Selling a Home in Florida? Here’s What You Need to Know Before Closing

When you’re selling your home in Florida, the period between accepting an offer and closing the deal can be both exciting and overwhelming.

As real estate attorneys serving Oviedo and Central Florida, we at Vollrath Law regularly guide sellers through this complex process. To help ensure your home sale goes smoothly, we’ve compiled this essential guide to what Florida home sellers need to know before closing.

Florida’s Disclosure Requirements

Unlike some states, Florida law requires sellers to disclose known defects that could materially affect the property’s value. This disclosure obligation comes from both statutory requirements and case law established in Johnson v. Davis (1985).

What must be disclosed:

• Material defects affecting the property’s value
• Known issues with major systems (electrical, plumbing, HVAC, roof)
• Water or moisture problems (including past flooding)
• Environmental hazards (mold, lead paint in older homes)
• Boundary disputes or easement issues
• HOA information and restrictions
• Additions or renovations completed without permits

While Florida doesn’t mandate a specific disclosure form, most real estate professionals use the Florida Association of Realtors’ standard disclosure form. Being thorough and honest in your disclosures helps prevent future lawsuits, as failure to disclose known material defects can lead to legal liability even after closing.

Title Issues That Could Delay Your Closing

Title problems are among the most common issues that delay or derail Florida home sales. Before closing, a title search will be conducted to ensure you can transfer clear title to the buyer.

Common title issues in Florida:

• Outstanding liens (mortgage, tax, mechanic’s, or HOA liens)
• Boundary or survey disputes
• Easements or encroachments
• Probate issues if the property was inherited
• Missing heirs who might have claim to the property
• Errors in public records

Working with an experienced real estate attorney early in the process can help identify and resolve these issues before they become deal-breakers. At Vollrath Law, we often conduct preliminary title searches for our clients to address potential problems proactively.

Closing Costs for Florida Sellers

When budgeting for your home sale, it’s important to understand the closing costs you’ll be responsible for as a seller in Florida.

Typical seller closing costs include:

• Real estate commission (typically 5-6% of the sale price)
• Documentary stamp tax on the deed (approximately $0.70 per $100 of the sale price)
• Title insurance (in most Florida counties, sellers traditionally pay this cost)
• Outstanding HOA fees and assessments
• Municipal lien search fees
• Property taxes prorated to the closing date
• Attorney fees

In total, sellers should budget for closing costs of approximately 8-10% of the sale price. Having this information upfront helps avoid unpleasant surprises at closing.

The Closing Process in Florida

In Florida, closings are typically handled by title companies or real estate attorneys. Here’s what to expect:

1. Before Closing Day:
   • The buyer’s lender will order an appraisal
   • A title search will be conducted
   • Property inspections will be completed
   • You’ll need to address any repair requests
   • You’ll need to gather necessary documents (deed, mortgage payoff information, etc.)
2. On Closing Day:
   • You’ll sign the deed transferring ownership
   • The closing agent will collect and distribute funds
   • You’ll provide keys, garage door openers, and access codes to the buyer
   • You’ll receive your proceeds, typically via wire transfer

While both parties don’t always need to be present at the same time (or even on the same day), coordinating the timing can simplify the process.

Final Preparations Before Closing

As closing day approaches:

1. Schedule a final walk-through repair verification with the buyer
2. Gather all documents related to home improvements, warranties, and manuals
3. Prepare your home by cleaning, removing all personal property, and ensuring agreed-upon fixtures remain
4. Make arrangements for moving on or before closing day
5. Have a plan for receiving your proceeds (wire transfer details, etc.)

What Most People Don’t Tell You About Selling a House in Florida

Selling your Florida home isn’t just about sticking a “For Sale” sign in the yard and counting your cash. There are a lot of other factors nobody mentions until you’re knee-deep in paperwork, wondering what you got yourself into.

Here’s what you need to know:

Non-US Citizens Face 15% Tax Withholding

Foreign sellers must navigate FIRPTA, which requires buyers to withhold 15% of the purchase price for properties over $300,000. This significant withholding often catches foreign nationals by surprise.

Both Spouses Must Sign the Deed

Even if only one spouse is on the title, Florida’s homestead laws require both to sign the deed. This requirement frequently delays closings when discovered late.

City Lien Searches Reveal Hidden Issues

Standard title searches miss important problems like unpaid utility bills, code violations, and open permits. A municipal lien search can uncover these potential deal-breakers early.

“As Is” Contracts Don’t Eliminate Disclosure Requirements

Sellers must still disclose known material defects, even with “As Is” contracts. Failure to disclose can lead to lawsuits years after closing.

Some Documents Still Need Physical Signatures

Despite electronic closings becoming common, certain documents still require “wet signatures” notarized in person under Florida law.

Property Taxes Are Paid in Arrears

You may receive a tax bill after selling if your property’s assessed value increases significantly, as tax prorations at closing are based on the previous year’s bill.

Seller Financing Faces Federal Regulations

Individual sellers offering financing must comply with Dodd-Frank Act regulations, including restrictions on balloon payments and requirements to verify buyer repayment ability.

Hurricane Season Can Delay Closings

Insurance binding restrictions during named storms and potential government office closures make hurricane season (June-November) a challenging time to sell.

Who Holds the Deposit Matters

Escrow disputes handled by real estate brokers typically require costly interpleader actions, while attorney escrow accounts may offer more efficient resolution options.

Post-Closing Occupancy Creates Risks

Staying in your home after closing creates a landlord-tenant relationship with potential insurance gaps and liability issues if disputes arise.

Selling to Foreign Buyers Requires Special Documentation

Lenders often require specific documentation for foreign nationals, which can affect your closing timeline if not addressed early.

Don’t go into your Florida home sale blind. This isn’t meant to scare you – just to save you from headaches, delays, and potentially expensive mistakes. A good real estate attorney who knows Florida’s property laws is worth their weight in gold. You’ll be glad someone was watching your back through all of this.

Avoiding Common Seller Pitfalls

To ensure a smooth closing process, be aware of these common pitfalls:

• Failing to clear out personal property – Remove all items not included in the sale before closing
• Missing mortgage payoff details – Request a payoff statement from your lender at least 10 days before closing
• Neglecting utility transfers – Arrange for utilities to be transferred on closing day
• Forgetting about prorations – Property taxes, HOA fees, and other expenses will be prorated at closing
• Not accounting for home warranty costs – If negotiated in the contract, sellers may need to provide a home warranty

Why Hiring a Real Estate Attorney Before Listing Can Save Thousands Later

While Florida doesn’t require an attorney for real estate transactions, having one review your contract before signing can prevent costly surprises. The standard contracts used by most realtors are designed to cover general situations but may not address your specific circumstances.

At Vollrath Law in Oviedo, our real estate attorneys can help identify potential issues before they derail your sale. From contract review to closing representation, we provide the legal guidance needed to protect your interests throughout the selling process.

Remember, the few hundred dollars you might spend on legal review before listing your home could save you thousands in potential disputes or litigation after closing.

Contact Vollrath Law today to ensure your Florida home sale proceeds smoothly from contract to closing. Our experienced real estate attorneys serve sellers throughout Central Florida, providing the local expertise you need to navigate Florida’s unique real estate landscape.

This blog post is for informational purposes only and does not constitute legal advice. For advice tailored to your specific situation, please consult with a qualified attorney.