Buying a home is exciting. Reading contracts? Not so much.
Unfortunately, some of the most expensive mistakes in real estate happen because someone didn’t carefully read the fine print.
I was recently representing a buyer purchasing a home in Central Florida. During the inspection process, we discovered that the property’s water heater was 22 years old. If you’ve been following the insurance market in Florida, you already know that many insurance companies are becoming increasingly strict about older systems and components. In many cases, water heaters over 10 years old raise concerns, and units over 20 years old can become a major obstacle when trying to secure homeowners insurance.
The seller’s position was that the property was being sold “As-Is.”
And technically, they were right.
However, there is a difference between an As-Is sale and a property condition issue that could prevent a buyer from obtaining insurance. If a buyer cannot obtain insurance, financing often becomes impossible, which means the transaction can fall apart for everyone involved.
After some negotiation, both parties agreed to split the cost of replacing the water heater.
Problem solved, right?
Not quite.
Why Specific Language Matters
Based on years of experience, I suspected the seller might choose the least expensive replacement available. There is nothing inherently wrong with saving money, but the home originally had a 66-gallon water heater. Most replacement units available today are 50 gallons.
That difference matters.
A larger household may rely on the additional capacity, and my buyer was purchasing the home with the expectation of receiving something comparable to what was already there.
So when I drafted the addendum, I didn’t simply write “seller to replace water heater.”
Instead, I specifically stated:
Seller shall replace the water heater with a NEW 66-gallon water heater or better.
Notice the word “new.”
Notice the capacity requirement.
Notice the phrase “or better.”
Every word was intentional.
Some people may think that level of detail is excessive. I disagree.
The entire purpose of an addendum is to remove assumptions and eliminate misunderstandings.
The Weekend Surprise
Before the addendum had even been fully finalized and returned, the sellers decided to move forward with replacing the water heater.
Unfortunately, they installed a 50-gallon unit.
When we pointed out that the agreement specifically called for a 66-gallon unit or better, the response was interesting.
The listing agent told me, “You never said that in your email.”
My response was simple:
“I didn’t put it in an email. I put it in the signed addendum.”
The agent then explained that their estimate was based on a 50-gallon replacement.
Again, that wasn’t relevant.
The contract controls the transaction—not an estimate, not a conversation, and not an assumption.
The signed addendum clearly outlined what had been agreed upon.
Contracts Don’t Read Themselves
One of the biggest misconceptions in real estate is that contracts are just paperwork.
They are not.
Contracts are instructions.
Contracts are expectations.
Contracts are protection.
When an addendum is written properly, everyone knows exactly what is expected. When language is vague, misunderstandings occur. Sometimes those misunderstandings are minor. Sometimes they cost thousands of dollars.
In this particular situation, we ultimately worked everything out. The sellers weren’t thrilled with me, but that’s okay.
I don’t work for the seller.
I work for my buyer.
My responsibility is to protect my client’s interests and make sure they receive what was negotiated.
The Lesson for Buyers and Sellers
Whether you’re buying or selling a home in Ocoee, Winter Garden, Windermere, Clermont, Orlando, Gotha, Apopka, Mount Dora, Minneola, or anywhere else in Central Florida, remember this:
Read every page.
Read every addendum.
Read every amendment.
Don’t assume.
Don’t skim.
Don’t rely on what someone “thought” was agreed upon.
The details matter.
And sometimes a single line in an addendum can make all the difference.
If you’re considering buying or selling a home and want someone who pays attention to the details, I’d be happy to help.
Because when it comes to real estate contracts, the fine print isn’t fine at all.
It’s often the most important part.
Helpful Resources
Internal Links:
External Resources:
Contact Information
David Dorman
Broker Associate, CENTURY 21 Carioti
2747 Maguire Road
Ocoee, FL 34761
Phone: 407-948-8295
Email: david@daviddorman.com
Website:
“When you hire David Dorman you GET David Dorman.”
Buying a home is exciting. Reading contracts? Not so much.
Unfortunately, some of the most expensive mistakes in real estate happen because someone didn’t carefully read the fine print.
I was recently representing a buyer purchasing a home in Central Florida. During the inspection process, we discovered that the property’s water heater was 22 years old. If you’ve been following the insurance market in Florida, you already know that many insurance companies are becoming increasingly strict about older systems and components. In many cases, water heaters over 10 years old raise concerns, and units over 20 years old can become a major obstacle when trying to secure homeowners insurance.
The seller’s position was that the property was being sold “As-Is.”
And technically, they were right.
However, there is a difference between an As-Is sale and a property condition issue that could prevent a buyer from obtaining insurance. If a buyer cannot obtain insurance, financing often becomes impossible, which means the transaction can fall apart for everyone involved.
After some negotiation, both parties agreed to split the cost of replacing the water heater.
Problem solved, right?
Not quite.
Why Specific Language Matters
Based on years of experience, I suspected the seller might choose the least expensive replacement available. There is nothing inherently wrong with saving money, but the home originally had a 66-gallon water heater. Most replacement units available today are 50 gallons.
That difference matters.
A larger household may rely on the additional capacity, and my buyer was purchasing the home with the expectation of receiving something comparable to what was already there.
So when I drafted the addendum, I didn’t simply write “seller to replace water heater.”
Instead, I specifically stated:
Seller shall replace the water heater with a NEW 66-gallon water heater or better.
Notice the word “new.”
Notice the capacity requirement.
Notice the phrase “or better.”
Every word was intentional.
Some people may think that level of detail is excessive. I disagree.
The entire purpose of an addendum is to remove assumptions and eliminate misunderstandings.
The Weekend Surprise
Before the addendum had even been fully finalized and returned, the sellers decided to move forward with replacing the water heater.
Unfortunately, they installed a 50-gallon unit.
When we pointed out that the agreement specifically called for a 66-gallon unit or better, the response was interesting.
The listing agent told me, “You never said that in your email.”
My response was simple:
“I didn’t put it in an email. I put it in the signed addendum.”
The agent then explained that their estimate was based on a 50-gallon replacement.
Again, that wasn’t relevant.
The contract controls the transaction—not an estimate, not a conversation, and not an assumption.
The signed addendum clearly outlined what had been agreed upon.
Contracts Don’t Read Themselves
One of the biggest misconceptions in real estate is that contracts are just paperwork.
They are not.
Contracts are instructions.
Contracts are expectations.
Contracts are protection.
When an addendum is written properly, everyone knows exactly what is expected. When language is vague, misunderstandings occur. Sometimes those misunderstandings are minor. Sometimes they cost thousands of dollars.
In this particular situation, we ultimately worked everything out. The sellers weren’t thrilled with me, but that’s okay.
I don’t work for the seller.
I work for my buyer.
My responsibility is to protect my client’s interests and make sure they receive what was negotiated.
The Lesson for Buyers and Sellers
Whether you’re buying or selling a home in Ocoee, Winter Garden, Windermere, Clermont, Orlando, Gotha, Apopka, Mount Dora, Minneola, or anywhere else in Central Florida, remember this:
Read every page.
Read every addendum.
Read every amendment.
Don’t assume.
Don’t skim.
Don’t rely on what someone “thought” was agreed upon.
The details matter.
And sometimes a single line in an addendum can make all the difference.
If you’re considering buying or selling a home and want someone who pays attention to the details, I’d be happy to help.
Because when it comes to real estate contracts, the fine print isn’t fine at all.
It’s often the most important part.
Helpful Resources
Internal Links:
External Resources:
Contact Information
David Dorman
Broker Associate, CENTURY 21 Carioti
2747 Maguire Road
Ocoee, FL 34761
Phone: 407-948-8295
Email: david@daviddorman.com
Website:
“When you hire David Dorman you GET David Dorman.”