Purchasers should exercise caution before entering a real estate contract
Dear Mr. Feichthaler,
I think I have found a great deal on a house, but there are questions regarding hurricane damage, insurance claims and other issues. The seller says I need to sign today or he is going to sell to someone else. With a $10,000 escrow deposit required, I am really worried about signing and finding major issues. What can I do to protect myself?
-Todd B.
Dear Todd,
All purchasers should exercise caution prior to entering a real estate contract regardless of the timing. This is especially true today after Hurricane Ian caused such incredible damage to our city. As always, the contract is key to protect your interests.
The standard Florida real estate contract has a provision for Inspection, or “Due Diligence.” The “As-Is” contract used by the majority of Realtors provides for a certain amount of time for you, as buyer, to determine whether the house meets your needs. During that time, you can have a physical inspection ordered, check with the city to determine open permit or code issues and any other research you wish to ensure you have a good deal. If you cancel the purchase during the inspection period, the escrow deposit should be returned to you. You will not be required to present reports or other justification to cancel. In fact, you can cancel for no reason at all.
With the above said, it is vital that you know what your rights are under the contract. First, if the contract states you have “0” days for inspection, your deposit is typically nonrefundable immediately. Also, there are other types of contracts used by Realtors, especially if they are based outside Lee County. These different types of contracts greatly differ on how inspections work, and what rights you have under the agreement. Before committing that kind of money, I would recommend having a real estate attorney look at the proposal. There may be additional protections that should be added based on your unique situation. To conclude, an Inspection Period that provides sufficient time for review of the property you are buying is a great way to protect yourself.
Eric P. Feichthaler has lived in Cape Coral for over 35 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 the Cape Coral Caring Center, Cape Coral Museum of History, and Cape Coral Kiwanis. He has been married to his wife, Mary, for over 20 years, and they have four children together. He earned his board certification in Real Estate Law from the Florida Bar. He is AV Preeminent rated by Martindale-Hubbell for professional ethics and legal ability, and is a Supreme Court Certified Circuit Civil Mediator. He can be reached at eric@capecoralattorney.com, or 239-542-4733.
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.
To reach ERIC P. FEICHTHALER, please email news@breezenewspapers.com