By: Melissa & Denise Stewart
There are several contingencies in a Real Estate Contract to buy a Florida Condo, and they are all in favor of the Buyer...
The 3 main contingencies the are for the protection of the buyer in a Florida contract to buy a condo are the Inspection, Loan & Appraisal, and Condominium Association Addendum.
This is the Inspection clause of a standard Florida Bar Contract:
PROPERTY INSPECTION; RIGHT TO CANCEL:
(a) PROPERTY INSPECTIONS AND RIGHT TO CANCEL: Buyer shall have ______ (if left blank, then 15)
days after Effective Date (“Inspection Period”) within which to have such inspections of the Property
performed as Buyer shall desire during the Inspection Period. If Buyer determines, in Buyer’s sole
discretion, that the Property is not acceptable to Buyer, Buyer may terminate this Contract by delivering
written notice of such election to Seller prior to expiration of Inspection Period. If Buyer timely
terminates this Contract, the Deposit paid shall be returned to Buyer, thereupon, Buyer and Seller shall
be released of all further obligations under this Contract; however, Buyer shall be responsible for
prompt payment for such inspections, for repair of damage to, and restoration of, the Property resulting
from such inspections, and shall provide Seller with paid receipts for all work done on the Property (the
preceding provision shall survive termination of this Contract). Unless Buyer exercises the right to
terminate granted herein, Buyer accepts the physical condition of the Property and any violation of
governmental, building, environmental, and safety codes, restrictions, or requirements, but subject to
Seller’s continuing AS IS Maintenance Requirement, and Buyer shall be responsible for any and all
repairs and improvements required by Buyer’s lender.
As you can see, a buyer can pretty much cancel the contract, and receive a full refund of the deposit, for pretty much any reason, which means that a seller really does not have a real solid contract unitl the inspection perion has expired.
This is the Loan/Mortgage contingency clause in a standard Florida Bar Contract:
This Contract is contingent upon Buyer obtaining approval of a ( ) conventional ( ) FHA ( )VA or other
______________ (describe) loan within _______ (if left blank, then 30) days after Effective Date (“Loan Approval Period”) for (CHECK ONE): ( ) fixed, ( ) adjustable, ( ) fixed or adjustable rate in the Loan Amount (See Paragraph2(c)), at an initial interest rate not to exceed _______ % (if left blank, then prevailing rate based upon Buyer’s creditworthiness), and for a term of _______(if left blank, then 30) years (“Financing”).
Again, the buyer is protected and the seller must wait until the buyer has a formal loan approval until the seller can feel secure that the deal is actually going to close.
The Condominium Rider has 2 provisions that protect the Buyer, and are escape clauses to the contract. The first is the clause which provides that the buyer must be approved by the Association:
CONDOMINIUM ASSOCIATION APPROVAL:
The Association’s approval of Buyer (CHECK ONE): is is not required. If approval is required, this Contract is
contingent upon Buyer being approved by the Association no later than _______________ (if left blank, then 5) days
prior to Closing. Within _______________ (if left blank, then 5) days after Effective Date Seller shall initiate the
approval process with the Association and Buyer shall apply for such approval. Buyer and Seller shall sign and deliver
any documents required by the Association in order to complete the transfer of the Property and each shall use
diligent effort to obtain such approval, including making personal appearances if required. If Buyer is not approved
within the stated time period, this Contract shall terminate and Buyer shall be refunded the Deposit, thereby releasing
Buyer and Seller from all further obligations under this Contract.
Again, the buyer can terminate the contract if the buyer is not approved by the association. This clause does provide that the buyer agrees to use "diligent effort" to obtain the approval.
The second provision in the Condo Addendum is the condo disclosure provision:
THIS AGREEMENT IS VOIDABLE BY BUYER BY DELIVERING WRITTEN NOTICE OF THE BUYER’S
INTENTION TO CANCEL WITHIN 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS,
AFTER THE DATE OF EXECUTION OF THIS AGREEMENT BY THE BUYER AND RECEIPT BY BUYER OF A
CURRENT COPY OF THE DECLARATION OF CONDOMINIUM, ARTICLES OF INCORPORATION, BYLAWS AND
RULES OF THE ASSOCIATION, AND A COPY OF THE MOST RECENT YEAR-END FINANCIAL INFORMATION
AND FREQUENTLY ASKED QUESTIONS AND ANSWERS DOCUMENT IF SO REQUESTED IN WRITING. ANY
PURPORTED WAIVER OF THESE VOIDABILITY RIGHTS SHALL BE OF NO EFFECT. BUYER MAY EXTEND THE
TIME FOR CLOSING FOR A PERIOD OF NOT MORE THAN 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, AFTER THE BUYER RECEIVES THE DECLARATION, ARTICLES OF INCORPORATION,
BYLAWS AND RULES OF THE ASSOCIATION, AND A COPY OF THE MOST RECENT YEAR-END FINANCIAL
INFORMATION AND FREQUENTLY ASKED QUESTIONS AND ANSWERS DOCUMENT IF REQUESTED IN
WRITING. BUYER’S RIGHT TO VOID THIS AGREEMENT SHALL TERMINATE AT CLOSING.
This provision is again an escape clause for the protection of buyers, and is strictly monitored and enforced by Realtors, buyers, and their attorneys.
If you have any questions about any condos for sale, please contact Denise Stewart at: firstname.lastname@example.org or tect or call 954 881 9148