Five Problems with the FAR/BAR AS-IS Contract Revised 9/14

The FAR/BAR AS-IS contract Revised 9/14 has built in problems that can create a bumpy ride for both buyers and sellers. From our vantage point,  here  are the problems along with some simple solutions: Problem #1 for BUYER/SELLER BOTH: Title work due 5 days before closing (if left blank) Solution: In additional terms section, write in title commitment due 15 days after effective date or fill in title evidence is due 21 days before closing, if time frames permit.      Problem #2 for BUYER/SELLER BOTH: 9C(iii) as a choice, is not 100% clear about who selects title agent. Solution: In additional terms section, state which side is selecting the title agent.    Problem #3 for BUYER/SELLER BOTH: Requiring a survey to be completed  5 days before closing creates potential hardship for both sides, if survey issues exists. Solution: In additional terms section, require survey be completed  21 days after effective date.   Problem #4 for BUYER:  Municipal or code violations  and open permits that surface AFTER the inspection period is over, are waived by the seller. Due to lengthy time frames for  these municipal reports to be completed by the city, buyers find themselves stuck with issues that surface. Solution:  In additional terms section, require seller to close out any open permit and code violation issues before closing. This write in will override the boiler plate language. Problem #5 for REALTOR:   No clearly marked line for realtor commission(s). Solution: Write it in the % (s)! The Closing Company is a full service title, escrow and settlement agency licensed and bonded in the State of Florida.  Our services include refinance, purchase, private lending legal representation, real estate law and litigation and real estate document preparation.   We assist clients in navigating the complicated and risky real estate market with solid legal and title expertise.  For more information, please contact [email protected] or 305-271-0100  x701

Legal disclaimer: The Closing Company is not providing legal, estate planning, tax or investment advice. Please consult with a licensed Attorney for legal advice or before signing any legal documents. Please consult with a CPA for tax planning and advice