Florida property due diligence, from title to tenants, in 2026

Florida CRE deals move fast but sinkhole disclosures, documentary stamp tax, and flood zone exposure catch buyers off guard. This checklist covers every check before you close in 2026.

Florida is one of the most active commercial property markets in the US. Deals close quickly, and that speed is where problems start.

Documentary stamp tax applies to every deed and mortgage recorded in the state. In Miami-Dade County, the rate structure differs from the rest of Florida - get this wrong and the math shifts at closing.

Environmental liability here isn't just Phase I ESA standard work. Sinkhole risk, flood zone exposure, and coastal setback rules add Florida-specific layers that mainland buyers miss.

Before diligence opens, load all files into your Ellty data room. Each advisor gets a scoped link on day one - no chasing files mid-process.

Where Florida property deals go wrong

Not every check carries the same weight. The table below sorts risks by impact on deal execution.

The full Florida property due diligence checklist

Title and ownership

• Pull the warranty deed and confirm the legal description matches the survey exactly
• Order a 60-year chain-of-title search from a Florida-licensed title agent
• Run a statewide judgment and lien search against the seller entity and individual principals
• Confirm no open mechanic's lien claims; Florida law gives lienors 90 days to file after last work
• Check for any notice of commencement recorded against the property for recent construction
• Verify the property appraiser parcel ID matches all closing documents before proceeding

Encumbrances and easements

• Pull all recorded easements, rights of way, and deed restrictions from the county clerk
• Search for code enforcement liens; they attach to land in Florida and survive any sale
• Confirm HOA or CDD assessments are current and disclosed by the seller
• Check for any pending special assessment districts that could affect future operating costs
• Run a UCC fixture filing search against the seller for equipment attached to the property

Zoning and land use

• Confirm current zoning from the county or municipal planning department in writing
• Pull the future land use map designation; it controls what redevelopment is permissible
• Check for any conditional use permits or variances tied to the current operation
• For coastal parcels: confirm the coastal construction control line (CCCL) setback position
• Verify certificates of occupancy for all buildings and improvements on the parcel
• Confirm no open code violations or building department stop-work orders are outstanding

Environmental

• Commission a Phase I ESA per ASTM E1527-21; Florida's industrial history warrants scrutiny
• Search the FDEP Oculus database for recorded releases, cleanups, or enforcement actions
• Run a UST search for all gas station, industrial, and auto-related parcels statewide
• Commission a sinkhole evaluation; this is outside standard Phase I scope in Florida
• Check the FEMA flood zone map and confirm current NFIP flood insurance availability
• Budget Phase II at $8,000-$25,000 if recognized environmental conditions surface

Leases and tenancies

• Collect all leases, amendments, and sublease consents into Ellty before diligence opens
• Abstract every CPI rent bump clause; Florida retail leases use these heavily
• Cross-reference the rent roll against 3 months of actual bank receipts from the seller
• Confirm estoppel certificates are deliverable before the scheduled closing date
• Identify any month-to-month occupancies or undocumented tenants on the property
• Check for any tenant purchase options or rights of first refusal in the lease terms

Building and physical condition

• Commission a Property Condition Assessment; hurricane exposure is a key factor statewide
• Order a wind mitigation report; post-Ian code changes affect what qualifies for insurance credits
• Inspect the roof thoroughly; Florida's heat and storm cycle accelerates deterioration
• Confirm ADA compliance documentation for all commercial spaces
• Check for Chinese drywall in properties built or renovated between 2001 and 2009
• Verify HVAC capacity; Florida humidity and cooling loads differ materially from other states

Service charge and operating costs

• Pull 3 years of operating statements and reconcile against actual property tax bills
• Confirm the ad valorem assessed value; Florida's Save Our Homes cap does not apply to commercial
• Audit CAM pass-throughs against lease terms for all multi-tenant assets
• Check for any pending county or municipal special assessment that will raise operating costs

Documentary stamp tax

• Calculate Florida documentary stamp tax at $0.70 per $100 of consideration on the deed
• For Miami-Dade County deals: apply $0.60 per $100 base rate plus $0.45 per $100 surtax
• Calculate the intangible tax on new mortgages at $0.002 per $1 of secured debt
• Confirm who bears documentary stamp tax in the contract; Florida convention is seller pays on deed
• Model the full stamp tax and intangible tax impact before finalizing the purchase price

Insurance and valuation

• Pull current insurance policies and a 3-year loss run history from the seller
• Check FEMA flood zone status; Zone AE and VE parcels require mandatory flood insurance
• Confirm wind and hurricane coverage; Citizens Property Insurance limits affect commercial assets
• Order an independent appraisal scoped to the intended use and lender requirements
• Verify the property is not in a FIRM remapping zone that could trigger future rate increases

Utilities and access

• Verify all utility connections are active and legally transferable at closing
• Check septic vs. municipal sewer connection; some Florida counties require conversion on sale
• Confirm legal road access via recorded easement or platted right of way
• Verify stormwater management compliance; Florida DEP permits are parcel-specific
• Check for any ongoing disputes with adjacent landowners over access or drainage

Seller KYC and AML

• Confirm seller identity matches the county deed record exactly
• If the seller is foreign, confirm FIRPTA withholding obligations before closing
• Run bankruptcy, federal tax lien, and judgment searches before committing to close
• For LLC or corporate sellers: confirm good standing with the Florida Secretary of State

How property due diligence in Florida works

Step 1 - Title search

Start the title search and O&E report immediately after contract execution. Florida uses a race-notice recording system; priority goes to the first party to record.

Commission a legal due diligence review of seller entity documents in parallel. Confirm FIRPTA status early if the seller is a foreign entity.

Step 2 - Survey and inspection

Order an ALTA/NSPS survey alongside the title search. Confirm legal description, parcel boundaries, and easement locations match all deed documents.

Commission the Property Condition Assessment and wind mitigation report in parallel. Hurricane exposure means building envelope condition directly affects insurance costs and lender terms.

Step 3 - Leases and income review

Pull all leases and abstract CPI rent bump clauses first. Florida retail leases use CPI escalators broadly; model your NOI at multiple inflation rates before agreeing price.

Check the due diligence process guide for how to structure a parallel-track review. Adapt the request list for Florida-specific items including sinkhole disclosure and flood certificates.

Step 4 - Environmental review

Run the Phase I ESA and FDEP database search in parallel. Former gas stations, dry cleaners, and industrial uses are common in Florida commercial corridors and carry FDEP enforcement history.

Commission the sinkhole evaluation for any asset in Hernando, Hillsborough, Pasco, Pinellas, or Alachua counties. These are the highest-risk counties statewide.

Step 5 - Closing and registration

Florida documentary stamp tax on the deed is due at closing. Recording happens at the county clerk's office; priority runs from the recording timestamp.

FIRPTA withholding of 15% applies to foreign sellers unless an IRS withholding certificate is obtained. Apply before signing the contract - the IRS process takes up to 90 days.

What makes due diligence in Florida different

Florida's documentary stamp tax catches out-of-state buyers who budget only for title and legal fees. The Miami-Dade surtax adds another layer; a $5M commercial deal in Miami carries $52,500 in stamp tax vs. $35,000 statewide.

Sinkhole risk is the most Florida-specific trap for advisors who haven't closed a deal here. It's not covered in a standard Phase I ESA. Central Florida counties - Hernando, Hillsborough, Pasco - have the highest activity rates. See what documents go in a data room for how to organize sinkhole and environmental files for lender review.

Code enforcement liens are the third trap. They attach to the property in Florida, not to the violating owner. A seller can walk away from unresolved code violations and the buyer inherits them. Search county code enforcement records on every deal, not just distressed acquisitions.

Foreign buyers face FIRPTA withholding of 15% of gross sales price before closing. An IRS withholding certificate can reduce this, but the application takes 90 days - start it before you sign.

Timeline and cost of Florida CRE due diligence

Week 1-2 covers kickoff: county title search and O&E report, ALTA survey order, Phase I ESA engagement, sinkhole evaluation order, and FDEP database search.

Estimated cost for weeks 1-2: $4,000-$9,000 covering title search, survey, and initial legal fees. Load all documents into Ellty and give each advisor a trackable scoped link from day one.

Weeks 2-5 cover deep review: Phase I ESA delivery, Property Condition Assessment, wind mitigation report, lease abstraction, FEMA flood zone confirmation, and operating cost reconciliation.

Cost for weeks 2-5: $5,000-$18,000 depending on Phase I scope and asset complexity. Sinkhole evaluation adds $2,000-$6,000 for high-risk counties.

Weeks 5-8 handle resolution: Phase II ESA if RECs surfaced, title exception negotiations, FIRPTA certificate if a foreign seller, and closing prep at the county clerk.

Documentary stamp tax is price-linked and due at closing: $0.70 per $100 statewide, $1.05 per $100 in Miami-Dade for commercial. Buy-side legal fees typically run $3,000-$8,000 for a standard Florida commercial close. Intangible tax on a new mortgage runs $0.002 per $1 of debt - fixed rate, price-linked amount.