Properly prepared sales contract can include items seller deems necessary
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Mr. Feichthaler:
I am considering selling my house in Cape Coral, but for tax reasons the sale cannot be completed until the new year. However, the buyer wants to move in as soon as possible, and the property is currently vacant. Although I am considering this, I think the buyer should pay the costs of the property while living there, including paying for utilities, insurance and property taxes. Is this allowed, or do we have to base the costs and everything else on when the property closes, Jan. 1?
-- Angelo R.
Dear Angelo,
As a seller of real estate, you have the position to negotiate nearly any terms you wish. A Purchase and Sale Agreement should always be prepared to clarify the rights and responsibilities of the parties. Standard terms will include sales price, escrow deposit, time for inspection and closing date. However, you can also include a wide variety of other terms that address cost allocation and pre-occupancy matters. Your contract can provide that your buyer can occupy the property if certain conditions are met, namely that they reimburse you for costs like utilities, provide a liability policy insuring you from any claims while the buyer is in place and other protections. You can also require that tax prorations take effect on move-in date, effectively having your buyer pay property taxes from the day they take occupancy.
It is important that the contract addresses all of your concerns, including the consequences if the buyer doesn't follow through with the purchase. How will you get him out? By structuring the contract with your interests in mind, you can minimize the possibility of negative, unforeseen consequences.
Eric P. Feichthaler has lived in Cape Coral for over 35 years and graduated from Mariner High School in Cape Coral. After completing law school at Georgetown University in Washington, D.C., he returned to Southwest Florida to practice law and raise a family. He served as mayor of Cape Coral from 2005-2008, and continues his service to the community through the Cape Coral Caring Center, Cape Coral Museum of History, and Cape Coral Kiwanis. He has been married to his wife, Mary, for over 20 years, and they have four children together. He earned his board certification in Real Estate Law from the Florida Bar. He is AV Preeminent rated by Martindale-Hubbell for professional ethics and legal ability, and is a Supreme Court Certified Circuit Civil Mediator. He can be reached at eric@capecoralattorney.com, or 239-542-4733.
This article is general in nature and not intended as legal advice to anyone. Individuals should seek legal counsel before acting on any matter of legal rights and obligations.