A buyer in Miami fails to close on a residential purchase contract by the agreed closing date due to financing delays. The seller immediately cancels the contract and keeps the earnest money deposit. Under Florida law, what is the most likely outcome?

Correct Answer

D) The buyer can demand return of earnest money if they can prove good faith efforts

Correct: D - The buyer can demand return of earnest money if they can prove good faith efforts. Under Florida law, if a buyer makes good faith efforts to obtain financing and the delay is due to legitimate financing issues, they may be entitled to return of earnest money even if they breach the time deadline. Why not A: This option is incorrect because "The seller must give 30 days written notice before canceling" does not match the rule tested by the question. The correct answer is "The buyer can demand return of earnest money if they can prove good faith efforts". Under Florida law, if a buyer makes good faith efforts to obtain financing and the delay is due to legitimate financing issues, they may be entitled to return of earnest money even if they breach the time deadline. Why not B: This option is incorrect because "The contract is automatically void and earnest money must be returned" does not match the rule tested by the question. The correct answer is "The buyer can demand return of earnest money if they can prove good faith efforts". Under Florida law, if a buyer makes good faith efforts to obtain financing and the delay is due to legitimate financing issues, they may be entitled to return of earnest money even if they breach the time deadline. Why not C: This option is incorrect because "The seller's actions are valid since time was of the essence" does not match the rule tested by the question. The correct answer is "The buyer can demand return of earnest money if they can prove good faith efforts". Under Florida law, if a buyer makes good faith efforts to obtain financing and the delay is due to legitimate financing issues, they may be entitled to return of earnest money even if they breach the time deadline.