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.
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.