What does a Florida real estate purchase agreement cost? If you are buying or selling property in Florida, you may be asking this question. Let’s explore this question and review some general information about real estate purchase agreements and why they are important.
Based on ContractsCounsel’s marketplace data, the average cost of a Florida real estate purchase agreement is $649.03.
How Much Does a Florida Real Estate Purchase Agreement Cost?
A Florida real estate purchase agreement is a legally binding contract that outlines the terms and conditions between a seller of property and a buyer of property. This contract will typically include important information like the price of the property, property disclosures, and contingencies that must be met before the sale can be finalized.
It is vital that this contract is drafted correctly to protect both the buyer and the seller throughout the escrow period before closing. It is common for the party supplying the real estate purchase agreement (typically the seller in Florida) to hire a real estate attorney to draft the contract and assist with the transaction and closing.
What is the Purpose of a Real Estate Purchase Agreement?
The purpose of a real estate purchase agreement is to protect the buyer during the sale and transfer of property. When a real estate purchase agreement is signed, the sale is not finalized, it just solidifies the buyer’s intent to move forward with the transaction.
Real estate purchase agreements contain contingencies, or conditions, that must be met to move forward with the sale. Some common contingencies included in a real estate purchase agreement include:
- Home inspection contingency
- Financing contingency
- Appraisal contingency
- Title contingency
- Sale of buyer’s property contingency
Real estate purchase agreements also contain disclosures. These are conditions or defects on the property that could effect the property value that must be provided by the seller. In Florida, some required disclosures include:
- Coastline disclosure
- Condominium disclosure
- Lead-based paint disclosure
- Radon gas disclosure
- Property tax disclosure summary
- Homeowner’s association disclosure
If either party fails to meet these contingencies or if the seller fails to provide legally required disclosures or otherwise breaches the terms of the purchase agreement, the real estate purchase agreement can be terminated without legal repercussions.
See Real Estate Purchase Agreement Pricing by State
- District of Columbia
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Rhode Island
- South Carolina
- South Dakota
- West Virginia
What’s Included in a Florida Real Estate Purchase Agreement
There are several types of Florida real estate purchase agreements each used for a different type of sale. The most common terms found in a purchase agreement include:
- Property description. The property address and legal description of the property.
- Purchase Price. The amount the buyer has agreed to pay for the property and method of payment.
- Earnest money deposit. The amount of money the buyer will have to pay up front to show their commitment to the sale. This deposit can be returned if the contract is terminated for a legitimate reason like failure to meet a contingency.
- Disclosures. Any known issues or defects about the property and whether the buyer accepts the property “as is” or if the seller is required to make repairs.
- Contingencies. Any other conditions that must be met before the sale can be completed like financing, home inspection, or agreed upon repairs.
- Closing Date. The day that the deal will be finalized.
If you are unsure what information your purchase agreement should include, it is best to contact an experienced real estate attorney.
Florida Real Estate Purchase Agreement Drafting
Florida real estate purchase agreements are complicated legal documents and must be drafted correctly to ensure that both the buyer and the seller are protected throughout the real estate transaction. It is customary for the seller to provide the contract and many sellers choose to hire an attorney to draft the purchase agreement.
A real estate lawyer will know what needs to be included in the contract and the laws that govern real estate transactions in Florida. An attorney can draft a legally enforceable real estate purchase agreement that includes all relevant and legally required covenants, disclosures, and payment information.
Florida Real Estate Purchase Agreement Review
It is highly recommended that both parties have their own lawyer during the real estate transaction. If one party’s attorney drafts a real estate purchase agreement, the other party should have their own attorney review it.
Contracts generally favor the drafting party, so it is important for each party to have a lawyer looking out for their interests to ensure the contract is fair and all parties are protected.
Florida Real Estate Purchase Agreement Drafting Cost
If you hire a lawyer to draft a real estate purchase agreement in Florida, you will incur legal fees. Your lawyer may charge a consultation fee, drafting fees, and for their time at the closing if they attend.
ContractsCounsel’s marketplace data shows Florida real estate purchase agreement drafting costs to be $750.00.
Florida Real Estate Purchase Agreement Review Cost
If you choose to hire an attorney to review the real estate purchase agreement, you will be responsible for your own legal fees. The lawyer will charge for their time spent reviewing the contract and consultations with their client. It is also common for lawyers to attend the closing, and this will incur costs as well.
ContractsCounsel’s marketplace data shows the average real estate purchase agreement review costs in Florida are $500.00.
How Do Florida Lawyers Charge for a Real Estate Purchase Agreement?
Hourly Rates for Florida Real Estate Purchase Agreements
It is common for real estate lawyers in Florida to bill clients using an hourly rate fee structure. Under this fee agreement, the attorney will keep track of the number of hours spent working on a client’s case. At the conclusion of the case, which in real estate transactions is typically the day of closing, the lawyer will provide their client with a bill for the total cost of legal fees.
It is important to note that under an hourly rate fee agreement, attorneys can also charge hourly rates for any staff that also work on the case including associate attorneys, paralegals, and office staff.
ContractsCounsel’s marketplace data shows the average hourly rate for a Florida real estate lawyer is $200 - $350 per hour.
Flat Fee Rates for Florida Real Estate Purchase Agreements
When a lawyer is hired for a specific task, like contract review or drafting, instead of billing hourly, he may choose to bill the client using a flat fee rate. The lawyer will estimate the number of hours the project will take to complete then quote a fair flat rate price for all legal services.
It is important that a client understands what is included in the flat fee rate. Additional services like negotiating the contract or attending closing could result in additional legal fees.
ContractsCounsel’s marketplace data shows the average flat fee rate for a real estate purchase agreement in Florida is $649.03.
Get Help with a Florida Real Estate Purchase Agreement
Do you need help with a Florida real estate purchase agreement project? If so, post a project in ContractsCounsel's marketplace to receive flat fee bids from real estate lawyers who are licensed to practice law in Florida and can handle your project. All lawyers on the ContractsCounsel's platform are vetted by our team to make sure you are provided with top-tier service.