Buying Property in Florida - What's Next?

When you submit your offer, you'll be required to pay a deposit.  This money is held in an escrow account (an account held by a neutral third party - in order words, not held by either the buyer or the seller).   The deposit is generally held by the agent or the closing attorney.  This is used towards the sale price and is not an extra charge.

Note: Escrow is a term which might confuse some European buyers mainly because it's not one that's typically used in the UK, for example, while it's common in the Czech Republic.  You can read more on this here: Escrow from Wikipedia.

One important thing to mention here is that if you're a foreign national looking to buy in the USA, you really should establish a bank account there.  Most sellers, especially institutional sellers like banks, won't consider an offer if you can't prove you have the funds readily available.  Saying you have the funds in a European bank account won't mean much if it takes a week to get the funds transferred.  Generally speaking your local agent will ask for this (a recent bank statement, for example) to be submitted along with your offer. 

If you're making an all cash offer, once your offer is accepted you will have as many days as specified in your offer to make inspections, get condo association approvals, etc.

Once that's all done and you're satisfied with the information you've received you can proceed to closing.  You will be provided with a good faith estimate in line with The Real Estate Settlement Procedures Act (RESPA) outlining who pays for what at closing.  

NOTE: RESPA is about closing costs and settlement procedures. RESPA requires that consumers receive disclosures at various times in the transaction and outlaws kickbacks that increase the cost of settlement services. RESPA is a HUD consumer protection statute designed to help homebuyers be better shoppers in the home buying process, and is enforced by HUD (the US Department of Housing and Urban Development).

There are usually two columns on the good faith estimate - buyer's side and seller's side.  You'll see all the costs delineated on the form with totals on the bottom.   Besides the purchase price, you will be responsible for prorated property taxes, for example, utilities and home owner dues, if applicable and/or if any are outstanding.    Your local agent will go through this with you and make any corrections and notify the closing attorney.

The closing will be scheduled and either you or your representative (empowered by a power of attorney) will be present along with the seller and your respective agents will be there.  You'll need to have certified funds with you.  Your local US bank can provide you with a certified check.  You sign it over to the closing attorney, sign the closing documents and receive the keys to your new home or condo.  Possession is immediate in the US.


Are you looking for US investment property at a discount? Are you looking for a discounted short sale or bank owned property?  John Breaux can be reached at john@marathon-group.cz or +420 602 355 810 or +1 504-208-4331.