The Florida Real Estate Closing Process, Step by Step

From contract to keys

If you are buying or selling a home in Florida, you have probably been handed a stack of forms, deadlines, and unfamiliar terms, and you are not entirely sure what happens in what order. Take a breath. A Florida closing follows a predictable sequence, and once you see the map, the stress drops considerably. Here is how a typical closing moves, from signed contract to recorded deed.

1. Contract and opening escrow

Everything begins with a signed purchase contract. The contract sets the price, the closing date, who pays which costs, and the deadlines for inspections, financing, and other contingencies. The buyer's good-faith deposit (earnest money) is delivered to the settlement agent, who holds it in escrow (a neutral trust account) until closing. Opening escrow formally starts the file.

2. Title search and examination

The settlement agent orders a search of the public records and an examination of the chain of title. This step looks for anything that affects clear, marketable title: open mortgages, liens, judgments, easements, restrictions, probate issues, and errors in prior recorded documents. The result is a title commitment that lists what must be cleared before closing and what the title policy will and will not insure.

3. Curing title issues

If the examination turns up problems, such as an old mortgage that was never satisfied of record, a lien, a missing heir, or a boundary or legal-description discrepancy, those items have to be resolved before the deal can close cleanly. Clearing title can mean obtaining payoff and satisfaction documents, releases, corrective instruments, or estate paperwork. Where legal or curative work is needed, the affiliated Law Offices of Thomas G. Sherman, P.A. handles the legal side; the title agency itself does not give legal advice. Sellers can keep this stage short by starting early; see Selling Your Florida Home: Title Steps That Keep Your Closing on Track.

4. Lender and closing-disclosure preparation

If the buyer is financing, the lender underwrites the loan, orders an appraisal, and prepares the loan documents. For most consumer mortgages the lender issues a Closing Disclosure that itemizes the loan terms and the buyer's closing figures, and there is a three-business-day review period before signing, so you have time to confirm the numbers. The settlement agent coordinates closely with the lender so the loan numbers and the settlement statement line up.

5. The settlement statement

The settlement agent prepares the settlement statement, the master accounting of the transaction. It shows the purchase price, the deposit, the loan, prorations for taxes and any association dues, documentary stamp taxes, intangible tax on the mortgage, recording fees, title premiums, and every other credit and charge for both sides. In most Florida counties the seller customarily pays documentary stamp tax on the deed, and the buyer pays documentary stamp tax on the note and intangible tax on the mortgage, but the contract controls who pays what. Both buyer and seller review their figures before closing. For an estimate beforehand, our Florida title and closing-cost calculator gives an itemized preview.

6. Closing and signing

At closing the parties sign. The seller signs the deed and the documents transferring ownership; the buyer signs the loan documents and closing paperwork. Both parties bring government photo ID. Buyers bring cleared funds by wire, since Florida's good-funds rule requires collected funds before the settlement agent can disburse. Entity sellers, trustees, and out-of-state or foreign sellers should ask early what additional authority or tax documents will be required, so nothing surfaces at the closing table. For a full checklist, see What to Bring to Your Florida Closing.

7. Funding, disbursement, recording, and the policy

Once documents are signed and funds are confirmed in escrow, the settlement agent records the deed and any new mortgage in the county's public records. Florida is a race-notice state, so recording is what protects the buyer's and lender's priority against later claims. After recording, the agent disburses the proceeds, paying off the seller's existing mortgage and liens, paying the seller the net, and paying the various closing costs. The title insurance policies are then issued.

Certain non-financed purchases of residential property by legal entities or trusts also trigger a federal reporting filing by the settlement agent under the FinCEN Residential Real Estate Rule. Where it applies, we handle the filing.

A word on wire fraud

Wire fraud is the single biggest avoidable loss in a Florida closing. Criminals impersonate title agents, lenders, and even attorneys, and send spoofed emails with fraudulent wiring instructions. Union Title Services will never email you new or updated wiring instructions, and we will never change our wire information mid-transaction by email. If you ever receive anything that looks like a change, stop, do not reply, and call our office directly at 305-444-4508 to verify.

The neutral role of the settlement agent

Throughout, the Florida title and settlement agent is the neutral party, providing the title and settlement services that carry a closing from contract to recording. The agent does not represent the buyer against the seller or the lender against the borrower. Its job is to confirm clear title, hold and account for every dollar, follow the contract and the lender's instructions exactly, and complete the transfer so each party gets what the contract promised. That neutrality is what lets everyone rely on the same set of figures and the same closing.

Forty years of Florida closings have taught us that the smoothest files are the ones where the parties understand the steps before they reach them. If you are closing on a Florida property in the next sixty days, or you simply want a clearer picture of your costs, call Union Title Services at 305-444-4508 or use our Florida title and closing-cost calculator for an itemized preview.

Have a question about where your file stands or what a given step involves? Contact Union Title Services and we will walk you through it.