Demystifying Page 7 of the Florida "AS IS" Contract - Prorations, Papers, and Paying Up

Now that Page 6 has cleared the legal title and public records, the standard Florida Realtors/Florida Bar "AS IS" Contract moves into the operational mechanics of the transaction itself. Welcome to Page 7. This page houses Section 18, Standards F through K, which establishes how taxes are split, how closing documents are prepared, and how escrow funds are legally safeguarded.

Jeff's Bottom Line Up Front (BLUF): Page 7 is the transaction's accounting and escrow engine. It ensures that neither the buyer nor the seller pays a dollar more than their fair share of property expenses, while setting strict rules for how closing documents are executed and how earnest money deposits are protected under state law.

Standard F & Standard K: Tax Prorations and the Calendar Split

Property taxes, HOA fees, and municipal utility bills don't stop accruing simply because a home is under contract. Standard F dictates how these ongoing expenses are divided down to the exact day of closing.

• The Proration Rule: Taxes are prorated based on the current year’s tax bill. The seller is responsible for taxes up to, but not including, the day of closing. The buyer assumes responsibility starting on the day of closing.
• The November Discount Allocation: In Florida, property taxes are paid in arrears and become due in November, with discounts for early payment. Standard F explicitly accounts for these discounts, ensuring that the tax credit given to the buyer at closing accurately reflects the net tax burden.
• Re-proration Protection: If closing occurs before the current year's tax bill is officially released by Broward County, taxes are estimated based on the previous year’s rate. Standard F grants either party the right to request a formal "re-proration" once the actual tax bill arrives in November.

2026 Page 7 Escrow & Proration Q&A: Protecting Your Funds

Q: Who holds my earnest money deposit, and what protects it under Standard S/T?

A: Escrow deposits must be held in a dedicated, FDIC-insured escrow account by a licensed title company, real estate broker, or attorney. Standard S dictates that funds must clear (become "Collected Funds") before closing can occur. The escrow agent is bound by strict state fiduciary rules and cannot release funds to either party without mutual written agreement or an official court order.

Q: What happens if there is a dispute over the escrow deposit?

A: If a transaction falls apart and both sides demand the deposit, the escrow agent cannot choose a winner. Under Florida law, they must declare an "escrow dispute." The funds are then submitted to court via an Interpleader action, or referred to FREC (Florida Real Estate Commission) for arbitration, leaving the legal costs to be paid out of the disputed deposit.

Q: What documents is the seller contractually required to sign on Page 7?

A: Under Standard I, the seller must execute a Statutory Warranty Deed, a Bill of Sale for personal property, a No-Lien Affidavit (promising no unpaid contractors exist), an FIRPTA Affidavit (satisfying federal tax withholding rules), and a Closing Statement.

Standard G, H, & I: Document Preparation and Closing Logistics

The middle portion of Page 7 establishes how paperwork and closing mechanics are handled across the finish line:

• Closing Location & Costs: Standard H mandates that closing occurs in the county where the property is located. Closing documents can be executed digitally or via mobile notary, but the legal jurisdiction remains local.
• Expense Adjustments: Standard J clarifies that any unpaid municipal utilities, special assessment installments, or association dues accrued before closing must be satisfied out of the seller's proceeds at the closing table.

CMV's Sellpro+ Strategy: Flawless Closing Audits

Under the CMV Economic Model, financial leaks during the final week of a transaction destroy net proceeds. Through our proprietary Sellpro+ methodology, we audit Page 7 calculations well before the closing disclosure is finalized.

When we represent sellers or buyers in Davie, Pompano Beach, or Cooper City, we cross-reference the preliminary settlement statement against the local property appraiser's tax ledger weeks in advance. We verify that tax prorations, HOA estoppel credits, and municipal utility cut-offs align to the exact penny—ensuring our clients walk into closing day with zero financial friction.

Jeff's Perspective

Most buyers and sellers gloss over Page 7, assuming the title company will handle the math automatically. While title companies are professionals, line-item tax prorations and utility credits can easily be miscalculated if recent millage rate changes or association assessment schedules are missed.

How would you feel if you closed on a home in November, only to realize your tax proration credit was short by $2,500 because your agent didn't audit the re-proration clause on Page 7? Just imagine entering closing day with an audited settlement sheet where every single penny of tax credit, escrow holding, and document fee is accounted for.

The bottom line is: Page 7 keeps the financial accounting honest. Understand your prorations, protect your escrow deposit, and ensure your closing documents are audited with precision.

What’s Coming Next on Page 8...

With the closing mechanics and escrow rules established, the contract shifts to what happens when things go wrong. On Page 8, we will break down Default and Dispute Resolution—covering liquidated damages, attorney fees, and the high-stakes consequences of a breach of contract. Stay tuned!

Want to make sure your closing disclosure and prorations are completely accurate? Schedule a Settlement Statement Audit with Our Team today, and let's protect your financial bottom line.