How To Purchase A Home In The State Of Florida

By: Shane Smith

The first step in purchasing a home in the State of Florida is to locate a competent real estate agent. There are three kinds of real estate agents . The transaction agent owes fiduciary duties to the seller. The non representative agent assists both parties to a real estate transaction. The buyers agent represents the purchasers and owes the fiduciary duty to inform the seller of the credit worthiness of the purchaser.

The purchaser should then obtain a credit rating report from a credit rating company. This report is a confidence building measure with regard to the purchaser in relation to the lender and the seller. When the purchaser locates and intends to buy a home, he makes an offer in the form of a purchase agreement. The agreement should include the options of conducting inspections as required by law, the price and deadlines for the completion of each stage of the transaction. The seller answers the offer. Before signing the agreement the Seller is required under law to give a structural disclosure and a community disclosure. Once the agreement is signed by the seller the offer becomes binding on the parties to the transaction.

The purchaser should engage a certified inspector to inspect the structure of the property for flaws, pest control, radiation, lead paint usage and other inspections required by the State of Florida.

The purchaser should engage an attorney, a real estate title company or a title and trust company to inquire into the defects in the title from court and public records. The American Land Title Association has a list of title search professionals for the reference of purchasers. The State of Florida recognizes the implied easement of necessity which is a possible encumbrance on a property. The title search could reveal the liens on the house enforceable by unpaid construction fees unpaid taxes due by the seller and unpaid child support. Other encumbrances could be the results of forgery, fraud, property belonging to minor children or people of unsound mind and invalid documents. The title search professional will draw up an abstract to be communicated to the seller. If required, the seller can cure the encumbrance by getting the liens released. Thus the risk of purchase is removed when the encumbrance is identified. The purchaser should buy a one time title insurance amounting to less than 1% of the purchase price to protect any further undiscovered encumbrances or title claims and its attendant legal costs. Banks and mortgage companies will lend money based on the non encumbrance certificate which adds value to the secured property.

Once the purchaser signs a promissory note which is deemed to be the IOU with the lender, the purchase can be closed by the seller signing the deed in favor of the buyer. The signing usually takes place at the office of the lender's attorney. The purchaser should show proof of possessing a home owners insurance and bring authentic identification documents to the closure. The lenders attorney may require that the buyer bring additional documents. The keys of his new home are handed over to the purchaser and the process of purchasing a home in the State of Florida is complete.

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