Breach of Real Estate Purchase Agreements (Florida)
1. Definition
A breach of a real estate purchase agreement occurs when either the buyer or seller fails to comply with material terms of a valid and binding contract for the sale of property. This can include failure to close, refusal to deliver clear title, failure to deposit escrow funds, or backing out of the transaction after contingencies have been satisfied.
Real estate contracts are time-sensitive and legally significant—any breach can trigger financial, legal, and operational consequences for both parties.
2. Florida Legal Context
Under Fla. Stat. $725.01 (Statute of Frauds), real estate purchase agreements in Florida must be in writing and signed by the parties to be enforceable.
Legal remedies for breach include:
- Specific performance – to force the breaching party to close the sale
- Monetary damages – to compensate for loss of bargain, escrow funds, or reliance damages
- Rescission – to unwind the contract and restore both parties to pre-contract positions
- Declaratory judgment – to clarify contractual rights or resolve disputes over ambiguous language
Courts often enforce “time is of the essence” clauses strictly, especially in commercial or investor transactions.
3. Real-World Application
Examples of breach scenarios:
- A buyer walks away from closing after waiving inspection and financing contingencies
- A seller refuses to transfer marketable title or deliver required disclosures
- A dispute arises over whether a title defect was “curable” before closing
- A backup buyer is given priority in bad faith while the original buyer is under contract
- An escrow deposit is wrongfully withheld following cancellation
Real estate agents, attorneys, and title companies are frequently involved in both dispute resolution and litigation support.
4. Why It Matters for Clients
Real estate transactions often involve hundreds of thousands or millions of dollars. When a contract falls apart:
- Buyers may lose earnest deposits, opportunity costs, and financing
- Sellers may face tax consequences or double commission claims
- Delays can trigger third-party litigation or government penalties
- Commercial transactions can result in breach of other downstream contracts
Swift legal action may preserve your deal—or recover substantial damages.
5. How Our Law Firm Can Help
Black Rock Trial Lawyers represents:
- Buyers seeking to enforce closings through specific performance
- Sellers defending breach allegations or recovering escrow funds
- Title companies, brokers, and investors involved in transaction disputes
- Parties involved in lis pendens or clouded title situations
- Real estate professionals needing urgent pre-litigation counsel
We resolve disputes quickly—through negotiation, injunctions, or trial.
6. FAQs (Frequently Asked Questions)
Q: Can a buyer force a seller to close on the property?
A: Yes, if the contract is valid and the buyer has fulfilled their obligations. Specific performance is favored in Florida real estate cases.
Q: What happens to the escrow deposit if the deal falls through?
A: If both sides don’t agree, the escrow agent may deposit the funds into court and let the parties litigate who’s entitled.
Q: Is “time is of the essence” enforceable in Florida real estate contracts?
A: Yes. If included, it allows a party to terminate the contract or claim breach based on missed deadlines.
Q: Can a seller accept a better offer after signing a contract?
A: No. Once under contract, the seller is bound unless there’s a valid reason for termination.
Q: What if the buyer fails to close but doesn’t give a reason?
A: You may be entitled to retain the deposit and sue for damages or specific performance.