A Step-by-Step Guide for Florida Homebuyers
For many buyers buying in Florida for the first time, closing day is both exciting and daunting. Documents are signed, funds are transferred, and keys are exchanged, but what actually happens, and in what order? The Florida real estate closing process is structured and contract-driven, and knowing what to expect can make the experience far less stressful.
Who Is Present at a Florida Real Estate Closing?
In Florida, real estate closings are conducted by a closing agent, typically a real estate attorney or title company. At Berlin Patten Ebling, all matters are handled by our attorneys and supervised closing staff. Typically, buyers and seller sign documents separately at a time and location designated by the closing agent to facilitate closing.
In many cases, remote or mail-away closings are conducted when one or both parties may not be available locally for closing. It is important to note that in the case of a remote closing, original, recordable documents, must be received by the Closing Agent in order to close. Coordinating any travel plans with your closing agent prior to closing will ensure a smooth closing for everyone.
What Documents Are Signed at Closing?
Compared to many other states, the Florida real estate closing package is somewhat streamlined. For financed purchases, the buyer can expect to sign loan documents prepared by their lender, including the promissory note and mortgage, as well as closing documents prepared by the closing agent. Sellers are also obligated to sign several closing documents, most of which are outlined in the contract, including any affidavits needed to clear title.
Key documents signed at a Florida residential closing typically include:
- ALTA Settlement Statement (ALTA)
- Deed
- Title Status Affidavit
- Bill of Sale
- Survey Affidavit
How Are Funds Handled at a Florida Real Estate Closing?
Closing funds, including the buyer’s down payment and closing costs, are required to be received by the closing agent prior to or at the time of closing. Wire transfers are required for closing funds to ensure they are “collected funds” at the time of closing, and buyers are advised to verify wiring instructions directly with their closing agent by phone before sending any funds. Wire fraud targeting real estate closings is a known and serious risk. Never accept wire instructions through email or another unsecured method.
Once all documents and funds are received by the closing agent, the transaction can close and disbursements are made to all parties, including the seller, lienholders, real estate agents, and the closing agent based upon the settlement statement signed by all parties.
When does Closing occur and Keys Exchanged?
In Florida, typically the closing is considered completed when the closing agent received all funds as well as documents needed for closing, unless the specific contract provides for alternate arrangements. This means, a Seller is obligated to deliver occupancy and possession of the property, including providing the keys to the Buyer once the Closing Agent confirms the transaction is closed. It is important to note that it is receipt of funds by the Closing Agent that is required, not the Seller, so it is not uncommon for a Seller to turn keys over to the Buyer before seeing their proceeds arrive in their account.
