Purchase and Sale Agreement Negotiations2018-07-13T14:22:27+00:00

Purchase and Sale Agreement Negotiations

Florida Real estate transactions almost invariably involve a great deal of money changing hands, which in turn requires purchase agreement negotiations as well as sale agreement negotiations. If you are the buyer, you would naturally like to pay as small a price as possible, while if you are the seller, you would like to realize as much profit as possible.

What inexperienced people often do not realize, though, is that when negotiating home prices, a skilled real estate negotiator considers a great deal more than just the basic cost. Title transfers and property title paperwork are involved and there are often many fees and expenses associated with the process. Purchase and sale agreements are not short and simple documents that you can look over yourself- you need a skilled and professional title settlement expert on your side.

A Florida real estate agreement is a complex document containing a number of clauses that relate to money, and many of the clauses are negotiable. Accordingly, an able real estate negotiator can save, cost, or earn one of the parties to the sale a considerable sum by paying attention to these clauses in title transfer agreement negotiations.

The title professionals at True Title are eager to serve you in this regard.  Our Florida title insurance company is the best in the business at negotiating purchase and sale agreements and helping you with title and deed concerns regarding your Florida property.

Are you in the process of refinancing your current home? Do you need help with home title services? If you have any questions or needs, contact our Attorneys to find out how we can help you easily navigate the real estate purchasing/mortgage process and how we can provide you with the peace of mind you deserve. True Title is a company setting a standard of excellence industry-wide. We at True Title have been committed to excellence in customer service since 1998.

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Features of a the Agreement

These agreements generally contains the following features in regards to the property title:

First, it is in writing. If it is verbal, it may well not be enforceable relative to real estate.

Second, it identifies the buyer and seller, the parties to the sale.

Third, it identifies the real property that is being sold. The Florida real estate contract generally contains both a street address and a legal description of the property to eliminate any chance of confusion.

Fourth, it identifies the personal property involved in the transaction. When a Florida residence changes hands, the personal property typically includes items like the appliances, fixtures, detached shed, etc. When a Florida commercial property is being sold, it can include office and manufacturing equipment, as well as inventory.

Fifth, the Florida real estate purchase and sale agreement naturally specifies the purchase price.

Sixth, it also establishes the closing date. This is the date when the title is transferred from the seller to the buyer, and the purchase price is paid by the seller.

Seventh, it determines whether the buyer or the seller pays for the title fees, closing fees and title insurance associated with the sale/purchase. This in turn determines who retains the right to choose True Title as the escrow/closing agent to handle your deal.

Finally, the contract contains the signatures of the buyer and seller. Both must be of legal age and mentally competent to conduct business. When a business is one of the parties involved, an authorized representative signs on its behalf, and the business entity must produce a Resolution authorizing the representative to sign on its behalf.

As-Is Title Agreements

It is important to know whether a contract is an As-Is contract. An As-Is contract relieves the seller of the obligation to repair damages and fix items that do not work before the buyer takes possession. A Florida As-Is title agreement commonly obliges the buyer to undertake inspections and any other measures necessary to assess the condition of the property. That way, after the sale is complete, he/she cannot say he did not know what he was getting. It is a way to ensure both parties know and acknowledge the condition of the property when the papers are signed and finalized and the property title officially changes ownership.

Florida Title Search and Florida Title Insurance

One essential aspect of Florida title transfe agreement negotiations is establishing marketable title. This means the seller must demonstrate that the Florida property is free and clear of liens, encumbrances and other claims that could limit the buyer’s ability to use the property or ultimately dispose of it as he or she sees fit. A Florida title search of the public records in the county where the property is located and the subsequent issuance of title insurance are necessary to establish marketable title.  The title professionals at True Title are experts in this field.

For a buyer, it is likewise essential to ensure that property inspections are performed. Inspectors should check the plumbing, electrical system, roof, air conditioning, and look for termites. In the case of a commercial purchase agreement, inspectors will also assess the condition of the equipment.  The standard contract makes the buyer responsible for arranging the inspections and relaying the reports to the seller, who is then responsible for making repairs unless the real estate purchase agreement is the As-Is contract described above.

Sometimes a Florida purchase and sale agreement involves a property under the authority of a Homeowner’s or Condominium Owner’s Association. If that is the case, the seller is responsible for delivering the appropriate documents and information to the buyer. This information should include annual and monthly fees and the schedule for paying them.

The real estate contract also specifies how the transaction is to be financed. The most common kind of financing for securing a property title is third-party. A lending institution loans the necessary money to the buyer. But there are also seller-financed transactions and cash closings. In the latter, no financing is required because the buyer is paying the entire price out of his own pocket up front.

The Florida purchase and sale agreement also details the closing costs and who is responsible for paying them. Buyers are often responsible for the tax stamp and intangible tax on the mortgage, the mortgage itself, the survey, recording the mortgage, lender origination fees, appraisal fees, inspection costs, and their own attorney fees. Sellers often cover recording fees for the deed, the title search, the documentary tax stamps on the deed, estoppel fees due to a Homeowner’s or Condominium Association, their own attorney fees, and their realtors’ commission fees. It is extremely important for True Title to carefully examine the contract to determine who pays for the title fees, closing fees and title insurance fees because who pays for all of these fees is negotiable in Florida.

The Florida Purchase and Sale Agreement: Standard Features

Most areas have a standard, default framework for a purchase and sale agreement. In Florida, there are several such contracts approved by the Florida Association of Realtors and the Florida Bar. Every clause in these contracts – especially those clauses relating to who pays for the title fees, closing fees and the title insurance premiums – is negotiable by and between the parties to the transaction. Discussing and/or negotiating these and other fees can save or earn the respective parties a considerable amount of money when the title transfer is finalized.

Purchase Agreement Negotiations: What to Negotiate

When a real estate negotiator is handling a residential purchase agreement, the fees often subject to negotiation include transfer taxes, title fees, closing fees, escrow fees, the Florida Owner’s title insurance policy premium, disclosures required by the State, HOA and COA transfer and documentation fees, and inspections and reports.

When negotiating the home sale price, non-fee items can often be negotiated as well. These items include the amount of the earnest money deposit and the time periods allowed for the seller to present disclosures, the buyer to finish inspections, the buyer to get the property appraised, the buyer to get a loan approved, closing escrow, releasing contingencies (for example, the sale of a different home), the final walk-through, possession, and offer-acceptance.

The real estate negotiator may also negotiate matters concerning fixtures that may or may not to be excluded from the sale, personal property items that may or may not stay in the residence, liquidated damages, and dispute resolution.

Purchase Agreement Negotiations: When Not to Negotiate

One caveat to negotiating the home sale price on this level is that it may not seem worthwhile or expedient for the real estate negotiator to fly in the face of the locally accepted way of doing business. When this is the case, the buyer has produced more cash up front, and if he/she is unable or unwilling to do so, this could preclude a sale

Similarly, real estate negotiators may want to be careful about pushing for a buyer to cover what are commonly the seller’s closing costs. When this is the case, the buyer has produce more cash up front, and if he/she is unable or unwilling to do so, this could preclude a sale.

The title professionals at True Title are eager to assist you with these negotiations.  Call now at (877) 785-8792.

Are you in the process of refinancing your current home? Do you need help with home title services? If you have any questions or needs, contact our Attorneys to find out how we can help you easily navigate the real estate purchasing/mortgage process and how we can provide you with the peace of mind you deserve. True Title is a company setting a standard of excellence industry-wide. We at True Title have been committed to excellence in customer service since 1998.

Contact Us