When buying or selling a property in Florida, a real estate contract is a crucial part of the process. This legally binding agreement outlines the terms and conditions of the Florida property transaction. Buyers and sellers often ask if hiring an attorney to review and negotiate the contract is worth the cost. We normally answer by using a comparison to health insurance. While it isn’t required, wishing you had it after it’s too late can be devastating.
Key Components of a Real Estate Contract
Even the simplest of Florida real estate contracts can be confusing. That’s why people routinely call us for help to reverse the effects of a contract that was signed without proper review. Below we have outlined a brief overview of the key components you should understand:
- Basic Information: The contract typically includes essential details such as the names of the buyer and seller, the property’s address, and the purchase price. It also specifies the type of property being sold, whether it’s a single-family home, condo, or land.
- Contingencies: These are the conditions that must be met for the sale to proceed. Common contingencies include financing, inspection, and appraisal. If these conditions aren’t met, the contract can be voided without penalty.
- Closing Details: The contract sets a closing date, the day when ownership officially transfers. It also outlines what happens if either party fails to meet their obligations by this date, including potential penalties.
- Earnest Money: This is a deposit made by the buyer to show serious intent. The amount is negotiated and is usually held in escrow until closing. If the deal falls through due to a contingency, the buyer may get their earnest money back.
- Disclosures: Sellers are often required to disclose any known issues with the property, such as structural problems or past repairs. This protects buyers from unexpected surprises and ensures transparency.
- Special Clauses and Addendums: Depending on the deal’s specifics, additional clauses or addendums may be included. These can cover anything from the inclusion of certain appliances to agreements about repairs.
Hiring an attorney to review and, in some cases, negotiate your real estate contract will protect your interests and give you peace of mind during this important transaction. Some of the benefits of having a real estate lawyer are to prevent costly expenses due to mistakes or unfair terms, to renegotiate terms in your best interest, and to expedite the completion of your executed contract.
At The Law Office of Donna Hearne-Gousse, P.A., our staff is trained to guide our clients and protect their best interests. So, whether you are the buyer or the seller in a real estate transaction, our law firm can represent you from contract inception through closing.
The Law Office of Donna Hearne-Gousse
(561) 582-5670