What Does a Florida Real Estate Attorney Review Before You Sign a Purchase Contract?
Buying a home, vacation home or investment property in Florida is a significant financial commitment. A Florida real estate contract review before signing can help a buyer understand the legal terms of the agreement and the obligations it creates. A real estate agent and a real estate attorney have different roles in a transaction. While an agent may assist with the business terms and negotiation of a purchase, a real estate attorney can review the contract from a legal perspective and advise the buyer about its terms before the buyer becomes obligated to proceed.
What Does an Attorney Review Before You Sign?
The initial review generally focuses on the purchase contract and related addenda, rather than every aspect of the property or transaction. Some matters such as title examination, surveys, inspections, association documents, and closing documents are typically addressed later as the transaction progresses. Before signing, an attorney may focus on the following material issues:
Purchase Price, Deposits, and Other Basic Terms
The attorney can review the basic terms of the agreement, including:
- Purchase price;
- Deposit amounts and deadlines;
- Identification of the buyer and seller;
- Property identification;
- Closing date; and
- Other material terms included in the agreement.
The attorney can explain what these provisions require and identify provisions that may warrant further consideration.
Inspection and Due-Diligence Provisions
The attorney can review the contract’s provisions concerning inspections and the buyer’s due-diligence rights. This may include explaining:
- How long the buyer has to conduct inspections;
- What rights the buyer may have if a problem is discovered;
- Applicable notice requirements; and
- Deadlines for exercising contractual rights.
The attorney is reviewing the legal provisions of the contract, not performing the physical inspection or evaluating the property’s condition.
Financing Provisions
For a financed purchase, the attorney can review provisions concerning financing, including applicable deadlines and procedures if financing is not obtained. This can help the buyer understand how the financing provisions interact with the rest of the contract and what contractual obligations may apply if circumstances change.
Closing and Default Provisions
An attorney can explain provisions addressing the and what may happen if either party does not perform as required under the agreement. This may include provisions concerning:
- Closing deadlines;
- Extensions;
- Failure to close;
- Default;
- Cancellation; and
- Available contractual remedies.
Understanding these provisions before signing can help a buyer make an informed decision about entering into the agreement.
Other Contract Terms and Addenda
Real estate contracts often contain addenda or additional provisions addressing matters specific to the transaction. An attorney can review those provisions and explain how they may affect the buyer’s rights and obligations. Depending on the circumstances, the attorney may also suggest revisions or additional language for consideration by the parties.
How Can a Real Estate Attorney Help Before You Sign?
The value of a contract review is not simply identifying what the contract says. It is helping the buyer understand the legal significance of the provisions and how they fit together. An attorney may:
- Explain unfamiliar contractual provisions;
- Identify terms that may warrant further consideration;
- Discuss potential legal issues or risks;
- Recommend changes where appropriate;
- Help negotiate contractual language, if requested;
- Explain important deadlines and obligations; and
- Advise the buyer about legal issues specific to the proposed transaction.
The scope of the attorney’s involvement will depend on the buyer’s needs and the terms of the attorney’s engagement.
Why Does Timing Matter?
Once a purchase contract has been signed, changing its terms generally requires agreement between the parties. That is why legal review before signing can be valuable. It gives the buyer an opportunity to ask questions, understand the agreement, and consider whether changes should be requested before becoming contractually committed. The attorney’s role does not necessarily end when the contract is signed. If the attorney is also engaged to assist with the closing, additional legal issues including title, closing documents, and other transaction matters can be addressed as the transaction progresses.
Do You Need a Florida Real Estate Attorney Before Signing?
Florida does not require every buyer to have an attorney review a purchase contract. However, legal review may be particularly useful for buyers who:
- Are purchasing their first home or investment property;
- Are buying from out of state;
- Are purchasing a condominium or unusual property;
- Are using an LLC, trust, or other entity;
- Have questions about specific contract provisions; or
- Simply want legal advice before committing to the transaction.
A purchase contract is one of the most important documents in a real estate transaction. Having a Florida real estate attorney review it before signing can help you understand what you are agreeing to and address legal questions at a time when the contract can still be negotiated. If you are considering purchasing a property in Florida, Bales & Bales can assist with the legal review of your purchase contract and, where requested, provide legal assistance as the transaction proceeds toward closing.
Contact Bales & Bales, P.A. to discuss your Florida real estate transaction.
This article is provided for general informational purposes only and is not intended to constitute legal advice or create an attorney-client relationship. Real estate contracts and applicable legal requirements vary depending on the circumstances. Readers should consult with a qualified Florida attorney regarding their specific situation.