The 7-step journey
The 7 steps below reflect the real order of a typical acquisition file. The total timeline varies from 30 days (quick cash buy) to several months (long prospecting, complex financed file).
Step 1 — Define the strategy: second home, rental, or pre-move
Strategy choice drives everything else: property type, neighbourhood, legal structure (personal vs LLC), financing, and Canadian and U.S. tax treatment. Three main paths dominate. The personal second home remains the most common use among Canadians, with purchase under your personal name and exclusively family use with no rental income. The rental investment is the investor use, with LLC often recommended, DSCR or foreign-national financing, and 1040-NR filing in the U.S. The pre-move permanent acquisition targets a future transition to Florida primary residency, which can influence neighbourhood (school proximity, services) and home choice.
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Step 2 — Choose city and property type
The Florida market is not one market. The west coast (Naples, Sarasota, Tampa) is culturally different from the east coast (Miami, Fort Lauderdale, West Palm Beach). The French-speaking cities popular with Canadians (Hollywood, Pompano Beach, Boynton Beach) have higher concentrations of expats. Property type matters too: single-family, villa, condo, mobile home, or HOA-governed development. Each type has its rules, recurring fees, and risks (hurricane, special assessments, non-warrantable condo).
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Step 3 — Build the financing file (or plan a cash purchase)
Four financing paths exist for a Canadian. The cross-border path from a Canadian bank's U.S. subsidiary (RBC Bank, TD Bank N.A., CIBC Bank USA, BMO Bank N.A., Desjardins Bank, Natbank) recognizes your Canadian credit file and offers up to 80 % LTV. The foreign-national path from a U.S. private lender accepts non-residents with 25 to 35 % down. The HELOC or refinance path on your Canadian property (up to 80 % combined LTV under OSFI B-20) funds a cash purchase. The fourth path is pure cash, dominant at 57 % of Canadian buyers per NAR 2025. Buyer closing costs run 3 to 5 % of price.
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Step 4 — Make the offer via FAR-BAR contract
Every Florida offer uses the FAR-BAR contract template (Florida Realtors and Florida Bar). A standardized roughly 12-page document containing contingencies (inspection, financing, title), critical deadlines, escrow deposit, seller disclosures. A Canadian must pay attention to several specific clauses: inspection contingency (10 to 15 days), financing contingency, Buyer's Inspection-Resolution contingency. The offer is drafted by your buyer's agent. Never sign an offer without reading it line by line.
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Step 5 — Inspection, due diligence, condo docs, and title
After offer acceptance, you typically have 10 to 15 days for inspection. Get a 4-point inspection (roof, electrical, plumbing, HVAC), a wind mitigation inspection (for hurricane insurance), and if condo a full review of condo docs (declarations, by-laws, rules, last 12 months minutes, SIRS reserve study, SB-4D milestone if building is over 3 stories and over 30 years old). The title search is ordered by the title company to reveal liens, prior mortgages, and easements.
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Step 6 — Title insurance and closing at the title company
In Florida, closing happens at a title company (not a notary as in Quebec, nor an attorney as in Ontario). The title company prepares the deed, collects funds, pays the doc stamp tax (0.7 % of sale price) and the intangible tax (0.2 % of the loan if financed), and issues the title insurance policy. As buyer you sign the deed and the mortgage if financed, in person or by power of attorney. A Canadian POA is generally not accepted by title companies. Use a U.S. consulate or a U.S. notary.
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Step 7 — Deed recording, property tax escrow, and first payments
After closing, the title company records the deed at the county records (5 to 10 business days). The lender, if any, sets up the escrow account for annual property tax and insurance. Property tax in Florida is billed by the county Tax Collector with a 4 % discount if paid before November 30. On the Canadian side, the purchase does not trigger T1135 reporting if the property is exclusively personal use, but enters T1135 once it generates rental income.
Manual articles for this step:
Common mistakes
- Transferring down payment too late, with a 5 to 10 business day anti-money-laundering review delaying closing.
- Forgetting doc stamp tax (0.7 %) and intangible tax (0.2 % of the loan) in the cash-to-close calculation.
- Signing an offer without an inspection contingency or with too short a window (under 10 days).
- Buying a non-warrantable condo without knowing (owner-occupant ratio below 50 %, single owner holding more than 10 % of units), which blocks conventional financing.
- Underestimating HOA fees and potential special assessments (upcoming major repairs, underfunded reserves, SB-4D milestone for 30+ year buildings).
- Buying without validating wind and flood (NFIP) insurance coverage, particularly in AE and VE zones close to shore.
- Converting CAD to USD at the Canadian bank counter, with a 1.5 to 2.5 % spread vs 0.3 to 0.7 % at a specialist FX broker.
Typical costs to expect
| Cost item | Typical range | Source |
|---|---|---|
| Down payment (second home) | 20 to 35 % of price | RBC Bank, Desjardins Bank, NAR |
| Buyer-side closing costs | 3 to 5 % of price | FL Statutes, Florida Realtors |
| Doc Stamp tax (buyer on deed) | 0.7 % of sale price (0.6 % in Miami-Dade) | FL Statute 201.02 |
| Intangible tax (on the loan) | 0.2 % of loan amount | FL Statute 199 |
| Title insurance | 0.5 to 0.9 % of price | FL Office of Insurance Regulation |
| Inspection (4-point + wind mitigation) | 400 to 800 USD | FL practitioners |
Indicative timeline
Typical timeline for a cross-border financed purchase: strategy decision 2 to 4 weeks, prospecting and selection 4 to 12 weeks, financing prequalification 1 to 2 weeks, accepted offer 1 to 2 days, inspection 10 to 15 days, financing and title 30 to 45 days, closing and recording 1 day signing plus 5 to 10 days recording. Average total 30 to 60 days offer-to-close, plus the prospecting phase.
FAQ
Do I need an ITIN before buying?
No for the purchase itself. The ITIN becomes useful for renting the property (1040-NR filing), for reducing FIRPTA withholding at future sale, or for paying property tax by escrow. Apply to the IRS via Form W-7, 7 to 11 weeks processing.
Can I buy via an LLC from Canada?
Yes, legally it's possible. But the LLC vs personal ownership decision has significant cross-border tax and estate consequences. Consult a cross-border tax specialist first. LLC is most justified for higher-litigation-risk rentals or multi-property portfolios.
Is my Canadian credit file accepted by U.S. lenders?
Yes by Canadian-bank U.S. subsidiaries (RBC Bank, TD Bank N.A., CIBC Bank USA, BMO Bank N.A., Desjardins Bank N.A., Natbank). No by most standard U.S. lenders, which then default to a foreign-national program that ignores your Canadian credit and requires 25 to 35 % down.
Realistic days to close a deal?
30 to 45 days for cash, 40 to 60 days with financing, 60 to 90 days on a non-warrantable condo or complex file.
What if inspection reveals major problems?
Depending on the FAR-BAR contract used (AS IS vs Inspection-Resolution), you can either cancel and recover your deposit (AS IS), or negotiate a price reduction or repairs (Inspection-Resolution). Discuss with your buyer's agent which clause to use BEFORE signing the offer.
Does my buyer's agent cost me anything since NAR 2024?
Yes, since August 2024 buyer's-agent compensation is no longer systematically paid by the seller. You sign a Buyer Broker Agreement that fixes what you pay your buyer's agent. Many sellers still offer compensation to the buyer's agent, but it's negotiated case by case.
Editorial team and essential disclaimer
Editorial team. This journey is written and reviewed by the canadaflorida.com editorial team. The authors are not licensed real estate brokers, attorneys, or tax practitioners. The journey relies on the primary sources (IRS, Florida Statutes, OSFI, CRA, Florida Realtors, NAR) cited in the manual articles it links to.
Essential disclaimer. This journey is educational. It is not real estate, legal, tax, or immigration advice. U.S. and Canadian rules evolve. For each step, consult the dedicated manual articles and a licensed professional in the relevant jurisdiction.