Clear Choice Tax & Lien is pleased to announce a new product called FRBAR Search. This product was developed in response to the updated 2017 FR/BAR Residential Contract for Sale and Purchase. This revised contract clarifies the definition of a Municipal Lien Search. This new contract goes into effect April 4, 2017 and the changes may impact your business.
In paragraph 9(c) of the New FR/Bar contract the Municipal Lien Search definition reads: “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.”
Two Key Items to associate with this statement:
1. The new definition DOES NOT include building permit searches which reveal open or expired permits as these do NOT have an effect on title.
2. Permit Searches by the Buyer much 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 the 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”.
To response to these changes Clear Choice offers two products that work with the new contract in the event that either the BUYER or the SELLER takes the initiative to order the permit search during the Inspection Period:
FRBAR Search (FARBAR) which will offer offer most of what the Clear Choice Full Municipal Lien Search offers, but excludes taxes and permits. These items can be ordered separately through the Clear Choice Tax & lien client portal HERE.
Permit Search Only: Clear Choice has long offered a Permit Search as a standalone order option. We recommend you direct buyers to order this search up front to determine if any open or expired permits need to be addressed.
If you have any questions or need additional information please contact our Client Relations team at: 954-597-7141
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