Florida: Mortgage notes

Guidance notes for purchasing a property in Florida

1) Please ensure that you will have full title to the property on completion and that the appropriate documents are available for the lender.

2) With new properties, find out the date the property will be registered in your name(s), as the lender cannot lend on the security of the property until it has been registered.

3) Whilst all reasonable steps will be taken to secure the loan on your overseas property as soon as possible, delays may occur due to the Florida legal and administration system.

4) Check with the estate agent/lawyer that you are aware of the costs charged by the legal & government authorities for purchasing a property in Florida, noting that the lender will have their own legal costs for assigning the loan (the cost of which they will normally advise when they issue the mortgage offer).

5) In the USA we use Bonded Title Companies. They will check and clear title on yours and the Lenders behalf.

6) Please be aware that the Lawyer/Notary may be incorporating within his charges, costs for assigning the mortgage and you should establish with the Lawyer/Notary the actual cost before proceeding with a loan application.

7) It is advisable to arrange your mortgage finance before agreeing to purchase a property.

8) It is essential that you take the appropriate independent legal advice before signing the sales contract or paying a deposit, if purchasing a foreign property, as would be expected if you were purchasing in your own country. The bank will require a copy of this document to be forwarded with the relevant application form. However you are able to sign this contract with the clause “subject to mortgage finance” as the contract, once signed is legally binding.

9) All Florida mortgages should have a suitable life assurance policy assigned to them. It is not mandatory but strongly advisable. A bank account will be required.

10) All loans are offered in Sterling, Euros or US Dollars only – check for maximum loan to value for each currency.

11) Properties can be purchased either individually, in joint names, a maximum of four people or in the name of either a US or Offshore Company.

© Conti Financial Services Limited 2006

This article is reproduced with the kind permission of Conti Financial Services Limited.

For information and advice on overseas mortgages and residential finance in over 30 countries, contact Conti Financial Services Ltd on +44 (0) 1273 772 811 www.mortgagesoverseas.com