Frequently Asked Questions

How are your real estate closing attorneys’ fees structured?

Answer: Fees for real estate transactions are fixed and given to you up front. For most transactions, my fee will be about $995. 

Why do I need a real estate attorney for my Florida real estate closing?

Answer: You do not “need” a real estate attorney to close your Florida real estate transaction. A non-attorney title agent can close your real estate transaction, but there are significant advantages to an attorney closing your transaction and the cost is about the same. A real estate attorney can provide you legal advice, help with contract negotiations, draft amendments, and resolve legal issues, protecting you from potential risks.

What is title insurance?

Answer: Title insurance is insurance you can buy when you purchase your home. It protects your home from title defects that existed prior to you purchasing your home.

Is there different types of title insurance?

Answer: Yes. There are two types of title insurance, a lender’s policy and an owner’s policy. The lender’s policy only protects your lender while the owner’s policy protects you, the homeowner.

What does title insurance cost?

Answer: The cost of title insurance is set by the State of Florida. Therefore, the cost of title insurance is the same regardless of which title company or attorney you use to close your real estate transaction. The cost depends on the purchase price and you can use an online title insurance calculator to calculate the exact cost. As an example, if you buy a home for $400,000, title insurance would cost around $2,000 for $400,000 worth of coverage.

Does the buyer or seller pay for title insurance?

Answer: The party that pays for title insurance depends on the contract you use and the county the property is located. In general, the party who chooses the closing agent is usually the party that pays for title insurance.

Do I need title insurance?

Answer: If you are getting a mortgage, then your lender will likely require you to buy lender’s title insurance. Owner’s title insurance is always optional, but it is highly recommended.

Is title insurance different from homeowner’s insurance?

Answer: Yes. Title insurance is backward looking and protects your home from title defects that existed prior to you purchasing your home. Homeowner’s insurance is forward looking and covers damage to your home and assets in your home during the time you own your home.

How much money should a buyer put in escrow when buying a Florida home?

Answer: There is no hard and fast rule about the amount of an escrow deposit. Generally, 5-10% of the purchase price is a common escrow amount.

Sellers tend to feel comfortable with lower percentage escrow deposits if the property is expensive. For instance, a seller might be okay with a 1-2% escrow deposit in a multi-million dollar transaction.

What happens to the escrow deposit if a Florida real estate transaction cancels?

Answer: A Release and Cancellation of contract will need to be signed by the buyer and seller that specifies where the escrow deposit must be sent. If the Release and Cancellation is signed, then the escrow agent will release the escrow deposit pursuant to the Release and Cancellation. If one of the parties will not sign the Release and Cancellation and they do not agree on what happens to the escrow deposit, then the escrow deposit will sit in the escrow account of the escrow agent until the dispute is resolved or the escrow agent deposits the escrow deposit in a court registry.

What should I expect from my real estate attorney as a buyer during the real estate closing process?

Answer: Expect your real estate attorney to provide you legal advice; draft, review, and explain real estate closing documents; hold your escrow deposit in escrow; draft the settlement statement; facilitate the real estate closing by receiving your cash to close and disbursing it to the seller; and ensure that clear marketable title is passed on to you.

What is a HUD?

Answer: A HUD refers to a settlement statement, which includes all the closing fees, cash needed to close, closing proceeds, and other financial information.

How long does a Florida real estate transaction take?

Answer: It depends on whether the property is being purchased with cash or a loan. If property is being purchased with cash, then the transaction can likely be completed in about 3 weeks or so if there are no title or lien search issues. If the property is being purchased with a mortgage, then it will probably take 4-6 weeks. The timeline could also change if the property is an association that requires association approval before closing.

How much are Florida real estate closing costs for sellers?

Answer: Real estate closing costs for sellers is probably about 5-8% of the sale price.

What searches are needed for a real estate closing?

Answer: Title search, municipal lien search, and an estoppel is needed if your property is in an association. 

What is a title search?

Answer: A title search searches the public record to determine if there are any problems with the title of real estate. The search looks at the history of the real estate to make sure the title is clear and the seller has authority to sell.

What is a municipal lien search?

Answer: A municipal lien search checks to see if there are any city liens, county liens, property taxes owed, city utilities owed, permit issues, city special assessments, or code violations against the property.

What is an estoppel?

Answer: An estoppel is a document that is applicable to real estate closings where the real estate is part of a condominium, cooperative, or homeowner’s association. The estoppel includes information about association rules, assessments, special assessments, and outstanding balances.

Are there problems a title search cannot find?

Answer: Yes. It is possible for a title search to miss hidden issues. For instance, there could be fraud or forgery that was committed that cannot be seen from a title search.

Do I need to buy a survey?

Answer: If you are buying a condo, then you cannot buy a survey. You are not legally required to purchase a survey when buying a home, but lenders will often require a survey as part of their loan process. Even if it is not required, you should consider purchasing a survey when buying a home and the seller has not had a survey done in a few years.

What is the best way to add or remove someone from title?

Answer: The best way to add or remove someone from the title of your home will likely be by quitclaim deed.

What is a lady bird deed?

Answer: A lady bird deed is a type of deed that enables you to transfer real estate to beneficiaries when you pass away. Lady bird deeds can be an inexpensive and useful tool to avoid probate for real estate.

What is a quitclaim deed?

Answer: A quitclaim deed transfers real estate “as is,” which means that the grantor is not giving the grantee any guarantees or warranties as to the marketability of title. What that means is that if there are any title defects at the time of transfer, such as a lien, the property would be transferred with the title defect to the grantee and the grantee would have no recourse against the grantor.

What is a refinance?

Answer: A refinance is when you pay off your existing mortgage with a new mortgage.

What is a mortgage modification?

Answer: A mortgage modification, also known as a debt rescheduling, is a change in your loan’s terms. If you fall behind on your loan, your lender may offer to modify your loan so that your loan does not end up in foreclosure and you can get back on track with payments

What is a CD?

Answer: A CD is short for Closing Disclosure. A CD is a form of settlement statement that is usually used when the buyer is buying with a mortgage.

Can a real estate attorney help with disputes or issues after closing?

Answer: Yes, a real estate attorney can assist with post-closing disputes, such as boundary or title issues, through legal advice, negotiation, mediation, or court representation.

How much are Florida real estate closing costs for buyers?

Answer: Real estate closing costs for buyers will probably be about 2-5% of the purchase price.