FLORIDA REAL ESTATE TRANSACTION LAW FLOWCHART

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Florida Statutes Chapter 742 – Determination of Parentage

PHASE 1: PRE-CONTRACT STAGE

STEP 1: BUYER PREPARATION

▸ Obtain mortgage pre-approval letter (recommended)
▸ Engage licensed real estate agent (F.S. §475)
▸ Define property criteria and budget
▸ Review buyer agency agreement terms

STEP 2: PROPERTY SEARCH & SELECTION

▸ Search MLS listings and conduct showings
▸ Review HOA/Condo documents if applicable (F.S. §720, §718)
▸ Verify property disclosures from seller
▸ Conduct preliminary neighborhood research

⚖ F.S. §475.25: Real estate licensee must disclose material facts and act in client’s best interest

PHASE 2: CONTRACT FORMATION

STEP 3: OFFER & NEGOTIATION

▸ Prepare purchase contract (FAR/BAR or FR/BAR form)
▸ Include earnest money deposit amount (typically 1-3%)
▸ Specify contingencies: financing, inspection, appraisal
▸ Define closing date and possession terms

STEP 4: CONTRACT EXECUTION

▸ Seller accepts, counters, or rejects offer
▸ Both parties sign contract creating binding agreement
▸ Effective date established (last signature date)
▸ Deposit earnest money per contract terms

⚖ F.S. §725.01: Contracts for sale of land must be in writing (Statute of Frauds)

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FLORIDA REAL ESTATE TRANSACTION LAW FLOWCHART

⚖ F.S. §501.1375: Buyer of new home has 3-day cancellation right

PHASE 3: DUE DILIGENCE PERIOD

STEP 5: INSPECTIONS & INVESTIGATIONS

▸ Order home inspection (within inspection period)
▸ Conduct specialty inspections: termite/WDO, roof, mold, pool
▸ Review survey or order new survey (ALTA preferred)
▸ Verify flood zone status (FEMA maps)

STEP 6: TITLE EXAMINATION

▸ Title company searches public records (60+ years in FL)
▸ Identify liens, encumbrances, easements, restrictions
▸ Review chain of title for defects
▸ Prepare title commitment/binder

STEP 7: HOA/CONDO DOCUMENT REVIEW

▸ Request HOA/Condo association documents
▸ Buyer has 3-day rescission right (condos – F.S. §718.503)
▸ Review budget, reserves, pending litigation, assessments
▸ Obtain estoppel certificate from association

⚖ F.S. §627.7842: Buyer must receive flood disclosure; coverage availability varies

⚖ F.S. §689.261: Radon gas disclosure required in all contracts

PHASE 4: FINANCING & APPRAISAL

STEP 8: MORTGAGE APPLICATION

▸ Submit formal loan application (if not pre-approved)
▸ Provide financial documentation to lender
▸ Receive Loan Estimate within 3 business days (TRID)
▸ Lock interest rate (optional)

STEP 9: PROPERTY APPRAISAL

▸ Lender orders appraisal from licensed FL appraiser

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FLORIDA REAL ESTATE TRANSACTION LAW FLOWCHART

▸ Appraiser inspects property and comparables
▸ Appraisal must meet or exceed purchase price
▸ If low: renegotiate, pay difference, or terminate

STEP 10: LOAN UNDERWRITING & APPROVAL

▸ Underwriter reviews full loan package
▸ May request additional documentation
▸ Clear-to-close issued when conditions satisfied
▸ Receive Closing Disclosure 3 days before closing (TRID)Lender orders appraisal from licensed FL appraiser

⚖ TRID (RESPA/TILA): Closing Disclosure must be received 3 business days before consummation

PHASE 5: PRE-CLOSING PREPARATION

STEP 11: FINAL PREPARATIONS

▸ Obtain homeowner’s insurance binder (required by lender)
▸ Verify utilities transfer arrangements
▸ Complete final walkthrough (24-48 hours before closing)
▸ Confirm property condition matches contract

STEP 12: CLOSING DOCUMENT PREPARATION

▸ Title company prepares closing documents
▸ Calculate prorations: taxes, HOA dues, rent (if any)
▸ Prepare settlement statement/Closing Disclosure
▸ Wire funds or obtain certified/cashier’s check

⚖ F.S. §627.7711: Homeowner’s insurance required; wind coverage separate in coastal areas

PHASE 6: CLOSING (SETTLEMENT)

STEP 13: DOCUMENT EXECUTION

▸ Review and sign all closing documents
▸ Buyer signs: mortgage, note, deed of trust, disclosures
▸ Seller signs: warranty deed, affidavits, 1099-S
▸ Both sign: settlement statement, transfer documents

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FLORIDA REAL ESTATE TRANSACTION LAW FLOWCHART

STEP 14: FUNDS DISBURSEMENT

▸ Buyer provides remaining funds due
▸ Title company disburses funds per settlement statement
▸ Pay off existing mortgages and liens
▸ Distribute proceeds to seller

⚖ F.S. §689.01:Deed must be signed, witnessed by two witnesses, and notarized

⚖ F.S. §201.02: Documentary stamp tax: $0.70 per $100 (varies by county for surtax)

PHASE 7: POST-CLOSING

STEP 15: RECORDING & TITLE INSURANCE

▸ Record deed and mortgage with County Clerk
▸ Pay recording fees and documentary stamps
▸ Title insurance policy issued to buyer/lender
▸ Buyer receives owner’s title policy

STEP 16: TRANSFER COMPLETION

▸ Keys and possession transferred per contract
▸ Update homestead exemption (if applicable) by March 1
▸ File change of address with post office
▸ Retain closing documents for records

⚖ F.S. §196.031: Homestead exemption up to $50,000; file with Property Appraiser

⚖ F.S. §95.11(2)(b): Title insurance claims: 5-year statute of limitations

KEY FLORIDA STATUTES FOR REAL ESTATE TRANSACTIONS

STATUTE	SUBJECT MATTER
F.S. Ch. 475	Real Estate Brokers and Salespeople Licensing
F.S. Ch. 689	Conveyances of Land and Declarations of Trust
F.S. §689.01	Deed Execution Requirements (witnesses, notarization)
F.S. §689.261	Radon Gas Disclosure Requirements
F.S. Ch. 718	Condominium Act (buyer rights, disclosures)
F.S. Ch. 720	Homeowners’ Association Act

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