Florida’s Homestead Portability allows homeowners to transfer some or all of their Save Our Homes (SOH) Cap savings from a previous primary residence to a new primary residence within Florida. This can result in lower property taxes on the new home.

How It Works:

• The Save Our Homes Cap limits how much a homestead property’s assessed value can increase each year (maximum 3% or the Consumer Price Index (CPI), whichever is lower).
• When you sell your home and buy a new one, you can transfer up to $500,000 of your SOH savings to your new home.

Eligibility:

✅ You must have had Homestead Exemption on your previous Florida home.
✅ You must establish Homestead Exemption on the new home within 3 years of leaving the old one.
✅ The new home must be in Florida (portability doesn’t apply to out-of-state moves).

• If the new home is MORE expensive: You transfer the full difference between market value and assessed value (up to $500,000).
• If the new home is LESS expensive: You transfer a proportional amount of your SOH savings.

Example 1 – Moving to a More Expensive Home:

• Old Home: Market Value = $400,000 | Assessed Value = $300,000
• Save Our Homes Benefit = $100,000
• New Home: Market Value = $500,000
• New Assessed Value = $500,000 – $100,000 = $400,000

Example 2 – Moving to a Less Expensive Home (Proportional Transfer):

• Old Home: Market Value = $400,000 | Assessed Value = $300,000
• Save Our Homes Benefit = $100,000 (25% reduction)
• New Home: Market Value = $300,000
• New Assessed Value = $300,000 – 25% (or $75,000) = $225,000

1. Apply for Homestead Exemption on your new home (Form DR-501).
2. Submit a Portability Application (Form DR-501T) to your county’s Property Appraiser’s Office by March 1st of the tax year.

In Florida, a buyer does not always need to be physically present at closing. There are a few ways to complete the closing process:

1. In-Person Closing (Traditional Method)

• The buyer attends the closing at the title company, attorney’s office, or lender’s office.
• The buyer signs all necessary documents, including the promissory note, mortgage, and closing disclosures.
• Funds are transferred, and the property officially changes ownership.

2. Mail-Away (Remote) Closing

• If the buyer cannot attend in person, the title company or attorney can overnight the documents for signature.
• The buyer must sign in front of a notary and return the signed documents before closing.

3. Remote Online Notarization (RON) Closing

• Florida allows fully digital closings using online notarization, where the buyer signs documents electronically via a secure platform.
• This requires identity verification and video conferencing with a Florida-approved remote online notary.

4. Power of Attorney (POA) Closing

• A buyer can authorize a trusted person or attorney to sign on their behalf using a power of attorney document.
• The POA must be approved by the lender (if financing is involved).

Exceptions & Considerations

• Cash buyers can often close remotely more easily than financed buyers.
• If financing, the lender may have specific requirements regarding remote signings.
• Some title companies may have preferences on in-person vs. remote closings.

Capital gains on real property depend on the length of ownership and whether the gain is classified as short-term or long-term for tax purposes.

Short-Term vs. Long-Term Capital Gains

• Short-Term Capital Gains (Held 1 year or less)
  • Taxed at ordinary income tax rates (10% to 37%, depending on income).
• Long-Term Capital Gains (Held more than 1 year)
  • Taxed at preferential capital gains rates (0%, 15%, or 20%, depending on income).

Capital Gains Tax Rates for 2024

Primary Residence Exemption (IRC Section 121)

If the property is your primary residence for at least 2 of the last 5 years, you may qualify to exclude up to:
✅ $250,000 of capital gains (Single Filers)
✅ $500,000 of capital gains (Married Filing Jointly)

Example of Taxable Capital Gain

• Bought a property for $300,000
• Sold it for $500,000
• Gain = $200,000
• If it was a primary residence (2 out of 5 years rule met) → No tax if filing jointly (under $500K exclusion).
• If it was an investment property → Taxed as long-term capital gains (15% or 20%).

Title insurance is a type of insurance that protects property owners and lenders from financial loss due to defects in a property’s title. It ensures that the buyer has clear ownership and protects against past claims, liens, or legal disputes related to the property.

Types of Title Insurance:

1. Owner’s Title Insurance:
   • Protects the buyer/homeowner from title defects, fraud, errors, or claims.
   • A one-time payment at closing covers the owner for as long as they own the property.
   • Not required but highly recommended.
2. Lender’s Title Insurance (Loan Policy):
   • Protects the mortgage lender in case of title issues that affect the loan’s validity.
   • Required by lenders if financing is involved.

Covers the loan amount, not the homeowner.