[BUYING AND SELLING REAL ESTATE IN THE UNITED STATES - FLORIDA]
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undivided whole of the property and if one spouse dies, the property automatically passes to the other spouse). B. Commercial Property may be held as follows: 1. As the Owners pursuant to the forms set forth in A above, (highly unusual for commercial properties to be held in an individual’s personal name for liability purposes) 2. General Partnership/Joint Venture 3. Limited Partnership 4. LLPs 5. LLCs (has become the most common form of ownership) 6. Business Trusts 7. Business Corporations
C. Quitclaim deed – least protection for buyer 1. Contains no warranties of title 2. Typically used for gifting property or for situations where necessary to correct title defects or issues 3. Title companies do not like to insure quitclaim deeds CLOSING COSTS/ADJUSTMENTS A. Documentary Stamp Taxes (Doc Stamps) – levied on documents that transfer interest in Florida Real Property (i.e., deeds) 1. In most counties in Florida, the documentary stamp taxes are calculated at the rate of $0.70 per $100 of purchase price; in Miami- Dade County the rate is $0.60 per $100 of purchase price plus an additional $0.45 surtax per $100 of purchase price on documents transferring property other than a single-family residence 2. The documentary stamp tax and, if applicable, the surtax, is paid to the Clerk of Court when the deed is recorded; the Clerk then sends the money to the Department of Revenue. B. Title Insurance Commitment, Title Policy, and Municipal Lien Searches 1. The cost of the title insurance commitment is usually paid by Seller, even if ordered by the Buyer or Buyer’s attorney. 2. The premium for the title insurance policy is a promulgated rate based upon the purchase price for the property being purchased. The attorney for the party that is responsible for paying for the title
VII.
(i) C corporation (ii) S corporation
VI.
FORM OF DEED A. General warranty deed – most protection for buyer 1. Grantor warrants title for all times that the property has existed, including before grantor took title to the property 2. Most likely to see this form of deed in the residential context B. Special warranty deed – middle-level protection for buyer 1. Grantor warrants title for the period that grantor has owned the property 2. Most likely to see this form of deed in the commercial context
ILN Real Estate Group – Buying and Selling Real Estate Series
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