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What Should I Include in my Florida Purchase and Sale Agreement?

There are several key components that should be included in your Florida residential purchase agreement, including:

  1. The names of the buyer and seller.

  2. A description of the property being sold, including the address and legal description.

  3. The price of the property.

  4. The terms of financing, if any.

  5. The date of the sale.

  6. The date of possession.

  7. A statement that the property is being sold “as is” with all faults.

  8. A provision allowing the buyer to obtain a professional inspection of the property within a certain time period prior to the closing of the sale.

  9. A provision specifying that the seller will make all necessary repairs to the property prior to closing, at the seller’s expense.

  10. A clause making the purchase and sale agreement void if any of the terms are breached by either party.

By including these key components in your Florida purchase contract, you can help to ensure a smooth and successful real estate transaction.

How to Fill Out a Florida Purchase and Sale Agreement?

A Florida residential purchase and sale agreement has to include all the important details to be legally binding.

1. The names of the buyer and seller.

Start filling in the document by typing in the full legal name of the person or entity who will be assuming ownership of the residential property (the “buyer”). Then, enter the name of the individual or business who currently owns the asset and intends to transfer it (the “seller”).

2. The date of the contract.

Type in the current date on which both the buyer and seller have agreed to the terms of this residential purchase and sale agreement.

3. The address and legal description of the residential property.

The next task is to provide a physical address for the real estate in question as well as a brief legal description. This will usually include the parcel number assigned to the land by the county.

4. The purchase price.

Be sure to include the full amount that the buyer has agreed to pay for the residential property. This should be listed in numerical form as well as in words. If the purchase agreement sets the details of the purchase of personal property, such as appliances or furniture, be sure to itemize these items and their respective values.

5. The earnest money deposit.

In most cases, the buyer will be required to make a good faith deposit (also known as an “earnest money deposit”) at the time of signing the contract. This is usually in the form of a check or money order made out to the seller. The amount of the deposit should be specified in this section.

6. The closing date.

The date on which the sale will be finalized and the residential property officially transferred to the buyer should be entered next. This is typically 30-60 days from the date of the purchase agreement, but may be sooner or later depending on the situation.

7. The financing contingency clause.

This clause protects the buyer by stating that the sale is contingent on the buyer obtaining financing. If the buyer is unable to secure a loan within a specified period of time, they may back out of the contract without penalty.

8. The home inspection contingency clause.

This clause gives the buyer the right to have the property inspected by a qualified professional prior to closing. If the inspection reveals any problems with the property, the buyer may either renegotiate the purchase price or cancel the contract altogether.

9. The seller’s disclosures.

In Florida, sellers are required to disclose certain information about the property to buyers prior to entering into a contract. This includes information about any known defects or problems with the property, as well as any environmental hazards.

10. The signatures of the buyer and seller.

Both the buyer and seller must sign and date the contract in order for it to be legally binding. It is recommended that each party keep a copy of the signed agreement for their records.

When to Use a Florida Purchase and Sale Agreement?

A Florida purchase contract should be used whenever real property is being sold in the state of Florida. This contract can be used for the sale of a home, condo, land, or any other type of real estate. A residential purchase and sale agreement is beneficial to the parties because it sets forth the terms and conditions of the sale, including the price, financing arrangements, inspections, repairs, and other important aspects of the transaction. This contract is binding on both the buyer and the seller, and any changes must be agreed upon by both parties in writing.

When Not to Use a Florida Purchase Contract?

There are some situations when a Florida purchase contract should not be used, including:

  1. The sale of personal property, such as furniture or cars.

  2. The sale of securities, such as stocks or bonds.

  3. The sale of a business.

  4. The sale of property located outside of Florida.

What Are the Risks Associated with a Florida Purchase and Sale Agreement?

There are some risks associated with entering into a Florida residential purchase agreement, including:

  1. The buyer may back out of the deal at any time prior to closing, leaving the seller high and dry.

  2. The buyer may not be able to obtain financing, which could result in the deal falling through.

  3. The property may have hidden defects that are not discovered until after the sale is complete.

  4. The parties may not be able to agree on necessary repairs, resulting in a delay or cancellation of the sale.

  5. The buyer may default on the loan, leaving the seller responsible for the mortgage payments.

  6. The property may be damaged or destroyed prior to closing, leaving the seller liable for any repairs.

  7. The deal may not close on the scheduled date, resulting in a loss of interest or other damages.

  8. The buyer may refuse to sign the deed over to the seller, resulting in a legal battle.

  9. The buyer may not have the necessary down payment, resulting in the deal falling through.

  10. There may be liens or other claims against the property that are not discovered until after the sale is complete.