Title Forum

Florida Realtor Residential Contract

  • 08/05/2011 10:07 AM
    Message # 670218
    BEVERLY MCREYNOLDS (Administrator)

    We are gathering comments and concerns about language in the latest version of the FR/BAR Contract as it relates to title insurance and related costs. The following comments were made during the monthly Agent Section conference call:

    1. The contract does not contemplate a closing fee to be charged to a cash purchaser and it is unclear for the seller. Title agents are required to recoup hard costs through the closing fee. Therefore, even a cash purchaser would need to pay some form of a closing fee.

    2. Unless otherwise specified, the search fee to the seller is capped at $200.00 which is not always realistic for properties with metes and bounds legal descriptions or short sales and REO's where the search is updated repeatedly.

    Please feel free to add to this list. We need your comments by August 15th.

     

    Thank you.

     

  • 08/17/2011 5:46 PM
    Reply # 678662 on 670218
    VINCENT CASSIDY (Administrator)
    Beverly McReynolds wrote:

    We are gathering comments and concerns about language in the latest version of the FR/BAR Contract as it relates to title insurance and related costs. The following comments were made during the monthly Agent Section conference call:

    1. The contract does not contemplate a closing fee to be charged to a cash purchaser and it is unclear for the seller. Title agents are required to recoup hard costs through the closing fee. Therefore, even a cash purchaser would need to pay some form of a closing fee.

    2. Unless otherwise specified, the search fee to the seller is capped at $200.00 which is not always realistic for properties with metes and bounds legal descriptions or short sales and REO's where the search is updated repeatedly.

    Please feel free to add to this list. We need your comments by August 15th.

     

    Thank you.

    How about amending the section regarding who orders and who pays for Title to provide for a situation where one party orders and the other pays.  We see more and more where the buyer is requesting to pick certain title companies but is negotiates for the seller to pay.   
  • 08/17/2011 8:33 PM
    Reply # 678741 on 670218
    Michael Schneider

    I beleive they should delete the clause requiring the seller to deliver legible copies of instruments listed as exceptions.  Delivering the commitment is a legitimate requirement but delivering copies of the exceptions should not be required unless the buyer specifically requests and pays a reasonable fee. It's an antiquated requirement and is a trap door that the buyer can use to weasel out of a deal and place the blame on the title company for the buyer's own failure to otherwise perform.  Moreover, at a minimum, the term "legible" should be replaced with "best available copy" or "as available from the clerk of court".  I'm sure we have all had situations where the copy in the public recors is not legible, but certainly the title agency cannot be expected to supply a legible copy if the clerk's office can't.

  • 08/26/2011 9:16 AM
    Reply # 685311 on 670218
    Jeffrey Isman

    Currently, the FR/BAR contract does not speak specifically to allowing a closing fee to be charged to the buyer. There should be a provision in the contract that allows for the title company to charge a settlement fee regardless of who picks the title company and regardless if the file is cash or lender.  Quite often we are spending time justifying our closing fee and when contested the contract leaves much to be desired in defending our position.

 
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