Buyer Essential Representation – 24 Must Items You Need to Be Aware Of

Sellers Disclosure – It’s important to ask for the Sellers disclosure. While most do, legally, sellers do not have to fill out a disclosure in the state of Florida. The reason being that if a Seller inadvertently forgot to put something on the disclosure, then the Buyer could come after them.

The Roof – It’s critically important to ask how old the roof is. Roofs typically last 20-25 years as the underlayment starts to wear. Insurance companies are also limiting the length of time. In some cases to only 10 years! Quotes for our 2900 square foot home range from $30,500 – $41,000. There are extras like gutters that you must look at. Gutters can range from $2500 – $4000 on a house like mine. Other things to consider include methodology. Stick and peel is the preferred method while a few still do the Kettle and Tar. I’m doing the kettle and tar as a longtime trusted builder friend of mine said that it is the better method. He feels stick and peel can get debris on it and lose some of the adhesive qualities, like contact paper in your cabinets. Tar is more expensive for insurance purposes for builders because of insurance liability. It’s also messier and smelly. But ultimately is a better method. Make sure to see if the warranty is also transferable. Some are and some are not. Check out our vendor recommendation list

AC – Both the compressor and condenser should last 7-8 years. These are big ticket items so knowing the age is important. Each big unit was replaced for $5900 a few years back. One obnoxious quote for the same item came in at $10,200 so beware of only getting one quote if you must replace. Extras I would recommend are air purifiers and mold UV lamps.

Water Heater – If you can, go tankless. You will tank me a lot! It’s more expensive and not every home has it available, but it heats faster and can run hot water all day long. If you have kids like our Sam who takes long showers, it’s essential and a life saver.

Pool Heater – Expensive to run, many discard them. I always have homeowners remove them if I’m representing them as a listing agent, if they are not working and there is not a spa. They are expensive and if you want to heat the pool (especially if you have an eastern or northern exposure) you want to be aware of this.

Pool Finish Age – Diamond Brite or Pebble Tek finish. Finishes can run 4-10k.

Termites – See the history of this. On the listing side, I always want to make sure my client cleans up the debris of past termites. A termite inspector can only see if the debris is there and then it becomes an unknown if there really are termites.

Special Assessments in both HOA and Condo. For a condo, is there a roof assessment? Elevator or balcony assessment? HOA’s and especially clubs may be doing large projects. While the Buyer should be paying future assessments as they will be getting the enjoyment out of them (make sure the proper box is checked), you need to be aware of them. If there are any rumors and if the age of items is old, factor that in. See Country Club Cost Comparisons.

Mold – Find out the history. Most mold issues that happen are from sprinklers or roof leaks and can be treated – but you want to know the history and if it was remediated by a licensed contractor.

Sewer or Septic – If it’s a house on septic, make sure sewer is available if you want it.

In Writing – Anything you agree to, get in writing on the contract. Verbal agreements are not valid in Florida.

Taxes – They are going to be reassessed and go up greatly if you they were homesteaded. Portability helps a lot if you already own in Florida.

Removal – If you want things removed from the house, put it in the contract and specify how it should be fixed.

Furniture – Put in writing what is included. Don’t just say “as seen on such and such date”. However, furniture in the contact if getting a loan is tricky. Check with your local lender. And for lots of reasons, you want a local lender.

MLS – Read what is included in the MLS sheet and double check to make sure all is included.

Cancellation – You must cancel during the inspection period (if an AS-IS Contract), if you want to cancel. Same for a mortgage if you cannot get your mortgage approved. And if you get an extension, make sure with the cancellation clause, that the cancelation clause it is still in place. If not, your deposit is at risk as well as specific performance liabilities.

Pet restrictions. – I have seen people have to move over these. You want to double check with the association. Pet Friendly Condos

Legal language – Your agent must know their limitations. Extra language must be written by a Florida attorney.

Cash means Cash – If you are waiving your mortgage rights but still getting a mortgage, you must have a contingency bridge loan in place. Not closing could put you in legal jeopardy.

Wires – Always send out escrows and other deposits by wire and at least 3 days ahead of schedule so they will not be late.

Fees – Double check application fees, HOA fees, capital contribution fees, membership fees.

Signing – Sign before closing. If you have a dispute, contact your Florida real estate attorney. However, not closing, even over a dispute, can put you in legal jeopardy as not showing up to closing can be considered a reason for default.

Closing Costs – It’s typical in Palm Beach County for the Seller to pay for Title Insurance and Warranty Deeds. See Closing Costs . Make sure the correct box is checked.

Insurance Quotes – Start this at the beginning of the process or right after you go under contract. Too many people I see are finding out their quotes after the contract goes through.

Jeff Lichtenstein is owner and broker of Echo Fine Properties, a luxury real estate brokerage selling real estate in Jupiter and homes in Palm Beach Gardens, Florida. He has 20 years of real estate experience, has closed over a 1,000 transactions, and manages over 50 agents in a non-traditional model of real estate that mimics a traditional business model. Some publications he has been quoted in.

Feel free to ask him a question directly at [email protected].

Posted in Buying, Jeff's Journal, Uncategorized on May 15, 2021 at 8:02 am.

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Buyer Essential Representation – 24 Must Items You Need to Be Aware Of