Question 1

What constitutes a material breach of a real estate contract in Florida?

Accepted Answer

Real estate material breaches: failure to close: if the buyer or seller fails to appear at closing or refuses to complete the transaction without a valid contractual reason, this is typically a material breach. The standard FAR/BAR contract provides: the non-defaulting party must give written notice of default and a cure period before exercising remedies. Failure to deliver title: if the seller cannot provide marketable or insurable title (as required by the contract), this is a material breach. The buyer may terminate and recover the deposit. Misrepresentation: if the seller or buyer makes a false statement about a material fact (property condition, zoning, boundaries), this may constitute both a material breach and fraud. Failure to maintain the property: if the seller allows the property to deteriorate between contract and closing, this may be a material breach (the buyer expected to receive the property in the condition shown during inspections).

Question 2

What remedies are available for material breach of a Florida real estate contract?

Accepted Answer

Remedies: termination and deposit recovery (the non-breaching party terminates the contract and recovers the earnest money deposit), liquidated damages (if the contract contains a liquidated damages provision, the seller retains the buyer’s deposit as the exclusive remedy), specific performance (a court order requiring the breaching party to complete the transaction; available because each parcel of real property is considered unique), actual damages (monetary damages compensating for the losses caused by the breach: difference in value, carrying costs, lost opportunities, attorney fees), and rescission (the contract is undone, and the parties are returned to their pre-contract positions). The non-breaching party must elect their remedy: they generally cannot pursue both specific performance and damages for the same breach.

Question 3

What is the notice and cure requirement for material breach in Florida real estate?

Accepted Answer

Notice and cure: most Florida real estate contracts (including the FAR/BAR standard forms) require: written notice of default (the non-breaching party must give the breaching party written notice identifying the specific breach), a cure period (the breaching party has a specified number of days, typically 10-15, to cure the breach), and if the breach is not cured within the cure period, the non-breaching party can exercise their remedies. The notice and cure requirement is important because: it gives the breaching party an opportunity to fix the problem (avoiding the cost and disruption of termination), it creates a clear record of the default (important for litigation), and failure to provide notice may waive the non-breaching party’s right to terminate.

Material Breach of Contract

Material Breach of Real Estate Contracts in Florida

Common Breaches

Remedies

Notice and Cure

Related Terms

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