Question 1

What are closing conditions that can be waived?

Accepted Answer

Closing conditions: requirements that must be satisfied before a real estate closing can occur. Common conditions: financing contingency (the buyer must obtain a mortgage commitment), inspection contingency (the property must pass inspection), appraisal contingency (the property must appraise at or above the purchase price), title contingency (the seller must deliver marketable title), and survey (the survey must not reveal encroachments or other issues). Waiver: the party who benefits from the condition can waive it (e.g., the buyer can waive the inspection contingency and close despite issues found). The waiver: should be in writing and clearly state which condition is being waived.

Question 2

How should closing conditions be waived in Florida?

Accepted Answer

FL waiver process: written notice (the party sends written notice to the other party: identifying the condition being waived and confirming the intent to proceed), timing (the waiver must be made within the contract’s deadline for the condition: if the deadline passes without waiver or satisfaction: the contract may automatically terminate), and documentation (the waiver should be: signed by the waiving party, acknowledged by the other party, and made part of the closing file). FL best practice: the buyer’s attorney should review any proposed waiver before the buyer signs (waiving a condition: eliminates the buyer’s right to terminate the contract based on that condition).

Question 3

What are the risks of waiving closing conditions in Florida?

Accepted Answer

Risks: undiscovered defects (waiving the inspection contingency: the buyer accepts the property as-is and cannot later claim that: defects were not disclosed), financing risk (waiving the financing contingency: the buyer is obligated to close even if the loan falls through; the buyer may: lose the deposit if they cannot close), appraisal gap (waiving the appraisal contingency: the buyer must pay the difference between the appraised value and the purchase price), and title issues (waiving the title contingency: the buyer accepts title defects that may: affect use, value, and insurability). FL: Johnson v. Davis (seller disclosure obligations) still applies even if conditions are waived.

Waiver of Closing Conditions

Waiving Closing Conditions

Common Conditions

Waiver Process

Risks

Related Terms

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