance Corporation, the state’s insurer of last resort. While Citizens can provide coverage in certain circumstances, it has specific limits and underwriting requirements that differ from standard private carriers. Buyers must also examine doc stamp taxes and intangible taxes associated with the mortgage, as these fees can influence the overall cost of the loan. Lenders typically evaluate a borrower’s debt-to-income ratio, factoring in monthly principal and interest, property taxes, insurance premiums, and HOA or condominium fees if applicable. An attorney in Ormond Beach can assist buyers in navigating the complexities of mortgage approval and insurance requirements throughout the homebuying process.

Condominiums, Cooperatives, and HOA-Specific Requirements  

Because Florida has a large number of condominiums, cooperatives (co-ops), and planned developments governed by HOAs, understanding the relevant disclosure requirements and buyer rights is crucial. If you are pursuing a condominium or cooperative property, Florida law obligates the seller—or the association on the seller’s behalf—to provide extensive documentation that allows you to evaluate the financial health and governance of the community. These documents usually include:

• Declaration of Condominium or Cooperative Documents: The foundational legal instrument outlining the rights and responsibilities of unit owners.
• Bylaws, Rules, and Regulations: Inform you about the community’s day-to-day operational guidelines, including use restrictions, pet policies, parking regulations, and more.
• Association Financials: Budgets, reserve studies, and financial statements that show whether the association has the funds to handle ongoing maintenance and future capital improvements.
• Frequently Asked Questions (FAQ) and Governance Form: Depending on the community, sellers must often provide a summary of association matters that affect owners.

Florida statutes require these documents be delivered to a prospective buyer within a certain timeframe. For condominium and cooperative transactions, the buyer traditionally has a statutory rescission or “cooling-off” period—often 3 days (for certain resale transactions) or 15 days (for some new developer sales)—to review the documents and decide whether to proceed. During this period, if you conclude that the community is not suitable for your tastes or financial comfort level, you can cancel the purchase agreement without penalty and have your earnest money deposit returned, provided you meet the statutory timeline and contractual notice requirements.

Homeowners’ associations (HOAs) are governed under Chapter 720 of the Florida Statutes. These might not always provide as extensive a compilation of mandatory disclosures as condominiums or co-ops, but in many cases, sellers—through contractual and statutory obligations—must furnish relevant documents so the buyer can examine the rules, fees, and obligations associated with the community. There may also be a termination right if the buyer does not receive these HOA documents within the timeframe specified in the contract. Some HOAs can levy special assessments for large-scale projects, and awareness of any pending or possible future assessments can be vital in estimating long-term costs.

When purchasing a condominium, co-op, or HOA-governed home, it is also smart to confirm whether the community has a history of litigation, underlying financial problems, or major repair projects on the horizon, such as roof replacements or structural upgrades. Such information can be gleaned by reviewing the association meeting minutes, budgets, and reserve studies. A lack of reserves for critical repairs could lead to costly special assessments for unit owners in the future.

Foreign Seller Considerations (FIRPTA)  

Another aspect that sometimes arises in Florida transactions is the Foreign Investment in Real Property Tax Act (FIRPTA). If the seller is a foreign national (i.e., not a U.S. resident for tax purposes), FIRPTA generally requires the buyer (or the closing agent) to withhold a prescribed percentage of the sale proceeds and remit it to the Internal Revenue Service (IRS). The rationale is to ensure that taxes on any gains realized by a foreign seller are collected, as it can be more challenging for tax authorities to pursue collection across international borders.

In practical terms, if you discover that the seller is a foreign national, your real estate contract or title company often includes provisions addressing FIRPTA requirements. Typically, the withheld amount is determined by the property’s purchase price and other eligibility factors. If the transaction is subject to FIRPTA, the buyer should confirm that all filings and withholdings are managed properly to avoid potential liability for uncollected taxes. Although FIRPTA is primarily the seller’s tax responsibility, if the withholdings are not handled correctly, the IRS can target the buyer for that unpaid amount. Checking with the title agent or a Florida real estate lawyer about compliance can help avert complications down the road. An Ormond Beach lawyer can provide guidance on FIRPTA obligations for buyers or sellers.

The Closing Process  

Florida is a lien theory state, which means the property’s title remains in the buyer’s name at closing, and the lender’s interest is reflected as a lien on the property. In preparation for closing, a title agent or closing attorney will usually conduct a title search to ensure no outstanding liens, judgments, or other encumbrances affect the property’s marketable title. A title commitment, listing the requirements and exceptions to issuing title insurance, is then prepared.

Buyers often purchase an owner’s title insurance policy to protect their ownership interest against undiscovered defects, ranging from prior fraud to unresolved liens. Concurrently, lenders usually require a loan policy for the mortgage, ensuring that the lender’s interest is also protected. The party responsible for paying the owner’s title insurance premium, as well as documentary stamp taxes on the deed or note, can differ from county to county. In some parts of Florida, the seller traditionally pays for the owner’s policy and the documentary stamp tax on the deed, while in other counties, these costs fall on the buyer. Contracts often memorialize precisely which party will pay each fee, and if there is a conflict with local norms, the contract terms typically govern.

In addition to title insurance matters, buyers and sellers complete various affidavits, including those indicating the absence of unpaid construction liens. Property tax prorations are also made in accordance with the contract. For instance, if you are closing mid-year, the seller is generally responsible for property taxes from January 1 through the day of closing, and the buyer takes on the remaining portion, though the contract can specify alternative methods of calculation. These allocations appear on the settlement statement (or Closing Disclosure if financed), giving a detailed breakdown of each cost for both buyer and seller.

Before the final paperwork is signed, Florida buyers customarily conduct a final walk-through of the property. This is typically done within 24 hours (and sometimes within a few hours) before closing to ensure the property is in the same or contractually required condition specified in the agreement. During this walk-through, you can verify that any agreed-upon repairs are completed, that no new damage has occurred, and that all fixtures and personal property meant to remain on-site are still present. If an issue arises—such as damage discovered after the sellers moved out—it is important to address it immediately, before you sign the closing documents. Once the closing is consummated, resolving post-closing problems can become more difficult.

At the closing, you will sign the settlement statement or Closing Disclosure that itemizes each charge, pay any remaining expenses, and sign mortgage documents if financing is involved. The seller signs the deed and other transfer documents. After the settlement funds are disbursed and the deed is recorded in public records, you become the legal owner of the property.

Once you take ownership, it is wise to change the locks, garage codes, and any other security settings. Then, ensure your homeowners’ insurance policy (and flood or windstorm coverage if applicable) is effective and updated. Setting up utilities—electricity, water, sanitation, and cable or internet services—should ideally be done in advance so the property remains habitable from the moment you move in. In many cases, you should promptly file for a homestead exemption if you intend to use the property as your primary residence. Meeting the homestead requirements and deadlines can help you optimize property tax savings. If you have questions during your real estate transaction, a lawyer in Ormond Beach can help guide you through the closing process.

Attorney vs. Title Company in Florida Real Estate Transactions  

Florida closings can be facilitated by either a title company or a Florida real estate attorney. Some counties follow longstanding customs where title companies handle the majority of residential closings, while in other counties, attorneys are commonly engaged to prepare closing documents and oversee the process. The choice sometimes depends on tradition, price considerations, or personal preference.

• Title Company Services: Title companies focus primarily on conducting title searches, issuing title commitments and final title policies, and ensuring that documents comply with underwriting rules. They will prepare a closing package, handle the disbursement of funds, and coordinate with lenders to ensure that all conditions for closing are met. A title company may not provide legal advice to any party, given that non-attorney title agents generally cannot practice law.
• Attorney-Involved Closings: When a Florida real estate lawyer is engaged, the buyer (and occasionally the seller) can receive legal counsel regarding the contract’s provisions, negotiation points, and potential liabilities. The attorney can explain legal ramifications of certain contingencies, assist in structuring contract addenda, and address any unusual title issues or disputes that could emerge.

While many residential transactions proceed smoothly with only a title company, some buyers feel more comfortable with an attorney who can explain the implications of each contract clause or proposed amendment. This can be particularly important if the property has legal complexities, such as outstanding liens, complicated forms of ownership, estate-related transfers, or unique contract contingencies. In the end, whether to use a title company or hire a Florida real estate lawyer remains a personal decision informed by the transaction’s complexity and the buyer’s desire for legal guidance.

Specialized Issues and Final Considerations  

Beyond standard inspections, Florida real estate transactions sometimes involve specialized concerns that warrant additional attention. Although not every buyer will face these issues, being aware of them can better position you to address unique property conditions.

• Termite and WDO Inspections: Wood Destroying Organisms (WDO) inspections go beyond just termites to check for beetles and fungus that can compromise structural wood. Florida’s warm, humid environment can encourage such problems. Early detection often makes treatment and repair more feasible.
• Chinese Drywall: In certain years when drywall supplies were limited, some builders installed imported drywall containing chemical compounds that can corrode electrical wiring and HVAC components. If you are buying a house built or renovated during those periods, it may be prudent to check whether any known issues with Chinese drywall exist.
• Sewer Scope Evaluations: Many older Florida properties have sewer lines that might be susceptible to root intrusion or corrosion over time. A simple camera inspection can reveal significant blockages or deteriorated pipes, allowing you to evaluate repair costs before taking title.

Throughout the homebuying process, staying mindful of contractual deadlines and Florida’s unique requirements can safeguard your earnest money deposit and streamline your experience. Whether you enter into an “AS IS” contract or a Standard Residential Contract for Sale and Purchase, understanding your inspection rights, financing contingencies, disclosure obligations, and closing customs will help you navigate the transaction with greater confidence.

After the closing, remember to file for homestead exemption if you plan to occupy the home as your primary residence. The Florida homestead laws not only provide potential savings on property taxes but can also offer creditor protections. Meeting the deadlines and conditions for these benefits, as outlined by statute, is an important step in settling into your new property. Additionally, verifying your new property’s tax assessment in subsequent years is wise to ensure it aligns with any applicable homestead caps, which may help mitigate large increases as property values rise.

From the moment you craft your initial offer to the day you record your deed, understanding Florida’s legal nuances, community regulations, and closing procedures can help you make informed decisions. By reviewing HOA or condominium documents within statutory timeframes, coordinating specialized inspections, preparing for financing obligations, and orchestrating a smooth closing, you are better positioned to achieve a transaction that reflects your goals and complies with Florida law. In a dynamic real estate market like Florida’s, knowledge of the peculiarities surrounding taxes, insurance, contract requirements, and association rules is especially vital. Embracing these considerations early can pave the way to a more successful homebuying process and a more secure investment for the future. An Ormond Beach attorney can provide guidance to help address legal questions you may encounter during a property transaction.

Knowledgeable Guidance in Real Estate Law

Navigating Florida’s complex real estate laws can feel overwhelming, especially if you are new to Ormond Beach’s unique property market. When you reach out to Florida Foreclosure Defense Law Firm, P.A., our experienced Ormond Beach lawyers stand ready to help you handle the intricacies of property ownership, negotiation tactics, and contract reviews. Whether you are finalizing a Purchase and Sale Agreement or addressing any special considerations along the way, we aim to keep you informed and empowered throughout each phase of your transaction. With a commitment to transparent communication and practical legal solutions, we guide you toward making decisions that align with your goals. We invite potential homebuyers to schedule a Free Consultation to discuss how we can assist in your endeavor to secure the property you desire. Call us at (877) 667-1211, and let our dedicated team put your property dreams within reach. Contact us today to get started.