Getting Released From A Sales Contract

[velo67]

I wrote a non contingent cash contract to purchase a condo in Florida for $185000. I live in Maryland and the seller lives in Tenn. I put down $5000 earnest money with the contract which was accepted by the seller. The deal was handled by the sellers agent who acted as a duel agent.

I have since decided that I would prefer not to go to settlement for several reasons including issues I have with the condo rules after some thought. I would be willing to give up my deposit and treat it as a good lesson if necessary. The contract indicated that the seller may agree to take the deposit as full settlement of any claims for failure of performance of the buyer or may proceed in equity.

The standard Florida contract for sale approved by the Florida BAR and Realtors Association does not appear to have any contingencies however it does include a Condominium Association Disclosure that is part of the contract that indicated the buyer was provided a copy of Condominnium Articles of Incorporation of the Association and Bylaws and Rules of the Association and Year End Financial Report, more than 3 days prior to the execution of the contract. The disclosure indicated the buyer was given the documents described on 11/29/07 which is accurate. The effective date of the contract is only one day later 11/30/07!

My question is do I have a right to get out of the contract because of the technical issue above. If not do you believe the seller would most likely just accept my $5000 deposit and release me or would he most likely go after me for damages and what is the worst that could happen. The home has only been off the market for 10 days at this point. Thanks

[aaron]

You're speaking of Florida Statutes § 718.503?

(c) Each contract entered into after July 1, 1992, for the resale of a residential unit shall contain in conspicuous type either:

1. A clause which states: THE BUYER HEREBY ACKNOWLEDGES THAT BUYER HAS BEEN PROVIDED A CURRENT COPY OF THE DECLARATION OF CONDOMINIUM, ARTICLES OF INCORPORATION OF THE ASSOCIATION, BYLAWS AND RULES OF THE ASSOCIATION, AND A COPY OF THE MOST RECENT YEAR-END FINANCIAL INFORMATION AND FREQUENTLY ASKED QUESTIONS AND ANSWERS DOCUMENT MORE THAN 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, PRIOR TO EXECUTION OF THIS CONTRACT; or

2. A clause which states: THIS AGREEMENT IS VOIDABLE BY BUYER BY DELIVERING WRITTEN NOTICE OF THE BUYER'S INTENTION TO CANCEL WITHIN 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, AFTER THE DATE OF EXECUTION OF THIS AGREEMENT BY THE BUYER AND RECEIPT BY BUYER OF A CURRENT COPY OF THE DECLARATION OF CONDOMINIUM, ARTICLES OF INCORPORATION, BYLAWS AND RULES OF THE ASSOCIATION, AND A COPY OF THE MOST RECENT YEAR-END FINANCIAL INFORMATION AND FREQUENTLY ASKED QUESTIONS AND ANSWERS DOCUMENT IF SO REQUESTED IN WRITING. ANY PURPORTED WAIVER OF THESE VOIDABILITY RIGHTS SHALL BE OF NO EFFECT. BUYER MAY EXTEND THE TIME FOR CLOSING FOR A PERIOD OF NOT MORE THAN 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, AFTER THE BUYER RECEIVES THE DECLARATION, ARTICLES OF INCORPORATION, BYLAWS AND RULES OF THE ASSOCIATION, AND A COPY OF THE MOST RECENT YEAR-END FINANCIAL INFORMATION AND FREQUENTLY ASKED QUESTIONS AND ANSWERS DOCUMENT IF REQUESTED IN WRITING. BUYER'S RIGHT TO VOID THIS AGREEMENT SHALL TERMINATE AT CLOSING.

A contract that does not conform to the requirements of this paragraph is voidable at the option of the purchaser prior to closing.

Which clause is in your contract?

[velo67]

Thanks for responding. The contract has both clauses but clause number 1 is the one that is checked in the contract and I assume the one that applies. Buyer's Receipt of Documents is dated 11/29 and the date of execution of the contract is 11/30 not the 3 days which seem to be required. Actually I gave verbal permission to show the documents to my brother who lives in the same community in Florida where the agent is. My brother actually reviewed them for me as the contract itself was faxed to me, signed and returned the same day.

[jk]

Thanks for responding. Clause number 1 is the one that is checked in the contract and I assume the one that applies.

Oh, so you signed the contract stating you had recieved the required documents in the prescribed time and now you want to use that clause to escape the contract?

HHmmm, sounds like you are the one that hung yourself since you said you got the docs and now want to claim you didn;t.

as to what the seller will do, ask them or their agent.

[velo67]

I signed a statement indicating I received the documents on 11/29/07. I did not sign anything saying I received them within the prescribed time of 3 days prior to the execution of the contract which it clearly was not as the contract was executed the next day 11/30.

As I said I am more than willing to make payment of the earnest money and treat it as a good lesson. Thanks

[jk]

You stated you signed a contract with the previously provided clause included. That means you DID sign a statement saying you were provided with the requisite documents per the clause within the time prescibed in the clause.

as to what the seller will accept, no way to guess.

If the market it is tough, he may force the sale.

If there are plenty of buyers, he will be glad to be out of the situation ASAP so he can get on with life after the sale.

[velo67]

Thanks for your input. I guess my option would always be to settle and resell the property but I'd much rather get released from the contract even if I have to forfeit the deposit or worse.