Real Estate Contract Disputes & Enforcement in Florida

When Real Estate Contracts Fail

Real estate agreements are deadline-driven. Inspection periods, financing contingencies, title objection windows, and closing dates are strictly defined. When a party fails to comply—or when a contingency is disputed—the transaction can unravel quickly.

Common scenarios include buyer failure to close, seller refusal to proceed, financing disputes, expired inspection periods, or competing interpretations of default provisions. In most cases, the outcome depends less on broad fairness arguments and more on precise contractual compliance.

Many disputes stem from ambiguity or inattention at the drafting stage. Careful contract drafting and review before execution often prevents later enforcement conflicts.

Financing Contingencies & Loan Approval Disputes

Most Florida purchase agreements include a financing contingency that conditions the buyer’s obligation to close on obtaining loan approval within a defined period.

Disputes frequently arise over:

• Whether the buyer made a good-faith effort to secure financing

• Whether the loan commitment satisfied contractual requirements

• Whether written notice of inability to obtain financing was timely delivered

• Whether silence resulted in automatic waiver of the contingency

Some contracts require strict written notice before the financing deadline. Others treat expiration of the contingency period as acceptance of financing risk. A buyer who fails to comply precisely may forfeit the deposit—even if financing ultimately falls through.

Resolution often depends on a detailed review of the contract timeline and documentary evidence.

Due Diligence Period & Property Repairs

Inspection provisions are another common source of conflict. Many agreements provide a limited window for the buyer to inspect the property and either cancel, request repairs, or proceed.

Disputes arise where:

• The inspection period expires without proper written notice

• Repair negotiations fail after the inspection window closes

• A party attempts cancellation outside the permitted timeframe

• “As-Is” language is misunderstood

Inspection clauses must be read in conjunction with notice requirements and any repair addenda. The language governing termination rights and deadlines is often decisive.

“Time Is of the Essence” & Closing Deadlines

Many real estate contracts include “time is of the essence” language. This phrase has legal significance. It means that strict compliance with contractual deadlines—including the closing date—may be required.

If a party is not ready to close on the scheduled date and proper extensions have not been agreed upon, the failure may constitute default. In other situations, conduct between the parties may modify strict enforcement.

The practical effect depends on the contract language and the parties’ communications leading up to closing.

Buyer Default & Seller Remedies

If a buyer fails to close, the seller’s remedies are determined by the contract. Many Florida agreements contain liquidated damages provisions permitting retention of the earnest money deposit. Others preserve broader rights, including actual damages or specific performance.

Whether a seller may retain the deposit depends on:

• Expiration of contingencies

• Proper notice of default

• Compliance with contractual cure periods

• Limitations of remedies contained in the agreement

In some contracts, the seller must elect between retaining the deposit or pursuing specific performance. That election can permanently limit available remedies. Careful legal analysis is essential before asserting default.

Seller Default & Buyer Remedies

When a seller attempts to terminate improperly or refuses to close, the buyer may pursue return of the deposit, reimbursement of expenses, or specific performance to compel transfer of the property.

Because Florida law recognizes real property as unique, specific performance claims are common in failed transactions. However, enforcement requires proof of valid contract formation, readiness and ability to perform, and compliance with contractual conditions.

In some disputes, corrective conveyance documents—such as corrective deeds or title clarification instruments—may also become necessary to resolve title issues.

Earnest Money & Escrow Disputes

Escrow disputes frequently arise when a transaction fails to close. Escrow agents hold deposits pursuant to written instructions and generally require mutual release before disbursing funds.

When parties disagree, resolution turns on strict interpretation of contingency clauses, timing of notices, and documentary evidence. In some cases, escrow agents file interpleader actions or require judicial direction before releasing funds.

Early evaluation often prevents prolonged escrow stalemates and unnecessary litigation.

Notice Requirements Under Florida Real Estate Contracts

Florida real estate contracts typically require written notice delivered in a specified manner within defined time frames. Failure to comply with notice provisions—even by a short period—can materially affect remedies.

Disputes frequently arise where:

• Notices were delivered late

• Delivery methods did not comply with contract terms

• Cure periods were misunderstood

• Deadlines were calculated incorrectly

Contract enforcement is often procedural. Careful review of the agreement and timeline is essential.

Pre-Suit Strategy & Structured Resolution

Not every contract dispute requires immediate litigation. In many cases, structured pre-suit communication, formal demand letters, and clear articulation of default posture resolve the matter efficiently.

In appropriate cases, mediation provides a controlled environment for negotiated resolution while preserving financial and business interests.

When court action becomes necessary, preparation at the pre-suit stage shapes procedural advantage and strengthens enforcement posture.

Protect Your Contractual Position

Real estate contracts define remedies, deadlines, and enforcement mechanisms. If a transaction has failed or a default has been declared, prompt legal evaluation clarifies leverage and preserves your rights.

Schedule a consultation to review your agreement and dispute posture.