A buyer submits an offer on a Florida property with an expiration time of 5:00 PM Friday. At 4:45 PM Friday, the seller's agent calls to say the seller accepts. At 4:55 PM, before receiving the signed acceptance, the buyer calls to revoke the offer. The signed acceptance arrives at 5:10 PM. Is there a binding contract?
Correct Answer
B) No, because the buyer revoked before receiving acceptance
Correct: B - Under Florida law, an offer can be revoked any time before acceptance is communicated to the offeror. The buyer's revocation at 4:55 PM was effective because they hadn't received the acceptance. Why not A: Acceptance must be communicated to be effective, not just signed. Why not C: The timing issue is revocation before receipt, not the deadline. Why not D: Real estate contracts require written acceptance under Florida's Statute of Frauds.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Earnest money is a deposit made by the buyer at the time of the offer or shortly after to demonstrate good faith and serious intent to purchase the property. It is also called a good faith deposit.
Equitable title is the buyer's interest in a property after a purchase contract is signed but before closing, giving the buyer the right to acquire legal title in the future. The seller retains legal title until the deed is delivered at closing.
A financing contingency makes the purchase contract conditional upon the buyer obtaining mortgage approval within a specified time period. If the buyer cannot secure financing, they can cancel the contract and receive their earnest money back.
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Previous Question
In Florida, all of the following would make a real estate contract void or voidable EXCEPT:
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Mark agrees to buy Jennifer's Florida home for $350,000. The contract states that Mark will pay $1,000 earnest money, but he never actually deposits it. Jennifer later tries to cancel the contract claiming failure of consideration. What is the likely outcome?