Many details need to be checked and cross-checked by potential buyers and sellers before an agreement over the sale of a residential property can be reached.
Any withheld information about the property's condition that is included in the sale without the seller's knowledge can result in a lawsuit.
This is why Florida Realtors and the homeowners association encourage all potential buyers and sellers to sign a purchase and sale agreement.
Florida Real Estate Purchase Agreement
A Florida real estate purchase agreement is a written notice or statement notifying potential buyers and sellers of important aspects of the sale agreement, such as:
- The purchase price
- Transfer property taxes
- A form to disclose facts materially affecting the residential purchase
- Earnest money required
- Closing documents
- Added contingencies
The choice of things to include in your residential purchase and sale agreement is the sole discretion of the two parties involved in the transaction.
However, in most cases a Florida residential purchase agreement usually contains the following:
- Details of the person responsible for the purchase and sale agreement, such as a real estate agent, or attorney
- The details of both parties, such as names, addresses, and contact numbers
- Any amount agreed on for Earnest Money Deposits
- Contingencies, such as those for appraisal, title, and financing
- The Caveat Emptor or "buyer beware" clause
- Signatures of both parties
Property Tax Disclosure
While there are a lot of important aspects of a Florida residential purchase and sale agreement the Property Tax Disclosure summary is of particular importance because it has the potential to affect the overall cost of the house in a big way if the buyers are not careful.
According to Florida statutes, buyers need to be aware that they must not depend on the figures for the property taxes the seller was paying to estimate how much taxes they will be paying the following year.
The required disclosures for sale and purchase agreements include such information about the real property that will affect the buyer's offer, for example:
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What Are Transfer Property Taxes?
These are taxes charged when the property is transferred from the seller to the buyer and may be in the form of real estate transfer tax, deed tax, or conveyance tax, depending on the state.
What Is Meant by Effective Date or Closing Date?
This is simply the date on which the things outlined in the purchase and sale agreement become binding.
What Does an Escrow Agent Do in a Residential Sale?
The escrow agent holds the real estate in trust while the transactions are being concluded and transfer the money from the buyer to the seller.
What Is the Importance of Title Insurance?
Title insurance is important when borrowing money to finance the purchase of a house because it is required by the bank in case something was to go wrong.