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 a real 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 under contract and 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 Circumstance 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 a breach of contract or 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 to litigation risks – call Attorney Romy B. Jurado today at (305) 921-0976 or send an email to [email protected] to schedule a consultation.
