A prospective Florida buyer gives the seller a personal check described as earnest money. The check is dishonored through no fault of the seller. In an action by another person seeking a share of a forfeited deposit or down payment, how does Florida Statutes § 715.02 treat that dishonored check?
Correct Answer
D) It is not construed as a deposit for that forfeited-deposit action, despite a receipt recital in a written agreement
Option D is correct. Florida Statutes § 715.02 provides that, in the specified action, a check, draft, or other obligation that is refused through no fault of the seller is not construed as a deposit, notwithstanding a written agreement's recital that a deposit was received. The statute does not itself declare every sales contract void.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The Statute of Frauds is a legal requirement that certain types of contracts must be in writing and signed to be enforceable. In real estate, all contracts for the sale of land or interests in land must be in writing.
A time is of the essence clause in a contract means that all deadlines and dates specified in the agreement are strictly enforceable, and failure to meet them constitutes a material breach.
An appraisal contingency allows the buyer to cancel or renegotiate the contract if the property's appraised value comes in lower than the agreed-upon purchase price. This contingency protects buyers from overpaying.
More Real Estate Contracts Questions
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A buyer and seller in Florida agree to extend the closing date by 10 days. The original contract had a 'time is of the essence' clause. What must they do to make this extension valid?
- → 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?
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