Real estate transactions can be complex. Buyers and sellers enter into legally binding agreements, expecting both sides to fulfill their obligations. But sometimes, one party fails to meet the terms outlined in the contract. When this happens, it can lead to serious consequences—financial, legal, and emotional.
In Florida, if either the buyer or seller fails to uphold their side of the deal, there are specific steps to take. Understanding your rights and legal options is key to protecting your interests and resolving the issue effectively.
Common Reasons for Breach of Real Estate Contracts
A real estate contract in Florida includes terms such as purchase price, closing date, deposit requirements, contingencies, and property disclosures. If either party fails to meet any of these terms, it’s considered a breach.
Typical reasons a buyer might breach a contract include:
- Failing to secure financing
- Refusing to close on time
- Not providing the required earnest money deposit
- Backing out without a valid contractual reason
Sellers may breach a contract by:
- Failing to deliver the property in agreed condition
- Refusing to make required repairs
- Not vacating the home before closing
- Attempting to cancel the sale without cause
Regardless of who breaks the agreement, the non-breaching party has options for how to respond.
What a Buyer Can Do If a Seller Backs Out
If you’re a buyer and the seller fails to meet the contract terms, you may be entitled to legal remedies. These include:
- Specific performance
This is a legal action that asks the court to force the seller to move forward with the sale. Florida courts can grant this remedy if the buyer has fulfilled their obligations and the seller’s breach is unjustified. - Return of escrow and additional damages
In some cases, a buyer may choose to walk away and seek a refund of their deposit. If the breach caused other financial harm—such as the loss of interest rates or housing costs—the buyer might also pursue damages. - Filing a lawsuit for breach of contract
If negotiations fail, filing a lawsuit may be the only option. Legal action can recover damages or enforce the original contract, depending on the situation.
What a Seller Can Do If a Buyer Fails to Perform
When a buyer fails to fulfill their contract obligations, sellers have their own legal options:
- Retain the buyer’s deposit
In Florida, most real estate contracts include a liquidated damages clause. This allows the seller to keep the earnest money deposit if the buyer backs out without a valid reason. - Pursue specific performance
In rare situations, a seller may ask the court to require the buyer to go through with the purchase. This is less common and typically used when the seller suffers significant losses. - Seek damages
If the property had to be taken off the market, or if the seller accepted a lower offer after the breach, they might sue for financial losses.
Steps to Take Immediately After a Breach
If you believe the other party has breached the contract, here’s what to do:
- Review the contract carefully
Check the terms, contingencies, and deadlines. Make sure the breach is clearly identifiable and not the result of a misunderstanding or unmet contingency. - Document everything
Save emails, texts, and any written communications related to the breach. These documents can help your attorney build a strong case if legal action is needed. - Contact a real estate attorney
Florida real estate laws are complex. An experienced attorney can help you understand your rights and determine the best path forward—whether that means negotiation, mediation, or litigation. - Notify the other party
Often, it’s necessary to send a formal notice of breach. This gives the breaching party an opportunity to correct the issue within a set timeframe, depending on the terms of the agreement.
Mediation and Legal Disputes in Florida
Most real estate contracts in Florida include a mediation clause. This means that before filing a lawsuit, both parties must try to resolve the dispute through mediation. Mediation is a less formal process than court and can lead to faster, more cost-effective outcomes.
If mediation fails, the next step may be arbitration or litigation. Your attorney can guide you through the best course of action based on the facts of your case.
Avoiding Breaches Before They Happen
While not all breaches are preventable, there are steps buyers and sellers can take to reduce the risk:
- Use a clear, comprehensive real estate contract
- Work with licensed real estate professionals
- Set realistic closing dates and timelines
- Stay in regular communication with the other party
- Address any concerns or delays as early as possible
Having legal representation from the beginning of a transaction can also help. A real estate lawyer can spot potential issues and make sure your rights are protected from start to finish.
Conclusion
Real estate deals don’t always go as planned. When a buyer or seller fails to meet the terms of a contract, the impact can be significant. But Florida law offers ways to resolve these disputes—whether through negotiation, mediation, or legal action.
If you’re facing a potential breach of contract, don’t wait. Contact a Florida real estate attorney who can review your case and help you take the right steps to protect your interests.