Inside a Florida Home Loan Contract: Can a Seller Back Out of the Deal?

You have enough to think about as you go through the Florida home mortgage loan process. The last thing you want to worry about - once you find the right property and the right deal - is what happens if your seller actually backs out of the contract.

This doesn’t occur often, but it’s possible a seller may change his or her mind all of a sudden. Typically, once both parties have signed the paperwork, however, there are consequences for such a decision.

Details of a Florida home loan contract

Most conditions in a real estate contract are designed to protect the buyer. For example, you may make an offer conditional upon being approved for a Florida home loan, or pending a home inspection. If your financing falls through, or the inspector finds a termite infestation, these clauses allow you to get out of the deal without penalty.

Sellers may include similar “escape clauses” in the contract occasionally. In situations where a house is part of an estate sale, for example, the contract might state that the deal must be approved by other family members. If you accept this condition when you sign, the seller is able to back out if the condition isn’t met.

When a seller attempts to back out of a contract without such conditions, however, a Florida home buyer may be able to sue for financial damages. The buyer may even be able to get the court to order the seller to fulfill the terms of the contract. (The seller’s real estate agent, too, may be able to sue for his or her commission.)

You should work with your agent and a real estate lawyer before you sign any Florida mortage loan contract; make sure it does not allow the seller to back out for arbitrary reasons. If you do find yourself in this situation after the fact, contact a Florida real estate lawyer immediately to determine your options.