Buying Property in Florida - part deux

Once you've found a property you feel meets your investment requirements your agent will help you write an offer. The Offer to Purchase Real Property or "Offer" is written on a State approved form which, more or less, allows for only fill-in-the-blank details.

These are just some of the important provisions included in this Florida Residential Real Estate Sale Contract:

• Parties: Identifies the Seller and Buyer involved in the transaction;
• Property to be Sold: Specific property being sold, including a legal description;
• Price and Payment: The price for the property and when and how payments are to be made;
• Earnest Money and Other Deposits: How the earnest money is to be kept and handled ;
• Contingencies: Allows certain contingencies with regard to the property. This includes if the buyer is getting a mortgage;
• Removal Of Contingencies: What happens if contingencies are not removed;
• Time For Acceptance And Effective Date: Time by which offer needs to be executed by both parties;
• Condition of the Property: Defines the condition of the property and whether or not the property is being sold "AS IS" or subject to any repairs;
• Inspection: Mechanical, Pest and other inspections ;
• Radon and Lead Paint Disclosure: Disclosure about Radon testing and Lead Paints;
• Utilities: How utilities will be handles;
• Casualty Loss: Defined who bears the risk of loss;
• Title: Transfer of title from seller to buyer;
• Existing Mortgages: Seller shall furnish to Buyer a statement from all mortgagee(s);
• Professional Survey Engineering Plans And Studies: Whether a survey shall be made and the furnishing of all plans;
• Delivery Of Deed: When and how the Deed will be transferred;
• Closing And Possession of Property: Time and manner of closing and when possession occurs;
• Restrictions, Easements, Limitations: The various easements, restrictions and limitations of the property - if any;
• Obligations of the Parties at Closing: Seller's and Buyer's obligation at closing;
• Closing costs: A checklist for who is responsible for which closing costs;
• Defaults And Remedies: What happens in case of defaults and any remedies;
• Disputes: Sets forth how disputes may be settled.

It is possible to add something that is not contained within the formal Offer. An example could be a list of furniture or fixtures that the Buyer may want. The document used for this purpose is called an "Addendum" and is attached to the Offer. It becomes a part of the transaction once signed by both parties.

In recent years, it has become common place for the Seller to provide the Buyer with a list of known defects, conditions or any other information concerning the property. This "REAL ESTATE DISCLOSURE STATEMENT" is not a warranty of any kind by the seller and is not a substitute for any inspections or warranties the Buyer may wish to obtain. It is merely a declaration of what the Seller knows regarding the property.

The results of the negotiations between the Buyer and Seller concludes with an agreement on price and terms and at that time an agreement between the two parties exists. This final agreement is called the "PURCHASE AGREEMENT" or "PURCHASE CONTRACT" and acknowledged by both by signing the document.



Are you looking for US investment property at a discount? Are you looking for a discounted short sale or bank owned property?  John Breaux can be reached at john@marathon-group.cz or +420 602 355 810 or +1 504-208-4331.