Model Homes Sale Policies and Procedures
Thank you for your interest in the Lotus Palm Model Homes! The Model Homes are being sold as described below. If you are interested in purchasing a Model Home or if you have any questions, please contact the Lotus Palm Sales Office at 561-585-8800 to speak with a Sales Associate.
Considerations When purchasing a Model Home, please make sure you take into consideration the following factors, among everything else:
- Closing – Except for the Mallorca and Capri Model Homes (which are estimated to close on March/April 2025), closing on the purchase of a Model Home is estimated to be April/May 2025, subject to the terms and provisions of the Purchase Contract. Notwithstanding such estimated closing dates, Seller, in Seller’s sole discretion and without compensation to you, shall have the right to postpone the Actual Closing Date for one (1) period of up to three (3) months by giving notice of such election to Purchaser thirty (30) days prior to the then estimated closing date, as same may be extended.
- No Financing Contingency – the Purchase Contract will be on an all-cash basis, meaning there will be no contingency for qualifying or obtaining a loan. Your entire deposit under the Purchase Contract (i.e., 10% of the Total Purchase Price) will not be refundable if you are unable to close on a loan.
- Financed Amount – even though the purchase contract will not be contingent on financing, should you elect to finance your purchase of the Home, the loan amount may not exceeds 50% of the Total Purchase Price.
- Appraisals – due to the unique nature of, among other things, the features, decorations, fixtures and furnishings included in the Model Homes, any appraisal amount (whether for financing or other purposes) may be for an amount less than the Total Purchase Price. If the Model Home does not appraise, understand that there will be no contingency in the contract, the Total Purchase Price will not be reduced, and you will be obligated to close on the Model Home regardless of the amount reflected in any appraisal.
How to Purchase a Model Home
- $10,000 Refundable Deposit Deposit checks should be made payable to Lotus Palm (NY and NJ residents speak to your sales associate for the required alternative payee) and must be from an account in the actual name of the buyer. No third-party checks and no credit cards will be accepted - including trust checks, company checks, “in trust for” or other non-personal checks.
- Reservation Paperwork, which will include: (a) a Reservation Deposit Form, (b) an Acknowledgment Regarding Pre-Qualification Requirement, and (c) a Disclosure Summary for the Lotus Palm Homeowners Association, Inc. . These forms are available from your Sales Associate.
- Model Home Proof of Funds Website Link. Once you deliver to your Sales Associate the $10,000 refundable Deposit and executed Reservation Paperwork, you will be provided a secure website upload link which you must use to provide your proof of funds as outlined below.
Proof of Funds Required Prior to Contract Execution; Execution of Purchase Contract; Closing Date.
- As a prerequisite and prior to your execution of the Purchase Contract, proof of funds will be required to be submitted to Seller no later than 48 hours after receipt of the website link described above to show your ability to pay the Total Purchase Price at closing for the Model Home. This can be accomplished by either: (i) for cash purchasers, providing copies of bank and/or investment statements to show proof of the cash to close, OR (ii) for buyers using mortgage financing, providing Seller a mortgage pre-approval from GLFinancial Services (or other institutional lender of your choosing) for no more than 50% of the Total Purchase Price of the Model Home and providing copies of bank and/or investment statements to show proof of cash funds for the remaining 50% required to close, OR (iii) for buyers using the proceeds from the sale of a home or other property, providing Seller with a true, correct and complete copy of the executed purchase contract or other documentation to determine equity in the home and providing copies of bank and/or investment statements to show proof of cash funds for 50% of the Total Purchase Price required to close. You can provide any or all of the above, but together, the proof of funds need to show your ability to pay the Total Purchase Price at closing for the Model Home.
- After your proof of funds is reviewed and accepted by Seller, you will need to enter into Seller’s Purchase Contract within 24 hours. You will receive a sample copy of the Purchase Contract and homeowners’ association documents at the time you submit your executed Reservation Paperwork, and the $10,000 Deposit. This will provide you an opportunity to review and become familiar with them prior to your execution of the Purchase Contract.
- Even if your proof of funds contemplates obtaining financing, the Purchase Contract will be written as a cash transaction – there will be no mortgage contingency. This means that you will still be required to close on the purchase of the Model Home and your deposit will not be refundable if you are unable to obtain or close on a mortgage loan to purchase the Model Home for any reason.
- The Purchase Contract will require that a deposit of ten percent (10%) of the Total Purchase Price (less the $10,000 deposit you submitted) be paid at the time of execution.
Broker Lotus Palm will be cooperating with licensed real estate brokers provided they are properly registered at the Lotus Palm sales office and they enter into Seller’s Broker Participation Agreement at the time of execution of your Purchase Contract. Brokers will be eligible to be paid 3% of the Total Purchase Price of the Model Home subject to the terms and conditions of the Broker Participation Agreement. Brokers may not refund, rebate, or otherwise reimburse buyer any portion of the commission earned.
No Investor Policy You may only purchase one lot in Lotus Palm, and you must intend to purchase the home as your primary residence in Florida (but it does not necessarily need to be your primary residence). The Purchase Contract is not assignable or transferrable. The Reservation Deposit Form and Purchase Contract will require you to make certain representations regarding your purchase and will contain certain agreements to limit your ability to list or advertise the home for sale and/or lease prior to closing. In addition, in the event you sell and/or lease the home within one (1) year after closing, 100% of the gain realized from such sale and/or all of the rents received pursuant to a lease shall be paid to the Seller from the proceeds of such sale and/or lease, except for a sale and/or lease resulting from a hardship event that is documented and approved in writing by Seller (i.e., divorce, job transfer out of the area, or other reason acceptable to Seller). Any breach will be considered a default under the Purchase Contract which will provide the Seller with the right to terminate the Purchase Contract and retain all deposits and other monies paid by you. These restrictions and obligations will be contained in a deed restriction recorded at closing. A summary of the No Investor Policy is included with the reservation documents.