A Florida condominium unit is being sold and the closing is scheduled for Friday. On Thursday, the buyer's attorney discovers that the seller has not paid the monthly condo association fees for the past three months, totaling $1,200. The association has filed a lien. How should this be handled at closing?
Correct Answer
B) Deduct the $1,200 from the seller's proceeds and pay the association directly
Correct: The seller's outstanding condo fees and lien must be satisfied at closing from the seller's proceeds to ensure clear title transfer. Why not A: The buyer should not be responsible for the seller's pre-closing obligations. Why not C: Postponement is unnecessary if funds can be held at closing to satisfy the lien. Why not D: The seller alone is responsible for fees incurred during their ownership period.
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In Florida real estate closings, all of the following documents are typically required EXCEPT:
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A Florida property closes on June 18th. The seller has a homeowner's insurance policy with an annual premium of $2,400 paid through December 31st. Using the 365-day method, what credit should the seller receive for the unused portion of the insurance?