What Buyers Must Do After Signing A Real Estate Contract

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By Gary M. Landau, Esq.

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What Buyers Must Do After Signing Real Estate Contract | Florida | Call (954) 979-6566

It’s an exciting time for a homebuyer when you find the home of your dreams and that final “T” is crossed and the real estate contract is signed. As soon as that happens, however, there are steps that a buyer must take right away.

Real Estate contract

Here is a quick checklist for after the contract is signed:

1. Fund the escrow account. If you didn’t put your full deposit amount into your attorney’s escrow account when you signed the contract, you’ll need to do that as soon as possible.

2. Order an inspection. A typical real estate contract gives a buyer a set amount of time—usually a week or two—to have the property inspected. If the inspection turns up too many problems and you wish to back out, this can be done only during the specified timetable. Therefore, the first call you should make after a seller agrees to the deal (even before your best friend!) is to a qualified inspector. Depending on the terms of the contract, you might also be able to seek concessions from the seller or have him fix the problems uncovered if you have the inspection done during this window.

3. Start the process of getting a mortgage. Ideally, even before you signed the contract you received a pre-qualification letter from a lender. This doesn’t guarantee they will give you the loan, however, so as soon as the contract is signed you will want to work with a mortgage broker or bank to officially apply for the loan and to lock in the terms and the interest rate. Again, this must be done quickly, especially since any “finance clause” in the contract allowing you to cancel the deal if your loan falls through usually has an expiration date. During the loan application process, the bank will also order an appraisal to make sure the home is worth the purchase price.

4. Apply for condo or homeowner’s approval. If the home you will be buying is in a community that requires approval before you can purchase, you’ll need to get and submit the application and any supporting documentation right away, because this process can be lengthy. Many associations charge a small fee for this process.

5. Dive into the docs. Under Florida law, after the contract is signed a buyer in a condo has 3 days (excluding weekends and legal holidays) to nullify the contract after receiving a complete set of the Declaration and all amendments, by-laws, and other documents governing the association. There’s a lot to read, but you should comb through them with care; you may not want to buy into a development whose docs do not allow a pet or a home business, say if these are important to you.

Quick Frequently Asked Questions

1. What does it mean legally that “Time is of the Essence” in my Florida contract?
Most Florida real estate contracts, including the standard FAR/BAR forms, include a “Time is of the Essence” clause. Under Florida law, this means that every deadline—from the escrow deposit to the inspection period—is a strict, material requirement. Missing a deadline by even a few minutes can put you in default, potentially allowing the seller to cancel the contract and keep your deposit. Unlike some states where deadlines are flexible, Florida courts generally enforce these dates strictly.

2. Can I cancel the contract if the appraisal comes back lower than the purchase price?
Not automatically. A “finance clause” generally covers your ability to get a loan approval, but it does not always include a specific Appraisal Contingency. If the house appraises for less than the purchase price, the lender will only lend based on the lower value. Unless your contract has a specific appraisal contingency or the low appraisal prevents you from obtaining the loan terms specified in your financing clause, you might be required to pay the difference in cash or risk losing your deposit if you walk away.

3. Does Florida law provide a “cooling-off” period to cancel a contract for a single-family home?
No. While the provided text mentions a 3-day right of rescission for condominium documents (§ 718.503, Fla. Stat.), there is no such automatic “cooling-off” period for single-family homes or townhomes that are not part of a condominium. Once both parties sign, it is a legally binding agreement. Your only “out” is typically through the specific contingencies (like inspection or financing) written into your contract.

4. What happens to my deposit if the seller and I have a dispute and the deal fails?
Under Florida Administrative Code 64J-2.001, an escrow agent (like a title company or attorney) cannot unilaterally decide who gets the money if there is a “good faith doubt” or conflicting demands. If both parties cannot agree in writing on how to split the deposit, the escrow agent may have to file an Interpleader action, where the money is deposited with a court and a judge decides the winner. This process can be time-consuming and may involve legal fees that are deducted from the deposit itself.

5. If the property is currently in probate, what additional document should I demand before the inspection period ends?
If you are buying from an estate, you should ensure the seller (the Personal Representative) has the legal authority to sell. You should ask for the Letters of Administration and, if the Will doesn’t specifically grant a “Power of Sale,” an Order Authorizing Sale from the probate court. Because Florida homestead property passes outside of the general estate to heirs, you may also need all beneficiaries to sign the deed to ensure you receive a “clear and marketable title.”

Having the Law Offices of Gary M. Landau by your side during each step in a real estate deal helps ensure that the process goes smoothly. For more information about your real estate contract in South Florida, call 954-979-6566 or email for a free consultation. Attorney Gary Landau personally returns all calls to him.

 

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Frequently Asked Questions

A will is the simplest way to ensure that your funds, property and personal things will be distributed after your death the way you want them to. Even if you have very few assets, you will benefit from having a will. About half of all Americans die without a will (known in legal terminology as dying intestate). Without a will to indicate your wishes, the court steps in and distributes your property according to state law. A will ensures that your assets will be given to family members or other beneficiaries you designate.

 

Having a will is doubly important if you have young children. One section of the will allows you to designate a guardian for them in the event of your death. Without a will, the court will appoint a guardian for your children, who may not be the person you desire.

Many Florida residents have out-of-state wills, drawn up while they were still living among the hills of North Carolina or the hubbub of New York. If the will was valid according to your old state’s laws at the time you made it, it is still legal in Florida. However, if you are a Florida resident, you may benefit greatly by having a new will drawn up in Florida, because it will likely be more easily admitted to probate.

 

It is important to know that each state has its own requirements for what makes a will a legally binding document. For example, Florida doesn’t recognize handwritten wills that haven’t been witnessed (known as “holographic wills”), or oral wills not put into writing, even if other states okay them. There’s also the matter of Florida estate law. In this state, for example, your surviving spouse is entitled to 30 percent of your net probate estate, regardless of what you say in your will. The spouse may also have a “Homestead” interest in property you share here, even if you want your house to go to someone else. In fact, all real property owned in Florida will be subject to this state’s laws, even if you’re a snowbird maintaining a residence in the state where your will was drawn up. Other peculiarities also exist, which is why a Florida will could make things much easier for your heirs.

 

If you would like to have me review your current out-of-state will, I am happy to do so without charge. If it turns out to be in accordance with Florida state laws and procedures, you can continue to rely on it. If not, however, your heirs would rather you discover that now.

It is a good idea to re-read your will every few years to be sure it reflects up-to-date realities (you may not want to leave your heirloom to a niece you are no longer speaking to, nor have someone be named your child’s guardian if they have taken seriously ill since you drafted your will). It is especially important to reexamine your will if:

 

  • You have gotten married since it was last drafted;
  • You have made bequests to people who have fallen out of your favor or are no longer living (I recently updated the will of a man who had left everything to his first wife, who was long deceased), or you have not included people who are now dear to you;
  • You would like to change the person named as the personal representative of the estate. (Note: Florida law does not allow a nonresident of the state to serve in this position, unless it is an immediate family member or certain other relatives);
  • You have acquired pricey or sentimental items that are not accounted for in your will. Do note, though, that Florida law allows you to attach a separate personal property memorandum to your will, detailing who will get which specific items. This list can be changed whenever you want.

Perhaps I should answer this question with where not to store it: in a bank’s safety deposit box. Although it may seem logical to put this with your other important papers, it is often difficult for your heirs to gain access to the box once you die, since the box is sealed then and must be opened in the presence of a bank employee.

 

One good option is to leave your original will with the attorney who drafted it, making copies for your personal representative and other important relatives and letting them know who has the original. For my clients who prefer that I store their original will, I keep it in a fireproof will vault in my office, or in the vault in my bank.

 

As an alternative, you could store the will in a fireproof box or vault in your own home.

 

Wherever you store it, be sure to let your personal representative and other close relatives know where you have put it!

Probate is when the court oversees your assets and liabilities after your death. During probate, the court makes sure that your will is valid and acceptable; that all debts, bills, creditor’s claims, and taxes are paid from your estate’s assets; and that your remaining assets are distributed to your beneficiaries according to your will (or, if no will exists, by Florida law).

 

Probate usually does take longer than most beneficiaries would like. But in order to ensure that everyone with a right to a claim is included in the process, the court requires several steps. If the size and complexity of your estate are minimal, however, the entire process of probate can take as little as a few months. Larger estates that are subject to IRS estate taxes or those involving litigation on the part of creditors or heirs generally take longer, often one or more years.

 

To speed the process along for simple and small estates, the courts allow a shortened form of probate, known as “summary administration,” which requires much less paperwork and time.

A personal representative (PR) is a friend or relative, or an attorney or bank, who is put in charge of the estate until all matters regarding the probate are resolved. (In other states, this person is sometimes called an executor or administrator.) The job of the PR includes identifying all assets, searching for creditors and paying valid claims, filing required estate tax returns if the estate is large enough (the figure escalates over time, according to Congressional laws), coordinating with the probate court and attorneys, and overseeing the distribution of assets–all done under the guidance and assistance of a qualified attorney.

 

Serving as a PR is an important role, and such a person should be selected with care as to who is most willing and best able to serve in this position. By Florida law, your personal representative must be over 18 years of age, and be a blood relative, your spouse, the parent or child of your spouse, or a Florida resident.

Generally, no. If you co-own all property via such legal structures as “tenancy by the entirety” or by “joint tenancy with right of survivorship” the property immediately passed to you upon your spouse’s death. Proof of death is usually all that is needed to pass such jointly owned title for cars, stocks, and other personal property to the surviving spouse.

 

But if even one asset was held solely in the deceased person’s name, or any property is owned in the form of a “tenancy in common,” that estate will be required to go through probate. If the assets are limited, the shorter, simpler form of probate is generally all that is required.
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