By Zana Dupee
To be a valid contract under the Statute of Frauds, a written document only needs to have the essential elements of the contract. Nonetheless, a contract for the sale of real property has not been prepared properly unless the written memorandum includes all terms and agreements necessary to allow the transaction to close without dispute. No sale of real property is a simple transaction; any contract for the sale of real property must be thorough and comprehensive.
Because even the simple real property sale is complex, Realtors use form contracts to ensure that all necessary matters are included in the contract. In fact, the use of forms is highly recommended by lawyers to avoid omission of important matters. The form contract may be a printed form but is often a form developed by the lawyer and revised from time to time.
Florida Realtors and attorneys use many different printed forms of the contract for the sale of real property in Florida. Several local bar associations or local realtor associations publish forms for use in their areas. These forms include terms and provisions that are customary in the local area.
The contract forms most widely used in Florida are
- The FAR/BAR Contract (published and copyrighted by the Florida Association of Realtors and The Florida Bar), and
- The FAR Contract (copyrighted and published by the Florida Association of Realtors).
The FAR/BAR Contract has a long history. In 1973, The Florida Bar and the Florida Association of Realtors signed an agreement known as the Florida Realtor/Attorney Accord. They subsequently replaced this agreement subsequently with an agreement known as the Memorandum of Cooperation. Under the terms of the Florida Realtor/Attorney Accord and the Memorandum of Cooperation, the statewide Realtor/Attorney Joint Committee was established. This committee is composed of members of the Florida Association of Realtors and members of The Florida Bar. The Committee established a subcommittee to draft and continually revise the FAR/BAR Contract.
The subcommittee published the original version of the contract in the early 1970s. The subcommittee has revised it every two or so years since. The Board of Directors of The Florida Association of Realtors, the Executive Council of the Real Property, Probate and Trust Law Section of The Florida Bar, and the Board of Governors of The Florida Bar must approve each revision to the contract proposed by the subcommittee. Therefore, the FAR/BAR Contract represents the work product and thinking of many experienced real property lawyers and realtors.
The legal staff of the Florida Association of Realtors prepared the FAR Contract with no input from the attorneys who are members of the statewide Realtors/Attorney Joint Committee, the Executive Council of the Real Property, Probate and Trust Section of The Florida Bar, or the Board of Governors of the Florida Bar.
Although no form contract is suited for all transactions and the drafters of these contract forms intended for Realtors to use them primarily for ordinary residential transactions, lawyers can use the provisions of the contracts as general models for many of the important terms to be included in any contract for the sale of real property.
Even though your Realtor may be using a form contract, you will best protect yourself if you consult with a real estate attorney to review the prepared contract before you sign it. If you are considering making an offer to purchase real estate in Florida, or if you need assistance with real estate, probate or trust litigation, you can call Zana Holley Dupee to schedule a consultation at (352) 379-5900.
A real estate contract is a contract to buy or sell, exchange or other conveyance of real property between the parties.The binder should provide that your deposit will be refunded and the sale will be canceled if you can not get a loan mortgage within a specified period.
Posted by: Homeowner Association Blog | April 27, 2011 at 03:41 PM