It is not uncanny to find situations involving buyer’s remorse. Occasionally, individuals may change their minds about a purchase and decide to cancel the transaction. In Florida, there are state and federal laws that permit consumers to cancel a transaction, which is referred to as the “cooling-off rule.”
However, is the “cooling off rule” available for buyers who want to cancel a real estate transaction in Florida? Keep reading to find out.
Cooling Off Rule Florida Real Estate – An Introduction
The “cooling off rule” is provided both by the Federal Trade Commission and Florida state law. Accordingly, there are occasions in which the law permits a consumer to change his/her mind after purchasing something and proceed to cancel the transaction.
In essence, the “cooling-off rule” provides that consumers are entitled to a three-day cooling-off period if they sign a contract for services to be rendered continuously in the future (e.g., service subscription).
Additionally, consumers are entitled to cancel a contract for future services if they can no longer receive the services, or the services are no longer available as they were offered originally.
The rule also encompasses home solicitation sales, also known as “door-to-door” sales. In this context, consumers have a three-day right to cancel purchases of goods or services that occurred during home solicitation sales. These specific provisions apply for purchases wherein the purchase price surpasses $25.
Nonetheless, it is crucial to note that not all types of sales are subject to the “cooling off rule.”
Is it Possible to Cancel a Florida Real Estate Transaction Based on the Cooling Off Rule?
Every rule has its exception, and the “cooling off rule” is not different. Accordingly, not all sales are covered, even when they occur in places that the rule would normally cover.
In Florida, the “cooling off rule” does cover sales that involve real estate, insurance, securities, or artwork sold at fairs, shopping malls, civic centers, and schools. Additionally, no sales involving motor vehicles occurred at temporary locations are covered by the rule.
Under Florida common law, no real estate contract may be canceled after closing, unless there is an explicit right to cancel in the contract or there are other grounds that may permit a buyer/seller to rescind the contract.
Canceling a Real Estate Contract in Florida – Feasible Solutions
When taking a closer look at Florida contract law, a buyer and/or seller may terminate a real estate contract without penalty. However, a rescission may happen only under specific circumstances.
As expressed by Florida case law, a contract rescission happens when a court determines the contract to have “no force and effect from the beginning.” (Borck v. Holewinski, 459 So.2d 405, 405 (Fla. 4th DCA 1984)). Accordingly, the contract is canceled.
Most standard real estate contracts in Florida provide a “Force Majeure” provision, which waives the seller or buyer to perform under the contract if circumstances beyond their control arise, rendering performance inadvisable, illegal, or impossible.
- Common examples of situations that may trigger a “Force Majeure” claim in Florida include
- Hurricanes, floods, earthquakes, fires, extreme weather, or other Acts of God
- Extreme transportation delays (under specific circumstances)
- Wars, insurrections, or acts of terrorism
Other issues that may serve as a ground to cancel a real estate contract include unsolvable title defects (under specific circumstances), fraud, or material mistakes affecting the contract.
Do You Want to Rescind Real Estate Contract in Florida? – Seek Professional Guidance
Determining whether a real estate contract may be canceled requires detailed legal analysis. Waste no time – have your case assessed by Attorney Romy B. Jurado. Contact us today by calling (305) 921-0976 or emailing [email protected] to schedule a consultation.
