Call Us 941-954-9991
Wiring Instructions
credit_cardMake a Payment
Facebook
Twitter
Google+
LinkedIn
Berlin Patten Ebling Logo
  • Who We Are
    • Firm Overview
    • Attorneys
    • Closers
    • Marketing Team
  • What We Do
    • Residential Real Estate
      • Residential Real Estate Closings
      • Foreign Real Estate Buyers And Sellers
      • REO Real Estate Closings
      • Foreclosure Litigation
      • Title Claims
      • Contract Disputes
    • Commercial Real Estate
      • Commercial Real Estate Closings
      • Commercial Development
      • Commercial Leasing
      • Commercial Landlord-Tenant
    • Commercial Litigation
    • Business Transactions
    • Land Use, Zoning & Development
    • Lender Representation
      • Lender Representation
      • Creditor Rights Representation
      • Out-of-court Workouts
    • Estate Planning
      • Wills, Trust and Probate
      • Business Succession Planning
    • Resources
      • Read Our Blog
      • Watch Our Vlog
      • Moving to Florida
      • Frequently Asked Questions
        • Buyers
        • Sellers
        • Commercial & Business Transactions
        • Business Representation
        • Others
      • Make a Payment
      • Schedule Estate Planning Consultation
      • Order Title
      • Wiring Policy & Confidentiality Disclosure
  • Why We Do It
  • Where We Do It
  • Talk To A Lawyer »

Don’t Cry Over Burnt Turkey!

November 23, 2016Hub Media DeveloperBlog Post, Contract Issues

In honor of Thanksgiving, we have a holiday themed fact pattern.  Buyers and Sellers are set to close on a property the Monday after Thanksgiving.  On Thanksgiving, the Sellers have their friends and family over for one last holiday dinner in the house.  Sellers also decide this will be the first year they try to fry a turkey.  Unfortunately, frying the turkey doesn’t go well and the palm trees catch fire.  On top of that, one of the guests gets a little rowdy and belly flops into the beautifully maintained shrubbery in the back yard.  The property is now left with burnt trees and ruined shrubs, just in time for closing.

The Buyer and Seller now wonder whether the FR/BAR contract contemplates unplanned events like these.  Luckily, the contract does include a few sections to help us navigate what to do in the event of last minute damage to the property.

The first contract section to take a look at is “Property Maintenance”, Section 11 of the FR/BAR contract.  This section requires that the Seller maintain the property in the condition existing as of the effective date.  So, if a guest ruins the shrubbery or if the shrubbery becomes significantly overgrown, this continuing maintenance requirement would provide protection for the Buyer.

The next contract section that may apply is “Risk of Loss”, Section M of the FR/BAR contract.  This section of the contract addresses damage due to casualty loss such as fire.  If there is a casualty loss after the effective date of the contract, the Seller bears the cost of restoration up to 1.5% of the purchase price.  If the required restoration cost is above 1.5% of the purchase price, Section M allows the Buyer to take the property as is with the 1.5%, or to cancel the contract and receive a refund of their deposit.  For purposes of our fact pattern, it is worth noting that there is a small carve out in this section limiting Seller’s obligation with respect to tree damage to the cost of pruning and removal as opposed to full tree replacement.  So in our fact pattern, the Buyers may end up with a few less palm trees in the back yard if the cost of removal is below the cost of replacement for the Seller.

As you can see, the FR/BAR contract can help us to resolve unique scenarios and last minute damage issues.  However, these sections can be difficult to navigate and interpret.  If you run into a scenario where you think that one of them may apply, it is important to speak to your local real estate attorney.

We wish you and your family a Happy Thanksgiving!

Sincerely,

Berlin Patten Ebling, PLLC

Article Authored by Jessica Featherstone, Esq.  jfeatherstone@berlinpatten.com

This communication is not intended to establish an attorney client relationship, and to the extent anything contained herein could be construed as legal advice or guidance, you are strongly encouraged to consult with your own attorney before relying upon any information contained herein.

All rights reserved. This copyrighted material may not be re-published without permission. Links are encouraged.

 www.berlinpatten.com 

 SARASOTA

3700 South Tamiami Trail, Suite 200, Sarasota, FL 34239   P (941) 954-9991  F (941) 954-9992

 VENICE

247 Tamiami Trail South, Suite 201, Venice, FL 34285  P (941) 955-9991  F (941) 484-9992

 LAKEWOOD RANCH

8130 Main Street, Suite 206, Lakewood Ranch, FL 34202   P (941) 907-9022  F (941) 907-9024

Share this:

  • Click to share on Facebook (Opens in new window)
  • Click to share on LinkedIn (Opens in new window)
  • Click to share on Twitter (Opens in new window)
  • Click to share on Pinterest (Opens in new window)
  • Click to print (Opens in new window)
: damage before closing on property, FRBAR Contract, property maintenance before closing, property maintenance FR/BAR contract, risk of loss FR/BR contract
Hub Media Developer

Related Articles

Buyer Default on a Residential Transaction

August 9, 2015Berlin Patten Ebling

Am I Bound or Can I Entertain Other Offers?

December 2, 2016Hub Media Developer

Tips to Take the “Fright” Out of the FR/BAR Contract Under New CFPB Rules

October 30, 2015Berlin Patten Ebling

View All Blogs



Recent Real Estate Blogs

An Ounce of Prevention…

February 15, 2019Berlin Patten Ebling

In an Escalating Market, What you Need to Know about Escalation Clauses

February 8, 2019Berlin Patten Ebling

Overlap between Real Estate and Estate Planning (other than the word “Estate”)

February 1, 2019Berlin Patten Ebling

Come Find Us

SARASOTA OFFICE
3700 South Tamiami Trail, Suite 200
Sarasota, FL 34239
Phone: 941-954-9991
Fax: 941-954-9992
Get Directions »

VENICE OFFICE
247 Tamiami Trail South, Suite 201
Venice, FL 34285
Phone: 941-955-9991
Fax: 941-484-9992
Get Directions »

LAKEWOOD RANCH OFFICE
8130 Lakewood Main, Suite 206
Lakewood Ranch, FL 34202
Get Directions »

TAMPA OFFICE
Grand Central Place
442 W Kennedy Blvd #312,
Tampa, FL 33606
Get Directions »

The Proof is in the Rating

bbb west florida

Best Law Firms Badge
© 2018 by Berlin Patten Ebling PLLC. All rights reserved.

The lawyers at Berlin Patten Ebling handle a wide variety of real estate matters with clients throughout Southwest Florida and the Gulf Coast, including Sarasota, Venice, Bradenton, Lakewood Ranch, and Tampa.
Read our Disclaimer and Privacy Policy
en English
ar Arabiczh-CN Chinese (Simplified)nl Dutchen Englishfr Frenchde Germanit Italianpt Portugueseru Russianes Spanish