Sarasota Real Estate News

Sarasota Real Estate News January 21, 2017

In the past 30 days, a total of 7,862 people have read my blog--so the biggest compliment you can give me is a referral! Yesterday, I attended a Realtor round table discussion about escrow disputes. I am a Realtor and not an attorney, so please do not rely on this blog for legal matters. You'll need to hire a real estate attorney if you have concerns with your real estate contracts. If you don't have one in Sarasota, I can recommend a good real estate law firm.

What is an escrow dispute? It's a Seller's claim to keep the Buyer's escrow deposit. After a home inspection, the Buyer puts Seller on notice about property defects, and the Seller is required to get repair estimates in ten days. Seller may agree to make all repairs--but that is not what the contract says! The contract specifies an amount for repair limits, and unless there is an addendum to the contract adjusting the amount, this may leave one or more parties in default of the contract. Seller has two options: 1. Have the Buyer's list of repair items estimated, or 2. Get a second inspection. If there are differences in the two reports, then there is a third inspection (see Florida FARBAR contract). If the cost to repair is greater than the contract provisions, Seller can agree to the repairs or Buyer may deliver notice of what he/she wants repaired and then accept the remainder of the issues "as is." If neither the Buyer nor Seller do anything within five days, either party may terminate--and in this hot Sarasota real estate market with multiple offers, it's a dangerous situation for Buyers. Seller can use this to terminate the contract and go on to a higher offer!

There are attorneys' fees in disputes: in litigation, the prevailing party is entitled to be reimbursed. Realtors for Sellers should strive to get larger escrow deposits because in litigation, the deposit is generally split 50/50. Listing Agents should look at deposits as potential damages Seller could incur. Florida Buyers Agents should always caution their customers/clients that they could lose their money or it could take some time to get it back. Depending on the side of the transaction, it's recommended that Sarasota real estate Buyers risk the lowest amount and Sellers should try to negotiate the highest amount of escrow.

It's ALWAYS better to have a legal review of your Florida real estate contract because it is a binding agreement. Getting Seller's name wrong (i.e., Trust, LLCs) means there is not a binding contract until it is corrected. Either party can use this error to terminate the contract. "Out of Contract" is a term that has no meaning but it is used by many Florida Realtors. "Default of Contract" is correct, and only a Florida real estate attorney can make that determination. If contract deadlines are not met, get a legal opinion; do not just make assumptions and type up another contract. Having two contracts is never a good thing, and your Florida Realtor could be at fault if the original contract is not terminated.

Getting deposits back can take time if the dispute goes to court, and then court costs are deducted from the escrow deposit. Many times the Florida Real Estate Commission makes decisions on these claims.

If the air conditioner or anything else breaks prior to closing, Realtors should prepare an Escrow Agreement and have it reviewed by an attorney to have the Seller escrow funds at closing for future repairs. There are several items in this escrow agreement that must be specific; for example, what if the actual cost to repair exceeds the escrow amount? This is another area where it's dangerous to try to "wing it" without an attorney.

During the inspection period, never rely on the Seller to get estimates for professional repairs (AC, electrical, plumbing). Buyers should always hire their own professionals, and this may cost several hundred dollars; know this in advance and expect it; please don't ever skimp on getting the necessary inspections during your due diligence period. NEVER EVER let the Seller and/or Listing Agent take control of the inspection process! Trust me, this tactic turns into a real blood bath when I'm working as a Buyers Agent.

Here are my picks of the week for Sarasota homes on the market:
MLS A4175165 La Siesta on Siesta Key beach condo, across from beach; daily and weekly rental income, $389,000--I'll be there later today doing an Open House.
MLS A4174376 Botanica condo in Palmer Ranch, 3BR 2BA, $369,000; 15 minutes from Siesta beach.
MLS A4174153 Harbor Acres in Sarasota - single family home 3BR 3BA with view of the city $4,695,000.
MLS A4170673 on Longboat Key in Harbour Links condo, 2013 Harbour Links Dr #2013 2BR 2.5 baths, $699. I'll be there tomorrow afternoon, Jan 22, 2017, doing an Open House.
For more information go to my home page and enter the MLS number starting with "A" in the Home Search box to see these properties. These are not my listings but I am happy to help you as a Buyers Agent.

Wishing you a great weekend and please don't hesitate to call me at 941-914-4914 if I can answer questions about Sarasota homes for sale. My website is http://www.lindahrealtor.com/Home - copy paste to your browser or click the link above "For more information..."

Most sincerely yours,

Linda Holley
Realtor, GRI
Michael Saunders & Company
on Siesta Key in Sarasota, FL

Posted in:Sarasota Florida Real Estate and tagged: Sarasota Real Estate siesta key real estate Palmer Ranch Real Estate Sarasota condos homes for sale Florida gulf Sarasota downtown real estate

Posted by Linda Holley on January 21st, 2017 10:39 AM

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Sarasota Real Estate News

Sarasota Real Estate News January 21, 2017

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