The FAR-BAR contract is a standard form contract used for the sale of residential real estate in Florida developed by The Florida Bar and Florida Association of Realtors. The FAR-BAr contract is widely used by owners, real estate agents, and attorneys alike as it has standard terms across the state and has very predictable terms.
Even though anyone can use the FAR-BAR contract, it is still recommended that the public use real estate professionals like realtors and real estate attorneys. The terms of the FAR-BAR contract are still not easy for the average person to read or interpret. Even with the FAR-BAR contract, things can go wrong quickly in a real estate transaction and having a real estate lawyer is the best course of action.
What Does the FAR-BAR Contract Contain?
The FAR-BAR contract contains general terms regarding the sales prices, closing date, and the parties with the title company or escrow agent listed holding the deposit. The FAR-BAR also includes provisions that deal with financing and inspection contingencies that are in the typical real estate sales transaction. These contingencies are the most common sticking points where a deal falls apart: when a buyer cannot get financing or the property does not pass inspection.
The FAR-BAR contract further contains provisions regarding title issues such as time to correct title defects which can be common in Florida after the foreclosure crisis along with HOAs and condominium associations.
There is also a version of the FAR-BAR contract for as-is purchase and sale where the property is being sold as-is with no expressed or implied warranties (absent typical disclosure requirements).
Addenda To The FAR-BAR Contract
In addition to the FAR-BAR contract, there are numerous addenda that are sometimes required such as: lead paint addendum, HOA addendum, short sale addendum, etc. These addenda are typically disclosures that seller must legally make to buyer beyond those contained in the FAR-BAR contract itself. The FAR-BAR contract was drafted so that these addenda could be attached to the contract and modify its terms. There are also custom addenda that may be made by a real estate attorney; as real estate agents may only use the forms by law and cannot alter the forms or draft custom addendum terms.
How Can The FAR-BAR Contract Be Signed
The FAR-BAR contract may be signed in person, by fax, or electronically. The FAR-BAR contract contains no restrictions on how it must be signed to be valid.
FAR-BAR Contract Current Version
The FAR-BAR contract is constantly updated to match the current real estate laws. It is important that one uses the correct version of the FAR-BAR contract as an old version may conflict with current Florida law. A person should verify with The Florida Bar or Florida Association of Realtors, or an attorney to ensure that they are using the newest version of the FAR-BAR contract.