The Florida Association Realtors just released the FAR/BAR V 3. Click the link to see the red lined document. Only 2 changes being a clarification as to who pays for the municipal lien search and the Flood Zone Elevation Certificate section. Specifically, in Paragraph 9…
In the 2013 version, municipal lien search was included in the definition of Owner’s
Policy and Charges in Paragraph 9(c). The original intent for including this search
within this definition was to specify which party was responsible to pay for this search, if
the search was actually performed. These searches are regularly conducted in some
parts of Florida, while in other parts of the state they are not performed.
Reference to municipal lien search has been deleted from the definition of Owner’s
Policy and Charges in Paragraph 9(c) in the 2014 revision. Now you will find municipal
lien search as a cost to seller under Paragraph 9(a) or buyer under Paragraph 9(b). If
Paragraph 9(c)(i) is checked indicating seller is to pay for title, then seller is also to pay
for a municipal lien search if a municipal lien is performed. Conversely, if Paragraph 9
(c)(ii) is checked, then buyer is to pay for a municipal lien search if performed.
Remember, the costs itemized in Paragraph 9(a) and (b) are not required to be
absorbed by the party specified unless the item is part of the transaction.
(Note- municipal lien searches are regularly performed in Miami-Dade and Broward. If
Paragraph 9(c)(iii) [Miami-Dade/Broward Regional Provision] is checked, a municipal
lien search is to be performed. This isn’t new. What is new is the municipal lien search
is reflected as a seller’s cost in Paragraph 9(a), where Paragraph 9(c)(iii) is checked.)
And, in Paragraph 10(d)…
Language was added to and deleted from Paragraph 10 to update the flood disclosure.
The 2013 version of the contract provided that buyers could terminate the contract if
flood insurance was not available through the NFIP. The 2014 change allows the buyer
to terminate if flood insurance is not available through NFIP or private flood insurance.
The 2013 version provided that NFIP may phase in actuarial ratings for nonprimary
residential structures (second homes). The 2014 version changes this by referencing
that NFIP may assess additional fees and premiums for non-primary structures
according to the most recent changes to flood program. The 2013 version defined nonprimary
structure as a residential structure in which the insured or spouse does not
reside for at least 80%. This percentage has been changed to 50% of the year,
consistent with NFIP current regulations. The 2013 version referenced the federal flood
law Biggert Waters -12. This reference was eliminated since new flood insurance
legislation passed Congress.