Cancelling a Contract

A buyer who has an AS IS Residential Contract for Sale and Purchase has a very strong right of cancellation during the inspection period. Paragraph 12 of that contract states that the option to terminate resides in the buyer’s “sole discretion” and the buyer’s deposit is to be returned to him/her.

Members of the military have special ability to terminate a contract if they get permanent change of station orders requiring them to move 35 miles or more from the property location. The service member must provide a notice to the seller or the mortgagor along with either a copy of the official military orders or a written verification signed by his/her commanding officer. (Section 689.27(2)(a), Florida Statutes)

After a seller has accepted a buyer's offer on a property, the buyer does not automatically have a three-day right to cancel, unless the contract includes that as a specific provision. None of the Florida Realtors contract forms provides for this right.

A contract may have different contingencies that allow for either party to cancel. As with any contractual interpretation question, the language of the contract is paramount in determining the rights of the parties, so our advice is to always suggest to the parties that they seek legal advice from a licensed professional if they wish to gather further information about contract rights.