Purchase Process In Miami
BUYING PROCESS – REAL ESTATE IN MIAMI AND FLORIDA
1/ If the process will be conducted as a cash transaction, the buyer is not required to be present for the selection of the property, negotiating any offers or completing the sale. All transactions can be conducted on site by our representative. It is required, that to open a bank account in USA, the applicant must apply in person supplying original proof of address, ID / Passport. The address may be a confirmed ‘care of address’.
2/ If a loan is required, prior to selection of a property a pre-approval letter will be required from the lender. This letter will confirm proof of funds.
3/ The broker will email prospective buyers all properties within their chosen criteria. The client will then conduct a pre-selection of the real estate units they are interested in.
4/ Offers must be submitted in writing. We are able to submit offers on your behalf to one or more properties, without any commitment. Please note: an offer is not a contract, once all parties agree and sign the executed contract, the sale offer becomes official. No deposit is required at this stage.
5/ The deposit is normally 20% of the property asking price, although this can be negotiable within the contract. If required the purchase can be completed with one or several payments as negotiated.
6/ The broker will then negotiate 24-48 hours to allow the seller to accept the offer and terms of conditions for the completion of the sale. If the offer is not accepted within this time limit, the offer becomes invalid. The seller can accept, deny or re negotiate the offer with the buyer. Once an offer is agreed by all parties, the agreement will be completed and signatures received from both parties.
7/ Following the offer acceptance terms of contract will be discussed and agreed. This includes the buying process, financing, closing date and any further terms and conditions. Points will be executed in writing. If the purchase is cash a completion date can be agreed within 2-3 weeks. If a loan is arranged it will be approximately 2 months. If funds become available earlier than expected we may arrange for the completion date to be brought forward.
8/ Once all parties have agreed and signed the contract it becomes legally binding. The broker specifies that within a 3 day period from this date a deposit will be sent to a third party independent body. A copy of the contract is issued to the buyer. The buyer is then allowed a 15 day cooling off period to renege the contract.
9/ Buyers who require a mortgage must finalise the loan within 7 days of the above contract being signed. During this 7 day period any inspections must be completed by the lender. It is not a requirement to use the initial lender who provided the pre-approval letter. The lender then has a one month period to process the legal documents and implement the loan. At this stage if the buyer has the loan denied they will be allowed a 100% refund of any deposit paid.
10/ To ensure complete peace of mind to the buyer, the broker will at this point advise the buyer to initiate a professional inspection of the property. This will be paid for by the buyer. The professional inspector will complete a full structural report on the property, advising the buyer of any repairs required and structural issues. Any instructed repairs must be completed by the seller or alternatively the price may be re negotiated to allow the buyer to conduct the repairs. If the seller refuses to conduct the repairs or renegotiate on the sale price where a new contract would be signed, the buyer may at this stage withdraw from the contract. Alternatively the buyer may decide not to purchase the property at all following any adverse report findings. Please note, legally there are only 2 options to be released from the contract, either following the inspection or if a mortgage is not approved within one month. In this situation the broker will compile a new form for the buyer to sign, cancelling the purchase contract and arranging for a full refund of their deposit. The cost of inspection is non refundable.
11/ If a loan or mortgage has been approved, the lender will require the purchaser to provide details of suitable property insurance prior to completion. Mandatory insurance is not applicable but advisable for cash purchases.
12/ One day prior to the completion date the buyer will receive by email a HUD 1 document. This provides a complete summary of all financial transactions, details of deposit, sale price, taxes due etc. It will also include details of home owner associations if applicable. Any part year payments for example property taxes, will be itemised on a pro rata basis.
13/ The buyer is not required to be physically present on completion day. Signatures may be presented via mail. The outstanding balance of payment (Selling price minus deposit and loan) should have been arranged for wire or bank transfer on this day to the designated Lawyer or title company completing the sale process. We recommend including in the pre arranged money transfer, a small surplus amount to cover any difference in currency exchange or bank charges. Any surplus will be refunded on completion.
This concludes the buying process. Keys to the property are issued to the buyer and Title Deeds are transferred approximately 1-2 months later to the buyers designated address.
COSTS TO THE BUYER
– Professional Inspection Report costs $400 to $500.
– Title Deed Costs, delivering you the deed of the property and conducting land registry searches, approximately 2% of purchase price. e.g. $6000 for a $300,000 property.
– Property Taxes are approximately 2% of the official county value of the house. Please note, this is not the purchase price. e.g. The selling price is $600,000 but the official county value is $400,000, the 2% is calculated at the $400,000 which equates to $8000 payable to property taxes. The tax is payable in March of the financial year of purchase. However notification is supplied the previous November to the address provided at closing. If the tax is paid prior to 30th November a 4% discount is calculated. Alternatively by the end of December – 3% discount, January- 2%, February – 1%, or March- full amount.
– Insurance $1000 – $2000 for a condo. 0.45% – 1 % for a house.
It is required by law for the person to be present. Documents required are as follows:
- The last 3 months bank account statements, TL/Euro/USD (preferably in english)
- A reference letter from your bank’s Personal Account Manager written in english.
- Proof of premier client bank status.
- Proof of home address from the Nufus official registration.
- If a business owner, the company registration document and a letter from the chamber of commerce to show a business partnership, if applicable. All business partners must be present to sign.