THE ULTIMATE GUIDE TO BUY A PROPERTY IN MIAMI
Our team is here to help you and we handle every steps throughout a real estate transaction. You can really rely and count on us.
For any questions you may have, we have the answer…
You wish to buy real estate in Florida however you are not aware about the real estate market in Miami ? Or perhaps, you are wondering if you should invest in your own name or in the name of a corporation?
We will cover these items in the following guide, and many others questions that you might have:
“International Buyer can purchase, sell or convey a property and be involved in a real estate transaction in the United States, without the permission from any entity or requiring a visa and work permit.”
THE OFFER TO PURCHASE
Once you have found the property of your dreams or at least the apartment or the house that fit your criteria, the next step is preparing the offer to purchase.
The offer must be drafted with a contract form which needs to be submitted to the seller. The Contract for Sale & Purchase is a standard document approved by the Florida Bar and Florida Realtors Association that can be used for all real estate transactions in Florida.
Once the contract is executed by both parties – the Buyer and the Seller – the offer will be accompanied with the initial deposit that is usually 5 or 10% of the purchase price. This amount needs to be wired into escrow or trust account (title company or escrow agent) within 3 days after the contract is fully executed.
“If your funds are located outside of the United States, the initial deposit must be made via international wire transfer into the escrow account.”
The total duration of a real estate transaction in Florida averages 45 days – but can average between 30 to 60 days – between the offer’s execution and closing.
“Real estate attorneys are the American equivalent of the European Notaries.”
RIGHT TO CANCEL
You have 15 days from the executive date on the contract to get your property inspected by a professional inspector licensed with the State of Florida. A comprehensive inspection protects your biggest investment and gives you a review and report on the physical structures, systems, components and condition of the subject property. If the inspection report is not satisfying, you can terminate the contract and recover the full initial deposit amount, or you can negotiate a price reduction with our help.
“The inspection is not mandatory, however, it is strongly recommended. Expect to pay around $200 inspection fee for a one bedroom apartment.”
BUYING AS AN INDIVIDUAL OR UNDER A CORPORATION
You have two options: either you can purchase a property as an individual or you can use a corporation .
Purchasing real estate in your own name can put your own assets at risk. You could be personally involved in lawsuits and suffer from the misfortunes that you might have to face as a property owner. Your personal assets are not protected and this particular solution is not advised for group investments.
Purchasing real estate using an LLC company is a way to protect your personal assets. This will also reduce the cost of estate taxes for estate planning purposes.
APPROVAL BY THE CONDO ASSOCIATION
In Florida, every condominiums well managed has a condo association. Its main purpose is to enforce the condo regulations among owners and to manage the building and common areas. Buyers must be approved by the condo association prior to closing.
In order to get this approval, a Buyer must fill in and submit a form along with a copy of their ID, work and employment status, as well as other relevant personal information. Management will then process your file, which can take up to 15 business days.
“The condo fees usually vary between $100 and $200 depending on the building”
Prior to the closing date – Buyer will be provided with a pre H.U.D (settlement statement) a document that itemizes all services and fees related to the purchase. Upon receiving the H.U.D., you will have to send a payment for the remaining balance to your real estate lawyer, who will deposit the funds in the escrow account. On the closing day, our team will do a walk-through inspection to assess the condition of the property as per the contract terms.
“All steps to purchase real estate in Miami can be remotely done except opening a bank account.”
LEASING YOUR PROPERTY
You are now the owner of a property in Miami – Congratulations! In order to collect monthly rent payments you need to open a bank account. Opening a bank account is a very simple and quick procedure – no appointment required however you need to be physically present. All you need is your ID.
If you wish to lease your property, please feel free to contact us. Whether you are looking for a short term or a long term lease, we will be able to provide you with the best services.