BLUCHER LAW GROUP, PLLC
Real Estate
Transactions
REAL ESTATE TRANSACTIONS
RESIDENTIAL
COMMERCIAL
VACANT LAND
REFINANCE
RESIDENTIAL
BUYING OR SELLING A HOME
Marketing / Looking for Property
- Real Estate Agent – using a real estate agent is for your own protection. That is not to say that you cannot sell or buy real estate without an agent, but it always helps to have a professional looking out for your best interests. A real estate agent has the tools that can help you buy or sell a home with confidence. They know how to sell or where to look; how to contract the purchase/sale; what to look for from your point of view; and, what you the seller or buyers NEED to know before a transaction takes place. Remember, agents have their real estate commission as motivation to help you with the transaction. The typical commission fee in Florida is 6% (split between agents) and is paid out of the proceeds of the sale.
- On Your Own – if you decide to sell your home or begin looking on your own that is fine too. Be mindful that, unless this is something you are very familiar with, you may be taking unnecessary chances with a very important transaction. Chances are the other parties to the transaction are or will be represented by people more experienced in real estate deals than you, so you must make sure that you are fully protected. You will need a real estate attorney to assist you with many facets of the transaction. Is it a seller’s market? Do you know the value of your home? Do you have ability as a salesperson? Do you have the time?
- Seller Disclosure – the best policy to follow is, if you know something that may be detrimental to the property or buyer, you should always disclose that information before selling the property. The question is, do you have sufficient knowledge to “know” of a defect? If a buyer can prove that you have knowledge or reasonably should have had knowledge of a defect, then you the seller may be liable for damages. You should consult with a real estate attorney about these issues before you begin to market your property.
Transaction Participants and Basics
Experts
The Real Estate Contract
Investigate the Property
Closing
- What should you bring?
- What occurs at the closing?
- What happens after closing?
COMMERCIAL
BUYING OR SELLING COMMERCIAL / INDUSTRIAL / BUSINESS PROPERTIES
Marketing / Looking for Property
- Real Estate Agent – In most commercial transactions both the buyer and seller have a real estate agent working for them. This is a highly specialized transaction that can have many pitfalls. It is important in all transactions to employ competent professional help; and, this is particularly true in commercial transactions, because of the complexities of these deals. Remember to clearly identify the agent’s duties, responsibilities, and commission percentage in writing in the agent’s listing agreement. You should also make sure that the same commission percentage is identified in the purchase contract.
- On Your Own – It is generally considered a bad idea to try to market and/or purchase commercial property without a realtor. However, if you do not employ the expertise of a realtor, then you are in even greater need of a real estate attorney to handle the transaction from start to finish. Remember that the earlier you bring an attorney into the deal, the greater the benefit to you, the client.
- Seller Disclosure – Full disclosure by the seller is critical in commercial transactions because in most cases the buyer is or will become fully informed about the property through due diligence. Lack of disclosure up front, is simply asking for trouble later on in the transaction.
Identify Your Money Source
- Typically in a commercial transaction the parties will have their money source in place before a real estate contract is executed. A commercial transaction is usually an expensive proposition and the buyer may want to be pre-approved by the lender ahead of time to ensure that once a “good deal” is identified, it will close. This will ease the seller’s mind, too, in that a qualified buyer is a serious buyer.
- There are many sources of money available in today’s market for commercial transactions. Banks, private money, mortgage brokers, government loans / programs and financing can become complicated and very time consuming. An attorney may be able to point you in the right direction to investigate all of your options.
- You should shop for the best rates and the best available program for you. Visiting various banks and mortgage brokers will help you identify your best options. Your attorney may be able to help you with finding the best lender also. Because your attorney deals with these issues frequently, he may keep up on mortgage rates and the best, or at least most common, programs offered by lenders to his other clients.
Purchase Contract
Investigate the Property
The Closing
- What should you bring?
- What occurs at the closing?
- What happens after closing?
VACANT LAND
BUYING OR SELLING VACANT LAND
- These transactions are generally the same as for either commercial or residential transactions.
- Real Estate Agent commissions are usually higher than for improved property.
- Typical commissions are between 8 and 10 percent, yet negotiation of the percentages is possible.
Please see sections on Residential or Commercial for more information.
REFINANCE
REFINANCE TRANSACTIONS ARE SIMILAR TO CLOSINGS FOR PURCHASING PROPERTY. DIFFERENCES INCLUDE:
- No transfer of title (no deeds)
- Only a lender’s title insurance policy will be issued
- The transaction takes less time and effort
- Financing documents (mortgage, note, riders, truth-in-lending, etc.) are executed at the closing
- Money is held in escrow for three (3) business days, since owners have a three (3) day window (rescission period) in which to cancel the transaction.
- After the rescission period, the money is disbursed, previous mortgages and other liens are paid-off, and satisfactions of those liens are recorded.
For additional information, please see sections on Residential or Commercial.
This information is not intended as a conclusive explanation of the Law of Real Estate Transactions in Florida. It is to be considered only a summary for clients or prospective clients of this law firm. If you have any questions concerning a specific real estate transaction, you should consult an attorney experienced in the practice of real estate law.
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Note: This calculator is meant for estimate purposes only, and may not reflect final cost. Settlement fees vary widely by the services provided. Please contact Blucher Law Group, PLLC for a personalized quote.
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