The Realtors association of the Palm beach and Greater Fort Lauderdale has released the housing sales data for July of 2021. No big surprises here as the housing sakes remain extraordinarily strong.
Risk Rating 2.0 Changes to Flood Insurance
BIG changes are coming to the National Flood Insurance Program and this will have a HUGE affect on Florida Real Estate and in particular along the coast. I recently attended a seminar on this new system intended for insurance agents and here are some of my “take aways”
There will no longer be a “Preferred Risk” policy. This is the $500/yr policy for those NOT required to have a policy by their lender. All policies will be individually rated for risk and the cost associated with that risk.
The Flood Insurance Rate Maps (FIRM’s) will ONLY be used to determine IF your lender will require you to have a flood policy.
The whole notion of a Base Flood Elevation (BFE) is going away. This is crazy. Your policy risk and premium will no longer be determined based upon open and available information being the BFE is 9′ and my first floor is 10′ so I’m good. Or my first floor is 12′ so I’m great. Elevations will be considered for ALL properties. From October onward, “Standardized rating tables will no longer be used, rates will be calculated using an algorithm.” Just exactly what that algorithm is, no one will tell you. Seriously. What they say will affect the pricing of new policies includes:
193 Porgee Rock Place Jupiter FL
The home at 193 Porgee Rock Place in Jupiter FL is located in the Rialto community.
Beautifully appointed Georgio model in the resort style community of Rialto! This 4BR 2.1BA 2CG single story CBS home offers impact windows and doors, split floor plan, LED hi hat lighting, wainscoting, plantation shutters and crown molding throughout. The Kitchen features stainless appliances including cooktop/double convection oven, convection microwave and island with breakfast bar. Master en-suite offers dual vanities, walk in closet with built ins, roman tub, and oversized walk in shower. Second full bath also offers dual vanities and walk in shower. Other features include a covered rear porch and fenced in yard with privacy. Freshly painted interior and exterior. Amenities include pool, clubhouse, tennis, fitness center and basketball all for a low monthly HOA fee.
This data is courtesy of: Illustrated Properties LLC
#Rialto
Definition of some common acronyms use in real estate
I was surprised to read an article on first time buyers and some of the items they could not define BUT the darn article did not define them so here goes…
- Deed – This is the instrument that transfers ownership of the property from one party to another.
- Note – This is the evidence of the debt incurred (loan) by the Buyer to purchase the property. It is NOT recorded in the public record.
- Mortgage – This is document which pledges the property as collateral should the note not be repaid and placing conditions on the maintenance of the property such as it being insured and the taxes being paid. It IS recorded in the public record.
- Appraisal – This is a valuation of the property typically ordered by the bank. What’s the collateral worth?
- Assessment – This can be many things but it typically from a condominium or an HOA for something like concrete restoration that was not budget for. Or, it can be from a public body for something like a road or sewer extension.
- Principal – This is the amount you owe to the lender. At the start of the loan it say starts out at 100k and then as you make payments each month a portion of the payment goes to interest and a portion to paying down the debt or the principal.
- Escrow – Again in a real estate transaction it could be many items. A buyer will place funds into escrow, with the Escrow Agent, when they first go to contract to show that are serious buyers and in the event of a default by them it goes to the seller. Or it could be the money which the buyer will place with their lender so that the lender can pay things like the annual tax bill and insurance bill.
- HOA – Home Owners Association.
- COA – Condominium Owners Association.
- Earnest money – The money placed with the Escrow Agent noted above.
- Amortization – The changing amount of principal and interest in the monthly payment tot he lender. It is NOT the same every month. Google loan amortization table and you can play around with it.
- ARM – An Adjustable Rate Mortgage is one which the interest paid on the loan periodically adjusts to some published rate plus a “spread”.
- PMI – Purchase Mortgage Insurance
- FRM – Fixed rate mortgage
- PITI – Principal + Interest + Taxes + Insurance = Monthly Payment.
If the agent for the Buyer or Seller states that their party agrees then is that a valid Contract in Florida?
First, le me say that I’m NOT a lawyer. If it really matters then ask one.
OK, so this is happening all the time now. Let’s just say that the Buyer submits an offer on a property through their agent (Transactional or Single agency) and that offer is kicked back and forth “verbally” but in writing via email or text message until finally one party says “I agree to your terms”. Does this email accepting those final terms constitute a valid and executed real estate contract? IMHO, NO IT DOES NOT.
There’s a few things here. As all real estate 101’s know the Florida Statute of Fraud requires real estate sales contracts to be in writing…
“725.01?Promise to pay another’s debt, etc.—No action shall be brought whereby to charge any executor or administrator upon any special promise to answer or pay any debt or damages out of her or his own estate, or whereby to charge the defendant upon any special promise to answer for the debt, default or miscarriage of another person or to charge any person upon any agreement made upon consideration of marriage, or upon any contract for the sale of lands, tenements or hereditaments, or of any uncertain interest in or concerning them, or for any lease thereof for a period longer than 1 year, or upon any agreement that is not to be performed within the space of 1 year from the making thereof, or whereby to charge any health care provider upon any guarantee, warranty, or assurance as to the results of any medical, surgical, or diagnostic procedure performed by any physician licensed under chapter 458, osteopathic physician licensed under chapter 459, chiropractic physician licensed under chapter 460, podiatric physician licensed under chapter 461, or dentist licensed under chapter 466, unless the agreement or promise upon which such action shall be brought, or some note or memorandum thereof shall be in writing and signed by the party to be charged therewith or by some other person by her or him thereunto lawfully authorized.“
The FAR BAR AS-IS Contract does allow for notification from one party to another to be binding when when made to the agent (attorney/broker) for that party…
“Notice and delivery given by or to the attorney or broker (including such broker’s real estate licensee) representing any party shall be as effective as if given by or to that party. All notices must be in writing and may be made by mail, personal delivery or electronic (including “pdf”) media. A facsimile or electronic (including “pdf”) copy of this Contract and any signatures hereon shall be considered for all purposes as an original. This Contract may be executed by use of electronic signatures, as determined by Florida’s Electronic Signature Act and other applicable laws.”
But this would NOT be a notification, this would be an execution of a Contract so unless the Buyer and Seller are negotiating directly (as with a FSBO with no agent involved) then the indication of one party (or their agent) to the other agent of agreed upon terms would not constitute a binding Contract for real estate.
Dear Anne
Sometimes a buyer
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