Much of Florida is currently in what is known as a sellers market, which means there are more buyers than there are properties available for sale. This puts those who are looking to sell in a very good position. They can ask for a higher price, faster closing time, larger down payment and are in a generally better negotiation position.
What happens when a seller signs the contract and then finds out later someone will pay more for the property? Can they cancel the contract and sell to the new person?
The traditional lawyer answer is “it depends”, every contract is different so it is very important to read it thoroughly before signing. Professional representation by an experienced Realtor and attorney is highly recommended.
Most contracts including the two Florida Realtors/Florida Bar contracts(FR/Bar), the standard Residential Contract for Sale and Purchase and the “AS IS” version, leave very little room for the seller to cancel or terminate the contract. If the only reason a seller has to break the contract is a better offer came along, it is very unlikely they will be successful.
If a seller refuses to sell the property they can be subject to what is known as specific performance of the contract, that means the court will force the seller to perform their contractual obligations. They are going to have to close at the agreed upon price. They may also be subject to money damages for the delayed closing and cost of litigation.
One option the seller may have is to try and terminate the contract. They can offer to refund the buyer their deposit, expenses and an agreed upon amount to terminate the contract and walk away. Unless a seller has a buyer willing to pay a substantial amount more this option may not be cost effective.
It is extremely important for a seller to obtain the best professional advice possible prior to signing the sales contract because once it is signed they are committed.
Nepola Yonta Attorneys at Law is a full service law firm specializing in real estate, probate, estate planning and social media influencer law. They have offices in Hollywood and Stuart, Florida but serve the entire state of Florida.
Contact Info: Nepola Yonta Attorneys at Law
Contact Person: Justin Nepola
Address: 4000 Hollywood Blvd Suite 765 south, Hollywood Fl 33021
Phone: (954) 399-0398
Email: JNepola@NepolaYonta.comcreate new email
The information provided in this post does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this post are for general informational purposes only. Readers of this post should contact their attorney to obtain advice with respect to any particular legal matter.
