Q: I’m a NY resident buying new construction in Florida. What are rules around using escrow $$ for developer const costs
We were advised that developers “CANNOT” use funds from a NY buyer on a Florida purchase. Can you confirm? Thx
A: Unfortunately, no attorney here on Justia can address the situation posed here without a review of the contract for purchase and sale and any agreement with the escrow/closing agent. In general, there is no prohibition on out of state buyers purchasing property in Florida, although recent legislation imposed limits on by purchasers with certain ties to China. In Florida, any person involved in real property transactions should obtain advice of independent counsel as the closing/title agent does not represent either the buyer or the seller and their duties are limited to executing the transactions in an unbiased manner. If this involves a contract proposed by a developer and use of their captive mortgage or closing entity, expect contract to be heavily biased in favor of the developer and against the homeowner.
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