Real Estate Contract Disputes

What do real estate contracts encompass?

Real estate contracts play a crucial role in property transactions, setting the terms and conditions for a property’s sale, purchase, or lease. Due to their complex nature, such contracts often involve purchase agreements, lease agreements, and other legally binding documents. For instance, a purchase agreement outlines the property’s description, purchase price, contingencies, and closing date, among further vital details.

Disagreements over the terms of these contracts tend to arise if parties fail to meet their obligations or if there are misunderstandings about the contract terms. One of the most common examples is a dispute over a commercial lease agreement, where a landlord and tenant disagree about rent payments, property maintenance, or lease termination.

Need help with creating, structuring, or enforcing real estate agreements? Schedule your consultation today with a top real estate litigation attorney.

Which Florida laws, rules, and regulations apply to real estate contracts?

Florida’s laws, rules, and regulations governing real estate contracts are extensive, encompassing various statutes and judicial decisions. For example, the Florida Statutes Chapter 672 (Uniform Commercial Code – Sales) applies to contracts for the sale of goods, while Chapter 83 (Landlord and Tenant) covers residential and commercial leases. In addition, chapter 475 (Real Estate Brokers, Sales Associates, Schools, and Appraisers) also regulates real estate professionals’ conduct.

In addition to these statutes, contract law principles derived from Florida case law apply to real estate contracts. For example, disputes over contract interpretation may require following the decisions in cases like Sepe v. City of Safety Harbor, 761 So. 2d 1182 (Fla. 2d DCA 2000), which emphasizes the importance of adhering to the contract’s plain language. Furthermore, specific performance, a remedy for breach of real estate contracts, is addressed in cases like Lennar Homes, Inc. v. Gabb Constr. Co., 654 So. 2d 649 (Fla. 3d DCA 1995).

What are common issues associated with real estate contracts that lead to litigation?

The following issues tend to escalate real estate disputes to litigation:

• Misrepresentation or nondisclosure: Parties may dispute whether specific material facts, such as the property’s condition or encumbrances, were disclosed or misrepresented during the transaction.
• Breach of contract: A party’s failure to fulfill their contractual obligations, such as not closing on time or failing to perform agreed-upon repairs, can lead to litigation.
• Contingency disputes: Disagreements may arise when contingencies, such as financing or inspection, are not met or waived, leading to disputes over contract termination.
• Title issues: Title defects, such as liens or easements, can cause disputes when they affect the property’s marketability.
• Boundary disputes: Conflicting surveys or encroachments may lead to disagreements over the property’s boundaries.

When a set of facts is appropriate for legal advocacy or intervention, there are many paths a claimant may take. We are value-based attorneys at Jimerson Birr, which means we look at each action with our clients from the point of view of costs and benefits while reducing liability. Then, based on our client’s objectives, we chart a path to seek appropriate remedies.

To determine whether your unique situation may necessitate litigation or another form of specialized advocacy, please contact our office to set up your initial consultation.

What are strategic measures to resolve issues and avoid litigation over real estate contracts?

• Clear and concise contract drafting: Ensure that real estate contracts are thorough, unambiguous, and clearly outline each party’s obligations and expectations to minimize misunderstandings.
• Due diligence: Conduct thorough property investigations, including title searches, surveys, and inspections, to uncover potential issues before entering into a contract.
• Legal representation: Retain experienced real estate attorneys to review and negotiate contracts and advise on compliance with relevant laws and regulations. See Florida Statutes §475.25(1)(k).
• Contingency clauses: Include appropriate contingency clauses in contracts to allow for the termination or renegotiation of terms if specific conditions are not met or satisfied.
• Alternative dispute resolution: Utilize mediation or arbitration to resolve disputes amicably and efficiently as an alternative to litigation.

Please contact our office to set up your initial consultation to see what forms of legal advocacy or intervention may be available for your unique situation.

Frequently Asked Questions

1. Can a buyer sue a seller for breach of contract if the seller fails to disclose defects in the property?

Under Florida law, sellers must disclose material defects that affect the property’s value. If a seller knowingly conceals or fails to disclose these defects, the buyer may sue for damages.

2. How can a party terminate a real estate contract due to an unmet contingency?

To terminate a contract based on a contingency not being met, the party must provide written notice to the other party, specifying the unmet contingency and the intention to terminate the contract. Contingency clauses should establish the required notice and procedures.

3. Are oral real estate contracts enforceable in Florida?

Generally, oral real estate contracts are unenforceable in Florida due to the Statute of Frauds, which requires contracts for selling real property to be in writing and signed by the parties. See Florida Statutes §725.01.

4. What happens if the buyer discovers a title defect after closing?

Depending on the contract terms and the title insurance policy, the buyer may have legal recourse against the seller or the title insurance company. Therefore, buyers should conduct thorough title searches and obtain title insurance to protect their interests.

5. Can parties resolve real estate disputes through alternative dispute resolution (ADR) methods instead of litigation?

Yes, parties can resolve real estate disputes through ADR methods such as mediation or arbitration. ADR can be more cost-effective and faster than litigation. Including an ADR clause in the real estate contract can streamline the dispute resolution process.

Have more questions about real estate transactions and disputes?

Crucially, this overview of real estate contracts does not begin to cover all the laws implicated by this issue or the factors that may compel the application of such laws. Every case is unique, and the laws can produce different outcomes depending on the individual circumstances.

Jimerson Birr attorneys guide our clients to help make informed decisions while ensuring their rights are respected and protected. Our lawyers are highly trained and experienced in the nuances of the law, so they can accurately interpret statutes and case law and holistically prepare individuals or companies for their legal endeavors. Through this intense personal investment and advocacy, our lawyers will help resolve the issue’s complicated legal problems efficiently and effectively.

Having a Jimerson Birr attorney on your side means securing a team of seasoned, multi-dimensional, cross-functional legal professionals. Whether it is a transaction, an operational issue, a regulatory challenge, or a contested legal predicament that may require court intervention, we remain tireless advocates at every step. Being a value-added law firm means putting the client at the forefront of everything we do. We use our experience to help our clients navigate even the most complex problems and come out the other side triumphant.

If you want to understand your case, the merits of your claim or defense, potential monetary awards, or the amount of exposure you face, you should speak with a qualified Jimerson Birr lawyer. Our experienced team of attorneys is here to help. Call Jimerson Birr at (904) 389-0050 or use the contact form to schedule a consultation.