This fasTrain (quick-training guide) offers important considerations to guide the attorney in representing either the buyer or seller in the purchase or sale of a single family residence. The text addresses the role of the attorney in dealings with Realtors, appraisers, inspectors, lenders, and other professionals who might be involved in the sale. It outlines the duties and rights of both the buyer and seller and the responsibilities of real estate agents, title insurers, and closing agents. Contract clauses and negotiation tips and strategies are provided and the FAR/Bar Contract for Sale and Purchase is included. From the initial client conference to the recording of documents and advising the client of tax consequences, this training manual covers all aspects of a typical sale. Contract riders, required disclosures, and affidavits are provided, and the FAR/Bar “As Is” Contract for Sale and Purchase is included. In all, over 20 forms give the attorney the tools necessary to ensure that the client is well served
Visit our Florida Bar Continuing Legal Education Publications website for a complete list of The Bar's titles.
FL Bar
04-28-04
22951 11
View a Sample Chapter
TABLE OF CONTENTS/CHECKLIST
I. PRELIMINARY CONSIDERATIONS
A. Determine Proper Approach To Client And Transaction
1. In General
2. Status Of Transaction
B. Advise Client Regarding Nature Of Sales Transaction
1. Discuss Steps Required In Typical Sale
2. Discuss Proposed Action of Attorney
3. Consider Alternatives To Sale
a. In General
b. Lease
c. Agreement For Deed
d. Purchase Option
e. Sale/Leaseback
4. Discuss Employment Of Other Professionals
a. In General
b. Real Estate Agents
c. Inspectors
d. Accountants Or Tax Consultants
e. Environmental Analysis
f. Pest Control Technicians
g. Appraisers
h. Surveyors
i. Title Insurers
5. Review Potential Ethical Issues
C. Open File And Record Factual Information
D. Draft Retainer Agreement Or Contract
II. ADVISE CLIENT REGARDING REAL ESTATE PERSONNEL AND IMPLICATIONS OF LISTING AGREEMENTS
A. In General
B. Types Of Licensees
C. Roles Of Licensees
1. In General
2. Single Agent
3. Transaction Broker
4. Transition To Transaction Broker
5. No Brokerage Relationship
D. Disclosures Of Relationship
1. In General
2. Notice
3. Transition Consent And Notice
E. Other Requirements Of Brokers
1. Personal Interest
2. Disclosure Of Defects
3. Permissible Activities
4. Deposits And Escrows
F. Brokers' Agreements
1. In General
2. Types Of Listing Agreements
a. Open Listing
b. Exclusive Agency Or Exclusive Transaction Broker Listing
c. Exclusive Right Of Sale Listing
3. Compensation Of Broker
III. ADVISE CLIENT REGARDING ENFORCEABILITY OF CONTRACT FOR SALE
A. In General
B. Adequacy Of Writing And Signatures
C. Designation And Competency Of Parties
D. Adequacy Of Consideration
E. Adequacy Of Property Description
F. Servicemember's Right To Terminate Contract
IV. NEGOTIATE SPECIFIC CONTRACT TERMS/PREPARE CONTRACT
A. In General
B. Local Custom
C. Manner Of Holding Property
1. In General
2. Tenancy By The Entireties
3. Tenancy In Common
4. Joint Tenancy With Right Of Survivorship
D. Property Description
E. Price Of Property
F. Deposit
G. Conditions
1. In General
2. Mortgage Financing
a. Options
b. Terms
c. Method Of Payment
3. Inspections
a. In General
b. Structural And Mechanical Components
c. Pest Infestation
d. Environmental Contamination
e. Soil Conditions
4. Survey
5. Buyer's Sale Of Existing Home/Seller's Acquisition Of New Home
6. Approval By Homeowners' Or Condominium Association
7. Evidence Of Title
a. Marketability Established
b. Deadlines And Payment Provisions
c. Seller's Opportunity To Cure Defects
d. Exceptions
e. Insuring The Gap
f. Form Regarding Title Evidence
8. Other Contingencies
H. Seller's Warranties And Disclosures
1. In General
2. Typical Contract Riders
a. Coastal Property
b. Homeowners' Associations
c. Condominium Resales
d. Lead Paint Hazard
e. Foreigners
f. VA/FHA
g. "As Is" Status
h. Comprehensive Rider
3. Other Disclosures And Representations
a. Radon Gas
b. Mold
c. Energy Efficiency
d. Property Taxes
e. Ingress And Egress
f. Easements And Restrictions
g. Occupancy
h. Liens Or Encumbrances
i. Property Defects
j. Misrepresentations And Fraud
I. Time Periods
1. Offer-Acceptance
2. Effective Date
3. Closing Date
4. No Time Stated
5. Time Of The Essence
J. Location Of And Procedure For Closing
K. Escrows
L. Prorations
M. Default
N. Risk Of Loss
O. Documents Required At Closing
P. Expenses
Q. Notice
R. Recordation Of Contract
S. Assignment
T. Like-Kind Exchange
U. Contract Interpretation
1. Typewritten Or Handwritten Provisions
2. Oral Modifications
3. Severability
4. Waiver
5. Merger
6. Gender And Plurality
7. Persons Bound
8. Application Of Florida Law
V. Broker's Signature
W. Attorneys' Approval
X. Attorneys' Fees
Y. Home Warranty
V. REVIEW LAW OF OFFER/ACCEPTANCE
VI. CONDUCT PRE-CLOSING FOLLOW-UP
A. In General
B. Review Pre-Closing Checklist
1. In General
2. Conditions Regarding Title
a. Real Property
b. Personal Property
3. Conditions Regarding Property
a. Survey
b. Inspections
4. Other Conditions
a. Financing
b. Consents
5. Homeowners' Insurance
6. Utilities
C. Review Practice Pointers Regarding Items On Checklist
1. Preparation Of Documents
2. Timely Review Of Documents And Report Of Problems
3. Title Commitment
4. Loan Commitment
5. Promissory Note And Mortgage
6. Assumption Of Mortgage Package
7. Bill Of Sale On Personalty
8. Verification/Certification Letters
9. Estoppel Letters
10. Seller's (Or Owner's) Affidavits
11. Survey
12. Inspections
13. Homeowners' Insurance
14. Closing Statement
a. In General
b. Charges To Buyer
c. Credits To Buyer
d. Expenses
15. Form Of Deed
D. Selecting Closing Agent And Closing Locale
E. Conduct Pre-Closing Walk-Through
F. Review Closing Document Checklist
G. Advise Client Regarding Closing Procedure
VII. ATTEND CLOSING
VIII. HANDLE POST-CLOSING ISSUES
A. In General
B. Record Sales Documents
C. Obtain Title Insurance Policy
D. Re-Prorate Real Property Taxes
E. Protect Sale Proceeds For Homestead Investment
F. Advise Seller Regarding Common Tax Issues
G. Advise Buyer Regarding Homestead Exemption
H. Close Client File
IX. FORMS AND CONTRACT CLAUSES
A. Client Information Sheet
B. Retainer Agreement
C. FAR/Bar Contract For Sale And Purchase
D. Financing Clause
E. Environmental Hazards Clause
F. Soil Condition Clause
G. Comprehensive Rider
H. Seller's Purchase Of Suitable Residence
I. Title Evidence
J. FAR/Bar "As Is" Contract For Sale And Purchase
K. Affidavit Of No Liens
L. Allocation Of Closing Costs
M. Notice Clause
N. Like-Kind Exchange
O. Contract Interpretation Clauses
P. Bill Of Sale
Q. Lien Or Assessment Certification
R. Tax Certification
S. Affidavit Of Continuous Marriage
T. Seller's Affidavit
U. Document Cover Page
V. Pre-Closing Inspection Acknowledgment
W. Seller's Certification For Tax Purposes
Worldwide
Leadership