Author: Benjamin Boyhan
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How do you fix a defective deed?
There are several ways to fix a defective deed. The fix you choose will depend on the nature of the defect. Here three common ways to fix a defective deed: There are certain mistakes that might be considered “harmless” and may require no action. For instance, defects around witnesses and notary acknowledgements might cure themselves…
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What are consequential damages in a Florida real estate transaction?
Consequential damages (also known as special damages) in a Florida real estate transaction are damages that do not result directly from an action, but instead are a consequence of an action. For example, if a buyer breached a real estate contract and caused the transaction to cancel, consequential damages could include fees the seller had…
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When is a liquidated damages provision in a real estate contract considered a penalty and unenforceable?
In Lefemine v. Baron, 573 So. 2d 326 (Fla. 1991), Daniel Lefemine and Catherine Lefemine (the “Lefemines”) entered a real estate contract to purchase a property from Judith Baron (“Baron”) for $385,000 and put up a $38,500 escrow deposit. The Lefemines were unable to obtain financing and sued Baron for a return of their escrow…
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When are liquidated damages provisions not enforceable in a real estate contract?
Liquidated damages are an agreed-upon amount of damages or an agreed-upon way of calculating damages that will be used if there is a breach of contract. Typically, the liquidated damages available to a seller in a real estate transaction is the buyer’s escrow deposit. Liquidated damages provisions may not be enforceable if any of the…
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What remedies are available to a seller in a real estate contract if a buyer defaults?
Unless the remedy to seller is limited by the real estate contract, there are generally three remedies available to sellers if a buyer breaches: You can tell if the remedies for seller are limited by reviewing the terms of the contract. For instance, if the contract states that liquidated damages are the “exclusive remedy” to…
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What is the rescission of a Florida real estate contract?
Rescinding a Florida real estate contract means that the contract is cancelled, and it is as if no contract existed. In law, a rescinded contract is a contract that has “no force and effect from the beginning.” Borck v. Holewinski, 459 So.2d 405, 405 (Fla. 4th DCA 1984). Mutual rescission – Buyer and seller may…
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Who chooses the closing agent for a Florida real estate transaction?
Who chooses the closing agent for a Florida real estate transaction depends on what county the property is located. The general rule is that the one paying for title insurance is who chooses the closing agent. In most counties in Florida, that is the seller. Below identifies who chooses in which counties: Buyer chooses the…
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Real Estate Post-Closing Escrow Agreement
A real estate post-closing escrow agreement is an agreement in a real estate transaction where the parties agree to have money held by a third-party escrow agent over a specified time until the occurrence of some future event. A post-closing escrow agreement can allow the parties to close even if there are outstanding issues that…
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Post-Closing Occupancy Agreement in a Real Estate Transaction
A post-closing occupancy agreement is an agreement where the buyer allows the seller to occupy the property for a certain time after closing. Typically, the buyer and seller agree on a time period for seller to occupy the property and, in exchange, seller agrees to pay buyer rent and/or place an amount in escrow. The…
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What is the difference between a Closing Disclosure and a HUD in a real estate transaction?
A closing disclosure (“CD”) and a HUD are both forms of settlement statements. Settlement statements show all the fees, closing costs, cash to close, sale proceeds, and other financial information involved in a real estate transaction. A CD and HUD differ in that they have different formats, layouts, and a CD provides more information about…