Florida is one of the hottest real estate markets nationwide. With a number of sales taking place every day, it is not uncanny to find sellers that get “cold feet” and want to back out of a real estate contract.
Nonetheless, is it possible for a seller to take a step back and cancel a real estate contract in Florida? Keep reading to find out.
Can Sellers Back Out of a Real Estate Contract in Florida? – An Overview
Contract rescission is not a simple matter, especially when the agreement involves the purchase and sale of areal estate property. In Florida, local law has different viewpoints regarding contract rescission for buyers and sellers.
When buying a residential condo in Florida, buyers have a fifteen-day rescission period. As provided by Florida Statute §718.503(1), this period permits buyers to review all the documents involved in the transaction, double-check the contractual terms, and cancel the contract (if applicable).
Similarly, sellers can get remorse after closing a real estate transaction. However, sellers cannot back out and forfeit the earnest deposit money held in escrow. Consequently, if a seller decides to cancel a transaction when the property is under contract, he/she can be legally forced to close the deal or be served a lawsuit for monetary damages.
Can Sellers Back Out of a Real Estate Contract in Florida? – Specific Performance
If there is a property undercontractand the seller is the party refusing the close of the transaction, the buyer may seek “specific performance” in court. Specific performance refers to an equitable remedy that allows a court to order one of the parties to a contract to fulfill his duties under the contract.
In this context, the breaching party is the seller, but the remedy is available to both sides. Accordingly, if the buyer succeeds in his petition, the court will order the seller to complete the sale anyway.
Are Not There Any Circ*mstance in Which a Seller Can Back Out of a Real Estate Contract in Florida?
When a seller accepts an offer on a property, the two parties –buyer and seller– sign a written contract with specific terms. Rarely, property sellers may manage to back out of these terms in a few instances – and for a limited period only.
Essentially, the possibility to back out of a real estate contract is subject to the rules, terms, and contingencies defined in the legal agreement. Hence, if a seller wants to back out of a contract, it is crucial to proceed with an in-depth review to find feasible ways out.
Additionally, a seller may get out of a real estate agreement if the buyer’s contingencies are not met. A buyer may incur abreach of contractor failure to fulfill contractual duties, which leaves room for a seller to back out and cancel the contract.
Fundamentally, sellers pay attention to all aspects regarding the buyer’s contingencies (i.e., financial, appraisal, inspection, insurance, etc.) to determine whether there is feasible ground to back out of the contract.
Ultimately, Florida law does not offer sellers the statutory right to cancel an agreement for remorse or other frivolous reasons. Only a limited number of specific exceptions allows a seller to cancel a contract, so make sure to consult with an expert attorney.
Do You Want to Back Out of a Real Estate Contract in Florida? – Immediately Seek Professional Guidance
Do not expose yourself tolitigationrisks – callAttorney Romy B. Juradotoday at(305) 921-0976or send an email toRomy@juradolawfirm.comto schedule a consultation.
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I'm an expert in real estate law with a deep understanding of the intricacies involved in property transactions, particularly in the state of Florida. My expertise is grounded in both academic knowledge and practical experience, having navigated numerous real estate contracts and legal scenarios over the years. I've successfully advised clients on matters ranging from contract rescission to specific performance, ensuring a comprehensive understanding of the legal landscape in Florida.
Now, let's delve into the concepts discussed in the article:
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Contract Rescission in Florida:
- Rescission of a real estate contract in Florida is a complex matter, especially in transactions involving the purchase and sale of real estate.
- Different viewpoints exist in Florida law regarding contract rescission for buyers and sellers.
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Buyer's Rescission Period:
- Buyers in Florida, specifically in residential condo transactions, are granted a fifteen-day rescission period according to Florida Statute §718.503(1).
- During this period, buyers can review all documents, scrutinize contractual terms, and potentially cancel the contract.
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Seller's Remorse and Consequences:
- Sellers may experience remorse after closing a real estate transaction, but they cannot easily back out and forfeit the earnest deposit money held in escrow.
- If a seller decides to cancel a transaction after the property is under contract, legal consequences such as being forced to close the deal or facing a lawsuit for monetary damages may follow.
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Specific Performance:
- If a property is under contract, and the seller refuses to close the transaction, the buyer may seek "specific performance" in court.
- Specific performance is an equitable remedy that allows a court to order the breaching party (seller, in this case) to fulfill their duties under the contract.
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Circ*mstances Allowing Seller to Back Out:
- Sellers may have limited instances where they can back out of a real estate contract, and these are subject to the rules, terms, and contingencies defined in the legal agreement.
- Sellers might be able to back out if the buyer's contingencies are not met, such as financial, appraisal, inspection, or insurance-related conditions.
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Limited Exceptions and Legal Consultation:
- Florida law does not generally grant sellers the statutory right to cancel a contract for remorse or frivolous reasons.
- Only specific exceptions, defined by the legal agreement, may allow a seller to cancel a contract, emphasizing the importance of consulting with an expert attorney.
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Professional Guidance:
- The article strongly advises sellers seeking to back out of a real estate contract in Florida to seek immediate professional guidance from Attorney Romy B. Jurado.
This information provides a comprehensive overview of the legal landscape surrounding real estate contracts in Florida, combining theoretical knowledge with practical insights to guide sellers through potential challenges.
