SIMPLE ADVICE 101.
First and foremost, I will need your full legal names, current postal and email addresses and mobile phone numbers. Please also supply TWO official forms of identification – driving licence and passport are first choices. An idea – take a selfie of your face alongside your driving licence and/or passport photo and then email that selfie to me. That will help me and the eventual closer know that you are who you say you are.
SIMPLE ADVICE FOR BUYERS.
Post the NAR Settlement in March, 2024, buyers are now required to enter a Buyers’ Representation Agreement (BRA for short), which, much like the seller’s Exclusive Listing Agreement, will provide clarity to our relationship and define the level of compensation due from the buyer to Coldwell Banker Realty (CBR) at the closing a successful deal. Commission splits are no longer published in the listing details on Stellar MLS. It will be my responsibility to seek any compensation from the seller, but if that is not offered, then the buyer will be obligated to pay CBR the amount agreed to in the BRA. If the seller does agree to pay, but at a lower rate than the agreed level in the BRA, then the buyer will pay the difference at closing. Please see my blog of 30th August, 2024 for further clarification and update.
Provide me with proof of funds if you’re a cash buyer or a pre-approval letter for a mortgage if you plan to finance your purchase. I can introduce you to trusted lenders. Guaranteed Rate Affinity (GRA), an affiliate of Coldwell Banker Realty (CBR), is an excellent resource for understanding your options. They have programmes that can make your offer more competitive including “Powerbid Approval” and “Same Day Mortgage“. GRA may be able to issue a fully underwritten loan approval letter which I can then present with your offer – the strongest non-cash evidence of your ability to close a deal smoothly.
You are allowed, by Florida Statute, to study condominium documents for 3 days once you have officially received them. It is a really good idea to ask for them prior to even writing an offer – thus you will have an early sight of the structure, financials, rules and regulations that apply to owners before that mandatory period even starts.
You should exercise your right to arrange for an inspection. It will be your responsibility to pay for one. I can introduce you to a local, licensed inspector who will provide you with a report, probably that day. If you suspect there may be other problems, such as septic, mould, termites, radon or defective drywall, order an additional inspection by an expert. Your purchase and sale contract will define the inspection period.
AS-IS does not mean you cannot negotiate with the seller if there are items that you believe need to be repaired. If negotiations fail, you have the right to cancel the contract but such notice must be in writing and given and received within the inspection period.
If there are any obvious additions to the property, you should check with the county to see if those were properly permitted and the permit closed out. Open permits, or a lack of permits, transfer with the property, so be aware.
If you are a foreign buyer, consider how the Foreign Investment in Real Property Taxation Act (FIRPTA) could affect the eventual sale of the property. You might be better off leasing or buying through an LLC. I can introduce you to a local expert on FIRPTA for guidance.
BEFORE wiring funds for a closing, ALWAYS – ALWAYS – ALWAYS contact the recipient closing agent using a verified phone number to confirm that the wiring information you have and give your bank is accurate. The phone number should be obtained from a reliable source, emails are not one of them. Wire fraud is now, sadly, quite common and can be financially devastating to you. I will never provide you with wiring instructions for the closing agent, neither will I confirm the instructions you already have – always call the closing agent directly using the phone number you know to be correct.
All paperwork can now be completed online and you will be able to sign, store and access all documents in the cloud – CBR uses Dotloop. Your email address is the legal identification of your signature.
Everything can be set up at the outset, thus avoiding any potential delays throughout the purchase process. Covering these necessary items early on will make your closing smoother and reduce the chances of a mishap at the closing table. Please remember I cannot give you financial, legal or any other professional advice.
SIMPLE ADVICE FOR SELLERS.
Provide me with the Title Policy that was issued to you when you purchased the property you want to sell – and if you have a survey, let me have a copy of that too. Let me know if you have any permits still open and that any upgrades to your property were properly permitted in the first place.
Your buyers have a choice of Purchase and Sale Contracts to submit to you. You should be very clear as to the responsibilities that accrue to you in every contract you are asked to sign.
If you’re a foreign seller – ask me about the Foreign Investment in Real Property Taxation Act (FIRPTA). The closing agent will withhold up to 15% of the sales proceeds for the IRS; this can be reduced or eliminated under certain circumstances. You will need a professional adviser and it is my strongest suggestion that you speak to one at the earliest stage, even before you list your property – I can introduce you to a professional who is qualified and licensed.
Consider having an inspection done, it only costs two or three hundred dollars and it would show up any problems you may have become used to that might spook a buyer. Also, fully complete the ‘Seller’s Property Disclosure’ – even if you haven’t lived in the home. It’s not acceptable to try to hide imperfections, they have a tendency of re-surfacing at a later date and that could be expensive.
If you have legal questions, talk to your attorney. If you have financial questions, talk to your financial adviser. I am not licensed to give you advice on either, but I can introduce you to professionals who can help you.
All paperwork can now be completed online and you will be able to sign, store and access all documents in the cloud – CBR uses Dotloop. Your email address is the legal identification of your signature.
Everything can be set up at the outset, thus avoiding any potential delays throughout the sale process. Covering these necessary items early on will make your closing smoother and reduce the chances of a mishap at the closing table.
