In Florida, a breach of contract after closing can entail significant financial consequences for the party not responsible for the breach. Navigating the challenging real estate market is tough when all parties adhere to the rules, but it becomes even more challenging when one party breaches the contract. In such situations, securing the necessary remedies becomes of utmost importance.
Breach of Contract After Closing in Florida
In Florida, a real estate contract breach happens when one of the contract parties fails to meet their obligations as outlined in the agreement. The possibilities for such violations are as diverse as the damages; therefore, is vital to ensure you meet the necessary criteria for identifying a breach.
Breaches in Property Rental Agreements
Legal disputes originate from breaches related to property usage, lease termination, and responsibilities for repairs. Breaches frequently arise in both residential and commercial property rental agreements.
Breaches in Property Purchase Agreements
Similarly, this kind of breaches often lead to legal action. Those can be triggered by disagreements concerning closing costs, buyer’s remorse, or issues with the property failing inspection.
Essential Components To Establish a Breach of Contract After Closing
Even though the required components to establish a breach of contract may vary by jurisdiction, there are four elements crucial to build a strong case resulting in a successful breach of contract lawsuit. These are:
- The presence of a valid contract.
- Proof of fulfilling your contractual obligations or, alternatively, justifiable reasons for not doing so.
- Evidence demonstrating the defendant’s failure to fulfill their contractual obligations
- Evidence substantiating that you suffered damages as a direct result of the defendant’s breach.
Four Ways A Breach of Contract After Closing in Florida Can Occur
Outlined below are the primary methods through which contracts in Florida can be breached.
- Minor Breach
A partial, or minor, breach happens when one of the contractual parties fails to fulfill a specific aspect of the agreement, even though the other party ultimately receives what was stipulated in the contract. In this breach, proving damages can be challenging, as financial losses are seldom incurred. Imagine a scenario in which contractor is said to use a particular material in a house. If the contractor did not use that particular material because it became unavailable and used other, then a minor breach arises because the builder did not adhere what the contract specified. Nevertheless, the damages are insignificant, and the remedy may only involve nominal compensation.
- Actual Breach
An actual breach occurs when one of the parties involved fails to accomplish some or all of their contractual obligations for any reason. For instance, if a homeowner, who had previously agreed to sell their property by signing a contract, suddenly decides not to proceed with the sale, it constitutes a substantial breach because it can lead to severe harm for the aggrieved party.
- Material Breach
A material breach occurs when one party to a contract receives something substantially different from what was originally agreed upon. Establishing damages is usually straightforward because one party undeniably incurs losses. Consider a scenario where the parties agreed that the seller would install a new ceiling before the closing date. However, the seller fails to do it. If the ceiling is in poor condition and a tornado subsequently damages the property, the harm resulting from that breach is extensive.
- Anticipatory Breach
An anticipatory breach arises when one party to the contract has conveyed implicitly or through their conduct that they have no intention of fulfilling their obligations. Therefore, an actual breach has not transpired but is on the verge of happening. For instance, one week before the deadline, it becomes evident that the contractor will not complete a house on a specific date. The time delay may lead to significant damages.
Florida Real Estate Contract Breach Remedies
When a real estate contract in Florida is breached, the appropriate remedies depend on the extent of the damages incurred and the potential for restoring the injured party to a favorable position. Here are some of the commonly sought remedies for a breach of contract after closing:
Parties who suffer losses due to a breach of a real estate contract often seek monetary damages. For instance, if a buyer withdraws from a purchase, the money damages may be calculated as the difference between the contract purchase price and the current market value depending on the jurisdiction.
Specific Performance is typically granted when monetary damages cannot compensate for the breach. For instance, if the property in question is unique and in an irreplaceable place, a buyer may pursue this legal remedy.
This remedy refers to a clause in the contract that contains an agreed-upon amount that the parties accept as damages in case of a breach.
Occasionally, the most suitable remedy for a real estate contract breach is its termination. In such instances, the buyer is refunded the deposit and reimbursed for all expenses accrued during the failed transaction.
Get in Contact with an Experienced Real Estate Attorney in Florida
Handling a breach of contract after closing is a complex endeavor, and it is crucial to secure legal representation to safeguard your interests and minimize potential damages. To take the first step in addressing your situation, please don’t hesitate to contact us today. You can call us at (305) 921-0976, email us at [email protected], or reach us via WhatsApp at +1 (305) 921-0976.