Once you’ve chosen a property, it’s recommended to reserve it to take it off the market while conducting legal checks and valuation. This reservation usually holds for about 30 days but may extend if there are any legal issues.
Deposit:
A standard deposit is typically $3,000, although for properties over $300,000, a 1% deposit of the purchase price may be required.
Refundable Deposits: Deposits may be refundable under the following conditions:
Financing: If mortgage issues prevent the purchase, the deposit may be refunded.
Valuation: Should the property’s valuation be lower than the asking price, you may either get a refund or negotiate the price.
Legal Issues: Refunds are possible if there are unresolved legal complications like debts or licensing issues.
Ensure these clauses are explicitly included in the reservation contract to protect your deposit.
Conduct thorough legal checks to confirm the property’s legality:
Verify property ownership and relevant licenses.
Review and finalize the private contract outlining the sale terms.
Ensure all transactions are completed in the presence of a public notary.
Confirm registration in the official property records and check for any discrepancies.
Investigate any outstanding debts or liabilities.
If you’re using a mortgage, an independent valuation is required:
The bank’s loan amount will be based on the lower of the valuation or the purchase price.
Valuations typically take 7-14 days. Our team can facilitate this process on your behalf in Miami.
Signing the “Contrato de Arras” legally binds you and the seller to the transaction:
• You’ll pay 10% of the purchase price as a commitment.
• If you withdraw after this, you lose the 10% deposit and the initial reservation deposit. Conversely, if the seller withdraws, you are typically entitled to a full refund plus an additional 10% of the contract value, depending on the terms negotiated.
The final step involves the official purchase at a Miami notary:
• Your lawyer will coordinate the notary appointment and liaise with all parties involved.
• If you cannot be present, your lawyer can represent you with Power of Attorney.
• Once all contracts are signed, and payments made, you will receive the property deeds and keys.
FAQs for Non-Residents Buying Property in Miami
Yes, deposits are generally refundable in Miami if:
Financing Issues: Mortgage complications prevent the purchase.
Valuation Discrepancies: The appraisal is lower than the asking price, allowing for refunds or negotiation.
Legal Problems: Unresolved legal matters such as debts or invalid licenses.
When buying property in Miami as a non-resident, the following legal verifications are typically required:
Title Search: Ensure the property has a clear title with no liens or disputes.
Property Taxes: Verify all property taxes are paid and up to date.
Zoning and Permits: Confirm the property complies with local zoning laws and building permits.
HOA Rules: If applicable, review homeowners association rules and fees.
Contract Review: Have a real estate attorney review the purchase agreement and contingencies to protect your interests.
In Miami, the property valuation process typically takes between 3 to 7 business days after the initial property inspection. This timeline may vary depending on factors such as the property’s location, complexity, and the appraiser’s schedule. It’s advisable to coordinate with your lender to ensure the valuation aligns with your mortgage application timeline.
The earnest money agreement in Miami protects both buyer and seller, showing intent to purchase and outlining conditions for refunding the deposit in case of issues like financing, inspections, or legal problems.
During the final property purchase in Miami, the buyer and seller sign the closing documents, funds are transferred, and the property title is officially recorded. The buyer receives the keys, and any agreed-upon contingencies, such as inspections or repairs, are completed. This step finalizes ownership and ensures all legal and financial obligations are met.
Non-residents can seek assistance from licensed real estate agents, mortgage brokers, and real estate attorneys in Miami. These professionals guide buyers through the process, handle legal and financial matters, and ensure a smooth property purchase.
Non-residents should consider:
Maximum Loan-to-Value (typically up to 70%)
Proof of income and credit history
Debt-to-income ratio (usually below 40%)
Mortgage rates and terms
Required documentation and legal approvals
Potential additional costs like insurance, taxes, and fees
