[BUYING AND SELLING REAL ESTATE IN THE UNITED STATES - FLORIDA]
266
KEY FACTS OF REAL ESTATE ACQUISITIONS UNDER FLORIDIAN LAW I. STANDARD FORMS OF AGREEMENTS
3. Letters of Intent may or may not be binding depending on the language utilized; they are usually non-binding. C. While utilized in other states, an Offer to Purchase is not commonly used in Florida. II. BROKERS A. There are four general types of brokers: 1. Residential Brokers a. Sell homes, condos, vacant lots 2. Commercial Brokers a. Office buildings, vacant land, shopping centers, apartment
A. Purchase and Sale Agreement sets forth the complete terms of the purchase and sale including, among other things, price, security deposit, allocation of costs of the transaction, date for closing, inspection period, financing, title contingencies, escrow information, representations, warranties, covenants, and default provisions. 1. Either party’s attorney can prepare the initial draft of the Purchase and Sale Agreement. 2. FARBAR Form – this is the pre-printed form of Purchase and Sale Agreement typically used in Florida for residential real estate transactions; parties can freely negotiate the terms and provisions contained in the FARBAR. 3. The assignment of a Purchase and Sale Agreement can be prohibited or restricted if expressly stated in the document (for example, seller can restrict buyer to only being able to assign contract to an entity related to buyer). B. Letter of Intent, like a term sheet, is sometimes utilized in commercial transactions to outline the basic terms of a transaction before drafting and negotiating a Purchase and Sale Agreement. 1. Beneficial because allows parties to put to paper key terms to deal, which helps facilitate agreement on the remaining terms. 2. Signing letter of intent adds level of formality and gravitas to negotiations.
buildings, raw land, warehouses, industrial facilities. Multi-family Apartments: include Retail, Office, and Industrial subcategories.
3. Leasing Brokers a. Specialize in leased properties (tend
to focus on commercial properties, which includes retail, office, and industrial).
4. Mortgage Brokers a. Facilitate mortgage lending in both residential and commercial transactions b. They typically receive commission based on a percentage of the loan amount or a flat fee B. Must be licensed in Florida and they are regulated by state law C. Real estate brokers usually enter into listing agreements with sellers, and they typically receive a commission based upon a percentage of the sales price (generally 6%, but commonly negotiated); if there is a co-broker, the listing broker
ILN Real Estate Group – Buying and Selling Real Estate Series
Made with FlippingBook Online newsletter