Purchase and Sale Agreement
You should retain an experienced attorney before signing a purchase and sale agreement for property in South Florida. Once both parties sign this agreement, the buyer generally does not have the right to cancel unless the contract expressly states that they have this right. However, in certain circumstances, special rules may apply. For example, a seller of a residential condominium must include a three-day rescission period clause or a clause in which the buyer acknowledges receiving pertinent documents over three days before the contract is executed. As a buyer, this period allows you an opportunity to review the declaration to make sure that no restrictions, such as a rule against pets or children, will interfere with your intended use. At Stok Folk + Kon, our Fort Lauderdale real estate lawyers can advise you about any of your concerns in connection with a purchase and sale agreement, and we can also prepare an agreement on your behalf.Protecting Your Interests in a Purchase and Sale Agreement
Certain terms and clauses are common in most purchase and sale agreements in South Florida, but there may be quirks or individual differences in connection with a particular agreement. When you are buying property, the agreement may include a limited period of time during which your attorney can review the contract and you can cancel the contract if it is unfavorable to your interests. As a buyer, it is crucial to make sure that your purchase and sale agreement includes such a clause so that you can retain an attorney if you have not done so.
Crucially, purchase and sale agreements should include various contingencies that are important to the buyer. A purchase and sale agreement might include a provision allowing for appraisals, for example. This would allow a buyer to cancel the contract if an appraisal does not support the purchase price. A financing contingency may also be necessary for a buyer who requires a mortgage to close the transaction. If a buyer were unable to secure financing, such a contingency clause would allow them to back out of the deal. Similarly, a buyer may want a provision related to the availability of insurance. Sometimes insurance is exorbitant for certain properties, such as waterfront properties. A clause in the contract can ensure that the buyer is able to secure the necessary insurance for a certain price or otherwise terminate the contract.
In a bidding war or another competitive market situation, a buyer may not be able to conduct all of the investigation that they need to conduct to make sure that a property is suitable. A purchase and sale agreement can account for the buyer's need to ensure that remodeling or renovation can occur in accordance with the buyer's wishes. The agreement can also include a clause indicating that the buyer will accept property subject to particular reservations, easements, and restrictions.
Often, purchase and sale agreements will also include an inspection provision that allows a buyer the opportunity to inspect the property for defects such as mold, environmentally hazardous substances, pests, or radon. This is important to both parties because it allows the seller an opportunity to correct the problem. For some buyers, it is important to allow a right of cancelation in case the buyer is not satisfied with the discoveries found in a home inspection. For example, there may be latent defects or structural deficiencies that reduce the value of the home or make the home unsuitable for the buyer.Enlist an Experienced Fort Lauderdale Lawyer for Your Real Estate Needs
The Fort Lauderdale real estate attorneys at Stok Folk + Kon can provide you with experienced legal counsel in connection with a purchase and sale agreement or prepare this instrument on your behalf. Our firm has represented condo owners, homeowners, landlords, tenants, business owners, property management companies, and private equity lenders. We also serve clients in Fort Lauderdale, Hallandale, Hollywood, Coral Springs, Pembroke Pines, and other cities in Miami-Dade, Broward and West Palm Beach Counties. Call us at (954) 237-1777 or complete our online form to schedule an appointment if you need a real estate closing attorney or guidance at another stage of a property transaction.