Real Estate ยท May 14, 2023
Florida Real Estate Closings: What Every Buyer and Seller Should Know
A real estate closing in Florida involves a complex web of documents, deadlines, and disclosures. Knowing what to expect, and what to watch for, can protect you from costly surprises.
For most people, a home purchase is the largest financial transaction of their lives. Yet buyers and sellers routinely sign documents at closing without fully understanding what they mean. An experienced real estate attorney can review your contract, identify hidden risks, and ensure your closing proceeds without avoidable complications.
The Role of the Closing Attorney
Florida is an 'attorney state' for real estate transactions, meaning a licensed attorney must oversee the closing. However, in practice, buyers and sellers often rely on the title company's closing agent and do not have their own independent legal representation. There is an important difference: the closing agent handles the logistics of the transaction; an attorney representing you reviews the documents for your benefit and can identify terms that are disadvantageous or risky.
Title Search and Title Insurance
Before closing, a title company searches the public record to confirm that the seller has clear title to convey. This search looks for liens, judgments, easements, encroachments, and other clouds on title. Title insurance protects against defects in title that were not discovered in the search. Owner's title insurance is optional in Florida but strongly recommended, it protects you as long as you or your heirs own the property.
Common Contract Pitfalls
Florida real estate contracts contain numerous contingencies, financing, inspection, appraisal, each with specific deadlines. Missing a deadline, even by one day, can cost you your deposit or lock you into an unfavorable transaction. Sellers have specific disclosure obligations: known material defects must be disclosed, and failure to do so can give rise to fraud claims post-closing. An attorney reviewing your contract before you sign is far less expensive than litigation after the fact.
The Closing Disclosure and Settlement Statement
At closing, you will sign a stack of documents, often fifty pages or more. The most important is the Closing Disclosure (for financed transactions) or Settlement Statement, which itemizes all costs, credits, prorations, and the final amounts due from each party. Review this document carefully. Errors in prorations, unpaid taxes, or HOA assessments that appear on the settlement statement are your problem once you sign.
The Law Firm of Charles Vega provides legal guidance for residential and commercial real estate transactions throughout Florida. Whether you are buying, selling, or dealing with a title dispute, our office is here to protect your interests. Call (800) 975-0529.
Attorney Advertising | General information only. Not legal advice. This is a static reading copy of a public Insights article. Consult an attorney about your specific circumstances.