Residential Buyers FAQ's

TOP 10 - Residential Buyers' Frequently Asked Questions (FAQ's)

Below find some of the top questions that address genuine consumer concerns before commitment. Some may be relevant for both Commercial and Residential buyers. Focused on Residential Buyers, this information is for Educational use only. It is provided to inspire thought and encourage dialogue to help you make the best decision possible as you pursue Purchasing your Property. These answers summarize general consumer information and verified sources and are considered reliable although not guaranteed as of September 2026. They are not legal, tax, lending, insurance, appraisal, engineering, environmental, title, association, or accounting advice; current law, contracts, property facts, lender rules, or professional advice control.

1. When will I be asked to sign a written buyer agreement?

Many real estate professionals must have a written buyer agreement before an in-person or live virtual home tour.  (This was made effective as of August 17, 2024 and is now a requirement for providing services of real estate.) A consumer can still ask about services or visit an open house independently before signing. The brokerage should explain the agreement before scheduling tours, not present it as a surprise at the door.

Source basis: NAR Written Buyer Agreements: https://www.nar.realtor/the-facts/consumer-guide-to-written-buyer-agreements

2. What parts of a buyer agreement can I negotiate?

Discuss the services, duration, geographic or property scope, exclusivity, termination provisions, and compensation. Compensation must be clear rather than open-ended, and it is negotiable. (In essence, aside from what is a requirement based on federal law, state law, and rules and regulations and office policy for compliance, almost anything is negotiable depending on the brokerage and their business structure.)

Source basis: NAR Written Buyer Agreements: https://www.nar.realtor/the-facts/consumer-guide-to-written-buyer-agreements | NAR Negotiating Written Buyer Agreements: https://www.nar.realtor/the-facts/consumer-guide-to-negotiating-written-buyer-agreements

3. How can the buyer-broker compensation be paid?

The buyer is responsible for the compensation described in the signed agreement, but the buyer may ask whether the seller or listing brokerage is willing to contribute. Any contribution and any remaining buyer obligation should be confirmed in writing. The brokerage should never promise that another party will pay before the transaction terms support that statement.

Source basis: NAR Written Buyer Agreements: https://www.nar.realtor/the-facts/consumer-guide-to-written-buyer-agreements | NAR Offers of Compensation: https://www.nar.realtor/the-facts/consumer-guide-offers-of-compensation

4. What is a mortgage preapproval, and does it force me to use that lender?

A preapproval is a lender evaluation based on information submitted at that time; terminology and review depth can vary by lender. It helps define a working price range and shows sellers that financing has been considered, but it is not final loan approval. A pre-approval normally does not require the buyer to use that lender, so buyers can compare options.

Source basis: CFPB Preapproval: https://www.consumerfinance.gov/owning-a-home/explore/get-a-preapproval-letter/

5. Why should I request and compare more than one Loan Estimate?

A Loan Estimate shows important loan terms, projected payments, closing costs, and other details. Comparing estimates from multiple lenders can reveal meaningful differences in interest rate, points, lender fees, cash to close, and assumptions. Buyers should compare the same loan type and ask why any item differs.

Source basis: CFPB Loan Estimate: https://www.consumerfinance.gov/owning-a-home/loan-estimate/ | CFPB Compare Loan Estimates: https://www.consumerfinance.gov/owning-a-home/compare/request-and-review-multiple-loan-estimates/

6. What is the difference between a home inspection and an appraisal?

An inspection evaluates the property condition for the buyer; an appraisal develops an opinion of value for its stated purpose, commonly for the lender. One does not replace the other. The contract controls inspection rights, deadlines, and remedies, so those terms should be understood before the offer is signed.

Source basis: CFPB Home Inspection: https://www.consumerfinance.gov/owning-a-home/close/schedule-a-home-inspection/ | CFPB Appraisals: https://www.consumerfinance.gov/ask-cfpb/what-are-appraisals-and-why-do-i-need-to-look-at-them-en-167/

7. What is earnest money, and when could I lose it?

Earnest money (Earnest Money Deposit or EMD)is a deposit handled according to the purchase contract and escrow instructions. Whether it is refundable depends on the contract, deadlines, notices, defaults, and contingencies. Buyers should never be told that a deposit is automatically safe or automatically lost; the actual agreement must be reviewed.

Source basis: NAR Escrow and Earnest Money: https://www.nar.realtor/the-facts/consumer-guide-escrow-and-earnest-money | NAR Contract Contingencies: https://www.nar.realtor/the-facts/consumer-guide-real-estate-contract-contingencies

8. Why must I review condominium or homeowners-association information quickly?

Association documents can affect use, rental rights, pets, vehicles, assessments, budgets, reserves, approval, and ongoing cost. Florida law can create delivery and cancellation rights for certain condominium transactions, but exact rights and deadlines depend on the facts and contract. The buyer should receive a document checklist and deadline tracker immediately after contract. (Understanding deed restricted community documents helps the Buyer evaluate if a property and/or location warrants pursuit based on their needs, lifestyle, and requirements.)

Source basis: Florida Statute 718.503 - Condominium Disclosures: https://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799%2F0718%2FSections%2F0718.503.html

9. What is the difference between lender title insurance and owner title insurance?

Lender title insurance protects the lender up to its covered interest. Owner title insurance protects the buyer, subject to policy terms and exceptions. Buyers should ask who selects and pays for title and settlement services under the contract and compare available coverage and costs instead of assuming the lender policy protects them personally. (Though almost always negotiable, local traditional responsibility for purchase of Owner Title Insurance falls on the Buyer in Collier County and the Seller in Lee County and other counties.)

Source basis: CFPB Lender Title Insurance: https://www.consumerfinance.gov/ask-cfpb/what-is-lenders-title-insurance-en-163/ | CFPB Owner Title Insurance: https://www.consumerfinance.gov/ask-cfpb/what-is-owners-title-insurance-en-164/

10. When should I receive the Closing Disclosure, and what should I verify?

For most covered mortgage loans, the lender must provide the Closing Disclosure at least three business days before scheduled closing. Compare it with the latest Loan Estimate and contract, confirm the loan terms and cash to close, and ask about unexpected changes immediately. Separately verify wire instructions through a trusted channel before sending funds.

Source basis: CFPB Closing Disclosure: https://www.consumerfinance.gov/owning-a-home/closing-disclosure/ | CFPB Mortgage Closing Scams: https://www.consumerfinance.gov/archive/blog/mortgage-closing-scams-how-protect-yourself-and-your-closing-funds/

We know you'll have more questions.  Contact us using the link below for more guidance as you pursue your Real Estate Journey!