Make sure the contract covers all necessary items
Dear Mr. Feichthaler:
I have lived in Cape Coral for 25 years in the Yacht Club area in a house, and I also own the vacant lot next door. recently received a solicitation by mail to purchase the lot from a company. A one page contract was included that had a sales price written in that I am willing to accept. Should I have any concerns?
– Susan D.
Dear Susan:
There are several companies locally whose sole purpose is to find sellers willing to sign a contract, then hope to assign/flip the property to someone else. Typically, I have found these offers to be significantly below market value. As I often mention in my column, the terms of the contract are vital and can have a significant impact on what they are really offering you. For instance, in Lee County the seller usually pays for title insurance and closing costs in a real estate transaction. Does the contract require you to close the transaction with someone who is not your choosing, which may be an affiliate of the buyer? Also, what are the consequences if the buyer falls through and refuses to pay for the property when the time comes? I have found that these buyers typically put little or no money down on these offers. If they fail to proceed, you may have a legal action against them where you may ultimately obtain a judgment. However, I have also found these companies actually have no land holdings in Florida. Judgments could be difficult to enforce, especially if the buyer is a “fly-by-night” company. Finally, check with a professional in the real estate field to make sure the offer amount is sufficient. Especially in our fast-changing economy, the offer may be great, or it may be too low.
Remember, a contract is a legal document and you will be required to fulfill its terms once you sign. So, before you sign on the dotted line, you may want to seek the counsel of a friend, lawyer or other processional to make sure you know what you are signing.
Eric P. Feichthaler has lived in Cape Coral for 28 years and graduated from Mariner High School in Cape Coral. After completing law school at Georgetown University in Washington, D.C., he returned to Southwest Florida to practice law and raise a family. He served as mayor of Cape Coral from 2005-2008, and continues his service to the community through his chairmanship of the Harney Point Kiwanis Club KidsFest, which provides a free day of fun and learning to thousands of Cape Coral families, and funds numerous scholarships. He has been married to his wife, Mary, for 14 years, and they have four children together. Recently, he earned his board certification in Real Estate Law from the Florida Bar. He is also a Supreme Court Certified Circuit Civil Mediator.
This article is general in nature and not intended as legal advice to anyone. Individuals should seek legal counsel before acting on any matter of legal rights and obligations.