Articles Posted in Real Estate Transactions

In the context of homeowners associations and condominium associations, an estoppel letter is a document that provides the buyer with the details of the assessments charged by the association.  It prevents the association from later claiming sums that are not reflected in the estoppel letter.

The debt service coverage ratio is generally described as the relationship between the Borrower’s annual net operating income as it relates to the mortgage payments in a year. For example, a property with net operating income of $125,000 and mortgage payments equaling $100,000 has a debt service coverage ratio of 1.25.

When somebody owns a property in Florida and then sells that property and reestablishes their homestead within two years, they’re entitled to port their tax savings from their prior home to their new home.

A title company facilitates the purchase and the sale. They cannot provide legal advice. The attorney, on the other hand, can provide legal advice and will represent your interests.  Given that a real estate purchase and sale is typically one of the most important events in a person’s life, it is strongly recommended that you…

The promissory note is the obligation to repay. It’s the I-O-U. In Florida, the mortgage is the lien on the real estate collateral that secures the note.

Title insurance protects you from any defects with title to the property. Essentially, there are two types of policies. A loan policy, which protects lenders. And an owner’s policy that protects the owners. Loan policies are usually required by all Lenders.  Owners policies are optional, but highly recommended.

Title insurance will not cover any defects that are listed as exceptions on your title policy. Please reach out to our office for a more detailed explanation for the standard exceptions and exceptions listed on the title policy jacket.

When a foreign person sells United States real property, that is a taxable event. The buyer is responsible for withholding. The rate of withholding generally is 15% (10% for dispositions before February 17, 2016).  Generally, FIRPTA withholding is not required  if the buyer  acquires the property for use as a residence and the sales price…

The deed is executed at closing, and the original is delivered to the county recorder’s office. Once recorded, the deed is returned to the closing agent, and the closing agent then delivers the deed to the buyer.

As opposed to a title search, a lien search is a search of unrecorded matter that could affect title to the property. Without a lien search, you would not know of any building violations, any open permits, or any unpaid utility charges. It is very important prior to purchasing any real estate in Florida to…