A Florida seller discovers the buyer has been negotiating to purchase another property while under contract. The seller wants to terminate and keep the earnest money. Can the seller do this under Florida law?
Correct Answer
B) No, unless the contract specifically prohibits negotiating other purchases
Unless the contract specifically prohibits the buyer from negotiating other purchases, merely looking at other properties doesn't constitute breach. Most residential contracts don't include exclusivity clauses. Option A is incorrect because negotiating other purchases doesn't necessarily violate good faith. Option C is wrong because purchasing another property might breach due to inability to perform, but mere negotiations don't. Option D overstates buyer freedom but is closer to correct than the others.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
An assignment of contract transfers one party's rights and obligations under a contract to a third party called the assignee. The original party, known as the assignor, transfers their contractual position to someone who was not originally part of the agreement.
A bilateral contract is an agreement in which both parties exchange promises and are both obligated to perform, while a unilateral contract is one in which only one party makes a promise and the other party is not obligated to act.
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- → A buyer signs a Florida purchase contract for a condo and learns during the inspection period about a special assessment of $10,000. The seller knew but didn't disclose this. What are the buyer's rights?
- → 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?
- → In Florida real estate contracts, what legal principle requires that both parties exchange something of value?
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