So, after the BIG settlement we all need to know this. Your real estate works hard for you. It is work, and we all work to put food on the table. Prior to seeing properties the Consumer (the prospective Buyer for this discussion) will be asked to sign an agreement to pay the agent representing them for their work. That agreement contains a line similar to this one: “A seller or listing broker may agree to pay some or all of the above compensation. If a seller or listing broker agrees to pay Broker for services Broker performs for you, Broker will reduce the amount you owe accordingly.”

OK, so to know the answer to if, and if so how much, the Seller or Listing Broker will compensate your agent, your agent must ask the Listing Broker the question: What box was checked on the listing agreement between yourself and the Owner? Was it 10 (a), (b) or (c):

10) Compensation to Buyer Brokers: Brokerage commissions are not set by law and are fully negotiable. Seller approves the following (check all that apply; if no option is checked then option (c) is deemed to be selected):

• (a) Seller authorizes Broker to offer compensation to buyer’s broker in the amount of______% of the purchase price or $_______________. (This amount will be paid from Broker to buyer’s broker from the compensation amount agreed to in paragraph 8.) This compensation will be set forth in a separate written agreement between Broker and buyer’s broker. (Use Form CABB-1)
• (b) Seller authorizes Broker to offer compensation to buyer’s broker from Seller in the amount of: ______% of the purchase price or $_______________. This compensation will be set forth in a separate written agreement between Seller and buyer’s broker. (Use Form CASB-1)
• (c) No compensation will be offered to buyer’s broker.

The answer to this question will let them know what form (CASB-1 or CABB-1) to use to memoralize that answer, Basically, what box was checked on the Listing Agreement the Seller signed with the Listing Broker and how much are they offering.

Also NOTE that the Realtors Code Of Ethics was updated and now includes:

Standard of Practice 3-2
If compensation is offered or advertised by the listing broker, any change in offered compensation must be communicated as soon as practical. After a REALTOR® has submitted an offer to purchase or lease property, the listing broker may not unilaterally modify the offered compensation. (Amended 1/14, Amended and effective June 5, 2025)
REALTORS® are prohibited from delaying or withholding delivery of a buyer’s/tenant’s offer while attempting to negotiate compensation. These ethical obligations in no way restrict the REALTORS®’ or clients’ ability to negotiate compensation in the clients’ best interest, including in offers to purchase or lease. (Adopted and effective June 5, 2025)

Short answer is NO!

The long answer is in several parts. First, title, and title insurance, is about marketability of the title to the property. Does the person who will be signing the the deed have the ability to do so? And do so without the Buyer assuming any undisclosed liens?

Language to protect the Buyer is now added to most of the Contracts I see. This is because we have all learned the hard way that without it the Seller doesn’t need to do much to remedy any unpermitted work, nor work that was done with a permit that was not closed out. Good agents will look into permits during the Inspection Period but soem do not. Only to find an open or expired permit when the Municiple Lien search of the Title agent comes back. But by then the As-Is period has ended. Why does that matter?

The FAR BAR As-Is Contract specifies in paragraph 12(a) that: “Unless Buyer exercises the right to terminate granted herein, Buyer accepts the physical condition of the Property and any violation of governmental, building, environmental, and safety codes, restrictions, or requirements, but subject to Seller’s continuing AS IS Maintenance Requirement,” Thus, by going past the As-Is period the Buyer is accepting any permit issues which are violations of “building…codes.”

And, 12(c) states: “SELLER ASSISTANCE AND COOPERATION IN CLOSE-OUT OF BUILDING PERMITS: If Buyer’s inspection of the Property identifies open or needed building permits, then Seller shall promptly deliver to Buyer all plans, written documentation or other information in Seller’s possession, knowledge, or control relating to improvements to the Property which are the subject of such open or needed permits, and shall promptly cooperate in good faith with Buyer’s efforts to obtain estimates of repairs or other work necessary to resolve such permit issues. Seller’s obligation to cooperate shall include Seller’s execution of necessary authorizations, consents, or other documents necessary for Buyer to conduct inspections and have estimates of such repairs or work prepared, but in fulfilling such obligation, Seller shall not be required to expend, or become obligated to expend, any money.“

How to use Florida Statute 553.79 to close out old building permits?

This is something which the Florida Association of Realtors got changed. As of 7 June 2019 via HB 447 local governments are, as per FS 553.79(16) & (17), to…

• Authorized to close a building permit six years after the issuance of the permit if the local government determines that no apparent safety hazards exist.
  • 16 (c) A local enforcement agency may close a building permit 6 years after the issuance of the permit, even in the absence of a final inspection, if the local enforcement agency determines that no apparent safety hazards exist.
• Prohibited from penalizing an “arm’s length purchaser” of property solely because a previous owner failed to close a building permit.
  • “(17)(a) A local enforcement agency may not deny issuance of a building permit to; issue a notice of violation to; or fine, penalize, sanction, or assess fees against an arms-length purchaser of a property for value solely because a building permit applied for by a previous owner of the property was not closed. The local enforcement agency shall maintain all rights and remedies against the property owner and contractor listed on the permit.”

It also provides remedies for owners who subsequently discover permits that remain open for work they previously contracted for, and for new purchasers who later discover an open permit for improvements added by a previous owner of the property that was previously undisclosed.

It is important to note that a contractor hired to finish an original contractor’s uncompleted work are only liable for the work they perform. The new contractor is not responsible for any defects in the work performed by the original contractor.