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What You Should Know

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What You Can Do

contract info

Florida Construction Recovery Fund – FAQs

  1. What is the Florida Construction Recovery Fund?
    The Fund is a financial safety net for homeowners harmed by licensed contractors who commit fraud, abandonment, or financial mismanagement.

  2. Who administers the Recovery Fund?
    The Fund is operated by the Florida Department of Business & Professional Regulation (DBPR).

  3. Does the Recovery Fund help with unlicensed contractors?
    No. The Fund only protects consumers who hired a properly licensed contractor under Chapter 489, Florida Statutes.

  4. How much can a homeowner receive?
    Up to $50,000 per claim, with a maximum of $200,000 per contractor.

  5. What must happen before filing a claim?
    The homeowner must obtain a final judgment, arbitration award, or DBPR order against the contractor.

  6. Does the homeowner need to try collections first?
    Yes. The homeowner must attempt to collect but be unsuccessful.

  7. Can recovery include attorney’s fees?
    Yes, some legal costs may be recoverable.

  8. What types of violations qualify?
    Fraud, abandonment, misapplication of funds, or gross negligence.

  9. Is new construction covered?
    Yes—new builds, remodels, repairs, and improvements qualify if a licensed contractor performed the work.

  10. How long do I have to file a claim?
    Generally within one year of the conclusion of litigation or final order.

Florida Construction Lien Law

  1. What is the purpose of Florida’s Construction Lien Law?
    It ensures anyone who improves a property—contractors, subcontractors, suppliers—can secure payment through a legal claim against the property.

  2. What is a Notice to Owner (NTO)?
    A document sent by subcontractors/suppliers informing the property owner they are part of the project and may file a lien if unpaid.

  3. Does the contractor send a Notice to Owner?
    Typically no—the prime contractor is not required to send one (but subs and suppliers are).

  4. When must a Notice to Owner be sent?
    Within 45 days of first work or delivery of materials.

  5. What is a Claim of Lien?
    A legal document filed if payment is not received; it secures the right to force sale of the property if necessary.

  6. How long does a contractor have to file a lien?
    90 days from the last day of work/material delivery.

  7. How long is a Construction Lien valid?
    1 year unless the contractor files suit to enforce it.

  8. Can liens be avoided?
    Yes—by obtaining Lien Releases, tracking NTOs, and using proper payment disbursement schedules.

  9. Is a contractor allowed to lien a homestead property?
    Yes, but strict rules apply: the owner must have signed the contract and any necessary notices.

  10. Can a lien be removed?
    Yes—owners can file a Transfer of Lien to Bond, dispute it in court, or pay the claim.

Free Mold Test

Free Mold Test?

Why should you be cautious when hiring a remediation company who also does the assessment?​Florida’s Chapter 468 establishes strict conflict-of-interest protections to ensure mold assessments and remediations remain unbiased and consumer-focused. Under the statute, the individual who performs a mold assessment is prohibited from offering or performing mold remediation on the same property for 12 months, and likewise, a mold remediator cannot conduct a mold assessment on a property they remediated during the previous 12 months. These rules exist to prevent self-referral, unnecessary remediation, and financial abuse. Assessors and remediators are also barred from inspecting any property in which they hold a financial or ownership interest, and they cannot accept referral fees or incentives for directing business to one another. Additionally, assessment or remediation fees cannot be contingent upon the outcome — meaning a provider cannot charge based on whether mold is found or how much remediation is needed. All contracts for mold assessment or remediation must be in writing (or an authenticated electronic record), ensuring the homeowner has clear, documented terms for the services being provided. Violations of these requirements can result in administrative penalties or criminal charges.

Buyer FAQ

Buyer FAQ

  1. Do I need to get pre-approved before looking at homes?
    Yes. A mortgage pre-approval tells sellers you’re a serious buyer and gives you an accurate price range. Pre-approval requires a lender review of income, credit, and assets and is far stronger than a pre-qualification.
    Sources: NAR guidance on buyer preparedness; CFPB on mortgage shopping. realtor.org+1

  2. How much do I need for a down payment?
    It depends on the loan: conventional loans often require 3–20% (many buyers put 5–20%), FHA loans can be as low as 3.5%, and VA loans may require no down payment for eligible veterans — lenders’ overlays and borrower credit affect exact amounts. Always confirm with your lender.
    Sources: HUD/FHA; VA; NAR buyer resources. HUD+2Benefits+2

  3. What are closing costs and who pays them?
    Closing costs include lender fees, title and escrow fees, taxes, prepaids, and insurance. Who pays is negotiated in the purchase contract and can vary by state — buyers typically pay most closing costs, but sellers often pay part (especially in buyer-favored markets). Expect about 2–5% of the loan amount, but check your lender’s Loan Estimate for specifics.
    Sources: CFPB closing costs guide; NAR closing articles. Consumer Financial Protection Bureau+1

  4. What is earnest money and what happens to it?
    Earnest money is a good-faith deposit held in escrow after an offer is accepted. If contingencies are met, the funds usually apply to down payment/closing costs. If the buyer breaches without an applicable contingency, the seller may be entitled to the funds per the contract; if the sale falls through for an allowed contingency (inspection, financing), the buyer typically gets the earnest money back. Exact rules depend on the contract and state law.
    Sources: NAR explanation of earnest money; Realtor.com primer. NAR+1

  5. Inspection vs. appraisal — what’s the difference and why both matter?
    A home inspection evaluates physical condition (structure, systems, hazards) and is for the buyer’s knowledge/negotiation. An appraisal estimates market value for the lender to ensure the loan amount is supported by the property value. Inspections protect the buyer’s health/safety and negotiating leverage; appraisals protect the lender and can affect financing if the home appraises low.
    Sources: NAR & InterNACHI/ASHI guidance; CFPB on appraisals. donnacraftcain.com+2ProTec Inspection Services+2

  6. What contingencies should I include in an offer?
    Common buyer contingencies: financing, home inspection, appraisal, and (when applicable) sale-of-buyer’s-home contingency. Contingencies protect the buyer but may make offers less competitive in multiple-offer situations. Consult your agent on local norms.
    Sources: NAR contingency guidance; Realtor.org resources on contract contingencies. realtor.org+1

  7. What if the appraisal comes in low?
    Options include: renegotiate the price with the seller, pay the difference in cash, request a second appraisal (rare), or walk away if your contract has an appraisal contingency. Lenders generally won’t fund above the appraised value.
    Sources: CFPB, NAR. Consumer Financial Protection Bureau+1

  8. Do I need title insurance? What does it cover?
    Title insurance protects against title defects (old liens, fraud, undisclosed heirs) that could invalidate ownership. A one-time premium at closing buys protection for as long as you (or your heirs) own the property. Lenders require a lender’s policy; buyers should strongly consider an owner’s policy for full protection. ALTA and title associations explain benefits.
    Sources: ALTA; NAR; CFPB on title insurance basics. American Land Title Association+2realtor.org+2

  9. Can I back out after I sign a purchase agreement?
    Only under the contract’s contingencies or by mutual agreement. Backing out without contractual grounds can cause forfeiture of earnest money and legal liability. Always follow contingency deadlines and put decisions in writing.
    Sources: NAR contract guidance; state contract law basics (consult local counsel). realtor.org

  10. How long does a typical transaction take from accepted offer to closing?
    Typically 30–45 days for a financed transaction, but it varies by loan type, title issues, inspection/repair negotiations, and whether a sale is contingent on another property. Cash closings can be faster. Your agent and lender should provide a timeline.
    Sources: NAR buyer timeline reference; CFPB closing timeline information. realtor.org+1

  11. Can I buy a short sale or foreclosure? What are the risks?
    Yes, but expect longer timelines, as lender approval is required in short sales and auctions/REO sales have “as-is” conditions. Risks: title or lien issues, lack of seller disclosures, repairs needed, and slower closings. Work with experienced agents and title companies.
    Sources: NAR short sale workflow; HUD/Federal foreclosure buying guides. realtor.org+1

  12. How does HOA membership affect my purchase?
    HOA rules, dues, and pending assessments affect cost and use of the property. Lenders require HOA documentation; review covenants, conditions, restrictions (CC&Rs), budgets, and special assessment history before closing.
    Sources: NAR consumer guides; CFPB/HUD HOA information. realtor.org+1

  13. Can I use gift funds or down-payment assistance?
    Many loan programs allow gift funds (with required documentation). Down-payment assistance programs (local, state, or nonprofit) often have eligibility rules and income/price limits. Always disclose gift funds to your lender and follow program rules.
    Sources: FHA and VA program rules; CFPB guidance on mortgage documentation. HUD+2Benefits+2

  14. Should I buy a home warranty?
    A home warranty covers certain home systems and appliances for a period (typically 1 year) for a fee; it’s different from homeowner’s insurance (which covers perils like fire). Warranties can reduce out-of-pocket risk on older systems but read exclusions, caps, and service fees carefully.
    Sources: NAR seller/buyer handouts; CFPB consumer tips. NAR+1

  15. How do I protect myself in a multiple-offer situation?
    Strategies: get pre-approved, increase earnest money, shorten/clarify contingency deadlines, and work with your agent on strong but realistic terms. Sellers often prefer clean, fast, and certain closings — sometimes more than the highest price. REALTORS® must present all offers and follow ethical guidance.
    Sources: NAR guide to multiple offers; NAR consumer resources. NAR+1

Seller FAQ

Seller FAQ

  1. How do I set the right listing price?
    Use a Comparative Market Analysis (CMA) from your REALTOR® that compares recent local sales, active and pending inventory, and market trends. Pricing too high can lengthen time on market and reduce net proceeds; priced correctly, listings attract more buyers and better offers.
    Sources: NAR consumer guide for sellers; local MLS/CMA best practices. NAR+1

  2. How much commission do sellers typically pay?
    Commission structures vary; historically total broker commissions average around 5–6% of sale price split between listing and buyer brokers, but rates are negotiable. The seller’s net depends on sales price, closing costs, and concessions. Always get written agency terms.
    Sources: NAR commission discussions and market surveys. realtor.org

  3. Should I stage my home and make repairs before listing?
    Staging and targeted repairs (cosmetic, curb appeal, minor systems) often result in faster sales and higher offers. Prioritize high-ROI items (paint, declutter, landscaping, minor kitchen/bath improvements). Your agent can advise based on comparable sales.
    Sources: NAR “Preparing to Sell” guide; Realtor magazine seller handouts. NAR+1

  4. What seller disclosures am I required to make?
    Sellers must disclose known material defects per state law (disclosure forms vary by state). Sellers should fully disclose issues like water intrusion, foundation problems, recent repairs, or environmental hazards. Failure to disclose known defects can lead to legal liability after closing. Consult your state disclosure form and your agent.
    Sources: NAR disclosure resources; state disclosure guidance (varies by state). realtor.org

  5. Do I have to fix everything the inspector finds?
    No — sellers can negotiate repairs, offer credits, or sell “as-is.” Many sellers provide repair concessions or complete only critical/health-and-safety repairs. Negotiation depends on the market and contract terms.
    Sources: NAR seller negotiation guides; inspection contingency norms. realtor.org+1

  6. What happens if the buyer’s appraisal is below the agreed price?
    The buyer can negotiate a price reduction, pay the difference in cash, request a second appraisal (rare), or cancel if protected by an appraisal contingency. As seller you can also agree to lower the price or accept other terms to keep the deal.
    Sources: CFPB appraisal info; NAR negotiation guidance. Consumer Financial Protection Bureau+1

  7. Are multiple offers legal and how should I handle them?
    Yes — multiple offers are legal. REALTORS® must present all offers promptly and follow the Code of Ethics. Sellers should evaluate offers based not only on price but on contingencies, financing type, closing timeline, and buyer qualifications. Use your agent’s CMA and negotiation strategy for the best outcome.
    Sources: NAR multiple offer guidelines and Code of Ethics. NAR+1

  8. What seller costs should I expect at closing?
    Seller costs may include broker commission, title and closing fees, prorated property taxes/HOA dues, payoff of existing mortgage(s), and any agreed repairs or credits. Net proceeds equal sale price minus these costs and any outstanding liens. Your closing agent or title company provides a closing statement.
    Sources: CFPB on closing fees; NAR seller guides. Consumer Financial Protection Bureau+1

  9. Can I accept an offer contingent on the buyer selling their home?
    Yes — but such contingencies carry risk: timing uncertainty and potential failure. Sellers can set firm deadlines, require buyer obligations (e.g., listing buyer’s home with an agent), or accept backup offers to mitigate risk.
    Sources: NAR contingency guidance; Realtor handouts. realtor.org

  10. What is “as-is” and does it absolve me from liability?
    “As-is” indicates the seller won’t make repairs, but it doesn’t absolve disclosure obligations — you must still disclose known material defects. “As-is” limits repair obligations but doesn’t shield from fraud or failure to disclose. Consult your agent and attorney where large defects exist.
    Sources: NAR disclosure resources and legal guidance references. realtor.org

  11. Should I accept an all-cash offer or a financed offer?
    All-cash offers reduce financing risk and can close faster, but evaluate total offer strength: price, contingencies, closing timing, and buyer solvency. A well-underwritten financed offer from a pre-approved buyer can be equally strong. Your agent should verify funds and lender pre-approval.
    Sources: NAR guidance on offer strength; CFPB on mortgage pre-approval. realtor.org+1

  12. What are the tax implications of selling my home?
    You may exclude up to $250,000 of gain ($500,000 for married filing jointly) under IRC §121 if you meet the 2-out-of-5-year ownership/use test. Capital gains beyond that may be taxable; special rules apply for exemptions, business use, or rental history — consult a tax professional.
    Sources: IRS Topic 701 & Publication 523; US Code §121. IRS+1

  13. Can I sell at auction or list as For Sale By Owner (FSBO)?
    Yes. Auctions and FSBOs are lawful but require more seller effort and risk (pricing, marketing, contract handling, negotiation). Using a REALTOR® offers MLS exposure, professional negotiation, and regulatory/transaction management. Consider pros/cons and consult professionals.
    Sources: NAR FSBO resources; auction market guidance. NAR

  14. What is the role of the title company/escrow agent for sellers?
    The title company performs title search, issues title insurance, prepares closing statements, coordinates payoffs and deed recording, and handles escrow funds. Choose a reputable title/closing provider and review the seller’s closing statement before signing.
    Sources: ALTA; CFPB on settlement services. American Land Title Association+1

  15. How should I prepare for showings and open houses?
    Declutter, depersonalize, clean thoroughly, make cosmetic repairs, and highlight curb appeal. For safety, remove valuables and provide clear agent instructions for showings. Staging and professional photos can materially improve first impressions and buyer interest.
    Sources: NAR “Preparing to Sell” consumer guide; Realtor magazine staging tips. NAR+1

Warranty Info

Warranty Information

  1. How long is a contractor required to warranty work in Florida?
    Florida requires 1-year workmanship and 10-year structural defect protection under the statute of repose.

  2. Does Florida law require a written warranty?
    Not explicitly, but contractors must comply with the implied warranty of workmanlike construction. A written warranty protects both parties.

  3. What is a “latent defect”?
    A hidden defect that is not obvious at the time of completion, such as:
    Foundation movement
    Improper structural load support
    Hidden water intrusion in framing

  4. Are roofing installations covered?
    Yes. Roofing workmanship is covered for 1 year and shingle/roof system warranties typically last 20–50 years.

  5. Are mechanical, electrical, and plumbing issues covered?
    Yes. By Florida standards, MEP systems receive 1 year of coverage from the contractor.

  6. What if materials fail after a year?
    Manufacturer warranties apply and may extend 5–50 years depending on the product.

  7. Does the warranty cover hurricane damage?
    No. Florida law considers storm/hurricane damage an act of God, not a workmanship defect.

  8. What is the statute of repose, and why does it matter?
    It limits structural defect claims to 10 years, even if the defect is discovered later.

  9. Is normal wear and tear covered?
    No. Paint fading, minor cracks, and other natural aging are excluded.

  10. Does the homeowner need to maintain the home?
    Yes. Failure to maintain fixtures, seals, gutters, etc., can void coverage.

  11. What if another contractor touches the work?
    Modifications by others void the warranty for that part of the project.

  12. Do cosmetic issues count as warranty defects?
    Only if they result from failed workmanship, not preference-based issues.

  13. How are warranty claims handled?
    We respond within 48 hours and schedule inspection/repair as needed.

  14. When does the warranty begin?
    On substantial completion or issuance of CO, whichever comes later.

  15. Can warranties be transferred to a new homeowner?
    Yes. Structural warranties and manufacturer warranties are fully transferable in Florida.

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