2025 Brings Important Contract Updates – Here's What You Need to Know

The new year is already off to a dynamic start with key contract changes that will shape Florida real estate transactions moving forward. Effective December 31, 2024, Florida Realtors and The Florida Bar implemented significant updates to both the “AS IS” Residential Contract for Sale and Purchase and the Residential Contract for Sale and Purchase. These revisions impact three critical sections of the contracts:

• Section 9: Closing Costs, Fees, and Charges

• Section 15(a): Buyer Default

• Section 19: Addendum

  
  

At Sun National Title Company, we’re here to help you navigate these updates with confidence. Let’s break down what’s new:

Section 9 – Closing Costs, Fees, and Charges: Who Pays What?

This section now clearly defines that each party is responsible for their own Closing Services costs.

What’s included in Closing Services?Closing Services refer to work done by a licensed title insurer, title agent, or attorney agent, and can include:

• Document preparation

• Conducting the closing

• Disbursing funds for transactions involving a title insurance policy or commitment

  
  

What changed? Previously, the party choosing the Closing Agent often paid for all associated closing services—sometimes incurring unexpected costs. Now, both buyers and sellers are responsible for their own costs, offering more control, transparency, and fairness in the process.

Section 15(a) – Buyer Default: Important Clarification for Realtors

Under the previous contract, if a Buyer defaulted, any deposit paid to the Listing Broker could be shared with the Cooperating Broker—as outlined in the contract.

What’s changed?That language has been removed. Now, the distribution of any deposit funds in a default situation must be handled through independent compensation agreements.

Why this matters:Realtors must now rely on separate agreements to determine how commissions are handled in the event of a Buyer default. There’s no fallback in the contract itself.

Sun National Tip:Whether you're representing the Buyer or Seller, always review and clarify compensation terms upfront to avoid surprises if a transaction doesn't close.

Section 19 – Addenda: New Buyer Broker Compensation Additions

This section now includes references to Addendum FF (Credit Related to Buyer’s Broker Compensation) and Addendum GG (Seller’s Agreement with Respect to Buyer’s Broker Compensation).

What’s new?These addenda provide the ability to structure an offer with specific terms related to how the Buyer’s Broker is compensated—particularly if the compensation is not paid in full by the Buyer.

Action Step:When using these addendums, make sure to check the appropriate boxes in the contract to ensure they are properly incorporated.

Stay Informed with Sun National Title Company

These contract updates may seem small, but they carry meaningful implications for how deals are structured and closed. At Sun National Title Company, we’re committed to keeping you informed and empowered as the market evolves in 2025 and beyond.

Have questions about how these changes might impact your next transaction?We’re here to help—reach out to your Sun National Title representative today at 239-334-3321

or visit us at closewithsun.com