The FAR/BAR contract (the “Contract”) is a useful starting point for Florida residential transactions, but it does not address every issue that can affect whether a deal closes smoothly. Some of the most significant transaction risks fall outside the Contract altogether, and they are often the issues that cause the most confusion when they surface late in a transaction.
This matters for Realtors. When an issue is not addressed in the Contract, it can still affect the buyer’s costs, the seller’s obligations, the closing timeline, and the parties’ expectations. These gaps are easy to overlook until a lender, inspector, or insurance company raises them. The better approach is to identify these gaps early and address them before they become problems.
1. Insurance
Insurance, both homeowners and flood, is not addressed in the Contract in a way that fully protects the parties from real-world insurance issues. In Florida, availability, premium cost, underwriting requirements, and inspection concerns can all affect a buyer’s decision and ability to close. Flood zone status, lender requirements, prior water intrusion, and the cost of separate flood coverage can further complicate the picture. A buyer who assumes insurance will be routine may be caught off guard by a high premium quote, a required repair found during underwriting, or a flood zone designation that increases ongoing carrying costs.
Recommendation: Encourage buyers to obtain homeowners insurance quotes early and to verify flood zone information with their lender and insurance professional. Recommend the FAR Homeowners’/Flood Insurance Rider when insurance availability, cost, or flood coverage may affect the buyer’s decision or ability to close.
2. Solar Panels
Solar panels are another issue not addressed in the Contract with the detail many transactions require. The Contract does not explain whether the system is owned, financed, or leased, whether there are transfer requirements, or how any related payoff or lien issues should be handled. Leased or financed systems, in particular, may require lender approval, an assumption agreement, or a payoff at closing, none of which the Contract anticipates.
Recommendation: Ask early whether the system is owned, financed, or leased. Gather the relevant documents promptly, and have the parties speak with an attorney about properly addressing solar panels in the Contract so the transfer terms are clear.
3. Mold
Mold is not addressed in the Contract at all, leaving the practical questions that arise during a transaction unanswered. Concerns about testing, remediation, disclosures, and repair responsibility can quickly create uncertainty, particularly when the issue is discovered after an offer has already been accepted.
Recommendation: When there are signs of water intrusion, staining, musty odors, or visible growth, encourage a prompt inspection and recommend the FAR Mold Rider when appropriate.
4. Pests
Pest infestations involving nuisance wildlife, such as rats, bats, and squirrels, are another area the Contract does not address. The Contract does not clearly establish who is responsible for removal or remediation if an infestation is discovered, or set a deadline for the seller to resolve it before closing.
Recommendation: Have the parties speak with an attorney about drafting a provision to ensure that the seller properly addresses and remediates any pest infestation prior to closing.
Final Thought
A smooth closing starts long before closing day. Insurance, solar panels, mold, and pests are all important issues precisely because they are not addressed in the Contract in a way that fully resolves the risks they can create.
When Realtors identify these gaps early, use the appropriate FAR riders, and involve legal counsel where needed, they help protect their clients, reduce surprises, and keep transactions moving forward with greater confidence.
If you are unsure how to handle issues within FAR/BAR Contracts, please reach out to your trusted real estate attorney.
This article is for general educational purposes only and does not constitute legal advice. Realtors and their clients should consult with the appropriate legal, insurance, inspection, or other licensed professionals regarding the specifics of any transaction.
