Fort Lauderdale
754-332-2101
Boca Raton
561-832-8288
Contact Our Firm
The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.
I have read and understand the Disclaimer and Privacy Policy.
Can You Back Out of a Florida Home Purchase After Inspection?
Buying a home is one of the biggest financial decisions most people will ever make. In the current competitive Florida real estate market, buyers often need to act quickly to secure the home they want. But what happens when you have found the home of your dreams, your offer has been accepted, and then the inspection report reveals serious problems? Can you walk away with no legal or financial consequences?
The answer to that question depends on what is in your purchase contract. It is important to know how Florida’s inspection contingency works, when and how you can legally bow out of a purchase contract, and what risks you may face for changing your mind after seeing the inspection report. An experienced Fort Lauderdale, FL real estate lawyer can help you make informed decisions that minimize your exposure to legal liability.
What Are Florida Purchase Contract Contingencies?
When specific conditions must be met for the home sale to proceed, these are referred to as contract contingencies. When these conditions are not met, the contract can be terminated by the seller or the buyer. This termination can be done without a penalty in most cases. An appraisal is a contingency that is required in home purchase contracts. Many others, including a home inspection, are optional.
Buyers typically attempt to limit contingencies when possible, as they can weaken offers. Many purchase agreements include a financing or loan contingency that allows the buyer to terminate the contract or request an extension if they are unable to secure a loan by a specified date.
The Importance of an Inspection Period in Florida
An inspection contingency means the buyer will purchase the home, pending inspection results. Buyers should always attempt to include an inspection contingency in a home purchase contract, as purchasing an uninspected home is extremely risky. The inspection period typically lasts 10-15 days from the date of contract acceptance, so having an inspector ready to go is crucial. Inspectors will inspect various areas of the home, focusing on any physical, structural, or pest-related issues.
An inspection contingency allows the buyer to cancel the purchase contract if unsatisfied with the results of the inspection. The buyer can also request repairs or a price reduction from the seller if significant issues are discovered during the home inspection. Importantly, while most buyers will only walk away if there are major issues, the inspection contingency allows a buyer to cancel the contract for any reason, not just major defects, within the inspection window of time.
What Happens if a Buyer Backs Out After the Inspection Contingency Period Has Expired?
If a buyer backs out once the time has run out on the inspection contingency, the earnest money deposit may be forfeited, and the seller may have legal grounds to sue for breach of contract. "As-Is" contracts can still include inspection contingencies. There are specific seller-required notice and response procedures when a buyer exercises an inspection contingency.
Buyers should always use a qualified home inspector and closely monitor the calendar to stay within the allotted contingency time period. The purchase contract should be reviewed by a real estate attorney to ensure there are no loopholes that would prevent the buyer from exercising the inspection contingency. All communications should be comprehensively documented, and all responses must be within deadlines.
Contact a Broward County, FL Real Estate Lawyer
A home inspection can reveal more than just minor damage – it can reveal structural issues that could turn your dream home into a nightmare. Having an inspection contingency in your purchase agreement can also open the door to canceling a deal when something just does not feel right. However, misunderstanding your contract can result in various costs.
An Oakland Park, FL real estate attorney from The Elliot Legal Group, P.A. can help you understand your legal rights, protect your deposit, and make informed decisions before closing day arrives. Attorney Elliot also practices international business law and is a licensed solicitor in England and Wales. Call 754-332-2101 to schedule your free consultation.
