Legal Question in Real Estate Law in Florida

I am selling my property. Using standard residential contract for sale and purchase. The transaction is fairly straight forward, the only contingencies are an appraisal contingency and the right to inspect. The financing portion of the contract is also straight forward. Contingent on buyer obtaining a conventional loan within 45 days and applying for financing within 5 days. The purchase price and closing portion state exact amounts in dollars to include, the �purchase price�, the �initial deposit�, �financing, aka, loan amount� and the �balance to close�.

Unfortunately, the appraisal is coming in low so it looks like the deal may fall through. However, it has been revealed that the buyer did not actually apply for a loan in the amount stated on the contract. The contract called for an amount equal to an 80/20 loan He applied for a much larger loan with only 10% down 90/10. No addendums were presented or signed. He has contested the appraisal, however, it appears the deal will fall apart. The property has been off the market for over a month. Will I have any rights to keep any or all of the earnest money deposit? I intend to consult a local real estate attorney but would like some idea of what to expect.


Asked on 2/15/16, 2:39 pm

1 Answer from Attorneys
Barry Stein De Cardenas, Freixas, Stein & Zachary

There is no such thing as a standard residential contract unless you are using the Florida Bar form. If not, you need the document reviewed to determine your rights. If the appraisal gives the buyer the right to terminate, you don't get to use another provision to hook them back in. Hire an attorney to handle these matters.

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Answered on 2/15/16, 2:46 pm


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