Knowledge Center · 58 questions answered
This page answers the questions buyers ask most about purchasing a home in Miami, Fort Lauderdale, and Palm Beach: how the process works, what pre-approval really means, how offers and inspections play out, what closing costs to expect, and what is different about condos, waterfront property, and buying from abroad. Every answer reflects Florida law and current practice, with dated citations where facts can be verified and a clear invitation to confirm details with a licensed professional where your situation calls for it.
01 · 8 questions
Getting started.
Start before you tour your first property. In South Florida's luxury market, the best opportunities, including off-market residences and pre-construction allocations, move through agent networks before they appear publicly. Early engagement also lets us refine your budget, financing, and search criteria before you fall for a property that does not fit.
Yes, in practice: under the national commission-settlement rule effective August 17, 2024, an MLS participant who works with a buyer, including touring homes, must have a signed written agreement before touring. The agreement covers the compensation amount and how your broker is paid, the term, and the scope of services, and commissions are fully negotiable.
Source: Florida Realtors: NAR settlement and buyer broker agreements · verified October 2026
Pre-qualification is a quick estimate of what you can borrow based on self-reported numbers. Pre-approval is stronger: the lender verifies your income, assets, credit, and debt and issues a written commitment for a specific amount, which is what sellers and agents take seriously in a competitive offer.
Source: Consumer Financial Protection Bureau: get a preapproval letter · verified October 2026
Most pre-approval letters are valid for 60 to 90 days, and the lender will typically refresh your credit and documents if your search runs longer. Because rates and underwriting guidelines change, plan to revisit the letter if you have not gone under contract within that window. Confirm the exact validity with your lender.
Source: Consumer Financial Protection Bureau: get a preapproval letter · verified October 2026
It depends on the loan program: conventional loans commonly start at 5 percent down, FHA at 3.5 percent, and VA and USDA at zero for qualified buyers. Jumbo and luxury purchases in Miami and Palm Beach often require 20 to 30 percent down, and all-cash buyers need none. Contact for current information on today's rates and program minimums.
Source: Consumer Financial Protection Bureau: get a preapproval letter · verified October 2026
Lenders typically ask for two years of tax returns and W-2s, recent pay stubs, bank and investment statements, and identification. Self-employed buyers also provide a profit-and-loss statement and business records. Having these organized before you start saves real time once you go under contract.
Yes. Beyond the general advantage, condo purchases face an extra layer: the lender must approve the building itself, reviewing reserves, owner-occupancy ratios, and litigation. A pre-approval letter for a specific building type tells you early whether the condos you like are financeable, which avoids wasted tours and disappointed offers.
A rate lock holds your interest rate for a set period, usually 30 to 60 days, while your loan is processed. Your lender can lock once you are under contract, and locking early protects you if rates rise. Confirm the lock terms, including any extension fees, directly with your lender before you commit.
02 · 8 questions
The process and timeline.
From accepted offer to closing, a financed purchase typically takes 30 to 60 days, with most closings landing in the 37-to-47-day range for a smooth, conventional loan. All-cash purchases can close in two to three weeks, and new construction follows the developer's completion schedule, which is often much longer.
Source: The Mortgage Reports: how long does it take to close a mortgage · verified October 2026
The main steps are: negotiate and sign the purchase contract, deliver earnest money to the escrow agent, complete the inspection and review the condo or HOA documents, finalize financing and the appraisal, clear title with the title company, and sign at closing. Your agent manages the calendar and each deadline in the contract.
Earnest money deposits commonly run 1 to 3 percent of the purchase price, and flat amounts of $10,000 to $50,000 or more are normal on luxury deals. The deposit is held in escrow by a neutral party, credited to your purchase price at closing, and returned if you cancel within your contract contingencies.
Source: Florida Realtors: Florida escrow laws and rules · verified October 2026
Florida law requires the deposit to be placed in escrow, typically with the title company, the closing agent, or the broker's escrow account, and it must be deposited promptly. The escrow holder can only release the funds with mutual written agreement of both parties or a court order, which protects buyers if a dispute arises.
Source: Florida Realtors: Florida escrow laws and rules · verified October 2026
If you cancel with written notice within a valid contingency period, such as inspection, financing, or appraisal, the deposit is refunded. If you default without a contractual right to cancel, the seller may be entitled to keep the deposit as liquidated damages. Never rely on a verbal understanding: the contract's deadlines govern, so act in writing and before each deadline.
Source: Florida Realtors: Florida escrow laws and rules · verified October 2026
Florida's standard FAR/BAR As-Is contract states that the buyer accepts the property in its present condition, subject to the inspection right to terminate or negotiate. A standard contract instead obligates the seller to repair items that fail inspection. As-is is common in South Florida, but as-is still allows you to walk away during the inspection period, so the inspection window matters more than the label.
Under the standard Florida Realtors/Florida Bar As-Is contract, the inspection period is typically 15 days from the effective date of the contract, though it is negotiable. Within that window you can have the property inspected and, if you are not satisfied, terminate the contract in writing and receive your deposit back.
Source: Florida Realtors: Florida escrow laws and rules · verified October 2026
Yes. Buyers routinely purchase Florida property remotely using a POA (power of attorney) for closing or remote online notarization where permitted, and many closings accommodate out-of-town signings with the title company. Your agent coordinates video walkthroughs, virtual inspections, and digital document review so the process works without you in the room.
03 · 8 questions
Offers, contracts, and negotiations.
The offer letter and contract should cover the price, deposit amount, closing date, financing terms, contingencies (inspection, financing, appraisal), and any personal property included. In a competitive market, a strong offer also shows proof of funds or pre-approval and a realistic closing timeline. A well-constructed offer protects you as much as it persuades the seller.
Get fully pre-approved, keep contingencies tight but fair, offer a meaningful deposit, and close on the seller's timeline where possible. Sometimes a personal letter and proof of stable financing tip the scale. Your agent should also look for off-market opportunities where the competition simply does not exist.
An escalation clause automatically raises your offer by a set increment, up to a stated cap, if competing offers exceed yours. It can win a bidding war without overpaying on the first number, but it must be drafted precisely, with proof-of-other-offer language, to be enforceable. Ask your agent whether escalation fits the specific seller's situation.
No. Sellers may accept any offer or reject all offers for any lawful reason, including financing strength, contingencies, timeline, or a preference for a cash buyer. A higher price with risky terms can lose to a lower, cleaner offer. Your agent should frame your offer for the seller's priorities, not just the number.
A counteroffer is the seller's formal response changing one or more terms of your offer, and it rejects your original offer in the process. You can accept, reject, or counter again, and the process continues until both parties sign identical terms. Every change should be in writing; verbal agreements on price or repairs are not binding.
The standard protections are financing, appraisal, and inspection contingencies, plus condo/HOA document review for association-governed properties. In Florida you may also want a contingency tied to insurance availability, especially on older waterfront properties. Each contingency has a deadline, and missing a deadline can cost you your deposit, so calendar discipline matters.
Only if the contract's financing contingency has lapsed or you did not act diligently. If you applied for financing within the required time and it was denied, the standard Florida contract lets you terminate and recover your deposit. If you let the financing deadline pass without applying, the seller may claim the deposit, so submit your application promptly.
Florida contracts use a defined inspection period rather than a separate due diligence fee structure. During that window you complete inspections, review documents, verify insurance costs, and decide whether to proceed or terminate. The window is negotiable, and extending it for a complex waterfront or condo purchase is common when the seller agrees.
04 · 8 questions
Inspections and due diligence.
At minimum, a licensed general inspection covers structure, roof, electrical, plumbing, and HVAC. In Florida, buyers often add a wind-mitigation inspection for insurance credits, a four-point inspection on older homes, a termite or wood-destroying-organism report, and a mold check in humid climates. Your agent arranges access and coordinates the reports.
A four-point inspection reviews the roof, electrical, plumbing, and HVAC systems, and insurers frequently require it for homes over a certain age, often 25 to 40 years depending on the carrier. It is one of the fastest ways to learn what your insurance quote will cost and what a carrier may require before binding coverage.
A wind-mitigation inspection documents the features that reduce hurricane wind damage, such as roof shape, roof-to-wall connections, and opening protection like impact glass or shutters. In Florida it can qualify the home for meaningful insurance credits, sometimes 20 to 45 percent off the wind portion of the premium. The small inspection fee usually pays for itself immediately.
Source: Citizens Property Insurance: 2026 multiperil rates to drop statewide · verified October 2026
Determine the property's FEMA flood zone from the flood map, ask whether the seller has flood insurance and what it costs, and check the elevation certificate if one exists. Homes in high-risk zones require flood insurance for most mortgages, and rates vary widely by zone and elevation. These numbers belong in your budget before you make an offer.
Source: Citizens Property Insurance: 2026 multiperil rates to drop statewide · verified October 2026
A survey shows the property lines, easements, encroachments, and improvements relative to the legal description, and lenders usually require one for a mortgage. On waterfront and gated properties it is especially important because boundaries, seawalls, and common areas are easy to misunderstand. Review the survey with your agent before closing.
Yes, if the property has them. Septic and well systems are common outside city sewer areas, and replacement can be expensive, so a specialized inspection and a check of the local health department records are wise. The condition of these systems directly affects value and financing.
A title search examines the public records for liens, easements, encroachments, and ownership defects that could cloud your ownership. The title company performs it and issues title insurance, which protects you against claims that surface later. In Florida, title insurance premiums follow state-promulgated rates, and the policy is a standard cost of closing.
Source: Florida Realtors: who pays closing costs in Florida · verified October 2026
Yes. After the inspection report comes in, your agent presents a request for repairs, a credit, or a price adjustment, and the seller can accept, counter, or refuse. Under an as-is contract, if you and the seller cannot agree, your remedy is usually to terminate within the inspection period and recover your deposit.
05 · 8 questions
Financing and closing costs.
Buyers typically pay 2 to 5 percent of the purchase price in closing costs, including the loan origination, appraisal, lender's title policy, recording fees, and prepaids like homeowners insurance and escrow reserves. The exact split is governed by the contract and local custom, so your lender's Loan Estimate will give you the precise numbers.
Source: Florida Dept. of Revenue: documentary stamp tax · verified October 2026
Buyers usually pay the mortgage documentary stamp tax of 35 cents per $100 of the loan, the nonrecurring intangible tax of $2 per $1,000 of the loan, the lender's title insurance policy, appraisal, credit report, survey, inspection, and recording fees. In Miami-Dade and Broward, buyers also commonly pay the owner's title insurance, unlike most other counties.
Source: Florida Dept. of Revenue: nonrecurring intangible tax · verified October 2026
Florida charges a documentary stamp tax of 35 cents per $100 of the loan amount on the promissory note, which the buyer typically pays at closing. The separate deed doc stamps on the sale price are customarily the seller's cost, at 70 cents per $100 (60 cents in Miami-Dade for single-family homes). Your closing statement itemizes both.
Source: Florida Dept. of Revenue: documentary stamp tax · verified October 2026
Conventional loans with less than 20 percent down generally require private mortgage insurance, and FHA loans carry their own mortgage insurance premium. If you are buying a condo or in a high-cost market, note that jumbo loans usually require larger down payments rather than PMI. Your lender will model the options for your specific loan.
Source: Consumer Financial Protection Bureau: get a preapproval letter · verified October 2026
A conventional loan stays within conforming loan limits and can be sold to Fannie Mae or Freddie Mac, while a jumbo loan exceeds those limits and is held in a lender's portfolio with stricter requirements, often 20 to 30 percent down and higher rates. In South Florida's luxury market, jumbo financing is common and usually needs more documentation. Confirm current conforming limits with your lender.
Source: The Mortgage Reports: mortgage timeline · verified October 2026
Most Florida lenders escrow property taxes and insurance into your monthly payment, so the assessed value and millage rate directly change your mortgage bill. If you occupy the home as your permanent residence, the homestead exemption removes up to $50,000 from the assessed value, lowering the tax escrow. The property appraiser's records show the current assessment before you buy.
Source: Florida Dept. of Revenue: homestead exemption PT-113 · verified October 2026
An appraisal is an independent estimate of market value ordered by the lender to confirm the property supports the loan. If it comes in below the contract price, you and the seller can renegotiate, you can make up the difference in cash, or you can use the appraisal contingency to terminate and recover your deposit.
The Loan Estimate itemizes your loan terms and closing costs within three business days of applying, and the Closing Disclosure restates them with final numbers at least three business days before closing. Compare the two documents line by line: any significant change should be explained by your lender before you sign.
Source: Consumer Financial Protection Bureau: get a preapproval letter · verified October 2026
06 · 10 questions
Condos and waterfront purchases.
Under Florida law, the seller must provide the declaration of condominium, articles of incorporation, bylaws and rules, the association's most recent financial statement and budget, the official FAQ sheet, any milestone inspection summary, and the most recent structural integrity reserve study. Review these before your review period ends, because they reveal assessments, reserves, and litigation.
Source: Fla. Stat. 718.503: developer and nondeveloper disclosure · verified October 2026
For resale condo contracts executed on or after July 1, 2025, you have 7 business days after both signing the contract and receiving all required documents to cancel in writing. For new construction from a developer, the window is 15 days. These rights are statutory, and the contract must state them.
Source: Fla. Stat. 718.503: developer and nondeveloper disclosure · verified October 2026
A SIRS is a study of a condominium's structural components, including the roof, load-bearing walls, foundation, waterproofing, windows, fire protection, plumbing, and electrical, required at least every 10 years for buildings three stories or higher. Florida law now requires full funding of these reserves for qualifying associations, which protects owners from sudden special assessments. Ask for the latest SIRS before you offer.
Source: Fla. Stat. 718.112: reserves and structural integrity reserve studies · verified October 2026
Buildings three stories and higher must undergo a milestone inspection by a licensed architect or engineer at 30 years of age, or 25 years if within three miles of the coast, and every 10 years after. If substantial structural deterioration is found, a Phase 2 destructive investigation follows. The building's compliance status is public and belongs in your due diligence.
Source: DBPR: condominium inspections and SIRS deadlines · verified October 2026
Review the most recent financial statement, the annual budget, the reserve accounts, and roughly two years of board meeting minutes, plus any pending special assessments or litigation. A building with fully funded reserves, low delinquency, and no major lawsuits is far safer than one cutting corners. The association's records are part of the required disclosures, and your agent can help interpret them.
A special assessment is a one-time charge levied on owners to fund repairs or capital projects beyond the regular budget. Yes, you can be liable for one after closing if the board approves it, which is exactly why the minutes, budget, and reserve study matter before you buy. A pending assessment should be disclosed and negotiated in the contract.
Source: Fla. Stat. 718.112: reserves and structural integrity reserve studies · verified October 2026
Waterfront purchases add seawall condition, dock permits, flood insurance, and waterway access rules to your due diligence. Check the seawall inspection if one exists, verify the dock and lifts have proper permits, confirm the depth and access of the waterway, and price flood and wind insurance before offering. These costs and conditions materially change the value of the property.
Source: Citizens Property Insurance: 2026 multiperil rates to drop statewide · verified October 2026
Penthouses and branded residences carry premium pricing, higher HOA dues for elevated services, and often stricter board approval, rental restrictions, and financing rules. The building's reserves and the brand's reputation become part of the value equation. A buyer's agent who works these buildings daily knows which projects hold value and which boards are difficult. See our penthouses page for more.
Source: Fla. Stat. 718.112: reserves and structural integrity reserve studies · verified October 2026
It depends on the building. Many associations limit rentals to a percentage of units, impose minimum lease terms, or ban short-term rentals entirely, and Florida law generally lets new rental restrictions apply to future buyers. Review the declaration, rules, and rental restrictions before you offer, and confirm whether the building allows Airbnb-style rentals at all.
Source: Fla. Stat. 718.503: developer and nondeveloper disclosure · verified October 2026
A condo owner holds a deed to the unit, while a co-op owner holds shares in a corporation that owns the building, and co-ops have stricter approval processes and different financing rules. Co-ops are rare in South Florida compared to the Northeast, but they exist, especially in older Palm Beach buildings. Know which structure you are buying before you choose a lender, because not all lenders finance co-ops.
07 · 8 questions
Foreign and out-of-state buyers.
Yes. There is no United States citizenship or residency requirement to own real estate in Florida, and foreign buyers purchase homes, condos, and land every day. Buyers without a Social Security number typically need an ITIN from the IRS, and some lenders offer dedicated foreign-national loan programs. Confirm the current requirements with your lender and closing attorney.
Source: Foreign buyer's guide to Florida real estate · verified October 2026
An ITIN is an Individual Taxpayer Identification Number issued by the IRS for tax administration, used by buyers who do not qualify for a Social Security number. You generally need one to obtain mortgage financing and to report income or sales tax, though some foreign-national loan programs and all-cash purchases do not require it. Your lender and CPA will guide the timing.
Source: Foreign buyer's guide to Florida real estate · verified October 2026
Yes, through foreign-national loan programs that use alternative credit documentation, with down payments typically of 20 to 35 percent and interest rates above conventional loans. Some programs require no SSN or ITIN at all. All-cash purchases avoid the documentation burden entirely, which is one reason so many international buyers in Miami pay cash.
Source: Foreign national and ITIN mortgages in Florida · verified October 2026
FIRPTA requires the buyer of U.S. real estate from a foreign person to withhold 15 percent of the amount realized and remit it to the IRS at closing, unless the seller provides a certificate of non-foreign status or an exemption applies. The withheld amount is credited against the seller's U.S. tax liability. Foreign sellers should plan for this in their net-proceeds calculation.
Source: IRS: FIRPTA withholding · verified October 2026
Florida's SB 264 restricts defined foreign principals from countries of concern, including China, Russia, Iran, North Korea, Cuba, Venezuela, and Syria, from buying agricultural land or property near military installations, with specific rules and exceptions. Buyers sign an affidavit at closing attesting compliance. This affects a narrow set of purchasers, but if it might apply to you, review it with a Florida attorney before signing.
Source: Akerman: updates on SB 264 · verified October 2026
No. Foreign nationals can own Florida real estate without a Social Security number. For financing and tax reporting you may need an ITIN, and for closing you will need proper identification and proof of funds. An experienced international buyer's team, including an agent, lender, and closing attorney, handles this every week in Miami and Palm Beach.
A power of attorney (POA) authorizes someone you name to sign closing documents on your behalf in Florida, and it is the standard tool for buyers who cannot attend closing in person. The title company will usually require a specific form and may accept a remotely notarized POA. Confirm the acceptable form with your title company well before the closing date.
At purchase, buyers pay Florida's documentary stamp tax on the mortgage and other standard closing costs; there is no state income tax in Florida and no separate foreign-buyer purchase tax. Property taxes apply annually to the assessed value. On a future sale, FIRPTA withholding may apply, and U.S. tax on gain depends on your situation, so a CPA or tax attorney should review the plan.
Source: IRS: FIRPTA withholding · verified October 2026
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