When it comes to buying or selling a residential property, a legally binding contract is crucial. This agreement outlines the terms and conditions of the transaction, protecting both parties involved. One type of contract that is commonly used is the far residential sale and purchase contract.
The FAR (Florida Association of Realtors) residential sale and purchase contract is a standard form that has been approved by the Florida Bar and widely used in the state. It provides a comprehensive agreement that covers all aspects of a residential property transaction. Let’s take a closer look at the main features of this contract.
The contract includes a detailed description of the property, including its address, legal description, and any improvements or fixtures that will be included in the sale. It also outlines the condition of the property, including any defects or issues that the buyer should be aware of.
Purchase Price and Payment
The contract specifies the purchase price of the property and how it will be paid. This includes the amount of the down payment, any financing arrangements, and any contingencies related to the buyer`s ability to secure financing.
Closing Date and Escrow
The contract also specifies the closing date, which is the date on which the transaction will be completed and the property ownership transferred. The contract typically requires both parties to deposit funds in an escrow account, which will be used to pay for closing costs and other fees.
Inspections and Disclosures
The FAR contract also requires the seller to provide the buyer with a disclosure statement regarding the condition of the property. Additionally, the buyer has the right to perform a home inspection to identify any issues that may need to be addressed before closing.
The contract may include various contingencies, which are conditions that must be met in order for the sale to proceed. These may include contingencies related to financing, inspections, or other issues that may arise during the transaction process.
The FAR residential sale and purchase contract provides a comprehensive and standardized agreement that protects both buyers and sellers in a residential property transaction. It is important for both parties to carefully review the contract and work with a qualified real estate agent or attorney to ensure that their interests are protected throughout the process.