THE BUYING PROCESS IN MIAMI
- Once you have chosen your ideal property, the purchase process will commence in the following stages:
- Upon agreement of the purchase a Sales Agreement will be signed by both parties. This is a legally binding generic document approved by the local authorities in the State of Florida.
- A photocopy of the purchasers ID is attached to the Agreement. ( This can be forwarded at a later stage if required)
- Full Name, Address, Telephone Number, and Email Address is required from the purchaser.
- A Copy of the Agreement is issued to the buyer and the original is forwarded to the Developer by secure Fedex.
- The Deposit must be paid within 24-48 hours of the contract being signed. The deposit can be wired by Bank Transfer to the third party independent insurance body for secure holding.
- A confirmation email will be sent to the Purchaser to confirm receipt of the deposit within 1-2 working days of receipt. The official receipt will be forwarded 5-10 working days later depending on the bank transfer time.
- 15 days after the signing of the sales agreement and following receipt of the full deposit, the Developer will return an executed contract to be issued to the Purchaser with details of future payments and dates.
- All future payments are forwarded to the same independent body and within 2 weeks of each payment, an official receipt will be issued to the purchaser from the Developer.
Closure and transfer of the Title Deed is completed upon payment of the final instalment. The legal transfer of the title deeds are performed at the Attorney’s office in the State of Florida. A copy is issued to the purchaser and the original Deed is prepared and forwarded to the Buyer within a few weeks.
To purchase a property in Miami it is not necessary for the purchaser to be present. All procedures can be completed from Turkey and legal documents can be returned by secure Fedex.
A Power Of Attorney is also not a legal requirement but can be executed by the American Embassy in Turkey if preferred. It is recommended an independent lawyer in the state of Florida is used. ( Extra costs will be incurred by the purchaser in this instance)
If the purchaser would also prefer to use an independent Lawyer for assessment and control of the legal documents, a Florida Lawyer who is knowledgable on local law would be required. (Costs to be incurred by the purchaser at approximately 1,000 USD Maximum)
If the purchase is in a Company name verified authority of all legal parties is required. Company documentation and signatures of all partners are required.
- It is possible to set up a limited liability (LLC) company in Florida to purchase property for a fee of approximately 1,200 USD. The process takes approximately 5 days to complete and within 2-3 weeks a tax number will be issued.
- Annual Accountancy costs are approximately 600 USD.
- The purchase of 3 or more properties under a company name involve annual accountancy costs of 800-900 USD.
- The advantages of a company purchase include limited liability on insurance claims. A lower tax rate is liable and a higher level of expenses permitted.
- The disadvantage is that it is not permitted for you to reside in a company property.
PURCHASE COSTS INVOLVED:
The costs involved in both pre construction and re sale purchases are similar.
1.75% of the purchase price. This includes Buyers Tax, Stamp Duty and the Notary.
2 Months Maintenance Fee is also required as a non returnable fee on closure.
Net purchase price of Property →
Closing Fee:1.75% of Purchase price. Includes legal costs, Taxes, Power of Attorney and Notary Fees
Maintenance Fees: Non Returnable 2 Months Maintenance Fee. Payment required on closure.
(Approximate figure based on 64 Cents per sqf, average sized unit)
Total additional costs
Percentage additional costs to purchase price
There is no fee to be paid to the Broker from the purchaser, the seller incurs this cost.
VAT is also not payable on purchases in Miami.
The Developer will register the Buyers details with Water and Electric companies upon completion of the sale and the when the development has received it’s final habitation certificate. A small one off connection fee maybe applicable to the Buyer.
MONTHLY ONGOING COSTS:
Annual Property Tax is payable at 1.8% of the purchase cost per annum. Registration is automatic upon title deed transfer and payments are required annually between October – December.
If resident in the property for more than 6 months the amount is reduced to 1.7%.
Approximately $50- $75 USD Per Month.
Maintenance is due monthly as stipulated on each development.
Approximately $640 – $1,500 USD Per Month.
Electric if not included with the maintenance will be due, depending on usage.
Approximately $55 – $150 USD Per Month.
Contents Insurance is variable depending on the value of the property, contents and size of the property.
Approximately $65 – $125 USD Per Month.
RENTAL AND TAX REGUALTIONS:
When renting out your property in Miami, Income Tax will be due in the country of the property ownership. ie USA.
Annual expenses allowed include 3 % of the purchase price plus any actual expenses eg Management Fees, Maintenance, Insurance and Renovation costs.
After allowed deductions 15-20 % Tax will be due.
CAPITAL GAINS TAX:
All Non Residents / (Non Green Card Holders and Non US citizens)
Capital Gains Tax is due on all sales of properties irrelevant to the time purchased.
Calculated by the difference between purchase price and sale price, LESS any actual renovation costs on the property. The rate of tax is calculated at between 10-15%.
All Residents or holders of Green Card
In the previous 5 year period, if actual residency in the property exceeds a 3 year period, Capital Gains Tax is not applicable.
Please note that these are only the estimated costs and they are subject to variation.