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Real estate purchase and sale contracts in Florida follow a standard established by the Miami Association of Realtors. When buying a property there are some reasons that can be subject to cancellation of the purchase and sale contract. See in this article 6 reasons that are objects of contract cancellation.
Initial Deposit
Soon after signing the purchase and sale contract of a property in Florida, the buyer needs to make the initial deposit on a specific date, usually 3 to 5 days from the date of signing. If this deposit is not made on the contract date, the contract is canceled.
Inspection
It is the right of every property buyer in Florida to request an inspection of the property before buying. The inspection must be done by a licensed company, which will investigate several aspects of the property such as: roof, electrical part, plumbing, pests, central air conditioning, heating, interiors, among other items. Inspection is a judicious job and can take days. At the end, a detailed report is presented to the buyer who, in possession of the information, can decide or not to proceed with the purchase of the property.
The buyer has a deadline, after signing the contract, to request the inspection. This deadline is usually 15 days.
It is very important that the inspection is done. Many properties hide problems that even the owners are unaware of.
The value of an inspection is approximately $300.
Contract is contingent on financing
Foreigners are allowed to finance the purchase of the property through American banks. If the purchase of the property in Florida is linked to financing (contingent to financing) and, for some reason, the financing is not approved by the American bank, then the contract is automatically canceled.
Appraisal (Property Evaluation)
It is also the buyer’s right to hire a certified Appraisal company, which will evaluate the property. If the market value estimated by the company is much lower than that stipulated in the contract, then the buyer has the right to give up the purchase and cancel the contract.
Bylaws of the condominium
By signing the purchase and sale contract, you will have access to the By Laws of the condominium, which is the Social Statute of the condominium where your apartment or house is located. There you can analyze the financial health of the condominium, rules about rent, rules about guests, among others. Many people do not give due importance to this phase of the process. The rules of the Bylaws in Florida condominiums are very strict.
A common problem when not paying attention to certain details of the By Laws is to buy a property with the aim of obtaining income with short-term rental and, after the purchase, realizing that the property restricts the practice by imposing minimum rental periods. The seasonal rental activity in Florida is extremely regulated. In Miami there are few condominiums that allow the activity. In the case of holiday homes in Orlando, there is a zoning in the city that defines which regions can or cannot operate in this format.
Launches
Only in the case of releases is it possible to cancel the contract within 15 days after the deposit of the reservation, which is usually 10% of the value of the property. The cancellation can be done at any time within this period, without specific reason.
About AMG International Realty
AMG International Realty is a global real estate agency specialized in Florida and aimed at the foreign public. If you want to know more about the real estate opportunities in the market of Miami, Orlando and cities around these two centers, contact me right now and contact me: +1 305 761 2655 (Heloisa Arazi).
