Home Deposits may be Refunded Depending on Your Contract

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Home Deposits may be Refunded Depending on Your Contract

I'm back with you today to discuss home deposits and whether or not you can get your money back after you have made an offer. Our guest today is real estate attorney, Sam Saad, President of Paradise Coast Title and Escrow.

This is a question we hear time and time again, and will refer this one to Sam who can lend a hand in explaining. As a practicing attorney, Sam wants you to know that these instructions are not considered legal advice, and that if you do seek legal counsel, then you should consult an attorney who can explain your rights to you while under contract.

It Depends on the Type of Contract you Signed

Going forward, Sam says that a deposit is refundable in certain cases depending on what type of contract you signed.

     - If you signed the NABOR Contract, which is standard in Naples and Collier County, then your deposit is only refundable if you comply with the necessary inspection and finance provisions. These provisions are laid out very thoroughly and meticulously in the contract. 

For example, if you have gone through the inspection criteria and the seller refuses to comply with your requests, then you would get your deposit back. 

If the seller accepts a credit towards the property or goes through with the requisite repairs, then you would not receive your deposit back.

     - If you signed the FAR/BAR Contract, then you may also get your deposit back. However, you still need to comply with the inspection and finance provisions within the contract. You can find more information about this contract here: https://www.floridarealtors.org/LegalCenter/HotTopics/Florida-Realtor-Florida-Bar-contracts.cfm

     - The FAR/BAR As-Is Contract is very popular in the Naples area. This type of contract is most often associated with distressed home sales, and within the document there is a provision that allows the buyer a 15 day free-look:

Essentially, this allows you to sign the contract, put down your deposit, and after that you may conduct the necessary inspections. Within the 15 days you have the right to back out of the contract (for any reason whatsoever) and you will receive your deposit back - no questions asked.


The NABOR Contract that was mentioned earlier also has an As-Is addendum, which makes it a very safe contract for buyers.

You Need to Know your Options

Placing a deposit on a home may seem like an irrevocable act, this is not always the case, be sure to understand the contract that you're signing and are aware of your options within that documentation. As always, consult an attorney for representation if you have any sort of doubt as to what rights are afforded to you.

Do You Know Why Florida is a Great Place to Purchase Real Estate?

Do You Know Why Florida is a Great Place to Purchase Real Estate?

Today we have Sam Saad III joining us. Sam happens to be a real estate attorney here in the city of Naples and a member of the Naples city council. The reason we brought him along today is because as a real estate attorney, he deals with a lot of closings. As the president of Paradise Coast Title and Escrow, this also happens to be his specialty!

Today we wanted to talk to you about the importance of applying for Homestead. In Florida, homestead is something you can apply for when you own a property. However, as an attorney, Mr. Saad III has to remind you that this is not legal advice and if you have specific legal questions that need to be addressed by an attorney, you must do so accordingly.

Homestead in Florida is very complicated. Under the Florida constitution, Homestead is provided four protections with them being:

Real Estate Tax Exemptions 

Out of the four protections, this is the most talked about. 

In essence, as Sam Saad III explains, if you are approved for Homestead, you receive a $50,000 tax credit against the valuation on your property taxes for your ad valorem and a $25,000 credit on your school taxes.

What this means is that when the assessor comes to your home, they assess your property at a certain valuation that may not be the same as the sale price. The deduction is coming off what the value the assessor has set. Sam Saad III also added that once that assessor puts that valuation in place, the Save Our Homes Exemption provides a cap so the assessor cannot raise your taxable value (bear in mind this is different from your assessed value) by more than 3% per year. As you are most likely familiar with Florida real estate, we are prone to boom and bust periods. Sam states that this was put in place so you don’t feel giant increases in your property taxes. These are two great protections for people purchasing homes in Florida!

Debtor Protections

If a property is your Homestead, whether you are married or not, liens cannot attach to that property if a judgment is rendered against you and the person cannot take away your Homestead. Mr. Saad III noted that there are two important exceptions to that rule.

Three Exceptions

1. The first exception being that mortgage lenders can foreclose on your property if you don’t say your mortgage.

2. The second exception is that if you live in a mandatory homeowners association, the homeowners association can place a lien on your property.

3. Also bear in mind that credit card judgments and personal lawsuits, for example, do not attach to your Homestead. However if you do not pay your taxes, Federal laws generally override the state constitution. Mr. Saad III reminds us again that if there are Federal tax liens on your property, please consult your attorney to determine what your rights are. There are many exemptions and this must be dealt with properly.
For people who are looking to file for Homestead in Florida, Mr. Saad III tells us that you have to close on your property by December 31st and file for exemption by March 15th. If you did purchase your property last year, it’s important to file for your property tax reductions right away! The moment you move in your property and declare it your homestead, you receive the Debtor Protection. The other two protections do not relate to sales.

The one issue that does come up in closing is the fourth protection, the Restraint on Alienation. A husband and wife that own the property as joint tenants cannot sell the property out from the other. Essentially, it takes one to buy and two to sell.

This may seem a bit overwhelming, but Florida is a great state for Homestead! Sam states that we highly value it, the courts respect it, there are great tax exemptions and that it is a fantastic way to own your property. To learn more about Homestead, visit http://www.collierappraiser.com. If you would like to contact Sam Saad III, his information is Law Offices of Sam J. Saad III PA. 851 5th Avenue North Suite 306 Naples, Florida 34102. His phone number is 239-963-1635 if you would like to reach his office. If you have information to fax, his line is 239-791-1208.
 
Thanks and have a great day!

Overall Median Home Price Hits 57-Month High

Naples, Fla. (December 20, 2013) – Not since March 2009 has the overall median home price been above $225,000. According to a report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), the overall median home price for November 2013 was $237,000. The Naples area housing market’s November 2013 Southwest Florida MLS statistics show a 19% increase in overall median closed price from $200,000 for the 12-months ending November 2012 to $237,000 for the 12-months ending November 2013. The report also shows overall pending sales for homes between $300,000 and $2 million increased by double digits, and a substantial increase in single-family home sales activity in the North Naples area.

While overall closed sales rose a respectable 9% from 9,010 in the 12-months ending November 2012 to 9,801 in the 12-months ending November 2013, a 17% decrease in overall inventory will continue to influence closed sales growth. “Buyers want to purchase, they just can’t find the inventory,” said Kathy Zorn, Broker, Florida Home Realty.

“When we look at the numbers in this report we need to keep in mind the amount of uncertainty our market was facing over the last few months,” said Dr. H. Shelton Weeks, Department Chair of Economics & Finance, Lucas Professor of Real Estate and director of the Lucas Institute for Real Estate Development & Finance at Florida Gulf Coast University. “Despite the outcome and speculation of such factors as the government shutdown, flood insurance, healthcare reform, and quantitative easing, the market in our area did quite well. This indicates that there was continued confidence despite the uncertainty and that we have a well functioning market. The market report also tells me that both buyers and sellers are getting a fair deal.”

The NABOR® 2013 November Report provides comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. The NABOR® November 2013 sales statistics are presented in chart format, including these overall (single-family and condominium) findings:

• The overall median closed price in the $0-$300,000 category increased 15% from 140,000 in the 12- months ending November 2012 to $161,000 in the 12-months ending November 2013.
• Single family home closed sales increased 32 percent in both the $300,000-$500,000 category and
$500,000-$1 million category from 763 closed sales in the 12-months ending November 2012 to 1,009
closed sales in the 12-months ending November 2013, and 530 closed sales in the 12-months ending
November 2012 to 700 closed sales in the 12-months ending November 2013, respectively.
• The overall pending sales increased 4% from 10,667 in the 12-months ending November 2012 to 11,102
in the 12-months ending 2013.
• The overall inventory decreased by 17 percent from 6,518 properties in November 2012 to 5,428
properties in November 2013. Pending sales with contingent contracts are included in the overall
inventory number.

“We are beginning to see increased interest in the North Naples [34109, 34110, 34119] market with the highest number of closed and pending sales versus any other area in Collier County,” said Carmen Isbely Vasquez, Owner/Broker of U.S. Prime Realty. “The report indicates that the North Naples area had 2,639 closed sales and 2,942 pending sales in the 12-months ending November 2013. This is an 11% increase from 2,373 closed sales and a 6% increase from 2,772 pending sales in the 12-months ending November 2012.”

“Reported data confirms that we are also in a predominately cash buyers market,” says NABOR®’s new
President Patricia Pitocchi, who added that “cash purchases make up more than half of all home sales in Collier County. If seasonal residents with homes appraised below $300,000 and in good shape are considering selling before they head north next year, the 15% increase in median closed price for this category could mean a cash sale.”

Contacts: Pat Pitocchi, NABOR President & Media Relations Committee Chairman, (239) 261-2214, Marcia Albert, NABOR Director of Marketing, (239) 597-1666

The Naples Area Board of REALTORS® (NABOR®) is an established organization (Chartered in 1949) whose members have a positive and progressive impact on the Naples Community. NABOR® is a local board of REALTORS® and real estate professionals with a legacy of nearly 60 years serving 4,000 plus members. NABOR® is a member of the Florida Realtors and the National Association of REALTORS®, which is the largest association in the United States with more than 1.3 million members and over 1,400 local board of REALTORS® nationwide. NABOR® is structured to provide programs and services to its membership through various committees and the NABOR® Board of Directors, all of whose members are non-paid volunteers.


The term REALTOR® is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribe to its strict Code of Ethics.