Every state has it's own rules, actually various areas in a particular state can handle things differently according to their contracts.
Knowing your rights and responsibilities is vital! The story's below!
I've practiced real estate in NY and now in Florida...the process is very different in both states! Mainly the difference is that in NY the offer is written and then goes to the seller's attorney who writes a contract, normally within 2 weeks. During that time period the buyer will have a home inspection and make a final decision based on the results. There usually is no escrow turned over until a contract is written therefore it is not in jeopardy.
Florida is more defined concerning escrow. When an offer is made by the buyer and the seller agrees and signs on the dotted line a contract has come into being and escrow is then a viable component in this transaction. This process can take place in a matter of a couple hours or a day or two.
Read the contract before you sign! Most Florida contracts provide for a time frame for inspections and possibly a dollar amount of repairs needed. The buyer can choose to decline the house based on the outcome of the report and that in essence would protect the escrow from being kept by the seller.
An "As Is" contract can be:
1. Based on the outcome of a home inspection or
2. The buyer can waive the right to decline the home based on an inspection.
The obvious safer choice is to base your final decision on the outcome of an inspection. On the other hand if a buyer waives his right to an inspection's results it can put his escrow in jeopardy.
The Story
Last week I got a call from a woman who I have been working with for a while, she had finally gotten a contract on her home and would be closing in a little over 2 weeks. She had to buy a home quickly!
The buyer of her house had made the offer for cash and put down a reasonable escrow deposit. The contract was an "As Is" contract and no inspection would be performed. He waived his rights to the results! OH NO! Especially when he had a change of heart and decided to have an inspection...
The saga continues!
This dear lady, in a frenzy to find a home came to Ocala the next morning and thankfully I was able to find them a home that they fell in love with and were able to close on in 2 weeks! We wrote a contract contingent on a home inspection and subject to her house closing and all cash being exchanged and available for the purchase of their new home.
Both transactions would be cash...simple, right? Not so fast!
The buyer of her house contracted a case of "buyer's remorse" and decided to have an inspection on the QT and thought it would be his trump card to escape the contract and get his escrow back! NOT IF YOU WAIVED YOUR RIGHTS!
Bottom line: Both transactions were canceled and now the buyer of her house will likely lose his escrow while her escrow was protected by the contract.
Choosing a Realtor who knows how to properly assist their buyers is VITAL! It may not be the cure-all but it certainly can help keep you from a world of hurt and from losing a bunch of money unnecessarily!
Thinking of moving to Florida? I'd love to assist you!
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