Author Archives: Tanishia Stokes

Escrow Agent                                                                       

Part 13 of the Contract states the role of the Escrow Agent. A Closing Agent or Escrow Agent (Agent) is the person who receives the Deposit and agrees by acceptance of the Deposit to deposit it and other funds promptly and hold them in escrow within the State of Florida. This is subject to Collection. The Agent must also disburse the Deposit and other funds in accordance with the terms and conditions of the Contract. However, the Buyer is not excused from performance due to a failure of the funds to be collected. If there is an issue that arises from conflicting demands for the Deposit or a genuine dispute as to who is entitled to the Deposit, this section empowers the Agent to take the actions they deem advisable. If there is doubt about the Agent’s duties, the Agent may continue to hold the funds until the parties agree or there is a relevant court order. The Agent may also disburse the funds to the clerk of courts in the circuit court that has jurisdiction. The section also states that the attorney who represents a party and also acts as an Agent can also represent the party in this type of action. All liability on the part of the Agent will be terminated, except to the extent of accounting for the items delivered out of escrow, when all of the parties concerned in the action are properly notified.

Property Inspection and Repair                                      

Section (f) contains information on the repair standards, assignment of repair, treatment contracts, and warranties. This section states that all repairs and replacements under the contract must be completed in a good and workmanlike manner by a licensed person. These repairs must also be done using quality materials that are comparable or better than those existing as of the Effective Date of the Contract. Not including the repairs following a WDO inspection as detailed in the Contract, the Seller will assign all the repair, treatment and warranties maintenance contracts and warranties to the Buyer. This will take place at Closing and be at Buyer’s option and cost.

Section (e) addresses the Walk-through Inspection/ Re-Inspection. On the Closing Date or a day prior to Closing, when specified by Buyer, the Buyer or his representative may perform a walk-through inspection  or re-inspection of the Property to verify that the  Seller has maintained the Property according to the Maintenance Requirement and has made all necessary repairs and met all obligations specified in the Contract. Buyer may also verify that all items of Personal Property are on the Property as well.

Property Inspection and Repair                                      

Section (d) contains information on the Inspection and the Close-Out of Building Permits. The second section, section (ii), addresses the Close-out of Building Permits. Here it states that the Seller must have an estimate of the costs to remedy Permit Inspection items that the Buyer’s Permit Inspection notice revealed. This must be done by a licensed person within 10 days after the receipt of the notice. Seller then must have the open and expired building permits, identified in the notice or previously known to the Seller, closed by the applicable entity and receive and close any other required building permits for improvements to the property. This must be completed no later than 5 days before closing and the cost must be within the Permit Limit. If additional time is needed, the Closing Date can be extended up to 10 days. However, if the Closing Date cannot be extended either party may terminate the Contract. If the cost to close the open or expired building permits exceeds the Permit limit, within 5 days of the receipt of the notice, the Seller can either agree to pay the difference or the Buyer may, in writing, agree to accept the Property in its “as is” condition as long as Seller agrees to credit Buyer at Closing with an amount up to the Permit Limit. If neither party can agree to one of these to compromises, either party may cancel the Contract.

Property Inspection and Repair                                      

Section (d) contains information on the Inspection and Close-Out of Building Permits. The first section, section (i), addresses Permit Inspection. Here it states that the Buyer may have an inspection where  records and documents are examined in order to determine if there are any open or expired building permits or unpermitted improvements to the property. This is called a Permit inspection. Buyer then must deliver written notice to the Seller, within the inspection period, of the existence of any open or expired building permits or unpermitted improvements.

Property Inspection and Repair                                      

Section (c) contains information on Wood Destroying Organism (“WDO”) Inspection and Repair. The second section, section (ii), addresses WDO Repairs. This section states that if the property was already treated for the type of WDO that was found by the Buyer’s WDO Inspection, Seller is not required to retreat the property if there is no visible live infestation of the property. However, Seller must provide to the Buyer at Closing a current and full treatment warranty for the type of WDO found at the inspection. However, if Seller is informed of damage that requires necessary corrective treatment by Buyer’s WDO Inspector’s report, it has 10 days to make the corrective treatment and then deliver a copy of the report to Buyer upon completion. The treatments must be made in accordance with section 12(f) and must be up to the WDO Repair limit. If the cost exceeds the WDO Repair limit, then 5 days after receiving the Seller’s receipt, the Buyer shall deliver notice to Seller agreeing to pay the excess or designating which repairs Seller should do and which repairs will be left in “as is” condition. However, if Buyer does not deliver this notice to Seller then either party may terminate the contract by written notice to the other. Buyer must then be refunded the deposit and Buyer and Seller would then both be released from any other obligations under the contract.

Property Inspection and Repair                                      

Section (c) contains information on Wood Destroying Organism (“WDO”) Inspection and Repair. The first section, section (i), addresses WDO Inspection. A Wood Destroying Organism is defined as an arthropod or plant life, including termites, powder-post beetles, old house borers and wood decaying fungi that caused damages or infests seasoned wood in a structure that is not a fence. This section states that the property can be inspected by a licensed Florida pest control business (WDO Inspector). Buyer must then deliver a copy of the WDO inspection Report to the Seller within the Inspection Period if there is evidence of a WDO infestation or damage.

Property Inspection and Repair                                      

Section (b) contains information on the General Property Inspection and Repair. The third section, section (iii), addresses the General Property Repairs. Here it states that the Seller is only to make general repairs that are necessary to bring items to the condition that is required in section 12(b)(ii). Seller has 10 days from receipt of a notice by the Buyer or a General Inspection report to conduct a second inspection and then to provide a copy of the report to the Buyer. Both reports must be done by a Professional Inspector. If Buyer and Seller’s Inspection reports differ and both parties cannot agree on a resolution, then a third inspection must be done by a Professional Inspector that both parties choose and split the cost for. The third inspector’s report will be binding on both parties. If the cost of the repairs exceed the General Repair limit, within 5 days of last estimate the Seller can elect to pay the additional cost of the repairs, or Buyer can choose the items that they want the Seller to repair and the items that can remain as is, as long as Buyer stays within General Repair limit.

Property Inspection and Repair

Section (b) contains information on the general property inspection and repair. The second section, section (ii), addresses the property condition. It states that the exterior and interior walls, doors, windows, foundation, ceiling, and roof should be free of leaks, water damage or structural damage. These items as well as the pool, pool equipment, non-leased major appliances, heating, cooling, mechanical, electrical, security, sprinkler, septic and plumbing systems and machinery, seawalls, and dockage must be maintained until Closing in Working Condition. Working Condition is defined as operating in the manner the item was designed to operate. Items such as torn screens (including patio and pool screens), fogged windows, and missing roof tiles or shingles must be replaced or repaired by Seller prior to Closing. However, Seller is not obligated to repair or replace Cosmetic Conditions unless they result from a defect in an item Seller is already obligated to repair or replace. Cosmetic Conditions refer to aesthetic imperfections that do not affect the Working Condition of the item.

Property Inspection and Repair

Section (b) contains information on the general property inspection and repair. The first section, section (i), addresses the general inspection. It mandates that the items specified in the contract as items that the Seller is required to repair and replace, may be inspected by a person who specializes in and holds an occupational license to preform home inspections or someone who is licensed in Florida to repair and maintain the items inspected. The Buyer must, within the Inspection Period, make seller aware of any General Repair items that are not in the condition required in section 12(b) (ii) of the contract by providing the Seller with written notice. Seller then must provide a written request to the Inspector for a copy of the portion of the Inspector’s report that deals with the items Buyer has referenced.