FAQs: Real Estate

What questions should I ask when looking at homes?

Many of your questions should focus on potential problems and maintenance issues. Does anything need to be replaced? What things require ongoing maintenance (e.g., paint, roof, HVAC, appliances, carpet)? Also ask about the house and neighborhood, focusing on quality of life issues. Be sure the seller's or real estate agent's answers are clear and complete. Ask questions until you understand all of the information they've given. Making a list of questions ahead of time will help you organize your thoughts and arrange all of the information you receive.

What is a purchase offer?

A purchase offer or agreement contains all the details of the offer to purchase a piece of property. An agreement is binding only once the document has been agreed to and signed by the buyer and seller. Often in the purchase of real estate, there are a number of offers and counter offers until an agreement is reached.
Items and conditions that are often included in the purchase offer include:

• Description, legal and common, of the property
• Purchase price
• Earnest money deposit
• Features and fixtures which are to remain
• Home inspection results
• Anticipated financing
• Closing date
• Final inspection and move-in condition
• Penalties for breaching the contract
• Time to accept the offer
• Obtaining clear title to the property
• Clean inspection report

Why is a deed required?

A deed transfers ownership of property from one owner to the next and are required in the State of Florida in order to accomplish the same. Deeds must include all the statutory requirements in order to be effective.  Additionally, deeds must be recorded in the county where the property is owned. There are several forms of deeds, however, these two forms are the most commonly used:

Full covenant and warranty deed – which guarantees no other person owns or has claims against the property;
Quit claim deed – transfers interest in a piece of property from one owner to the next. A quit claim deed provides no guarantee from other interests or claims.

Do I need a written lease or rental agreement?

The lease or rental agreement is the key document of the tenancy, and must always be in writing. These agreements set out important issues such as:

• the length of the tenancy
• the amount of rent and deposits the tenant must pay
• the number of people who can live on the rental property
• who pays for utilities
• whether the tenant may have pets
• whether the tenant may sublet the property and
• the landlord's access to the rental property.

What's the difference between a rental agreement and a lease?

There are many legal differences, however, a rental agreement provides for a tenancy of a short period (often 30 days) that is automatically renewed at the end of the period unless the tenant or landlord ends it by giving written notice. For these month-to-month rentals, the landlord can change the terms of the agreement with proper written notice.

A written lease, on the other hand, gives a renter a property interest and a right to occupy a rental unit for a set term -- most often for seven months or a year but often even longer -- if the tenant pays the rent and complies with other lease provisions. The landlord cannot raise the rent or change other terms of the tenancy during the lease, unless the tenant agrees. Unlike a rental agreement, when a lease expires it does not usually automatically renew itself. A tenant who stays on with the landlord's consent after a lease ends becomes a month-to-month tenant, subject to the rental terms that were in the lease.

How can the tenant terminate the legal obligations of the lease?

There are three ways for the tenant to get out of the rental obligation: termination for legal misconduct by the landlord, replacement in the premises by a new tenant, or agreement between the landlord and tenant.

If the tenant moves out before the expiration of the lease, is the lease terminated?

No. The lease does not terminate just because the tenant moves out. The lease is a contract in which the tenant promises to pay the landlord for the right to possess the premises whether the tenant actually lives there or not.

Is the lease cancelled because the landlord sells the building or dies?

Most standard lease forms contain a paragraph on heirs and successors. This paragraph provides that the lease does not expire upon the sale of the building or the death of the tenant. If the tenant dies during the term of the lease, the tenant's estate will continue to owe the rent until legally released; it will also have the right to occupy the premises.

Can the tenant stay after the expiration of the lease?

A tenant who stays after the expiration of the lease is called a tenant at sufferance. The landlord can sue for eviction or can choose to continue accepting rent, thus renewing the lease. The renewal will be on a month-to-month basis or for another year, depending on the terms of the lease and the provisions of the law. Moreover, a provision of the lease or a statute may give the landlord the right to charge double the current rent during the withholding period.