Buying Florida real estate as a foreign buyer

The contract and its deadlines

Most Florida residential sales use standard contract forms prepared jointly by Florida Realtors and The Florida Bar, often in an “as is” version that gives the buyer a period to inspect and to cancel, rather than obliging the seller to make repairs. The contract fixes the purchase price, the deposit and the escrow agent who holds it, the inspection period, any financing contingency, the deadline for delivering title evidence, and the closing date.

Periods are usually counted in calendar days, and a deadline that falls on a weekend or legal holiday generally moves to the next business day. Time is typically of the essence, which means a missed date can cost the buyer the right to cancel and, with it, the deposit. The dates should be written down the day the contract becomes effective, together with who must act by each one. Before signing, a buyer should also confirm how the deposit will be returned if the contract is cancelled within a permitted period.

Inspection

The inspection period is the buyer’s window to learn what is being bought. A general home inspection is usually accompanied by a wood-destroying organism inspection and, for insurance purposes, a four-point inspection and a wind-mitigation report, particularly for older homes. Insurers in Florida look closely at the age of the roof, the electrical and plumbing systems and the wind resistance of the building, and those findings can affect whether coverage is available at a workable cost. It is prudent to obtain an insurance quotation during the inspection period, not after it.

The title commitment

Before closing, a title agent issues a title commitment: a promise to insure title once listed requirements are met. It sets out those requirements, such as paying off the seller’s mortgage or recording a missing document, and the exceptions the policy will not cover, such as easements, restrictions and matters a survey would reveal. Each exception deserves to be read, since some affect how the property may be used. A survey and an owner’s title insurance policy protect the buyer against defects that the public records do not show.

This is also the moment to decide how to hold title: individually, jointly with a spouse, or through a company. Each choice has different consequences for liability, estate planning in two countries and taxes on a future sale. A buyer who will not attend closing in person can usually sign by power of attorney or remotely, provided the documents are prepared for that in advance.

Condominium and association documents

A great deal of South Florida housing sits within a condominium or a homeowners’ association. The declaration, bylaws, rules, budget and recent meeting minutes govern leasing, pets, renovations and the fees the owner will pay. Many associations also require approval of a buyer before closing. For a resale condominium unit, Florida law gives the buyer a short statutory period, after receiving the governing documents, to review them and cancel.

Since 2022, Florida requires milestone structural inspections for many older condominium buildings of three stories or more and structural reserve studies for significant building components. These reports, and any special assessments that follow from them, can be significant and should be requested and read before the inspection period ends.

FIRPTA on a later sale

The Foreign Investment in Real Property Tax Act, known as FIRPTA, matters most when a foreign owner later sells. The buyer in that sale is generally required to withhold fifteen percent of the amount realized and remit it to the Internal Revenue Service, with reduced or no withholding in limited cases involving lower-priced homes the buyer will live in. The withholding is a prepayment against the seller’s actual tax, not the tax itself, and an application for a withholding certificate can reduce it in advance. Planning for this at purchase, including obtaining a taxpayer identification number, makes the eventual sale smoother.

Wire-fraud precautions at closing

Real estate closings are a frequent target of email fraud. A criminal who gains access to an email thread sends altered wiring instructions that look genuine, and funds sent abroad to the wrong account are often impossible to recover. Wiring instructions should be confirmed by telephone using a number obtained independently, never one taken from the email itself, and any message announcing changed instructions should be treated as suspect until confirmed. Allowing extra time for international transfers, and for the bank’s own verification, avoids pressure on closing day. The same caution applies to the seller’s proceeds when the property is later sold.