Florida’s “AS IS” Residential Contract For Sale And Purchase (“Contract”) is the most common contract used for residential real estate transactions in Florida. Once the Contract is signed and delivered to a closing agent, the closing agent orders a title search. The title search looks at the history of the property in the public record for title defects. If title defects are found, then the seller needs to cure them.
Section 18(A)(ii) of the Contract provides the seller a cure period to resolve title defects. The cure period starts when the buyer notifies the seller of title defects. The buyer has five days from receiving the title commitment to notify the seller of title defects in writing. After the seller receives the written notice from buyer, the seller has 30 days to cure the title defects.
If the seller cures the title defects within the 30-day cure period, then the seller needs to deliver written notice to the buyer that includes proof that the title defects are cured. Then the parties can close on the closing date, or if the closing date already passed, then they must close within 10 days after the buyer’s receipt of the seller’s notice of the cured title defects.
If the seller is unsuccessful at curing the title defects during the 30-day cure period, then, within five days from the expiration of the 30-day cure period, the buyer has the option to deliver written notice to the seller to (1) extend the 30-day cure period for a specified time, not to exceed 120 days, (2) accept title with existing title defects, or (3) terminate the contract and receive a refund of the escrow deposit. If the buyer does not choose any of the foregoing options and the seller fails to cure the title defects within a reasonable time, then the contract will terminate, and the buyer will be refunded the buyer’s escrow deposit, if any.