Parties to an “AS IS” Residential Contract for Sale and Purchase in Florida must follow certain here are certain steps when the contract is subject to a lease after purchase. Depending on the language of the contract, these steps can include:
- Deliver copies of lease. The first step will often require the seller to deliver copies of the lease to the buyer. Most contracts require completion of this step within five days of the noted effective date. These contracts may include weekends in the count of days. If, however, the time period ends on a weekend or national holiday, the deadline generally extends to 5:00 p.m. on the next business day.
- Terminate contract. The buyer may then have the option to terminate the contract. If the buyer chooses to terminate, the buyer would generally deliver a notice to the seller at this time. The contract will outline the timeline for termination, often within five days of receipt of the lease and written notice from the seller.
- Estoppel letter. Next, the seller would deliver an Estoppel Letter to the buyer. This must be done at least 10 days before the agreed upon closing date.
The exact process will depend on the language of the contract. Use of a prepared contract can cause problems as it does not address the specific transaction. As such, it is often wise to have a contract drafted specifically for your transaction. This will better ensure the contract meets your needs and reduce the risk of any surprises during the transaction or after closing.