Buyers and Sellers Contracts in Sarasota

Contracts are the backbone of real estate transactions in Sarasota, guided by Florida Statutes Chapter 475 and local industry practices. They define the terms of the deal, safeguard the interests of all parties, and promote transparency throughout the process. This page outlines the key elements of real estate contracts, including required disclosures, common contingencies, and the role of real estate professionals, offering a clear roadmap for navigating transactions in Sarasota’s competitive property market.

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Contract Essentials

A standard purchase and sale agreement in Sarasota includes:

Property Description

Legal description, address, and parcel ID.

Purchase Price

Total amount and payment terms.

Earnest Money Deposit

Typically 1–3% of the price, held in escrow.

Closing Date

When title transfers and funds are disbursed.

Contingencies

Conditions like financing, appraisal, or inspection, allowing cancellation if unmet.

These elements, often drafted using Florida Realtors’ forms, clarify expectations and reduce disputes. Access forms via Florida Realtors.

Disclosure Requirements

Sellers must disclose material facts, per Florida law, including:

Property Condition

Issues like roof leaks, plumbing problems, or HVAC failures.

Environmental Hazards

Flood history, lead-based paint (for pre-1978 homes), or mold.

HOA/Condo Rules

Fees, restrictions, or pending assessments.

Failure to disclose can lead to lawsuits, as buyers rely on these disclosures to assess risks. For example, not disclosing a history of flooding in a Sarasota waterfront home could trigger legal action. Sellers use the Sarasota County Property Appraiser to verify property details.

Role of Real Estate Agents

Under Chapter 475, agents act as:

Transaction Brokers

Neutral facilitators for both parties, presumed unless otherwise stated.

Single Agents:

Loyal to one party, with full confidentiality.

Written disclosures are required before listing or showing property, ensuring transparency. Agents must deal honestly, account for funds, and disclose material facts. Verify agent credentials at DBPR.

Closing Process

Closing involves:

Signing documents (e.g., deed, mortgage).

Completing all necessary legal paperwork such as the deed and mortgage.

Transferring title, verified via title insurance.

Confirming legal ownership transfer, backed by title insurance.

Disbursing funds, including earnest money.

Releasing payments, including earnest money, to the appropriate parties.

Title insurance, mandatory in Florida, protects against defects like liens or ownership disputes. The process typically takes 30–60 days, coordinated by a title company or escrow agent. Contact Sarasota County Clerk for recording details.

Practical Tips for Compliance

Review Contracts Carefully

Ensure all terms are clear, especially contingencies.

Hire Inspectors

Professional inspections uncover hidden issues.

Work with Licensed Agents

Verify via DBPR.

Use Title Insurance

Protect against unforeseen title issues.

Check Disclosures

Request flood zone data from Sarasota County.

Written disclosures are required before listing or showing property, ensuring transparency. Agents must deal honestly, account for funds, and disclose material facts. Verify agent credentials at DBPR.