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Florida: Conveyancing

Overview

Conveyancing (or conveyance) is the legal term for processing the paperwork associated with transferring the deeds of ownership of a property (a conveyance is a deed or legal document which conveys a house from the seller to the buyer, thereby transferring ownership). In Florida, conveyancing usually comes under the heading of title services, which are provided by lawyers or more often by title insurance companies. The title company examines the public records to ensure that the seller owns the property, after which they issue a commitment that insures the property against a third party making a claim to it apart from the exceptions stated in the title policy.

Unlike in most other countries, the vast majority of home sales in Florida are completed without the direct involvement of a lawyer (with the exception of lawyers acting on behalf of title companies). However, the proving of the title, which usually takes 30 to 60 days, can be performed by a lawyer who’s regulated by the Florida Bar Association and licensed to do conveyancing for property transactions. A lawyer may also be a title agent for the purpose of issuing land title insurance. If you engage a lawyer, it’s advisable to hire one who’s a title insurance agent, in which case he can examine the abstract and do a title examination himself. Fees charged by title companies or lawyers include title certification, document preparation, closing and notary fees (a notary may be required to witness signatures on some closing documents). Before hiring a title company, compare the fees charged by a number of companies. A lawyer or title insurance company should check the following:

• That a property belongs to the seller or that he has legal authority from the owner to sell it;

• That there are no pre-emption rights or restrictive covenants over a property (such as rights of way) and that there are no plans to construct anything which would adversely affect the value, enjoyment or use of the property such as roads, railway lines, airports, shops, factories or any other development. Note that a lawyer may check only planned developments directly affecting the property itself and not those that might affect its value, such as a new railway line or freeway in the vicinity. Obviously a new freeway or railway that disturbs the peace of your home would be something of a disaster, although on the other hand, a new freeway junction or railway station within a few miles may enhance its value considerably. The local planning department can tell you whether there are any plans for major developments or public works in an area. Your lawyer should check the land use and zoning ordnance maps for the surrounding area and what (if anything) can be built there. For example, whether an apartment building, supermarket, gas station or factory can be built alongside a single-family house. You can find out who issues building permits from the building department at the local city hall or county administration building.

• Whether the land has been registered at the local land registry and a new property has the necessary building permits and planning permission (and that they are genuine), and that a building was built in accordance with such plans. All building work must comply with the Florida building code and be approved by a county inspector. If alterations or improvements have been made to a property, any necessary planning permission should have been granted.

• That there are no encumbrances or liens, e.g. mortgages or loans, against the property or any outstanding debts such as property taxes, community charges, electricity, gas, water/sewerage, telephone or any other debts. Note that certain unpaid debts on a property are inherited by the buyer. For example, if there’s an outstanding loan or taxes on a property, the lender or local authority has first claim on the property and has the right to foreclose on a property and sell it to recover the debt.

• Ensuring that a proper title is obtained and arranging the necessary registration of ownership. A lender will insist on title insurance to protect his interests. It’s also advisable (but not a legal requirement in Florida) for a buyer to have owner’s title insurance to protect against a future claim on the title by a third party. A title insurance policy issued to the lender doesn’t protect the buyer. Compare rates charged by various title insurance companies and check any limitations on cover when comparing fees. If a home has changed hands within the last few years it may be unnecessary to do a full title search and you may be able to get the company that issued the existing policy to issue a new policy at a lower ‘re-issue’ rate. A survey may be necessary to verify a property’s boundaries as detailed in the title, although it may be possible to get an updated document from the surveyor who carried out the previous survey.
A title insurance company may issue a summary of its findings a few weeks prior to closing called a ‘Commitment to Insure’ dossier, listing any defects or liens against a title. This is usually sent to a lender to verify the state of the title until a title insurance policy is issued after closing. The buyer should also receive a copy of the summary so that he can check whether there’s anything affecting the title with which he didn’t agree when he signed the purchase contract.

The cost of conveyancing for a home in Florida depends on whether you employ a local or overseas lawyer, or both. If you employ a foreign-based lawyer, i.e. a lawyer who isn’t based in Florida, you can expect to pay heavily for his services, e.g. around £100 or more an hour in the UK. Note that while engaging a lawyer based in your home country when buying a home in Florida may provide added peace of mind, you won’t usually receive any extra services and will simply pay more. Most experts believe that when buying property in Florida you should employ the services of an experienced, local lawyer (if you don’t speak fluent English, you may be able to engage a lawyer who speaks a language that you speak fluently).

© Survival Books Limited 2004

“Buying a Home in Florida” 2nd Edition, David Hampshire.

Reproduced with the permission of Survival Books Limited.

Further information on this topic can be found in “Buying a Home in Florida” 2nd edition, by David Hampshire.

For extensive information about buying a property in Florida, you can purchase this book at www.survivalbooks.net

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