Sarasota County

Long Term Rental (one month minimum)

The purchase of a second home in Florida is an important decision and should be well planned. It is essential for non- resident buyers of real estate in Florida to be properly informed of the applicable U.S. tax and estate law.

Ownership by an individual is the simplest and the most inexpensive way to own real estate in Florida, given that an individual is subject to lower tax rates than a company. However, your second home will never be eligible for the homestead exemption. There are at least two main disadvantages with this: the potential application of the U.S. estate tax upon death, and the unlimited liability of the individual.

Other alternatives include buying real estate by a U.S. Company, British Company or Partnership. The Florida revocable living trust allows the settler to be treated as the owner of the property. In the event of the trustee's incapacity, a substitute trustee named in the trust will manage the trust for the settler. Please contact a real estate attorney or tax counselor for more information.

Once you have found the perfect property for you and your family, there are some rules you need to be aware of. One rule is very important:  when you make the offer through your buyer’s agent the offer must be accompanied by a check (consideration). The first check is usually in the amount of $1,000 - $5,000 (depending on the price).

If the seller agrees the money will go into an escrow account. From this point on the clock is ticking and timelines are very important.

Inspection, second deposit, financing (appraisal) and closing are lined up like pearls on a string. Each step has its own time frame and there is little room to wiggle if you do not want to lose the property (and/or the deposit).

There are some important differences

The Sunshine State attracts millions of British visitors every year. What makes it so attractive? It is not only the blue sky and the balmy air anymore – attractive exchange rates and reasonable airfares made Florida an incredible popular holiday destination for many years, and probably many years to come.

It is by far not a surprise that every year quite a few British tourists decide to go a step further.

They are in the same boat like many tourists from other countries all over the world who have the desire to move to Florida part time or even permanently (if they can). We know exactly what we are talking about because we had the same feelings when we were vacationing in the Sunshine State, and eventually we were ending up buying a home …..and relocating to Florida for good.

It is true, the State if Florida makes it easy to buy property in paradise. There are no restrictions for foreign nationals at all. However, British buyers should be aware, that despite many similarities between both countries, there are still plenty of pitfalls and differences when it comes to the buying process. It is wrong to assume that because British and Americans speak the same language (or almost the same language?), that they understand each other when it comes to Real Estate Terms.

Usually non native speakers of English can avoid this pitfall. They need to learn the terms anyway, and by doing so, they will try to figure out what the exact meaning of the real estate term is. As a native speaker of English you assume that what you hear is what you get but the underlying meaning of the word can be quite differently from what you think. However, with a little research and support from right advisors, this pitfall can be safely avoided and the outcome will be satisfactory.

Also, prepare to be surprised how real estate is done in Florida. You will be dealing with a bus-load of people while doing the real estate transaction. All the different agents and brokers have a very specific role in the play… seller’s agent, buyer’s agent, title agent, property inspector, termite inspector, appraiser, and so forth. They all take you baby- step by baby -step through the process. All steps need to be done in the right order and in a timely manner.

Many buyers think they should avoid hiring a buyer’s agent because they could safe money. Well, on the first glance it seems to be a good idea, but think twice: First of all, the seller is always paying the commission - not the buyer. Therefore, if you would hire your buyer’s agent, he would be paid out of the commission the seller pays his agent anyway. The selling agent splits his commission with the buying agent (commission split). You would still not save a Single Dime if you waived your right to hire your own representative. In that case the seller’s agent would than get the whole commission instead. Believe us, he would open a bottle of Champaign.

Second, the seller’s agent is only loyal to his "boss", The Seller. He may not lie to you or distort any known facts, but it is not his duty to give you any useful guidance concerning the value for money or market value and so on. The listing agent has only a contract with the seller, not with the buyer.

So, why don’t you want to hire a knowledgeable buyer’s agent for free, who works for You and protects Your assets and knows the rules of the game? 

There is another big difference that is often the first surprise for British buyers: it is the business of finding properties to look at. You do not have to trudge around hundreds of real estate agents. All you need is only one Realtor® with membership to the MLS. The MLS (Multiple Listing System) is a central database, and virtually every listed home for sale or rent can be found on the MLS. Pictures, virtual tours, descriptions, dimensions, tax history, ownership history, sales terms, map view, aerial view…..you name it … the MLS has it. You are able to use the MLS on our website, although, we cannot grant you access to details like tax or sales records. You need to be a licensed Realtor® to get that information from the system.

Your buyer’s agent can pre-screen properties and send all the information to you before you book your flight. When flying to Florida you know already what to expect and you won’t waste too much of your precious time looking at properties that do not even interest you.

Buying in Florida is a simple and straightforward process- if you have the right people to guide you through this process there won’t be any obstacles in your way. Nothing is difficult – it is only different.

Let us finish with one final remark: There is something that is always the same, no matter where on the blue planet you are buying property.

The three most important factors are: location – location – location. Too many visitors are blinded by Florida’s beauty. The green water, the dark blue sky, the swaying palm trees and the ever shining sun make them think that is doesn’t matter where they buy their piece of paradise. It's beautiful everywhere isn't it?

Well, this is not true and it is most likely going to haunt them later. They might be very pleased with the pick of their location themselves but when they want to sell the house a few years later it may be a different story. The potential buyers will look through a set of different eyes.

Therefore, don’t forget about schools, shops, airports and other amenities. This might not be too important to you if you don’t have children, or are considering the location as a vacation home – but it might well have a major impact on the resale value if you later try to sell the property to a local family otherwise you may have to deal with a very limited target group.

And don’t forget about the beach. If you are thinking about renting the place seasonally in order to recoup some of your expenses you need to be close to the beach. Renters, especially when they are from Europe, also like biking paths, tennis courts, fitness studios and gated communities.