April 12, 2020
While many real estate transactions go off without any significant hitches, there is a possibility a buyer might cancel a contract. In the State of Florida, specific conditions must exist for a buyer to be able to remove their contractual obligation.
A buyer who purchases a property “AS IS” has the right to cancel a contract during the inspection period. This option must be exercised in writing before the expiration of the inspection period. It can be delivered by mail, personal delivery or electronic media (emails and PDFs both fulfill the “written” criteria necessary to cancel a contract). Often, a buyer’s agent is the person who sends the seller notice.
Military members are permitted to terminate a contract if they receive a permanent change of order (PCS) that brings them a distance of 35 miles or more from the property’s location. To cancel the contract, the military member must provide documentation (usually official orders) to the seller or mortgagor. Another acceptable form of documentation is a written verification signed by the military member’s commanding officer.
In some instances, either party may cancel if the contract includes specific contingencies to allow them to do so. When this occurs, there are usually special steps to follow to activate this cancelation option. Reasons people cancel include but are not limited to:
Most contingencies have a specific time frame associated with cancelation. Buyers should always talk to their agent about any requirements associated with specific reasons for cancelation. Buyers already in a contract will want to talk to a real estate attorney.
It’s often acceptable for buyers purchasing property in Florida to cancel within three days of signing a contract for any reason, including “cold feet.” However, the specific reason for cancelation must be stipulated in the original contract. The Florida Realtors’ standard contract form doesn’t automatically contain this. Buyers will have to ensure a 3-day option is added to their contract before they sign.
A real estate contract is a legal and binding document. Buyers should also understand, that they may or may not receive their deposit back depending upon the contractual language used associated with the reason for cancellation. If you have questions about the legal aspects of your situation, you should always consult with your agent and/or a real estate attorney before signing on the dotted line—either as a buyer or a seller.
April 8, 2024
To help you squeeze every bit of storage from your patio, here are some ideas to try.
April 8, 2024
These are some excellent options for adding color and variety to your shade garden.
April 6, 2024
A great way to handle a home renovation is to plan it like a project and divide it into sections and sub-plans.
April 6, 2024
You got qualified for the loan and the agent has all the paperwork ready to go.
April 6, 2024
Low-maintenance, small-space pets do exist, but it’s important to know how to provide for them.
April 6, 2024
Cottage houses come in a wide variety of styles based on era and region-specific traditions.
April 6, 2024
When it comes to home flooring, vinyl is a popular choice for bedrooms and kitchens.
April 6, 2024
When you’re looking for a home, it’s essential to find a balance between being respectful and open.
April 6, 2024
There are many reasons why a home seller may decline an offer to purchase, and here are some.
A seasoned full-time real estate professional, Julie has developed her expertise over decades of experience living and working in the area she calls home. She encourages you to contact her to become your trusted real estate partner. Together, let's achieve real estate success!