When it comes to real estate transactions of residential property, most states, including Florida, impose specific requirements to the seller. The purpose is to inform the potential buyer of any health risks or other types of dangers that property presents. The Florida real estate contract contains all these disclosures, as well as other mentions meant to protect the seller.
That way, both parties are safe from fraud or contingencies. People write a real estate purchase agreement Florida form as written proof that they have decided what the main terms of the transactions will be. While some aspects, like the price, are still open to negotiation, the rest remain set until closing the deal.
What Is a Florida Real Estate Purchase Agreement?
Finding a client when you are trying to sell a house usually takes a while. And once you have found them, you want at least some level of certainty that the transaction will be finalized.
On the other hand, if you are the potential buyer, you can benefit from a document that mentions the disclosures you are entitled to or the period you have to get financing for the purchase. All these are aspects covered by the Florida real estate purchase agreement.
The purchase and sale agreement Florida is a legally binding document, and once signed, it can only be terminated if both the seller and the buyer agree to do so.
Since there are other aspects that need to be taken care of before closing the deal, the purchase agreement testifies to the fact that both parties have agreed on the terms and that unless something drastic happens, the purchase is going to take place.
Download Our Agreement Of Free Florida Real Estate Purchase Template
Download for free our agreement of Florida Real Estate Purchase template and bind yourself legally by following the legal rules and regulations of the state. With a single click, you can gain access to the template, so just go for it.
What Are the Elements of a Real Estate Purchase Agreement in Florida?
To enforce a contract concerning a real estate transaction, you need to do it in writing; verbal agreements don’t have the same power in the eyes of the law. The Florida real estate purchase agreement is a legally binding document, and as such, there are certain elements that it must contain in order to be efficient.
All Florida real estate sales contracts must include the following pieces of information:
- Identifying information of the two parties involved in the purchase: full name and address of residence
- Identifying information about the property: address and legal description
- Any personal property included in the purchase must also be identified (like AC units, stoves, refrigerators and so on)
- The price the two parties agree upon; this may actually change until closing the deal as a result of an appraisal or an inspection
- The closing date – the deadline for the transaction to be completed
- The escrow – a deposit can be made by the buyer to show the seller that they are serious about going through with the purchase. The deposit is kept by a third party, and if the buyer backs out of the deal for unjustified reasons, the deposit goes to the seller
- Names and signatures of both parties
Laws & Regulations Regarding Florida Real Estate Purchase Agreement
Since it is a legal document, the Florida real estate purchase agreement must meet specific requirements imposed by the state. Their purpose is to make sure the transaction is clean, and none of the parties is the victim of a fraud attempt.
Some of these disclosures are mandatory, but there are also a few optional. Even if you aren’t forced by law to include them in the contract, they are worth considering. All they do is add more security and reliability to the agreement.
When significant amounts of money are involved, people sometimes turn to attorneys for advice. But even without formal legal representation, the purchase and sale agreement Florida form provides all the necessary security if written correctly.
These are the primary disclosures it needs to include, and the significant optional ones:
- The Lead-Based Paint Disclosure - for buildings built before 1978
- Seller's Property Disclosure Form – this forces the seller to disclose any fact that can affect the value of the property, or that would prevent buyers from choosing it; these facts can be environmental, connected to the area where the property is located, or any other aspect that may alter the buyer’s interest in the piece of real estate
- The Property Tax Disclosure Summary
Apart from these disclosures, there are a few essential aspects you should consider covering in your Florida real estate contract:
- The ‘As-Is’ clause – it means the buyer agrees to buy the property in its current condition, without forcing the seller to make any improvements or repairs
- Inspections are recommended, to make sure the buyer gets a complete and accurate image of the property and to see if the price is justified
- Homeowners’ Association and Condominium Association Documents – these can reveal any annual or monthly fees the new owner will have to pay
Download Our Agreement Of Free Florida Real Estate Purchase Template
Download for free our agreement of Florida Real Estate Purchase template and bind yourself legally by following the legal rules and regulations of the state. With a single click, you can gain access to the template, so just go for it.
Conclusion
Real estate transactions are quite frequent in Florida. And the right thing to do to keep both parties secure is to create a Florida real estate contract. That way, all the relevant aspects connected to the purchase will be revealed, and everything will be set for closing the deal.
Such an important and legally binding document must be written carefully. The best way to create it is with the template we provide at CocoSign. Our offer includes a wide variety of useful and easy to use templates for all the documents people frequently use.
DOCUMENT PREVIEW
☐ - Other: __________________________________________________________
a.) In addition, Buyer agrees, within a reasonable time, to make a good faith loan application with a credible financial institution;
b.) If Buyer does not reveal a fact of contingency to the lender and this purchase does not record because of such nondisclosure after initial application, the Buyer shall be in default;
c.) On or before ____________________, 20___, the Buyer will provide the Seller a letter from a credible financial institution verifying a satisfactory credit report, acceptable income, source of down payment, availability of funds to close, and that the loan approval ☐ is ☐ is not contingent on the lease, sale, or recording of another property;
d.) In the event the Buyer fails to produce the aforementioned letter or other acceptable verification by the date above in Section V(c), this Agreement may be terminated at the election of the Seller with written notice provided to the Buyer within ____ days from the date in Section V(c);
e.) Buyer must obtain Seller’s approval, in writing, to any change to the letter described in Section V(c) regarding the financial institution, type of financing, or allocation of closing costs; and
f.) Buyer agrees to pay all fees and satisfy all conditions, in a timely manner, required by the financial institution for processing of the loan application. Buyer agrees the interest rate offered by lender or the availability of any financing program is not a contingency of this Agreement, so long as Buyer qualifies for the financing herein agreed. Availability of any financing program may change at any time. Any licensed real estate agent hired by either party is not responsible for representations or guarantees as to the availability of any loans, project and/or property approvals or interest rates.
☐ - Seller Financing. Seller agrees to provide financing to the Buyer under the following terms and conditions:
a.) Loan Amount: $____________________
b.) Down Payment: $____________________
c.) Interest Rate (per annum): ____%
d.) Term: ____ ☐ Months ☐ Years
a.) Documents: The Buyer shall be required to produce documentation, as required by the Seller, verifying the Buyer’s ability to purchase according to the Purchase Price and the terms of the Seller Financing. Therefore, such Seller Financing is contingent upon the Seller’s approval of the requested documentation to be provided on or before ____________________, 20___. The Seller shall have until ____________________, 20___ to approve the Buyer's documentation. In the event Buyer fails to obtain Seller’s approval, this Agreement shall be terminated with the Buyer’s Earnest Money being returned within five (5) business days.
VI. Sale of Another Property. Buyer’s performance under this Agreement: (check one)
☐ - Shall not be contingent upon selling another property.
☐ - Shall be contingent upon selling another property with a mailing address of ___________________, City of ____________________, State of ____________________ within ____ days from the Effective Date.
VII. Closing Costs. The costs attributed to the Closing of the Property shall be the responsibility of ☐ Buyer ☐ Seller ☐ Both Parties. The fees and costs related to the Closing shall include but not be limited to a title search (including the abstract and any owner’s title policy), preparation of the deed, transfer taxes, recording fees, and any other costs by the title company that is in standard procedure with conducting the sale of a property.
VIII. Funds at Closing. Buyer and Seller agree that before the recording can take place, funds provided shall be in one (1) of the following forms: cash, interbank electronic transfer, money order, certified check or cashier’s check drawn on a financial institution located in the State, or any above combination that permits the Seller to convert the deposit to cash no later than the next business day.
IX. Closing. This transaction shall be closed on ______________________, 20____ at ____:____ ☐ AM ☐ PM or earlier at the office of a title company to be agreed upon by the Parties (“Closing”). Any extension of the Closing must be agreed upon, in writing, by Buyer and Seller. Real estate taxes, rents, dues, fees, and expenses relating to the Property for the year in which the sale is closed shall be prorated as of the Closing. Taxes due for prior years shall be paid by Seller.
X. Survey. Buyer may obtain a survey of the Property before the Closing to assure that there are no defects, encroachments, overlaps, boundary line or acreage disputes, or other such matters, that would be disclosed by a survey ("Survey Problems"). The cost of the survey shall be paid by the Buyer. Not later than ____ business days prior to the Closing, Buyer shall notify Seller of any Survey Problems which shall be deemed to be a defect in the title to the Property. Seller shall be required to remedy such defects within ____ business days and prior to the Closing.
If Seller does not or cannot remedy any such defect(s), Buyer shall have the option of canceling this Agreement, in which case the Earnest Money shall be returned to Buyer.
XI. Mineral Rights. It is agreed and understood that all rights under the soil, including but not limited to water, gas, oil, and mineral rights shall be transferred by the Seller to the Buyer at Closing.
XII. Title. Seller shall convey title to the property by warranty deed or equivalent. The Property may be subject to restrictions contained on the plat, deed, covenants, conditions, and restrictions, or other documents noted in a Title Search Report. Upon execution of this Agreement by the Parties, Seller will, at the shared expense of both Buyer and Seller, order a Title Search Report and have delivered to the Buyer.
Upon receipt of the Title Search Report, the Buyer shall have ____ business days to notify the Seller, in writing, of any matters disclosed in the report which are unacceptable to Buyer. Buyer’s failure to timely object to the report shall constitute acceptance of the Title Search Report.
If any objections are made by Buyer regarding the Title Search Report, mortgage loan inspection, or other information that discloses a material defect, the Seller shall have ____ business days from the date the objections were received to correct said matters. If Seller does not remedy any defect discovered by the Title Search Report, Buyer shall have the option of canceling this Agreement, in which case the Earnest Money shall be returned to Buyer.
After Closing, Buyer shall receive an owner’s standard form policy of title insurance insuring marketable title in the Property to Buyer in the amount of the Purchase Price, free and clear of the objections and all other title exceptions agreed to be removed as part of this transaction.
XIII. Property Condition. Seller agrees to maintain the Property in its current condition, subject to ordinary wear and tear, from the time this Agreement comes into effect until the Closing. Buyer recognizes that the Seller, along with any licensed real estate agent(s) involved in this transaction, make no claims as to the validity of any property disclosure information. Buyer is required to perform their own inspections, tests, and investigations to verify any information provided by the Seller. Afterward, the Buyer shall submit copies of all tests and reports to the Seller at no cost.
Therefore, Buyer shall hold the right to hire licensed contractors, or other qualified professionals, to further inspect and investigate the Property until ______________________, 20____ at ____:____ ☐ AM ☐ PM.
After all inspections are completed, Buyer shall have until ______________________, 20____ at ____:____ ☐ AM ☐ PM to present any new property disclosures to the Seller in writing. The Buyer and Seller shall have ____ business days to reach an agreement over any new property disclosures found by the Buyer. If the Parties cannot come to an agreement, this Agreement shall be terminated with the Earnest Money being returned to the Buyer.
If the Buyer fails to have the Property inspected or does not provide the Seller with written notice of the new disclosures on the Property, in accordance with this Agreement, Buyer hereby accepts the Property in its current condition and as described in any disclosure forms presented by the Seller.
In the event improvements on the Property are destroyed, compromised, or materially damaged prior to Closing, the Agreement may be terminated at Buyer’s option.
XIV. Seller’s Indemnification. Except as otherwise stated in this Agreement, after recording, the Buyer shall accept the Property AS IS, WHERE IS, with all defects, latent or otherwise. Neither Seller nor their licensed real estate agent(s) or any other agent(s) of the Seller, shall be bound to any representation or warranty of any kind relating in any way to the Property or its condition, quality or quantity, except as specifically set forth in this Agreement or any property disclosure, which contains representations of the Seller only, and which is based upon the best of the Seller’s personal knowledge.
XV. Appraisal. Buyer’s performance under this Agreement: (check one)
☐ - Shall not be contingent upon the appraisal of the Property being equal to or greater than the agreed upon Purchase Price.
☐ - Shall be contingent upon the appraisal of the Property being equal to or greater than the agreed upon Purchase Price. If the Property does not appraise to at least the amount of the Purchase Price, or if the appraisal discovers lender-required repairs, the Parties shall have ____ business days to re-negotiate this Agreement (“Negotiation Period”). In such event the Parties cannot come to an agreement during the Negotiation Period, this Agreement shall terminate with the Earnest Money being returned to the Buyer.
XVI. Required Documents. Prior to the Closing, the Parties agree to authorize all necessary documents, in good faith, in order to record the transaction under the conditions required by the recorder, title company, lender, or any other public or private entity.
XVII. Termination. In the event this Agreement is terminated, as provided in this Agreement, absent of default, any Earnest Money shall be returned to the Buyer, in-full, within ____ business days with all parties being relieved of their obligations as set forth herein.
XVIII. Sex Offenders. Section 2250 of Title 18, United States Code, makes it a federal offense for sex offenders required to register pursuant to the Sex Offender Registration and Notification Act (SORNA), to knowingly fail to register or update a registration as required. State convicted sex offenders may also be prosecuted under this statute if the sex offender knowingly fails to register or update a registration as required, and engages in interstate travel, foreign travel, or enters, leaves, or resides on an Indian reservation.
A sex offender who fails to properly register may face fines and up to ten (10) years in prison. Furthermore, if a sex offender knowingly fails to update or register as required and commits a violent federal crime, he or she may face up to thirty (30) years in prison under this statute. The Buyer may seek more information online by visiting https://www.nsopw.gov/.
. The Parties agree that any dispute or claim in law or equity arising between them out of this Agreement or any resulting transaction, which is not settled through mediation, shall be decided by neutral, binding arbitration. The arbitrator is required to be a retired judge or justice, or an attorney with at least five (5) years of residential real estate law experience unless the Parties mutually agree to a different arbitrator. Under arbitration, the Parties shall have the right to discovery in accordance with Florida law. Judgment upon the award of the arbitrator(s) may be entered into any court having jurisdiction. Enforcement of this Agreement to arbitrate shall be governed by the Federal Arbitration Act.
a.) Exclusions. The following matters shall be excluded from the mediation and arbitration: (i) a judicial or non-judicial foreclosure or other action or proceeding to enforce a deed, mortgage or installment land sale contract as defined in accordance with Florida law; (ii) an unlawful detainer action, forcible entry detainer, eviction action, or equivalent; (iii) the filing or enforcement of a mechanic’s lien; and (iv) any matter that is within the jurisdiction of a probate, small claims or bankruptcy court. The filing of a court action to enable the recording of a notice of pending action, for order of attachment, receivership, injunction, or other provisional remedies, shall not constitute a waiver or violation of the mediation and arbitration provisions of this Section.
XXIV. Governing Law. This Agreement shall be interpreted in accordance with the laws in the State of Florida.
XXV. Terms and Conditions of Offer. This is an offer to purchase the Property in accordance with the above stated terms and conditions of this Agreement. If at least one, but not all, of the Parties initial such pages, a counter offer is required until an agreement is reached. Seller has the right to continue to offer the Property for sale and to accept any other offer at any time prior to notification of acceptance. If this offer is accepted and Buyer subsequently defaults, Buyer may be responsible for payment of licensed real estate agent(s) compensation. This Agreement and any supplement, addendum or modification, including any copy, may be signed in two or more counterparts, all of which shall constitute one and the same writing.
XXVI. Binding Effect. This Agreement shall be for the benefit of, and be binding upon, the Parties, their heirs, successors, legal representatives, and assigns, which therefore, constitutes the entire agreement between the Parties. No modification of this Agreement shall be binding unless signed by both Buyer and Seller.
XXVII. Severability. In the event any provision or part of this Agreement is found to be invalid or unenforceable, only that particular provision or part so found, and not the entire Agreement, will be inoperative.
