Real estate transactions can be complex. Even when both sides are motivated to reach an agreement, disputes can still arise. In Florida, disagreements over real estate contracts are more common than many people realize. These disputes can delay closing, lead to litigation, or even cause a deal to fall through.
Most of these conflicts stem from unclear language, missed deadlines, or different interpretations of the contract terms. When emotions run high and large amounts of money are involved, things can escalate quickly. That’s why it’s important for buyers, sellers, and real estate professionals to understand the most frequent sources of contract issues—and how to handle them when they come up.
Misunderstanding or Breach of the Purchase Agreement
The purchase agreement is the central document in a real estate transaction. It lays out the rights and responsibilities of both the buyer and the seller. However, despite its importance, many disputes arise simply because one party misunderstands what the contract requires.
For instance, a buyer may believe they can back out of the contract after the inspection period ends, not realizing the agreement no longer allows for cancellation. Or a seller might think they have the right to keep the buyer’s deposit if the financing falls through, even though the contract specifies otherwise.
When either party fails to do what the contract requires, it’s called a breach. This might involve a missed deadline, refusal to complete repairs, or failure to secure financing in time. The consequences depend on the contract language and whether the breach is considered “material,” meaning it significantly affects the outcome of the deal.
Disputes Over Contingencies and Deadlines
Most real estate contracts include contingency clauses. These provisions make the agreement dependent on certain events, such as the buyer securing a loan or the property passing an inspection. If the conditions aren’t met by a certain deadline, either side may have the right to walk away or renegotiate.
Problems often occur when one party believes a contingency has been met and the other disagrees. A buyer might request to cancel a deal based on a home inspection, while the seller believes the issues are minor and don’t justify terminating the agreement.
Disputes also arise when deadlines are missed. If a buyer fails to apply for financing on time or doesn’t deposit escrow funds by the required date, the seller might argue the contract has been breached. These issues can sometimes be resolved with communication and documentation, but in other cases, they result in legal claims.
Earnest Money Disputes
Earnest money is the deposit a buyer provides to show they’re serious about purchasing a property. This money is held in escrow and applied to the final purchase if the sale goes through. If the deal collapses, the parties often disagree over who gets to keep the deposit.
Florida law has specific rules about how escrow disputes should be handled, but many people don’t understand them. The most common issue is when a buyer backs out, and the seller believes they are entitled to keep the deposit. However, whether the seller gets to keep the money depends on the reason the deal fell apart and what the contract says about deposit forfeiture.
Escrow agents in Florida must notify both parties and hold the funds while the issue is resolved. If the parties can’t reach an agreement, the dispute may go to court or arbitration.
Repair Obligations and Property Condition
Another common source of conflict is the condition of the property. A buyer might conduct an inspection and request that the seller make certain repairs before closing. The seller may agree to some but not all of the requests. Or the seller may do the work, but the buyer believes it wasn’t done properly.
Sometimes the parties disagree on whether a repair is even necessary. For example, the buyer might call a crack in the foundation a safety issue, while the seller insists it’s purely cosmetic.
These kinds of disagreements can usually be avoided by clearly stating in the contract what repairs are expected and how they will be handled. However, if the language is vague, or if communication breaks down, the dispute may require legal resolution.
Financing and Appraisal Issues
Most buyers need financing to complete a home purchase. If the buyer’s loan is denied or delayed, the seller may become frustrated and attempt to cancel the deal or keep the deposit.
Another issue is the appraisal. If the lender’s appraisal comes in lower than the agreed purchase price, the buyer might ask the seller to reduce the price or allow them to walk away. If the seller refuses, the parties may end up in a standoff.
Financing and appraisal problems often lead to tension, especially when one side feels the other didn’t act in good faith. Buyers should communicate early and often about their loan status. Sellers should understand that delays and hiccups are common and be prepared to negotiate when necessary.
Title Problems and Legal Defects
A real estate deal can’t close unless the title is clear. If a title search turns up problems—such as unpaid liens, old mortgages, or ownership disputes—it can delay or derail the transaction.
Buyers may refuse to proceed until the title issues are resolved. Sellers might dispute the findings or blame the title company. In some cases, the problem may involve missing documents or unresolved legal claims that require court action.
Working with an experienced real estate attorney is key when title issues arise. Many disputes can be resolved quickly with the right legal strategy. But if the conflict lingers, it can hold up the deal or cause it to fall apart entirely.
How Legal Support Can Help Prevent or Resolve Contract Disputes
Many contract disputes in Florida real estate can be avoided through careful drafting, clear communication, and proper guidance. Real estate lawyers help buyers and sellers understand the language of the contract and what each clause actually means.
If a dispute does occur, having an attorney involved early can prevent it from escalating. In many cases, legal letters or mediation sessions are enough to resolve the problem. But if the conflict leads to a lawsuit, your lawyer can represent your interests in court.
Even in straightforward transactions, hiring a real estate lawyer offers peace of mind. These deals often involve hundreds of thousands—or even millions—of dollars. A single overlooked clause can lead to major consequences.
Conclusion
Disputes are not uncommon in real estate, especially in a fast-paced and competitive market like Florida. Whether you’re buying your first home or selling an investment property, contract disagreements can complicate and even cancel your transaction.
Understanding the common issues—such as breach of contract, escrow disagreements, repair disputes, and financing problems—can help you prepare. And when those problems arise, seeking legal help early often makes the difference between a resolved issue and a drawn-out battle.
If you’re involved in a real estate contract and need help navigating a dispute, consult with a Florida real estate attorney. You don’t have to handle it alone. Legal guidance can help you move forward with clarity and confidence.