Travels through Property Law by Tom Brodersen, Esq.
Real estate transactions in America are nothing if not complex. The number of terms involved in even the most basic deals is surprising.
In addition to the purchase price, there is the closing date, as well as the amount of escrow funds to be deposited and when. The amount of the price to be financed, along with the method of financing is quite complicated. Closing costs and who pays for which are important.
The right to inspect the property is important, along with the timing of inspections, and the ramifications of the inspection revealing information that disappoints the buyers’ expectations.
A great deal of information about the property needs to be disclosed to the buyer.
Even after the basic terms of the transaction are agreed to, there are several things that the legal duty to close are contingent upon, that is, the buyer may be able to walk away from the deal without losing his or her deposit.
What happens when there is a disagreement about any of these items, and what procedures are required to cope with such disagreements?
This is a very short list of the complexities that have to be coped with to successfully get to closing. The good news is that a good contract form, skillfully executed, takes all of these things (and much more) into account, and just reading such a contract can help you understand how all of these details are reconciled.
There is a form in almost universal use throughout Florida, which was drafted by a committee of Florida real estate lawyers and Florida Realtors, known as the FR/Bar or FAR/Bar Contract. Happily, it is designed not to give an advantage to the buyer or seller over the other, but rather to balance the needs and interests of both sides to the transaction as fairly as possible. It is 12 pages long, and if you can read it all the way through you will know a lot of real estate contract law. Of course, there are also addenda that accommodate the additional details of buying and selling condominiums, arranging seller financing, and other complications.
More good news is found in the fact that almost all real estate agents have been trained in the use of these contracts, and there are many real estate lawyers who have used them for years and can bring a great deal more skill to the table in working with them. The Florida courts have also handled a great many cases based on these contracts, and we all feel sure about how their language will be interpreted by the courts.
ANDERSON & BRODERSEN, P.A.
350 Corey Ave., St. Pete Beach, FL 33706
727-363-6100www.PropertyLawGroup.com