Legal Question in Real Estate Law in Florida
Agreement for Sale
On December 23 & 31 2004 respectively my wife and I signed sales agreements to buy two off-plan condos in Fla. and placed 25% & 20% deposits in escrow although developer is allowed to use deposits in excess of 10%. Building completion dates were not fixed but have repeatedly been put back so now we are looking at Spring 2007 at earliest. The Agreements for Sale state, inter alia: Closing shall be scheduled within two years of the buyers' execution of this agreement, and, Buyer will be given at least 10 days notice of closing. Also:Time of Essence:The performance of all obligations on the precise times stated is of absolute importance and failure so to perform on time is a default, time being of the essence. If Buyers properly terminate this Agreement in the manner allowed in this Agreement or by applicable law, all deposits (and any interest actually earned on them)will be returned to Buyers within 10 days of effective date of Buyers cancellation, less any sums properly retained by seller as specified herein.
In view of the foregoing, please can you say if we appear to have the right to terminate the Sales Agreements. I have made no approaches to the other parties (developers/sellers). Thank you.
2 Answers from Attorneys
Re: Agreement for Sale
yes
Re: Agreement for Sale
NOTE: This communication is not intended as and should not be interpreted as legal advice. Rather, it is intended solely as a general discussion of legal principles. You should not rely on or take action based on this communication without first presenting ALL relevant details to a competent attorney in your jurisdiction and then receiving the attorney's individualized advice for you. By reading the "Response" to your question or comment, you agree that the opinion expressed is not intended to, nor does it, create any attorney-client relationship, nor does it constitute legal advice to any person reviewing such information, nor will it be considered an attorney-client privileged communication. If you do not agree, then stop right here, and do not read any further.
It is very possible that you may be able to terminate the Contract and receive the return of your deposits, however, other factors other than the time enter into the equation. A Contract must be read in its entirety as often other paragraphs may change the paragraph you are referring to. For instance, Contracts will often provide that the closing may be extended due to uncontrollable events and material shortages.
You should also consider whether termination of the Contract is in your best interests. Often times, when a closing has been delayed as this has, the value of the property has risen significantly so that the delay is actually to the Buyer's advantage.
I strongly suggest that you consult with an experienced and qualified real estate attorney to review the Contracts and advise you fully on your options.
Scott R. Jay, Esq.
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