New Updates/Changes To The FR/BAR Residential Contract For Sale & Purchase
By: Barry Miller, Esq., of Barry L. Miller, P.A., Offices Orlando
The Florida Realtors/Florida Bar’s Residential Contract for Sale and Purchase and the “AS IS” Residential Contract for Sale and Purchase have recently been updated. Changes to the contact now includes the term “Closing Services.” In the past there have been disagreements on whether fees can be charged to buyers on certain types of transactions, mainly cash. The new terms are defined in paragraph 9 (c) and states:
“Closing Services” shall have the meaning ascribed to that term in Section 627.7711(1)(a), F.S.; each party shall bear their own Closing Services fees payable to Closing Agent or such other provider(s) as each party may select.”
The referenced statue 627.7711(1)(a) states:
“Closing services” means services performed by a licensed title insurer, title insurance agent or agency, or attorney agent in the agent’s or agency’s capacity as such, including, but not limited to, preparing documents necessary to close the transaction, conducting the closing, or handling the disbursing of funds related to the closing in a real estate closing transaction in which a title insurance commitment or policy is to be issued.
This new provision clarifies that title agents can charge a buyer a fee for closing services on cash transactions.
Under the default section, Paragraph 15(a) updated that now the Cooperating Broker will not share in the deposit in the event of a default.
The Condominium Rider (CR-7 A) has been revised and updated based upon new laws outlined in 718.503, Florida Statutes. Paragraph 6 was revised to require the seller to provide documents and the addition of governance forms if requested. The form was also revised to include the status and requirements of providing the Milestone Inspection, Turnover Inspection Report, and Structural Reserve Study. When listing a property, Agents should contact the property manager to ascertain which reports are applicable to the condominium and source the documents to disclose to a buyer and comply with the new requirements. If the documents are not provided, after requested, the buyer can void the contract anytime prior to closing, therefore it is imperative to precisely follow and provide the required documents.
Please note this article is for informational purposes only and should not be construed as legal advice. The facts and circumstances of each case, transaction, or matter can differ greatly. You should not use this information as a substitute for consulting with a licensed attorney. Barry L. Miller, P.A., and its attorneys, and staff, do not represent you unless you execute an engagement agreement with the Firm which confirms that representation.
Barry Miller Law is familiar with all aspects of real property law. If you, or someone you know, has legal questions concerning real estate, business or probate law, contact Barry Miller Law for assistance at 407-423-1700 or email us at info@BarryMillerLaw.com for a consultation.
