Need Help with USA/FLorida Property Purchase/ Paper Work

[Mz3bo]

Hi, I am seeking help from fellow 6 speeder friend who lives in the the usa / florida state. I am about to purchase a single family in florida. We made an offer, wich has been accepted by the buyer and the community as well. This is not a shortsale as the sales man told us. Now, here comes the part were, we canadians, are not familiar with. Once everything is approved, in canada, we have our Notary who works with us (to whom you pay about 1000$), that makes the paperwork and verify that the house has no subsequent debt and that does not own anything to no one. Once the paperwork completed, we send or make a check to "In trust of XXXX XXXX where XXX XXX is the name of the notary" and he/she deposit the amount into a "in trust" account he/she has. That account is protected by the order or quebec notary in case the notary goes bankrupt or disapper with our money. Once all of this done, he set up a meeting, with the buyer and seller, we sign paperwork and the seller give the key. That's it. Finally, the notary register the transaction with the authority. So far so good, that is not how it seems to be working in the USA. I have been told to send money to a broker account, wich is the one that is in charge of verifying if the house is clear of debt. Neways, it's quite complicate and I am afraid that I get screwed sending all my money to someone account. They look like decent real estates agents / brokers but again... Hope someone can describe a little more in depth what is a regular transaction and what I have to be careful about.... Thanks

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[sfhondapilot]

The sale should be handled through an escrow agent, usually a title company. The title company would normally issue you an owner's policy of title insurance. This will set forth the items of record impacting the property. The items could include property taxes, CC&Rs, liens, encroachments, etc. You should review the preliminary title report carefully. Your escrow instructions would indicate that you authorize the escrow to close when the title company can issue you an owners policy of title insurance with only certain exceptions (in your case, you would not accept any mortgage lien exceptions as you expect to take title to the property free and clear of any mortgage debt).

When escrow is scheduled to close, you will need to wire your money into the escrow company.

Your use of the term "broker" is a bit disconcerting. Confirm that there is an escrow and that the escrow company is a reputable company and that your title insurance company is also reputable.

[LilBadM]

Hello, I am in the Central Florida area and still in the residential mortgage industry. I have a few good title & escrow companies that I can recomend to help with your transaction. You definately need a title insurance policy, which is issued at the time of your purchase, that will guarantee there are no liens or other claims to your property. The cost of the title insurance and company varies slightly although the standard rate is about $5/ per thousand plus some settlement fees & etc. Let me know if I can help.

Jonathan

[dbusiness]

There is some good information already previously mentioned. Not sure how you are transferring the funds to the US but I would look into a bank that has branches in Canada and the US and who will give favorable rates on the currency conversion.
I have heard RBC is good but have never used there services.

Next thing is an inspection will need to be performed on the house if you are
financing the mortgage through the bank.

The transaction should be that a certain some of money for me 5000 was placed into escrow when the offer was accepted. There needs to be a clear warranty deed issued for the property which shows that there are no liens, or debtors attached to the property. Also check that the current owner does not owe any homeowners fees to the homeowners association if there is one. This may not show up as a lien on the property if they are only a couple of months behind.

In the contract for sale you must have everything listed that you are purschasing ie refridgerator, washer dryer, hurricane shutters, drapes or blinds, ceiling fans, light fixtures, and any similar items. You need to do this to protect yourself and define clearly what the seller must deliver to you under the terms of the sale.

Lastly you need to make the time to be in Florida for the closing. This is were you would bring the check from the bank or mortgage paperwork for the remaining funds. I would advise doing a walk through of the property on the day of the closing but prior to the meeting to ensure the property is in the condition described in the contract for sale. Then once the closing is complete I would stop by Home Depot or Lowes and purschase new exterior locks and change them prior to leaving.