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In Florida's bustling real estate market, understanding the nuances of contracts is crucial for successful transactions. Whether you're a buyer or a seller, every step in the process demands careful attention to detail. In this guide, we'll explore the essential aspects of Florida's real estate contracts, providing valuable insights for both agents and clients.
Calculating Time Periods
In Florida, the calculation of time periods in real estate contracts varies depending on the contract type. For example, contracts under Florida Realtors/Florida Bar (FR/Bar) utilize calendar days, including weekends and holidays. On the other hand, the Florida Realtors Contract for Residential Sale and Purchase (CRSP) bases its calculations on business days. Commercial and Vacant Land Contracts also follow calendar days but exclude weekends and holidays for shorter time periods of 5 days or less.
Cancellation of Agreements
Cancellation procedures differ for listing agreements and contracts. Canceling a listing agreement requires mutual agreement between the seller and broker. Buyers, especially under an AS IS Residential Contract, have strong cancellation rights during the inspection period. Military personnel may terminate contracts with permanent change of station orders, provided proper documentation is provided.
Authorization for Closing Documents
Sellers can authorize someone else to sign closing documents through power of attorney, but the document must comply with Florida law and be properly notarized.
More on Time Periods
Definitive termination dates in listing agreements are essential to adhere to state regulations. Extensions to contract timelines can be made through the Extension Addendum to Contract, providing a quick and easy way to modify common contractually defined time periods.
Post-Closing Leasing Arrangements
Both buyers and sellers should carefully review post-closing leasing arrangements. Buyers retain the option to terminate contracts if lease terms post-closing are unsatisfactory, as outlined in the contracts.
Closing Date and Handling of Offers
Failure to close on the agreed date doesn't automatically terminate the contract; instead, the issue of breach is examined. Sellers aren't obligated to accept any offer and may counter multiple offers. It's important to note that there's no law requiring written communication of offer rejections.
Appraisal Contingency and Addenda
The absence of an appraisal contingency in core Florida Realtors/Florida Bar Contracts means buyers must use an addendum if they desire such protection. Addenda can override pre-printed contract provisions if there are inconsistencies.
Assigning Contract Rights
Buyers have the ability to assign contract rights with an assignable contract and a written Assignment of Contract Agreement, a process that should involve legal counsel to ensure proper execution.
Location of Closing
While Florida law doesn't mandate the location of a cosing, contract terms may specify it.
Presenting Offers
Agents must present all offers and counteroffers in a timely manner unless instructed otherwise in writing by the party, emphasizing the importance of clear communication in real estate transactions.
Understanding these laws and regulations is crucial for both buyers and sellers in navigating Florida's real estate market effectively. For further clarification on specific contract rights and obligations, seeking legal advice is advisable.