A Florida real estate licensee prepares a purchase agreement that includes a financing contingency. The buyer fails to apply for financing within the specified timeframe. What is the legal consequence under Florida contract law?
Correct Answer
B) The seller can declare the buyer in default and retain the deposit
Correct: B - When a buyer fails to meet a contractual obligation such as applying for financing within the specified timeframe, they are in default. The seller can declare default and may be entitled to retain the deposit as liquidated damages. Why not A: The contract is not automatically void; the seller must take action. Why not C: There is no automatic extension under Florida law. Why not D: The buyer is not required to pay cash; they are simply in breach of contract.
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A buyer submits an offer on a Florida property with a deposit check made payable to the listing broker's trust account. The seller counters with different terms. Under Florida law, what must happen to the deposit?
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