Florida Real Estate FAQ

Buyers

Q. What closings costs am I required to pay at closing?
A. The payment of closing costs is a negotiable term under your real estate contract. However, it is customary in Sarasota County, Florida that the Buyer pay the following costs at closing:

1. Title Insurance related Costs. These include the fees to search and examine the title to the property, the cost of the title insurance policy, and the closing fee. (Please click here for closing costs estimator.)
2. Survey. It is generally recommended that a survey be purchased prior to closing for all properties other than condominiums. However, if the seller has a recent survey and is willing to sign an affidavit saying the property has not been altered, a new survey may not be required. If the property is in a flood zone, an elevation certificate will also be required. The price of a survey can vary depending on the size and location of the property. The cost of a typical residential survey ranges from @ $200 to $300
3. Wood Destroying Organism Report. The average cost is $45. We recommend that all buyers obtain one regardless of the age and construction of the home.
4. Recording Fee. The costs to record Deeds and Mortgages in the Public Records are $10.00 for the first page and $8.50 for each additional page. Most Deeds are less than 2 pages. The average Mortgage is 16-18 pages.
5. Costs Associated with Mortgage Financing. If you are financing your purchase, your lender will provide you with a Good Faith estimate of Closing Costs. The Estimate will include the above described costs as well as the Lender's costs. (See HUD website)

Q. What is Title Insurance and must I have it?
A. If you are financing your purchase, your lender will require that you purchase title insurance insuring the mortgage given at the closing. A simultaneous policy can be issued insuring the buyer for an additional $25.00. To find out more about title insurance, visit http://www.ticortitle.com/

Q. Must I hire an attorney for my closing?
A. Unlike other states, it is not a requirement that an attorney conduct your closing. However, since the cost of title insurance does not increase when an attorney represents you at closing, most buyers hire one. While title insurance companies are generally reliable and efficient, their services are limited to conducting the closing. Their employees are incapable of drafting, reviewing or interpreting your contract. In addition to providing those services, we can assist you in negotiating the terms of your contract. We can also assist you with a variety of other services after your closing. For example, we prepare Florida Wills for many of our satisfied real estate customers. (See Flabar.org)

Q. Must I be present for my closing?
A. No. Many of our clients are domiciled in other states or countries and purchase real estate in Sarasota for investment. We serve them either via email or Federal Express. Of course, we provide detailed instructions for proper execution of the documents.

Q. What types of claims would a Title Policy guard against?

A. There are many claims covered under a typical Title Insurance Policy. A few are listed below:

1. False impersonation of a seller or other persons previously in title
2. Forgery
3. Improperty executed Deeds
4. Deeds executed without a required spouse's signature
5. Fraud
6. Undisclosed heirs or descendants of former owners of your property.

Sellers

Q. What costs can I expect to pay at closing?
A. The payment of closing costs is a negotiable term under your real estate contract. However, the Seller generally pays the following fees:

1. Documentary Stamps on the Deed. This is equal to 70 cents per hundred dollars of the sales price.(Please click here for closing costs estimator.)
2. Any costs associated with clearing title defects. These costs may including obtaining and recording documents such as Affidavits, Satisfactions or Releases.
3. Attorney's Fees. If the seller hires his or her own attorney to review the closing documents, this charge will generally appear on the closing statement.

Q. What is a 1031 exchange and under what circumstances may a seller benefit from one?
A. A 1031 exchange is a vehicle under the Internal Revenue Code that allows a seller to use the proceeds from the sale of investment property for the purchase of replacement investment property. As long as the rules are strictly adhered to the procedure allows a seller to defer the payment of capital gains taxes. Please call our office if you require additional information.

Q. The buyer of my property has hired a home inspector and asked me to make numerous repairs to the property. Which repairs am I required to make?
A. The terms of your contract dictate which repairs are required. Your contract also specifies a time frame in which you must respond to the buyer's request. Please call our office if you would like assistance in interpreting your contract.

Refinances

Q. I am refinancing my home that I just purchased last year. Do I have to purchase title insurance again, and if so, why?

A. Regardless of the length of time you have owned your home, your lender will require that you purchase title insurance to protect the lender's interest. However, you will recive a re-issue credit if you provide us with your prior Owner's Title Insurance Policy. The re-issue credit could be several hundred dollars depending on a variety of factors. Some firms fail to advise borrowers of the availability of the re-issue credit. It is our policy to always issue our clients with a re-issue credit if one is available. The credit is given regardless of who issue your Owner's Policy.

Gibson, Kohl-Helbig, Wolff & Hric, P.L. represents clients located throughout the Sarasota, Florida area, including the communities of Osprey, Nokomis, Venice, Sarasota County, Manatee County, Charlotte County and all of the Gulf Coast of Southwest Florida.

Gibson, Kohl-Helbig, Wolff & Hric, P.L.
Real Estate Department

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