Closing Out a Florida Home Build and Moving In

Certificate of Occupancy, Liens, Insurance, and Homestead

The last few weeks of a build are where remote owners can lose the most leverage. The house looks done, everyone wants to wrap up, and the final payment is the biggest one left. Getting the closeout right means the house is legally complete, the liens are cleared, the insurance has switched over, and your tax timing works in your favor. This is the final part of our series on building a Florida home from out of state.

Short version: Don’t make the final payment until five things are done. The final inspections have passed and the building department has issued the certificate of occupancy. Your own inspector has done a final walkthrough and you have a written punch list. The contractor has given you the final affidavit required by Florida’s lien law. You have final lien waivers from everyone who sent a Notice to Owner. And you have the closeout documents and warranties in hand. You can then record a notice of termination to end the Notice of Commencement. Switch coverage from builder’s risk to a homeowners policy, and line up flood insurance early: if it isn’t tied to a loan closing, it generally has a 30-day wait. For taxes, a house that isn’t substantially complete on January 1 isn’t assessed for that year. You get homestead only if you own the home and live in it on January 1, and apply by March 1.

The closeout checklist

The final walkthrough, from a distance or in person

If you can make one trip, this is a good one, along with the pre-drywall visit covered in overseeing the build remotely. If you can’t, send your licensed home inspector, and your owner’s representative if you have one, and join by live video. Test everything: doors and windows, every faucet and drain, the AC, the appliances, outlets and switches, and the garage door. Look at drainage around the house after a rain if you can. Put the punch list in writing, with the builder’s agreed completion dates, and confirm each item is done with photos before the final money goes out.

Closing out the liens

• Final affidavit (713.06(3)(d)): before the final payment, the contractor must give you a sworn affidavit stating whether all lienors who sent notices have been paid, and listing any who haven’t. Hold the final payment until you have it.
• Final waivers (713.20): collect final-payment lien waivers from the contractor and everyone on your Notice to Owner list.
• Notice of termination (713.132): once everyone is paid, you can record a sworn notice of termination to end your Notice of Commencement. It must include the original notice’s details and recording information, state that all lienors have been paid in full, and come with the contractor’s final affidavit. Before recording it, you must serve it on lienors with direct contracts and those who sent a Notice to Owner. It takes effect 30 days after recording, or later if you choose.

Your title company or attorney can handle these documents. The full process is in protecting yourself from construction liens.

Switching the insurance

• Builder’s risk to homeowners: builder’s risk coverage usually ends at completion or occupancy. Have your homeowners policy start on the closing or completion date, with no gap.
• A house sitting empty: if there will be a gap between completion and your move, tell your insurer. Many homeowners policies limit some coverage when a home is vacant or unoccupied for a while.
• Flood insurance timing: under federal rules, NFIP flood policies generally take effect after a 30-day waiting period. The main exception is a policy bought in connection with making, increasing, extending, or renewing a loan, which can take effect at closing. Cash buyers should buy early. See Florida flood insurance.
• Wind mitigation credits: a new home built to the current code often qualifies for insurance discounts. Get a wind mitigation inspection to document it. See 4-point and wind mitigation inspections and Florida homeowners insurance.

Warranties and what to do if problems appear

Get the builder’s written warranty, and know what it covers and for how long. Register the roof, windows, HVAC, water heater, and appliances with their manufacturers, since some warranties depend on it. Schedule an inspection shortly before the builder’s warranty period ends, and send any warranty claims in writing.

For defects the builder won’t fix, Florida’s Chapter 558 process requires a written notice of claim at least 60 days before you can sue. Under Section 95.11, a construction claim generally must be filed within 4 years of the certificate of occupancy or completion, or from discovery for latent defects, and no later than 7 years in any case. See vetting and hiring a Florida builder remotely. A separate home warranty contract is optional. See home warranties in Florida.

Property taxes and homestead timing

Two Florida rules interact here:

• Assessment (192.042): improvements not substantially completed on January 1 have no value placed on them for that year. A house finished in February is generally taxed on the land only for that year, and fully from the next January 1.
• Homestead (196.011): you must own the home and live in it as your permanent residence on January 1, and apply by March 1, to get the exemption for that year.

So if your home is done in the fall, moving in before January 1 gets you homestead, and the Save Our Homes cap starts protecting you from that first year. If it finishes after January 1, that year’s bill is usually lower anyway because the house isn’t assessed yet, and you apply for homestead the following year. Either way, apply on time. See the homestead exemption guide, property tax rates by county, and the homestead savings calculator.

Moving in

• Utilities: set up electric, water, and internet before closing so they’re on when you arrive. See Florida electric providers, Central Florida water providers, and internet providers.
• Residency: driver’s license, vehicle registration, and voter registration help establish Florida residency for homestead. See moving from New York to Florida.
• Hurricane readiness: know your evacuation zone and have a plan before the first storm season. See the hurricane preparedness guide.

The full series

• Building a Florida home while living out of state: the roadmap
• Vetting and hiring a Florida builder remotely
• Protecting yourself from construction liens
• Construction loans and draw schedules
• Overseeing the build remotely

Sources

• Florida Statutes, Section 713.06: Proper payments and the contractor’s final affidavit
• Florida Statutes, Section 713.20: Waiver or release of liens
• Florida Statutes, Section 713.132: Notice of termination
• Florida Statutes, Section 192.042: Date of assessment
• Florida Statutes, Section 196.011: Homestead exemption application
• Federal Register: NFIP waiting period and loan-closing exception
• Florida Statutes, Section 558.004: Construction defect notice of claim
• Florida Statutes, Section 95.11: Limitations of actions

This article is for general informational purposes only and isn’t financial, legal, insurance, or tax advice – for guidance specific to your situation, talk to a licensed professional.