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I'd like to purchase a condo in Florida as a get away a few times a year. I'm in NJ and not sure about commuting, but my question has to do with procedures about the offer, inspection and closing since I live in NJ and it's a bit different. I understand Lawyers aren't used, so who protects you, The Realtor (and I know to use a buyer's agent), Title Insurance people, or who? How many days or when can I back out if something isn't right and get my deposit back? I hope I'm in the right Forum for this. Any information will be appreciated.
I'm on the east coast of Florida and represent dozens of second home, out of state purchasers every year. Some key points to consider are;
Know the rental restrictions in the condo complex you are interested in. If you plan to rent out the unit occasionally for some income, shorter minimum rental periods are better. Some have as much as one year minimums. Many agents won't bring this up or ask you whether you plan to mix personal use with rentals. Want to bring your pet? Better ask about pet restrictions.
Your inspection and right to cancel period is written into your contract by your agent. It's not uncommon here to ask for 14 days. During that time you may cancel for any reason and get your deposit back, UNLESS the escrow is being held by a lawyer or title company. If it is and the seller won't sign your cancellation, plan to have to hire a lawyer and/or go to court to force return of your deposit. That's not the case if a real estate broker holds your deposit.
The title company is not there to protect you. They simply do the title search, close the sale and write the title insurance which is paid for by the seller in Florida unless agreed differently in the contract. The vast majority of residential real estate deals in this state never have the involvement of a lawyer. A good agent will not have your backside exposed in the contract language. Ask questions.
Examine the financials of the association and look at the condition of the building/s. Obvious deferred maintenance could mean a looming special assessment. Very little money in the bank could mean that they assess every time the wind changes directions. Some associations operate on a slim margin with zero reserves and some have huge reserve accounts. If the monthly fees are low, it probably is the former type of association. Read the minutes of the last Board meeting and the rules and regs. Make sure your agent gets all these docs to you shortly after the contract is executed. If you have further questions about the association, ask for a Board member contact.
And, know what the unit is really worth, right now. Have your agent run comps and make sure they are actually comparable. A ground floor or side view unit in an oceanfront building is not a comp for a direct unit.
Expect competition for good, priced-right units. Inventory is super low here and good ones go quickly. If you're getting a mortgage, use a local lender and get the process started before you write an offer. Lenders will not loan on some complexes no matter your great credit. Good luck.
In my experience, most buyers don't use an attorney for title work but you can, the price is competitive, and they are handy to have if unusual or unexpected issues arise. They don't write the contract but they are available and that is comforting, if nothing else. You can work with a buyer's agent but you don't need a buyer's agent. Most agents in Florida are transaction agents, not single agents, as the phrase "buyer agent" implies. Transaction agents are just as useful to you as buyer agents so I would tell you that you should be more focused on finding an agent you trust and work well with than concerning yourself with the type of agency the agent's broker requires or allows.
With a resale, your contract will have a "condo addendum" that specifies that you want the seller to provide all of the current condo docs, rules, Q&As, and most recent year end financials. You have three days from the time you receive the info to review it and, if you find anything you don't like, you can give written notice, back out, and receive your earnest money deposit back in full. That is apart from the right to inspect. Your agent will walk you thru the process and explain it all to you. Ask questions and get answers until you feel comfortable.
While you don't need to but I always had a real estate lawyer represent us when we purchased a home. And with you being out of town, I would doubly do so to ensure a smooth transaction.
While you don't need to but I always had a real estate lawyer represent us when we purchased a home. And with you being out of town, I would doubly do so to ensure a smooth transaction.
Good luck!
Good luck indeed expecting a lawyer to "ensure a smooth transaction".
Good luck indeed expecting a lawyer to "ensure a smooth transaction".
I agree. Having an attorney does absolutely nothing to ensure a smooth transaction. In fact, their value is realized mostly when the transaction is no longer smooth! I prefer a buyer to use an attorney because I expect the attorney to have a unique perspective that I don't have. Most of the time, things go smoothly and there is no need for assistance but, in those instances where there are problems, it's great to have them right there AND, because they are already doing the closing, they will often give bits of assistance (nothing major, of course) at no additional charge.
It's important to note that I've worked with title people who are extremely competent and I've had the misfortune of working with an attorney or two who were beyond useless to the point of being an impediment.
I have been very lucky then as every time I used an attorney, it went smoothly. In fact the one time I didn't and relied on my real estate agent, it was a disaster.
I'm doing my own searching for property, on Trulia which I like, you can ask questions, so I do. Now I had a Realtor in mind to pursue this property I like. I told him that I got some answers from one of the agents online, and it happened to be the Listing Agent, so I asked away. I wouldn't call that "working with a Realtor" and the Realtor I picked is a buyer's agent. I didn't start until today with him. He asked me if I told the listing agent that I was working with an agent. I said no, at that point I was not "working with you", and I know that if I pursue anything, to stick with one agent as they work on commission. He told me he could do all the work and the listing agent could go to the Board to get the whole commission. I said if you're uncomfortable, to forget it, I'm in no hurry. I didn't think working with Florida Realtors is that frustrating and cutthroat.
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I prefer a buyer to use an attorney because I expect the attorney to have a unique perspective that I don't have. Most of the time, things go smoothly and there is no need for assistance but, in those instances where there are problems, it's great to have them right there AND, because they are already doing the closing, they will often give bits of assistance (nothing major, of course) at no additional charge.
