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Hurricanes, Transactions and Contract Clauses

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Florida Realtors/Florida Bar contracts have provisions for casualties and severe weather events. The top four AS IS contracts are:

ORLANDO, Fla. – When a hurricane hits real estate deals, many realtors scramble to find casualties and bad weather coverage. This short inventory outlines key provisions of the Florida Realtor/Florida Bar Association’s “as is” home sale agreements, as amended in October 2021, and included in the Florida Residential Landlords and Tenants Act Provides a single reference to the damages clause.

  1. Section 18(G) Force Majeure
    This is an automatic extension that comes into effect when dramatic events prevent the party from performing or closing. As several examples show, such as hurricanes, acts of God, and acts of terrorism, an unusual and unplanned event is required for this “force majeure” clause to trigger. However, once a provision is invoked, the specified period (including the Closing Date, if applicable) will be extended for a reasonable period of time up to seven (7) days after the force majeure has ceased to impede performance. However, if force majeure prevents him from performing more than 30 days from the date of conclusion of the contract, either party may terminate the contract by written notice, so that the parties may You have to pay attention.
  2. SECTION 18(L) ACCESS TO ASSETS TO CONDUCT ASSESSMENTS, INSPECTIONS AND WALKTHROUGHS
    After a hurricane passes through a property, buyers often want to see the property again, whether it is still under inspection or not. This clause generally supports the buyer’s request. “Seller shall, upon reasonable notice, provide public utility services and access to the property for appraisal and inspection. Closure.”
  3. Section 18(M) Risk of Loss
    In the event that the buyer or seller discovers hurricane casualty damage, this clause states the rights and obligations of each party. If the cost of restoring the property does not exceed his 1.5% of the purchase price (this cost includes the cost of pruning or removing damaged trees), that cost is the Seller’s responsibility. If the restoration is not completed prior to closing, Seller will escrow an amount equal to his 125% of the estimated costs to complete the restoration. If the cost of restoration exceeds 1.5% of the purchase price, the purchaser will either take the property together with 1.5% of the purchase price or receive a refund of the security deposit and release the purchaser and seller from all obligations under the contract. You can choose Contract.
  4. Section 83.63, Florida Law (Casualty Damage)
    This brief section states that if a rental property is damaged or destroyed, “the tenant may terminate the tenancy and immediately evict the premises if the enjoyment of the premises becomes substantially impaired.” simply stipulated. This section states that a tenant “may evict a portion of a facility that has been rendered unusable by accident. In this case, the tenant’s rent liability will be reduced by the fair rental value of that portion of the facility that has been damaged or destroyed.” He goes on to present his second scenario of “Suppose “

While this article serves as a broad overview of the main provisions, Florida Realtor Legal Hotline Attorneys are always happy to discuss the nuances of these clauses. It’s easy to miss when the sun is shining and the deal is closing without incident, but it’s helpful to know where it is so you can get there quickly when the wind is blowing.

Joel Maxson is an Associate General Counsel for Real Estate Agents in Florida.

Note: Information believed to be accurate as of the date of publication

© 2022 Florida Realtors®

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