Recording of January 10th, 2023 Masterclass “3 Far/Bar Hacks To Closing With Less Effort”
In this Masterclass, learn three tips you can use the Florida FAR/BAR contract to protect your Buyers and Sellers.
Hack #1:
Mandatory Escrow Clause – If during an inspection or re-inspection the buyer notices that personal property is missing or the property was not maintained as required, the seller must put money into escrow.
For example, if the seller replaced a light fixture with a cheaper version and the buyer notices, the seller will need to escrow 125% of the value of the original light fixture.
Hack #2:
Loan Approval Period – Whether you are a buyer or a seller, you can use the loan approval period to get out of a FAR/BAR As-Is contract. This is because a loan approval that requires the buyer to sell another property will not be considered a loan approval unless Rider V is attached. The buyer’s agent should not convey the loan approval letter, but instead should email the seller whether the buyer was approved or not.
For buyers, if your loan is approved conditionally on selling your house, you can get out of the contract by informing the seller of this condition.
For sellers, the reverse is true: if your buyer has the prerequisite that they sell their other home, you can cancel the contract within 3 days.
Hack #3:
Condominium Rider Provision – The seller must deliver five items to keep the buyer in the deal, which most agents do not deliver:
- Declaration of condominium
- Articles of incorporation of the association
- Bylaws and rules of the association
- Copy of most recent year-end financial information
- Frequently Asked Questions and Answers document
These documents must be delivered no more than 3 days prior to the execution of the contract. Failure to deliver these documents to the buyer will give them an opportunity to cancel up to the day of closing.
Bonus Hack:
Make sure to fill out the addresses for the buyer and seller notices correctly. Failure to do so may allow the buyer to claim they did not receive all the required notices.
Presented by:
James Brown, ESQ. of New Path Title/James Brown Law
Ryan Poole of RealTrade.io and The REDA Pocast.
