What Happens After You Go Under Contract in Florida?
Quick Answer: After a home goes under contract in Florida, the buyer and seller move through several key steps before closing. These include depositing earnest money, completing inspections, securing financing, ordering an appraisal, performing title searches, and conducting a final walkthrough before the property officially transfers ownership.
Going under contract is a major milestone in a real estate transaction. It means the buyer and seller have agreed to terms, but the sale isn’t final yet. In Florida — and especially in competitive markets like Orlando — several important steps must happen between contract signing and closing.
The Florida Real Estate Process After Going Under Contract
Once a property goes under contract, the transaction moves into what’s often called the escrow period. This is when all conditions of the contract must be satisfied before the sale can close.
| Step | What Happens | Typical Timeline |
|---|---|---|
| Earnest Money Deposit | Buyer submits escrow deposit | 1–3 days |
| Inspection Period | Home inspection and negotiations | 7–15 days |
| Loan Approval | Mortgage underwriting and approval | 2–4 weeks |
| Appraisal | Lender verifies property value | 1–2 weeks |
| Title Search | Title company confirms clear ownership | 1–2 weeks |
| Final Walkthrough | Buyer verifies home condition | 1–2 days before closing |
| Closing Day | Ownership transfers to buyer | 30–45 days typical |
Step-by-Step: What Happens After a Home Goes Under Contract
1. Earnest Money Deposit
The buyer submits an earnest money deposit to the escrow or title company. This deposit demonstrates serious intent to purchase the home and is usually credited toward closing costs.
2. Inspection Period
Most Florida contracts include a home inspection contingency. During this time, the buyer hires inspectors to evaluate the property.
Inspections may include:
- General home inspection
- Roof inspection
- Termite or pest inspection
- Mold inspection
- HVAC evaluation
If problems are discovered, buyers may negotiate repairs or credits with the seller.
3. Mortgage Loan Processing
If the buyer is financing the purchase, the lender begins underwriting the loan. The lender verifies:
- Income and employment
- Credit history
- Debt-to-income ratio
- Bank statements
This is often the longest step in the process.
4. Appraisal
The lender orders an appraisal to confirm the home’s value matches the loan amount. If the appraisal comes in lower than expected, negotiations may be required.
5. Title Search and Insurance
A Florida title company performs a title search to ensure there are no liens, legal claims, or ownership disputes attached to the property.
You can learn more about title insurance from the American Land Title Association.
6. Final Walkthrough
The buyer conducts a final walkthrough shortly before closing to ensure the property is in the agreed condition.
7. Closing Day
On closing day, both parties sign documents, funds are transferred, and ownership officially changes hands.
Common Mistakes That Delay Closings
- Buyers opening new credit accounts during underwriting
- Missing financial documentation
- Appraisal coming in below contract price
- Title issues discovered during title search
- Inspection negotiations taking longer than expected
These issues can push closing dates back if they aren’t addressed quickly.
Pros and Cons of Going Under Contract
Advantages
- The home is reserved for the buyer
- Negotiations are finalized
- Both parties move toward closing
Potential Risks
- Inspection surprises
- Financing challenges
- Appraisal issues
How the Process Works in Orlando
The steps after going under contract are generally the same across Florida, but a few local factors can influence the timeline in the Orlando market.
- HOA document reviews
- Vacation rental restrictions near Disney
- High investor activity
- Rapidly moving neighborhoods like Lake Nona or Winter Garden
If you’re planning on buying a home in Orlando Florida, working with a local expert can help avoid delays and keep the transaction on track.
Checklist for Buyers After Going Under Contract
- Submit earnest money deposit
- Schedule inspections
- Provide documents to lender
- Review title commitment
- Secure homeowner’s insurance
- Schedule final walkthrough
- Prepare funds for closing
FAQ: What Happens After You Go Under Contract in Florida?
How long after going under contract is closing in Florida?
Most Florida real estate transactions close within 30 to 45 days after the contract is signed.
Can a seller back out after going under contract?
Generally no, unless specific contingencies allow it.
What is the inspection period in Florida?
The inspection period is typically 7 to 15 days depending on the contract terms.
Who holds the earnest money deposit?
The deposit is typically held by a title company or real estate brokerage acting as escrow.
What happens if the appraisal is low?
The buyer and seller may renegotiate the price or the buyer may cover the difference.
Do buyers attend closing in Florida?
Many closings can now be completed remotely with electronic or mail-away documents.
What happens if a buyer misses contract deadlines?
Missing deadlines can risk losing the contract or earnest money deposit.
When do buyers get the keys?
In most Florida transactions, buyers receive the keys on closing day.
Work With Orlando Realty Consultants
Navigating the period after going under contract can feel overwhelming, especially for first-time buyers. An experienced Realtor helps coordinate inspections, financing, title work, and closing to keep the transaction on track.
Orlando Realty Consultants helps buyers, sellers, and investors throughout Central Florida successfully navigate every stage of the real estate process.
If you’re planning to buy or sell in Orlando, call or text 407-902-7750. We proudly serve the Orlando area and Se Habla Español.
For more helpful tips, read our guide on top red flags when buying a home.
