According to the latest National Association of Realtors’ Home Buyer and Seller Generational Trends Report, 24% of all residential home sales in 2017 were to single buyers who purchased their home without the financial or emotional support of a spouse or partner. NAR data finds 17% of home buyers are single females in this country and another 7% of home buyers are single males. Many of the single women buying homes are over the age of 62 years.
For more, read “Single women account for more real estate purchases than single men,” written by Kenneth R. Harney and published by the Washington Post on May 9, 2018. Here, the latest U.S. Census Current Population Survey is referenced for its findings that in 2017 single women bought 22.8% of the homes sold, “the highest on record.”
Given that a quarter or more of all home buyers are investigating buying a home solo, from a Florida real estate attorney’s perspective there are several things that the single man or woman should consider before closing on that home purchase. They include the following:
1. Choosing Between a House or Condo in Florida
Here in Florida, particularly South Florida communities in Miami-Dade County, Broward County, and Palm Beach County, there are a great many condominium units for sale, competing directly with single family homes for the home buyer’s interest.
Single men and women may find the option of living in a condominium inviting. After all, there are all those benefits of condo living. Condo owners enjoy amenities like swimming pools and tennis courts without the daily responsibility of personal maintenance and upkeep. Landscaping may be lush, but the individual condo owner does not have to mow the lawn.
For many singles, condos also offer tempting security features like controlled access; video surveillance systems; and regular security guard patrols of the property. Many single buyers may feel safer living in a condo tower than in a suburban house.
However, with condo living come the unique laws and regulations that apply to the condo lifestyle. Any single buyer looking to buy a Florida condominium should know about:
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Are you prepared for the Condo Board’s Emergency Powers if a Hurricane threatens your home?
A. Power of the Condo Board
Legally, the condo owner turns over some freedom when he or she buys a condo unit. This is because under Chapter 718 of the Florida Statutes, as well as their individual Condominium Declaration, Articles of Incorporation, and Bylaws, the Condo Board has great power to oversee and control the overall condo property, as well as some aspects of the individual condo unit.
While the directors who sit on the board are legally bound to act as fiduciaries to the condo unit owners, a duty that requires them to act with the highest degree of good faith, all too often Condo Boards exceed their authority or otherwise get into conflict with those who own units in the condominium.
Even if the Condo Board has a reputation for acting appropriately, a single buyer should consider the limitations on their freedoms as a condo owner (Can you own a dog? Can you have a grill on your balcony?). Single buyers need to consider what they might have to undertake to protect their rights if the Condo Board goes rogue.
For more, read:
- New Florida Condo Law: Bad Condo Boards Face New Criminal Charges; and
- Florida Condo Owners: When Can Owners Go Directly to Court and File a Lawsuit and Not Be Forced to Mediation or Arbitration For Claims Against A Condo Board or Association?
B. Expanded Condo Board Power during Emergencies (Like Hurricanes)
After Hurricane Irma, Florida condo boards were given expanded powers to act, once the Governor of the State of Florida declares a state of emergency exists. See Florida Statute 718.1265.
Under these Emergency Powers, the Condo Board can decide to shut down all utilities to the condo units (electricity, sewer, security). This effectively takes away any condo owner’s option to stay at their home and “weather out the storm.”
Likewise, the Condo Board can deny access to condo units, even to the owners (as well as any of their loved ones). The Board can also contract for any services it deems necessary to protect the condominium, making an individual condo unit owner or a group of owners responsible for payment.
Before buying a condo unit in an area known for weather state of emergencies and natural disasters, the single buyer should understand that condo ownership may mean being legally bound to the Condo Board’s decisions during the time of emergency (including becoming financially obligated to contracts entered into by the Condo Board).
2. Special Financing for Single Buyers Can Help Get Them a Home Loan
For those who are considering buying a home on their own, their income will be the only income source considered by the lender when evaluating whether or not to make a home loan. Some single buyers may assume that mortgage lenders will be less likely to lend to them because there is no secondary income stream to pay the monthly mortgage payments.
This may be true. Lenders in Florida may consider a single buyer as more risky than a married couple, since the single buyer is the sole source of income to cover repayment of that debt over the course of the loan.
However, the Federal Housing Administration (FHA) has a specific program that works to help singles get a home loan. Not only does the FHA help with financing by acting a guarantor on the debt, FHA loans can offer even better deals than conventional financing.
For instance, a FHA Home Loan may offer the single buyer a lower interest rate, which lowers the monthly payment for the single home buyer. The lower monthly payment may be enough to get the single home buyer to qualify for home financing, whereas a higher payment might block him or her from qualifying for another type of mortgage loan.
The lower interest rate also lowers the overall cost of financing. This is another advantage to the single home buyer.
FHA Loans also have lower qualifying credit scores than other mortgage financing (580). Finally, single buyers may only need to make a down payment of 3.5% of the purchase price on the loan.
For many single home buyers, FHA Loans may be the difference between whether or not they can buy a home, or whether or not they can buy the home that they want to buy. Lenders may not volunteer details about FHA Loans, however. Single buyers are wise to investigate about them on their own.
Visit the FHA website for details on FHA Loans.
3. Hidden Costs of Owning a Home
As a Florida homeowner, you will be responsible for the land and its improvements – and whatever happens there. You will need to budget for property taxes, of course. This will probably be handled at closing, and included in your monthly mortgage payment.
However, you will need to buy homeowner’s insurance coverage to cover for things like busted pipes in a hard freeze (that does happen in Florida!) or a leaky roof caused by storm damage. That insurance should be sufficient to cover for other possibilities, as well.
As a homeowner, you will be liable for any personal injuries sustained on your property. If your party guest slips and falls on your tile floor, then you may face a legal claim for his or her injury damages. The single home owner needs to be prepared (with insurance coverage and otherwise) for this possibility.
For more, read: Homeowner vs. Business: Are There Different Duties in Slip And Fall Accidents?
4. Be Wary of Real Estate Agents
Florida real estate agents are professionals who must be licensed by the State of Florida before they are legally allowed to represent sellers or buyers in residential real estate sales. However, single buyers are smart to be wary of real estate agents who seem to offer things that are too good to be true, or who seem to be offering legal advice.
Real estate agents are not lawyers, and in most instances they are not representing the buyer’s best interests in any showing, negotiation, or deal. Their goal is to sell properties in order to make their sales commission, and while some do so in an honorable way there are many real estate agents that fall to the temptation to take advantage of the inexperienced home buyer, particularly a single one.
For more, read:
- Disclosures to Home Buyers: Florida Statute 475.278 and the Real Estate Agent Relationship
- When Is a Florida Real Estate Agent or Broker Guilty of the Unauthorized Practice of Law?
- Real Life Examples of Florida Real Estate Agents Doing Bad Things.
5. Florida Real Estate Lawyer Can Help Single Buyer Buy Their Home
Having a lawyer help you with the goal of buying a home or condo as a single buyer can be to your advantage, and seeking the advice of an experienced Florida real estate attorney can be much more economical than you may think.
Having a lawyer to answer basic questions on a particular property or to advise on the current condo laws, or to review a particular condominium’s documents before the single buyer agrees to purchase, can be invaluable.
For more, read “6 Tips For First Time Home Buyers In Florida.”
Most Florida real estate lawyers, like Larry Tolchinsky, will offer a free initial consultation to answer your questions.
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