Article 1 of 10: Florida Real Estate Contracts
A Florida real estate contract is not simply a form used to record the purchase price. It determines who must do what, when each obligation must be completed, who bears particular risks, and what happens if the transaction fails.
The agreement may control your escrow deposit, inspection rights, financing deadlines, title objections, closing expenses, cancellation rights, and potential liability for default. Once the contract is signed, changing an unfavorable term may require the other party’s consent.
That is why a Florida real estate contract review is most valuable before you sign.
Have a Florida real estate agreement in hand? | Call 754-888-2726
Attorney Shah offers a $495 flat-fee contract review for one residential listing agreement, purchase and sale agreement, or qualifying investor or lender agreement.
Why the Written Contract Matters in Florida
Under Florida Statute 725.01, an agreement for the sale of land generally must be in writing and signed by the party against whom enforcement is sought.
Promises made during a conversation, text exchange, showing, or negotiation may not protect you if they never make it into the signed agreement. If an issue matters—such as a repair, credit, included appliance, leaseback, financing condition, or extended closing date—it should be addressed clearly in the contract or a properly executed addendum.
The Florida Bar similarly advises consumers to consult a Florida-licensed real estate lawyer before signing a purchase contract. See Consumer Pamphlet: Buying a Home.
Florida Real Estate Contract Risk Chart
The provisions below are among the principal areas reviewed by a real estate attorney.
| Contract area | What it controls | Risk if overlooked |
|---|---|---|
| Parties and property | Who is obligated and what is being sold | Wrong entity, incomplete legal description, or authority problems |
| Purchase price and deposit | Amounts due and when they must be delivered | Missed deposit deadline or unexpected cash requirement |
| Inspection period | Time to inspect and potentially cancel | Loss of cancellation rights |
| Financing and appraisal | Loan approval, appraisal, and related deadlines | Obligation to close despite financing problems |
| Title and survey | Liens, ownership defects, easements, and boundaries | Delay, dispute, or acquisition of an encumbered property |
| Disclosures and associations | Condominium, HOA, and property-condition information | Unexpected restrictions, assessments, or cancellation issues |
| Closing costs | Which party pays each expense | Unanticipated charges at closing |
| Default and remedies | Consequences when a party fails to perform | Deposit loss, damages, or litigation exposure |
| Addenda and riders | Terms that supplement or modify the main form | Conflicting or overlooked obligations |
What Does a Florida Real Estate Attorney Review?
1. The Correct Parties and Signing Authority
The attorney confirms that the buyer and seller are correctly identified.
Additional review may be necessary when a party is:
- A corporation or limited liability company;
- A trust or estate;
- Acting through a power of attorney;
- Married but holding title individually;
- A foreign person or entity; or
- Assigning contractual rights to another buyer.
A technically correct contract signed by the wrong person—or without appropriate authority—can create problems when the transaction reaches title review or closing.
2. The Property Being Purchased
A street address is helpful, but the contract should identify the property with sufficient certainty. The attorney checks the legal description, parcel information, included improvements, personal property, fixtures, and any excluded items.
This is especially important when a transaction includes:
- Vacant land;
- Multiple parcels;
- Furniture or equipment;
- Dockage or parking rights;
- Storage units;
- Solar equipment; or
- Property subject to an existing lease.
3. Purchase Price, Escrow Deposit, and Payment Deadlines
The review should confirm the purchase price, initial deposit, additional deposit, escrow agent, payment method, and applicable deadlines.
A deposit is not merely evidence that the buyer is serious. Depending on the contract and the reason a transaction fails, the deposit may become the subject of a dispute.
Florida Administrative Code 61J2-14.008 addresses deposits connected with real estate transactions and distinguishes funds held by a real estate broker from funds held by an attorney or title company.
The contract review should answer:
- How much must be deposited?
- Where must the money be sent?
- When is each payment due?
- What happens if a payment is late?
- Who may authorize a release?
- What procedures apply if the parties disagree?
4. Inspection and Cancellation Rights
Under many Florida residential contracts, the inspection provision determines whether the buyer may inspect the property, request repairs, negotiate a credit, accept the condition, or terminate within a specified period.
The exact rights depend on the contract language. Calling a transaction “As Is” does not mean the buyer should skip inspections, and it does not necessarily eliminate every disclosure obligation of the seller.
In Johnson v. Davis, 480 So. 2d 625 (Fla. 1985), the Florida Supreme Court held that when a residential seller knows of a fact materially affecting the property’s value that is not readily observable and is unknown to the buyer, the seller must disclose it.
A contract review therefore considers both the buyer’s investigation rights and the seller’s disclosure responsibilities.
5. Financing and Appraisal Contingencies
A buyer who expects to obtain a mortgage should not assume that failure to obtain financing automatically ends the transaction.
The attorney reviews:
- The type and amount of financing;
- Loan-application requirements;
- Loan-approval deadlines;
- Appraisal provisions;
- Notice requirements;
- The effect of a low appraisal;
- Whether the buyer must use diligent efforts; and
- When the buyer’s deposit may be at risk.
Cash buyers also require careful review because removing a financing contingency does not eliminate title, inspection, association, insurance, or closing risks.
6. Title, Survey, and Property Restrictions
A contract should allocate responsibility for examining and addressing title defects. An attorney may review whether the agreement adequately addresses:
- Existing mortgages and liens;
- Judgments;
- Easements;
- Encroachments;
- Boundary discrepancies;
- Open permits;
- Code violations;
- Municipal liens;
- Restrictive covenants; and
- The seller’s obligation to cure title defects.
Title insurance protects against covered title risks, but it is not a substitute for negotiating appropriate contractual rights before signing.
7. Condominium and HOA Disclosures
Association-governed property presents additional risks, including assessments, approval requirements, leasing restrictions, application fees, reserves, litigation, and use restrictions.
For property governed by a homeowners’ association, section 720.401, Florida Statutes, requires a statutory disclosure summary and gives qualifying purchasers certain cancellation rights when the disclosure is not timely provided.
Condominium transactions may carry separate disclosure and contract-voidability provisions under section 718.503, Florida Statutes.
The applicable rights depend on whether the sale involves a developer or a non-developer, the documents delivered, the contract language, and the timing of delivery and cancellation.
8. Closing Costs and Prorations
The contract determines who pays many transaction expenses. An attorney checks the allocation of:
- Documentary stamp taxes;
- Owner’s and lender’s title insurance;
- Settlement and closing charges;
- Survey costs;
- Association estoppel and application fees;
- Municipal lien searches;
- Recording fees;
- Property-tax prorations;
- Brokerage compensation; and
- Contractually agreed credits.
“Customary” does not always mean mandatory. Many expenses are negotiable before the parties sign.
9. Default, Dispute Resolution, and Attorney’s Fees
Default provisions describe what may happen if the buyer or seller fails to perform. Potential consequences may include deposit forfeiture, return of the deposit, damages, specific performance, mediation, arbitration, litigation, or attorney’s fees.
These provisions deserve attention before a dispute occurs—not after the parties have already taken conflicting positions.
Contract Review Timeline
| Stage | Recommended action |
|---|---|
| 1. Contract received | Do not sign merely because a response is requested quickly |
| 2. Attorney review | Identify legal, financial, deadline, and default risks |
| 3. Questions and revisions | Clarify terms and propose necessary changes |
| 4. Final agreement | Confirm all accepted revisions and addenda are included |
| 5. Signing | Retain a complete, fully executed copy |
| 6. After signing | Calendar every deposit, inspection, financing, title, and closing deadline |
The safest sequence is simple:
Receive contract → Obtain legal review → Negotiate revisions → Sign → Calendar every deadline
Is a Real Estate Agent the Same as Your Attorney?
No. Real estate professionals perform important transaction functions, but their brokerage duties are governed by their particular relationship with the customer or client.
Florida law recognizes different brokerage relationships. Under section 475.278, Florida Statutes, transaction brokerage involves a limited form of representation.
Your attorney’s role is different: to advise you regarding your legal rights, contractual exposure, available options, and the consequences of the language you are considering.
When Is a $495 Review Enough?
A focused contract review may be appropriate when:
- You have one substantially complete agreement;
- The transaction is a standard Florida residential matter;
- You want risks and deadlines explained before signing;
- Only limited revisions or comments are anticipated; and
- You do not need ongoing negotiation or representation through closing.
Full representation may be more appropriate when the transaction involves extensive negotiation, unusual terms, entity structuring, seller financing, assignment, novation, subject-to financing, a double closing, a private loan, title problems, or continuing legal guidance through closing.
Get a Florida Real Estate Contract Reviewed Before You Sign
A contract review cannot eliminate every transaction risk. It can, however, help you understand the agreement before its deadlines, remedies, and financial obligations become binding.
Call Attorney Shah today at 754-888-2726 for a free consultation. He provides a $495 flat-fee contract review for qualifying Florida residential agreements. The service includes review of one agreement and any incorporated riders or addenda, one revision or comment round, a plain-English written risk summary, and a 30-minute attorney consultation.
Prices apply to qualifying standard Florida residential transactions. Complex transactions and additional services may require a separate scope and fee. Review and representation begin only after conflict clearance and execution of an engagement agreement.
This article provides general information and is not legal advice. Reading this article or contacting the firm does not create an attorney-client relationship. Do not send confidential or time-sensitive information until the firm confirms that it can represent you.