Part 1
Introduction
Overview
Condominium

Part  2
Type of Purchase
Questions & Answers

Part  3
Financing
Bank Requirements

Part 4
Using a Broker
Broker Agreement

Part 5
Purchase Contract

Part 6
Purchase process

Part 7
Cost of Purchase

Part 8
Time to Close

 

In addition to the purchase price which you will pay for the property, you will wish to know the expenses involved in purchasing property. 

All Cash Purchase: 

If you purchase the property without obtaining financing, your costs customarily will be as follows:

• Inspection Fees - $250 to $500 (residential } – 0.01% to 0.25% ( investment/ commercial depending upon the size and complexity of the property)
• Application Fees to Condominium Association - $100 Survey - $300 - $500
• Title Insurance - The State of Florida by law provides a minimum charge for title insurance policies, an amount called the "minimum promulgated rate". This rate is $575 for each $100,000 of value of the property under one million dollars. The rate decreases on a sliding scale for properties valued above one million dollars.
• Attorneys' fees - Attorneys fees are set by agreement with your attorney.  These fees customarily range between one half of one percent and one percent of the purchase price of the property.
•  Environmental Inspection - An environmental inspection usually is performed only in connection with the purchase of investment property. Fees range from $1,500 to $5,000 depending upon the size of the property and the types of uses to which it previously was put.
• Appraisal Fees - In a cash transaction, an appraisal usually is performed only in connection with the purchase of investment property. Fees range from $500 to $5,000, depending upon the size of the property and the complexity of its income and expenses.

Financed Purchase 

If you obtain a mortgage loan in connection with your purchase, additional expenses usually are paid in connection with the loan. 

• Underwriting fees - $250 to $500
• Document preparation - $100 to $300
• Discount points - This is an advance fee for the lender's agreement to lend the money. It may range between one percent and three percent of the loan amount.
• Florida documentary stamp tax and intangible tax. These are taxes which the State of Florida charges for the privilege of borrowing money. The documentary stamp tax on mortgages is 35 cents per $100.00 of the amount of the mortgage and the intangible tax on promissory notes is an amount equal to the face amount of the note multiplied by 0.002.
• Mortgagee title insurance policy. This is a title insurance policy for the lender. It usually is issued at a small additional charge of $150 to $250, plus the cost of any additional coverage which your particular lender may require.

The full amount of the purchase price and all expenses associated with the purchase are payable at the time closing of the sale occurs. 

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