Buying or selling a home in Florida follows a predictable path — offer, contract, inspection, title work, and closing — but the details are governed by Florida-specific contracts, disclosure rules, and taxes that catch many people off guard. Understanding how the standard contract works, what the seller must disclose, and what happens at closing can save you money and prevent disputes.
This guide explains the Florida home-sale process in plain English. It is general information, not legal advice; the right approach depends on your specific contract and facts, so consider consulting a Florida real estate attorney or title professional. For the broader picture, see our overview of real estate law in Florida.
The FR/BAR “AS IS” contract
Most Florida residential transactions use a standardized form created jointly by Florida Realtors and The Florida Bar — commonly the FR/BAR “AS IS” Residential Contract for Sale and Purchase. In the “AS IS” version, the buyer gets an inspection period during which they may cancel for any reason and recover the deposit, but the seller is not required to make repairs. There is also a standard (non-“AS IS”) version under which the seller agrees to repair certain defects up to a dollar cap.
The contract sets the purchase price, deposit (earnest money), financing and inspection contingencies, closing date, and which party pays which closing costs. Because real estate contracts must be in writing under Florida’s Statute of Frauds (Fla. Stat. § 725.01), an oral agreement to sell a home is generally unenforceable. Once both parties sign, the contract is binding, so read every contingency and deadline carefully before signing.
Seller disclosure duties
A common myth is that “AS IS” means the seller owes the buyer no information. Florida law says otherwise. Under Johnson v. Davis, 480 So. 2d 625 (Fla. 1985), a seller of residential property must disclose facts materially affecting the value of the property that are not readily observable and are unknown to the buyer. That covers hidden problems like roof leaks, prior flooding, sinkhole activity, active termite damage, or defective systems.
Sellers typically complete a written property disclosure statement, and federal law requires a lead-based-paint disclosure for homes built before 1978. “AS IS” shifts the duty to inspect for defects onto the buyer, but it does not allow a seller to conceal known latent defects — doing so can expose the seller to rescission or damages. Buyers should still use their inspection period fully, because anything readily observable is the buyer’s responsibility to catch.
Title insurance and marketable title
Florida buyers almost always obtain title insurance. A title agent or attorney searches the public records and issues a title commitment showing any liens, judgments, easements, or other clouds that must be cleared to deliver marketable title. An owner’s title policy protects the buyer against hidden defects in the chain of title — a forged deed, an undisclosed heir, or an unreleased old mortgage — that surface after closing.
Florida is a “notice” recording state under Fla. Stat. § 695.01, so recording the deed promptly in the county where the property sits is essential to protect the buyer’s interest against later claims. The title agent typically handles recording at closing. Who pays for the owner’s title policy varies by county custom and is negotiated in the contract.
Inspections, surveys, and contingencies
During the inspection period set by the contract, the buyer can hire a home inspector, and often a wood-destroying-organism (termite) inspector and a survey. In coastal and flood-prone Florida, buyers should also review the flood zone designation and obtain flood insurance quotes, since premiums can dramatically affect affordability. A four-point inspection and wind-mitigation report are frequently required by insurers for older homes.
If the contract is financed, an appraisal contingency protects the buyer if the home appraises below the purchase price. Inspection and financing contingencies have firm deadlines; missing them can mean losing the right to cancel and forfeiting the deposit. Track every date in the contract closely.
Closing and documentary stamp tax
In Florida, closings are commonly handled by a title company or a real estate attorney rather than a separate escrow company. At closing, the seller signs and delivers a deed — usually a general or special warranty deed — which is notarized and recorded. The buyer’s lender funds the loan, payoffs to existing lienholders are made, and prorations for property taxes and association dues are settled.
Florida charges a documentary stamp tax on the deed (Fla. Stat. ch. 201), generally paid by the seller by custom, plus documentary stamp tax and intangible tax on the mortgage, generally paid by the buyer. Miami-Dade County uses a different deed-tax rate. There is no state income tax in Florida, but these transfer taxes, recording fees, title charges, and prepaid items make up the bulk of closing costs. Because rates can change, confirm current figures with your closing agent.
Frequently asked questions
Does “AS IS” mean the seller can hide defects?
No. Under Johnson v. Davis, a residential seller must disclose known latent defects that materially affect value. “AS IS” only means the seller will not make repairs and the buyer must inspect for problems — it does not permit a seller to conceal known hidden defects.
Do I need a lawyer to close on a Florida home?
It is not required; title companies handle many closings. But a Florida real estate attorney is valuable for reviewing the contract, clearing title defects, handling probate or homestead issues, or resolving disputes. Complex or commercial deals especially benefit from legal review.
Who pays the documentary stamp tax on the deed?
By Florida custom the seller usually pays the deed’s documentary stamp tax (Fla. Stat. ch. 201), while the buyer typically pays the mortgage stamp and intangible taxes. This is negotiable in the contract, and Miami-Dade uses a different deed-tax rate, so confirm with your closing agent.
What is marketable title?
Marketable title is title free of significant defects, liens, or claims that would expose the buyer to litigation or impair the property’s value. The title search and title insurance commitment identify problems that must be cleared before closing so the buyer receives clean ownership.
Find a Florida real estate attorney
Whether you are making an offer, reviewing a contract, or clearing a title problem before closing, a licensed Florida real estate attorney can protect your interests and prevent costly surprises. Consider consulting one before you sign, and use The Florida Bar’s referral service to find counsel in your area. This guide is general information, not legal advice.