Entering into a real estate contract constitutes a significant commitment, both financially and personally. Even though the initial decision to buy or sell property may appear promising, your perspective can shift during the process. Therefore, it is vital to understand the procedures for exiting a Florida real estate contract in case you have a change of heart for any reason. In this article, we go over the causes, key aspects, and consequences of backing out of real estate contract.
What Are The Reasons For Revoking A Real Estate Contract In Florida?
Under Florida law, both buyers and sellers have the option to end a residential real estate contract and withdraw from the transaction without incurring any penalties by invoking the process of rescission. What this means is that essentially the contract becomes nullified, treating it as if it had never been in force or canceled. While some Florida real estate contracts may explicitly include recission clauses, the absence of such a clause in the original contract does not preclude the possibility of contract cancellation. There are various circumstances under which you may exercise your right to rescind a real estate contract in Florida, such as:
- When you have purchased property without legal access provided by the seller, rendering it hand landlock.
- In cases of real estate fraud, where you have been deceived or misled.
- When a title defect exists and cannot be rectified.
- If you were unaware of critical details before signing, due to a mistake or oversight.
What To Do As A Buyer Or Seller To Back Out Of Real Estate Contract?
There are specific legal steps to follow if you suspect that you have valid reasons to terminate your Florida real estate contract:
- Carefully review the contract to confirm the presence of legal grounds for contract cancellation.
- If the contract lacks a rescission provision, explore whether Floridaās common law offers basis for backing out of the contract.
- Seek the guidance of a reputable Florida real estate attorney who can assist in gathering necessary evidence for a successful case and offer dependable legal representation.
What Are The Potential Consequences Of Backing Out Of A Real Estate Contract?
Depending on the situation, in the most favorable scenario, there are no repercussions, while in the worst-case scenario, legal action can be taken.
If a buyer opts to withdraw their offer due to the seller’s inability to fulfill the contingency clauses within the stipulated timeframe, they can exit the signed contract without facing any penalties.
However, if all the contingencies are successfully fulfilled within the specified timeframe, and no reasonable grounds exist for the buyer to withdraw from the transaction, there is a possibility that they may risk losing their earnest money. This is referred to as “liquidated damages,” designed to compensate the seller for the period the property remained off the market.
In more extreme cases, the seller may consider pursuing a lawsuit for “specific performanceā. This involves a court order compelling the breaching party to fulfill the contract as if no breach occurred.
It’s essential to note that both the buyers and sellers may also decide not to proceed with the sale. In both scenarios, if a breach of the purchase agreement occurs, legal and financial consequences may follow.
We Can Help You Get The Outcome You Need
As a buyer or seller backing out of real estate contract, this can be a daunting process. However, with the help of attorneys who possess extensive expertise in guiding clients throughout this process, you can expect dedicated representation aimed at achieving the best possible outcome for your situation. Contact us today at (305) 921-0976, [email protected], or WhatsApp atĀ +1 (305) 921-0976 to schedule an initial consultation.
