By: Ralph Longo In many real estate deals, there comes a moment when one side starts to get cold feet. Maybe a buyer discovers something unexpected during inspection, or a seller receives a better offer and wants to back out. But walking away from a contract isn’t as simple as saying you changed your mind. Once a contract is signed, Florida law sets out very specific rules on when either side can terminate without consequences and when doing so can trigger serious liability.
Buyers usually have more flexibility early in the process. Inspection and financing contingencies give them a short window to cancel and recover their deposit if certain conditions aren’t met. But those deadlines matter. Once the inspection period expires, the buyer’s right to cancel typically disappears, even if new issues come up later. Missing a notice deadline or failing to properly send a cancellation can easily turn a legitimate concern into a breach of contract. Sellers, on the other hand, have very limited reasons to cancel. Unless the buyer defaults first, a seller who refuses to close is usually in breach. The buyer may be entitled to force the sale or pursue damages that go beyond the deposit amount.
Sellers who change their mind about price or regret listing the property often find out too late that the contract doesn’t allow them to simply walk away. Deposit disputes are where these issues tend to surface. Many buyers assume their earnest money is automatically refundable if the deal falls apart, but that isn’t always the case. Escrow agents must follow the contract, and they can only release funds when both sides agree or when the dispute is resolved legally. A buyer who cancels for the wrong reason risks losing the deposit, and a seller who refuses to release it without cause risks a claim for damages and attorney’s fees. Every contract has its own language and deadlines, and even small variations can change the outcome.
The standard Florida FAR/BAR contract has strict notice requirements that must be followed exactly, while custom forms often shift risk in one direction. The safest move is to get legal advice before deciding whether to terminate or close. Real estate contracts are binding commitments, and a single wrong assumption can turn a deal problem into a costly dispute. If you’re unsure about your rights or obligations in a real estate contract, it’s worth taking the time to get sound advice before taking action.
Real estate contracts are binding commitments, and a single wrong assumption can turn a deal problem into a costly dispute. If you have any real estate related needs, please don’t hesitate to give VHL Law a call.