For most transactions, this rule will not meaningfully change the closing process. However, for certain cash purchases involving entities or trusts, there is now an additional compliance step that must be handled properly.

By Michael Infanti, Real Estate Attorney and CEO of Preferred Settlement Services

What is the FinCEN Rule?

The Financial Crimes Enforcement Network, a bureau of the

, has implemented a rule requiring reporting for certain residential real estate transactions. The purpose is to increase transparency and prevent the use of anonymous shell entities to launder illicit funds through U.S. real estate.

The rule requires disclosure of beneficial ownership information in specific non-financed residential purchases. It is not a change to contract law, an inspection requirement, or a tax. It is a federal reporting obligation.

When Does the Rule Apply?

The rule generally applies when residential real property is being purchased without an instituational lender and the buyer is a legal entity or trust rather than an individual purchasing in their personal name.

If a traditional bank loan is involved, the rule typically does not apply because financial institutions already conduct anti-money laundering compliance and reporting. In short, financed transactions are usually unaffected. Cash purchases by entities or trusts require closer review.

What Must be Reported?

When applicable, certain information must be reported to FinCEN, including the identity of individuals who ultimately own or control the purchasing entity, beneficial ownership details, and specific transaction information. The report is submitted through a secure federal filing system. This information is not recorded in public land records. It is reported directly to the federal government.

Who is Responsible for Filing?

The rule designates a reporting person, typically the settlement agent or title company handling the closing. Realtors are generally not responsible for filing the report. However, agents should expect that in applicable transactions, buyers may be asked to provide additional identification or documentation so the requirement can be satisfied. When identified early, the process is typically straightforward.

Will this Delay Closings?

When addressed proactively, it should not. If overlooked until the last minute, it could. As with most compliance matters, early identification allows reporting to occur alongside the normal closing workflow.

What Should Realtors Do?

In most cases, very little. It is helpful to identify early whether the buyer is purchasing through an LLC, corporation, or trust, flag cash transactions, involve the title company early when an entity is involved, and prepare buyers for possible documentation requests.

Compliance in Context

The FinCEN reporting rule is a compliance requirement that becomes simply another step in the closing process when handled properly. Most transactions will proceed as they always have. For those that fall within the rule, awareness, communication, and coordination with your title partner are key. When managed correctly, the process should remain smooth and predictable.

The post Cash Deals Are Changing: Understanding the New FinCEN Rule first appeared on Preferred Settlement Services.

Woo Hoo, you’ve made it! You’ve found your dream home, survived the negotiations, and navigated the mortgage process. Now comes the final hurdle: closing day. For many buyers and sellers, this is the most mysterious part of the transaction.

Will you sign your life away? Is it a party or a paperwork marathon? Who actually gets the keys?

Let’s break it down! Here’s exactly what to expect at your Florida real estate closing, from who’s in the room to when you can pop the champagne (or Camus)!

Table of Contents

The Pre-Game (3-5 Days Out)

The real work happens before you ever sit down at the table. Your closing agent and Realtor® are ensuring everything is ready:

1. Final Walk-Through: You’ll visit the property (usually 24 hours before) to verify it’s in the agreed-upon condition and that no new damage has occurred.
2. Review Closing Disclosure (CD): You’ll receive this form from your lender. Compare it line-by-line to your Loan Estimate to catch any surprises.
3. Secure Funds: You’ll get a final number for your cash-to-close. Arrange for a cashier’s check or wire transfer; never bring a personal check.
4. Get Your Docs: Ensure you have your government-issued photo ID and proof of insurance.

Important Note: Florida wire fraud is on the rise! Always confirm wire instructions by calling a known, verified number. Scammers are notorious for hacking emails near closing.

Closing Day: A Step-by-Step Playbook

While every transaction is unique, here’s the typical flow of events on the big day.

Step 1: The Setting

Where? Typically, at the office of the title company, escrow agent, or attorney. In Florida, it’s increasingly common for buyers and sellers to sign separately at different times.

Who’s there?

• Buyer(s) and their agents
• Seller(s) and their agents (sometimes)
• Closing Agent or Attorney (representative from the title/settlement company)
• Lender (sometimes)

Preferred Settlement Services is located in Sarasota, Fl, and serves the entire state of Florida. Ask about our mobile notary services.

Step 2: The Paperwork Mountain

You will sign what feels like a small forest of paperwork. The most important documents include:

Step 3: Moving Money

• You Pay: You’ll provide the cashier’s check or confirm the wire transfer has been sent for your closing costs and down payment.
• Lender Funds: The Title Company will receive the loan funds from your mortgage lender via wire.
• Seller Proceeds: After all fees are paid, the title company will wire the net proceeds to the seller.

Step 4: The Key Moment

Once all documents are signed and the title company has confirmed receipt of all funds (yours and the lender’s), the closing is considered “disbursed.”

This is the moment you become a homeowner. You will receive the keys to your new home! (Sometimes the seller’s agent will hold the keys until the deed is officially recorded)

After Closing: The Final Steps

Your work is done, but the closing agent’s isn’t.

1. Recording the deed: The title company will electronically submit the signed deed and mortgage to the county recorder’s office. This makes the sale and your loan an official public record.
2. Title Insurance Policy: The underwriter will now issue your owner’s title insurance policy, which will be mailed to you in the coming weeks. Keep this forever.

Florida-Specific Closing Quirks

• Attorney State? Florida is not a mandatory attorney-closing state, but many sophisticated transactions (especially commercial) use them. At Preferred Settlement Services, we have 5-star-rated closing agents and attorneys representing 50 years of experience in real estate!
• Document Stamp Tax: Both the deed and the mortgage are subject to “doc stamp” taxes, a primary component of your closing costs.
• Settlement/Closing: The terms are used interchangeably in Florida.

Pro Tips

• Ask Questions: If you don’t understand a document, ask the closing agent to explain it!
• Be Patient: The signing takes 45-60 minutes. The funding and disbursement can take a few more hours.
• Celebrate! This is a huge achievement. We will kick things off with a toast in our conference room!

A smooth closing isn’t an accident–it’s the result of meticulous preparation by your entire team.

Need a Florida closing team that makes it easy?

We guide you through every step and ensure no detail is missed. Schedule Your Stress-Free Closing

The post This is What Happens at Your Real Estate Closing first appeared on Preferred Settlement Services.

By Hayley Baldinelli, J.D.

1. Commercial Due Diligence is a Marathon (Not a Sprint)

While residential closings have an average of 10-day inspection periods, commercial inspections can take 30-90+ days. Due diligence may include:

• Phase I Environmental Reports (soil contamination risks)
• ALTA Surveys (precision boundary/mapping)
• Zoning & Entitlement Reviews (can you even build what you want?)
• Tenant Lease Audits (for income-producing properties)

Example: A Miami investor nearly bought a strip mall until due diligence revealed an underground fuel leak from a 1980s gas station. Cleanup cost: $500k+.

2. Commercial Financing is Harder (and Slower)

While conventional loans can close in just about 30 days, commercial loans are often more complicated with:

• Strict lender requirements (higher down payments, personal guarantees)
• Appraisals based on income (not comps)
• Prepayment penalties (3-5 lock-ins common)

Florida twist: Lenders often require terrorism insurance for coastal properties.

3. Commercial Title Issues Are High-Stakes

Standard (residential) title searches usually go back 30-50 years, while commercial title searches can go back well beyond 50 years in order to uncover issues such as:

• Old liens, easements, mineral rights
• Easement disputes (e.g., shared parking agreements)
• Tenant rights (long-term leases can override ownership changes)

Red Flag: A Tampa warehouse deal died because a 1940s railroad easement blocked truck access.

4. Commerical Contracts Are Negotiated (Not Standarized)

Typically, residential contracts are written with standard FR/BAR or “as-is” boilerplate templates. In contrast, commercial deals are customized to accommodate each unique deal.

Commercial contracts may include:

• Custom purchase agreements (earnest money terms, inspection contingencies)
• 1031 exchange clauses
• Seller financing addendums

Pro Tip: Never sign without an attorney review as commercial contracts favor the drafter.

5. Closing Costs Are Higher

Florida Focus: Some counties charge double recording fees for commercial deeds.

6. Avoid Closing Disasters

1. Start Due Diligence Early (Before signing the LOI)
2. Use a Commercial-Savvy Title Company with an attorney on staff (like Preferred Settlement Services), as Residential firms often miss nuances.
3. Negotiate Inspection Periods (45+ days for complex assets).
4. Demand a Pro Forma (Project costs/taxes before committing).

Commercial deals don’t fall apart at closing, they explode in due diligence.

Need a Florida Commercial Closing Team? We specialize in:

• Portfolio acquisitions
• 1031 exchanges
• Mixed-use zoning challenges and more

Get additional information and support from CREA.

The post Why Commercial Real Estate Closings Are More Complex Than Residential first appeared on Preferred Settlement Services.

By Hayley Baldinelli, J.D.

Table of Contents

4 Key Rules of a 1031 Exchange

1. Like-Kind: The property that you buy to replace the one you are selling must be an investment. So, as an example, you cannot sell your short term rental on Siesta Key and buy a house in Arlington Park to live in. Well, you could, but you would not be able to use the tax advantages provided within a 1031 Exchange.
   
2. Equal or Greater Value: Simply put, the property you are buying must be the same price or higher price as the property you are looking to sell.
   
3. No Cash Out or “Boot”: You cannot pull any money out of the transaction. All money must be reinvested into the property you are purchasing.
   
4. Strict Deadlines: Once you close on the relinquished property, you will have 45 days to identify a replacement (property to purchase), and 180 days to close. Pro tip: Start looking for a replacement before you close on your first property.

Types of 1031 Exchanges

1. Delayed: This is the most common type. Essentially it means, sell first, then buy.
2. Reverse: Yup you guessed it. Buy first, then sell. This is less common and has strict rules.
3. Construction: Build on the replacement property. And hurry, because it will need to be finished within 180 days!
4. Simultaneous: If you are an experienced investor, you already know there are many moving parts to a real estate transaction. For this reason, a simultaneous exchange can be tricky. Make sure you are using a reputable Qualified Intermediary

1031 Exchange Critical Dates

How to Get Started

So now that you know the basics, you are probably wondering how to get started with the process. Here are a few things you can do:

1. Learn what needs to go in your contract. For example, the contract for the sale of your property should specify that the property is being sold as part of an IRC Sect. 1031 exchange. Also, your contract on the replacement property should include similar language. An experienced real estate attorney can help you write this language. Preferred Settlement Services can provide this service.
   
2. Choose a qualified intermediary, like Old Republic Title. (While Old Republic Title can act as your intermediary, you will still need to choose an attorney or title company for your closing.)
   
3. Review more information on the process HERE.

If you have questions about the 1031 Exchange process in Florida, contact our main office at (941) 376-9551

The post What is a 1031 Exchange? For New Real Estate Agents & Investors first appeared on Preferred Settlement Services.

Undescovered title issues can delay your closing, or worse, squash your entire deal! The good news is, most problems are preventable. Let’s take a look at the 7 most common title issues and how to avoid them:

Article by: Hayley Baldinelli, J.D.

Table of Contents:

1. Undisclosed Liens

The first of many title issues preventing clear title are old liens from previous owners. Contractors, the IRS, and HOAs can easily put liens on a property. This can easily be combatted by conducting a full lien search. Preferred Settlement Services searches back 50+ years.

Example: An Arlington Park home sale died over a $12,000 unpaid roofer’s lien from 2018.

2. Heirship Surprises (Probate/Estates)

Given Florida’s retiree population, heirship issues can arise quite often. And while trusts and wills should clear up messy inheritance issues, the average Joe doesn’t have either of those things. This will leave inheritance decisions to be made during a lengthy probate process. If you are a real estate agent in Florida, it is important to know the basics of Heirship. Learn more by joining our webinar: Probate, Trusts, Guardianship, and Power of Attorney

Example: A Siesta key heir appeared post-closing claiming a 10% ownership stake in her late grandmother’s beach house. The title company or attorney should have verified that probate was 100% closed before allowing parties to sign.

3. Fraudulent Deeds (Title Theft)

The FBI has reported that quickclaim deed fraud is on the rise! This means that fraudsters are stealing homes! Our office has noticed this happening especially with land transactions. Fighting fraud can be done in several ways and at Preferred Settlement Services, we take all precautions including thorough ID checks. We also offer additional Fraud Protection Services that can be implemented at any time, but most commonly at the time a property is purchased.

Example: A man assumed the identity of a vacant land owner in Venice and sold the property, unbeknown to the real property owner.

4. Boundary Disputes (Bad Surveys)

Believe it or not, it was not uncommon for trees to be used as landmarkers back in the day (reference the second paragraph “Nineteenth Century Public Land Surveys“). Whether it was a tree removed or a misplaced marker, boundary disputes will occur. To avoid this, a quality ALTA survey can be ordered during the closing process.

Example: A Sarasota pool encroached 4′ into a neighbor’s lot. It cost $25k to move it!

5. HOA/COA Nightmares

According to TB Bank research, “condos play an outsize role in Florida.” This means assessments galore! In closings with HOA and COAs, our title manager will order an estoppel letter or estoppel certificate. This is a document, signed by the seller, that verifies the current status of an HOA/COA agreement, outlining any outstanding obligations.

Example: A buyer owed $8k for prior owner’s unpaid special assessments.

6. Open Permits (From DIY Renovations)

Unpermitted pool cages, decks and fences, OH MY! This can lead to significant issues for both the buyer and seller such as delayed closings, higher costs, legal liabilities, and voided insurance coverage. This is why checking county permits during the closing process is crucial.

Example: A $500k Bradenton deal died because of an unpermitted 2010 bathroom.

7. Divorce/Marital Claims

If a home was purchased during a marriage, it most likely will be considered a marital asset, no matter whose name is on the deed. To prevent closing issues, it is important to always know all parties’ legal marital status and to confirm all divorces have been settled during the title search.

Example: An ex-wife sued to overturn the sale of a home three years later. Yikes!

As you’ve probably discovered by now, a clear title is the foundation of homeownership. Protect your investment, verify before you buy, and don’t skip the title insurance!

The post Secure Your Property: How to Prevent Title Disputes & Frauds first appeared on Preferred Settlement Services.

By Hayley Baldinelli, J.D., Closing Manager at Preferred Settlement Services

The Critical Difference Most Sarasota Buyers Miss

Many homeowners assume their lender’s policy protects them—after all, they’re paying for it, right? Here’s the catch: Lender’s insurance only covers the bank’s financial interest (i.e., the loan amount), which shrinks as you pay down your mortgage. Meanwhile, your equity grows—but without an owner’s policy, that investment is vulnerable.

Real Sarasota Scenario: A Siesta Key condo buyer relied solely on their lender’s policy. Five years later, a previously unknown heir claimed partial ownership from a 1990s probate error. The bank’s policy didn’t apply—but the owner’s policy covered $85k in legal fees and preserved their full ownership.

Why This Happens in Florida:

• Complex Histories: Older homes (common in Laurel Park or Gillespie Park) often have tangled title chains.
• Rapid Development: New construction can inherit liens from previous land disputes.
• Investor Activity: A large percentage of investors purchase homes all cash—buyers skip lender’s policies but still need owner’s coverage.

Get more resources from the Florida Department of Financial Services Title Insurance Guide

What’s the Difference?

Key Takeaway: Lender’s insurance disappears when you refinance or sell—owner’s coverage lasts forever.

Why Lender’s Insurance Isn’t Enough

Lender’s policies only protect the bank’s investment. Example risks you still face:

• A previous owner’s unpaid HOA fees (common in Sarasota condos).
• A forged deed from a decades-old transaction.
• Survey errors showing your pool encroaches on a neighbor’s lot.

Real-Life Case: A Sarasota family lost $50k in legal fees fighting an heir’s ownership claim—their lender’s policy didn’t help.

How Owner’s Title Insurance Protects You

• Covers legal defense costs (even for frivolous claims).
• Reimburses you if you lose equity due to a covered defect.
• Includes post-closing protection (e.g., a lien pops up 5 years later).

Pro Tip: Ask about a simultaneous issue rate—it’s cheaper to bundle owner’s + lender’s policies at closing.

Cost Comparison: Is It Worth It?

Florida-Specific Title Risks

Sarasota homeowners face unique threats:

• Probate sales: Undisclosed heirs may emerge.
• Old subdivisions: Confusing boundary lines (e.g., Palmer Ranch).
• Hurricane liens: Unpaid post-storm assessments from prior owners.

Did You Know? Florida has no state-run title insurance—always choose a reputable provider. Preferred Settlement Services partners with creditable underwriters such as Old Republic Title and Chicago Title Insurance Company.

FAQs

The post Lender’s vs. Owner’s Policy: Aren’t They the Same Thing?! first appeared on Preferred Settlement Services.

Our mission is to alleviate stress in real estate transactions, ensuring a seamless experience. From expert guidance to managing details, we transform challenges into success opportunities.

Discover how our support services empower agents and clients, making every closing a celebration.

Partnering with a Title Company for Seamless Transactions

Successful real estate transactions depend on strong partnerships. Our approach builds trust, enhances experiences, and streamlines processes for seamless closings.

A Title Company that Builds Trust with Agents

Trust is the foundation of any successful partnership. We build lasting relationships with agents through transparent communication and reliable support.

We tailor our services by understanding each agent’s unique needs. Open communication ensures agents have the information they need, with regular check-ins aligning everyone in the process.

By delivering on promises and exceeding expectations, we become dependable partners. Your success is our success. We also provide tools such as our closing app, critical dates calculator, educational classes, one-on-one consultations, and more. Contact our Customer Relations team at (941) 662-4990 or clientservices@preferredsettlement.com.

Enhancing Client Experiences

A positive client experience ensures transaction success and boosts the agent’s reputation. We provide clear explanations of complex processes, empowering clients with confidence.

By anticipating concerns proactively, we minimize stress and uncertainty. Personalized support makes every client feel valued, enhancing relationships and referrals.

Streamlining the Closing Process

Efficiency is key. We use technology to automate tasks, provide a centralized platform for document management, and conduct thorough reviews to identify early issues.

Our experts manage details, allowing agents to focus on their responsibilities. We coordinate with all parties to keep everything on track, closing deals faster and boosting success rates.

See what our agent partners and their clients are saying about the Preferred Settlement Experience!

Your team of Real Estate experts led by CEO and Real Estate Attorney Michael Infanti and closing managers, Hayley Baldinelli, J.D., and Sara Huddleston.

The post Agent Success: Your Title Company & So Much More first appeared on Preferred Settlement Services.

Importance of Critical Dates

Understanding critical dates in real estate contracts is crucial for a successful transaction. These dates serve as milestones, guiding the process from offer to closing. Let’s explore how they ensure a smooth closing and help avoid costly mistakes.

Ensuring a Smooth Closing

Critical dates in real estate contracts act as a roadmap for all parties involved, providing structure and clarity to keep the transaction on track.

ListedKit’s critical dates management tool can help real estate professionals stay organized. By clearly outlining key deadlines, it reduces the risk of missed steps or delays.

Proper management of these dates facilitates clear communication between buyers, sellers, agents, and other stakeholders. This transparency builds trust and minimizes misunderstandings.

A well-structured timeline allows for better planning and coordination of necessary tasks, such as inspections, appraisals, and financing arrangements. This proactive approach minimizes last-minute rushes and potential bottlenecks.

Avoiding Costly Mistakes

Mismanaging critical dates can lead to serious consequences, both financial and legal. Understanding these dates is essential for protecting the interests of all parties involved.

According to Mile High Title Guy, common critical dates include:

• Inspection deadlines

• Appraisal contingencies

• Financing contingencies

• Closing date

Missing these deadlines can result in:

• Contract termination

• Loss of earnest money

• Legal disputes

• Additional costs for extensions

By carefully tracking and adhering to these dates, real estate professionals can safeguard their clients’ interests and maintain their professional reputation. It’s not just about meeting deadlines; it’s about ensuring a smooth, stress-free transaction for all involved.

Ready to Streamline Your Transactions?

Visit our Critical Dates Calculator Page to produce accurate dates to share with your clients and other parties involved in the transaction. This tool is designed to ensure accuracy and ease, making it an essential resource for anyone involved in real estate transactions. Don’t let important dates slip through the cracks—use our calculator and keep your closings on track for success.

The post Don’t Ruin The Deal! Know Your Critical Dates first appeared on Preferred Settlement Services.

The post Unlock Success with Our New Buyer’s and Seller’s Guides: Helpful Resources for Real Estate Agents first appeared on Preferred Settlement Services.

Private Dining Club Coming to Sarasota 
First Horizon Bank will finance the Construction of 1000 North Sarasota (read more…). 

How will Moody’s downgrade of US debt affect mortgage rates? 
This downgrade has sparked a range of reactions among market participants, with some suggesting that it may be politically motivated, given the timing and challenges facing the Republican budget and tax cuts (read more…). 

NOAA releases hurricane forecast for 2025 Atlantic season 
Forecasters are closely monitoring global conditions that will influence the 2025 Atlantic hurricane season, which could range from having near-normal activity to one that is more active than average (read more…). 

This beach in Florida with sand unlike anywhere else in the world, was just voted one of the most beautiful in the world 
About a hundred kilometres south of Tampa, an arm of land stretches lazily between the lagoon and the ocean: Siesta Key, a barrier island on Florida’s west coast, seems to have been designed for a perfect time on the beach (read more…). 

Michael Infanti is an award-winning real estate attorney with over 25 years of practice. As a Sarasota native and the CEO of Preferred Settlement Services, he brings unparalleled local knowledge and leadership to the real estate legal field. To learn more, contact Mr. Infanti at 941-376-9551. 

The post Must Reads: Mike’s Top Picks for Sarasota Real Estate  first appeared on Preferred Settlement Services.