Closing on a Florida Home? 5 Questions to Ask Your Board Certified Real Estate Attorney

Question 1: What Did the Title Search Reveal, and How Does It Affect My Ownership?

What is the Title Search Process?

A title search is a comprehensive examination of public records to verify the seller's legal right to sell the property. This process uncovers the property's history, including every past owner, sale, and any potential issues that could challenge your ownership in the future. We examine deeds, mortgages, court records, property tax records, and other public documents to construct a chain of title and confirm its integrity.

Are There Any Encumbrances, Liens, or Other Issues?

During the title search, we are specifically looking for what are known as encumbrances. In simple terms, this is a claim against the property by a party who is not the owner. Common examples include outstanding mortgages, unpaid property taxes, judgments, or liens filed by contractors for unpaid work.

We also identify easements, which are rights given to another party to use a portion of your property for a specific purpose, such as a utility company needing access to power lines. 

Surveys can also reveal boundary or encroachment issues. Title problems are not uncommon; some data suggests that issues arise in more than a third of residential real estate transactions nationwide. Our role as your Board Certified Real Estate Attorney is to identify and work to resolve these issues, clearing the way for the title to be transferred to you without any lingering claims.

How Does Owner's Title Insurance Provide Protection?

It's important to distinguish between two types of title insurance.

 Your mortgage lender will require a lender's policy, which protects their financial interest in the property. However, an owner's title insurance policy is for your protection. It is a one-time fee paid at closing that defends you against financial loss and legal fees if a covered title defect from the past is discovered after you've taken ownership.

These "hidden" defects could include forgeries in old documents, undisclosed heirs, or mistakes in public records. In Florida, the law is clear that the buyer has the right to select their own title agent and attorney. This ensures the professionals managing your closing are working solely with your best interests in mind.

Question 2: Have You Reviewed the Purchase Agreement and All Closing Documents for Accuracy and Red Flags?

Comparing the Contract to the Final Paperwork

One of our primary responsibilities is to ensure the promises made in your initial purchase agreement are accurately carried into the final closing documents. We will meticulously compare the paperwork to verify critical details like the agreed-upon sales price, any seller-paid closing costs (concessions), and financing terms.

A key detail is the legal description of the property, which must be exact. An error in this description could cause significant title problems down the line. We also confirm that all agreed-upon contingencies—such as those related to the home inspection, financing approval, or appraisal—have been satisfied and properly documented.

Walking Through the Closing Disclosure (CD)

The Closing Disclosure (CD) is a five-page, federally mandated form that provides a final, detailed breakdown of your entire transaction. Under the Real Estate Settlement Procedures Act (RESPA), you have a right to receive and review your CD at least three business days before the closing.

This "cooling-off" period gives you time to ask questions without being under pressure at the closing table. We will review every line item with you, explaining loan costs, closing service fees, pre-paid amounts for taxes and insurance, and the final "cash to close" amount you will need to bring.

What Kind of Deed Am I Getting?

The deed is the legal document that officially transfers ownership from the seller to you. The most common and highest form of deed in Florida residential transactions is the Warranty Deed. Its form and use are outlined in Florida Statutes Chapter 689.

In simple terms, a warranty deed provides the greatest protection to the buyer. With it, the seller is making several guarantees, or "warranties." 

They are guaranteeing that:

• They are the rightful owner of the property
• The property is free of undisclosed liens and encumbrances
• They will defend the buyer's title against any claims from others. 

This is why having a clean title search is so important to support these warranties.

Question 3: Can You Provide a Detailed Breakdown of All Fees and Costs I Will Pay at Closing?

Understanding the Firm's Fees for Closing Services

It is important to have a clear picture of all expenses before you arrive at closing. Our firm will provide you with a written statement of our fees for handling the legal aspects of your closing. These services include the title search, document review, coordination with your lender, and facilitation of the final signing.

Identifying Other Third-Party Closing Costs

In addition to your down payment and attorney fees, you will be responsible for several other third-party costs. We will ensure these are accurately listed on your Closing Disclosure. These commonly include:

• Appraisal Fee: Paid to a licensed appraiser to confirm the home's value for the lender.
• Home Inspection Fee: Paid to the inspector you hired to evaluate the property's condition.
• Property Survey Fee: Paid to a surveyor to identify the property's boundaries and any encroachments.
• Title Insurance Premiums: This includes both the lender's policy and your optional owner's policy.
• Government Recording Fees: Fees charged by the county clerk to officially record the new deed and mortgage.

You will also see prorated expenses. Property taxes and any homeowners' association (HOA) dues are split between the buyer and seller based on the closing date. We verify these calculations to ensure you only pay for the portion of the year that you will own the home.

The Role of an Escrow Account

If you have a mortgage, your lender will almost certainly require you to have an escrow account, sometimes called an impound account. An escrow account is a separate account managed by your mortgage servicer to pay future property tax bills and homeowners' insurance premiums on your behalf.

At closing, you will make an initial deposit into this account to build up a cushion. Then, a portion of your monthly mortgage payment will be added to the account each month. This process ensures that funds are always available to pay these two important bills, protecting both you and the lender.

Question 4: How Will You Address Last-Minute Problems That Could Delay the Closing?

Common Last-Minute Closing Hurdles

Even with careful planning, unexpected issues might surface right before the scheduled closing. These problems demand quick and knowledgeable action to prevent delays or even cancellation of the deal. Some common last-minute hurdles include:

• Final Walk-Through Issues: The final walk-through might reveal unexpected damage to the property that occurred after the inspection, or the seller may have failed to complete agreed-upon repairs.
• Surprise Liens: A last-minute search could uncover a previously unknown lien, such as one for an unpaid utility or HOA bill from the seller.
• Paperwork Problems: Documents may be missing, or errors in paperwork prepared by other parties could be discovered.
• Financing Snags: A buyer's financial situation might change, causing the lender to delay final approval.

The Attorney's Role in Resolving Disputes

This is where having a Board Certified Real Estate Attorney becomes invaluable. We anticipate these potential problems and are prepared to address them efficiently. If the walk-through reveals damage, we can negotiate a credit from the seller to cover the cost of repairs. If a last-minute lien appears, we can arrange for the seller to pay it from their sale proceeds or have funds held in escrow until the issue is cleared.

Our experience allows us to quickly identify the best path forward, coordinating with the seller’s attorney, the real estate agents, and the title company to find a solution that keeps your transaction on track.

What Happens if the Seller Breaches the Contract?

In a rare instance where the seller decides they do not want to sell or is otherwise unable to meet their contractual obligations, you have legal remedies. Your options as a buyer may include seeking to have your earnest money deposit returned. In some situations, a buyer may have grounds to file a lawsuit to compel the seller to complete the sale, a legal remedy known as "specific performance." This is a complex legal action, and having an attorney to guide you is paramount.

Question 5: After Closing, What Are My Responsibilities, and What Final Steps Do You Handle?

Your Immediate Priorities as a New Homeowner

Once the papers are signed and the keys are in your hand, you are officially a homeowner. Here is a brief checklist of important tasks to complete in the first few days and weeks:

• Secure the Property: Change all the locks on exterior doors and update any security system codes.
• Transfer Utilities: Contact all utility companies (electric, water, gas, internet) to transfer service into your name.
• Update Your Address: File a change of address with the U.S. Postal Service and update your address for bank accounts, credit cards, and subscriptions.
• File for Homestead Exemption: To save money on your property taxes, you must apply for Florida's Homestead Exemption with your county property appraiser. The deadline to file is typically March 1 for that tax year.

Post-Closing Services Provided by the Firm

Our job isn't finished just because the closing meeting has ended. The firm handles several important post-closing administrative tasks. The most significant of these is ensuring that your new deed and the mortgage are properly and promptly recorded with the county clerk's office. This officially places your ownership into the public record.

After recording, you will receive the original recorded deed and your owner’s title insurance policy in the mail. Be aware that this process can sometimes take several weeks or even a few months, depending on the county's processing times.

Who to Contact if Future Issues Arise?

Our relationship does not need to end at closing. If a title problem that is covered by your owner's policy ever emerges—for example, if a previously unknown heir comes forward with a claim—your first call should be to the title insurance company that issued your policy. You should also feel free to contact our office.