Home Sellers FAQs

How long does it take to hear back from lender on Short Sale request?
Within 30 days after you received a purchase contract offer from a buyer and the property is listed with a real estate agent.

What are the minimum Net Sales Proceeds requirements for Preforeclosure Sales?
According to HUD, the borrower must be willing to actively market his/her property for at least three months.
• For the first 30 days of marketing, lenders may only approve offers that will result in minimum Net Sale Proceeds of 88% of the as-is appraised Fair Market Value (FMV).
• During the next 30 days of marketing, lenders may only approve offers that will result in minimum Net Sale Proceeds of 86% of the as-is appraised FMV.
• For the duration of the marketing period, lenders may only approve offers that will result in minimum Net Sale Proceeds of 84% of the as-is appraised FMV.

What is the foreclosure timeline after Foreclosure Judgement?
From 3 to 4 weeks then it will go to Foreclosure Sale.

How can sellers transfer ownership to buyers?
There are several types of deed transfer. Here are some common ways:
• Special Warranty Deed – A deed in which the grantor (seller) warrants the title for the period of time in which he held title, but does not warrant it with regard to previous owners.
• Warranty Deed – A deed in which the grantor (seller) guarantees that he or she holds clear title to a piece of real estate and has a right to sell it to you. The guarantee (buyer) is not limited to the time the grantor owned the property – it extends back to the property’s origins.
• Quitclaim Deed – A deed given to convey whatever right, title, or interest the grantor may have, if any, in a piece of real property. The grantor does not warrant that he or she does in fact have interest to the property. It is a nominal $10 transaction between the grantor and the grantee.
• Personal Representative’s Deed – Used to transfer real property from the estate to the beneficiaries or purchasers.
• Trustee’s Deed – Trustee deeds are used to convey ownership of real estate that is being held in trust. Trustee deeds can be executed only by the trustee of the trust that holds the real estate being conveyed. Subject To’s can be placed within a Land Trust and the Land Trust can be conveyed through a Trustee Deed.
• Distribution Deed – Distribution Deeds are used when the distribution of the property can’t be determined from a person’s will. If this cannot be determined due to unclear instructions, or if the person never left a will.

What are the 3 types of Co-Ownership?
There are three ways that multiple owners can hold title to Florida real estate.
• Tenancy by the Entirety – It is only available to married couple. Property automatically passes to the surviving spouse upon the death of the first spouse without going through probate. Property is also protected against creditor’s lawsuit judgment against only one spouse.
• Joint Tenancy with Right of Survivorship – It is for unmarried people. Property is automatically transferred to the surviving owner upon the other owner’s death. However, property is not protected from the judgment creditors of one of the owners.
• Tenants in Common – Each joint owner owns a separate, divisible interest in the property. 

What is a Quit Claim Deed?
It’s the legal transfer of one person’s ownership to another person with no warranties. That means that no title insurance is necessary which saves you money.

Why don’t I need title insurance?
There’s no Florida law that requires title insurance.

Can I get title insurance on a property?
Yes, but there are additional costs (depending on the property) that would be passed on to the buyer.

When are property taxes due?
The gross amount is due by March 31st. Taxes become delinquent on April 1st. The following discounts apply for early payment:
• 4% discount if paid by end of November
• 3% discount if paid by end of December
• 2% discount if paid by end of January
• 1% discount if paid by end of February

What is the difference between Testate and Intestate?
• In Testate, there is a valid will.
• With Intestate, there is no valid will. The State will step in and determine how the assets will be distributed.
• With partial Intestate, only some of your assets are covered by a valid will.

What are the requirements for Cash-out refinancing?
• Maximum 80% Loan-to-Value
• Minimum 700 credit score
• Minimum 6-12 months title seasoning

What is Fee Simple?
A fee simple represents absolute ownership of land, and therefore the owner may do whatever he or she chooses with the land. If an owner of a fee simple dies intestate, the land will descend to the heirs.

What are the capital gains tax on the sale of a home?
Taxpayer Relief Act of 1997 allows you sell your primary residence and make up to $500,000 in profit tax free on capital gains if you’re married, $250,000 if you’re a single owner provided that the property you’re selling must be your principal residence and you must live in that principal residence for two of the five years before you sell it.

What is Community Development District (CDD)?
A district that by governmental approval may charge separate non-ad valorem special assessments for satisfying the debt obligations of the district (community) related to financing, maintaining, and servicing the districts (communities) improvements and/or services. Use the link below to perform a search to find each CDD, per county:

What is FHA Anti-Flipping Rule?
Starting in Jan 1, 2015, FHA will start to re-enforce its rule that Property Title must be seasoned for at least 90 days in order to qualify for a FHA Loan.

The materials available at this web site are for informational and educational purposes only and not for the purpose of providing legal, tax or accounting advice. You should contact your attorney or your accountant to obtain advice with respect to any particular issue or problem.