When two parties sign a purchase and sales contract, they must perform under the terms and clauses in the agreement. If a buyer fails to meet the obligations outlined in the contract, the seller must consider the legal options available before taking the next step.
Can a seller sue a buyer for backing out of a contract in Florida? Read on to find out.
Can Seller Sue Buyer for Backing Out in Florida? – The Basic Elements
Depending on the circumstances involved in the case, a seller may have the right to sue a defaulting buyer for a breach of contract. Florida law requires a seller to choose between one of the alternative remedies available, which are:
- To close the transaction
- Order the buyer to perform a specific action under the agreement, or
- Seek money damages for the breach
If the seller decides to sue the buyer for breach of contract, he or she is opting for a “remedy at law.” If the seller decides to compel the buyer to close the property’s transaction, he or she is opting for a “remedy in equity.”
Before filing a lawsuit against a defaulting buyer, the seller must consult with an expert attorney to identify the best solution. Considering it is not possible to seek multiple remedies, the seller must choose wisely.
Florida Contract Law – Why is it Crucial to Review Real Estate Contracts?
In many cases, real estate contracts feature terms specifying the remedies available in case the buyer backs out from the agreement. Florida real estate contracts often have these provisions, but it is fundamental to review any document before signing it.
If you are selling a property in Florida, the best approach is to work with an experienced attorney to draft a solid agreement tailored to your case and not rely on the default provisions of ready-to-fill forms.
With the guidance of a legal advisor, one can guarantee reasonable communication with the buyer to ensure both parties understand their contractual obligation and identify whether it is a good idea to close the transaction.
Can Seller Sue Buyer for Abandonment of Contract in Florida?
Determining whether to sue a buyer for abandonment of a contract requires attention to detail. In many cases, it is clear to both parties that the transaction is not going to materialize.
The situation is different when the seller is not aware of the buyer’s intentions. If a buyer does not fulfill any contractual obligation or shows no effort to close the deal, the seller may have grounds to sue for abandonment of contract.
As provided by Florida law, the state’s Supreme Court has recognized that a buyer who takes too long without communicating with the seller about his or her lack of interest in the deal can be sued for abandonment of contract.