Real Estate Law Delray Beach, FL

Florida real estate transactions explained

Florida is one of the states where a real estate attorney typically prepares and reviews closing documents rather than a settlement agent. The attorney handles title examination, contract review, document preparation, coordination with lenders and title insurers, and the actual closing itself. For Delray Beach transactions, the buyer and seller each often retain their own counsel, particularly for higher-value properties, complex transactions, or unfamiliar buyers and sellers.

Key elements of a typical Delray Beach real estate transaction:

Contract review. The standard FR/Bar contract (or similar) sets the framework, but addenda, financing contingencies, inspection periods, and seller disclosures vary by transaction. Counsel reviews these for the represented party and identifies issues before they become disputes.

Title examination and insurance. A title search identifies prior ownership, liens, encumbrances, and other matters affecting clear title. Title insurance protects against defects in title that weren't identified or couldn't have been identified. In Palm Beach County, the seller customarily pays for the buyer's owner's policy; the buyer pays for the lender's policy when financing.

Due diligence. Inspection periods, condo and HOA document review, estoppel letter procurement, lien search, property tax verification, and (for commercial property) environmental assessment, lease review, and operating statement verification.

Closing. Document preparation, coordination with the lender, settlement statement (closing disclosure) reconciliation, recording of the deed and mortgage with the Palm Beach County Clerk, and disbursement of funds.

Our piece on West Palm Beach real estate closing costs covers the buyer and seller cost breakdown in detail.

Delray Beach real estate transaction profiles

Delray Beach's market creates several distinct transaction patterns.

Northeast snowbirds and seasonal buyers. Delray Beach has one of South Florida's most active seasonal-resident markets, with substantial buyer flow from New York, New Jersey, Pennsylvania, Massachusetts, and Connecticut. Many transactions involve out-of-state buyers who never travel to Florida for closing, requiring remote online notarization (RON), power of attorney coordination, and remote document delivery. Multi-state coordination with home-state counsel is common for higher-value transactions.

Atlantic Avenue downtown properties. Delray Beach's revitalized downtown along Atlantic Avenue includes mixed-use buildings, residential condos above commercial, boutique hotels, and substantial restaurant and retail property. Transactions often involve commercial lease review, mixed-use zoning verification, parking and easement coordination, and (for ground-floor commercial) tenant lease assumption or assignment.

Beachfront and Intracoastal condos. Delray Beach has substantial coastal condo inventory, particularly along A1A and the Intracoastal Waterway. Condo transactions require careful review of association documents, financial condition of the association, reserve fund status, pending special assessments, and the post-Surfside structural safety inspection framework. Florida law now imposes specific milestone inspection requirements for condo buildings over a certain age and height.

Country club and gated community properties. Communities like Mizner Country Club, Hamlet, Delaire, and Polo Club Boca Raton have specific transfer rules: board approval, transfer fees, equity certificate requirements, and (in some communities) age verification. These need to be addressed during due diligence rather than discovered at closing.

Short-term rental investment property. Delray Beach has an active short-term rental market, particularly for properties suited to seasonal vacation rentals. Investment property transactions require verification of zoning permissibility, HOA rules permitting short-term rentals, county registration status, and (for properties currently operating as rentals) review of existing bookings and operational coordination through closing.

Foreign seller transactions. Delray Beach has substantial property ownership by Canadian, Brazilian, Argentine, and other foreign individuals. When a foreign owner sells, FIRPTA withholding rules require the buyer's closing agent to withhold 15% of the sale price (with some exceptions) for transmission to the IRS. Proper FIRPTA handling is essential to avoid penalties for the buyer.

Florida-specific transaction considerations

The biggest real estate transaction mistakes Delray Beach buyers and sellers make

Skipping condo and HOA document review. Florida condo and HOA documents are dense, often hundreds of pages, and contain provisions that can substantially affect ownership: rental restrictions, age requirements, board approval for sales, transfer fees, assessment liability for prior periods, and special assessment voting rules. Buyers who don't read the documents (or have counsel review them) routinely discover restrictions post-closing that affect intended use.

Ignoring post-Surfside milestone inspection status. Florida law now requires milestone structural inspections for condo buildings 30+ years old (25+ within 3 miles of the coast). Buildings with deferred inspections, identified structural issues, or pending special assessments to fund repairs can substantially affect property value and financing availability. Status should be verified during due diligence, not after closing.

Missing FIRPTA withholding on foreign seller transactions. When a foreign seller transfers US real estate, the buyer's closing agent is required to withhold 15% of the sale price for transmission to the IRS, subject to limited exceptions. Failure to withhold makes the buyer personally liable for the unpaid tax. Identifying the seller's tax status during contract review is essential.

Not coordinating short-term rental operations through closing. Properties operating as active short-term rentals at the time of sale have confirmed bookings, deposits held, and ongoing property manager relationships that need to be addressed in the contract: which party gets bookings after closing, how prepaid deposits transfer, and what happens to property manager contracts.

Overlooking pending special assessments. A buyer can be liable for pending or anticipated special assessments on condo or HOA property. Estoppel certificates show current assessments but may not capture future assessments that have been discussed but not formally adopted. Asking direct questions during due diligence prevents post-closing surprises.

Why work with Kelley, Grant & Tanis, P.A.

Jerron Kelley leads the firm's real estate and title insurance practice, with substantial experience in residential and commercial closings, contract negotiation, condo and HOA transactions, and complex multi-party real estate matters across Palm Beach County. Full attorney bios on our attorneys page.

Our offices are in Palm Beach County, both convenient for Delray Beach transactions:

• Boca Raton Office: 370 Camino Gardens Blvd., Suite #301, Boca Raton, FL 33432 (closest to Delray Beach, approximately 15 minutes south)
• West Palm Beach Office: 1645 Palm Beach Lakes Blvd, Suite #1200-3, West Palm Beach, FL 33401

Delray Beach real estate transactions are handled either in person at our Boca Raton office or remotely. For seasonal buyers and out-of-state sellers, remote closing via remote online notarization (RON), powers of attorney, and remote document coordination is routine. Many local buyers and sellers prefer in-person closings, which we also handle.

Real estate transactions integrate with the firm's title insurance, estate planning, asset protection, and association law practices.

Frequently Asked Questions