Florida Real Estate Contract: Different Types and Key Terms to Include

What is a Florida Real Estate Contract?

A Florida real estate contract, sometimes referred to as a residential purchase and sale agreement, is a contract that lays out the terms and conditions between a buyer and seller for the transfer of real property.

A real estate contract is most commonly used to facilitate the purchase and sale of a residential home, but these contracts can also be used for commercial properties and investment properties.

A real estate contract will include specific details about the transaction like the purchase price and a description of the property. The contract will also include contingencies and disclosures that both parties must abide by to move forward with the sale of the property.

Common Florida Real Estate Contracts

There are several types of real estate contracts that can be used in Florida. These contracts include:

1. As-Is Residential Purchase Agreement . Used when a house is being sold in the current condition regardless of any flaws or issues.
2. Florida Realtors + Florida BAR Contract . An easy-to-use real estate contract that is approved by the Florida Realtors and the Florida Bar. It is often utilized by people selling their property without a realtor.
3. Northeast FL Association of Realtors Agreement . A contract that is copyrighted and suggested for use by the members of the Northeast Florida Association of Realtors.
4. Unlimited MLS Purchase Agreement . Used in connection with homes listed on MLS databases.

4 Essential Elements of a Florida Real Estate Contract

To be a legally valid contract, a Florida real estate contract must include the following 4 essential elements:

1. There must be mutual assent between the parties to enter the contract
2. The contract must contain a valid offer and acceptance of the offer
3. There must be adequate consideration (the exchange of items of value)
4. The contract must be for legal purposes and the parties must be legally competent to enter the contract

What Makes a Real Estate Contract Enforceable in Florida?

To be a legally enforceable real estate contract in Florida, the agreement must include specific information and clauses. Florida law lays out seven requirements that all real estate contracts must meet to be legally enforceable:

1. Written offer. The contract must be in writing and it there must be a valid offer for the purchase of the property and the seller needs to accept the offer.
2. Mutual assent. Both parties must agree to enter the contract.
3. Identification. All parties involved in the contract need to be identified. This is usually the buyer and the seller but could also include business names.
4. The property. The subject property must be identified and described including the physical address and a legal description. The legal description can be found on the property deed.
5. Price. The agreed upon purchase price of the property must be included.
6. Consideration. Consideration is required in all contracts. This is the exchange of items of value between the parties. In a real estate contract, consideration is usually the exchange of money for the property.
7. Signatures. The contract must be signed voluntarily by all involved parties and the parties need to be legally competent to sign the contract.

Can You Back Out of Buying a House After Signing a Real Estate Contract in Florida?

In Florida, a buyer cannot back out of a real estate contract unless there are specific clauses in the contract that allow the buyer to back out of the deal. When a buyer backs out of the deal it is called rescission. There are a couple grounds for rescission that can include title defects, fraud, and mistakes in the contract. The Florida real estate contracts that are approved by the Florida Realtors and the Florida Bar include specific provisions relating to rescission.