Country Guides Country Guide: Miami

Date Published:

30/05/2008

Purchase Process

There are no restrictions to foreigners buying property in Miami, although owning a home does not entitle one to live permanently or work in the USA. In Florida, it is commonplace to buy direct from a developer or via an estate agent, known as a realtor or a real estate broker. All agents are licensed by the State of Florida, having taken and passed exams. When buying or selling a property, do so through an estate agent who is signed up to the Multiple Listing System (MLS). Statewide, all properties for sale are placed on the MLS and the realtor you approach will be able to show and sell to you any property on the system.

What are known as title companies will process the transaction through to completion. Title companies are licensed and are permitted to undertake legal process. Therefore, you will not need to engage the services of a solicitor. The conveyancing transaction (known as closing) usually takes around six to eight weeks. Should anything go wrong with the process, the title company can be held liable and sued if necessary. The title company’s fee is included in the purchase costs percentage figure.

Purchase Costs

Budget 4-5 per cent for all purchase costs and fees. Based on a £100,000 property you should expect to pay the following:

Exit Costs

On selling a property, capital gains tax (CGT) is paid at the rate of 15 per cent on the profit from a property sale. If you are a UK resident for tax purposes you will be liable to pay CGT in the UK too at the rate at which you pay income tax. A double taxation treaty between the UK and US means you will not pay CGT twice - in other words, in both countries.

Mortgage Status

Non-residents are generally able to secure a mortgage of up to 70 per cent loan-to-value (LTV) through a UK-based broker against a property in Florida. Repayment and interest-only mortgages are generally available. The maximum term of any mortgage is 30 years.