ILN: Buying and Selling Real Estate - An International Guide

[BUYING AND SELLING REAL ESTATE IN THE UNITED STATES - FLORIDA]

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will usually share the commission with the co-broker. D. Real estate brokers are paid by the seller, and they owe fiduciary duties to the party that they represent. III. BUYER’S INSPECTIONS A. Residential: Prior to Closing, the Buyer will typically perform property inspections including inspection for structural issues, radon, asbestos, pest infestation or damage, title searches, survey, and in certain rare circumstances, lead paint and underground storage tanks (for oil or propane). Buyers should also order municipal lien/open permit searches to confirm there are no outstanding governmental violations, liens, or fines and to confirm that all alterations and renovations have been completed in compliance with permits and all permits are properly closed out. B. Commercial: In addition to the inspections described above for residential buyers, commercial buyers also usually obtain an environmental inspection (Phase I, and if necessary, Phase II), and a land use and zoning/permitting analysis. C. The Purchase and Sale Agreement typically designates an inspection period (also known as due diligence period), during which buyer has a specified amount of time (usually 30-45 days) to conduct the above referenced inspections as well as investigate any title issues or zoning and land use concerns; buyer generally may terminate the contract during this inspection period for any or no reason and receive a return its initial deposit.

A. As-Built the improvements over a given parcel of land and can be utilized both prior to construction and post-construction. B. ALTA/ACSM – standards by which Surveys – depict surveyors are held; many lenders require that the surveyors meet these standards and requirements (these are national requirements, not just Florida). C. Benefits of Surveys 1. Ensure property actually exists 2. Determine relationship of property to other properties 3. Ensure the record boundary lines are actually the ones being occupied/ used 4. Determine physical location of improvements and easements 5. Determine whether there are any encroachments on the property FORMS OF OWNERSHIP A. Residential Property is usually held in a nominee trust, an estate planning trust, or an individual’s own name (especially if the property is the owner’s homestead so that the owner is afforded certain homestead rights and protections provided under Florida law). Joint owners may take title as: 1. Tenants in Common (each own 50%); 2. Joint Tenants with rights of survivorship (they own the property jointly and upon the death of one of the joint tenants, the property automatically passes to the surviving joint tenant(s)); or 3. Tenants by the Entirety if the owners are married (they each own the

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ILN Real Estate Group – Buying and Selling Real Estate Series

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