What Additional Documents Are Required When Purchasing Through a Trust, Partnership, or Foreign Corporation in Florida?

Trusts, partnerships, and foreign corporations each have specific documentation requirements for Florida real estate closings. The title company needs to verify the entity's existence, authority, and the identity of the person authorized to sign.

This post is for general informational purposes only and does not constitute legal advice.

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Trusts

Trusts are a common vehicle for holding Florida vacation properties, particularly revocable living trusts used for estate planning.

What the title company requires:

Trustee certification: A document signed by the trustee(s) certifying the trust's existence, the trustee's authority to purchase or sell real property, and the trustee's identity. Florida Statute 736.1017 allows trustees to provide a certification of trust rather than providing the full trust document.

Trust agreement (or relevant excerpts): The title company may request the trust agreement or relevant excerpts to confirm the trustee's authority for real estate transactions.

Certificate of trust: Some title companies accept a certificate of trust — a shorter document that summarizes the key provisions of the trust — rather than the full trust document.

Who signs: The trustee(s) sign the closing documents in their capacity as trustee. The deed will be titled in the name of the trust (e.g., "John Smith, as Trustee of the John Smith Revocable Living Trust dated January 1, 2020").

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Partnerships (General and Limited)

What the title company requires:

• Partnership agreement (or relevant excerpts)
• Certificate of good standing (for limited partnerships registered with the state)
• Authorization resolution confirming that the transaction has been approved and identifying the authorized signatory
• EIN

Who signs: For a general partnership, any general partner may sign. For a limited partnership, the general partner signs.

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Foreign Corporations

A foreign corporation is a corporation formed outside Florida that is doing business in Florida.

What the title company requires:

• Articles of incorporation (from the formation state)
• Certificate of authority to do business in Florida (from the Florida Division of Corporations)
• Certificate of good standing from the formation state
• Corporate bylaws
• Board resolution authorizing the transaction
• EIN

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Foreign Nationals and International Buyers

Foreign nationals purchasing Florida real estate have additional considerations:

• FIRPTA: The Foreign Investment in Real Property Tax Act requires buyers to withhold 15% of the sale price from the proceeds of a foreign seller and remit it to the IRS. This applies to sellers who are not U.S. citizens or permanent residents.
• ITIN: Foreign nationals who do not have a Social Security number need an Individual Taxpayer Identification Number (ITIN) for tax reporting purposes.

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FAQ

Can a revocable living trust purchase Florida real estate?

Yes. A revocable living trust can purchase and hold Florida real estate. The trustee signs the closing documents in their capacity as trustee.

Does a trust need to be registered in Florida to purchase Florida real estate?

No. Florida does not require trusts to register with the state. The trustee certification is sufficient documentation.

What is FIRPTA and does it apply to my transaction?

FIRPTA applies when the seller is a foreign national (not a U.S. citizen or permanent resident). If the seller is a foreign national, the buyer is required to withhold 15% of the sale price and remit it to the IRS. Consult a tax professional for guidance.

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Closing on an Emerald Coast property through a trust, partnership, or foreign entity? I can help you coordinate the documentation requirements with the title company.

— Kinsey Haddock P.A., Broker Associate | Coldwell Banker Realty — Panhandle | License #BK3253849