The Florida Realtors/Florida Bar As-Is Residential Contract for Sale and Purchase is the most common form purchase contract used, according to Form Simplicity statistics. Let’s use it to illustrate how this situation might play out.
The As-Is contract has a section in Paragraph 2 to illustrate who the parties agree will serve as escrow agent — the party that will hold the funds. This will either be the real estate brokerage or an escrow agent, such as a title company or a lawyer. (There is no preclusion who is allowed to hold escrow, so in some rare cases it may be another person or entity.)
Many brokers misunderstand the role of the entity holding escrow money. Escrow holders are neutral. They simply agree to hold funds and may only release the money if they feel legally allowed and will not be exposed to risk.
When a broker is the escrow agent
If the escrow agent is a licensed Florida broker, Florida law comes into play. Since we don’t hold escrow and this generally is not the norm here I will not cover it here.
Escrow holder is not a licensed broker.
If the escrow agent is a title company, lawyer or someone other than a real estate broker, the dispute is handled as a civil matter initially. The dispute resolution section of the As-Is contract specifies 10 days for the buyer and seller to attempt to resolve the dispute on their own. If that is unsuccessful, the parties are required by contract to submit the dispute to mediation. The contract goes on to explain how the mediation must be handled. Many of these disputes go through a mediation process as part of the small claims process if the deposit in dispute is less than $5,000. If the two parties cannot agree how to divide or handle the escrow deposit, it becomes a legal matter.
The buyer has indicated they are cancelling but there is an escrow dispute can I reactivate the listing?
Yes. An escrow dispute, in itself, does not prevent the seller from advertising or selling the property. So you do not need the release and cancellation signed by both parties to activate the listing, you just need clear intent that the buyer is cancelling the contract.
Disclaimer: This article is for general informational purposes only and should not be construed as legal advice or a legal opinion on specific facts or circumstances nor a solicitation of legal business. You are urged to consult an experienced lawyer concerning your particular actual situation and any specific legal questions you may have.
RE/MAX Elite Top 10 RE/MAX Elite Agents and Teams for the month and year to date for April 2017! Way to keep Rockin 2017!!
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Spending Time Wisely
Was it a fun filled, productive weekend? How do you spend your time? Did you spend it wisely? Did you spend it doing something fun, working – or both? Regardless of how you spent it, each of us has 66 hours from Friday at 5:00pm until Monday at 6:00am to invest wisely. Whose life was impacted by your hours? Clients, family, friends? What memories were created? How many times did you smile, or make others smile? What was the best part of your weekend? If you could turn back the clock, would you spend that time differently? The goal is to end each day with the satisfaction that it was well spent. That you contributed to something bigger than yourself, and that you took the time to also take care of yourself. When we take the time to care for ourselves, we are better able to care for others.
Here’s a quick checklist:
• Did you get 8 hours of sleep each night?
• Did you eat healthy? At least 75% of your food should have been whole foods & water.
• Did you exercise? You should exercise at least 30 minutes per day.
• Did you hug someone you love? Studies show that hugs build our immune system.
• Did you laugh? It can be a funny movie, or laughter in a conversation. Laughter actually extends our life.
It’s the little things that can keep you healthy and going full blast, as most of us do, most of the time!
Something to Think About
Some people always seem calm, relaxed and prepared, while others are stressed, feeling pressure and never have enough time to do what they need to do. Why? We have the same number of hours to work with. What’s the secret?
We all have that person in our life who seems to keep it all together; they stay balanced, and calm all the time. What is their secret? Take this week to reach out to someone who “appears” to have it all together and ask them to share their secret. Don’t be surprised if they have the same challenges that you have. Be prepared to share a few of your secrets as well.
Words of Wisdom
In all aspects of our lives balance is key. Doing one thing too much can cause upset, like the old saying goes, everything in moderation is the secret! Catherine Pulsifer
The problem is that technology has become an extra limb for some of us. It’s important to utilize this technology, but at the same time it’s important to know when to take a break from it. Alex Broches
Like with anything in life, find the balance between too much work and being too lazy; between spending too much and being a scrooge; between being gone all the time and being in each other’s way; between talking each other’s ears off and dead silence. Christian Olsen
It’s not about balance, it’s about designing a work-home-family life that makes you feel good. A life you don’t need a vacation from. Jacqueline Fisch
Your beliefs should knock the scale way off balance leaning to the side of love. If the other side is weighed down with worry, guilt, shame, anger or frustration, choose right now to change that! Debbie Dixon
An escalation clause in real estate, has actually existed for quite some time but is not commonly used in Brevard County. It is an additional clause that can be included in a purchase offer that informs a seller that a buyer is willing to beat out competing offers.
In the event of multiple competing offers, the buyers will offer $_____ over the highest offer’s net up to a purchase price of $________. In the event of an escalation, seller is to provide the buyer with proof of competing offer (contract), along with proof of funds/ pre-approval with personal information blacked out. Seller represents and warrants that competing offers are true and valid offers.
(If the buyer is willing to go up to any price because they are paying cash, then you could leave out the part about up to a purchase price of $_____)
If you have any questions regarding this OR any other real estate questions, please contact me!
By Michael Antoniak
When the topic is listing presentations, Cheryl Fairbanks is the expert. By her estimate, she leaves 95 percent of her listing appointments with a signed contract.
“Sellers want to know two things: if there’s anything they need to do to sell their home, and how much they will get,” she says. “If you try to answer those two questions without giving a solid presentation, they’ll say ‘next’ and move on to another agent.
“But if you use the presentation to establish your credibility and show them you’re the expert – before you ever start talking price – you’ll get that listing,” Fairbanks says.
Here, the Hall of Fame member with RE/MAX Trinity II in Southlake, Texas, outlines her best strategies – and what they could mean for your business.
Source: RE/MAX ABOVE Mag
Monday Morning Wake Up Call:
Your Motivation, Inspiration, & Direction for the Week Ahead
I hope that you had a relaxing weekend filled with friends and family. Are you like the millions of Americans who are constantly looking for ways to improve your health? You may have heard the new research published in the American Heart Association’s journal Stroke that finds that the artificial sweeteners used in diet drinks have been linked to a greater risk of stroke and dementia.
The April 2017 study, observed participants for 17 years and learned that those who drank at least one artificially sweetened drink per day were nearly three times more likely to have a stroke or develop dementia. Their findings held up even after adjusting for other factors such as age, gender, calorie intake, diet quality, physical activity and the presence of genetic risk factors for Alzheimer’s disease. Matthew Pase of the Boston University School said, “We recommend that people drink water on a regular basis instead of sugary or artificially sweetened beverages.” We work in a high stress business and we need to take care of our health!
Something to Think About
It’s not just stokes and dementia. A 2015 study of adults 65 and older found that those who drank diet soda daily gained more weight than those who did not drink it. Still another previous study found that diet soda could disrupt gut bacteria, leading to glucose intolerance in some people and raising the risk for Type 2 diabetes. Take care of your health so you can be around to celebrate your success for a very long time to come.
Take the water challenge and replace sugary drinks with good old H2O!
Words of Wisdom
Physical fitness is not only one of the most important keys to a healthy body; it is the basis of dynamic and creative intellectual activity. John F. Kennedy
I believe that the greatest gift you can give your family and the world is a healthy you. Joyce Meyer
Health is a large word. It embraces not the body only, but the mind and spirit as well; and not today’s pain or pleasure alone, but the whole being and outlook of a man. James H. West
Health is a state of complete harmony of the body, mind and spirit. When one is free from physical disabilities and mental distractions, the gates of the soul open. B.K.S. Iyengar
The root of all health is in the brain. The trunk of it is in emotion. The branches and leaves are the body. The flower of health blooms when all parts work together. Kurdish Saying
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It has come to our attention that there have been recent incidences of REALTORS® showing homes and failing to secure the properties when they left.
It is extremely important that you make sure you secure the premises when you leave a property. In many cases, the sellers feel violated and fearful when they return home to find their properties have not been properly secured.
Remember, it’s a privilege to be allowed in a person’s home when he or she is not there. Additionally, failing to properly secure a property after a showing could be a violation of the REALTOR Code of Ethics.
As a REALTOR®, you have an obligation not to interfere with the contractual agreement between the listing REALTOR® and the sellers. Leaving a home open for burglars, vandals and/or assailants could jeopardize that listing agreement.
1. Set big, consequential goals – and tell someone
2. Start each day doing something for you
3. Prospect leads first; everything else can wait
4. Avoid the trap of overload
5. Ditch your phone (you can do it)
6. Know where you’re going
7. If the timing’s right, hire an assistant
8. Be fun (and smart) in your marketing
9. Reflect your community
10. Create a strategic pipeline for Zillow reviews
11. Share your best ideas
12. Know your why
Source: RE/MAX ABOVE Mag