Final Walkthrough Before Closing: Why It Matters in Florida Real Estate Transactions

When navigating the intricate world of real estate transactions, especially in Florida, understanding the FAR/BAR Residential Sale and Purchase Agreement and the “AS IS” Contract (the “Contracts”)  is crucial for both buyers and sellers. One of the most vital components that is often overlooked is the walkthrough before closing. This final opportunity before closing can make or break the deal, ensuring that the property meets all agreed-upon conditions and is free of unexpected surprises.

Real Estate Walkthrough Importance

1. Confirmation of Property Condition

The primary purpose of the final walkthrough before closing is to ensure that the property is in the same condition as when the contract was signed, excluding normal wear and tear. This inspection allows the buyer to confirm that any agreed-upon repairs, alterations, or improvements have been completed as promised by the seller. It also serves as a final opportunity to identify any damage that may have occurred since the initial inspection.

2. Ensuring Compliance with Contract Terms

The Contracts specify that the seller must deliver the property in a condition that reflects what was agreed upon in the contract. The walkthrough provides the buyer an opportunity to verify compliance with these terms. In particular, it allows the Buyer to confirm that any personal property and fixtures listed in the contract to convey are in fact at the property and will be conveyed at closing.

3. Prevention of Post-Closing Disputes

By performing a walkthrough, both parties have a clear understanding of the property’s state at the time of closing. This helps to avoid disputes after the transaction is completed. If issues arise, they can be addressed before closing, which reduces the risk of legal conflicts or costly repairs down the road.

Does the Timing of the Walkthrough Matter?

Per the Contracts, a Buyer can perform a walkthrough either on the day prior to the Closing Date or on the Closing Date prior to the time of Closing. It is highly beneficial that a buyer perform the walkthrough on the day of Closing to close the window of opportunity for a problem to arise. For example, let’s assume a buyer does the walkthrough the day before closing and the seller has previously vacated the property. Buyer finds the property condition to be satisfactory. The next day, buyer shows up to closing, signs their documents, and the transaction closes. Buyer then proceeds back to the property and finds that a pipe has burst and now the property is damaged. The main question is when did the pipe burst? Was it sometime after Buyer performed their walkthrough the day before closing or was it a few minutes after Buyer signed their documents and the transaction closed? This timing has important implications on who is responsible for the damage. If the Buyer had performed their walkthrough on the day of closing and the pipe had burst the day before Closing, the Buyer would be able to trigger the seller’s maintenance requirement provision of the contract which would hold the Seller responsible to repair the damage. This situation has actually occurred and is a prime example of why a buyer, if possible, should choose to perform their walkthrough on the day of closing.

Final Thoughts: Protecting Your Investment

As evidenced above, a well-timed walkthrough is crucial in Florida real estate transactions, ensuring the property meets expectations and identifying any issues before closing. This final step provides peace of mind, helping buyers make informed decisions and avoid surprises after the sale.

Author: Cameron Allen, Esq. with Berlin Patten Ebling