I have found that the biggest challenge to buyers relocating to our area, as well as for local buyers who have not purchased a home in Florida for some time is understanding buyer representation and the usual and customary practices in our area.

The complexities of today's real estate transactions indicate a need to engage professional assistance. Exceptional buyer services from a knowledgeable full time REALTORŪ are invaluable and will save you time and money. REALTOR'sŪ are members of the National Association of REALTOR'sŪ and must subscribe to a strict code of ethics.

In the state of Florida, Realtors offer limited representation unless you engage them to represent you exclusively. Working exclusively with the most experienced and knowledgeable REALTORŪ that you can hire, will give you personal representation when dealing with a seller or builder. That REALTORŪ will protect your interests in the transaction. If you have done a good job of selecting a REALTORŪ, there is no reason to work with more than one. The inventory of homes available is the same for every REALTORŪ and if they have accurate information on your circumstances and requirements, you will be shown the same homes. Also, although builders and model centers do not advertise it, you can be represented by a REALTORŪ in buying a new home or condo; in most cases at no additional cost to you. Your REALTORŪ must accompany you on your first visit.

Florida Consumer Protection Law: Buyer Agency and Representation

In the course of purchasing a home, you will be presented with certain forms, which are described below.

Florida law requires that all Realtors act as transaction brokers unless a buyer engages them otherwise.

Other Options Available to you:

Single Agent. When this agency is selected, you are owed the following duties: dealing honestly and fairly; loyalty; confidentiality; obedience; full disclosure; accounting for all funds; skill, care and diligence in the transaction; and presenting all offers and counteroffers in a timely manner, unless a party has previously directed the licensee otherwise in writing.

As a Buyer's Broker I am fully committed to you. In addition to counseling you regarding the best financing, title insurance issues, and availability of hazard, windstorm and flood insurance, I will prepare an offer that will protect your interests. Together, we will review the most recent sales of similar properties to determine what price to offer. I will order inspections and discuss repairs to be made, if any. And together, we will review disclosures, warranties, appraisals and closing documents. Offers are typically written and accompanied by a "good faith" deposit which is held in an escrow account until closing. All forms required for an offer are included in my initial information package so that any questions you may have can be answered early on. My policy requires a signed agreement for this type of representation.

An Exclusive Buyer Broker Agreement is, in effect, an employment agreement in which the responsibilities of the parties are set out, and in which you agree to exclusively work with a Buyer's Agent/Broker for an agreed period of time, and in which you agree to pay a commission in the event a listing broker or owner does not agree to compensate your buyer's broker. Signing this agreement does obligate you to work solely with one agent, though there may be a geographic limitation.

Transaction Broker Notice. When you choose this limited form of representation, you are owed the following duties: dealing honestly and fairly; accounting for all funds; using skill, care and diligence in the transaction; disclosing all known facts that materially affect the value of real property and are not readily observable to the buyer; presenting all offers and counteroffers in a timely manner, unless a party has previously directed the licensee otherwise in writing; limited confidentiality, unless waived in writing by a party; (this limited confidentiality will prevent disclosure that the seller will accept a price less than the asking or listed price, that the buyer will pay a price greater than the price submitted in a written offer, of the motivation of any party for selling or buying property, that a seller or buyer will agree to financing terms other than those offered, or of any other information requested by a party to remain confidential); and any additional duties that are entered into by this or by separate written agreement. This limited representation allows a licensee to facilitate a real estate transaction by assisting both the buyer and the seller, but a licensee will not work to represent one party to the detriment of the other party.

Consent to Transition from Single Agent to Transaction Broker. Florida law allows real estate licensees who represent a buyer as a single agent to change to a transaction brokerage relationship in order for the licensee to assist both parties in a real estate transaction by providing a limited form of representation to both the buyer and the seller. This would apply if your agent or your agent's company also represents the seller of the home you wish to purchase.

Like the last form, signing this does not obligate you to work solely with one agent, or to pay a commission. It states the agency relationship that exists with a particular Realtor.

Florida is a lien theory state.
You receive a deed to your home shortly after closing. It will have been recorded in the courthouse by the closing agent. Any mortgage recorded against the property becomes a lien and the home usually cannot be sold again until the lien is satisfied.

Title Insurance
Title insurance insures that the seller transferred the property to you free of any liens or encumbrances. In Indian River County, the cost of the title insurance policy is customarily a cost to the seller. Your lender may require their interest to be insured as well. Any additional title insurance for the lender is a cost to the buyer. Lenders will also require an appraisal to assure the value of the home is no less than what you agreed to pay. They will request a survey of the property. This protects them (and you) from any easements or encroachments that would effect your home's value. You might also be required to pay the surveyor for an elevation certificate. This will show whether or not your property is in a flood zone and will require flood insurance.

Hazard Insurance
Speaking of insurance, if a hurricane is within a certain distance from our coast, your closing may be delayed if your hazard and windstorm insurance is not in place and paid for. Major carriers have limitations on how many policies they can issue per month. Timing is critical. One of the first priorities after your contract for sale and purchase is fully executed is to secure insurance for your home. I will work with you to make sure you have coverage in place for closing.

Closing in Absentia
You can't be here for closing? No problem. About half of my closings are "mail aways". I will coordinate inspections, survey, utilities, insurance and other details on your behalf. You will receive your closing documents a few days before closing and can sign, notarize and return them. I will be at the closing to see that all goes well and collect your keys.

Need a REALTORŪ in another location?
If you are buying or selling real estate elsewhere, send me an E-Mail and I will refer you to a competent and caring agent that can help make your home buying experience an enriching one.