Jason O'Neal • February 19, 2025

Effective January 1, 2025, substantial revisions to the Florida Realtors/Florida Bar (FR/Bar) Residential Contract for Sale and Purchase are in effect. The revisions aim to improve clarity, bring the contract into compliance with recent legislative changes, and ensure fairness in real estate transactions. 

In Paragraph 9 of both the standard and "AS IS" forms of the FR/Bar contracts, the definition of the term "Closing Services" has been clarified. The revision makes it clear that the parties—seller and buyer—each pay the charges associated with their role in the transaction. The clarification is intended to avoid arguing about who pays for some of the closing charges.

For Agents: Agents in real estate need to make clients aware of their financial obligations with regard to closing costs. Open communication will help avoid misunderstandings and ensure smoother deals.

For Consumers: Buyers and sellers must understand their responsibilities when it comes to closing costs. This enables them to plan financially and avoid last-minute surprises at closing.

Paragraph 15(a) was amended to remove the provision that previously permitted the cooperating broker to request a portion of the listing broker's retained deposit in the event of buyer default. The revision clarifies disbursement issues when a transaction falls through because of buyer default.

For Agents: Agents and brokers must read their agreements and realize that, in the event of buyer default, the cooperating broker no longer has an interest in the listing broker's retained deposit. This requires a revisiting of how commissions and deposits are treated in default situations.

For Consumers: Purchasers must be aware of the monetary consequences of breaching a contract, since deposits can be lost without advantage to the cooperating broker. Sellers must know how kept deposits are distributed under such circumstances.

Paragraph 19 now includes checkboxes for the already authorized riders FF (Credit Related to Buyer’s Broker Compensation) and GG (Seller’s Agreement with Respect to Buyer’s broker Compensation). This inclusion simplifies the process of incorporating these particular addenda into the contract, making all relevant documents readily identifiable and included.

For Agents: Agents are advised to study the contents of riders FF and GG so that they can advise clients accordingly. The checkboxes availability makes it easier to include these addenda, ensuring complete and tailored contracts.

For Consumers: Purchasers and sellers ought to talk with their agents about whether these riders apply to their sale so that any provisions that need to be included are covered in the contract.

The Condominium Rider (CR-7_A) has been updated to conform to amendments to Section 718.503 of the Florida Statutes, effective December 31, 2024. The revisions require sellers to make certain disclosures about:

Milestone Inspection Reports: Structural integrity assessments of a condominium building. Turnover Inspection Reports: Inspections done when control of the association is transferred from the developer to unit owners.

Structural Integrity Reserve Studies (SIRS): Analysis that determines reserve funds required to ensure the structural integrity of the condominium.

The new rider contains prominent statements with checkboxes to mark whether these studies and inspections have been conducted or are needed.

These revisions are consistent with Section 718.503, Florida Statutes, that provides disclosure requirements for the sale of condominiums.

For Agents: Realtors need to make sure sellers know about and adhere to these disclosure requirements. Not providing the required documentation gives buyers the ability to cancel the contract prior to closing. 

For Consumers: Buyers should request and review these reports to make informed decisions about the property's condition and the association's financial health. Sellers must be prepared to furnish the required documents to facilitate a transparent transaction.

The 2025 revisions of the Florida FR/Bar Residential Contract for Sale and Purchase demonstrate a serious attempt at transparency, conformity with legislative reforms, and the promotion of fair practices in real estate deals. Both consumers and real estate practitioners should acquaint themselves with the changes to efficiently deal with the buying and selling processes. Being knowledgeable and taking the advice of attorneys when needed can help minimize risk and facilitate successful real estate activities. If you are seeking guidance in any aspect of a real estate transaction, from contract drafting, to contract disputes or closing and title services, please reach out to the knowledgeable attorney team at Cornerstone Law Firm by calling 407-986-0529.