Florida Real Estate Condos – Market Update

For Canadians interested in investing their hard earned money on Florida realestate condos, there are a few things that they should know about when it comes to closing costs in the state of Florida. The standard closing fees when purchasing a condominium unit include attorney’s fee, commission of the broker, survey, inspection, appraisal, property taxes, and condominium unit association dues. If there are liens or a mortgage on the unit, the seller is also obligated to pay these as well.

Basic Setup of a Florida Condominium Unit

When compared to a single unit family property, condo unit owners do not own the interior of their properties, rather the property is owned as a whole by the condo community residents. These areas of communal ownership includes the land area, amenities such as swimming pools, lobbies, meeting rooms, exercise facilities, as well as the plumbing and electrical wiring as well. Based on the Florida Condominium Act, condominium unit owners need to elect a board of directors whose primary function is to manage the common property. All unit owners must strictly adhere to the rules and regulations set forth by their elected board representatives.

On the Part of the Buyer

Canadians that want to purchase Florida real estate condos need to understand that they have an obligation to pay the prorated share of the taxes of the property as well as all required condominium association dues. It is worthy to note that these property taxes must be paid each November of every year. The seller’s, as well as the buyer’s amount of taxes, depend on what month the closing commences. It is also noteworthy to say that buyers also are obligated to pay for the inspection.

On the Part of the Seller

For the seller, they must first pay off any outstanding mortgage dues before they can sell the property on closing. This money usually comes from the buyer of the property. Before the date of closing, the escrow officer would need to contact the mortgage company that handles the seller’s account, bank, or lender in order to corroborate the remaining amount that needs to be paid off. During the closing period, the seller pays off the rest of the loan before he receives the remaining payment for the property. The seller is also obligated to pay the prorated share of the taxes for the property, condo association dues, real estate transfer taxes, title insurance, commission of the broker, and the deed documentary stamps.

Closing Costs that can be negotiated

It is important for Canadians purchasing Florida real estate condos to know that they are not limited to the sale price of the property as the only parameter for negotiation; they can also bargain for the amount of closing costs. For instance, the seller may opt to pay all of the closing fees provided the buyer pays the full asking price of the property. If a buyer has issues about the facilities within the condo unit which are not part of the common property, the seller could offer to shoulder the inspection fees. While there seems to be a lot of leverage when it comes to who pays the closing costs, it should be emphasized that at the time of closing, each party must have intimate knowledge already on who pays for what aspect of the closing fees. All agreements, contracts, and terms must be properly documented and reviewed by all parties and their respective attorneys before closing is deemed final.

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