Insider Guide to Real Estate Transactions in Florida: Intro, Part 1, Part 2

INTRO

You might be aware of the fact that real estate purchases and sales in the United States differ substantially from many other countries, and even from one US state to another.

In 1996, after a few years in business as a real estate broker, I put together a little flyer for my foreign buyers and sellers, explaining some of those differences.

Based on 30 years experience in the market as an independent Florida broker and consultant, the flyer has grown into a 16-page PDF, updated annually.  

Focused on laws and customs in the State of Florida, property transactions in other states will differ, but the brochure should still afford non-professionals a general overview on the key transactional elements and sequence of a property purchase or sale in the US.

I am delighted about the opportunity to share some of my knowledge, so over the next few months I will post chapter by chapter (excerpts or complete chapters, depending on length and detail) here on this blog.

All information comes from reliable sources and/or my own experience, however it is not warranted and – very important – can never replace professional advice. With any questions you may have (and I am certain you will) I cordially invite you to contact me any time.

Part 1: TYPES OF PROPERTY

 Considering a real estate purchase, the first question should be: what type of property fits my goals?  One generally differentiates between:

• Residential Real Estate,
• Commercial Real Estate and
• Business Opportunities

Among those, Residential refers only to:

• Single Family Homes
• Townhomes (row homes)
• Condominiums (owned flats)
• Duplex, Triplex and Quadplexes

Commercial includes, among others:

• Multifamily
• Warehouses
• Retail
• Office buildings
• Office condos
• Medical buildings
• Single Tenant (in various forms, for example restaurants)
• TIC (several tenants own one property)
• Land
• Hotels/Motels
• Farms
• Special use (e.g. Marinas)

Business Opportunities very often refer only to the business, not including the real estate it inhabits, such as:

• Restaurants
• Bakeries
• Gas stations etc.

A good broker or agent (see below) will assist you in defining your real estate investment goals and advise you in selecting a matching property.


Part 2: STEP BY STEP - THE TRANSACTION SEQUENCE

Real estate acquisitions in the US typically follow a specific structure:

     Broker selection
       |     
     Definition of transaction goal
       |     
     Property definition
       |     
     Property search
       |     
     Property selection
       |     
     Contract
       |      
     Inspections/due diligence
       |      
     Closing
       |      
     Improvements if necessary

The sequence may vary, but in general it will be altered only very little, independent of property or state. In following posts you will read about each of those steps in more detail.