Legal Question in Real Estate Law in Florida

I have a typical Florida real estate home sale contract with a buyer. I have reasons to believe that the Buyer did not follow through with his loan application as described in the contract we signed. Along with their offer, the Buyer submitted a pre-approval letter from a financial institution based a large down payment. Two months later, the Buyer claims he did not qualify for the loan, the contract is now expired, and the Buyer wants his deposit money back. Should the Buyer prove to the Seller that his loan application was for the same amount listed in the signed contract ? Is the Buyer obligated to apply at the financial institution that he provided the pre-approval letter from, maybe not initially but at least in the event he wouldn't secure a loan with another lender? Is the Seller entitled to the deposit money if the Buyer did not act in good faith?


Asked on 4/14/13, 2:20 am

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

The contract terms prevail. If Buyer was required to submit an application for a specific loan at a specific instituation, then a notice of denial of that loan should be provied or requested to release the deposit. The Buyer is not likely required to apply at the preapproval institution only but it has to be for the amount and within the time specified in the contract. You need to have your contract reviewed by an attorney.

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Answered on 4/14/13, 6:24 am


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