Every purchase agreement is a contract between a buyer and seller that binds both parties to the terms of payment and the condition of the property. For a Florida purchase agreement, the seller must include any relevant disclosure summaries about their property.
Once signed, this document holds both buyer and seller responsible for all conditions they establish. Therefore, the formulation of this document is a great place to safely and securely set all expectations and requirements for the transaction to proceed. A lawyer is generally recommended to aid this process.
One crucial feature of a real estate sale in Florida is the necessary disclosures regarding the property. According to Florida Statute § 689.261 (2021), the seller must provide a disclosure summary to inform buyers that property taxes may increase before executing the purchase agreement. Furthermore, the seller must disclose any defects in the property before signing a purchase agreement, as established by Johnson v. Davis, 480 So. 2d 625 (1985).
There are two ways a business purchase can be made: as an entity purchase or an asset purchase. Both will be discussed in detail below.
A stock purchase is also called an entity purchase. For this type of transaction to be made, a company will purchase the majority of another business’s stock. After this takes place, the new owner also acquires all debt and responsibilities of the entity.
An asset purchase agreement will outline the terms for a company’s tangible and intangible property to be sold. Through this process, materials like inventory and copyrights are transferred to the buyer while the seller’s company ownership remains intact.
When a plot of vacant land changes hands, the buyer and seller will complete a land purchase agreement, known as a VAC-14 where the price and contingencies are settled. Before signing this agreement, the seller must disclose any defects or facts which affect the land’s value.
Here are answers to common questions about Florida purchase agreements.