Common Contract Mistakes Buyers Make, and How to Avoid Them

When purchasing a home in Florida, buyers often focus on price, location, and financing, yet overlook critical details within contracts that can lead to disputes down the road. Common mistakes include failing to verify title conditions, allowing vague language on repair obligations, and neglecting necessary contingencies for financing or appraisal. Understanding these pitfalls at the outset can save time, money, and stress.

Incomplete Title and Ownership Review

Buyers sometimes fail to request a thorough title search and review the title commitment, leaving unresolved liens, easements, or other title exceptions undiscovered. Without clear title provisions, a buyer may inherit hidden debt or restrictions on property use. It is important to review Schedule B-II exceptions in the title commitment and ensure the seller addresses any issues before closing. Remember, title insurance does not automatically cover all exceptions unless specifically cleared or insured over.

Vague Repair and Maintenance Clauses

In Florida, purchase contracts vary in how they handle repairs. Under the FR/BAR “As Is” Contract, buyers may inspect the property but cannot force the seller to make repairs, while under the Standard Contract, sellers may be obligated to complete certain repairs within defined limits. Contracts that simply state “seller to repair defects” without specifying the scope, timeline, and quality standards create ambiguity and can result in disputes over what constitutes acceptable repairs and who bears costs for unforeseen issues.

Insufficient Contingency Protections

Real estate contracts lacking robust financing or appraisal contingencies leave buyers obligated to close even if they cannot secure a loan or if the appraisal falls short of the purchase price. Under the FR/BAR contracts, an appraisal contingency is not automatically included and requires an addendum if desired. Additionally, the financing contingency requires strict compliance, including timely notice if financing is denied, to avoid risking the buyer’s deposit.

Overlooking Inspection Deadlines

Contracts typically set strict deadlines for inspections and objection notices, commonly within 10-15 days of the effective date. Missing these deadlines results in acceptance of the property “as is,” limiting a buyer’s ability to request repairs or cancel the agreement except for certain latent defects or fraud. Buyers should coordinate inspections early within the inspection period to protect their interests.

Failure to Define Closing Costs and Prorations

Without explicit language on the proration of taxes, utilities, and homeowner association fees, buyers may face unexpected costs at closing. In Florida, property taxes and association dues are typically prorated as of the day before closing. Documentary stamp taxes on the deed are generally paid by the seller, while buyers typically pay for title insurance, except in certain counties such as Miami-Dade where the seller often pays. Clear, written agreement on these details helps avoid last-minute disputes.

How to Avoid Making These Mistakes

Engage the Services of an Attorney Early

Working with a qualified Florida real estate attorney from the outset ensures that every clause in your contract is reviewed and negotiated to protect your interests, reducing the risk of future disputes.

Specify Terms Clearly

Define the scope of repairs, timelines, and quality standards within your contracts. For example, state, “Seller shall complete all roof repairs using materials meeting or exceeding current building code by June 1, 2025,” to reduce ambiguity.

Include Strong Contingencies

Add financing, appraisal, and inspection contingencies with clear deadlines and language such as, “Buyer’s obligation to close is contingent upon obtaining a loan commitment by May 15, 2025,” and “Contract is contingent upon the property appraising at or above the purchase price.”

Verify Title and Survey Results

Request a title commitment and review Schedule B-II carefully, ensuring the seller will resolve unacceptable exceptions before closing. Additionally, consider obtaining a survey within the inspection period to address potential boundary or encroachment issues.

Clarify Cost Allocations

List out prorations for taxes, association dues, and prepaid expenses, and confirm the responsibility for documentary stamp taxes and title insurance, ensuring both parties understand their obligations at closing.

Seeking Legal Help From A Real Estate Lawyer

A qualified lawyer who understands the nuances of real estate law reviews legal documents, identifies ambiguous language, and negotiates favorable terms on your behalf. Without legal guidance, buyers risk entering into contracts with hidden obligations or insufficient protections. A real estate lawyer can help conduct a thorough title examination and ensure a clear and unencumbered ownership transfer. They also draft or amend contract provisions to reflect your specific needs, explain these documents, and coordinate with lenders, title companies, and sellers.

Why Choose Nishad Khan?

Nishad Khan P.L. stands out among Orlando firms for our commitment to personalized service and thorough contract review. Our real estate lawyers have extensive experience handling residential and commercial transactions throughout Florida.

Choosing our law firm gives you detailed contract analysis to protect against costly oversights, clear communication, and prompt responses to your questions. We employ skilled negotiation to secure favorable terms and contingencies, and we have a transparent fee structure and no surprises at closing.

Protect your investment by partnering with a trusted attorney. Reach out today for expert guidance and ensure your next home purchase proceeds smoothly. Call our law firm today and schedule your consultation.