Florida Real Estate Closing Checklist: How to Avoid Common Pitfalls
Buying or selling real estate in Florida can be an exciting venture, but the process—particularly the closing—can also be complex. Mistakes can lead to unexpected delays, financial losses, or even legal disputes. At Smith Cors Law, we guide clients through contracts, title checks, and final paperwork to ensure a smooth closing day. In this post, we’ve compiled a detailed closing checklist to help you anticipate challenges and finalize your transaction with confidence.
1. Understand the Contract
Know the Key Terms
Your purchase and sale contract is the foundation of the entire transaction. Pay close attention to:
- Purchase Price and Deposits
- Verify the earnest money deposit amount, deadline for payment, and whether it’s refundable under certain conditions.
- Closing Date
- Check all critical dates, including inspection periods, financing contingencies, and final walk-through.
- Contingencies
- Financing contingencies, home inspection contingencies, or appraisal contingencies provide an exit route if certain conditions aren’t met.
Tip: Thoroughly review each clause to ensure it aligns with your expectations. If the contract is a standard “As Is” Florida Realtors/Florida Bar form, know what disclaimers and obligations it entails.
2. Conduct a Title Search and Obtain Title Insurance
- Title Search
- A thorough title examination identifies any liens, judgments, easements, or outstanding interests in the property. Ensure the title is clear, free from unresolved ownership disputes or hidden claims.
- Title Insurance
- Lenders typically require a lender’s title insurance policy. Buyers often opt for an owner’s policy, too, which provides coverage if a title defect is discovered later.
- Title insurance is a one-time premium that can protect you from significant losses.
Watch For:
- Unrecorded Liens: Contractor liens that weren’t recorded can still cause issues.
- Easements: Shared driveways, utility easements, or other property restrictions may affect how you use the land.
3. Secure Financing and Appraisal
- Loan Application
- Submit all required documents to your lender promptly: pay stubs, W-2s, bank statements, and any additional proof of income or assets.
- Keep an eye on your credit score; avoid making significant financial changes, such as taking out new loans or credit cards, before closing.
- Appraisal
- If you’re financing, an appraisal is usually mandatory. If the home’s appraised value is lower than the contract price, you may need to renegotiate or bring extra cash to closing.
- Final Loan Approval
- Once the lender completes underwriting, you should receive a “clear to close,” confirming all conditions are satisfied.
4. Schedule Inspections and Repairs
- Home Inspection
- Hire a certified inspector to evaluate the property’s structure, electrical systems, plumbing, roof, and more.
- Time is crucial: Florida standard contracts typically include a short inspection period (often 15 days or less).
- Negotiating Repairs
- If the inspection uncovers major problems, you can request repairs, a price reduction, or a credit at closing—unless the contract is strictly “As Is,” which often limits the seller’s obligations.
- Specialty Inspections
- For older homes, consider checking for termite damage, mold, or outdated wiring.
- If the property has a septic tank, a separate septic inspection may be wise.
5. Homeowner’s Insurance and Flood Insurance
- Homeowner’s Policy
- Florida’s storm-prone environment makes coverage essential. Compare quotes and ensure your policy is in effect by closing day.
- The lender may have specific coverage requirements.
- Flood Insurance
- If the property is in a FEMA-designated flood zone, your lender will likely require a flood insurance policy. Confirm if your zone is high-risk or moderate.
- Even outside high-risk zones, flood coverage can be prudent.
6. Prepare for Closing Costs
Typical Costs can include:
- Title Insurance Premium
- Attorney’s Fees
- Lender’s Fees (underwriting, origination, appraisal)
- Recording Fees
- Doc Stamps on the Deed (a Florida-specific tax)
- Prepaid Items: Property taxes and homeowner’s insurance escrow
Check your Loan Estimate and Closing Disclosure for final numbers. If anything is unclear or higher than expected, raise questions early.
7. Final Walk-Through
- Timing
- Usually done 24–48 hours before closing, the walk-through confirms the home’s condition matches contract terms.
- Check Repairs
- Verify that agreed-upon repairs or improvements are completed and that no new damage has occurred.
- Appliances and Fixtures
- Confirm that any items included in the sale (such as washers, dryers, or lighting fixtures) remain in place and are functional.
Caution: If significant issues arise during the final walk-through (e.g., HVAC failure or undisclosed damage), address them immediately with your attorney or real estate agent. You may need to delay closing or negotiate a credit.
8. The Closing Day Process
- Signing Documents
- A Florida real estate closing often involves signing the deed, mortgage, promissory note, and numerous disclosures. Double-check every name and property description for accuracy.
- Paying Closing Costs
- Bring a cashier’s check or arrange a wire transfer for your portion of closing costs and down payment. Personal checks typically aren’t accepted.
- Recording the Deed
- After signing, the deed is recorded in the county’s official records, legally transferring ownership to you.
- Keys and Possession
- The contract specifies when you get possession—often immediately upon closing, unless there’s a post-occupancy agreement with the seller.
9. Common Pitfalls and How to Avoid Them
- Last-Minute Funding Issues
- Maintain close contact with your lender to ensure no sudden changes occur in your loan approval.
- Undisclosed Liens
- Thorough title work mitigates this risk, but if it arises late, you may need to place an escrow holdback or delay closing until it’s resolved.
- Homeowner Association (HOA) Surprises
- Review HOA documents for fees, pet restrictions, or rental rules. Failing to understand these can lead to conflict or fines post-closing.
- Not Reading the Fine Print
- Skimming crucial documents can lead to misunderstandings or acceptance of unwanted contract provisions.
10. Working with an Attorney: Why It Matters
Florida law doesn’t mandate that you hire an attorney for real estate closings, but having experienced legal counsel often proves invaluable. Smith Cors Law can:
- Negotiate Complex Terms: If inspection reveals issues or if you need a special addendum for extended occupancy, an attorney ensures your interests are protected.
- Coordinate with Lenders and Title Agents: We verify each party’s compliance with Florida statutes and ensure the preparation of accurate documents.
- Resolve Disputes: Should a conflict arise, legal counsel can often find solutions that do not derail the closing.
11. Post-Closing Tips
- Change Utilities
- Transfer or establish electricity, water, and internet accounts in your name to avoid service interruptions.
- Update Address
- Notify the post office, banks, insurance companies, and state agencies (for driver’s license or voter registration) about your new residence.
- Review Your Deed and Policy
- Once the deed is recorded, confirm your name, property address, and legal description. Keep the policy documentation from your title insurer in a safe place.
Conclusion
A Florida real estate closing can seem daunting if you’re unfamiliar with the steps and costs involved. Still, careful planning, due diligence, and professional guidance can smooth the path to homeownership or a successful sale. By following this checklist—understanding the contract, conducting thorough inspections, acquiring proper insurance, and preparing for closing costs—you’ll minimize surprises and streamline the process.
At Smith Cors Law, we’re proud to offer tailored guidance at every stage, from drafting initial offers to handing over the keys. If you’re looking for an advocate who understands the intricacies of Florida real estate, we invite you to contact us and discuss how we can support your transaction.
Disclaimer: This material is intended for informational purposes only and does not constitute legal advice. For advice specific to your situation, please consult a licensed Florida attorney. No aspect of this advertisement has been approved by the Supreme Court of Florida.
Jason Smith, a Marion County native and former state prosecutor, has built a distinguished trial practice while also teaching criminal justice at Pasco-Hernando State College and Saint Leo University, and leading Jericho Road Ministries as Board President.
