Buyers may have a way to cancel a real estate contract in Florida, but it depends on the contract. Examples of reasons a buyer might cancel a real estate contract include mortgage financing contingency, an inspection contingency, other contingencies, title defects that cannot be cured, tenant occupancy, and association documents.
Mortgage financing – Real estate contracts usually provide the buyer the ability to cancel a contract if the buyer is not approved for financing. It is important for the buyer to read the financing section carefully to comply with the terms of the contract to properly cancel the contract.
Inspection contingency – Inspection periods are common in real estate contracts and can offer buyers the ability to cancel the contract. For instance, the most common contract used in Florida, the “AS IS” Residential Contract For Sale And Purchase, has an inspection period that allows the buyer to cancel the contract for any reason during the inspection period.
Other contingencies – Other contingencies are often made part of the contract, for instance, appraisal contingency and sale of a prior home contingency.
Title defects that cannot be cured – If the seller is unable to clear a title defect by the closing date, then the buyer can choose to cancel the transaction.
Tenant occupancy – If the property is tenant occupied, the contract may require that the seller provide the buyer with the lease and other information related to the lease. The contract may then provide the buyer a few days to review the lease materials and cancel the contract if the buyer is unsatisfied with the lease materials.
Association documents – If the property is in a condominium association, cooperative association, or homeowner’s association, then there is a requirement for the seller to provide buyer copies of association documents. The buyer then has a specified number of days (at least three) to review the association documents and cancel the contract if the buyer is not satisfied with the documents.
There might be more ways for a buyer to cancel their real estate contract. If you are a buyer in need of cancelling your contract, then speak with a real estate attorney about your specific contract.