4 Most Important For Sale By Owner Florida Real Estate Forms

Why use the Florida Association of Realtors forms?

We recommend that FSBO sellers use the Florida Realtors forms. It's important to use state specific real estate forms because laws vary significantly from state to state. The Florida Realtors goal is "to bring order, fairness and professionalism to the real estate business in Florida." As part of that mission, they create the contracts and forms that real estate brokers use. The same contracts and forms approved by the Florida Realtors can be used by the public.

There are a number of benefits to using these template forms. There are many forms available, covering the most common real estate transactions. These realtor forms are also widely used and understood by others in the industry. The contract forms are also balanced between the rights of buyer and seller. 

• Cover most common situations
• Protect both the buyer and the seller
• Understood by the real estate industry

However, the forms don't address every potential situation when selling a Florida property. If your sale has unique issues, you may want to hire a real estate attorney to help draft the documents.

Where to get the Florida Realtors forms if you're not a broker?

Florida real estate agents have access to these forms through Form Simplicity. Unfortunately, the current Florida Realtors forms are not available to the public for free. However, it's easy to find them. If you're using a title company to close the sale, the title company may be able to provide you with the real estate forms you need. If you list your FSBO for sale on the MLS using for a flat fee, the broker may also share the Florida real estate forms with you.

What are the main FSBO real estate forms?

The Florida Realtors have dozens of contracts and forms available. Which ones do you need? For FSBO sellers, the most important documents are the contract for sale and purchase, property disclosure form, closing statement, and deed. Other documents available that are not discussed here include exclusive right of sale listing agreements, lease agreements, escrow forms, and property management forms.

1. Real estate contracts - residential, land, commercial

A real estate contract is a legal document that outlines the rights and responsibilities of both parties involved in the transaction. It protects both buyers and sellers by clearly defining the terms of the sale. It helps to ensure all parties clearly understand their obligations, eliminating potential disputes or misunderstandings.

The Florida Realtors have three main sales contract templates: the Contract for Residential Sale and Purchase, the Vacant Land Contract, and the Commercial Contract. These contracts have many things in common. For example, they all include these basic contract requirements:

• Naming the parties
• Legal description
• Purchase price
• Earnest money
• Closing date
• Default and remedies
• Signatures

Below, we discuss some of the differences between the contracts and when to use each one. It's worth noting that each of these contract forms has various addenda and optional clauses. 

Florida Contract for Residential Sale and Purchase (CRSP-16)

Use this contract when selling a home for sale by owner. The Contract for Residential Sale and Purchase includes language for common fixtures that will convey with the property, such as appliances, ceiling fans, and light fixtures. If you're taking certain fixtures with you when you sell the property, you can list them as exclusions. That way there will be no confusion as to what is and what is not included in the sale.

The residential contract also has specific clauses for inspections such as radon gas level determination, wood-destroying organism inspections, permit inspections, and lead hazards assessments. It's worth reading these inspection clauses carefully because some of them require seller action if the inspections find cause for concern. For example, if there is Wood-Destroying Organism infestation or damage, you will have 5 days after receiving the inspector’s written report to obtain estimates.

There are also over 20 additional addendums available to add to the Contract for Residential Sale and Purchase. These addendums cover specific situations that are not part of the main contract because they do not apply to every transaction. Some of these addenda cover appraisals, condominium and homeowners associations, and lease options and lease purchases.

Florida Vacant Land Contract (VAC-14)

Use this contract when selling vacant land. This purchase agreement template is a simplified version of the Residential Sale and Purchase contract in certain ways. For example, there is less emphasis on the inclusion or exclusion of fixtures because usually there are none with vacant land. The vacant land contract has specific provisions relating to land sales as well. For example, there is an option for the purchase price to be determined based on a per unit cost instead of a fixed price. In the unit cost approach, a licensed surveyor would determine the size of the property, which would then be used to calculate the purchase price.

What to learn more? See our guide to filling out the Florida vacant land contract.

Florida Commercial Contract (CC-5)

Use this contract for a commercial property transaction. Commercial in this context means a property with non-residential structures. An example of a commercial property may be a restaurant or office building.

This contract may be used to sell a property with a business, so there is a provision for how the business is operated during the contract period. Closings for commercial transactions are typically more involved. So, the commercial contact has an extensive list of documents that the seller has to provide at closing. For example, the seller would provide service and maintenance contracts, assignable warranties or guarantees, assignments of leases, and tenant and lender estoppels.

Commercial transactions can get very complex, and the Florida Realtors forms may not cover every possible situation. Still, it's worth noting that the commercial contract has several additional clauses that can be added as needed. Examples include arbitration, property inspection and repair, and seller representations and warranties.

2. Disclosure documents

Seller disclosures are another important document when selling a property in Florida. Normally, the seller provides the required disclosures within a few days of signing the purchase and sale agreement. The disclosures explain any potential issues to the purchaser, but they also protect you as the seller. Failing to disclose known issues with the property could result in legal liability for the seller.

The residential and vacant land contract forms have their own disclosures documents. For residential properties, this document is called Seller’s Property Disclosure - Residential (SPDR-3). For land, it's the Vacant Land Disclosure Statement (VLDS-1). 

The land disclosure documents cover many common issues, such as use restrictions, flooding, utilities, and environmental conditions. The residential disclosure covers water intrusion and wood-destroying organisms, HOA restrictions, structure and roof condition, and many more items. 

3. Closing statement

The closing statement (or settlement statement) records all the fees and costs associated with the property sale. Unfortunately, the Florida Realtors do not publish a closing statement. Most people will want to have a title company or real estate attorney handle the closing anyway. 

If you're determined to complete the closing statement yourself, you can use the ALTA settlement statement available from the American Land Title Association's website. 

Knowing a few basics will help. Two columns of the closing statement will be prepared - one for the buyer, one for the seller. For the seller, the credit column are costs owed to you, such as the purchase price. The debit column is for costs the seller owes, such as unpaid property taxes.

Many costs are divided between buyer and seller at closing. For example, the buyer and seller may split the transfer fee 50/50. Other costs are divided depending on whether they were pre-paid. For example, if a seller has paid property tax in advance, then there would be a credit for the seller and a debit for the buyer.

The subtotals section shows the actual amount due from the buyer to close the transaction, and the actual amount the seller will receive. The balance due to seller is normally the purchase price minus seller closing costs. The balance due from buyer is the purchase price plus buyer closing costs.

4. Deeds

There are two main types of deeds referenced in the Florida Realtors forms: the statutory warranty deed and the special warranty deed. The sale contract specifies which form of deed will be provided in the title section. The statutory warranty deed is the default in the residential sale contract. In the vacant land and commercial contracts, the options are statutory warranty deed, special warranty deed, or other. 

The statutory warranty deed provides the most protections to the buyer. With a special warranty deed, the seller does not make any warranties about the title prior to their ownership. There are other types of deeds that can be used in Florida. One example is the quit claim deed. A quitclaim deed does not provide any guarantees that the buyer is getting clear title.

• Statutory warranty deed
• Special warranty deed
• Other, such as quit claim deed

If you prepare the deed yourself, you should be aware of the following requirements for a valid warranty deed in Florida:

1. The name and address of the person that prepared the deed
2. The name and address of the seller
3. The name and address of the buyer
4. An original signature from the seller
5. Two witness signatures
6. A valid property legal description
7. Notarization of all signatures

Conclusion - Florida real estate forms

Florida Realtors contracts and forms are essential for FSBO sellers. They provide comprehensive templates for the most common real estate transactions that are balanced between the rights of buyers and sellers. Of course, not every for sale by owner transaction fits neatly into a template. In some cases, you may choose to consult an attorney to draft or review a contract for your particular situation.

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Please consult your financial advisor, accountant, real estate attorney, or tax specialist. This article is for informational purposes and is not tax or legal advice.