Sarasota.Law

Buyers and Sellers Contracts in Sarasota

    Contracts are the foundation of real estate transactions in Sarasota, governed by Florida Statutes Chapter 475 and local practices. These agreements outline terms, protect parties, and ensure transparency. ThisBang page details contract essentials, disclosure requirements, contingencies, and the role of real estate agents, providing a roadmap for successful transactions in Sarasota’s competitive market.

    Contract Essentials

    A standard purchase and sale agreement in Sarasota includes:

    Property Description

    Legal description, address, and parcel ID.

    Purchase Price

    Total amount and payment terms.

    Earnest Money Deposit

    Typically 1–3% of the price, held in escrow.

    Closing Date

    When title transfers and funds are disbursed.

    Contingencies

    Conditions like financing, appraisal, or inspection, allowing cancellation if unmet.
    These elements, often drafted using Florida Realtors’ forms, clarify expectations and reduce disputes. Access forms via Florida Realtors.

    Disclosure Requirements

    Sellers must disclose material facts, per Florida law, including:

    Property Condition

    Issues like roof leaks, plumbing problems, or HVAC failures.

    Environmental Hazards

    Flood history, lead-based paint (for pre-1978 homes), or mold.

    HOA/Condo Rules

    Fees, restrictions, or pending assessments.
    Failure to disclose can lead to lawsuits, as buyers rely on these disclosures to assess risks. For example, not disclosing a history of flooding in a Sarasota waterfront home could trigger legal action. Sellers use the Sarasota County Property Appraiser to verify property details.

    Role of Real Estate Agents

    Under Chapter 475, agents act as:

    Transaction Brokers

    Neutral facilitators for both parties, presumed unless otherwise stated.

    Single Agents:

    Loyal to one party, with full confidentiality.
    Written disclosures are required before listing or showing property, ensuring transparency. Agents must deal honestly, account for funds, and disclose material facts. Verify agent credentials at DBPR.

    Closing Process

    Closing involves:

    Signing documents (e.g., deed, mortgage).

    Transferring title, verified via title insurance.

    Disbursing funds, including earnest money.

    Title insurance, mandatory in Florida, protects against defects like liens or ownership disputes. The process typically takes 30–60 days, coordinated by a title company or escrow agent. Contact Sarasota County Clerk for recording details.

    Practical Tips

    Review Contracts Carefully

    Ensure all terms are clear, especially contingencies.

    Hire Inspectors

    Professional inspections uncover hidden issues.

    Work with Licensed Agents

    Verify via DBPR.

    Use Title Insurance

    Protect against unforeseen title issues.

    Check Disclosures

    Request flood zone data from Sarasota County.
    Written disclosures are required before listing or showing property, ensuring transparency. Agents must deal honestly, account for funds, and disclose material facts. Verify agent credentials at DBPR.

    FAQs

    What contingencies should I include?
    Financing, appraisal, and inspection are standard.
    What happens if a seller doesn’t disclose defects?
    They may face legal liability.
    How long does closing take?
    Typically 30–60 days, depending on financing.