FAR/BAR “As Is” Residential Contract for Sale and Purchase including Standards, Definitions and Riders
COURSE DESCRIPTION:
- This program reviews, line by line and clause by clause, the Florida Association of Realtors/Florida Bar (“FAR/BAR”) “As is” residential contract for purchase and sale, as well as disclosures, riders, and standards to this contract.
- In addition, Florida caselaw is discussed to illustrate how the standards, definitions, disclosures, riders, and the FAR/BAR contract clauses are interpreted by the courts and how they affect the parties and real estate professionals.
- Emphasis is on avoidance of real estate agent/broker liability.
LEARNING OBJECTIVES:
Upon completing this course, the participants should be able to:
- Understand contract formation: Offer, Acceptance and Consideration (Price); Standard P, Integration, modification Clause; Agency and the duties of an agent; Use of Standards, Definitions and Riders in the FAR/BAR “As Is” Contract; Parties and their legal designations; Homestead Rights; Property and its legal description; Meaning of “time is of essence.”
- Understand the different varieties of Occupancy and Possession: Clause 6(a), Occupancy free of tenants; Clause 6(b), Property subject to lease or occupancy after Closing, Rider T, Pre-Closing Occupancy by Buyer; Rider U, Post-Closing Occupancy by Seller,
- Analyze Lease and other Seasonal/Vacation Occupancy: Standard C, Ingress and Egress; Lease, including Estoppel Letter/Seller’s Affidavit; Rider DD, Seasonal and Vacation Rentals after Closing; Standard K, Prorations of advance rent and security deposits.
- Learn the legal and practical impact of financing clauses, financing contingency: Types of financing, Rider C, Seller financing (purchase money mortgage); Rider D, Assumption of Existing Mortgage; Financing Contingency including good faith and diligent effort to obtain Loan Approval; Relationship between the Loan Approval and financing contingency; Standard O, Notice; Impact of written notice prior to expiration of Loan Approval period.
- Navigate Rider F, Appraisal Contingency: Distinguish financing contingency from appraisal contingency; Appraisal Gap Addendum; Rider E, FHA/VA and the Amendatory (escape) clause
- Understand other key contingencies that can disrupt a Sale: Rider V, Sale of Buyer’s Property; Rider X, Kick Out Clause; Right of First Refusal by Third party (e.g. homeowner’s association); Military: How Service members can terminate Contract.
Relevant information and great class room discussion. Valuable information exchange.
Highly recommended class.
This class should be mandatory for all agents. Thank you!!
Well-versed.
Very interesting and knowledgeable. Thank you, Kamlesh.
Excellent class.
Just a note to say “thanks” for the class. I learned some new things…
Great class on all aspects of Contract for sale. Kamlesh explained in detail what is critical in a sale contract. Happy to have attended this class.
- Appreciate the complexity of Rider A, Condominium Rider, and impact of Surfside Building Collapse on Condominium market: Special assessments; Milestone Inspection and Fla. Stat. §553.899; Structural Integrity Reserve Study (SIRS) as defined in Fla. Stat. §718.112; Turnover Inspection Report as defined in Fla. Stat. §718.301; Buyer due diligence; Black-listed Condominiums.
- Calculate the Closing costs, fees, charges, and title Insurance; Understand the meaning and impact of Survey and municipal lien search; Costs to be paid by Buyer and Seller; Owner’s and Lender’s Title Insurance policies; Title Commitment; Municipal lien search and legally enforceable claim against Property for unpaid debt to a municipality for unpaid utilities and special assessments; Florida laws on liens by municipal/governmental entities; Cloud on Title including Unrecorded liens, Plat restrictions, Easements, Unpaid taxes and mortgages, Judgments against owners, Adverse possessions, Boundary disputes, Contested ownership, and forgery/fraud; Surveys including Boundaries and encroachments and easements; Boundary by acquiescence; Environmental Issues and hazardous substances including the Comprehensive Environmental Response, Compensation and Liability Act (“CERCLA”), Superfund Amendment and Reauthorization Act (“SARA”); Disclosure P; Rider H, Homeowner’s/Flood Insurance; Home warranty and Clause 9(e); Special assessments and Clause 9(f).
- Learn how to facilitate disclosures by Parties: Permits and Clause 10(b); Inspection Contingency and Clause 12 (Property Inspection; Right to Cancel) and burden to resolve permit issues on Buyer; Rider L, Right to Inspect and Right to Cancel; Seller Disclosure Rider; Duty to Disclose and Clause 10 (j), Johnson v. Davis, 480 So.2nd 625 (Fla. 1985); Standard V, FIRPTA.
- Understand the concepts of Duties, Indemnification, Default, Dispute Resolution, Attorney’s fees; Duties of Escrow Agent; Escrow Closing Procedure; Duties of Broker; Duties of Listing Agent; Indemnification of Broker by Buyer, Seller; Buyer and Seller defaults; Rider BB, Binding Arbitration.
- Learn other Riders and Standards available for use: Standard K, Proration, Credits; Standard L, Access to Property; Standard M, Risk of Loss; Standard N, 1031 Exchange; Standard Q, Waiver; Standard R, Riders, Addenda, Typewritten or Handwritten Provisions; Standard U, Applicable Law and Venue; Standard X, Buyer Waiver of Claims; Rider M, Defective Drywall; Rider W, Back-up Contract; Rider Y, Seller’s Attorney Approval; Rider Z, Buyer’s Attorney Approval; Rider O, Insulation Disclosure for New Residence; Rider Q, Housing for Older Persons and the Housing for Older Persons Act (“HOPA”); Rider Y, Rezoning Contingency; Rider S, Lease Purchase/Lease Option; Rider AA, Licensee Disclosure of Personal Interest in Property; Rider CC, Miami Dade Ordinance; Rider EE, PACE Disclosure; Rider FF: Credit Related to Buyers Broker Compensation; Rider GG: Sellers Agreement with respect to Buyers Broker Compensation.
- Learn the following Disclosures: Radon Gas; Mold; Flood zone, elevation certificate; Energy brochure; Lead based paint (pre-1978); HOA disclosure; Property tax disclosure summary.