Breach Of Contract In South Florida Real Estate
Florida contract law provides remedies to parties who can prove that they’ve been harmed by the other party’s breach of contract. Here we’re going to explore the specifics of one remedy: suing for damages arising out of a breach of a real estate sale. This article will also provide real-world examples in order to better illustrate how the legal system can resolve these types of disputes.
Breach Of A Real Estate Sale Contract Law
According to Florida contract law, if an individual breaches the terms of a real estate sale then she is liable for two types of damages:
- (1) money that you spent as part of your reliance on the agreement, and
- (2) any profits you would’ve made (if the sale had gone according to plan).
Let’s take a look at an example in order to break this down further.
A Real Estate Sale In The Case Of A Buyer’s Breach
In the case of a buyer’s breach, damages would be paid out as follows:
The seller could receive compensation for any money that they spent in reliance on the sale. For instance, if a buyer signs a contract agreeing to purchase certain property and then reneges on the deal, the seller may be entitled to recover money spent on improvements to said property.
The seller could also be entitled to what’s called “consequential damages,” which refers to any lost profits from the sale. In our example above, if a buyer breaches a real estate contract then a seller could be entitled to the amount that they would’ve made from the sale. This money is essentially what they lost as a result of not completing the deal.
A Real Estate Sale In The Case Of A Seller’s Breach
In practice, there are two possible scenarios where a breach of sale would apply in regards to a seller’s actions.
- (1) the seller failed to deliver the title papers for the property, or
- (2) the seller did not have a clear title, to begin with.
In either case, parties to a real estate sale contract may be able to recover “consequential damages” incurred by the other party. For example, if a buyer agrees to purchase property but the seller fails to provide a clear title, then the buyer could be entitled to recover money spent trying to obtain the correct documentation.
A Real Estate Sale In The Case Of Mutual Agreement To Cancel
Of course, in some cases, both parties agree that terminating a real estate sale contract is in their best interests. If this occurs, a court may still demand that a party make a payment to the other on the basis of “reliance damages.” This is not a set rule, however, and judges will consider all surrounding circumstances when settling disagreements.
Conclusion For Breach Of Sale In Florida
In sum, a breach of the sale in Florida can occur as a result of either party’s actions. In the case of a buyer’s breach, damages are paid out to compensate for specific expenses and any lost profits. When a seller breaches a real estate sale contract, consequential damages may occur as well.
As you can see from this article, a breach of the sale in Florida may lead to a long list of consequences depending on the situation. For more information on this topic, or for help with a Breach of Sale, contact Joseph Hughes.
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