Purchasing in the USA (Miami)
The process of property purchasing in Florida is set out by the laws of the state, but only an experienced realtor will help you to understand all the nuances, to decide, he will consult you.
1. Initially a contract is concluded, according to which the realtor will represent your interests in the process of purchasing and have a number of responsibilities towards you. The contract describes what property you are going to purchase. Accordinng this contract the realtor must find for you the property matching your parameters. It may be objects that are not in the MLS realtor system: from the developer-builder or directly from the seller, and also objects auctioned off by bank or court.
2. For fransaction registration the lawyer (counsel) is determined. The status of the counsel of Florida you can check on the special web site (http://www.floridabar.org/). The counsel processes all the documents on purchase or sale of property and he is the guarantor of purity of the deal. He also distributes all the financial resources from the purchase. There is a definite account (escrow account) for transactions of the deal at a law firm. There is only client’s money on this account, and the counsel has not right to manage the funds from this account without client’s notice and permit for the operation. All the disruptions of actions with escrow account are strictly punishable by law until revocation of the counsel’s licence and criminal offence, so the disruptions occur very rarely. The status of the counsel of Florida you can check on the special web site (http://www.floridabar.org/). There you can also complain about counsel.
3. Non-residents need to register their own company for property purchasing and to buy property under a company name. In future when selling the property you can minimize taxes (FIRPTA Withholding).
4. Starting a company in Florida is simple and not expensive. The forms are filled on the Internet and in 24 hours the company is registered under your name. Personal presence is not necessary.
5. Opening U.S. bank account. It is possible after the property putchasing. When you make a transaction, money transfer to the counsel escrow account. The account opening by the transaction is not obligatory. The account opening takes about 15-20 minutes. When openong an account, personal presence and passort are required. In subsequent property management (utilities, electricity) this is needed.
6. The type of the property, area and building are determined.
7. A written offer about purchase is sent to the seller. The contract-offer is prepared by the realtor, at the same time the buyer makes the first deposit (1-2% of the bid) on a special escrow account of the counsel, who then deals with transaction processing.
8. Negotiations with the seller are done through the realtor until an agreement between the parties. At the same time other terms of the contract are negotiated: time frames of transaction, financing…
9. Signing of the contract by the parties and making the second deposit. The final contract of the purchase is signed by the parties after complete agreement on the basic terms of the deal (price, deadlines, deposit). Deposit 5-10% of the agreed price is trasferred on a special escrow account of the counsel.
10. Inspection. It is carried out before the completion of the transaction. An inspector is invited to inspect the state of the object. It takes from 2 to 7 days. If there are no comments from the buyer, the transaction continues. Counsels determine the purity of the property title (from 1 to 2 weeks) and check if the property has any encumbrances (tax liabilities, arrears of builders, condo-associations, banks…). All the encumbrances must be removed before or at the moment of transfer of ownership for the property. Counsel’s task is to ensure that a “pure” object is passed to you. Buyer’s task is to obtain an approval for the settlement from the building association. In Miami the transaction of buy or sale of property takes from 2 weeks to 1 month.
11. Closing of the transaction and paperwork. The “closing” day of the transaction is agreed by the parties in advance when signing the contract. In the counsel’s office the transfer of ownership for the property and final settlements between the buyer and the seller and other third parties involved in the transaction (banks, condo-associations…) take place. Before signing the documents all the financial issues must be settled. The seller signs documents about transfer of ownership for the property to you. The buyer receives the keys to house or flat and becomes a rightful owner of the property in Miami.
