SERVICES

Buying is not easy.

For some, it is the single largest investment they have ever made. It involves a legal document that is 10 to 15 pages long, small print, with all kinds of legal terms, conditions and obligations.  The loan documents are hundreds of pages.  The closing statement with all of the numbers is complex and confusing if you are not familiar with it.

It takes a good attorney years to understand all of the nuances involved.

Many people think they can sign a form contract without understanding all of the intricacies and ramifications of the contractual obligations.  There are special requirements for a purchaser or seller, and those needs must be addressed before signing.
 

Significant issues include: timing, inspections, loan contingencies, closing dates, physical condition, title status, liens, open permits, condominium maintenance and assessments and who is responsible for the payments, property taxes and valuations, homestead exemption and what is the best way to own the property.

We make a complex process user-friendly.

We arrange to close by escrow closing if you cannot attend your closing.

We coordinate the mortgage portion of closing.

We make sure that your purchase is the most important transaction.

Selling is not easy. 

For some, it is the culmination of the single largest investment they have ever made. The contract is a legal document that is 10 to 15 pages long, small print, with all kinds of legal terms, conditions and obligations.   The closing statement with all of the numbers is complex and confusing if you are not familiar with it.
 

It takes a good attorney years to understand all of the nuances involved.
 

Many people think they can sign a form contract without understanding of the intricacies and ramifications of the contractual obligations.  There are special requirements for a purchaser or seller, and those needs must be addressed before signing.
 

The seller has many obligations: to deliver good title to the property, free of liens and open permits and violations.  The seller’s mortgage needs to be paid off and the seller needs to sign a series of legal documents which include a deed, bill of sale and title affidavits.  If the seller is a trust, corporation or limited lability company, there are additional requirements.
 

Foreign sellers have tax withholding and reporting requirements.

Most important, the seller needs to get its proceeds from the sale when it delivers the conveyance documents. 

The Basic Steps of Closing

1.Starting the process

A sales contract is signed by the buyer and seller, and delivered to the closing agent, usually with a deposit check. The escrow is accepted by the escrow agent, often by written notation on the contract or a separate escrow letters. The escrow agent starts the closing process by opening a title order. The file begins to be processed. Tax information, loan payoffs, survey (if necessary), homeowner/maintenance fees, inspections/reports, and hazard and other insurances as well as legal papers are ordered. A title search and lien search is ordered.

2.Title search and examination

This is a search made of the public records. Records searched include deeds, mortgages,  assessments, liens, wills, divorce settlements and other documents affecting title to the property. Title examination is the examination of the documents found during the title search that affect the title to the property. This is when verification of the legal owner is made and the debts owed against the property are determined. Upon completion of the search and examination, a title commitment/preliminary report is prepared, and reviewed and sent out to interested parties.  A lien search is also reviewed to make sure that there are no open permits for improvements done to the property and that there are no code or other violations asserted against the property. 

3.Document preparation and/or request to produce

The closing agent reviews the new lender’s instructions and requirements, reviews instructions from other parties to the transaction, reviews legal and loan documents, assembles charges, prepares closing statements, and schedules the closing.

4.Settlement or closing the transaction

The escrow or settlement agent oversees closing of the transaction. The seller signs the deed, bill of sale and other closing documents. Buyer signs the new note, mortgage and other loan documents. The old loan is paid off. Seller, real estate agents, attorneys and other parties present at the closing of the transaction are paid. 

5.Post-closing

After the signing has been completed, the closing  agent will forward payment to any prior lender, and pay all parties who performed services in connection with your closing (if they have not been paid). The transaction documents are recorded in the county in which the property is located. Title insurance policies are prepared and sent to the new lender and to you. This all happens without any further actions by the buyer or seller.

Buyer costs:

1.Title Insurance: the rate is set by the State of Florida Title Insurance Commissioner.  The initial base rate is $575 per $100,000 of the purchase price with the rate decreasing as the cost of the coverage increases. The loan policy is simultaneously issued for a nominal cost.  The lender may also require additional coverage in the form of title endorsements, also issued at  relatively nominal costs. (Note: In Palm Beach County, it is customary for the Seller to pay for title insurance.) 

2.Closing Fee:  Our office charges a closing fee for each mortgage closing due the nature and complexities of the mortgage closing process. 

3.Attorney’s fee:  The charge for buyer or seller vary with the nature and complexity of the transaction and the amount of time required in the contract negotiation and closing process. 

4.Other Buyer costs:

a.Survey of the property (if not a condominium).

b.Homeowner’s insurances.

c.Miscellaneous costs such as recording the deed (nominal).

d.All loan related costs.  

Seller Costs:

5.Deed stamps which are also known as Documentary stamps:

a.$7 per $1,000 value of the sold property in all counties except Miami Dade County.

b.$6 per $1,000 value for all single family residences in Miami Dade County.

c.For all non single-family residential  properties, there is a $4.50 per $1,000 of value surtax.   

6.Search fees:

a.Title search: Usually is approximately $250.

b.Lien search fees: Usually is approximately $150.

7.Seller document preparation: The cost to prepare the documents required for the seller to convey the property and good title.  This may vary with the nature and complexities of the transaction. 

8.Attorney’s fee:  The charge for buyer or seller vary with the nature and complexity of the transaction and the amount of time required in the contract negotiation and closing process. 

9.Real Estate Commissions.  This is based on your agreement with the realtors and usually is 6% of the total sale price. 

10.Other Costs:  These include recording any title related documents, wire fees, mortgage fees, etc. 

Prorations:

Taxes, rents, assessments and maintenance, as applicable, are prorated at closing.

What is title insurance?

When you buy a property, you want to be sure the seller has the right to sell it and that when the transaction closes, you actually own it. A title insurance policy protects you and your lender from losses that could result from disputes over ownership of a property’s title. This could include fraud, liens against the property, or errors missed during a title search. Title insurance is important because it protects you from title hazards that could threaten the investment you have made in your home or other property. It also protects the lender’s investment.

What is an owner’s policy?

An owner’s title insurance policy guarantees that the buyer has the right to the property. It usually covers the cost of any legal fees that arise if you have to defend your claim. The cost is based on the price of the property.

What is an lender’s policy?

A lender’s title insurance policy protects the bank that issues your mortgage from any losses resulting from disputes over who owns the property.

A policy covers the amount of the loan and the cost is based on the amount of that loan. Most lenders require this coverage, which ends when the mortgage is paid.

Do I have to pay a monthly premium for title insurance?

Title insurance is issued for a one-time fee usually due when you are closing or settling the real estate transaction. Insurance benefits are paid only to the name that is on the policy. Coverage lasts as long as you hold title to the property.

What’s covered by title insurance?

Owner’s title insurance protects you from:

•Fraud associated with the title ownership

•Liens existing against the property at the time the policy was issued

•Mistakes in the public record that are not caught before the sale

•Inaccurate or conflicting wills and trusts related to the title

•Missing heirs who suddenly appear and claim to own the property

•Forged or misfiled deeds and other documents

•Errors or flaws in the title that are not discovered during the initial title examination

Lender’s title insurance covers the amount of the mortgage loan and protects the lender’s interest in the property if any of the above risks occur.