Florida Real Estate Purchase Agreement

Legal Aspects 

For sellers, drawing up the perfect purchase contract doesn’t just allow them to sell their property. It also allows them to protect their interests and ensure the buyer gets all the information they’re entitled to.

Writing Requirement

• Florida laws have four (4) essential requirements for a court of law to deem a purchase agreement valid.
  • One: The parties must enter the deal by mutual assent.
  • Two: The written contract must detail a valid offer and the acceptance of it.
  • Three: The parties must adequately consider the exchange of items of value.
  • Four: The agreement must be for a legal purpose, with both parties legally competent and able to enter the contract.

• Further, laws in Florida identify seven (7) requirements all contracts must have to be eligible in a court of law.
  • The written offer
  • The mutual consent of both parties
  • Identification of the parties
  • The property, its address, and legal description
  • Purchase price
  • Consideration of the exchange of items of value (generally the exchange of money)
  • Signatures of both parties

• Buyers cannot back out of the deal once they’ve signed it unless the seller adds provisions to the contract. If they back out, then it’s called a rescission, with only a few grounds deemed valid when backing out. These are mistakes in the contract, title defects, or fraud.

Required Disclosures

Florida also has a few disclosures sellers must add to the contract. Some depend on the property’s location or age, while others are always required. Below, we explain the various disclosures.

• Coastline Disclosure Form: The landlord must present this form if the property is on a coastline/oceanfront. It details that the area can be subject to erosion and local regulations.
• Condominium Disclosure: Should the property be part of a condominium community, the seller must present a specific disclosure form and the community’s articles.
• Homeowner’s Association Form: The seller must present a specific disclosure form if the property is located in a community or homeowner’s association.
• Property Tax Disclosure: Sellers must inform the buyers of the possibility of property tax increases. It includes a clause stating they can contact an appraiser for more information.
• Radon Gas: The seller must disclose the presence of radon gas before or when the buyer purchases the property.
• Lead-Based Paint: Should lead-based paint be present, the seller has to inform the buyer. It’s only applicable to buildings older than 1978.
• Seller’s Property Disclosure: The seller has to provide any facts about the property that materially affects its value or desirability. Generally, these defects aren’t readily observable or known to the buyer.