Changes in the 2017 FR/BAR Contract drive NEW PRODUCT introduction for Property Debt Research.
New Product Name: Muni Search Lite
As the leader in the Municipal Lien Search industry, Property Debt Research (PDR) has been keeping up to date with the changes in the proposed revised FR/BAR 2017 real estate contract that debuted today, April 4, 2017 and may impact your business.
Specifically, Paragraph 9(c) of the new contract defines a Municipal Lien Search as“a search of records necessary for the owner’s policy of title insurance to be issued without exception for unrecorded liens imposed pursuant to Chapters 159 or 170, F.S. in favor of any governmental body, authority, or agency.”
- Unpaid municipal or county service charges for assessments for water, sewer, gas, electric fees and discovering municipal special assessments recorded in an Improvements Lien Book but not recorded in county public records.
- Municipal Lien Search is due at the same time as title evidence
There are TWO KEY POINTS associated with this statement:
Point #1 – The definition DOES NOT include building permit searches which reveal open or expired permits as these do NOT have an effect on title.
Point #2 – Permit Searches by the BUYER must be conducted within the INSPECTION PERIOD, and not by the Title Evidence Deadline. Paragraph 12 (d) (i) of the contract says “Buyer may have an inspection and examination of records and documents made to determine whether there exist any open or expired building permits……… Buyer shall WITHIN THE INSPECTION PERIOD, deliver written notice to Seller of the existence of any open or expired building permits.
Resolution of the discovered permits then is determined by the type of contract “Repair/Limitation vs As Is”.
Therefore, PDR now offers two products that are positioned perfectly to help our clients navigate this new contract in the case where either the BUYER or the SELLER take responsibility to order the permit search up front.
MUNI SEARCH LITE which will retain PDR’s rigorous standards as our regular Municipal Lien Search but will NOT INCLUDE a Permit Search nor real estate taxes. This search will be at a discounted price from our current full Municipal Lien Search.
Permit Search Only: PDR has always offered a PERMIT SEARCH ONLY option as a product listing. We highly encourage you to direct the buyers to order this search UP FRONT at the time of contract from PDR, the most thorough and trusted source in the market.
If you have any questions or would like any additional information, please contact our customer relations team at (877) 543-6669 ext. 219
Reference Source: FloridaRealtors/FloridaBar Residential Contract and As Is companion
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