Contracts FAQs

Yes, buyers in Florida can back out of a real estate contract during the inspection period for any reason at all. Under the standard AS IS contract used across South Florida, Paragraph 12 gives buyers "sole discretion" to cancel and receive their full deposit back. Most inspection periods run between 7 and 14 days. However, once that window closes, your options shrink fast, and...

The seller pays both commissions in most South Florida residential transactions. Total commission ranges from 5% to 7% of the sale price and is fully negotiable. Since August 2024, buyer agent compensation can no longer appear on MLS listings. Instead, the buyer's agent submits a commission request alongside their offer. Then the seller and listing agent decide how to...

The contract structure matters more than the funding source. A financed buyer with a large escrow deposit, a 14-day close, and a shortened inspection window can stand toe-to-toe with cash. What sellers really want is certainty that the deal will close. A well-structured financed offer delivers that certainty when every detail is locked in before the contract gets...

Buyers protect their earnest money deposit in Florida by following the contractual deadlines written into the purchase agreement and canceling in writing before any contingency window closes. In South Florida, escrow deposits typically range from 1% to 3% of the purchase price. On a $500,000 home, that means $5,000 to $15,000 of your cash is sitting with a title company or closing...

A legitimate offer arrives in writing on a standard FAR/BAR contract. It includes a preapproval letter or verifiable proof of funds. The listing agent validates it by calling the lender directly and probing the buyer's financial qualifications. For cash deals, the escrow deposit amount tells the real story. A verbal promise or a PDF with impressive numbers does not make an offer...

You cannot list your half on the open market the way you would sell a home you own alone. Instead, you can transfer your interest to the other owner through a buyout agreement or a quitclaim deed. If the relationship has broken down, a partition action forces a court-ordered sale. The right path depends on the trust between you and the person on the other side of the...

Florida does not require buyers or sellers to hire a real estate attorney for a residential closing. Most transactions use a single title company or law firm as the closing agent, and no additional legal representation is involved. However, attorney involvement becomes more common and more valuable on deals above $1 million, on complex transactions, and for out-of-state buyers who...

Yes, buying a home "as is" in Florida is completely legal. In fact, nearly every residential real estate transaction in the state uses the FAR/BAR "As Is" Residential Contract for Sale and Purchase. This standardized form, approved by Florida Realtors and The Florida Bar, means the seller has no obligation to make repairs. However, it does not strip the buyer of protections. You...

The biggest legal mistakes first-time homebuyers make are missing contract deadlines, skipping proper financing vetting, and not protecting their escrow deposit. In Florida, most residential purchase contracts are "time is of the essence" agreements, meaning every deadline carries legal weight. Miss the wrong one by even a day, and your earnest money deposit could be at risk. In...

The biggest red flags are not always obvious line items. They hide in the relationship between the escrow deposit, the inspection timeline, and the financing contingency. A $1,000 deposit paired with a 30-day inspection window and a financing contingency that runs to close gives the buyer every exit in the book. Meanwhile, the seller sits locked out of the market. The ability to...

A transaction broker is a real estate licensee who facilitates a deal without owing fiduciary loyalty to either the buyer or the seller. Under Florida Statutes Chapter 475, every licensee is presumed to operate as a transaction broker unless a different relationship is established in writing. This comes into play in roughly 40% to 50% of home sales when a buyer shows up without...

Buyers should review the title report for outstanding mortgages, liens, open notices of commencement, and exceptions to coverage before closing on a property. In Florida, the title commitment breaks down into three sections: Schedule A (property and ownership details), Schedule B-1 (requirements that must be cleared), and Schedule B-2 (exceptions the policy will not cover)....