Thursday, May 7, 2015

The Florida Real Estate Contract (and Time).

I am not an attorney.  This is not meant to be a lesson in contract law.  Since most people do not buy and sell real estate routinely this post contains some general observations by a Florida real estate broker.

The contract to which I refer is the Florida Realtors/Florida Bar Contract for Sale and Purchase.  While the obvious things like property location, offer amount and terms are important another less noticeable item is quite important - dates and days 

In other words, time.

Contained within the multiple pages is this bold printed sentence  "Time is of the essence in this contract."

Most real estate agents end up having to remind their customers to not forget the "time" elements and their importance to the process.

What are some of these time elements and situations?

First, the most important one to buyers and sellers is the most obvious, the closing date.  After all, the sale or purchase is the "ultimate event."

The closing date designates the day ownership transfers.  Unless there is some post occupancy agreement or lease in place then it is customary and expected for a property to be vacant, cleaned and ready for the new owners on the date of closing.

But there are other "times" buyers and sellers need to be as concerned about as well.   The first one that sticks out is the time for acceptance.  The buyer puts a response due by date when the offer is prepared.  If there is a counter offer there is another response due date for the buyer.

And if there is an inspection contingency (and there almost always is) there will be a deadline.  It is this property inspection contingecy buyers should view as a "get out of jail free card." 

Read "Do inspection contingencies allow buyers to walk too easily?"

Other "times" may include a loan application, mortgage approval/loan commitment, title commitment, surveys, permit issues (if any), etc. or whatever else may be required by the circumstances of the sale (short sales, estate sales, for example).

My point here is simply to remind buyers and sellers to know the dates and deadlines in your home purchase/sale.   If it were not so important the attorneys would not have included the bolded statement...

  "Time is of the essence in this contract."

Ready to sell your Melbourne, Florida home?  Call me at 321-693-3850 if I can help.  Ready to buy a home in Florida, I can help!

Again, I want to remind the reader...I AM NOT AN ATTORNEY.