Miami

Miami's residential market has three structural features that distinguish it from most US metros. The condominium segment is dominated by high-rise buildings, many built in the 1970s–1990s, that became subject to substantial new safety and reserve-funding requirements after the 2021 Surfside collapse. International buyers make up an unusually large share of the luxury market, Latin American, European, and increasingly Middle Eastern buyers, with their own financing patterns and negotiation conventions. And hurricane-and-flood insurance is its own consideration, driving premiums that are 3–5x national averages and that have produced periodic carrier withdrawals.

The Florida statewide closing framework applies, title companies coordinate, attorneys involved on a case-by-case basis, the Florida documentary stamp tax structure layers on top of the standard closing-cost stack, with Miami-specific dynamics layered on top.

The post-Surfside condo era

The June 2021 collapse of Champlain Towers South in Surfside drove sweeping legislative reform. Senate Bill 4-D, passed in 2022, requires structural inspections and full reserve funding for condominium buildings of three or more stories that are 30 years old (or 25 in coastal counties). Buildings need to identify substantial structural deterioration, fund reserves to address it, and complete required repairs within defined timelines.

The practical effect: many older Miami-area condominium buildings (the bulk of the market in Brickell, Miami Beach, North Bay Village, and Sunny Isles) have faced or are facing substantial special assessments to fund deferred maintenance and bring reserves into compliance. Special assessments of $20,000–$200,000+ per unit have become common; some buildings have faced six- or seven-figure-per-unit assessments to address structural issues identified during inspections.

For buyers, the takeaway is that due diligence on condo financials matters more than ever. Reviewing the most recent reserve study, the structural inspection report, the past 24 months of board minutes, and any pending or assessed special assessments is the structurally important work during the inspection period. Miami buyers who skip this work are buying into financial uncertainty that could equal or exceed the purchase price.

What buyers should know

The Florida standard residential purchase contract applies. Inspection ("due diligence") periods are negotiated explicitly, typically 7–15 days. Earnest money is typically 1%–5% of purchase price (higher in luxury condo segments, lower in suburban single-family).

International buyers face additional considerations. Some lenders specialize in foreign-national mortgages with different documentation requirements (limited US credit history, foreign income verification). Many international purchases are cash. FIRPTA (Foreign Investment in Real Property Tax Act) applies on the seller side when a non-US-resident sells, requiring 15% withholding on the gross sale price unless an exemption is documented, a consideration if the buyer is purchasing from a foreign seller.

Insurance is its own due-diligence layer. Properties that can't be insured at a reasonable cost have constrained buyer pools. Wind mitigation inspections (separate from the standard home inspection) can produce material insurance discounts on hurricane coverage; the four-point inspection (roof, electrical, plumbing, HVAC) is required by many insurers for older homes. Florida's Citizens Property Insurance is the state-backed last-resort carrier for properties that can't get private coverage; rates have risen, and the state has been working to depopulate Citizens by encouraging private carrier entry.

What sellers should know

Sellers face the Florida deed documentary stamp tax (0.7% on the sale price, customarily paid by the seller). On a $1M Miami condo sale, that's $7,000 before commissions and other closing costs.

Miami-Dade County offers the standard Florida homestead exemption ($25,000 + $25,000 above $50,000 in assessed value reduction) and Save Our Homes cap (3% or CPI on annual assessment growth) on primary residences. Sellers downsizing within Florida should know about portability, up to $500,000 of accumulated Save Our Homes savings can transfer to a new Florida primary residence.

Without a state income tax, sellers benefit from federal-only capital gains treatment. A long-held appreciated Miami home selling above the federal § 121 exclusion pays federal LTCG plus (for high earners) the NIIT, but no state cap-gains layer. This is part of why Miami has been a popular relocation target for sellers from high-tax northeastern markets.

How closings work

Miami closings happen at the title company, with documents sometimes signed remotely. Florida has adopted remote online notarization (RON) statutes, so portions of the closing (including out-of-state or international buyer document execution) can happen remotely.

The state guide for Florida covers the broader framework. For Surfside-related condo due diligence, a Florida real estate attorney experienced in condominium law is the right professional, particularly on transactions in older buildings. For insurance-availability questions, a local independent insurance agent who works with multiple carriers is more useful than a single-carrier captive agent in the current market.